Letter To Shareholders

August 3, 2012

Dear Shareholders:

We have received numerous emails and inquiries over the last several weeks. It has been the policy of Gold Coast Mining to communicate information and developments through press releases, our website and our social outlets (Twitter, Facebook). The purpose of this policy has been to avoid the communication or miscommunication of updates through an individual forum rather than a public one. Our intention is and has always has been to keep our shareholders informed of our progress and intentions. Due to the nature of the mining business, those updates can be sporadic at times.

With that said, it is our hope that this letter will answer and address any potential concerns that you may have.

CAPITAL STRUCTURE

Our authorized share structure remains at 750,000,000. The issued and outstanding is 654,887,086 which is an increase of 25mm since our last update. The shares were issued in June to settle previous debt obligations. As we have previously stated, we would have to issue shares as we went forward but would avoid toxic financings and/or reverse splits in the process. We remain committed to that goal. It is our intention that any share issuances is to add value for our shareholders.

GOLD STAR

The Gold Star JV with Western Sierra continues to be a key project for our company. We knew that developing those claims would be a long-term process with short-term results along the way. While we would like to be able to throw $100’s of thousands of dollars at developing the claims, it is not the sensible approach for a small mining company. We have taken the advice of our partners and advisors and have proceeded with Gold Star in an economically sensible manner. This approach has produced encouraging results and has allowed for the area of focus to be narrowed, saving the JV a tremendous amount of potential expenses in site sampling/exploration.

Although the methods and reported results are not what some may have wanted or been expecting, they are positive progress. The JV has remained on the schedule that it put forth in the beginning, with some expected delays here and there. It is important to understand that every step forward the JV takes with positive results creates a sort of confirmation that the efforts should continue forward. We are unable to control the timeline or unexpected delays/expenses of developing these claims, but can be excited about the small steps that give us reason to keep working.

Azurite Claims

As stated in our press release, we took interest in the Azurite claims due their ability to be developed in a quicker fashion than Gold Star. It also would give the company the opportunity to have an interest in 2 potential projects therefore diversifying risks.

We have posted some information on our website regarding these claims so that our shareholders may research the same material we are reviewing. The statement that the claims could be in production in a very short time (3-4 months) was based on input from our partners and the assumption that funding is in hand. We are currently reviewing these funding requirements with our partners and investors on the Gold Star JV. It is our intention to only pursue these claims upon completion of our research and the ability to obtain funding commitments from our investors in a manner that builds shareholder value, not destroys it.

We will be keeping you updated regularly with additional information on our progress and findings. Please check our website and Twitter page regularly for communications. Again, we will attempt to answer any questions or inquiries through these forums.

Thank you for your support

Sincerely,

Gold Coast Mining