Soho Resources Corp.: President's Letter to Shareholders

VANCOUVER, BRITISH COLUMBIA has significantly advanced its cornerstone Tahuehueto Project in Durango State, Mexico. While 2007 was an eventful and exciting year for the Company, it was also marked by a series of challenges, notably delays associated with a helicopter-supported drilling program and the release of the first National Instrument (NI) 43-101 resource estimate for the poly-metallic (gold, silver and base metals) project.

Soho has since resolved the mechanical problems that interrupted its 3,000-meter, helicopter-supported drilling program, and subject to delivery of replacement parts will resume helicopter-supported drilling after the Christmas Break. The Company also expects to receive its first formal NI 43-101 compliant resource estimate for Tahuehueto from Mine Development Associates of Reno, Nevada, in early 2008, paving the way for subsequent pre-feasibility and scoping studies.

Soho Resources has completed more than 31,000 meters of drilling in 170 holes to define priority zones occurring within a district-scale epithermal system traced for at least six kilometers at Tahuehueto. Along with the balance of the helicopter-supported drilling program, the Company has entered into a diamond drilling contract with Falcon Perforaciones Mexico S.A. De C.V., a Mexican subsidiary of Falcon Drilling Ltd. of Prince George, B.C., for at least 5,000 meters of core drilling (see press release Dec.5/07). In early December one of Falcon's drill-rigs was mobilized to Mexico, with drilling to start with the arrival of the rig to the Project site immediately after the Christmas Break. A second Falcon rig is intended to be mobilized to the site in early 2008.

The bulk of 2007 drilling was focused on resource definition within five priority zones and totaled more than 15,500 meters. The ongoing 3,000-meter, helicopter-supported program is testing critical areas where major structures intersect but are largely inaccessible by road because of steep terrain. Some of the best assay results for both precious and base metals were returned from the edges of such areas, notably the El 1225 Clavo and Level 8-9 Clavo. The Company has completed four drill holes originally targeted for helicopter drilling, one with the helicopter drill, and three with a skid-mounted drill where drill sites were able to be accessed by explosive blasting to establish skid roads. Results from these first four holes within the helicopter-supported drilling area will be released as soon as possible in early 2008.

Tahuehueto covers 9,081 hectares of prospective ground and hosts at least one dozen mineralized zones within a structurally controlled epithermal system. Exploration to date has focused mostly on four zones - El Creston, Cinco de Mayo, El Rey and Santiago - situated within or related to the large, continuous Cinco De Mayo-Perdido-Santiago Structure. The recently discovered Catorce Zone in the central part of this large structure has evolved into an important high-grade exploration target (see press release Sept 27/07).

The results of exploration to date have led to an improved understanding of the geological model and structural setting of Tahuehueto, which is situated in the central portion of the Sierra Madre Mineral Belt hosting most of Mexico's historic and producing mines, mineral deposits and active exploration projects. Hall Stewart, Vice-President of Exploration and Development, has extensive experience in this prolific belt, where he helped discover and define resources totaling 6.98 million gold-equivalent ounces at three separate projects.

Geological mapping and sampling programs have revealed important new targets at Tahuehueto. Geologists have identified surface expressions of the Texcalama Structure over at least 1,800 meters of strike length. Additional work to test this promising target is planned for 2008.

Soho Resources intends to initiate a drilling program to collect a mini-bulk sample of mineralized zones to submit for metallurgical testing in order to determine optimal processing methods and projected recoveries of gold, silver and base metals. Because of the coarse-grained mineralization and lack of deleterious elements, the Company is optimistic that results will be favorable. This program will include a series of flotation and leaching tests as well as ball mill work index tests and detailed mineralogical determinations. The potential for acid generation and environmental issues will also be assessed as part of the environmental planning process.

Infrastructure planning is also under way with the Company agreeing to a cost-sharing initiative with both State and Municipal governments to upgrade the access road to the site and also provide improved access to nearby communities, including El Purgatorio, Arroyo Hondo and Las Cruces. This project will start in December of 2007 and is expected to be completed by the end of February, 2008.

Soho Resources has prudently managed its financial resources, including the net proceeds of two separate private placement financings that raised $12.2 million in April of 2007. At November 30, 2007, the Company had working capital of approximately $6.5 million dollars.

Soho has established an in-house Investor Relations Department, headed by Manager Glen Sandwell, in order to improve communications with shareholders and the investment community. Toward this end, this team and senior management representatives will be attending a series of important industry conferences in early 2008, including the PDAC Convention in Toronto in early March and the Cambridge Conferences in Vancouver (Jan. 20-21), Phoenix (Feb. 9-10) and Calgary (April 12-13). Other initiatives to raise the Company's industry and investor profile include a recently published analyst report by London-based Objective Capital (click here for a full PDF version) and a newly produced corporate video to be released shortly.

Mineral exploration and development is a challenging yet ultimately rewarding enterprise, as the past year has shown at Tahuehueto. We appreciate the patience and support of our shareholders and the skills and dedication of our Mexican and Canadian exploration and management teams. We look forward to an exciting and productive year ahead, and to ultimately becoming a mineral producer in Mexico.

Sincerely,

Ralph Shearing, P.Geol., President and Chief Executive Officer

Shares Issued - 100,137,913

Last Close 2007/12/11 C$.195

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Contacts: Soho Resources Corp. Glen Sandwell [phone] or Toll Free: 1-800-685-0576 Email: [e-mail] Website: www.sohoresources.ca