Notes

Redstar Gold Corp. (TSX-V: RGC) reported results from its 10-hole initial drill program at its recently acquired Unga (previously Shumagin) gold project in Alaska's Aleutian Islands.  The most noteworthy drill hole, 11SH010, intercepted a 1.65 meter interval grading 246.42 g/t (7.2 ounces) gold and 136.0 g/t (4.0 oz/ton) silver, which included a 0.55 meter intercept grading 738.0 g/t gold and 408.0 g/t silver.  In addition to the remarkably high grade, the intercept is at the greatest depth and to the farthest northeast extent of the drill target which would suggest the need for additional step out drilling along trend and at depth.

The Unga project covers about 250 sq km and includes nearly 30 km of identified trends.  Redstar is working to establish a compliant resource at the Shumagin target following earlier non-compliant resource estimates.  As Shumagin and the project is at large never explored comprehensively with modern mining methods, we are optimistic that they may be successful of establishing a multi-million ounce resource at Unga.  The latest drill results, reminiscent of other high-grade epithermal systems such as the Comstock at Virginia City, suggests a productive drill season for Redstar in 2012.

 Northern Freegold Resources (TSX: NFR) is making good progress on its 2010 exploration at its Freegold Mountain project in the Yukon Territory.  Northern Freegold Resources has completed 3,000 meters of 4,500 meters of reverse circulation drilling targeted to increase its Nucleus gold deposit and 4,000 meters of its 5,500 meters of reverse circulation drilling at the adjacent Revenue copper-gold porphyry target.  We anticipate a steady stream of drill results which may prove significant.  We suspect that the proposed Titan 24 Deep Geophysical Survey may provide potentially more significant information.  Reverse circulation drilling tests only the top 150 meters while the Titan 24 survey may provide insight to depths of 750 meters.  As the Titan 24 is recognized by major mining companies for qualifying interest in large copper porphyry projects, should the survey to commence in September successfully identify potential for a copper porphyry, Northern Freegold Resources’ Freegold Mountain project’s investment potential may be significantly increased.  

 Planet Resource Recovery, Inc. (Pinksheets: PRRY) is making impressive progress advancing toward production of Antimony from its Raptor Ventures, its Bolivian subsidiary in a joint venture with Franklin Mining and Midwest General.  Earlier in August, Planet Resource Recovery, Inc.’s Raptor Ventures, LLC.s’ corporate charter was ratified.  The charter includes an import-export license granting Raptor the commercial license and the right to commence mining operations in bolivia as early as August of 2010.  Planet Resource Recovery, Inc. has also entered into a contract to sell “Antimony Tailings and Discarded Ore” to Primasur Import & Export.  The ore available for sale consists of 35,000 tonnes with Antimony grading 5% to 10%.  Planet Resource Recovery, Inc. reports recent pricing of Antimony at US$8,800 per tonne and anticipates revenues from mining operations of over US$1,000,000.  The charter opens the door to additional mining at its San Antonio de Turiri Mine with the potential to import and export other raw materials including Oil and Gas.  Revenues from mining operations in Bolivia were not included in the financial model in the Introductory Report.

 Mercator Minerals Ltd. (TSX: ML) reported its July, 2010 production results for its Mineral Park copper-molybdenum mine near Kingman, Arizona.  Production of molybdenum at Mercator Minerals Ltd.’s Mineral Park mine increased to a record 396,322 pounds, slightly above June, reflecting an increase in recoveries to 52.1% in 2Q10 from 40.3% in 1Q10.  Copper and silver production was down slightly in July from June and May, but copper recoveries nevertheless increased to 73.8% in 2Q10 from 60.1% in 1Q10.  We expect sustained higher cash flows in the second and third quarter with improvement in the fourth quarter with installation of additional rougher cells by the end of September, important for further improvement of recoveries targeted at 73% for both molybdenum and copper.  Mercator Minerals Ltd. is currently in the process of adding an additional six rougher cells to the current eight.  With the installation of an additional ball mill with power transmission upgrade, Mercator Minerals is targeting completion of its Phase II by mid-2011with a scheduled increeased processing capacity to50,000 tpd.

 Initial results from eleven of thirty drill holes from Seabridge Gold Inc.’s (NYSE Amex: SA; TSX: SEA) 2010 drill program at its Courageous Lake gold project, intended to upgrade the classification of inferred gold resources, have encountered higher grades with potential to expand the deposit.  The Measured and Indicated gold resource at Seabridge Gold Inc.’s project is 591,000 and 3,648,000 ounces of gold respectively with nearly six million ounces in the Inferred category.  A Preliminary Assessment completed in March of 2008 estimated total cash cost of US$590 per ounce, and at a gold price of US$1,000 a cumulative pre-tax cash flow of US$2.27 billion.  Additional drilling of the sizeable inferred gold resource, to upgrade or increase the resource at Seabridge Gold Inc.’s Courageous Lake project, should improve the economics and attractiveness for development.

 Sonic Foundry, Inc. (Nasdaq: SOFO) reported a GAAP net income of $0.06 per share for its third quarter of its fiscal year ending September 30, 2010.  Sonic Foundry also reported revenues of $5.6 million for 3Q10, a 12% increase over 3Q09.  Sonic Foundry continues to enjoy increasing renewals and new customers in its education segment.  Sonic Foundry is enjoying higher sales penetration to community colleges and trade schools.  While sales to top education institutions has affirmed Sonic Foundry’s leadership position in rich media capture and presentation, the community college niche is very large and is a focus of national priorities on education and retraining.  Sonic Foundry has again reduced overhead, including marketing and administration, without reducing sales of product development.  We agree with management that Sonic Foundry may have passed an inflection point with potential to experience significant operating leverage.  The third and fourth quarter’s of Sonic Foundry’s fiscal years are typically its financially strongest.

 Seabridge Gold Inc. (NYSE Amex: SA; TSX: SEA) received drill results at its Iron Cap target at KSM with wide intercepts above average grades for the project.  The drilling has identified a new deposits of at least 900 meters in length, 400 meters wide and up to 350 meters thick adjacent to the Mitchell zone.  The potential to sequence mining with Mitchell (before Kerr and Sulphurets) and blend ore has good potential to reduce estimated operating costs and improve the economics of the project.  Seabridge Gold has plans to complete infill drilling to establish a new resource.  Given consistency of drilling other areas of the project and visible alteration we anticipate further drilling success.  Seabridge Gold’s KSM project is one of the world’s largest copper-gold projects.

 Planet Resource Recovery, Inc. (Pinksheets: PRRY) continues to make good progress in its transition from a research and development company to commercialization of its products and services.  They are expanding the management team including a new SEC attorney and a new CFO.  The new CFO is anticipated to come on in the next couple weeks and to coincide with completion of audited financial statements.  These steps are essential for listing on a higher exchange and important for our investment opinion.  They also announced their expectation of $2 million in revenues from their Inspar subsidiary.  This was not included in our model and also important in the company’s successful transition.

 Alexco Resources (NYSE Amex: AXU, TSX: AXR) provided an update on the construction of its Bellekeno mine and mill on July 6, 2010.  The inadvertent discovery of high-grades (samples of 1,428 g/t silver or 45.8 opt over 2.0 meters) at Flame and Moth uncovered during construction are an indication of the potential for locating mineralized material covered by thin layers of overburden and further positive exploration surprises at Keno Hill.  Other indicators of further mineralization have been encountered in post holes when hanging power lines.  Alexco has initiated surface drilling at Flame and Moth and has several surface and underground drills which may provide a pipeline of positive news releases over 2010.

 Mercator Minerals Ltd. (TSX: ML) reported record production for the month of June, 2010, of about 3.1 million lbs. of copper, 396,184 lbs. of moly and 44,596 oz. of silver in concentrate.  Recoveries improved in the second quarter to 73.8% and 52.1% for copper and moly, respectively.  This is below design capacity of 80% and 73% for copper and moly, respectively.  Recoveries should improve in the near-term with installation of an additional half dozen rougher cells.  With the addition of additional ball mills and rougher cells, management anticipates that overall profitability should improve with improved recoveries and increased production.

 Goldbrook Ventures Inc. (TSX-V: GBK) has initiated its 2010 drill program at its Raglan project in Quebec, Canada.  The program has a mobilized five drills targeting 25,000 meters with a budget of C$17.5 million.  The program will follow up on NI-CU-PGE targets in the southern horizon including Mystery, Echo and Bravo, and both east and west ends of the northern horizon.  Goldbrook’s land position brackets Xstrata’s Raglan operations, which may be the world’s most profitable NI-CU-PGE mines.  Goldbrook is in the third year of an option-joint venture agreement with Jilin Jien Nickel Industry Co, Ltd which is expected to complete its earn-in upon completion of the 2010 exploration program.

Minefinders Corporation Ltd. (NYSE Amex: MFN, TSX: MFL) reported July 7, 2010, completion of a Pre-Feasibility study for its La Bolsa gold and silver project, located south of the Arizona-Mexico border, about 30 kilometers west of Nogales, Mexico.  The La Bolsa is estimated to produce 227,600 ounces of gold and 315,100 ounces of silver over a six-year mine life.  The project is anticipated to process 8,500 tpd, with an initial capital cost of $31.4 million, resulting in an estimated NPV (0% discount – pre-tax) of $132.2 million at spot prices.  We visited the La Bolsa project in June of 2009 and believed it to have very good potential to become a profitable, low-cost, low-risk, heap leach gold operation.

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