Malcolm Bucholtz B.Sc, MBA Analyst

Trading Note

The North Shore – Another Rossing in the Making?

Mention Uranium exploration to someone and the word Saskatchewan is sure to be uttered at some point in the conversation. But – there is a part of Canada that is poised to possibly eclipse Saskatchewan and its exploration feats. The North Shore of the St. Lawrence River in eastern Quebec is fast becoming recognized for its potential to host some serious deposits of lower grade uranium mineralization. In fact, people in the know are now starting to compare this North Shore area to the famed and fabled Rossing Deposit which has been the centerpiece of uranium mining in the African nation of Namibia. Excitement is building in Quebec and Uracan Resources is right in the thick of it.

SS The Double S Zone SS

The focus of Uracan's efforts over the past year has been its 1000 sq. km North Shore Uranium property and in particular the Double S Zone. A total of 51 drill holes (13,555 meters) were drilled up to the end of 2007 and the assay data from these holes has now been crunched to produce a 43-101 compliant inferred resource. At a cutoff grade of 0.009%, calculations show an inferred resource of 20 million pounds of uranium mineralization. Since the start of 2008, drilling has been ongoing and more mineralization has been found. A further 10,000 meters will be drilled as part of the Summer program which has now started. Once this data is factored into the mix later this year, I fully expect to see a further increase in the size of this resource.

Uracan – Do the Math

Right now, Uracan has a basic share structure of 67 million shares. At current prices this equates to a market cap of $26.8 million. Uranium deposits in-situ these days are typically valued at about 1/10th of the uranium spot price. So, for argument sake let's say that in-situ uranium is worth $6.40 /pound. With a resource of 20 million pounds this works out to $128 million or $1.90 a share. Definitely a far cry from the current prices of 40 cents where Uracan can be bought today which is yet another testament to just how badly raked over these junior resource markets have become.

Here at The Market Traders we are going to be watching Uracan with great interest. If Oil at $140 has got you rattled and is keeping you up at night and if you believe like we do that uranium has a brilliant future as an energy source then we suggest that you buy some shares in Uracan at these levels. The North Shore in eastern Quebec may be getting set to shine and Uracan is right at the heart of it all.

For further information, be sure to visit the Uracan website at www.uracanresources.com or call Keith Schaefer at Vanguard Shareholder Solutions at 604-608-0824

The Commodity Supercycle Report (a publication of Brookhaven Advisors LLC) is protected by copyright law. Corporations, websites, newsletters or individuals seeking to copy, distribute or otherwise disseminate the contents of this report or any of our other writings in part or in whole are welcome to do so upon obtaining our prior written permission and paying a reproduction fee of US$500. Anyone seeking to avoid doing so is 'itchin for a nasty fight. The information contained herein does not necessarily constitute a solicitation to buy or sell. Consult with your financial advisor to ensure any securities mentioned herein meet with your investment objectives. Principals of Brookhaven Advisors may or may not hold any securities mentioned herein.