Vol. 73 - BUILDING A GIANT II: MOSQUITO GOLD

Dear Member,

Last Sunday our team updated our longtime featured company Mosquito Consolidated Gold Mines (MSQ: TSX-V). Since that update they have announced another major development.

On June 17th Mosquito reported that it has received an excellent preliminary metallurgy report on its Idaho-based CUMO molybdenum project. This report outlines what percentage of material can be recovered and leads up to the cost and viability of production.

Many investors are taken aback by the astronomical size of the CUMO Project which has a 43-101 compliant resource of 2.89 billion pounds of molybdenum oxide (MoO3), 3.41 billion lbs of Copper (Cu), 149.8 million ounces of silver (Ag) and 185.3 million lbs of tungsten (W). We don't blame them, but what many don't understand is how profitable and efficient mining molybdenum can be, and more specifically, mining molybdenum at the CUMO Property.

The metallurgy report was conducted by SGS Vancouver Metallurgy (SGS) and was entitled "The recovery of molybdenum, copper and silver from the CUMO Samples". This is a crucial step towards accomplishing a bankable feasibility study and ultimately moving the project to production.

Let's take a look at the first portion of the news release followed by our interpretation.

In December 2007, 114 drill core samples from CUMO drill holes 27, 28 and 29, totaling 745.5 kilograms and sorted into the three mineralized zones, Cu-Ag, Cu-Mo and Mo, were delivered to SGS for analysis. To date, rougher and cleaner flotation, QEMSCAN mineralogical, and bench scale grinding studies have been completed on the three zones.

Overall, the results of the studies completed show better-than-expected recoveries in all parts of the deposit and confirm that even at the low-grade end the recoveries are excellent. Two different grinds were used, with the finer grind giving better recoveries, especially in the case of copper. The material is straightforward, with relatively low concentrations of problematic minerals such as pyrite, clays and talc, lending itself to effective Cu/Mo separation to create two saleable concentrates. Reagent consumption appears to be slightly below average, due to the lack of problematic minerals, indicating that processing will be low-cost and relatively straightforward.

To date, Mosquito's own internal economic analyses of the deposit have used the following recovery rates: 90% Mo, 60% Cu, and 50% Ag. The metallurgical study results indicate that much higher recoveries can be achieved for all three metals, even at the lowest grades. For example, in the cleaner flotation study, recoveries for molybdenum were 97.5% in the Cu-Ag zone, 93.7% in the Cu-Mo zone, and 94.9% in the Mo zone.

Let's recap the past 9 months and what has taken Mosquito to their current position:

On October 16th Mosquito Intersects Excellent Mineralization at Cumo

Hole 29 Returned +2,000 Feet Grading Greater Than 0.1% Molybdenite

Hole 29 intersected Molybdenum bearing mineralization from 57.2m (190 feet) to 686.9m (2281.7 feet). Assay results returned included Hole 29-07 614.1 meters (2040.0 feet) grading 0.103% MoS2.

Our research team has never come across a hole so deep and high in molybdenum mineralization within North America. The 2040 ft hole is open at depth.

On March 10th Mosquito Completes NI 43-101 Resource on CUMO Deposit of 2.89 Billion Pounds of Molybdenum Oxide, 3.41 Billion Pounds of Copper and 149.8 Million Ounces of Silver

We have yet to find another junior with a resource of this size. With only 20% of the CUMO Property drilled we can't help but wonder what the above number will look like after this summer's drill program.

On April 16th Mosquito Files CUMO NI 43-101, Announces 1.1 Billion Tons of Higher-Grade Multi-Element Mineralization

We have yet to find a junior with a high grade core of this size.

On June 9th Mosquito Commences 2008 Drilling Program With CUMO Project

We have yet to find another junior mining company currently drilling with 5 solely owned drills on one property.

On June 17th Mosquito Receives Excellent Preliminary Metallurgy Report on CUMO

We have yet to find another junior with a 90% recovery rate on over 1 billion pounds of high grade defined molybdenum at their flagship property.

Continuation of June 17th Press Release:

At the CUMO Property samples were selected in continuous intervals to represent the volume and grade distribution within the overall deposit. It should be noted that SGS maintains an extensive database of mines from around the world for comparison purposes on certain aspects of the tests.

Over the next few weeks the remaining tests will be completed and include the following:

• Lock cycle testing to improve recoveries from the flotation cycle
• 10 kg cleaner flotation testing in bulk form to obtain recoveries by treating the zones as a single sample
• Obtaining the potential recoveries of Tungsten(W) and Gallium(Ga) from the tailings of the flotation process
• Obtaining a complete analysis of the concentrates including Rhenium and Osmium
• Determining the chemical make-up of the final tailings from the circuit
• Outlining a potential mill flow sheet for the deposit

Once completed, a final report will be submitted and filed on Sedar. This is expected within