generalsleadingtheway

    We know that everybody here is familiar with the investment thesis regarding uranium. Our position
has been and continues to be that the investment thesis remains intact. As additional support for our
current bullish stance on the uraniums we draw upon our years of stock market investment experience
and observations that we have learned along the way.

   At the inception of most bull market moves, regardless of industry, investment capital moves into the
leaders because by definition they are usually the largest and best capitalized companies and their
equity is in most cases highly liquid. In our case, that means Cameco, specifically as a pure play, and
BHP Billiton, more generally. As you recall, they were the main beneficiaries (speaking in investing
terms, not operational) when the uranium price first began to increase. We are pleased to note that our
work shows the price of Cameco has bottomed and has recently broken through both its 50-day and
200-day moving averages. In recent trading, the stock has since fallen below the 200-day level, but
remains nearly directly between the two as we write. BHP Billiton also hit a recent high in Australian
trading recently.

   This has bullish implications for the emerging leaders and junior exploration companies that we follow.
Just as the large industry leaders are the main initial beneficiaries, at the start of new bull markets so too
are they the initial beneficiaries after those violent periodic bull market corrections (such as the one we
just experienced). We think the price action of Cameco and BHP Billiton are giving us the "all clear
signal" for all stocks. As an aside, although we use Cameco as a "beacon" or proxy for the uranium
market in general, we remain wary of further delays at Cameco's Cigar Lake Mine. Therefore we
continue to prefer those uranium companies moving forward with bringing production online and moving
forward with plans for projects to come online in the near future.