Salman 013111 by palmoni

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									                                                                                                                January 31, 2011


                                              METALS MORNING NOTE
                                          _____________________________________________________________________________________________________



      Metals,
     Minerals &                           Commodity News:
     Materials                               Agricultural Commodities
                                             Rice economics suffering, supply will follow
Disclaimer Note: In accordance with
NASD Rule 2711 and IDA Policy No.            Copper
11, Salman Partners Inc. refers the          Copper spot price rises as LME inventories sink
reader to the end of our research
                                             Fertilizers
report and to our website
(www.salmanpartners.com) for our             Iran again a nitrogen player?
firm’s specific disclosures, policies
and procedures in respect of
                                             Iron Ore
research analysts and research               India starts trading iron ore futures
reports.      With respect to the            Uranium
individual     company       disclosure
requirements, please refer to the            Why stroppy shareholders could be good for uranium markets
specific individual company report
located on our website. This report is
distributed in the U.S. by Salman
Partners (USA) Inc. and was               Company News:
prepared by its Canadian Broker
Dealer affiliate, Salman Partners Inc.       Agrium Inc. (AGU - TSX - Cdn$88.02; Target Cdn$127.00; TOP PICK) – 158.0 M
Please refer to the end of this report       Shares Outstanding
for the disclosure statements,               I: AGU’s sensitivity to a worsening of the situation in Egypt: 6 cents a month
including the Analyst’s Certification.
Analysts employed by non-U.S.                II: Mississippi River silting: advantage Agrium
affiliates are not registered pursuant
to NASD rules.                               Methanex Corporation (MX – TSX - Cdn$27.68; Target Cdn$31.00; HOLD) – 92.7
                                             M Shares Outstanding
Senior Mining Analysts                       Significant Egypt earnings baked in
Raymond Goldie – 416-214-2749
                                             Silvercorp Metals Inc. (SVM – TSX - Cdn$10.71; Target Cdn$13.80; BUY) – 174.6
   rgoldie@salmanpartners.com                M Shares Outstanding
Investment Analysts                          Drilling extends high grade S2 vein at Ying
Mike Plaster – 604-622-5295
                                             Teck Resources Limited (TCK.B svs1 – TSX - Cdn$57.86; Target Cdn$72.00;
   mplaster@salmanpartners.com
                                             BUY) – 580.6 M Shares Outstanding
David West – 604-622-5569
                                             Strike action commences at Elkview mine
   dwest@salmanpartners.com
Jaret Anderson – 416-861-9387
   janderson@salmanpartners.com
                                          Earnings Calendar
Tim Lee – 416-360-5384
   tlee@salmanpartners.com
Ash Guglani – 604-622-5293
   aguglani@salmanpartners.com
Ike Kaja – 416-360-5890
   ikaja@salmanpartners.com
METALS MORNING NOTE
JANUARY 31, 2011


                     C OMMODITY U PDATES
                                                                              Copper                                                                                                                     GOLD             SILVER           PLATINUM                PALLADIUM
                     600,000
                                        Price v. Inventory Level - Last 24 Months
                                                                                                                                                $4.50
                                                                                                                                                                        Spot (US$/Oz)             $1,326.93   $9.82 $27.83      $0.15 $1,785.10   $11.40       $807.00     $9.25
                     500,000                                                                                                                    $4.00                   Futures (US$/Oz)          $1,327.30   $14.40 $27.71     $0.21 $1,786.60   $18.40       $807.90     $9.10
                                                                                                                                                $3.50
                     400,000
                                                                                                                                                           U S $ /lb    12-Month Lease Rates       0.21%             0.70%             0.68%                    0.78%
      T o n n es




                                                                                                                                                $3.00
                     300,000
                                                                                                                                                $2.50
                     200,000
                                                                                                                                                $2.00                   (US$/lb)                    COPPER           LEAD           ZINC          H.G. ALUMINUM        NICKEL
                                                                                                                                                                        LME Cash                 $4.41   $0.08 $1.17     $0.03 $1.06     -         $1.13    $0.01   $12.28 $0.22
                     100,000                                                                                                                    $1.50
                               0                                                                                                                $1.00
                                                                                                                                                                        LME 3 Month              $4.39   $0.06 $1.13     $0.02 $1.07     -         $1.13    $0.01   $12.26 $0.18
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                                                                                                                                                                        LME Inventory (T)      394,025         279,925         710,675          4,521,225           134,040
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                                                                        Inventory             LME Official Closing Price

                                                                                                                                                                        INV. CHANGE (T)         -4,050           900            -250              -3,450             -258
                                                                                   Lead
                                        Price v. Inventory Level - Last 24 Months                                                                                           THERMAL COAL (US$/TON) (28/01/11) AND        ELECTRICITY ($/MW-hr) AND URANIUM AND NITROGEN PRICES
                    200,000                                                                                                                     $1.90
                                                                                                                                                $1.70
                                                                                                                                                                                          FERROALLOYS                                               (28/01/11)
                    150,000                                                                                                                     $1.50
                                                                                                                                                                        NYMEX Thermal Coal          $75.42      $1.67   On-Peak Mid-Columbia Power (US$)        $24.58    $0.16
                                                                                                                                                          U S $ /lb
       Tonnes




                                                                                                                                                $1.30
                    100,000                                                                                                                     $1.10
                                                                                                                                                $0.90                   Eastern US-BSB              $77.70        -     Ontario Energy Price 4:00 PM EST (Cdn$) $31.16    $3.45
                                                                                                                                                                        Cobalt (US$/lb)– LME Spot   $17.92      $0.34   Uranium (US$/lb) - Spot                 $70.00      -
                     50,000                                                                                                                     $0.70
                                                                                                                                                $0.50
                           0                                                                                                                    $0.30
                                                                                                                                                                        Molybdenum (US$/LB) - LME   $17.51        -     Gulf Urea (US$/TON) - Decyfer           $378.00     -
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                                                                    Inventory                LME Official Closing Price


                                                                                                                                                                        COMMODITY NEWS
                                                                                  Zinc
                                       Price v. Inventory Level - Last 24 Months
                     800,000

                     600,000
                                                                                                                                             $2.20
                                                                                                                                             $1.90
                                                                                                                                                                       Agricultural Commodities
                                                                                                                                                                       Rice economics suffering, supply will follow
                                                                                                                                             $1.60
      Tonnes




                                                                                                                                                           U S $ /lb




                     400,000                                                                                                                 $1.30
                                                                                                                                             $1.00
                     200,000

                                                                                                                                                                       Bloomberg reports this morning that “U.S. farmers are planting the fewest acres with
                                                                                                                                             $0.70
                               0                                                                                                             $0.40


                                                                                                                                                                       rice since 1989 just as global demand surpasses production for the first time in four
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                                                                        Inventory             LME Official Closing Price                                               years.” Rice plantings in the U.S. may drop by 25% this year as growers seek to take
                                                                                                                                                                       advantage of more attractive economics available with corn and soybean crops.
                                                                         Aluminum
                                       Price v. Inventory Level - Last 24 Months                                                                                       David Reinbott, an agriculture business specialist at the University of Missouri
                     4,700,000
                     4,200,000
                                                                                                                                              $1.50                    estimates that farmers in his state can earn about US$50 per acre more on soybeans
                                                                                                                                              $1.30
                                                                                                                                                                       and US$100 more per acre on corn than they can on rice. Over the past year, rice
                                                                                                                                                           U S $ /lb




                     3,700,000
      Tonnes




                     3,200,000                                                                                                                $1.10
                     2,700,000
                     2,200,000
                     1,700,000
                                                                                                                                              $0.90
                                                                                                                                              $0.70
                                                                                                                                                                       futures have risen 9%, soybeans and corn are up 50% and 81% respectively.
                     1,200,000
                       700,000                                                                                                                $0.50
                                                                                                                                                                       Rice represents almost 50% of the food budget of the poorest people in the
                                                                                                                                                                       developing world and almost 20% of those people’s total budgets, according to the
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                                                                        Inventory             LME Official Closing Price
                                                                                                                                                                       International Rice Research Institute. Given the incentive farmers now have to
                                                                                                                                                                       focus on corn and soybeans at the expense of rice, we believe this situation deserves
                                                                                Nickel
                                        Price v. Inventory Level - Last 24 Months                                                                                      some attention given the potential impact on the food budgets of a large swathe of
                     180,000
                     160,000                                                                                                            $26.00
                                                                                                                                                                       the population, particularly in Asia.
                     140,000
                     120,000                                                                                                            $21.00
                                                                                                                                                        U S $ /lb
     Tonnes




                     100,000                                                                                                            $16.00
                      80,000
                      60,000
                      40,000
                      20,000
                                                                                                                                        $11.00
                                                                                                                                        $6.00
                                                                                                                                                                       Analyst Coverage: Jaret Anderson, Raymond Goldie
                           0                                                                                                            $1.00
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                                                                        Inventory             LME Official Closing Price




                                                                             Uranium
                                                    Monthly Price - Last 24 Months
   in th e U .S .




        $140
        $120
        $100
         $80
         $60
         $40
   O c U S $ /lb




         $20
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                                                                                                    Source:TradeTech and UxC closing Prices
January 31, 2011                                                                                            Metals Morning Note

  COMMODITY NEWS (CONTINUED)

Copper
Copper spot price rises as LME inventories sink
Bloomberg reports this morning that the spot price for copper on the London Metal Exchange (LME) has risen for a fourth
day “as stockpiles shrank the most in almost 11 months, adding to speculation of rebounding demand in the U.S.” following
Friday’s strong U.S. GDP data. LME copper inventories fell 1%, the most since March 4, mainly in the U.S., which is the
second-biggest consumer of the metal while copper for immediate delivery on the LME recently traded at US$4.41 per
pound.

Analyst Coverage: Raymond Goldie, Ike Kaja




Fertilizers
Iran again a nitrogen player?
In the past week, reports Fertilizer Week America, U.S. Gulf urea (nitrogen) prices are down 3.3% as industry chatter indicates
that Iran may find a way around UN sanctions “and other financial restrictions”, and export some urea.
DAP central Florida (phosphate) and potash prices, FOB Saskatchewan and Vancouver, were unchanged.


                                             Fertilizers                most recent points
                                                                       shown: January 31,
          Prices in U.S. dollars per tonne                                    2011

$1,000

  $800


  $600

  $400


  $200


     $0
          2007                   2008              2009                2010                  2011
                            NITROGEN: urea FOB U.S. Gulf
                            PHOSPHATE: phosphate content of DAP, central Florida
                            POTASH: Interior of North America: coarse fob Sask.

   Source: Green Markets, Fertilizer Week America

Analyst Coverage: Raymond Goldie




                                                                                                                             3
Metals Morning Note                                                                                               January 31, 2011

    COMMODITY NEWS (CONTINUED)

Iron Ore
India starts trading iron ore futures
According to Steelguru.com this morning, India’s Multi Commodity Exchange (MCX) and the Indian Commodity
Exchange (ICEX) launched the world's first iron ore futures (IOF) contract this past Saturday and both exchanges expect
more physical market participants to use their platform “for effective risk management and hedging activities.” ICEX noted
that “trade volumes on [the] first day of trade on ICEX were robust with good participation and liquidity seen in its March
and April contracts.” and "we are sure the IOF contract, the first of its kind in the world, will benefit the industry at large by
giving it a very strong alternative to other products they were using internationally.” The Singapore Mercantile Exchange
is due to launch its iron ore futures contract in Q2 2011 as the exchanges attempt to establish the dominant pricing
benchmark for the seaborne iron ore market, which was worth an estimated US$100 billion in 2010. Iron ore spot prices
remain at record highs with 63.5% Fe Indian fines quoted above US$190 per tonne cfr Main Chinese ports on Friday and
with offers as high as US$192 per tonne.

Analyst Coverage: Ike Kaja




Uranium
Why stroppy shareholders could be good for uranium markets
I: “Go for cash, investors tell Rio, BHP” says the Sydney Morning Herald. “Institutional investors have written to BHP
Billiton and Rio Tinto demanding that they ditch ambitions for 'wasteful mega-deals' and each embark on multibillion-
pound share buyback schemes instead as speculation builds that BHP is lining up another big takeover target.

The shareholders, who have written individually, have asked for commitments from the boards of the mining companies
that they use their strong balance sheets to return cash to investors.”

Gosh. If this sort of thing catches on, we imagine that BHP Billiton might yet again postpone the two- or three-fold
expansion of its Olympic Dam mine in South Australia, a project whose projected costs are now in the tens of billions of
dollar, and whose expansion we have been expecting to begin late in the current decade.

We estimate that Olympic Dam produces approximately 1.3% of the global supply of copper, 7.4% of the global supply of
uranium and 0.1% of the world’s gold.


II: As we noted on Friday, Australia’s Northern Territory Ranger uranium mine was shut for 12 weeks because of previous
bad weather. Today the Sydney Morning Herald reports a severe weather warning for the territory.


Analyst Coverage: Raymond Goldie




4
January 31, 2011                                                                                               Metals Morning Note

  COMPANY NEWS

Agrium Inc. (AGU - TSX - Cdn$88.02; Target Cdn$127.00; TOP PICK) – 158.0 M Shares Outstanding
I: AGU’s sensitivity to a worsening of the situation in Egypt: 6 cents a month
II: Mississippi River silting: advantage Agrium
In Egypt, Agrium owns “a 26 percent interest in the Misr Oil Processing Company (MOPCO) facility, one of the lowest
cost operating [nitrogen] facilities in the world with direct access to major markets in Europe and North and South
America.” MOPCO is adjacent to Methanex’ plant in the port of Damietta, a port downstream from Cairo, and, as we note
in the following comment on Methanex, industrial operations in Damietta appear to have not been affected by the current
unrest in Egypt.

Should that situation change, we have considered Agrium’s sensitivity to its Egyptian operations. If Agrium’s interests in
Egypt were to be shut for, say, a month, it would reduce Agrium’s EPS in 2011, from our current forecast of US$6.07/share,
by US$0.06/share.

An irony of the situation is that one element of the current unrest in the Middle East is food shortages. Thus, Egypt’s woes
highlight the world’s growing need for fertilizers.

Meanwhile, Fertilizer Week America reports that “warnings … that budget cuts on [lower] Mississippi River dredging would
result in restriction on ship traffic … have come to pass”. We note that this gives an advantage to Agrium Inc. over its
competitors: Agrium’s supplies reach U.S. consumers largely through routes other than the lower Mississippi River.

Analyst Coverage: Raymond Goldie




Methanex Corporation (MX – TSX - Cdn$27.68; Target Cdn$31.00; HOLD) – 92.7 M Shares Outstanding
Significant Egypt earnings baked in
The political future of Egypt is in flux. While it is difficult to know how the events of the past week may play out, we
thought it worthwhile to consider Methanex’s exposure to the events. Methanex owns a 60% interest in the EMethanex
greenfield methanol operation at the Mubarak Gas and Petrochemical Complex in Damietta, Egypt (approximately 200km
north of Cairo). Methanex’s partners in the plant include the Egyptian Ministry of Petroleum (33%) and Apicorp, a pan-
Arabian investor. The 1.3 million tonne plant produced first methanol in January and is in the process of ramping up
production, with management guiding to a 70-80% operating rate in Q2 2011 and 80-90% in Q3 and Q4 of this year. The
EMethanex joint venture has long term gas contracts in place at terms similar to those at Methanex’s low-cost facilities in
Trinidad and Chile (i.e., with the price paid for gas rising as methanol prices increase). The contract in Egypt provides the
new plant with a particularly attractive gas cost through 2011 and 2012 while the plant ramps up, thereby making the facility
especially profitable during this period, assuming that operating rates can approach capacity.
Methanex management stated last week that they have experienced no delays or disruptions to the plant’s activities thus far
and that none of their staff has encountered any problems travelling to or from the plant as a result of the demonstrations in
the country.
Given the low cost gas the Egypt plant is set to receive over the next two years, the facility represents a significant portion of
Methanex’s forecast earnings over 2011 and 2012 in our model. The Egypt plant accounts for approximately US$1.01 of our
US$2.66 EPS estimate for 2011 and $0.96 of our US$3.05 per share estimate in 2012. While no issues seem to have arisen to
date, given the magnitude of the plants contribution to the company’s profitability, we will be watching closely for any news
that may impact the operations and/or the gas contract in place with the state-owned gas supplier.




                                                                                                                                5
Metals Morning Note                                                                                             January 31, 2011

    C OMPANY NEWS (C ONTINUED )

Methanex (cont…)
Mubarak Gas and Petrochemical Complex




Source: petroleum.gov.eg


Analyst Coverage: Jaret Anderson




Silvercorp Metals Inc. (SVM – TSX - Cdn$10.71; Target Cdn$13.80; BUY) – 174.6 M Shares Outstanding
Drilling extends high grade S2 vein at Ying
This morning, Silvercorp reported drill results from its 2010 underground drilling program at its Ying Mine in China. The
results are from 50 drill holes targeting the S2 vein, a high-grade vein that has seen limited mining to date.
Of the 50 holes drilled, 22 encountered significant silver, lead and zinc mineralization. The intersections are typically narrow
(most are <1.0 meters) but high-grade, with several highlights of >1,000 g/t silver and >10% lead. The drill holes succeeded
in demonstrating that the S2 vein extends at depth by another 285 meters from the 300 meter elevation level to the 15 meter
level.
It appears likely that the vein will add to the resources at Ying, potentially extending the mine life, but we will wait for an
updated resource estimate to determine how this impacts our valuation. The company plans to complete 40,000 meters of
drilling on the S2 vein in 2011.
We have a BUY recommendation with a 12-month target price of Cdn$13.80 per share on Silvercorp Metals Inc.

Analyst Coverage: Ash Guglani, Timothy Lee




6
January 31, 2011                                                                                            Metals Morning Note

  C OMPANY NEWS (C ONTINUED )

Teck Resources Limited (TCK.B svs1 – TSX - Cdn$57.86; Target Cdn$72.00; BUY) – 580.6 M Shares Outstanding
Strike action commences at Elkview mine
Yesterday, members of the United Steelworkers union commenced strike action at Teck’s Elkview metallurgical coal mine in
southeastern British Columbia after collective bargaining negotiations failed to reach a deal. The collective agreement at the
mine expired at the end of October 2010.
As we noted previously (January 26, 2010 Metals Morning Note), the Elkview mine has an annual coal production capacity of
about 5.5 Mt (million tonnes), or about 22% of our 2011F coal sales for Teck of 24.6 Mt (which is at the low end of its
guidance range of 24.5 – 25.5 Mt). Our cautious volume forecast for the year, relative to guidance, allows for the possibility
of some labour or weather disruptions during the year, although we note the downside risk of a lengthy strike at Elkview. In
addition, the collective agreement at the Fording River mine expires at the end of April 2011, which could represent another
potential strike threat. However, we believe the current strength in spot metallurgical coal prices could potentially provide
some offsetting upside potential to our pricing forecasts.
We rate Teck as a BUY, with a 12-month price target of Cdn$72.00 per subordinate voting share.


Analyst Coverage: Mike Plaster




   1
       Subordinate voting share

                                                                                                                             7
Metals Morning Note                                                                                         January 31, 2011

    EARNINGS CALENDAR

February 8, 2011      Teck Resources Ltd. FY 2010 results released after market close, followed by conference call on
                      February 9, 2011 at 11:00am ET.
                      Telephone number: (416) 695-6623

February 9, 2011      Agrium Inc. FY 2010 results released before market open, followed by conference call at 11:30am ET.
                      Telephone number: (877) 869-3847

February 11, 2011 Cameco Corporation FY 2010 results released after market close, followed by conference call on
                  February 14, 2011 at 11:00am ET.
                  Telephone number: (416) 695-6616 or (800) 769-8320

February 14, 2011 Uranium Resources Inc. FY 2010 conference call and webcast at 1:30pm ET.
                  Telephone number: (201) 689-8562; Conference ID: 366232
                  Webcast: www.uraniumresources.com

February 16, 2011 Agnico-Eagle Mines Limited FY 2010 results released after market close, followed by conference call
                  on February 17, 2011 at 11:00am ET.
                  Telephone number: (416) 644-3415 or (800) 814-4861

February 18, 2011 Anglo American plc FY 2010 results released before market open, followed by conference call at
                  11:00am ET. Call details to be circulated closer to the date.

February 28, 2011 Quadra FNX Mining Ltd. FY 2010 results released before market open, followed by conference call,
                  with call details to be circulated closer to the date.

March 14, 2011        Capstone Mining Corp. FY 2010 results released after market close, followed by conference call on
                      March 15, 2011 at 11:30am ET.
                      Telephone number: (647) 427-7450 or (888) 231-8191




    COMING UP


March 7, 2011         2nd Annual Minerals Colloquium 4:30pm ET
                      Fairmont Royal York Hotel
                      100 Front Street West




8
January 31, 2011                                                                                                                                                                                                                                                                                       Metals Morning Note
   C O M P A N Y / C O M M O D IT Y F O R E C A S T S

Gold Price Assumptions                                                                                0        2010A                     2011F                     2012F                     2013F                    2014F                     Long-Term
Gold (US$/oz)                                                                                                                            $1,420                   $1,370                    $1,240                    $1,100                     $1,050
Previous                                                                                                       $1,227                    $1,300                   $1,200                    $1,200                     $900                       $900


                                                    Reporting                      Price                   52-Week                           EPS                         P/EPS                          CFPS                    P/CFPS                NAVPS*                                    Target Price   Price Gain
Precious Metals - Gold                                               Ticker                                                                                                                                                                                          P/NAVPS     Rec.                                       Analyst
                                                     Currency                     (Cdn$)               Range (Cdn$)                     2010F      2011F            2010F        2011F          2010F     2011F             2010F        2011F         (Cdn$)                                     (Cdn$)       to Target

Senior Producer
Barrick Gold Corp.                                     US$            ABX         $47.39          $36.01 - $55.99                       $3.31      $4.45              14.3       10.6           $4.75     $5.66               10.0       8.4           $45.07          1.1       BUY              $58.00         22%         DW
Goldcorp Inc.                                          US$             G          $40.84          $35.12 - $48.96                       $1.34      $2.07              30.5       19.7           $2.20     $2.98               18.6       13.7          $35.11          1.2       BUY              $63.00         54%         DW
Kinross Gold Corp.                                     US$             K          $16.99          $15.34 - $20.29                       $0.82      $0.25              20.7       nmf            $0.84     $1.24               20.2       13.7          $16.69          1.0       BUY              $24.60         45%         DW
Average                                                                                                                                                                      -   -                                                   -   -                                 -
Intermediate Producer
Agnico-Eagle Mines Ltd.                                US$            AEM         $69.16          $53.16 - $88.52                       $1.99      $3.72              34.8       18.6           $3.84     $6.44               18.0       10.7          $50.77          1.4       BUY              $78.25         13%         DW
Centerra Gold Inc.                                     US$            CG          $16.20          $10.00 - $23.60                       $1.13      $1.52              14.3       10.7           $1.86     $2.48                8.7       6.5           $15.60          1.0       BUY              $24.00         48%         DW
Eldorado Gold Corp.                                    US$            ELD         $16.46          $12.02 - $21.35                       $0.43      $0.65              38.3       25.3           $0.65     $0.88               25.3       18.7          $11.68          1.4     TOP PICK           $24.75         50%         DW
IAMGOLD Corp.                                          US$            IMG         $19.69          $13.40 - $20.58                       $0.79      $1.62              24.9       12.2           $1.29     $2.17               15.3       9.1           $17.67          1.1       BUY              $24.00         22%         DW
Average                                                                                                                                                                      -   -                                                   -   -                                 -
Junior Producer
Alamos Gold Inc.                                       US$            AGI         $15.50          $11.31 - $21.65                       $0.59      $0.75              26.3       20.7           $0.77     $0.94               20.1       16.5          $13.11          1.2       BUY              $25.30         63%         DW
Minefinders Corporation Ltd.                           US$            MFL          $9.64           $8.51 - $11.95                       $0.04      $1.26               nmf       7.7            $0.38     $1.74               25.4       5.5          $18.08           0.5       BUY              $12.60         31%         DW
Average                                                                                                                                                                      -   -                                                   -   -                                 -

Advanced-Stage Development & Exploration
Exeter Resource Corp.                                  Cdn$           XRC          $5.18           $5.00 - $9.22                          nmf      nmf                 nmf       nmf              nmf     nmf                  nmf       nmf           $14.04          0.4     SPEC. BUY          $10.00         93%         DW
Extorre Gold Mines Ltd.                                Cdn$           XG           $5.07           $1.30 - $7.34                         Under Review                        -   -                Under Review                       -   -                  Under Review       SPEC. BUY       Under Review        -         DW
Gabriel Resources Ltd.                                 Cdn$           GBU          $7.36           $3.61 - $8.60                         Under Review                        -   -                Under Review                       -   -                  Under Review                Under Review               -           -
Geologix Explorations Inc.                             Cdn$           GIX          $0.68           $0.18 - $1.00                          nmf      nmf                 nmf       nmf              nmf     nmf                  nmf       nmf           $1.01           0.7       BUY               $1.00         47%          TL
Guyana Goldfields Inc.                                 Cdn$           GUY          $9.14           $6.13 - $11.79                          nmf     nmf                 nmf       nmf              nmf     nmf                  nmf       nmf           $10.56          0.9       BUY              $13.75         50%         DW
Inter-Citic Minerals Inc.                              Cdn$            ICI         $1.98           $0.77 - $2.37                         Under Review                        -   -                Under Review                       -   -                  Under Review                Under Review               -           -
International Tower Hill Mines Ltd.                    Cdn$          ITH-t         $9.47           $5.67 - $10.49                        Under Review                        -   -                Under Review                       -   -                  Under Review                Under Review               -           -
Sandspring Resources Ltd.                              Cdn$           SSP          $3.19           $1.09    $3.75                        Under Review                        -   -                Under Review                       -   -                  Under Review                Under Review               -         DW
Average                                                                                                                                                                      -   -                                                   -   -                             0.6
Note: Multiples are based on a Cdn$ share price, converted using the current exchange rate.
Analysts: (DW) David West, (TL) Timothy Lee
* Development projects are discounted at 0% to 5%, gold mines with base metal exposure are discounted at a weighted average discount rate between 0% and 10%, based on the proportion of revenues from each. Non-gold assets are estimated at fair value.




                                                                                                                                                                                                                                                                                                                                      9
Metals Morning Note                                                                                                                                                                                                                                                                                      January 31, 2011

   C O M P A N Y / C O M M O D IT Y F O R E C A S T S ( C O N T IN U E D )

Silver Price Assumptions                                                                                 0          2010A                    2011F                      2012F              2013F                     2014F                Long-Term
Silver (US$/oz)                                                                                                                              $29.75                     $27.50             $23.00                    $18.50                $17.00
Previous                                                                                                          $20.24                     $19.50                     $18.50             $17.00                    $14.00                $14.00


                                                    Reporting                      Price                     52-Week                           EPS                         P/EPS                   CFPS                  P/CFPS              NAVPS*                                       Target Price     Price Gain
Precious Metals - Silver                                             Ticker                                                                                                                                                                                  P/NAVPS       Rec.                                         Analyst
                                                     Currency                     (Cdn$)                Range (Cdn$)                     2010F       2011F              2010F      2011F   2010F     2011F            2010F       2011F      (Cdn$)                                         (Cdn$)          to Target
Senior Producer
Pan American Silver Corp.                              US$            PAA         $33.19           $21.35 - $42.00                        Under Review                         -   -        Under Review                      -   -                 Under Review                  Under Review                  -          -
Silver Wheaton Corp.                                   US$            SLW         $31.47           $13.97 - $42.35                        $0.80      $1.69              39.3       18.6    $0.96     $1.95             32.8       16.1       $16.28                1.9   TOP PICK           $47.25            50%        DW


Junior Producer
Endeavour Silver Corp.                                 US$            EDR          $6.34            $3.05 - $7.63                          0.09      0.19                 nmf      33.4     0.41     0.40              15.5       15.9       $5.37                 1.2     BUY               $8.10            28%       AG,TL
Fortuna Silver Mines Inc.                              US$            FVI          $3.96            $1.85 - $4.82                         Under Review                         -   -        Under Review                      -   -                 Under Review                  Under Review                  -          -
Great Panther Silver Ltd.                              US$            GPR          $2.08            $0.67 - $2.90                          0.06      0.19               34.7       10.9    $0.08     $0.24             26.0       8.7        $1.97                 1.1     BUY               $3.00            44%       AG,TL
Silvercorp Metals Inc.                                 US$            SVM         $10.71            $5.10 - $13.64                        $0.31      $0.29              34.5       36.9    $0.41             $0.31     26.1       34.5              $4.78          2.2     BUY              $13.80            29%       AG,TL


Emerging Producers & Advanced-Stage Development
Silver Standard Resources Inc.                         US$            SSO         $23.40           $16.21 - $30.07                       ($0.31)     $0.03                nmf      nmf     $0.09     $0.37              nmf       nmf        $27.22                0.9     BUY              $31.00            32%       AG,TL
Sabina Gold and Silver Corp.                           US$            SBB          $5.04            $1.04 - $5.82                         Under Review                         -   -        Under Review                      -   -                 Under review                  Under Review                  -          -
Average                                                                                                                                                                        -   -                                          -   -             -                   -
Note: Multiples are based on a Cdn$ share price, converted using the current exchange rate.
Note: Years presented above for Silvercorp are as follows - 2010F represents fiscal year ending March 31, 2011 and 2011F represents fiscal year ending March 31, 2012




10
January 31, 2011                                                                                                                                                                                                                                                                     Metals Morning Note
   C O M P A N Y / C O M M O D IT Y F O R E C A S T S ( C O N T IN U E D )

Base Metals Price Assumptions                                                                            0         2010A                      2011F                     2012F                2013F              2014F                Long-Term
Copper (US$/lb)                                                                                                                               $4.33                      $4.17               $4.02              $3.36                  $2.75
Previous                                                                                                           $3.47                     $3.72                      $3.58                $2.79              $2.05                 $2.05
Zinc (US$/lb)                                                                                                                                 $1.11                      $1.11               $1.10              $1.05                  $1.00
Previous                                                                                                           $1.00                     $1.16                      $1.14                $1.00              $0.87                 $0.87
Nickel (US$/lb)                                                                                                                              $11.70                     $11.34               $10.99             $9.54                  $8.21
Previous                                                                                                           $9.80                    $10.52                     $10.12                $8.73              $7.50                 $7.50
Lead (US$/lb)                                                                                                                                 $1.13                      $1.12               $1.11              $1.11                  $1.10
Previous                                                                                                              $0.99                   $1.13                      $1.12               $0.84              $0.56                  $0.56


                                                    Reporting                      Price                     52-Week                            EPS                         P/EPS                    CFPS           P/CFPS              NAVPS*                                Target Price   Price Gain
Base Metals                                                          Ticker                                                                                                                                                                          P/NAVPS   Rec.                                       Analyst
                                                     Currency                     (Cdn$)                 Range (Cdn$)                     2010F       2011F            2010F        2011F    2010F     2011F     2010F       2011F      (Cdn$)                                  (Cdn$)       to Target
Amerigo Resources Ltd.                                   US$          ARG          $1.25             $0.58 - $1.38                        $0.10       $0.35              12.5       3.6      $0.12     $0.54      10.4       2.3         $2.82         0.4     BUY               $2.90         132%         RG
First Quantum Minerals Ltd.                              US$          FM          $114.49           $48.20 - $126.35                      ($2.99)     $14.04              nmf       8.2      $9.10     $6.20      12.6       18.5       $142.70        0.8     BUY              $142.00        24%          RG
Hana Mining Ltd.                                         Cdn$        HMG           $4.32             $1.16 - $5.68                         Under Review                         -   -         Under Review               -   -              Under Review              Under Review               -           -
Heatherdale Resources Ltd.                               US$          HTR          $1.20             $0.67    $1.94                        Under Review                         -   -         Under Review               -   -              Under Review              Under Review               -           -
Imperial Metals Corporation                              Cdn$          III        $22.45            $13.29 - $27.09                       $0.80       $2.60              28.1       8.6      $0.56     $3.33      40.1       6.7        $33.22         0.7     BUY              $33.25         48%          RG
Inmet Mining 1                                           Cdn$         IMN         $75.00            $41.61 - $82.14                       $5.59       $9.52              13.4       7.9      $5.14     $10.94     14.6       6.9        $134.64        0.6     BUY              $118.50        58%          RG
Ivanhoe Mines Ltd.                                       US$          IVN         $27.35            $13.15 - $30.28                          nmf      nmf                 nmf       nmf        nmf     nmf         nmf       nmf        $27.81         1.0     BUY              $36.00         32%          RG
Nautilus Minerals Inc.                                   US$          NUS          $3.23             $1.31 - $3.64                           nmf      nmf                 nmf       nmf        nmf     nmf         nmf       nmf         $9.11         0.4     BUY               $5.10         58%          RG
Quadra FNX Mining Ltd.                                   US$          QUX         $13.45             $8.98 - $18.57                       $1.18       $2.24              11.4       6.0      $1.85     $3.02       7.3       4.4        $34.11         0.4     BUY              $34.00         153%         RG
Sherritt International Corp.                             Cdn$          S           $8.76             $5.72 - $9.26                        $0.68       $1.03              12.9       8.5      $0.46     $0.28      19.0       31.3       $24.75         0.4     BUY               16.50         88%          RG
Teck Resources Ltd.                                      Cdn$        TCK'B        $57.86            $30.25 - $64.62                       $2.80       $5.68              20.7       10.2     $4.79     $8.32      12.1       7.0        $49.97         1.2     BUY               72.00         24%          MP
Note: Multiples are based on a Cdn$ share price, converted using the current exchange rate.
Note: All cash flow estimates for companies covered by Raymond Goldie (RG in the right-hand column) are free cash flow estimates (generally, operating cash flows minus capital spending).
Analysts: (RG) Raymond Goldie, (MP) Mike Plaster
* Base metal projects are discounted between 10% and 20%. Base Metal mines are discounted between 8% and 15%. Non-mining assets are estimated at fair value.
1. Inmet's NAV of Cdn$134.64 is on a stand-alone basis




                                                                                                                                                                                                                                                                                                                    11
Metals Morning Note                                                                                                                                                                                                                                                                 January 31, 2011
*   C O M P A N Y / C O M M O D IT Y F O R E C A S T S ( C O N T IN U E D )

Coal Price Assumptions                                                                                    2008A                    2009A                      2010A                 2011F              2012F         2013F          Long-Term
Hard Coking Coal (US$/tonne)*                                                                              $300                     $129                        $215                 $240               $210             $185           $140
Low Volatile PCI Coal (US$/tonne)*                                                                         $245                      $90                        $170                 $188               $160             $140           $106
Thermal Coal (US$/tonne)*                                                                                  $125                      $70                        $98                  $115               $108             $100           $85
*Based on Coal Year (April 1 to March 31)


                                                     Reporting                     Price                   52-Week                              EPS                         P/EPS                    CFPS           P/CFPS          NAVPS*                           Target Price     Price Gain
Coal                                                                 Ticker                                                                                                                                                                    P/NAVPS     Rec.                                    Analyst
                                                     Currency                     (Cdn$)                 Range (Cdn$)                      2010F      2011F            2010F      2011F      2010F     2011F     2010F     2011F    (Cdn$)                             (Cdn$)          to Target
CIC Energy Corp.                                       Cdn$           ELC          $6.88             $1.18 - $7.25                           nmf      nmf                 nmf     nmf           nmf    nmf         nmf     nmf       $9.96       0.7       HOLD         $7.42            8%          MP
Grande Cache Coal Corporation                          Cdn$           GCE          $9.94             $4.16 - $11.93                        $0.27      $1.71              36.8     5.8        $0.61     $2.02      16.3     4.9        N/A        N/A       BUY         $13.00            31%         MP
SouthGobi Resources Ltd.                               US$           SGQ          $14.15             $8.91 - $17.83                       ($0.25)     $0.08               nmf     nmf        ($0.17)   $0.31       nmf     45.6     $18.50       0.8       BUY         $18.50            31%         MP
Western Coal Corporation                               Cdn$          WTN          $12.38             $2.96 - $12.73                        $0.73      $1.63              17.0     7.6        $1.16     $1.91      10.7     6.5        N/A        N/A       HOLD        $12.75            3%          MP
Note: Multiples are based on a Cdn$ share price.
Analyst: (MP) Mike Plaster




Fertilizer Price Assumptions                                                                               0          2010A                        2011F                   2012F                2013F             2014F            Long-Term
Agrium's Realized Nitrogen Product Price (US$/tonne)                                                                 $357.87                   $409.65                    $383.31              $358.02           $333.76            $308.31
Previous                                                                                                           $357.83                    $389.66                    $358.62              $329.55            $301.50           $301.50
Potash - FOB Vancouver, Standard (US$/tonne)                                                                         $329.15                   $400.00                    $408.00              $416.16           $424.48            $434.04
Previous                                                                                                             $328.54                  $337.49                    $356.51               $375.52           $394.54            $394.54



                                                     Reporting                     Price                   52-Week                              EPS                         P/EPS                    CFPS           P/CFPS          NAVPS*                           Target Price     Price Gain
Fertilizers & Chemicals                                              Ticker                                                                                                                                                                    P/NAVPS     Rec.                                    Analyst
                                                     Currency                     (Cdn$)                 Range (Cdn$)                      2010F      2011F            2010F      2011F      2010F     2011F     2010F     2011F    (Cdn$)                             (Cdn$)          to Target
Agrium Inc.                                            US$            AGU         $88.02            $51.39 - $94.95                        $4.56      $6.07              19.3     14.5       $4.46     $4.39      19.7     20.0     $126.93      0.7     TOP PICK      $127.00           44%         RG
Allana Potash Corp.                                    Cdn$           AAA          $1.40             $0.31 - $1.24                        ($0.04)     ($0.10)             nmf     nmf        ($0.02)   ($0.09)     nmf     nmf       $2.27       0.6     SPEC. BUY      $1.25           -11%         JA
Amazon Mining Plc                                      Cdn$           AMZ          $8.25             $0.93 - $9.25                        ($0.09)     ($0.14)             nmf     nmf        ($0.11)   ($0.13)     nmf     nmf      $16.41       0.5     TOP PICK      $10.50            27%         JA
Hanfeng Evergreen Inc.                                 Cdn$           HF           $5.79             $4.84 - $8.24                         $0.47      $0.46              12.3     12.6       $0.61     $0.61       9.5     9.5        N/A         -        HOLD         $5.50            -5%         JA
MagIndustries Corporation                              Cdn$           MAA          $0.27             $0.24 - $0.59                        ($0.07)     ($0.07)             nmf     nmf        ($0.04)   ($0.02)     nmf     nmf       $1.20       0.2       HOLD         $0.30            11%         JA
Methanex Corporation                                   US$            MX          $27.68           $20.43 - $31.45                         $1.09      $2.66              25.4     10.4       $2.69     $4.53      10.3     6.1      $30.87       0.9       HOLD        $31.00            12%         JA
Migao Corporation                                      Cdn$          MGO           $8.20             $5.60 - $8.25                         $0.79      $0.72              10.4     11.4       $0.91     $0.86       9.0     9.5        N/A         -        BUY          $9.50            16%         JA
Potash Corp. of Saskatchewan                           US$            POT         $173.99          $88.68 - $177.84                        $5.95      $9.12              29.2     19.1       $9.57     $12.34     18.2     14.1       N/A         -        HOLD        $175.00           1%          JA
Western Potash Corporation                             Cdn$          WPX           $1.34             $0.36 - $1.41                        ($0.09)     ($0.14)             nmf     nmf        ($0.03)   ($0.11)     nmf     nmf       $3.27       0.4     SPEC. BUY      $1.70            27%         JA
Note: Multiples are based on a Cdn$ share price, converted using the current exchange rate.
Note: All cash flow estimates for companies covered by Raymond Goldie (RG in the right-hand column) are free cash flow estimates (generally, operating cash flows minus capital spending).
Analysts: (RG) Raymond Goldie, (JA) Jaret Anderson




12
January 31, 2011                                                                                                                                                                                                                                                                        Metals Morning Note
*     C O M P A N Y / C O M M O D IT Y F O R E C A S T S ( C O N T IN U E D )

Other Price Assumptions                                                                                  0         2010A                      2011F                      2012F                2013F             2014F                 Long-Term
Uranium Spot Price (US$/lb)                                                                                                                   $89.31                   $107.28                $98.04            $87.80                 $77.56*
Previous                                                                                                          $46.92                     $78.29                   $103.85                 $97.88            $87.45                 $87.45
Mountain Province's Realized Diamond Price (US$/ct)                                                       a            na                          na                      na                   na                na                   $151.92
* Our long-term uranium price takes effect in 2017


                                                       Reporting                    Price                    52-Week                            EPS                          P/EPS                    CFPS             P/CFPS            NAVPS*                                  Target Price   Price Gain
Uranium                                                              Ticker                                                                                                                                                                           P/NAVPS     Rec.                                       Analyst
                                                        Currency                    (Cdn$)               Range (Cdn$)                      2010F        2011F           2010F       2011F     2010F     2011F     2010F       2011F      (Cdn$)                                    (Cdn$)       to Target
Bannerman Resources Ltd.                                  US$         BAN           $0.81            $0.24 - $0.91                         Under Review                         -   -          Under Review               -   -              Under Review                Under Review               -           -
Cameco Corporation                                        Cdn$       CCO          $39.96            $21.64 - $40.95                        $1.05        $0.76            38.1       52.6      $0.53     $0.55       nmf       nmf        $39.78         1.0     TOP PICK           $47.75         19%          RG
Denison Mines Corp.                                       US$         DML           $3.38            $1.15    $3.67                        Under Review                         -   -          Under Review               -   -              Under Review                Under Review               -           -
Forsys Metals Corporation                                 Cdn$        FSY           $2.70            $1.40 - $4.85                         Under Review                         -   -          Under Review               -   -              Under Review                Under Review               -           -
Hathor Exploration Ltd.                                   Cdn$        HAT           $2.75            $1.35 - $3.57                         Under Review                         -   -          Under Review               -   -              Under Review                Under Review               -           -
Mega Uranium Ltd.                                         Cdn$       MGA            $0.92            $0.34    $1.30                        Under Review                         -   -          Under Review               -   -              Under Review                Under Review               -           -
Paladin Energy Ltd.                                       US$        PDN            $4.87            $2.94 $5.88                           Under Review                         -   -          Under Review               -   -              Under Review                Under Review               -           -
Powertech Uranium Corp.                                   Cdn$       PWE            $0.49            $0.15 - $0.65                         Under Review                         -   -          Under Review               -   -              Under Review                Under Review               -           -
Tournigan Energy Ltd.                                     Cdn$        TVC           $0.36            $0.09    $0.45                        Under Review                         -   -          Under Review               -   -              Under Review                Under Review               -           -
Uranium Participation Corp.                               Cdn$         U            $8.62            $5.08 - $8.72                           nmf        nmf               nmf       nmf         nmf     nmf         nmf       nmf        $8.07          1.1       BUY              $10.50         22%         DW
Note: Multiples are based on a Cdn$ share price, converted using the current exchange rate.
Note: All cash flow estimates for companies covered by Raymond Goldie (RG, in the right-hand column) are free cash flow estimates (generally, operating cash flows minus capital spending).
Analyst: (RG) Raymond Goldie, (DW) David West



                                                                                                                                                                                                         1
                                                       Reporting                    Price                    52-Week                            EPS                          P/EPS                CFPS                 P/CFPS            NAVPS*                                  Target Price   Price Gain
Other                                                                Ticker                                                                                                                                                                           P/NAVPS     Rec.                                       Analyst
                                                        Currency                    (Cdn$)               Range (Cdn$)                      2010F        2011F           2010F       2011F     2010F     2011F     2010F       2011F      (Cdn$)                                    (Cdn$)       to Target
BioteQ Environmental Technologies Inc.                    Cdn$        BQE           $1.01            $0.58 - $1.29                        ($0.00)       $0.07             nmf       14.5      $0.00     $0.10       nmf       9.7        $1.54          0.7       BUY               $1.55         53%          IK
Mountain Province Diamonds Inc.                           Cdn$        MPV           $5.80            $2.02 - $6.65                           nmf        nmf               nmf       nmf         nmf     nmf         nmf       nmf        $7.40          0.8       BUY               $8.00         38%          RG
Major Drilling Group International Inc.                   Cdn$        MDI         $42.59            $19.50 - $43.00                        $0.72        $1.51             nmf       28.2      $2.14     $3.12      19.9       13.7       $19.87         2.1       HOLD             $20.00         -53%         JM
Peregrine Diamonds Ltd.                                   Cdn$        PGD           $2.45            $1.40    $3.32                          nmf        nmf               nmf       nmf         nmf     nmf         nmf       nmf        $5.79          0.4     SPEC. BUY           $5.75         135%         RG
Westshore Terminals Investment Corporation                Cdn$      WTE.UN        $23.54            $13.55 - $25.21                        $0.40        $0.85             nmf       27.7      $1.07     $1.46      22.0       16.1        N/A               -     HOLD             $21.00         -11%         MP
Note: Multiples are based on a Cdn$ share price, converted using the current exchange rate.
1
    Cash Flows shown for Westshore are distributions per unit.
Analysts: (RG) Raymond Goldie, (MP) Mike Plaster, (JM) Jayson Moss, (IK) Ike Kaja




                                                                                                                                                                                                                                                                                                                       13
Salman Partners Inc. Disclosure
In accordance with NASD Rule 2711 and IDA Policy No. 11, Salman Partners Inc. (“Salman Partners”) refers the reader to our website
(www.salmanpartners.com) for our firm’s specific disclosures, policies and procedures in respect of research analysts and research
reports. Salman Partners hereby confirms that as of the date of this report:
(i)          the research analyst(s) referenced herein and any member of the research analyst’s household, or an individual directly
             involved in the preparation of this report, does not hold a financial interest in the securities of the company in this report;
(ii)         the Pro Group holdings of the firm, whether long or short, do not exceed 1% of the outstanding securities of any class of
             securities of the company mentioned in this report;
(iii)        the research analyst(s) who prepared this report receives compensation that is based, in part, upon the firm’s overall investment
             banking revenues;
(iv)         Salman Partners Inc., including some or all of its officers, directors and employees, has provided underwriting services to
             Silvercorp Metals Inc. during the past 24 months. Specifically, we acted as an underwriter in a syndicate for the Cdn$31.00
             million bought deal offering that closed on March 11, 2009. We have also acted as an underwriter in a syndicate for a
             Cdn$116.84 million common share offering, that closed on December 14, 2010. Salman Partners Inc. may receive or may seek
             compensation for investment banking services from the company herein within the next 3 months.
             Salman Partners Inc., including some or all of its officers, directors and employees, have not provided services, including
             investment banking services, to the other company/companies herein during the past 24 months and may receive or may seek
             compensation for investment banking services from any company/companies herein within the next 3 months;
(v)          Salman Partners Inc. does not make a market in the company’s/companies’ securities within the appropriate security laws;
(vi)         no officer, director, employee or research analyst of the firm or a member of the research analyst’s household is an officer,
             director or employee of the company/companies, nor does any officer, director, employee or research analyst of the firm or a
             member of the research analyst’s household serve in any advisory capacity to the company/companies; and
(vii)        other than what is disclosed above, Salman Partners Inc. is not aware of any actual, material conflicts of interest for the
             research analyst, of which the research analyst knows or has reason to know in the preparation of this report.
(viii)       an analyst/associate has visited some or all of the issuers’ material operations. Payment or reimbursement has been received, in
             part or in whole, from the issuer(s) for travel costs in the past 12 months.
(ix)         Analyst Certification: The views expressed in this report (which includes the rating assigned to the issuer’s shares as well as
             the analytical substance and tone of the report) accurately reflect the personal views of the analyst(s) covering the subject
             securities. No part of the analyst’s compensation was, is, or will be directly or indirectly related to the specific
             recommendations.
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For purposes of our research report, our rating system is defined as follows:
  Top Pick                 A recommendation to purchase a stock which represents the best risk/reward ratio within an analyst's coverage list.
                           The analyst expects to realize a minimum 12-month return of 10%, and also has positive near-term catalysts.
  Buy                      A recommendation to purchase the stock at the current price.
  Hold                     A recommendation to maintain one’s current position in the company, given the current share price and the outlook
                           for the company, sector or underlying commodity.
  Sell                     A recommendation to reduce one’s share position, either in part or in whole.
  Speculative Buy          A recommendation to purchase shares in a company which is considered speculative because of the risk associated
                           with owning shares. This added risk can be attributed to the company’s size, financial stability, liquidity, the
                           outlook for a commodity or commodities or other factors beyond Salman Partners’ control. Suitable for risk-
                           tolerant investors only.
  Under Review             Salman Partners is in the process of an update based on recently released information.                                            The analyst’s
                           recommendation and target price may or may not change upon completion of analysis.
---------------------------------------------------------------------------------------------------------------------------------------------------------------------
Distribution of Ratings

                        Distribution of Recommendations (%)


        Top Pick              6%

             Buy                                                         44%

  Speculative Buy          6%

            Hold                                   23%

             Sell       3%

    Under Review                           18%

                0%           10%        20%            30%      40%         50%
                                        Salman Partners Inc.


Within the last 12 months, Salman Partners has provided investment banking services for:
Top Pick                          14%     of the companies falling into the 'Top Pick' category
Buy                               11%     of the companies falling into the 'Buy' category
Speculative Buy                   29%     of the companies falling into the 'Speculative Buy' category
Hold                               0%     of the companies falling into the 'Hold' category
Sell                               0%     of the companies falling into the 'Sell' category
                                                                                 17th Floor
                                                                     1095 West Pender Street
                                                                   Vancouver, B.C. V6E 2M6
                                                       Tel: (604) 685-2450 • Fax (604) 685-2471



                                                                                Suite 1800
                                                                           100 Yonge Street
                                                                   Toronto, Ontario M5C 2W1
                                                       Tel: (416) 861-1270 • Fax: (416) 861-1935



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                                                                       401 - 9th Avenue S.W.
                                                                    Calgary, Alberta T2P 3C5
                                                       Tel: (403) 261-6065 • Fax: (403) 261-6069


                                                                    www.salmanpartners.com




The opinions, estimates and projections contained herein are those of Salman Partners Inc. as of the date hereof and are subject to change without notice. Salman Partners
makes every effort to ensure that the contents herein have been compiled or derived from sources believed reliable and contain information and opinions which are accurate and
complete. However, Salman Partners makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which
may be contained herein and accepts no liability whatsoever for any loss arising from any use of or reliance on this report or its contents. Information may be available to
Salman Partners which is not reflected herein. This report is not to be construed as, an offer to sell or solicitation for or an offer to buy, any securities. Salman Partners, its
affiliates and/or their respective officers, directors or employees may from time to time acquire, hold or sell securities mentioned herein as principal or agent. Salman Partners
may act as financial advisor and/or underwriter for certain of the corporations mentioned herein and may receive remuneration for same.

Upon approval by the research department and once published in final form, SPI disseminates its research to all institutional clients simultaneously in electronic form. The firm
subsequently disseminates this research in hard copy to those clients who have requested to be on the firm’s distribution list. In addition, Salman Partners Inc. posts its
research on the Salman Partners Inc. website and on certain paid research services with which a contract of dissemination has been arranged. Access to these websites is
provided using a password provided by the administrator and is limited to Salman Partners Inc.’s institutional clients. Reproduction of this report in part or in whole without
permission is prohibited. All rights reserved. Salman Partners Inc.

TO U.S. RESIDENTS:
Salman Partners (USA) Inc., an affiliate of Salman Partners Inc., is furnishing this report to U.S. residents and accepts responsibility for the contents herein. Any U.S. person
wishing to effect transactions in any security discussed herein should do so through Salman Partners (USA) Inc.

								
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