Resource Stock Update - V13 #19.2, - Markets, PZG, MSM, SNS, PIK, FR,
OK, NMB, ELR, ARU   -     Dec., 2, 2007

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I have received some emails from some of you on various stocks, but it is really the market
environment that is the main problem

While we have seen several corrections in this commodity bull market in the past 5 years and quite often there can be weakness in December with tax loss selling, this current correction is kind of bizarre and has been the most anguishing of all. But a correction is really all it is.

What is quite frustrating is seeing gold and oil roar up to strong new highs and most of the related
stocks don't go up with it and what is worse they have actually gone down and some quite
considerable. Many did not follow gold and oil higher, but have followed them lower on the
correction, although the new trading range for gold and oil is still a lot higher. Many of you may
see it with a few stocks you hold, but this is very broad based. On Wednesday for example 5 stocks
on the TSX hit new highs while 100 hit new lows.

All I can say is to stay tough and be patient. It makes no sense to sell now at what is a bottom or
very close to one. Markets occasionally become disconnected with fundamentals and move to extremes
and this is what we have now, exaggerated by tax loss selling. The good news is we have seen the
worse or close to it and some others that have long successful track records agree.

"We think there are some great opportunities in gold," says Evy Hambro, managing director at
Blackrock. "The fundamentals have never been better. While demand is incredible, there is continued
falling productivity, with little reinvestment in capacity and little exploration success, and
supply from the central banks is tight because for the second year in a row, they have sold less
gold than they are allowed to. We're focusing on investing in companies where there is growth in
exploration and avoiding large historical producers with higher costs as many of their mines are in
last phase with higher operating costs and severe declines in grade."

As you can see Hambro is also quite focused on companies focused on exploration where growth is
expected, like many stocks in our portfolio, like PZG, SNS, AGQ, MSM, PIK, OK, NMB, ER, ELR, PTM,
XRC, GEA to name a handful.

I have seen many tax loss selling seasons and they seem to peak and start dwindling off around
December 5th to 10th, so this week should see the brunt of tax loss selling end, and a bottom made
in numerous stocks.

Investors all also panicking in some cases when they hit certain lows and bail out knocking prices
down further.

However, what this causes is powerful rallies from these lows in late December, January and
February. As selling pressure subsides many stocks pop up from these over sold positions. With New Year optimism and the fact that many mining juniors hold their exploration news to after the
holidays into January we normally see good market rallies in January - February with the junior
explorers. This year is no different and in fact could be much more explosive to the upside as
markets come back in line with fundamentals, meaning much higher metal and energy prices.

I am going to comment on a few stocks that some of you have emailed about and ones that are the most
over sold and good buys.

Paramount Gold/Silver,    TSX/AMEX:  PZG       Recent Price - C$1.81
Entry Price  $1.00                         Opinion - strong buy

Somebody hit the panic button on Friday and dumped their stock, it was pretty indiscretional and
strong selling. Whenever we see this stock get down to $2.00 and especially below, it is an awesome
buy.

The same thing happened last December, one day it dropped to $1.82 and bounced from there, rallying
to a high of $3.20 by March.

I spoke to management and there is lots of drill news in the pipeline and I did hear they have some
very good results coming from their first exploration round on the huge Andrea concession. We could
see news here in the next week or two.

Paramount is going prove up 100 million ounces silver or so and 200 million or so and maybe much
more, eventually this stock will go way higher, no matter what the price of silver or gold is. I
seen it happen dozens of times before and this stock will be no different, what we don't know is the
exact time frame and path to these much higher prices.

http://www.stockhouse.com/comp_info.asp?symbol=PZG&table=LIST

Mexican Silver Mines    TSXV:MSM             Recent Price C$0.60
Entry Price  $0.95                           Opinion - buy

MSM has been sliding in the past month and hit new all time lows for the stock last week. It has not
been trading long and does not have a lot of chart history and is the only reason I rated it a 'buy'
instead of 'strong buy'.

MSM completed a letter of intent (LOI) to acquire a 100% interest in the Voladora mine located in
the municipality of Lampazos, Nuevo Leon, northeastern Mexico. The Voladora mine, which covers an
area of 272 hectares, is situated two kilometres to the northwest of Mexican Silver's La Iguana
mine.

Just the sign of the times, good news, but the market didn't care and still drove the stock down

http://www.stockhouse.com/comp_info.asp?symbol=MSM&table=LIST

SNS Silver Corp.             TSXV:SNS            Recent Price $1.03
Entry Price  $1.60                         Opinion - buy on weakness

SNS has been stuck in a trading range between $0.90 and $1.35  for several months now and despite
good drill news, has not been able to move higher. It is getting close to the bottom of its range,
so a drop near $0.90 would be a buying opportunity

SNS completed its 2007 phase 1 surface exploration drill program, with a total of 36 NQ core holes
and more than 41,000 feet of drilling. We should see more of these results and the drills will now
go under ground and I expect will be successful and prove up a significant block of silver resources

http://www.stockhouse.com/comp_info.asp?symbol=SNS&table=LIST

Peak Gold,   TSXV:PIK                   Recent Price C$0.45
Entry Price $0.72             Opinion - strong buy, average down

They just closed a $110 million financing at $0.75 while the stock was trading at $0.50.
Disappointment on no acquisitions at this point in time is probably the reason for the lack of
interest, but this management team will grow this into quite a company, the stock is an excellent
buy at these prices.

http://www.stockhouse.com/comp_info.asp?symbol=PIK&table=LIST

          ***********************************

I get very few questions if stocks are going higher, but

Not all of our stocks are going down and some are going up and quite a lot. We have also seen 10 of our picks bought out for high prices this year, a new record for take overs on our list.

          ****************************************

First Majestic - FR did hit $5.00 in November, up from our $3.65 buy price and is still at $4.20,
continue to hold

http://www.stockhouse.com/comp_info.asp?symbol=FR&table=LIST

Exeter - XRC has climbed steady in the past few months from around $2.50 to a high of $5.00 last
week, you can continue to hold, but we are up 700% now from our $0.64 buy level and it would not
hurt to take part profits to buy some bargains

http://www.stockhouse.com/comp_info.asp?symbol=XRC&table=LIST

Orko Silver - OK has run from our $1.22 buy level to a high of $2.10 in November, continue to hold

http://www.stockhouse.com/comp_info.asp?symbol=OK&table=LIST

Aurelian Resources            TSXV:ARU            Recent Price C$7.55
Entry Price $5.81                     Opinion - hold,  buy below $7.00

The stock hit a new high of 10.25 in November but has since come back down hard even though drill
results continue excellent for the Fruta Del Norte (FDN) deposit at the Condor project, in Ecuador.
The results are for step-out holes designed to test the southern and northern extensions of FDN, as
well as infill holes in the central high-grade part of the system, on 50-metre-spaced sections.

The results from the infill holes include 216.6 metres grading 12.85 grams per tonne of gold and
10.5 g/t of silver in CP-07-152. The deposit is now up to almost 14 million ozs gold.

Our speculative Ecuadar plays, DHANOA MINERALS - DHNA and Ormonte - ORR have gotton slaughtered by the Ecuador political situation, while ARU is just to big to ignore it is still receiving a very low
valuation

http://www.stockhouse.com/comp_info.asp?symbol=ARU&table=LIST

Eastern Platinum - ELR has more than a double this year and at $2.72 is still near Novembers high of $2.90, continue to hold.

http://www.stockhouse.com/comp_info.asp?symbol=ELR&table=LIST

Norambec - NMB did jump to $0.65 in November on great drill results but has drifted back in the weak market, continue to hold and buy below $0.45

http://www.stockhouse.com/comp_info.asp?symbol=NMB&table=LIST

Imagine how these will do in a good market and in the New Year.

(c) Copyright 2007, Struther's Resource Stock Report

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