Shareholder Update

Agreement and Progress on Unity Project

Forward Stock Split (10 new shares for 1 presently held share)
 
The Option Agreement with Maximus Ventures Ltd, of Montreal, Canada, signed on July 27, 2007 as announced in Unity’s newsletter in August 2007, provides that Maximus can earn a 60% interest in the Unity property by spending US$1.0 million in exploration and development work and by completing a positive feasibility study. Maximus Ventures works with Unity in the United States under the name of its wholly owned subsidiary, Walker Lane Gold LLC.

To Date
 
In September 2008, Maximus Ventures Ltd. completed a business combination (merger) with NFX Gold Inc. and the combined company has selected the new name Bear Lake Gold Ltd (BLG:TSXV). Therefore, Unity is now doing business with Bear Lake Gold Ltd. Bear Lake operates in the United States under the name of their wholly owned subsidiary, Walker Lane Gold LLC (a Nevada corporation) through which Unity is working on our Joint Venture Option Agreement.

The signing of the final Joint Venture agreement, by mutual consent, has been postponed until Bear Lake/Walker Lane has completed additional phases of the exploration program. The date by which Maximus must deliver a positive feasibility study has been extended due to delays (fires in 2007) and the permitting approvals (US Forest Service and Bureau of Land Management) causing less than full work seasons.

2009 will be spent completing the permitting process to expand the drilling program, adding three new drill sites, and the work program will begin again in 2010 with as early a start as possible. Bear Lake Gold has assured Unity that their commitment to continue their exploration efforts remain unchanged.

Bear Lake Gold states that the total amount of expenditures incurred on the Unity Project as of February 28, 2009 is $935,172.00 (US).

Progress

In a Press Release dated March 27, 2009, Bear Lake Gold published an Update on the Unity Project in central Idaho. Results of the 2008 drilling program on the Unity Project: Five drill holes totaling 1,018 meters were completed. Two of the holes drilled intersected significant quartz veins, both at 100 meters below surface. Two of the holes also confirmed the presence of gold and silver mineralization in the fault zone.

Francois Veins, President and CEO of Bear Lake Gold stated in the release, “Although we missed the main gold-rich veins with our drilling, we confirmed the presence of gold-bearing veins away from the old workings. We now have a better understanding of the local geology and we intend to prepare a follow-up drilling program targeting the gold-rich veins at depth.”

All holes drilled in 2008 targeted the lateral and down-dip extensions of two of the richest and very extensive gold veins, namely the Little Giant and Rescue. These veins are locally very high-grade and are reported to have yielded grades of up to several hundred ounces of gold per tonne. However, production grades were generally recorded at 30 to 150 grams per tonne (1 to 5 ounces gold per ton) according to historic information (John C. Reed, 1937; Geology and Ore Deposits of the Warren Mining District, Idaho County, Idaho).
Additional Claim Staking

Twenty-five (25) new claims were staked in 2008 – total cost for staking and filings was $15,235. Unity now has seventy-six (76) BLM leased staked claims (1,258 acres) as well as the original patented/deeded 158 acres of the main mines.

 Unity now has 1,416 acres owned /or controlled for exploration and development.

Aerial Photography and Composite Mapping were completed. This will be beneficial in planning future exploitation of the many vein structures indicated on the surface. Cost of aerial photography and composite mapping of the patented and unpatented claims was $18,061. A permanent GPS base station was established at a cost of $1,793.

Forward Stock Split

Unity GoldSilver is in the process of effecting a forward stock split of ten (10) shares for one share currently held. This will bring the share price to $.20 per share down from the present $2.00 per share. Each shareholder will have the same percentage position in the company as before the stock split – just more shares. Unity’s directors feel that the $.20 per share price is more in line with other junior companies. The strategy is that at a $.20 per share stock will increase more easily to $.40 than a $2.00 share will increase to $4.00. We look forward to an increase in price as the project progresses.

The stock split has been approved by the State of Washington, Unity’s State of incorporation, and the new stock certificates reflecting the ten (10) for one forward split will be issued shortly. The capitalization of the Company has been increased to 100,000,000 shares to accommodate the forward split as there will be an increase from the present 4.4 million shares outstanding to the new increased amount of 44 million shares.

Regarding Your Old Share Certificates Shareholders will not be required to surrender or send back their presently held stock certificate/s. New certificates with a significantly different style and color will be issued and the old certificates will be considered void. You may keep the old certificate/s as a “souvenir”.

Stock Sales New sales of the $.20 per share stock are available to accredited investors and currently accredited shareholders only at this time. The Company’s intention is that we will be a dividend payer once the property is in production. Our goal is to pay dividends at a good percentage of shareholder investment annually.

With Gold holding in the $900+ range and Silver in the $15 range, Unity’s potential for profit for shareholders is becoming greater annually. Historical production average was 5.6 oz gold and 30 oz in silver per ton which amounts to at today’s mineral prices: $5,040 gold and $450 silver per ton = $5,490 per ton (10 cubic feet of ore). Minimum production of 20 tons per day would produce $109,800 gross per day less costs. The project’s potential for profit is excellent.

Unity’s Directors believe that we are fortunate to forge an alliance with an experienced mining group such as Bear Lake Gold who is well funded and enthusiastic about the Unity Project. Both Unity and Bear Lake Gold are looking forward to a successful, profitable and long term partnership.

Best regards,

Ray G. Bohn
President/CEO