SearchGold Resources

Dear Shareholders and Potential Shareholders,

I would like to thank you for your interest and support in SearchGold Resources (TSXV:RSG; FSE:S1O) and I would like to comment on the current market sentiment. I'd like to address common concerns in two steps.

First, a little history; I joined SearchGold en 2005 as VP Exploration. I was offered to manage the company as President and CEO in March 2006. The company having been in existence for about 12 years, my objective has been to advance the ongoing work and go beyond what had been achieved by SearchGold's past presidents.

During this period we have worked relentlessly to optimally position the company. In ten points, here is what we have done in chronological order over the past three years:

1. Finalization of strategic partnerships with recognized partners on our advanced projects

• Managem / Bakoudou in Gabon (gold)
• Mano River Resources / Mandala-Ouria in Guinea (diamonds)

These projects had reached a sufficiently advanced stage; they involved a burn rate which was unsustainable for SearchGold at the time and required technical and financial abilities not available within the Company in 2005. It was logical to execute these transactions to grow the projects while retaining an interest.

2. Acquisition of new strategic gold properties

• Mandiana, Guinea
• Booué-Mimongo, Gabon
• Blondeau-Guillet, Canada

3. Increase in visibility and widening of shareholder base

• Listing on FSE with increased visibility on the European market; road shows in Germany and Switzerland (Frankfurt, Stuttgart, Zurich, and Munich) as well as London, England.

• Increased visibility in English Canada through numerous road shows out west and in Toronto as well as presence at major shows (Cambridge House, PDAC).

4. Strengthening of the Board of Directors with two highly respected gentlemen with specific African Expertise

• Pierre Goossens (Director, well know expert, discovery of two gold deposits (Maruda in India and Morila in Mali), of one the largest barite deposit in Burma and of silver and copper deposits in Ecuador).

• Roy Corrans (Special advisor to the Board of Directors, ex VP Exploration Anglo American, discovery of the Epoch nickel deposit in Zimbabwe and of the Skorpion zinc deposit in Namibia).

5. Significant drill discoveries

• A drill intersection of 12.23 g/t Au over 22 m on Mandiana in Guinea.

• A spectacular mineralized intercept of 16.39 g/t Au over 49.50 m on Zone A's southern extension on Bakoudou in Gabon.

6. Strengthening of the management team with the nomination of two young dynamic partners

• Isabelle Gauthier as CFO (C.A. ; B.A. in Administration from Université du Québec in Montréal (UQAM) and member of Ordre des comptables agréés du Québec).

• Moussa Keita as VP Exploration (P. Geo, Ph.D. Geology ; PhD in mineral resources from Université du Québec à Chicoutimi (UQAC) and member of the Ordre des Géologues du Québec).

7. Segmentation of SearchGold's activities to increase shareholder value by refocusing on specific sectors

• Reorganization of diamond assets along with Mano River Resources to create an integrated diamond company. As a result of the transaction SearchGold holds 2.7 million shares of the new company called Stellar Diamonds Limited.

• Reorganization of Canadian gold assets through the creation of Golden Share Mining Corporation. Golden Share will focus on exploration principally for gold in Canada. As a result of the transaction SearchGold holds 2.1 million shares of Golden Share.

8. Payment of a dividend to our shareholders

• The Golden Share transaction was specifically designed to reward our shareholders by allowing them to benefit from their involvement in a new mining venture, thereby allowing them to maximize the Canadian properties and benefit from the added leverage.

9. Finalisation of feasibility study and announcement of mining reserves on our most advanced project

• You will not find many junior companies of SearchGold's size that announce mining reserves. Most will announce historical resources, geological resources, measured indicated or inferred resources but very seldom reserves.

10. Start-up of diamond production through our interest in Stellar Diamonds

• On the Kono project in Sierra Leone, 1 049 carats (12 132 diamonds) were recovered in May 2008 on the test mining operation resulting in the first commercial diamond tender and project revenues.

We feel the need for gold will not diminish and remain confident the price of gold will increase over the long term, as typically, during volatile and uncertain times, people turn to gold and silver rather than cash. John Embry, Chief Investment Strategist at Sprott Asset Management continues to feel bullish over precious metals while bearish on base metals. Taken as an excerpt from his October 27th, 2008 interview with the AUreport.com, "Embry has a solidly bullish view of the precious metals. On the other hand, his short-term stance on the base metals is bearish. He clearly regards the precious metals as being in an altogether different category and explains why in the edited segment of the interview below.

John Embry: At this stage of the game, gold and silver are monetary metals. All the rest of the commodities are industrially driven. I'm not a long-term bear in base metals. I'm a short-term bear based on the fact that I think we're in considerable demand destruction at the same time that there were some significant positions held by leveraged hedge funds in London and the U.S. that are being unwound. As you know, the hedge fund business, particularly the leveraged ones, are just getting slaughtered."
(To continue reading the article please see: http://www.theaureport.com/pub/na/1797.)


So concludes the first part of the RSG commentary; we remain determined to pursue the development of the company knowing that we have developed a valuable approach that will bear fruits in the long run.

What concerns us all is what we are going to do to improve the situation. This constitutes the second part of my answer.

We will obviously keep pushing ahead despite the current gloom and particularly at the level of junior companies which are all affected by liquidation from the market. Our development strategy constitutes a logical follow-up for SearchGold which is now a company entirely devoted to the development of gold projects ion Africa.

The future development of the Company will therefore be executed through:

1 -- Realization of our assets

The realization of the Company's assets will generate cash in due course and improve its solidity while allowing the continuity of its development. These assets are:

• Interest in Bakoudou gold deposit
• 2.1 million shares of Golden Share
• 2.7 million shares of Stellar Diamonds

These assets are in the construction phase and have all been the object of recent important developments which have all been announced by way of press release.

2 -- Development of a dynamic exploration property portfolio

It is necessary to increase SearchGold's position in West Africa in order to reach a critical mass. To that end SearchGold is developing a third exploration pole in Burkina Faso which now reinforces a well established presence in Gabon and Guinea.

We reached a significant milestone of this aspect of our development with the acquisition of the flagship Araé-Gassel property. With previous drill intercepts including 5.20 g/t Au over 38 m from 26 to 64 m and 1.49 g/t Au over 130 m from 0 to 130 m and a position on strike with Wega Mining's 1.4 million ounce gold project due to start producing by the end of 2008, this will become a real driver for shareholder value. SearchGold has also acquired additional three grass roots permits; we now control a total surface area of over 1,000 km² in Burkina Faso.

West Africa, and specifically Burkina Faso, is recognized for its gold potential. High River Gold Mines Ltd., for example, commenced production from the Taparko gold deposit in July 2007 (proven and probable reserves of 1.4 Moz Au: 15.4 Mt @ 2.90 g/t Au). Three more recently outlined gold deposits are Etruscan Resources Inc.'s Youga deposit; Semafo Inc.'s Mana deposit and Wega Mining Inc.'s Inata deposit. Furthermore, other historically renowned regions such as the Poura mine (previously government operated before closing in 1999), produced over 800,000 ounces of gold, confirming the country's potential

3 -- General considerations

Human resources are always a main driver in the development of companies and junior minors are no exception. We are convinced that with the quality of the mining exploration team we have been able to assemble the only way forward is up. We have an exceptionally talented technical management team with strong African expertise:

Roy Corrans, B.Sc. Geology, Ex Anglo-American VP Exploration
• Epoch nickel deposit (Zimbabwe)
• Skorpion oxide zinc deposit (Namibia)

Pierre Goossens, Ph.D. Geology
• Morila gold deposit / Rangold (Mali)

Florent Baril, B.Sc. Metallurgical Engineering
• Numerous audits and feasibility studies on African projects

Moussa Keita, Ph.D. Geology
• Tongon gold deposit / Rangold (Cote d'Ivoire)

Philippe Giaro, B.Sc. Geology
• Numerous engineering and geology assignments in Africa

Additionally, gold deposits are increasingly hard to find. Being active in West and Central Africa today is like being in the Val d'Or and Kirkland lake gold camps of Canada in the 1920's. A recent proof is that four new deposits are being developed in Burkina Faso in the past 18 months. Moreover, gold's importance as a safe heaven can only grow in the light of the recent financial turmoil we have experienced.

We therefore firmly believe that having a stake in an up and coming gold deposit in Gabon and developing a new project in Burkina Faso where we should be able to put resources together adjacent to a producing mine can only be positive. Moreover, management will continue to leverage its long and well established presence in that part of Africa to review projects and consider strategic alliances.

Be assured that SearchGold will continue to grow and that all possible options will be considered to increase the speed of our development.

Best Regards,

Philippe Giaro
President and CEO
SearchGold Resources Inc.
Tel/Fax : 32-10-45-53-59
Cell : 32-473-52-30-29
E-mail: phgiaro@skynet.be
Web Site: http://www.searchgold.ca