Analyst & Media Reports

Capital Gold Corporation is a junior producer of gold and silver with principal assets in Mexico. The company is currently producing gold at a rate of 55,000 oz per year entirely from its wholly owned El Chanate mine in northwestern Sonora, Mexico. Based on the most current re-serve estimate of 39.5 million tonnes at 0.66 g/t (less draw downs) and at current production levels, the mine has a remaining life of approximately 8.5 years. Our cash flow model uses a base case long term gold price of $750/oz and estimates a life-of-mine (“LOM”) total cash cost of just over $360/oz. Our cash flow model shows a base case project NPV5% of US$128 million. We have not ascribed any value for a potential expansion from 55,000 oz to 70,000 oz of annual production. Any such expansion scenario would change the cost structure significantly in the later years of the mine life due to an increase in strip ratios but would nonetheless speed up cash flows in the early years, starting as early as Q1 2010.

Paramount Gold and Silver Corp. (AMEX, TSX: PZG) is an aggressive exploration company operating in the prolific and historic Sierra Madre silver-gold belt near Chihuahua, Mexico. The Company has established a 35.8 million silver equivalent resource and is currently about half way through a 50,000 meter drill program. Catalysts for appreciation in the next 12 months include:

Other companies missed it, but not Miguel Heredia. He has strong geological legs.

We’ve been hearing increasing reports of the escalation of the drug war in Mexico, a serious threat to the security of mining operations in one of our favorite mining jurisdictions. Worse, some investors are – wisely, I think – concerned that in the face of falling oil revenue, Mexico may resort to higher taxes to bolster domestic spending and mining seems an obvious target.

Castle Gold Corp is a junior producer of gold with principal assets in Mexico and Guatamala. The company is currently producing gold at an estimated rate of over 36,000 ounces per year; with attributable production of 31,500 oz per year from the El Castillo mine (100%) in Mexico and 6,000 oz per year from El Sastre (50%). Based on the most current resource and reserve estimates and at the 40,000oz/year production level El Castillo has an estimated remaining mine life of around 12 years. Based on a long term gold price of $750/oz and life-of-mine (“LOM”) total cash cost of $475/oz, our cash flow model shows a base case project NPV8% of US$52 million. We have not ascribed any value for a potential expansion from 40,000 oz to 50,000 oz of annual production in this valuation.

TICKER: PEZ:TSX; PEZGF:OTCBB; P5E:FSE

DESCRIPTION: Pediment Gold Corp. has one discovery project and two brown-fields projects. The discovery project, San Antonio, hosts a Measured and Indicated Resource of 1.53 million oz gold and inferred 111,000 oz of gold; La Colorada hosts a historical gold resource and an underground high-grade vein potential. The company has a robust treasury of $15million and no debt, and has a solid and highly experienced management team.

The United Mexican States, or Mexico as the country is more commonly referred to, is not the place that many common stereotypes portray it to be. Economically, Mexico is a powerhouse and the International Monetary Fund ranks it as the 11th largest economy in the world by GDP. With an estimated population of 109 million it is also the 11th most populous country and covers a land area of nearly 2 million square kilometres, ranking it as the 14th largest independent nation in the world.