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May 2009
To The Shareholders of Romarco:
I am writing to you with an update of our activities and to inform you of events and news on the horizon.
What an exciting and successful 2008 we had!! If you liked what we accomplished during last year, you will be very excited about our activities for 2009. Your team has been very busy – in the past 15 months since closing the acquisition of the Haile Gold Mine - the Company has doubled the historic reserve of 750,000 ounces to 1.5 million ounces of gold averaging 2.7 grams per tonne (g/t), increased overall resources 300% to more than 3.25 million ounces of gold, secured additional land along strike (for exploration and facility space), and completed a Feasibility Study. The mineable reserve estimate (1.5 million ounces of gold @ 2.7 g/t) was used as the basis for the Feasibility Study completed early in 2009 (see press release for details).
On March 3, 2009, the company closed a C$25 million bought deal financing led by Macquaries Capital Markets and soon after our market capitalization increased from approximately C$20 million pre-financing to C$150 million in April 2009. The market is beginning to realize that we have a very significant project with tremendous upside potential.
Exploration Activities 2008 – 2009
During 2008, the Company drilled with two core rigs contracted from Board Longyear and drilled approximately 10,590 meters (33,900 feet) of core drilling in 53 holes. Of those 53 holes:
87% returned more than 3 g/t gold over the mineralized interval
94% returned more than 1 g/t gold over the mineralized interval
60% returned more than 30 meters of 2.5 g/t gold
25% returned more than 30 meters of 4.0 g/t gold
The 2008 exploration program was very successful – the knowledge we gained from the program indicates we are in a “regional” or “district” type gold setting.
If you are a new shareholder or potential shareholder, I encourage you to visit our website and review the drill results news releases for 2008 and 2009. Below is a brief summary – all results are within open pit limits drilled to a depth of up to 200 meters (see press releases for specific details, intervals, hole location and depths). The holes listed below are a combination of step out and in-fill drilling – all details are noted in our press releases on our website at www.romarco.com.
2008 Selected Drill Results:
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46 meters @ 5.7 g/t DDH 289
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23 meters @ 5.4 g/t DDH 290
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27 meters @ 2.2 g/t DDH 292
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36 meters @ 4.6 g/t DDH 294
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34 meters @ 3.7 g/t DDH 296
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37 meters @ 7.9 g/t DDH 301
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24 meters @ 7.7 g/t + 29 meters @ 9.2 g/t DDH302
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55 meters @ 6.0 g/t DDH 305
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31 meters @ 2.1 g/t DDH 306
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49 meters @ 3.7 g/t DDH 307
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52 meters @ 1.7 g/t DDH 312
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65 meters @ 2.4 g/t DDH 316
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49 meters @ 2.8 g/t DDH 317
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60 meters @ 3.4 g/t DDH 319
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83 meters @ 4.0 g/t DDH 320
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86 meters @ 4.3 g/t DDH 321
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87 meters @ 2.9 g/t DDH 322
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98 meters @ 4.9 g/t DDH 323
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63 meters @ 1.4 g/t DDH 324
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81 meters @ 2.1 g/t DDH 325
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83 meters @ 2.0 g/t DDH 326
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32 meters @ 2.3 g/t DDH 328
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71 meters @ 2.8 g/t DDH 329
2009 Selected Drill Results:
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57 meters @ 2.8 g/t DDH 333
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60 meters @ 6.9 g/t DDH 334
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39 meters @ 8.8 g/t RC – 1505
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32 meters @ 4.1 g/t RC – 1508
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38 meters @ 2.0 g/t RC – 1509
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55 meters @ 5.1 g/t RC - 1510
The successful 2008 exploration program resulted not only in the increase of reserve and resource ounces but also the merging of the initial six deposits into three larger deposits. The Company anticipates with the result of drilling in 2009, that the current three deposits (South Pit, Ledbetter Pit, and Snake Pit) will become one large “super pit” and the mineralized zone will increase along strike and potentially at depth. Our technical team believes Haile is a regional gold district which extends to the east northeast and west southwest along strike and could rival any major district in North America. Numerous additional targets along strike have been identified for the 2009 exploration program. The mineralized zone remains open along strike to the east and west and at depth to the north. . In the fourth quarter of 2008, the Company purchased a reverse circulation drill rig and employed a drilling team with more than 30 years experience in drilling. The purchase of the rig allows the company the ultimately flexibility in drilling with substantially reduced costs.
With the tremendous success of the 2008 drill program and a better understanding of the mineralized zone and its upside potential, the Company contracted three reverse circulation drill rigs to accompany its wholly owned rig. Currently, four drill rigs with two shifts per rig, are conducting step out drilling to increase overall resources and test new target areas along strike, in-fill drill to convert resources to reserves, complete condemnation drilling to sterilize proposed plant and facilities sites, and drill within proposed pit areas to reduce the strip ratio. The 2009 program consists of 85,000 meters (270,000 feet) of drilling – this size of a drilling program should be a clear indication of what we believe the potential of the project can be. Tom Kilbey, Certified Professional Geologist and Sr. Geologist for Romarco is a designated Qualified Person under NI 43-101.
The Haile Gold Mine has several unique features. First, it is located wholly on private land. Romarco owns the surface, mineral and water rights. Private land, and hence the Haile property, does not get impacted like federal/public (BLM or USFS) lands , which would be subject to projected modifications of the 1872 Mining Law and possible royalty(s). In addition, the State of South Carolina has primacy over the permits and Romarco has not seen any impediments to the permitting process. The community and local officials have been tremendously supportive of our work and the opportunity of realizing much needed significant economic benefits that will be generated by the Haile Mine. Romarco is well underway with the permitting process.
Drilling news will be continuous throughout 2009 as well as updates on the resource estimates, permitting progress and development plans.
Stay tuned with lots of news coming and don’t hesitate to contact me if you have any questions. Thank you for your support – we are dedicated to creating significant value for all of our shareholders. Myself or Shirene Urton are available to answer any questions you may have. We can be reached at 775-355-1900 or on my cell at 210-621-4200.
Yours very truly,
ROMARCO MINERALS INC.
“Diane R. Garrett”
Diane R. Garrett
President and CEO
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