Netco Silver: Letter from the Board

Netco Silver Inc. (TSX VENTURE:NEI) - 

Dear Shareholders,

With the beginning of a new era for Netco, the board is pleased to issue the
following communication to shareholders. At the most recent AGM, the Company
officially approved the change of its name from Netco Energy Inc. to Netco
Silver Inc., which properly reflects the company's strategic focus as a play on
high-grade silver assets. The name change occurred on July 11, 2011. Going
forward, Netco's initial prospect is its newly-acquired interest in the Toruel
Project, located in the Rio Negro Province of Argentina, an area which has shown
significant potential for high-grade silver.


The Toruel Project consists of numerous epithermal veins that have variable
amounts of significant silver, copper, gold, indium, lead and zinc. Based on the
opinions of the geologists who have identified the property for us, we believe
the Toruel Project will be a significant silver prospect for Netco going
forward.


To date, the property has had a total of 4,300 meters of diamond drilling and
1,590 meters of reverse circulation in three rounds of drilling performed by our
partner, Marifil Mines. From this drilling, a significant amount of
mineralization has been defined, but not quantified. Drill results are described
in our National Instrument 43-101 compliant technical report entitled "Toruel
Project, Rio Negro Province - Argentina", dated June 15, 2011, authored by Mr.
James Ebisch, and filed on SEDAR on June 22, 2011. The report describes how
surface samples from the property have resulted in 0.0 to 5,871 g/t silver, and
drilling has intercepted strong mineralization ranging from 0.0 to 3,759 g/t
silver over 0.5 m within a 5.0 meter zone that averaged 960 g/t silver along
with another 5.4 meter interval that averaged 981 g/t silver and 6.31% copper.


As promising as these numbers look so far, we consider the Toruel Property to be
underexplored, with the true potential for the project yet to be seen.


Management has just returned from a trip to Argentina, which included a site
visit on the Toruel Project with the consulting geologist that oversaw the
exploration work previously performed. Over the next three months, Netco will
embark upon its first phase of exploration on the Toruel Project, which will
include detailed mapping and sampling of the property, as well as geophysical
work and trenching. The goal is to gain a better understanding of the true scope
of the previously discovered Toruel vein system, as well as to investigate the
entire property for additional veins and potential that may exist outside of the
Toruel vein structure.


Andrew Gourlay (P.Geol.) President: "Sound geology begins with the systematic
mapping and sampling of the property to truly understand its potential. We
already know have a high-grade vein structure in the Toruel system, but this
work will help us to determine if there are additional targets that we have yet
to uncover on this property."


Along with tapping the potential of the property itself, Netco is working to
assemble a strategic Argentina geological advisory team. Through our due
diligence process we have built relationships with a network of geologists with
considerable South American expertise, and, as we add new members to our team
and execute on our strategy, we believe that Netco and the Toruel Project will
deliver significant shareholder value.


We are pleased to officially become a part of the silver community, and thank
you for following us on our journey to get here.


Sincerely,

Colin Bowkett, Director

Netco Silver Inc.

Technical information in this letter has been reviewed and approved by Andrew
Gourlay, our President and, a qualified person as defined in National Instrument
43-101.


Disclaimer for Forward-Looking Information

This letter contains projections and forward-looking information that involve
various risks and uncertainties regarding future events such as statements: (i)
regarding the potential return to the era of primary silver mines; (ii) that the
Toruel Project may be a significant silver play going forward; (iii) that the
true potential of the project is yet to be seen; (iv) regarding our future
exploration plans and business strategy; and (v) that the Toruel Project will
deliver significant shareholder value. No assurance can be given that any of the
events anticipated by the forward-looking statements will occur or, if they do
occur, what benefits we will obtain from them. These forward-looking statements
reflect management's current views and are based on certain expectations,
estimates and assumptions which may prove to be incorrect. A number of risks and
uncertainties could cause our actual results to differ materially from those
expressed or implied by the forward-looking statements, including: (1) a
downturn in general economic conditions, (2) the inherent uncertainties and
speculative nature associated with silver exploration, (3) a decreased demand
for silver, (4) any number of events or causes which may delay exploration and
development of our property interests, such as environmental liabilities,
weather, mechanical failures, safety concerns and labour problems, (5)
uncertainty of governmental policy in Argentina; (6) inability to obtain all
necessary permitting and financing, and (7) other factors beyond our control.
These and all subsequent written and oral forward-looking information are based
on estimates and opinions of management on the dates they are made and expressly
qualified in their entirety by this notice. Except as required by law, we assume
no obligation to update forward-looking information should circumstances or
management's estimates or opinions change.