Investments

Click here to read Pinetree's Disclosure Criteria

Pinetree began investing in precious metals stocks in 2002 when gold was trading at $300/oz. In 2007, gold topped the $840/oz mark. With the fundamentals for gold remaining strong, we expect to see gold prices at or near record highs going forward. Government spending and inflationary pressures in the US coupled with interest rate cuts resulting from the sub-prime market are putting downward pressure on the US dollar. People are investing in gold as a hedge and safe haven.

Likewise, Pinetree believes that silver is highly leveraged to the depreciating US dollar and we remain very positive about junior silver exploration companies. The price of silver grew by 46% in 2006 and this growth continued in 2007 and is widely expected to continue, driven largely by investment and industrial demand. As is the case with gold downward pressure on the US dollar is driving investors to silver as a hedge. There is also strong demand for silver from industrial applications including: electronic and electrical applications, semi-conductors and new applications taking advantage of silver’s anti-microbial properties.

Looking forward, we believe the supply side fundamentals for both silver and gold support elevated prices as new mines are taking longer to come into production due to permitting delays, environmental activism and political risk. We believe superior returns will come from investments in junior exploration and development (pre-feasibility or feasibility studies under way) companies, given their potential for discovery and their high level of leverage to elevated gold and silver prices.

 

    24 Hour Spot Gold

 

   24 Hour Spot Silver

Precious Metals Investments as at June 30, 2010.

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African Gold Group Inc. (AGG:TSXV)
9,079,500 common shares
3,000,000 warrants expire Jan 23, 2011
282,500 warrants expire Jun 16, 2011

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AMI Resources Inc. (AMU:TSX-V)
7,638,000 common shares
2,000,000 warrants expire May 4, 2010
1,500,000 warrants expire Apr 28, 2011

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Bear Gold Lake Ltd. (formerly NFX Gold Inc.) (BLG: TSXV)
10,327,000 common shares
1,000,000 warrants expire Oct 23, 2010
750,000 warrants expire Jun 4, 2011

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Caledonia Mining Corporation (CAL:TSX)
35,910,000 common shares

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Colossus Minerals Inc. (CSI: TSX)
3,000,000 common shares

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Commander Resources Ltd. (CMD:TSXV)
5,000,000 common shares

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Evolving Gold Corp. (EVG:TSXV)
9,500,000 common shares
500,000 warrants expire Nov 24, 2011

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Gold Canyon Resources Inc. (GCU:TSXV)
5,550,000 common shares
1,000,000 warrants expire Sep 29, 2011

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Goldstone Resources Inc. (formerly Ontex Resources Limited) (GRC:TSX)
1,458,333 common shares
416,666 warrants expire Sept 5, 2010
833,333 warrants expire Nov 22, 2010
441,666 warrants expire Feb 24, 2011

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Latin American Minerals Inc. (LAT:TSXV)
13,500,000 common shares
500,000 warrants expire Feb 19, 2010
1,000,000 warrants expire Oct 5, 2011

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Mega Precious Metals Inc. (formerly Mega Silver Inc.) (MGP-TSXV)
4,980,836 common shares
375,000 warrants expire Nov 2, 2010

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Niogold Mining Corp. (NOX:TSXV)
7,171,500 common shares
900,000 warrants expire Dec 22, 2010

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Nortec Ventures Corp. (NVT:TSXV)
16,080,000 common shares
540,000 warrants expire Feb 14, 2010
1,500,000 warrants expire Jun 15, 2011

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Pacific North West Capital Corp. (PFN:TSX)
5,500,000 common shares
250,000 warrants expire Dec 30, 2010

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Queenston Mining Inc. (QMI:TSX)
5,248,200 common shares

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Redstar Gold Corp. (RGC:TSXV)
6,750,000 common shares

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Shoreham Resources Ltd. (SMH:TSX-V)
3,600,000 common shares
750,000 warrants expire May 14, 2010
250,000 warrants expire May 14, 2011

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Silver Quest Resources Ltd. (SQI:TSXV)
4,250,000 common shares
1,250,000 warrants expire Sep 16, 2010
1,250,000 warrants expire Oct 6, 2010

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Solitario Exploration & Royalty Corp. (SLR:TSX)
2,508,053 common shares

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Temex Resources Corp. (TME: TSXV)
8,977,000 common shares
440,000 warrants expire May 26, 2011

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TNR Gold Corp. (TNR: TSXV)
6,575,000 common shares
500,000 warrants expire Apr 17, 2010

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Treasury Metals Inc. (TML:TSX)
2,186,055 common shares
500,000 warrants expire Nov 22, 2010

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Unigold Inc. (UGD:TSXV)
10,516,000 common shares
1,500,000 warrants expire Dec 1, 2011

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Valencia Ventures Inc. (VVI:TSX-V)
14,884,000 common shares
4,700,000 warrants expire Nov 25, 2011