Pescod Talks about...

HATHOR EXPLORATION

(V-HAT)

On Tuesday, December 15th, Hathor Exploration an-

nounced that all of their permits have been received for

what they describe as an “Aggressive Winter 2010 Dia-

mond Drill Program” on its Midwest Northeast Property in

Northern Saskatchewan.

It’s expected to start in early to mid-January and com-

prise 80 holes with a total of about 26,000 metres. Ac-

cording to their news out on Tuesday, they suggest that

the drill program will have three objectives:

•

Infill and step out drilling on and around the partially

outlined Roughrider Zone, with a focus on increasing

the mineral estimate by targeting the very high-grade

U308 zones.

•

Extensive testing of the area around the newly identi-

fied high-grade mineralization in drill hole MWNE 09-

170 which is located on land approximately 200 me-

tres to the east of the Roughrider Zone and lies within

a zone of strong alteration, similar to that of the

Roughrider Zone.

•

Reconnaissance drilling of other targets elsewhere on

the property, including further testing of another zone

of alteration about 1.2 km ENE from the Roughrider

Zone.

Which is all good and Hathor has definitely come up

with a very significant discovery. What’s wrong? Well,

the price of uranium for sure. What would gold stocks be

doing if gold was $500 an ounce and that is Hathor and

other players in the sector big problem. After a huge run

in uranium two years ago, uranium prices have gone no

where but down lately and it’s at a price level where most

producers don’t make any money.

With 52 nuclear plants currently being built, sooner or

later demand for uranium will rise and with used Russian

weapons running ever-lower, we are within two years of

seeing supply drop.

If a person could only know when the price of uranium

heads up, one would know when to start getting excited

about the sector.

Hathor President Steve Stanley tells us they expect to

be drilling by mid-January with two rigs going on the

Roughrider Zone and two rigs around hole 170.

As far as stock picks, he still is fan of Corex Gold

(CGE) and suggests when they start drilling in January,

they too should create interest.

BANKERS PETROLEUM

(T-BNK)

$5.81 +0.16

It seems like it was in a different time frame, but way

back in February when the world was in the middle of one

of the worst financial crisis’ ever, there we were, in Alba-

nia and ever since for this year, Bankers Petroleum has

been our favorite story.

Hard to believe things have gotten better, even better

than company President Abby Badwi thought...Bankers is

now an eight-bagger off its low.

As we look forward to the New Year, we have three

different oil and gas guys that have been very helpful to

us over the past year, all saying that there is one oil stock

we have to own for the coming year.

Clients, make sure you have all you need as we will

start writing it up extensively as we get into the New Year.

Bankers Petroleum Ltd. (BNK)

As of December 15th, 2009 Filing Date Transaction Date

Insider Name Ownership Type Securities Nature of transaction # or value acquired or disposed of Unit Price

Nov 27/09 Nov 17/09 Cobo, Leonidha Direct Ownership Options 50 - Grant of options 100,000

Nov 19/09 Nov 18/09 Cross, Robert Melvin Douglas Indirect Ownership Common Shares 10 - Disposition in the public market -500,000 $5.021

Nov 19/09 Nov 18/09 Cross, Robert Melvin Douglas Indirect Ownership Common Shares 10 - Disposition in the public market -500,000 $5.030

Nov 03/09 Nov 03/09 Christensen, Hans Eugene Indirect Ownership Common Shares 54 - Exercise of warrants 3,333 $2.490

Nov 03/09 Nov 03/09 Christensen, Hans Eugene Indirect Ownership Warrants 54 - Exercise of warrants -3,333

Oct 29/09 Oct 26/09 Cross, Robert Melvin Douglas Indirect Ownership Common Shares 90 - Change in the nature of ownership 600,000

Oct 29/09 Oct 26/09 Cross, Robert Melvin Douglas Indirect Ownership Common Shares 90 - Change in the nature of ownership -600,000

Sep 10/09 Sep 10/09 Harris, Jonathan Direct Ownership Common Shares 10 - Disposition in the public market -15,000 $2.160 GBP

Sep 09/09 Sep 09/09 Christensen, Hans Eugene Direct Ownership Common Shares 10 - Disposition in the public market -15,000 $3.950

Sep 09/09 Sep 09/09 Christensen, Hans Eugene Direct Ownership Common Shares 51 - Exercise of options 15,000 $1.050

QUEST URANIUM

(V-QUC)

LITHIC RESOURCES

(V-LTH)

Apparently they are whining a bit in the San Francisco

Bay area because the inland area got a little bit of snow in

the last couple of days. Oh goodness! Here we are in Ed-

monton which apparently was one of the coldest places in

the world recently, hitting the minus 40’s and with the wind-

chill of minus 50! Please give us some of that global warm-

ing.

Which kind of gets us to John Kaiser who was up until

3:00 this morning publishing the latest issue of the Kaiser

Bottom Fishing Report. Hats off to John because he was the

first guy and one of the very few that still follows rare earths

and rare earths had a huge run earlier this year and a huge

correction, but now the good ones look like they are coming

back.

The issue that came out today is a very good look at Quest

Uranium, which is actually a rare earth play and over the next

4-6 months, John suggests there is going to be lots of re-

sults coming out that will give people a new look at the pro-

ject.

Meanwhile, John tells us that climate summits like now

going on down the road, could create much higher prices for

rare earth, if the demand is made compulsory by political

decisions. Quest is his pick in the rare earth sector. He is a

bull on gold and points out that it’s not just the crazies buy-

ing anymore, it’s left-wingers, it’s central banks, it’s every-

one and he points to $1.8 billion of gold ETF’s trading to-

day...amazing!

When we get to gold, if he could only buy one gold stock

today, he would stick with one that has really done well and

if you want to know what it is...give us a call.

One to watch he says, is a cheapie called Lithic Re-

sources (LTH). Meanwhile, as far as these markets that are

bouncing around like crazy, he says it like having your

Christmas tree with flashing red lights, flashing off and on

dramatically like these 200 point up and down days we’ve

been experiencing.

Pescod Talks about...

EAST ASIA MINERALS

(V-EAS)

$3.47 -0.36

KEEGAN RESOURCES

(T-KGN)

$6.65 -0.05

FORTUNA SILVER

(V-FVI)

$2.03 -0.04

Ah yes…the ongoing East Asia versus Keegan de-

bate...volume 12.

Yesterday we made an error or two making Jed

Richardson of Amazon, a CEO instead of VP while Lionel

Martin who is chief operating officer of East Asia was

called a VP. I’m sure he will forgive us...but anyway back

to the ongoing debate.

Lionel Martin updates us today with a note and a tech-

nical comment on some of the news and the way we

might have represented it yesterday.

He writes, “The added 100 metres potential was actu-

ally in the north-south direction. Previously it averaged

about 300m, now potentially 400m. The 1200m east-west

direction based on exploration to date has not

changed. The step out that we want to do to the east

once we get the drill pad sorted, is actually further east of

the 12A/13 drill pad. Hopefully we will get to that

next. Meanwhile we are drilling a southerly hole from the

12A/13 pad.”

Meanwhile today there is more sampling results and oh

my goodness, are they sweet! When we caught up with

Dave Coffin who along with his brother was a lone voice

out in the wilderness talking about this story when it was

$0.50, has now become one of the stories of the day, just

look at the volume.

He says the important development now is that as they

start working on these extensions to the main zone, he

reminds us that suddenly grade isn't quite as important to

adding ounces as it was before, now that they have found

some sweet spots. (Oh by the way, we ask Coffin for any

other stock ideas at this time and he suggests that the

brothers have been mentioning Focus Ventures (FCV) as

one of the stories to be nibbling away these days looking

for interesting results in the New Year).

Meanwhile today, Nicholas Campbell, the Canaccord

mining analyst who has been giving us stocks that have

doubled and tripled almost regularly lately updates

Keegan. He writes, “Keegan announced that it has ac-

quired the 10 square kilometer Mpatuom Concession on

the northwest boundary of the Esaase Concession. This

concession increases the company’s Esaase project hold-

ings to 87 square kilometers….and that this acquisition

continues to build upon the speculative resource expan-

sion potential of the Esaase land package.”

He ups his target on Keegan to $8.30 and we should

point out that many people expect sooner or later, Keegan

is bought out by one of the many players in the area such

as Red Back Mining.

When we corner Campbell today as to if he could only

buy one stock, what would it be now that Keegan has

done so well (a triple since he started to mention it) For-

tuna Silver Mines is his number one pick.

Today he writes, “Fortuna announced that the Secre-

taria de Medio Ambiente y Recursos Naturales (Mexican

Environmental Agency) has approved the company’s

application for a change of land use from agricultural to

industrial for the San Jose silver-gold project in the State

of Oaxaca, Mexico.”

He continues, “The approval of the change in land use

is the final permit required for the company to begin ma-

jor construction of the San Jose project.” His target on

Fortuna is $4.75.PREMIER GOLD MINES

We have written up Premier Gold Mines a couple of times

because there are more than a few thinking that it becomes

a takeover candidate in the New Year.

Today, despite the lower gold price, it hits new highs and

we caught up with President Ewan Downie at the Thunder

Bay airport. Why is it running, we ask? He answers that

there is a new research report out by Laurentian that has

taken a very good look at the company and dwells on the

fact that the company has as many as three potential com-

pany-maker projects. Downie adds that Doug Casey is also

now writing that the company is a takeover candidate, but

also Downie points out, the spectacular drilling results

they’ve had lately on their Hardrock project.

Downie expects them to be back at the Red Lake with

Goldcorp in the New Year with an aggressive program and

they should have five different projects being drilled early in

the New Year, giving them lots of news to be putting out.

The Laurentian report gave PG a $5.25 target and we are

owners of the stock and wouldn’t be surprised if that hap-

pened.