Vol. 65 - WHAT WE BELIEVE

Dear Member,

This week's volume is slightly different than any we have written in the past. Like many 'Weekly Volumes' we will discuss a new metal and the demand which surrounds it. The idea and purpose behind this newsletter is to emphasize that we need to invest in what we believe in. That is the bottom line. You have to invest in what you believe in and you have to invest in what you understand. We are seven days away from announcing our next Featured Company and it will be the last one before the summer arrives.

The metals we are about to discuss are in extremely high demand at this stage of the commodity boom. The lasting demand and need to cease dependence on overseas production of these metals is critical to this review. Ultimately it is the size and economic potential (and actual value) of the property or properties involved that determines their chances of being bought out and turned into a mine. If the size of the property is too large and the economic potential too great to ignore, the only component needed is a management team that has what it takes; the ability to turn exploration into money.

Whether it is drilling for oil or mining for minerals, management's ability to achieve these results is the most important decision our team makes. Now let's get started.

Platinum Group Metals

In preparation for the announcement of our upcoming Featured Company our team will be evaluating the supply and demand of PGMs (platinum group metals) and what has attributed to their rise in value. Platinum Group Metals include platinum, palladium, rhodium, ruthenium, osmium and iridium. Our review will be focused on Platinum, Palladium and Rhodium, the more prominent and widely in demand metals.

Platinum was discovered in 1924 in South Africa by a German geologist. In the late 1990's platinum exploded onto the radar of major players in the mining industry as its value soared. One of platinum's main demands is that it is used as a vehicle catalyst for controlling pollution. Stricter auto-emissions standards have led to the development of catalytic converters which require small amounts of platinum for diesel-fueled engines. Gasoline powered engines use palladium which is also in great demand. Palladium is less expensive than platinum but has a solid place in the market. The demand and value for these metals has exploded and is why platinum is trading close to a record high today.

Take a look at the five year chart to see what kind of impact these demands have created.

• PGM Charts

What you need to know about platinum is where it's located, how intense the demand for this metal is and if this demand will stabilize and last. The vast majority of platinum and palladium are found in the Bushveld Igneous Complex in South Africa which is an ancient formation that holds close to 75% of the world's known platinum reserves. AngloPlat and Impala are two of the largest producing platinum players in the world and both operate out of South Africa. It is evident that they are having difficulty keeping up with the pace of global demand as it overcomes supply levels. In recent years the United States has relied on imports of roughly 90% of its platinum requirements and 69% of its palladium requirements. This has to change.

Platinum based companies operating in South Africa have experienced devastating pull backs in their share price of late. Political unrest and power issues are hitting the country's mining industry. This is putting many mines and future mines in jeopardy.

With Platinum trading at approximately $63,000 per kilogram it will not be long before a North American company breaks through. The next few points are very important. The only existing primary source of PGM's in Canada is at the Lac des Iles mine. This mine has planned production of 300,000 ounces of palladium for 2008. This is a fraction of the world demand and a mere blip on the supply levels. This mine also produces a small amount of platinum. The only primary production of PGM in the United States is limited to the Stillwater and East Boulder mines, both located west of the city Nye, Montana. The J-M Reef is where the metals are extracted and contain very high grades of roughly 20 grams per ton. Palladium accounts for roughly 75% of the PGM extracted with the remainder being largely platinum.

North America needs another company to step into the PGM market.

In the past we've explained the necessity of buying into the gold and silver run and our opinion on the issue hasn't changed.

Gold and silver are really beginning to show their strength. Even as fears of inflation diminish and many currencies stabilize or increase in value, gold and silver have hardly declined. Both are trading within striking distance of their all time highs. To pull back slightly and stabilize is in many ways a much more positive sign than maintaining volatility while touching new highs. The value of gold and silver will continue to trade at or near historic highs over the next few years. Remember, gold can easily be mined at less than $400 an ounce. Silver at much less than $10 an ounce. It could prove to be a very exciting time for juniors defining resources with these two precious metals.

Each PGM and precious metal we have explained in this volume is located on our next Featured Company's properties. We have never dealt with a company with such a diversified and deep portfolio of properties. It took us almost 4 months to find a company we are willing to put our name behind and the announcement will be made at the end of next week.

What is our track record in bringing forward companies?

Highlights

A year ago we brought you Mosquito Consolidated Gold Mines(MSQ:TSXV) which went from $1.30 to a high of $2.41. In that time the company announced an NI 43-101 resource calculation on their CUMO Project. The Cumo Project has a proven 1.1 Billion Tons of Higher-Grade Multi-Element Mineralization and is now one of the largest known molybdenum properties in the world.

Montello Resources(MEO:TSXV), our Featured Oil and Gas Company went from $0.14 to a high of $0.265. During the time of our coverage on Montello they have gone from being a speculative oil and gas company to a producer, bringing on a high pressure well at their Morgan Highpoint Project in Tennessee.

After writing our report on Hi Ho Silver Resources(HIHO:CNQ) titled "The Big Picture" we witnessed their share price climb from $0.35 to $0.70. Since that report Hi Ho Silver has acquired 100% of the Silver Tip Project, announced the highest grade molybdenum results we have ever featured and announced an expected date for the release of their NI 43-101 on the Carmi project.

The increase in share price is staggering but the core of our success comes from the development which followed each Featured Company's research report. We target