Analyzing a Junior Mineral Company News June 17, 2009 1 Dr. John-Mark Staude President & CEO

Analyzing a Junior Mineral Company News

June 17, 2009

1

Dr. John-Mark StaudePresident & CEO

Canadian National Instrument 43-101This sets out standards and guidelines for reporting. It helps the investor.

The Security Commission monitors for compliance.

Professional Geologist- Engineer Certification required on technical portion of news releases.

There are three main categories on resources (Measured, Indicated, Inferred).

www.Sedar.com

2

Four types of companies in Resource Sector

0

2

Greenfields

~4 - 5 Years

Pre-Discovery

1 - 2 YearsDiscovery

2 - 3 YearsFeasibility &Permitting

2 YearsDevelopment

1 YearStart-Up

Depletion

Full ValueCompetitive High Risk

Potentially High Value Few Competitors and Lower Risk

4

6

8

10

InstitutionalInvestingBegins

Speculative StockAhead Of Known Value Orphan

Period

SpeculatorsLeave

Value Opportunity

Time

Rela

tive V

alu

e

1.1. 2.2. 3.3. 4.4.

Value Chain

Low Probability, Long Time

T

“No one knows”

Highland Valley

5

??Context- “make calls, ask questions, due diligence”

Geologic Perspective

1. Company (size, business, track record)

2. Project location, stage 3. Context, past results, context, number of holes4. Possible deposit type? 5. Length of intervals

6

Deposit types are keyAssay results in news releases- need to be interpreted in the context of deposit types - (porphyry, epithermal, veins, placer, not disclosed)

7

Value vs Length of Intercepts

8

Source: Research Capital, 2009

IN-SITU VALUES VS LENGTH OF DRILL HOLE

0

250

500

750

1000

1250

1500

1750

2000

2250

2500

0 200 400 600 800 1000

Length (Metres)

In-s

itu

val

ue

(US

$ p

er t

on

ne)

All Data Previous Highs This Weeks High

Young-Davidson (NGX)

Campo Morado (FAN)

40 Mile (FMM)

Double Eagle (NOT)

Gold Ridge (SGA)

Santa Ana (BCM)Copper Canyon (CPY)

Moly Brook (TJS) Kerr-Sulphurets (SEA)

Drill results 4 news factors

1. Grades vs. Lengths vs. Depths

High grades are good but a) is there volume?, is it deep?, how long of intervals?

Gross size of system – giants are very rare, trades are on results and grades

2. Grades that investors should look for when reviewing stocks:1% Cu, 2% Ni, 1 g/t Gold, PGM, 300 g/t Ag, 0.1% Mo, 0.1% U308Think about the $ value of the rock. Current metal prices times

the concentration.

9

3. Drilling assays –Core has more data, earlier stages and deposit type

4. Spacing of drilling results – see if there is a map on the website, where are the new holes relative to earlier results

10

Drill results 4 news factors

District play – scale potential

Metallurgy

The % metal is going to be extractable

Not just the sexy assay number in the P.R.

Minerals, elements = good and bad

Analysts help at this stage and into the engineering stages

12

Examples- on the news the stock jumps

Appleton (AEX), Ventana (VEN), Keegan (KGN), Serengeti (SIR),

13

Conclusions

1. Size potential, location, value-meters2. Graphics – maps and sections on website to

see where the numbers are coming from3. Deposit types 4. Stage of project (leverage, risk)5. Ask experts, due diligence

14

“John-Mark’s Geotutorial Video”

YouTube Video- released July 1st, 2009- field geology- covers sampling methods- better understand press releases

Email info@rivres.com to Alex Mason about questions you’d like to see covered from the resource investor or geologic field perspective?

15