From Pescod:

July 17, 2009 e-mail: david_pescod@canaccord.com

EAST ASIA MINERALS (V-EAS) $1.09 -0.11
EVOLVING GOLD (V-EVG) $1.11 +0.16
HATHOR EXPLORATION (V-HAT) $1.88 -0.01
NEVSUN RESOURCES (T-NSU) $1.91 +0.20

On June 2nd, we wrote an article with David Coffin and
his three picks were Evolving Gold, East Asia Minerals and
Hathor Exploration. The charts kind of show you how Evolving
Gold and East Asia have done...with interesting drilling
results, they’ve both more than doubled in just the last couple
of weeks. Not bad!

Meanwhile, Hathor Exploration continues to be their and
our cross to bare...hopefully, we will have our day in the sun.
We tried to track down Dave Coffin this morning, but I
guess at 7:30 in the morning, it’s still sleepy-time. We will
have to give him some grief as you know the old saying, the
early bird gets the worm?

Eric Coffin though, was up and about and grabbing coffee
and very lucid in joking it was probably his ideas that Dave
was using anyway, so Eric, how about an update on those
three stories?

First of all about the market in general, he suggests that
he is surprised in some of the volumes being done on some
of the junior stories these days, particularly the volume on
Evolving Gold. Part of it, he suggests, might be just people
trying to trade their way to making a buck after being clobbered
in the markets before and the other part is probably
that we are witnessing the return of risk capital to the market.

On the Evolving, Eric suggests that the company probably
has close to 96 million shares outstanding, which gives
it a sizeable market cap, but he adds with the exercise of
warrants, they now probably have close to $20 million in the
bank, which is his estimate. “The targets are still big” he
suggests, so there’s a shot here for lots of ounces in the
ground.

On the East Asia, he suggests he’s surprised that it has
taken so long for the market to discover this story. First of
all he points out that management has done well for shareholders
over the last while, including uranium plays in Mongolia
that they managed to sell to AREVA and dividend out
big chunks of money to shareholders earlier in the company’s
history. Now they are exploring, he suggests, over
three kilometers of channels and the drilling results just announced
recently of 20 metres of 80 grams is the stuff that
makes an explorers day.

As far as comments on Hathor, which has been a big
disappointment to many of us, he suggests “I think people
have been choosing gold/speculative stocks recently and a
lot of the spec money has simply left the Hathor story.”
But he asks “What could people not find interesting about
recently announced results?”

He assumes that there are going to be some additional
good drilling results coming out shortly. (We talked to
Hathor’s President today, Steve Stanley, who expects results
around late August).

As far as the excitement that could be generated with
Denison over the little debate Hathor stirred up about trying
to buy out Northern Continental, Eric mentions that
Hathor has always liked this project and if it does have
something that continues on from the Denison discovery,
this could become interesting.

Okay, back to the question of the day—the major
one...Eric, if you could only buy three stocks today, what
would they be? He picks East Asia as still his number one
pick and puts a new one in as his second choice and that’s
Nevsun Resources. Nevsun just announced that they’ve now
got their Bisha mine financed in Eritrea, which means they
will be a producer just a year or so down the road and having
real cash flow attracts a different type of investor...
usually at higher prices. Eric assures us he is not concerned
about politics in Eritrea. As a third pick, he goes
with Evolving Gold.

As for Hathor, he suggests as drill results come in, there
is no reason for them not to be good and with their wheeling
and dealing, it could force Denison to offer counteroffers
on the Northern Continental. He reminds us that
Roughrider is much more important and when results
come out, it should give the stock a lift. He also suggests
that the spec guys should start jumping back in and suggests,
“I would be disappointed if Hathor doesn’t double
from here. (Bart Jaworski of Raymond James put out a
very interesting report on Hathor today looking at the implications
of the Northern Continental deal and maintains a
$6.10 target).

Meanwhile, we always enjoy the work of the Coffin
Brothers. We met Dave climbing mountains in Mexico on
an inspection tour years ago...the hill was much too steep
for someone of our physique. But Dave roams the world
looking at projects while Eric checks the bookwork at
home. They are giving anyone who reads our stuff a deal
on the Hard Rock Analyst. For a short-term look at their
work—The Hard Rock Analyst, you can pay half the fee.
Contact hardrock@h-r-a.com.

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