THE HI HO SILVER INTRODUCTION

Dear Member,

When we were searching for our next Featured Company our team agreed it had to be in the mining sector and it had to be relatively unknown with dramatic and achievable short and long term goals.

The wait is over and we are proud to announce that Hi Ho Silver Resources Inc.(HIHO:CNQ) is our new "Featured Company." They are a Canadian junior mining company focused primarily on the exploration and development of Molybdenum. Along with Molybdenum they are focused on the acquisition and development of properties containing copper, gold and silver.

Hi Ho Silver's two main projects which hold the greatest economic potential are the Kettle River Project and the Silver Tip Project, both located in British Columbia. In this report we will be highlighting these two main projects as well as documenting the positive attention they have received in the past few months.

Before getting to Hi Ho Silver's properties we'd like to update our stance on the molybdenum market as we believe its demand will influence Hi Ho Silver's success greatly.

World-wide demand has not slowed in respect to molybdenum and we believe it will only increase. This is why: Molybdenum's primary use is as a key alloy used to strengthen steel. We know it will become more and more essential in the creation and maintenance of infrastructure around the world. In one of our more recent volumes we discussed the disaster which occurred in Minneapolis after one of their major bridges collapsed. This has brought a renewed focus within North America in respect to updating our infrastructure.

Being dependent on one economy is a recipe for disaster and that is why we never depend on a single country's economy, especially that of the United States at the moment. Global demand has been and will continue to be the main contributor to the present value of Molybdenum. China alone is continuing to develop at an unprecedented rate and should keep the demand of molybdenum high. It has been estimated that over 300 million Chinese are set to migrate to urban areas over the next 20 to 30 years. The demand of Molybdenum can be sustained for long periods of time as different countries experience growth and transition at various speeds. There is great supporting evidence that over the next few decades there will be an exceptional period of demand growth in this metal's history; its time to get involved in this sector if you haven't already.

Hi Ho Silver's main project is their Kettle River "Carmi Property". This is an advanced property with proven ore bodies. The property has a National Instrument 43-101 Technical Report dated August 5th 2005 and was revised on June 6th 2006. Significant prior drilling programs on this property have indicated a resource for the mineralization of 20.7 million tones, grading 0.064% Mo (0.106% MoS2). Rhenium byproducts have been discovered in recent drilling and could help to finance production costs. An updating resource estimate is being compiled and is expected to expand the current tonnage significantly. Hi Ho Silver has stated that the goal of their drill program is to double the existing resource believed to be on the property. In past years the depressed value of molybdenum made this property unpractical and economically unviable. It is one of those rare stories where the property was purchased when the sector was struggling during the depressed market of the 90's. As molybdenum has risen in value so has the property's value. Management's aggressiveness in pursuit of molybdenum is at an all time high and results are expected very shortly.

The Kettle River Property (Carmi Property) is located within the prolific Beaverdell Mining Camp. It is located only 45 kilometres southeast of Kelowna. To date, a total of 21,530m (70,000 feet) of drilling has been carried out within the property. The claims cover a porphyry style molybdenum deposit.

The Carmi Property has characteristics and fundamentals our team looks for in any large deposit moving towards production. Its operations are occurring within the mining friendly province of British Columbia on a relatively flat terrain with elevations ranging from 1,050m to 1,200m. As most people from Canada know, the climate is relatively mild and allows for exploration work to be carried out year round. There is good gravel road access throughout the entire property. A previously completed initial drill program of eight holes totaling 1,821 meters was successful in confirming grade from previous drilling and confirmed a large, previously unknown area of potential mineralization discovered by geophysics. This property is very advanced and management is wasting no time as results from their aggressive 16 hole diamond drill program are expected in early September; that is one reason why we are introducing Hi Ho Silver to you now. Hi Ho Silver's primary objective is to expand the mineral zone and confirm grades previously reported.

What is most appealing about this project is being an open pit deposit there is high probability its resource could double to over 40 million tons. Three main ore bodies have been identified on this property. Two of them are open pit mines with a combined estimated 22.8 million tons grading .106% mos2(core sample in picture to the LEFT). The estimated gross metal value is worth US $53 a ton. The mining and milling costs in this area are expected to be less than $5 a ton. The third ore body is a high grade bulk mineable underground zone. This zone has an estimated 5 million ton resource grading 0.33% mos2 with estimated gross value of US $165 a ton. After reading these facts it should be no secret why we decided to feature Hi Ho Silver, but there is more.

Another prominent property of Hi Ho Silver's is their Silver Tip Project. The project covers 9 square kilometers and is located within the Historic Slocan Silver Camp. The Slocan Silver Camp has produced over 75 million ounces of silver between 1892 and 1993. High grade silver ore is present on the property. It has shown grades of 60 - 100 oz/t Ag, 40-80% Pb and 1.25-7% Zn. A systematic property wide exploration program has been commenced. The objective of this property is to define and exploit, under bulk sampling permit guidelines, blocks of high grade (+$1,000 tonne gross metal value) of Silver, Lead and Zinc. Hi Ho Silver owns a 51% stake in the property and has the option to acquire the remaining 49%. On October 19 2006 Hi Ho Silver entered into an agreement whereyby it can acquire up to a 100% interest in the Silver Tip Silver Project. The project is located within the prolific Slocan/Nelson mining camp of British Columbia.

Hi Ho Silver has two other projects within British Columbia. The first being the Tasco Project which covers 64 square kilometers and lies within a mineral-rich region of central British Columbia. The project is a large scale Copper / Molybdenum porphyry target. To give you an idea of the area, Teseko Mines operates at the Prosperity Deposit which contains 9.2 million ounces of gold and 3.9 billion pounds of copper lies only 45km to the north. The other project is the South Rim project which has two targets, Molybdenum and Gold. Grades from 0.070% MoS2 to 2.12% MoS2 occur in moraine material which was traced for over 2,000 feet south to the toe of a glacier. Hi Ho is currently earning a 51% interest in this project.

In case all of this information isn't enough, we found out from our research that Hi Ho Silver received a 12 month share price target written by Nigel Heath, BBM, CFA at E Research for CDN$2.00 earlier this year. Hi Ho closed Friday at CDN$1.01. The full price target report is on Hi Ho Silver's website.

When our team interviewed Fred Fisher, President and CEO of Hi Ho Silver Resources this week, we learned about a goal of the company's which many aren't aware of, but need to be. He stated that, "The whole focus of the summer and fall programs was and is to continue building the company and our assets and move to a full TSX lisitng as soon as we qualify. The Carmi Moly project has huge upside economical potential and we plan to unleash that potential to its fullest." He went on to note that, "Hi Ho is looking forward to an extremely active and busy fall of exploration with ongoing drilling on the Carmi project in addition to the 16 drill holes currently pending assays."

We wanted to bring you a company in its early development stages and introduce it to you ahead of the pack. We believe we have done just that with Hi Ho Silver Resources. Stay up to date with our Weekly Volume as we will be bringing more in-depth coverage on Hi Ho Silver as they develop.

*To learn more about the CNQ visit their website at www.cnq.ca or visit www.PinnacleDigest.c... click on our "Weekly Volume" section and click on Vol. 33 - A New Discovery.

Links

www.hiho.ca

www.cnq.ca

This is a paid advertisement. This material is not an offer to sell or a solicitation of an offer to buy any securities.PinnacleDigest.com is an online financial newsletter focused on researching small-cap and large-cap public companies. Information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete. This is not an unbiased report, please view our privacy policy and disclaimer for our full disclosure and compensation.