Malcolm Bucholtz B.Sc, MBA Analyst

Trading Note

The Golden Highway

The financial markets in Canada are filled with companies hot in pursuit of Gold. So much so in fact, investors can quickly lose sight of just where to focus their efforts. At The Market Traders there is one area in Canada that we feel investors should direct their attention to and that is the Abitibi Greenstone Belt which trends in an east-west direction and is intersected by the Ontario-Quebec provincial border. This geological formation is truly prolific thanks in large measure to a geological fault zone running through the area called the Larder Lake-Cadillac Break. Just for fun sometime, approach a person familiar with Gold in Canada and mention the Larder Lake-Cadillac Break. Watch the smile that crosses that person's face and you will know what I am talking about. In fact it could well be argued that the Abitibi Greenstone Belt is almost like a Golden Highway. The map on the following page (taken from www.niogold.com) shows the orientation of this belt and the documented historical production that has come out of the area.

One of the companies that we have been following for some time now is Niogold. I first met company President Michael Iverson in San Francisco back in November 2007 at a lunch event (hosted by well known financial market commentator Al Korelin) at Tommy Toy's Chinese Restaurant. I was impressed with the energy exuded by Michael Iverson and his Vice President Rock LeFrancois and I have been keeping an eye on Niogold ever since.

1 Million Ounce Objective

Niogold has assembled an excellent portfolio of property in the area around the Malartic and Val D'Or gold camps. To give you an example of how potent this area is, the Malartic gold camp has historical production of some 8.9 million ounces of Gold.

One of Niogold's land packages is the Camflo West Property which covers 3825 hectares. This acreage covers a 7 kilometer stretch of land that Niogold feels is under-explored plus another 5 kilometer stretch of unexplored land adjacent to the past producing Camflo Mine. East of the Camflo Property, Niogold has assembled a 973 hectare package called the Marban Block. Niogold has now compiled the historical mine and drilling data on this property and completed 23,000 meters of drilling to confirm the historical resources. A 43-101 compliant resource estimate now shows an indicated resource of 72,000 ounces Gold along with an inferred resource of 270,000 ounces. 2008 will see a further 25,000 meters of drilling to expand this resource estimate. Northwest of the Marban Block, Niogold has now assembled 1300 hectares on what it calls the Heva Property. The geological features of the Marban Block appear to project right through the Heva Property and future drilling will be designed to further delineate this. In 2007 Niogold entered into a joint venture arrangement with Quebec based firm Ressources Maxima to acquire a 100% interest in an early stage property called Pump Lake. Geophysical work to date along with geochem surveys has denoted geology with the potential to host an Iron Oxide Copper Gold formation. Surface rock chip samples have also returned significant values of uranium, niobium and rare earth elements. 2008 will see further work on this highly prospective property.

Recent Results

Results are now starting to come in on the planned 25,000 meters of drilling on the Marban Block property and they are looking real good. A press release issued on May 13 detailed the results on 3 holes drilled west of the former producing Marban Mine. When I see assays like 9.45 grams/tonne over 2.3 meters and even 23.4 grams/tonne over 1.1 meters I tend to sit up and pay attention. With over 20 holes drilled as of the date of this release, there will be plenty more news in the weeks to come so stay tuned.

Niogold – Initiating Coverage

342,000 ounces….on its way to its goal of 1 million ounces is how we The Market Traders like to think of Niogold. We are so far very impressed with the accomplishments of Michael Iverson and Rock LeFrancois. Given Niogold's positioning in one of Canada's most prolific geological belts we have no doubt that Niogold will not only meet its stated goal but exceed it as well. We are initiating coverage of Niogold with a buy rating. Use any market weakness or volatility to acquire a position in the company.

For US based readers of this report, it is our understanding that Niogold is making a 20F submission to US regulators so as to obtain an OTCBB listing. At present, Niogold has 61.5 million shares outstanding for a market cap of $11.68 million. In terms of dollars of market cap per ounce of resource in-situ this equates to $34. Yet another truly sad example of just how beaten down this junior sector has become. As you start to build your position in Niogold, you can obtain further information from the company website at www.niogold.com. As Niogold makes further progress towards its goal of 1 million ounces of Gold resource, we feel you will be well rewarded.