Vol. 78 - HI HO SILVER: CLAIMING CARMI

Dear member,

The markets are teetering on the brink of positive sentiment as several analysts and investment gurus have said that the worst of the credit fiasco is over. It's clear to our team at Pinnacle Digest that there will be a few more rocky months before any substantial liquidity comes back into the markets. What does that mean? Your window of opportunity to invest in undervalued stocks is shrinking by the day.

Last week we updated all of you on Hi Ho Silver Resources (HIHO:CNQ) (H9T:Frankfurt) and they did not disappoint us, announcing a company making acquisition. Their share price has increased 20% since our review last week. On July 23rd Hi Ho Silver agreed to acquire 100% interest in their Carmi Molybdenum Property. The Carmi Property is comprised of 5 claims that total 2,873.637ha (7,184 acres). As many of you might remember, our team traveled to this property last fall. What is most impressive about the property is its accessibility and mineralization which begins very close to the surface.

Read Pinnacle's Carmi report

Our team has strongly supported the value and long-term fundamentals of molybdenum.

Read Pinnacle's Molybdenum Report

The Carmi Project is a molybdenum project with by-products of gold & copper. Hi Ho Silver has done an extensive amount of work at Carmi having invested roughly 2 million dollars into property development. We are expecting the NI 43-101 resource calculation for Carmi very soon.

Let's recap the work done to date on the property:

Hi Ho has drilled 32 diamond core holes on the Property since December 2006 with an objective of confirming and expanding on the known mineralization. To this end, all work completed to date is being compiled and will be incorporated into a National Instrument 43-101 compliant resource estimate. It is anticipated that this work will be completed this summer. A total of 221 drill holes have been completed on the Property by all parties. The Property is located eight kilometers from a paved highway and is easily accessible by a two wheel drive vehicle. It also benefits from good infrastructure; high voltage power is nearby and the community of Beaverdell (location of the formerly producing Highland Bell Mine) is less than 30 kilometers away. Like Hi Ho's Silver Tip Property, the Carmi Property is located in the mining friendly province of British Columbia.

We encourage you to read the latest news release and drill results from Carmi below:

Read news release

Last week we discussed Hi Ho's Silver Tip Property where exploration has begun. There will be soil and rock sampling, geological mapping, trenching, opening up old workings, access road/trail construction, metallurgical work, prospecting, shallow drilling with portable drills and bulk sampling. Hi Ho Silver's crew arrived on the property just a few weeks ago and work has commenced. The company is fully financed to complete all expected work on the Silver Tip Project this summer and we are expecting results and news from this project shortly.

Read last week's report on Silver Tip

Hi Ho Silver's Carmi Project is the focus of this review as they have agreed to