To Our Shareholders:

Brownstone Resources is at a pivotal point in the company's operations this year. Extremely encouraged with the preliminary results it has received on its LS Grande gold/silver/copper project in northern Arizona, the Company has made it the number one priority in its 2008 exploration program. 

 Arizona has had a rich history in gold and copper mining; in fact, its cumulative gold production since 1860 exceeds 16 million ounces mined from 219 metallic mineral districts. Twenty-six of those districts have produced more than 100,000 ounces and 46 have produced more than 10,000 ounces. Arizona hosts a number of deposits with known potential to produce a few hundred thousand ounces or more.

Recently there has been a marked increase in the level of activity and interest in exploring for new discoveries of gold, uranium and copper mineralization deposits. Several other major base and precious metals mines have been developed on approximately the same latitude as the LS Grande project. 

The LS property was originally identified by remote sensing with results indicating the potential of the mineralized zone to be quite large. A ground sampling program in the most promising areas was recently conducted in which five surface samples from the property were collected for the purpose of analysis for gold mineralization. Upon assay, all samples returned positive results indicating the presence of gold.  Additionally, based on the historical assay information provided to Brownstone, the estimated potential value range for gold on the LS GRANDE property could be somewhere between .10 - .20 ounces of gold per ton.

Based on this information, Brownstone will conduct its Phase I drilling program to test these targets to a maximum depth of 400 ft.  The 3000 ft drilling program is expected to commence in late summer/early fall.  Additional drilling targets are expected to be identified as the exploration program progresses.

Based on the mining history of the area and the encouraging results that Brownstone has received in it preliminary exploration program, the Company is very excited at the prospects for the LS Grande project and will continue to keep its shareholders updated on its progress as the exploration program continues.
 
Yours truly,
 
Ken Lamb
President