Welcome to the September 2008 edition of Murgor’s Monthly newsletter. This newsletter provides a summary of key exploration activities and management decisions that have taken place at Murgor during the summer months of 2008. An update on upcoming activities and thoughts about the industry at large are also provided.

A WORD OF INTRODUCTION:

Summer is an interesting and difficult time of year for mineral exploration companies that are active in Canada. Despite a flurry of exploration activities, it is only much later that results start trickling in and that conclusions can be drawn from field and compilation work. Consequently, summer news releases are typically rare. This lack of new results from the industry, combined with a general disinterest from investors and markets at large, traditionally result in a very quiet summer period.

The summer of 2008 was no different. In fact, the summer of 2008 was worse than usual. During the summer of 2008, the traditional slow-down of activity in the markets was compounded by a generalized instability in the world economy, fuelled in part by the raising price of oil, which translated in a lack of investor confidence and volatility in the market. Furthermore, a decrease in the consumption of metals and a slump in the price of commodities (from record highs) came as a result of the summer Olympic Games in China. All these factors adversely affected junior stocks and the resource sector in general.

Obviously, management teams of junior mining companies can’t control the markets or the world economy. Although we must keep an eye on these external factors, companies must focus on their long term objectives.

During the summer of 2008, Murgor did just that. Murgor has been advancing all of its exploration projects of the Flin Flon belt, with a particular emphasis on the Hudvam and Wim properties. Throughout the summer, Murgor has been working with Golder Associates to complete new 43-101 compliant resource estimates at the Hudvam and Wim deposits. Metallurgical study of the ore at both deposits is also underway and nearing completion.

On August 28th, Murgor released a new 43-101 compliant resource estimate at the Hudvam deposit where the increased size of the deposit and grade of the ore are very encouraging. At Wim, preliminary results were released on June 18th, 2008 and the results from a new 43-101 compliant resource estimate should be available within a week. Metallurgical results should also follow shortly thereafter.

Elsewhere in the Flin Flon belt, Murgor is currently working to evaluate and prioritize hundreds of new exploration targets, stemming from two helicopter-borne VTEM surveys in 2007 and 2008. More than 8,400 line kilometres were flown in total in Manitoba and Saskatchewan.

HUDVAM PROPERTY:

At Hudvam, the results of the new NI 43-101 compliant resource estimate were released on August 28, 2008. This new 43-101 resource estimate took into account the 51 new drill holes completed by Murgor in 2007-08 for a total of 13,553 metres. Results were highlighted by a 40% increase in the gold resource and the conversion of more than 70% of the resource to an Indicated category, relative to Murgor’s 2007 NI 43-101 resource estimate (February, 2007).

This NI 43-101 compliant resource estimate does not include Murgor’s new discovery of Hole 44 where 2.17 g/t Au, 1.11% Cu, 0.76% Zn and 13.30 g/t Ag over 5.82 metres were intersected between Zones 1 and 3 (see figure below). This new zone is situated 275 metres away from the known mineralization and demonstrates the potential for growth at Hudvam.

Murgor’s near-term follow-up work at Hudvam will include a drill program to better define the potential new lens intersected by hole 44, between Zones 1 and 3 and to further test a new mineralized horizon in the stratigraphic hangingwall of the current mineralization.

INDICATED CATEGORY

* Copper equivalent grade base on US$1.75 per lbs Copper, US$0.80 per lbs Zn, US$700 per oz Au and US$10 per oz Ag.
** Figures rounded to nearest 1,000.

INFERRED CATEGORY

* Copper equivalent grade base on US$1.75 per lbs Copper, US$0.80 per lbs Zn, US$700 per oz Au and US$10 per oz Ag.
** Figures rounded to nearest 1,000.

WIM PROPERTY:

At Wim, Murgor has been working with the consultants of Golder Associates to complete a new NI 43-101 compliant resource estimate. The results of this study are expected within a week. Metallurgical work is also underway and is scheduled for completion shortly.

In June, as a preamble to the new 43-101 compliant resource estimate, Murgor released its estimate of the additional new potential at the Wim deposit, taking into consideration the additional 61 drill holes completed by Murgor in 2007-08 for a total of 18,271 metres. Although the estimate calculated internally at Murgor is not 43-101 compliant, it is an indication of how the deposit has grown since Murgor’s acquisition. A minimum of 50% increase of the resource compared to Murgor’s 2007 43-101 resource estimate.

Elsewhere at the Wim property, Murgor is currently evaluating drilling targets stemming from a helicopter borne VTEM survey. These targets are generally located on ground that is owned 100% by Murgor. Murgor is also planning to follow-up an drill intercept from its 2008 drilling located 1.5 kilometres away from the deposit, on the mineralized horizon that hosts the Wim deposit. Drill hole WZS08-044 intersected a 3.51 metre thick horizon of disseminated to semi-massive sulphide grading 3.11 g/t Au and 0.29% Cu.

IN CLOSING:

This last year, Murgor focussed much of its efforts in advancing and upgrading its copper-gold assets in Manitoba: the Wim and Hudvam properties. The price of copper and gold, and the high demand for quality copper concentrate have made these projects very attractive. So far, Murgor has reached its milestones on time, on these important projects, with results that are extremely rewarding. In August, Murgor released the new resource estimate at Hudvam and the new resource estimate at Wim should follow within a week.

About the market’s appetite for the junior mining sector… it looks like investors have a bit of indigestion! A compilation of the ten companies that are active in the exploration of massive sulphide deposits in the Flin Flon Belt, including a producing company such as HudBay Minerals, shows that the share price of all these companies is down by 63% to 86% from their 52 week highs. On average, these companies are down by 75%. The news is not all bad, however, since most financial and mining analysts predict a recovery in the fall of 2008 and a shortage of base metals starting as soon as 2010.

Management at Murgor believes there is always appetite for quality!