Resource Stock Update - V14 #5.5  Potash - PON, GEA, HYLK - June, 5, 2008

PO Box 1020  Owen Sound, Ontario, Canada   N4K 6H6

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Potash North              TSXV:PON                           Recent Price C$2.05
Entry Price $1.35                     Opinion - buy on weakness near $1.80

I hope everyone got a position in this stock early on Wednesday as I suggested. The stock traded big
volume of over 6 million shares that day and opened at $1.40 and traded down as low as $1.16 in the
morning, half way between is $1.28. I will pick $1.35 as our entry price as this is the average
between $1.16 and $1.54 - closing price.

The stock already hit my near term target of $2.00 today and I now believe that Potash North may
trade at a premium to most potash juniors and certainly above the average for a few reasons

Potash North is focused exclusively on the exploration, evaluation and potential development of 2
subsurface potash permit application areas totaling 185,000 acres in the Saskatchewan Potash Basin.
The permit application areas are near the two largest Potash Mines in the world with existing rail,
electrical grids and highways.

Immediately adjacent to Potash Corp of Saskatchewan Esterhazy operations – the largest potash
producing facility in the world

Two select drill intercepts yielded encouraging potash grades at depths similar to Potash Corp. of
Saskatchewan’s Esterhazy Operation (Largest Potash Mine in the World)

The stock has attracted a lot of institutional interest because Potash North's backers include the
high-profile mining promoters Robert Friedland and Lukas Lundin. "People are going be paying big
money for these situations," said Craig Angus, a gold industry veteran who has been named president
and chief executive officer of the new venture.

I would still be a buyer of the stock on any pull back or weakness towards $1.80

http://www.potashnorth.com

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

Contact :Arlen Hansen, Kin Communications Inc.
Call 604-684-6730
Toll Free: 1-866-684-6730

Gold Eagle   TSX:GEA                      Recent Price C$7.50
Entry Price $4.75                        Opinion - strong buy

Gold Eagle released a resource estimate of between 9 and 13 million ounces of gold. For simple math,
lets say 10 million ounces. GEA has about 100 million shares out, so at $7.50 the market is valuing
this at $75 per ounce and $65 per ounce if you subtract GEA's $100 million plus cash on hand.

From what I know, the deposit is too deep to calculate a 43-101 resource, because the drill hole
location cannot be accurate enough, it can wander too far in this kind of depth. That does not mean
the gold resource is not a deposit or economic, quite the contrary. This deposit is huge, very high
grade and located in a prolific mining belt next to past producing mines and current mines that are
among the lowest cost producers in the world. The stock should be valued at least twice as high at
$150 per ounce, or more.

GEA will have to do underground exploration to prove this up, that is their intent and they have the
cash. By the time this is complete, within the next year or so we will be looking at a $20 stock or
better.

I would not be surprised to see this at 15 million ounces, valued at over $200 per ounce for a stock
price of $60.

At current prices, it is also a strong technical point on the chart to buy, see below.

This stock should be in every gold portfolio - it is currently the best gold discovery since the
gold bull market began in 2002

Following is details of the news release last week

Gold Eagle Mines  released an exploration target potential for the Bruce channel which has been
prepared by Peter George, PGeo, of Geoex Ltd. In Mr. George's opinion, the exploration target
potential of the Bruce channel, based on the drilling completed to the end of 2007, is 14.1 million
tonnes to 16.5 million tonnes grading between 20 grams gold per tonne to 25 grams gold per tonne,
yielding an in situ potential of between 9.0 million to 13.3 million ounces of gold.

Along the Bruce channel, at approximately 800 metres below surface, lies the Bruce channel discovery
mineralized envelope. This mineralized envelope, which remains open in all directions, is currently
estimated to extend a minimum of 1,100 metres vertically with a horizontal footprint of
approximately 720 metres northeast-southwest and 450 metres northwest-southeast.

The author's opinions on the geological potential of the Bruce channel are based upon a thorough
review of drilling completed along the Bruce channel, which consisted of 165 drill holes and wedges
totalling approximately 103,708 metres completed to year-end 2007, and 329 significant composited
assay intervals developed by the Author.

Based on the Author's composite assay database, 100% of the composites resulted in an average grade
of 9.0 grams gold per tonne, indicating potential for 14.1 million tonnes to 16.5 million tonnes
containing between 4.1 million to 4.7 million ounces of gold. Based on the Author's composite assay
database, the upper 50% of the composites resulted in an average grade of 16.8 grams gold per tonne,
indicating potential for 7.4 million tonnes to 8.5 million tonnes containing between 4.0 million to
4.6 million ounces of gold.

In the Author's experience, reconciliation of surface exploration drill holes with underground bulk
samples and stope production data generally indicates that wide-spaced exploration drill holes
understate both the grade and width of mineralized structures by factors of 100% to 200%. The Author
therefore concludes that the composite assay database indicates geological potential for an average
grade in the 18 to 27 grams gold per tonne range.

The Bruce channel mineralization is considered to be the down-plunge extension of the past-producing
Cochenour Willans ore body, which is projected to enter the north boundary of the property at a
depth of approximately 700 metres below surface. The Cochenour Willans mine produced approximately
1.2 million ounces of gold from 2 million tonnes of ore at a recovered grade of 18.5 grams gold per
tonne. Allowing for 15% mine dilution and 95% mill recovery, this indicates an in situ grade of
approximately 22.9 grams gold per tonne.

Recognizing the limitations of assessing the grade of Archean lode gold deposits based solely on
drill hole data, the Author considers the current drill exploration program has had a higher than
average hit ratio in terms of "significant intersections". This conclusion is based on Rogers (1982)
who noted that at the Dome mine in Timmins, in areas that were ultimately mined, 40% to 60% of holes
completed through multi-vein gold structures and 50% to 80% of holes completed through single vein
structures failed to return any gold values in excess of 1.7 grams per tonne.

In the Author's opinion, these factors must be taken into consideration when evaluating the
significance of surface drilling results as, "the role of drilling is paramount in the success or
failure of 'making a mine' however, drill results are often misleading when consideration is given
only to the economic value of the drill core assays themselves." (Rogers 1982).

Therefore, the Author believes that it is reasonable to determine the in situ gold target potential
of the Bruce channel based upon average grades in the 20 to 25 grams gold per tonne range that
straddles the average grade of the up-plunge Cochenour Willans ore body.

In conclusion, the Author's opinion is that the exploration target potential of the Bruce channel,
based on the drilling completed to the end of 2007, is 14.1 million tonnes to 16.5 million tonnes
grading between 20 grams gold per tonne to 25 grams gold per tonne, yielding an in situ potential of
between 9.0 million to 13.3 million ounces of gold.

The potential quantity and grade estimates presented herein are conceptual in nature, there has been
insufficient exploration to define a "mineral Resource" as defined in NI 43-101, and it is uncertain
if further exploration will result in the target being delineated as a mineral Resource.

Disclosure of the potential quantity and grade of a potential mineral deposit that is to be the
target of further exploration is permitted under Sections 2.3(2) and 2.3(3) of National Instrument
43-101 ("NI 43-101") provided that the necessary cautionary language is appended to any reference to
the potential target estimate, and the basis for determining the potential target is clearly stated.

In the Author's opinion current drilling on the property is too wide-spaced to enable a NI 43-101
compliant resource estimate. However, visual inspection of drill sections has given the Author
confidence that there is a strong apparent structural trend that future surface drilling,
underground drilling and underground development will demonstrate to have continuity.

stock chart

You can see from the chart that it is trading at the 200 day moving average, that has provided
support before and at the bottom of the bollinger bands. It is also at the bottom of its recent
trading range and a level where it bottomed at in February and April

Tel.:(416) 368-3949

Website  - http://www.goldeaglemines.com

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

Hylake Gold      CNQ:HYLK Frankfurt:HYK Pinks:HYLKF      Recent Price $0.40
Entry Price $0.70                                             Opinion - strong buy

Hylake's properties are right on strike and trend with Gold Eagle. Hylake has been getting high
grade drill results near surface and has three past producing mines on their properties.

These are the reasons and the cheap price is why I see this stock as such a strong buy

I don't know how much longer these gold/silver stocks are going to stay at depressed prices, but my
bet is not much longer.

Do not be surprised to see a strong move upwards over the summer when it is least expected

- http://www.hylake.com

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

Tel.  416-203-9181

(c) Copyright 2008, Struther's Resource Stock Report

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