Resource Stock Update - V15 #4.1 - Gold, OK, PZG, GGI, FR, CLH, MFL, SNG      Feb. 19, 2009

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

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Gold Chart
http://futures.tradingcharts.com/chart/DG/W

The last few days, gold has moved up into the $970 range. We can see on this weekly chart that we
have broke through resistance around $920 where I thought we might have seen a correction earlier.
There is little doubt now that gold is going to test its previous high over $1,000. We might then
see a pullback, but gold keeps surprising on the upside, so maybe it will go through. What worries
me now is how bullish everyone is sounding and a good correction would not be a surprise and healthy
market action.

As we get over $1,000, I will be suggesting part profits in some of our gold stocks, move up
stop/losses and maybe suggest a hedge, an ETF of some sort, so stay tuned.

More and more of our stocks continue to rally and recover. I am now seeing some of the junior
exploration stocks moving up off the floor and I am going to look at a few, that we might average
down.

There is still good bargains out there and I point out a couple below and will continue to do so on
a weekly basis. Eventually all these advanced juniors will see substantial price appreciation. The
major gold companies have all done equity raises and are loaded with cash, very soon we are going to
see a rash of buy out and merger activity and like every year, our list will see several stocks
bought out at big premiums to their current price.

The only sector in the market where money is pouring into - is precious metals and it is the only
sector that has been performing in this financial crisis. And it has a lot of room to go a lot
higher!!!

Some of our picks that seen big jumps in the last few days Orko Silver, Coral Gold, Minefinders, all three I suggested buying and/or averaging down at much lower prices.

I will continue to add stop/loss levels to more and more of our picks as they move up, so we can
protect gains and limit losses.

Coral has jumped almost 600% from my bottom updates. I hope many of you bought it based on my
shopping list update at $0.11 or my December update at $0.14. The stock is now $0.81 I am adding a
stop/loss at $0.55

Orko Silver TSXV:OK                Recent Price $0.80
Entry Price  $0.75                     Opinion -  hold

Orko released the latest resource estimate for its La Preciosa silver deposit located in Durango,
Mexico. This independent resource estimate has been completed by Mine Development Associates (MDA)
of Reno, Nev. MDA has stated that the La Preciosa deposit now comprises 47-per-cent indicated
resources and 53-per-cent inferred resources. The current resource estimate is based on all of
Orko's drilling, including the 2008 drilling of an additional 205 holes (79,021 metres).

The previous resource was 103.2 million ounces silver equivalent.

So Orko has now increased the total resource to just over 146,000,000 silver equivalent ounces

                     AgEq     Ag      Silver    Au     Gold      AgEq
Category      Tonnes  g/t     g/t     ounces   g/t    ounces    ounces
Indicated 10,637,000  201     185  63,230,000  0.27   94,000   68,870,000
Inferred  12,087,000  200     185  71,754,000  0.25   97,000   77,574,000
                                   ----------        -------   ----------
Total                             134,984,000        191,000  146,444,000

This was a nice improvement, an increase of 43 million ounces of silver. There is very little gold,
mostly silver. They calculated the silver equivalent at 60 to 1 ratio, so the equivalent gold would
be 146M/60 or about 2.44 million ounces gold equivalent, almost as big as Paramount's resource.

Orko has 107 million shares out and at $C0.80 has a market cap of C$85.6 million or US$68 million so
about US$28/ounce of gold in the ground. This is about the average I mentioned the other day and as
I said I expect valuations to recover back to at least $50/ounce in the ground and probably higher,
so we are looking at a good double in the stock, back to its old highs closer to $2.00

Currently there seems to be willing sellers around $0.80, noticeably someone out of UBS today. The
chart does show a resistance area around $0.80 from the gyration on the way down in September. Many
junior mining stocks have similar charts. Same chart with Paramount below with a resistance area
around $0.75 from September and First Majestic below with resistance around $2.75 from last
September

Gary Cope Tel: 604-684-4691

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

Paramount   TSX/NY:PZG                  Recent Price C$0.72
Entry Price C$0.60                            Opinion - buy

                       and

Garibaldi  TSXV:GGI                               Recent Price $0.11
Entry Price C$0.57             Opinion - buy, average down

PZG stock has been recovering slower than some, but looks like some consolidation of recent gains
and ready to go higher.

Paramount put out some excellent news yesterday, Basically an agreement with Garibaldi to acquire an additional 54,000 hectares of mining concessions adjacent to its San Miguel project in Mexico. Paramount has entered two concurrent transactions including the acquisition of all of the shares of
Magnetic Resources Inc., a private Canadian corporation and the purchase of the Temoris options
owned by Garibaldi Resources Corp.

Paramount has made an initial cash payment of $400,000 to Garibaldi, and will issue six million
common shares on closing with fixed release dates. Paramount to acquire all of the shares of
Magnetic Resources and its Mexican subsidiary by way of stock consideration of 1.35 million common
shares of Paramount, thereby extinguishing all future option and royalty payments.

The new position map outlines the 140,000 hectares now controlled by Paramount and dubbed the
Guazapares mining district. Of particular note are the numerous new target and prospective areas as well as the regional fault systems.

As part of the acquisition of Magnetic Resources, Paramount also acquires title to the underlying
concessions forming the Morelos gold and silver project currently optioned to Garibaldi. The Morelos
property covers a historic mining area about 25 kilometres southeast of Goldcorp's El Sauzal mine
and 30 kilometres south of Mag Silver's Batopilas project.

Finally, Paramount also acquires the 2-per-cent net smelter return held by Magnetic Resources over
Garibaldi's Iris project near the Pinos Altos and Ocampo mines

"We are excited to have achieved a significant objective in the business plan of Paramount Gold and
Silver Corp., which is the acquisition of 100-per-cent interest in the massive Temoris mining
concessions," stated Christopher Crupi, chief executive officer of Paramount Gold and Silver Corp.

I think we will see a lot more of this, consolidation, acquisition and mergers in the junior mining
market. This makes Paramount more attractive as a take over target. They control a massive land
position on one of the strongest gold and silver belts in the world.

They now completely surround Couer D'Alene's Palmerajo project that was acquired for $1.1 billion. PZG has a gold resource of 2.7 million ozs gold equivalent. With further drilling we could easily see this resource double and now with all the additional ground and targets, Paramount could easily discover 2 or 3 more San Miguels down the road.

There is a lot of interest in the project by miners and numerous companies have been visiting the
project in the past month or so. Paramount continues to make the moves to consolidate and gain
control of all the ground and 100% ownership, paving the way for a buy out. More than likely, any
suitor would want their core San miguel asset allowing Paramount to spin out some or most of these
new prospective land holdings into a new junior company.

At C$0.75, PZG has a market cap of just (61M x 0.75)  C$45.75 million or US$36.4 million valuing
their gold resource at just $13.50 per ounce in the ground. This is about half of what the average
is now. Just a move to the average valuation is a double in the stock and if it recovers with the
rest of the juniors to $50/ounce, then about a double again. I like buying stocks with cheap
valuations, we don't know when, but at some point they move closer to fair valuation and you can
make big profits, same story with Coral below.

Investor Relations: Chris Halkai
Tel: 1-613-226-9881
Toll-free: 1-866-481-2233

Website - http://www.paramountgold.com

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

Garibaldi  TSXV:GGI

The deal is also of benefit to Garibaldi. Garibaldi also has a large land position in Mexico and is
trying to consolidate it down to the most prospective targets. It did not cost Garibaldi a lot to
acquire this Temmorris ground and they only did minimal work to advance the property. Six million
shares of Paramount at C$0.75 is $4.5 million and $400,000 so pretty much a $5 million value.

At $0.11 Garibaldi is only valued at C$4.7 million, just barely reflecting the value of this deal
and all their other ground is being valued at nothing.

I think now is a good time to average down in the stock, its has bounced off of its $0.06 bottom and
it could easily recover to at least $0.30. It could be thin and hard to buy at these levels, but
with some patience, I think we can average down. I would not chase the stock above $0.15. If we can
buy at $0.13 or so, we can average down our 0.57 entry price to $0.21

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

First Majestic   TSX:FR                   Recent Price C$2.28
Entry Price $2.25                      Opinion - hold
Stop/loss now moved up to $1.80

FR was doing quite well, moving up to $3.00 from its bottom around $3.00 where it was into its upper
resistance level from last September. Then they announced at $17 million financing at $2.50 and the
stock dropped about $0.50 on that news. I think this will be a temporary pull back, we will see some
more consolidation and eventually a break through the 2.75 to 3.00 resistance area.

FR's resources and production continues to grow, fundamentally they are doing just great.

They increased their reserve/resources by 19.79% at their La Parrilla mine. Total reserves/resources have reached 88.75 million equivalent ounces of silver.

At San Martin Total proven and probable reserves have increased by 41.83%, while total measured and indicated resources declined by 51.55% due to the upgrading of those resources to reserves and total inferred resources have increased by 110.94 per cent. Total resources are now about 63 million ounces silver.

First Majestic Silver Corp.'s production in the fourth quarter ended Dec. 31, 2008, increased to
1,070,903 equivalent ounces of silver, representing a 27-per-cent increase over the prior quarter
production and an increase of 6 per cent over the same quarter in the prior year.

Phone: 604.688.3033,  Toll Free: 1.866.529.2807

http://www.firstmajestic.com/

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

Coral Gold    TSXV:CLH                        Recent Price C$0.81
Entry Price $0.30                         Opinion - hold
Stop/loss 0.55

Since we averaged down or bought Coral, it has done awesome and popped in price over the last few days from 0.41 to 0.84

The stock has been going up since they put out drill news about 2 weeks ago. Coral reported their
reverse circulation drilling program has been completed at the Robertson property in Nevada's
Crescent Valley.

The program totaled 22,835 feet of drilling in 33 vertical holes, which ranged in depth from 500 to
1,200 feet. The drill program has partially extended the areas of mineralization in several zones.

The gold deposit at the Robertson property (based on a price of $600 (U.S.) per ounce) has a total
inferred resource of 2.3 million ounces. This recent drilling will add to that number.

At C$0.85 Coral has a market cap of just C$21.25 million or US $17 million. So their 2.3 million
ounces is only valued at US$7 per ounce, well below the average and way too cheap in my opinion.

We could easily see the stock recover to its highs of last year over $1.00.

I am adding a stop/loss on the stock now at $0.55

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

Minefinders Corp.  TSX:MFL   Amex:MFN    Recent Price - C$7.16
Entry Price $5.59
Stop/loss moved up to $5.25
Warrants MFL.WT  Recent Price - C$3.00, Entry Price $1.80 - hold

I suggested buying the Warrants MFL.wt on a dip to $1.80 or less and we seen that dip down in
January, so I will add the warrants to our selection list at $1.80. The warrants are now around
$3.00 and I will sell these off when the stock gets up to $8 or $9.

http://www.minefinders.com/

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

Superior Energy           TSX:SNG         Recent Price C$0.45
Entry Price       Opinion - sold $2.87, stopped out at $1.00
Stop/loss $1.00

The stock took a hit when that debt word appeared. They have been doing awesome - discovering huge
amounts of Nat Gas that has been dropping in price, but when news surfaced that their bank called in
their $45 million credit facility, the stock dropped.

They have until Feb. 23rd to pay $45 million and are negotiating an extension. I don't know how it
will work out, but I would bet that someone is going to get an interest in a large Nat Gas discovery
very cheaply.

Fortunately we took part profits last year at $4.75 and the stop loss helped to get out at a little
better price. So I will list it as sold at $2.87, the average of $1.00 and $4.75.

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

(c) Copyright 2009, Struther's Resource Stock Report

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