INTRODUCTION & DISCLAIMERS

This is Jay Taylor speaking for Taylor Hard Money Advisors (“THMA”), publisher of
J Taylor’s Gold, Energy & Tech Stocks newsletter as of December 10, 2010. Our weekly telephone
Hotline messages are normally recorded after the close of business as early as Friday night or as
late as Saturday afternoons unless otherwise notified.
As always, all monetary quotes mentioned in this Hotline message are in U.S. dollars unless otherwise
noted. The opinions expressed in this message are those of Jay Taylor only and they do not necessarily
represent the opinions of Taylor Hard Money Advisors, Inc., the publisher of J Taylor’s Gold, Energy
& Tech Stocks. The management of THMA may, from time to time, buy and sell shares of the
companies recommended in J Taylor’s Gold, Energy & Tech Stocks newsletter and in this Hotline
message. No statement or expression of any opinion contained either in this Hotline or in J Taylor’s
Gold, Energy & Tech Stocks newsletter constitutes an offer to buy or sell the securities mentioned
herein.

Our Philosophical Approach to Investing, Business, & Life in General

“Come now, you who say, ‘Today or tomorrow we will go to such and such a town and spend a year there, doing business and making
money.’ Yet you do not even know what tomorrow will bring. What is your life? For you are a mist that appears for a little while and
then vanishes. Instead you ought to say, ‘If the Lord wishes, we will live and do this or that.’ As it is, you boast in your arrogance; all
such boasting is evil. Anyone, then, who knows the right thing to do and fails to do it, commits sin.” (James 4:13-17)
INDEX
This week on Turning Hard Times into Good Times, Lt. General Boykin talks about evolving communism in America 2
Fed’s QE Ponzi Scheme begins to Backfire by Gary Dorsch 3
Gold and Silver could go Exponential Soon – James Turk talks about what Backwardation means in these markets 4-5
Our Inflation/Deflation Watch. Close to a new high while silver to Rogers ratio is amazinglystorong 5-6
Watch the Long Bond for Inflation or Deflation Clues. Bull market still in place but for how long? 6-8
Our Model Portfolios – Up for the year, but our deflation hedges hurt for now. Will they in the future? 8
SELL RECOMMENDATION – North American Gem 9
A New Mine Company Progress Grading System: 9
DYNACORE GOLD MINES INC. Stock pick of the week. Growing cash flows and a shot at a major gold/copper deposit 9-12
Headline News from Stockwatch: Allied Nevada, Goldrich Mining Co., Alexco, Barkerville, Paramount Gold, Xtra-Gold 12-14
Takara, Niogold, Golden Hope, Clifton Star, Sphere Resources 14-16
Trader Rog’s Corner 16-17
What is Chen Buying? What is Chen Selling? 18
Ron Paul’s Texas Straight Talk: Focus on the policy, not Wikileaks 19-20
Brokers who can buy Canadian Stocks 20
Portfolio Scorecard 21-22

Jay Taylor’s Upcoming Speaking Events

January 22-23 – Vancouver Resource Investment Conference
February 18-19 – Phoenix Investment Conference
April 9-10 – Calgary Resource and Clean Energy Investment Conference
April 15 – Chicago Resource Expo – Rolling Meadows Holiday Inn, Rolling Meadows, Ill.
April 22-23 – Phoenix Wealth Protection Conference Sponsored by Pat Gorman
May 16-17 - New York Hard Asset Conference
June 5-6 – Vancouver World Resource Investment Conference

Chen Lin has turned $5,400 in January 2003 into $1.3 million by Nov. 30,
2010. Chen usually sends out two or more short, succinct and well reasoned
buy and sell recommendations per week to his paid subscribers. Call Claudio
Bassi for more information at 718 457-1426
TRADER ROG (Roger Wiegand) has had a red hot hand with winning commodity and financial
market trades. Check out Roger’s work at WWW.TRADERTRACKS.COM Call Claudio Bassi for more
information on Roger’s letter at 718 457-1426.
Go to http://goldmoney.com/?gmrefcode=jtgts for more information and to read James Turks
frequent essays on the gold and other key markets.
1
This Week on Turning Hard Times into Good Times

Special guests in Turning Hard

Times into Good Times thus far:
Addison Wiggin, Adrian Day, Adrian
Douglas, Al Korelin, Ambar Dakar,
Andre Julian, Arch Crawford, Bill
Lagner, Bill Murphy, Bill Rounds,
Bob Hoye , Brent Cook, Brian Rich,
Burton Folson, Jr., Catherine Austin
Fitts, Chen Lin, Christophe Nijdam,
Chris Powell, Congressman J.
DioGuardi, Congressman Ron Paul,
Daniel Estulin, Dave Corsi, David
Franklin, David Morgan, David Tice,
Dick Bove, Dmitry Orlov, Ellen
Brown, Eric Sprott, Frank Holmes, G.
Edward Griffin, Gijsbert
Groenewegen, Howard Davidowitz,
Hugh Ross, Ian Gordon, Ian
MacDonald, Ian McAvity, J.M.
Schuler, James Perloff, James Turk,
Jeff Deist, Joe Eskenazi, Joe Nuyten,
John Hathaway, John Loftus, John F.
McManus, John Perkins, John
Truman Wolfe, John Williams, Kathy
Fettke, Kevin Duffy, Larry Parks,
Laurence Kotlikoff , Lou Scatigan,
Marc Faber, Martin Gross, Matthew
Simmons, Michael Panzner, Mike
Larson, Mish Shedlock, Pat Gorman,
Paul Michael Wihbey, Peter Grandich,
Richard Maybury, Rick Rule, Rob
Kirby, Robert Blumen, Robert
McHugh, Robert Prechter, Roger S.
Conrad, Roger Wiegand, Ron Perry,
Sean Brodrick, Trace Mayer, Wendell
Cox, William Baker and William
Hathaway.

We have many more exciting guests

coming your way as well as some
exciting gold mining company
executives every week.

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 Fed’s QE Ponzi Scheme begins to Backfire

Gary Dorsch
Editor Global Money Trends magazine
Posted Dec 9, 2010

Richard Russell pass the following explanation of the crime committed against the American people by the
Federal Reserve and the other members of the ruling elite. I think this is a very accurate account of what has
happened and unfortunately what continues to happen.
“In a taped interview with CBS’ “60 Minutes” that aired on December 5th, Federal Reserve chief Ben
“Bubbles” Bernanke tried to brainwash the American public, into believing that “Quantitative Easing” (QE), is
absolutely necessary in order to prevent further losses of jobs, and tried to assure his listeners that he has the
skills to keep inflation under control. The US-jobless rate would have risen far higher, “something like it was in
the Depression, at 25%,” -- had the Fed not provided tens of trillions in loans to Wall Street banks and other
financial companies, he said.
“Two-years ago, the Wall Street Oligarchs played the central role in the greatest financial scandal in the history
of the world, - one which wiped out tens of trillions of dollars in wealth, nearly bankrupted giant corporations
and entire countries, and plunged the world into the deepest slide in global trade since the Great Depression.
Huge profits were made in sub-prime mortgages, based on a Ponzi scheme of exotic financial derivatives and
sliced packages. When it came crashing down, the public treasury was looted to cover the financial aristocracy’s
losses.
“Since then, the Fed has carried out QE-1 between March 2009 and March 2010, in which it bought $1.45-
trillion in mortgage-backed securities and $300-billion in Treasuries. Together with pegging interest rates at
zero-percent, weakening the US-dollar, and flooding the stock markets with cheap credit, - the Fed enabled US
banks and S&P-500 companies to record bumper profits, even as they slashed jobs and capital spending, and
suffered revenue declines.

“With QE-1, the Fed channeled interest free money into the coffers of the Wall Street Oligarchs, which in turn,
was used to buy higher yielding Treasury bonds. In a single stroke, the Fed monetized the US-government’s
debt, and at the same time, bankers earned double or triple the interest rate at which it was borrowed. They
pocketed billions under the scheme. Wall Street banks also bought high-grade corporate and junk bonds, and
emerging market bonds, to fatten their profit margins. At the end of the day, QE-1 was utilized to recoup the
gambling losses of the financial aristocracy, and created fertile conditions for driving-up equity markets.”

Because of the non sense from the Federal reserve in continuing to expect it can overcome the natural laws of
economics, the gold and silver prices continue to rise very dramatically. But perhaps not nearly as dramatically
as they might rise in the near future if James Turk is right.

James notes that confidence in the futures markets because of rising doubts about counter party risks. People are
wanting to hold the metal itself rather than buying a futures contract which is nothing more than a promise to
pay gold or silver (or whatever the commodity) at some future point in time. We also think you have to pay
close attention to the Long dated U.S. Treasury markets. As we suggest below, a rise in long term rates may be
suggesting a fears of rising inflation and thus a decline in confidence in the dollar by a growing number of
market participants. However, looking at the long term charts, the bull market in this fraudulent paper money
scame appears to remain in place until at least two support lines are broken through. (see below)
3
 Gold and Silver Could go Exponential Soon

Could gold and silver go exponential any time soon? After reading James Turk’s excellent article titled, “The
scramble for physical metal intensifies,” I think we could be on the cusp of a dramatic rise in the price of
gold. You can read this article at http://www.fgmr.com/scramble-for-physical-metal-intensifies.html . Turk’s
basic argument hinges on the unusually prolonged anomaly in the futures markets known as “backwardation.”
That simply means the price of physical gold is higher than the futures price as determined in the futures
markets where buyers and seller come together to set prices for a promise to trade a commodity at some future
date. During normal times, due to the time value of money, if you agree by way of a contract to buy gold in the
future, you pay more than if you buy the physical metal immediately. As the charts above show, the same thing
is taking place in that other “wealth quantification” metal, namely silver.

4
But these are not normal times as Ben Bernanke and other policy “wonks” are quick to admit. Not only are
currencies being cheapened by their endless and infinite creation, but debt problems also continue to grow the
more the policy makers seek to manipulate the markets. And that growing indebtedness is leading to fears that
contractual sellers of gold might fail to deliver the physical metal when the futures contract calls for delivery.

Most people who play the futures markets are speculating on one side or the other of the market. Up until now,
most of these players simply sell their contracts for profits or losses. Only a small percentage of market players
actually call for delivery. But with a loss of confidence in the counterparties, a growing number of market
players are saying they want “the real thing” rather than simply flipping into a new contract to buy gold or silver
into the future.

The trouble is, there is not nearly enough gold or silver in the world to meet the potential demands of these
paper speculators as has been well documented by GATA. That’s why, if there is a huge demand to take
delivery of the physical gold and silver, the prices of these metals may not have any ceiling, just as the quantity
of Bernanke’s fiat money has not limits.

If that happens, I would expect it to coincide with a massive loss of confidence in Ben Bernanke’s QE2 program
as well as subsequent QE programs he may engage in. Once the masses lose confidence in uncle Ben, then I’m
guessing the precious metals markets go absolutely berserk. That would create instability for sure so it’s not at
all what I want to see. But to be aware of the potential for this to happen is very important so you don’t get
caught waiting for a significant correction to buy more gold, only to find its price skyrocketing out of control.

One thing I do know is that there is such an enormous number of trillions of dollars worth of currencies floating
around that when confidence is lost in governments and their currencies worldwide, we will see the mother of
all gold and silver markets. The very, very bullish chart shown at the start of this article, which plots the average
gold price each month, will look like a flat line when connected to the kind of move we could see. In my view a
blow off in the nominal price of gold would be accompanied by a massive inflationary problem, which would
also be the worst of all worlds because, given the massive indebtedness, the economy and employment would
remain in dire straits while the cost of everything would rise and the purchasing power of anyone who doesn’t
own gold or silver will plunge. We want to be ready for this event, should our IDW continue to hit new highs as
it currently appears ready to do.

OUR INFLATION DEFLATION WATCH

Our IDW closed the week at 146.21. That’s still
a hair under its all time high of 146.62 on June
6, 2008. But Bernanke has his money printing
machines blazing hard and so far it is working
in the sense that it is driving basic commodity
prices higher. There is virtually no evidence that
all of this newly created debt money is leading
to real economic growth. Rather in my view, it
is leading to more bubbles and excesses that
will lead to an even greater depression when the
system experiences the mother of all
deflationary implosions.

We often talk about how the real price of gold has risen since the Lehman Brothers default in September of
2008.

5
I make the point every week how the real price of gold is leading to rising gold mining profits and that I am sure
this the buying opportunity of a lifetime for gold mining stocks.

But what about silver? As you can quickly see from the charts above, silver has had an even more dramatic rise
relative to the Rogers Raw Materials fund than gold has had, especially since our IDW began to rise from the
bottom in March of 2009. Back in 2005 when we first started to calculate our IDW, an ounce of silver would
have purchased only slightly more than ½% of the Rogers Raw Materials Fund whereas an ounce of silver will
now buy nearly 2.5% of the fund. Stated differently, it took nearly 180 ounces of silver to buy one unit of the
Rogers Raw Materials Fund back in 2005. Now it takes only about 40 ounces to buy a unit of that fund. That’s a
78% increase in the real price of silver relative to the Rogers Raw Materials Fund.

By comparison, an ounce of gold would have purchased only about 15% of the Rogers Raw Materials fund
back in 2005. It skyrocketed to 44% in March 2009 following the Lehman Brother’s failure. An ounce of gold
currently buys about 38% of the Rogers Fund. That is a very substantial rise in the purchasing power of gold to
be sure. But gold’s purchasing power from 2005 to now has risen “only” about 2.5 times compared to a 4.5
times increase for silver’s purchasing power.

Will this trend continue? I believe as long as our IDW continues to rise, and thus measure an inflating system,
silver will continue to outperform gold. However, if/when we get the next major deflationary implosion—and I
think that is only a matter of time—gold will likely outperform silver as it did immediately following the
Lehman Brothers failure (note the sharp increase in Rogers/silver from about 65 oz. to 120 oz. from Sept. 2008
through March 2009).

This rise in silver during the inflationary expansion of the system compared to its contraction during the
deflation of the system illustrates why it makes sense to hold both of these wealth quantification metals. And
one of the best ways to own both is through the Central Fund of Canada which I personally own and hold in my
IRA.

Watch the Long Bond for Inflation or Deflation Clues

I have not talked much recently about the Long Bond market, but if there is one clue that tells you people are
getting worried about inflation, it would be a tanking long dated U.S. Treasury market.

6
The 30-Year U.S. Treasury has displayed waterfall tendencies of late, as you can see in the chart on your left.
Those who advocate that the Bernanke money pumping will result in inflation like to suggest that’s what the
action in this huge and most important market is signaling.

Perhaps they are right. But if you step back a bit and look at the long-term picture, I do not think you can say
with any clarity that the bull market in bonds, ridiculous as it may seem, is yet over.

This longer-term chart of the 30-Year

U.S. Treasury dates back to 1988.
Actually the bull market in long dated
U.S. Treasuries dates back to about
1982 when the Volcker Fed pushed
interest rates well into double-digit
territory. My first mortgage in 1981, for
example, had a 17.5% interest rate price
on it. And we were not allowed to pre-
pay for a number of years!

Those rates rose during the time that

Ian Gordon has identified as the
Kondratieff summer in the current
cycle that began in 1949. Then came
the Kondratieff fall, which is the “feel
good” time of the “year.” It was during
that timeframe that the bull market in
bonds and a secular decline in interest
rates took place. Rates really fell hard,
however, since the Kondratieff winter
got underway and especially in 2008,
when bond prices surged (rates
plunged) following the Lehman
Brothers collapse.

Plunging rates during a disinflationary

period or during a deflation makes
sense. I don’t know how many times in
the past I felt like the bond market
“had” to tank. Yet it has not done so.
Notice the base trend lines on the chart
above. The bull market accelerated
during the credit problems of 2008 and
2009 and then, with the announcement
of quantitative easing (i.e., printing
money), the bond market surged to new highs by midyear this year. But how can you say the bull market in
bonds is over, based on the trend lines above? The 30-year bond has not yet even touched the accelerated trend
line that began in 2007.

There is talk about the bond vigilantes coming back, as they did in the 1970s. If they do, they will be saying
with conviction what most gold bugs of the inflationary persuasion are saying, and that is that inflation is
getting out of hand. Now, I will be the first to admit that the government’s inflation numbers are phony and are
understating the real inflation. It is much, much higher than they are acknowledging. But also keep in mind that
7
despite the enormous amount of money creation, we don’t have anything like the levels of inflation we had
during the 1970s. And frankly, I think that is because of the countervailing deflationary pressures that continue
to build as a result of the exponential debt burden. Ironically, but totally logically, as Bernanke pumps money
into the system, he is also pumping more debt into the system.

Yes, I know the risk trade has been back on, and it will stay on until the next major calamity gets underway that
threatens to take the global money system down. And that calamity is, in my view, inevitable and more likely,
not less likely, with each new installment of “QE,” because that nonsensical policy does not add wealth or even
much, if any, cash flow . . . while the debt burden rises dramatically.

OUR MODEL PORTFOLIOS

J Taylor's Model Portfolio as of: 12/10/2010 J Taylor's Low Budget/Low Maintenance
Category Weight YTD Gain Tot Gain Portfolio (LBLMMP) from Jan 1, 2003 through 12/10/2010
Progress "A1" Gold Producers 24.79% 63.79% 181.53% Category Weight YTD Gain Total Value
Spec.Mining Shares A1,A2,A3 * 35.84% 61.79% 156.23% World Prec Minerals Fund (UNWPX) 21.71% 25.32% $ 371.35
Uranium Stocks 4.38% 15.86% -0.79% OCM Gold Fund 34.76% 32.70% $ 594.70
Oil, Gas & Misc.Stocks 3.17% -16.12% -18.07% Prudent Bear Fund 21.18% -12.48% $ 362.30
Prudent Bear Fund * 20.88% -12.48% -28.70% Rydex Inverse Long UST RYJUX SOLD
Gold & Silver Cash (CEF) 10.93% 44.44% 168.87% Gold & Silver Cash (CEF) 12.51% 44.44% $ 214.01
Rydex Inverse Long UST Fund * SOLD Van Eck Nuclear Energy ETF 9.84% 13.64% $ 168.37
J Taylor's Model Portfolio 100% 32.13% 335.29% J Taylor's LBLMMP Portfolio 100.00% 15.46% $ 1,710.73
S&P 500 11.24% -14.68% S&P 500 11.24%

Our model portfolio gain of 32.39% so far this year has clearly been bolstered by the strong showing of our
gold and silver mining stocks. Our Progress A1 stocks (producers) have collectively gained nearly 66% while
the more junior companies are up 61.22%. The gain of 44.44% in CEF (gold and silver bullion fund) also added
to our average so far this year. In the miscellaneous section, our one coal stock and our one medical stock have
been losers. And quite expectedly while the system is expanding the Prudent Bear Fund has cost a bit of upside
too, especially given a weighting that is still over 20%.

Yet, how can anyone really believe the expansion of this system can be real and lasting when it is so artificial?
Wealth is not being created by printing money. It is only being redistributed to Washington and Wall Street.
Main Street continues to hurt big time. Luxury stores are doing well as a small upper class from the banking
community and government do well as they continue to squeeze common folks who shop at Wal-Mart.
Manipulation of markets cannot work. In fact the manipulation that is taking place I believe is deflationary
because the raw material used to create fiat money—debt—continues to rise exponentially while the “benefits”
of its creation is resulting in only miniscule growth in GDP.

Because I continue to believe another shoe will drop,

GRAND TOTAL 10-Dec-10
most likely sometime before mid 2011, I continue to
15.94% Equity Shorts (Bear +FAZ) BEARX hold a fair amount of my retirement portfolio in
14.67% Gold & Silver Bullion CEF shorting instruments (nearly 16% in BEARX and
46.45% Gold & Gold Shares FAZ) and nearly 22% in cash. These strategies have
77.06% Total Bear + Gold hurt my performance this year to be sure. But in my
0.25% Base Metals, Energy ( Incl. coal) view it is an insurance policy that doesn’t look wise
0.78% Medical Technology until the next bubble burst brings everything down.
21.91% Cash And given the nature of limits for bubbles, its difficult
100.00% for me to perceive an endless expansion of the good
times, unless and until policy markets finally allow
markets to allocate resources.

8
Sell Recommendation: This week I am recommending the sale of North American Gem at $0.94 for a 17%
loss. I have been looking at some very interesting energy and utility companies that provide great yields along
the lines provided by Roger Conrad who was a guest on my radio show a few weeks ago. Roger has a couple of
excellent newsletters that cover utility and energy stocks with strong yields. I feel many of these stocks are
relatively safe. I was about to recommend one this week, but they have risen in price to levels where I would
rather wait for the next decline in the equity markets to begin naming a few of these income producers now. I
would however, recommend that you go to http://www.voiceamerica.com/voiceamerica/vepisode.aspx?aid=50007 to listen
to some great ideas from Roger Conrad.

A New Mine Company Progress Grading System

For years, we have used the following schematic to place mining companies into various roughly defined
progress categories. A = Currently Operating, B=Not in operation but with pre-feasibility or feasibility study in
hand; C = No feasibility study but indications of a commercially viable mineral deposit. D= A mineral resource
not yet delineated but based on size of mineral bearing structures and early geological work, potential for
outlining an ore body appears good.

By this scheme we don’t mean to imply companies that are “C” or “D” companies are failures. Those ratings
have to do with their stage of development. But many companies never set out to become producers. Thus they
will never reach the “A” status and many won’t even strive to reach “B” status.

To help people who impulsively ignore companies with “C” or “D” ratings understand the message we are
trying to convey, I have chosen to begin using the following Schematic with definitions remaining the same:

A1 = for Producers (Formerly “A” companies).

A2 = for “Economic Valuation.” (formerly “B” companies).
A3 = for Resource Calculation (Formerly “C” companies).
A4 = for Grass Roots Exploration (Formerly “D” companies).

We have made adjustments to our Portfolio Scorecard according to this schematic in this week’s letter.
Stock Pick of the Week
Dynacor Gold Mines Inc.
Business: Exploration and custom milling production of gold
from Peru

Traded TSX: DNG

US OTC: DNGDF
Shares Outstanding: 30,214,285
Fully Diluted (+ $960,000 cash) 33,314,285
Institutional Holdings*: 59%
Price 8/13/10: US$0.32
Price 12/10/10: US$1.04
Market Cap: US$31.4 Million
2010 EPS (6 months): $0.03
Gold Resource (Historical non 43-101): 858,000 oz.
Progress Rating: “A1”
Telephone: 514-288-3224
Web Site: www.dynacorgold.com
Trapeze Asset Mgmt 18%, Sprott 14%, Malaga Inc. 12%, AGF Mgmt 10%, The Caisse 5%

9
I love this stock. It is a sleeper in the truest sense of the word. The following factors make this my favorite gold
stock at this time:

• The company has operating cash flows from custom milling in Peru, and those cash flows are growing
with the increase in the price of gold and increased gold production.
• The company the company has a couple of gold projects in Peru that, when mined and processed
through its mill, should lead to dramatically higher cash flows and earnings.
• The company also has a gold-copper skarn deposit that has a real shot at evolving into a world-class
gold deposit. If that proves to be the case, this company’s market cap could easily rise by 10- to 50-fold
from its current market cap of around $30 million.
• Minimum dilution risk owing to the company’s internally generated cash flows from its custom milling
activities.

The Acari Custom Milling Operation

At present the company owns and operates a 130-ton-per-

day mill on the Acari Gold Property. The head grade
being delivered to the mill is 0.77 ounces per ton and
recovery rates are in excess of 95%. This year the
company will produce more than 30,000 ounces of gold.
That compares favorably to the company’s guidance of
25,000 to 28,000 ounces that they gave earlier in the year.
On 30,000 ounces of production, the company will
generate about $6 million in cash flow this year, or about
$0.20 per share.

Keeping in mind that the company has under promised

and over delivered in 2010, I think their projections of
increasing production to 180 tons per day in 2011 and the
production of 45,000 ounces during 2011 carries some
weight. With that level of production, management is
suggesting the potential to generate $9 million in 2011
cash flow, or about $0.30 per share.

For 2012, management is projecting an increase in its milling operation to 250 tons per day and a production of
65,000 ounces. Given the same $200 per ounce of margin, Dynacor would generate $13 million in cash flow, or
about $0.43 per share of cash flow.

As good as these numbers are, we think they could get better. Management has built in a $200-per-ounce
margin for this business. But in fact, margins rise with a higher gold price, because Dynacor gets a percentage
of production for its own account. Hence, if you believe the gold price will continue to rise, you might
anticipate a rising margin. Indeed we have seen the margin per ounce of gold produced on the Acari Mine rise
from $133 per ounce in 2008 to $228 per ounce in the third quarter of 2010. And in fact, management has set a
goal of increasing its operating margin to $250 per ounce. Management is planning to mine some of its own
gold from this property where it has a historical 606,000-ounce vein hosted resource. It seems possible to me
that the company could improve its margins very considerably once it starts to partly feed the mill with its own
ore, which I understand it plans to do in 2011.

Management says that there is an abundance of high-grade gold ore available in Peru to continue feeding this
mill, which is located 428 kilometers southeast of Lima. The project is accessible by road and has been in
operation since 1998.
10
Tumipampa – The Flagship Property
In my view, Dynacor is a very undervalued stock just on the basis of its Acari milling operations. But where this
story gets really interesting and potentially very profitable for those who buy these shares now is in the
Tumipampa Property. Without a doubt, this is the company’s flagship property.
The Tumipampa is located between two other major mines, the Los Chancas held by Southern Copper and the
Las Bambas held by Xstrata. The Los Chancas has 355 million tons grade 0.62% copper and 0.04 grams/tonne
gold. The Las Bambas has 1.1 billion tonnes grading 0.77% copper and 0.06 grams/tonne gold. Note also the
red block on your left, where Antares was offered $450 million for its 3.7-million-tonne copper project.
What are the chances of Dynacor unlocking some great
value from its Tumipampa Skarn Deposit? It’s hard to say,
but the two diamond drill holes drilled in 2008 provide
some reason for hope. One hole scored 15.28 grams of gold
over 4.90 meters. A second hole graded 1.21 grams gold
over 4.90 meters.
Two drill holes does not make a mine. But two does
increase the probability. Moreover, if the skarn is
consistently mineralized throughout, it could be big. I say
that on the basis of the dimensions of this skarn, which
stretches 4.1 kilometers in length and 1.2 kilometers in
width.
Note that there is a western vein that is described as a
gold/copper skarn and an eastern section of the skarn that is
described as a copper/gold skarn, meaning that the western
portion appears to hold more value in gold and the eastern

11
more value in copper.
Tumipampa Vein System

In talking to management last summer when I first met with them, I was told that if this skarn deposit turns out
to be something big, at some point the company will seek a major mining partner to help it advance the project.
In any event, Dynacor has an advanced-stage gold vein deposit on this property. The property has a non 43-101
compliant resource of 252,000 ounces here, grading 2.732 grams/tonne or (approximately 0.087 oz/gold/ton).
Obviously these numbers could grow further with underground exploration. However, at the moment, the
emphasis is on the major upside potential from the skarn deposit.

It is my understanding that we could see some drill results from the skarn deposit before the end of the year. For
sure, we can expect to see results in the early part of 2011. If the markets begin to get a sense that something big
is being outlined here, I think we could see an explosion in this company’s share price. Keep in mind that the
float is very right. There are only 30 million shares outstanding to start with and 59% of those are held by
insiders, leaving only approximately 12.4 million shares in the float, if that—which is why when I talked about
this stock on BNN on Friday, its share price exploded. The stock is off its highs following my discussion on
BNN, but the story just keeps getting better. And that is why I purchased a few more shares myself this week
and figured it’s high time to share this exciting news with my subscribers.

Of course, I continue to urge caution when buying any stock. Stocks are risky. And as always, I think it wise
and prudent to cap your exposure to no more than 5% at time of purchase. However, I must say, based on what I
know about this company, which provides both security of cash flows and production and massive upside
exploration potential, it is my No. 1 pick at the moment.

Headline News from

Your editor keeps up to date with press releases by way of a subscription to Stockwatch. I find this service to be
reasonably priced and I know of none better for tracking Canadian stocks. You can build your own portfolio
here and prices are refreshed on an ongoing basis with a 15 minute delay. Go to www.stockwatch.com for more
information. Following are some of the more significant headlines for the companies we cover as presented at
Stockwatch this past week.

A1 Companies

Allied Nevada: Additional Metallurgical Test Results Continue to Confirm Milling

Recoveries of 87.3% for Gold and 82.2% for Silver
2010-12-02 06:30 ET - News Release - RENO, NEVADA -- (MARKET WIRE) -- 12/02/10
Allied Nevada Gold Corp. ("Allied Nevada" or the "Company") (TSX: ANV)(NYSE Amex: ANV) is pleased
to announce that is has received additional metallurgical test results from 24 composite samples for its Hycroft
mine located near Winnemucca, Nevada. The Company has compiled these new results in its metallurgical
model for milling oxide and sulfide mineralization. The model, which is comprised of 99 composites including
these new results, indicates average recoveries of 87.3% for gold and 82.2% for silver through a grind-flotation
(to create a concentrate)-cyanidation of tailings circuit.

12
EDITOR’S COMMENTS: The continued good news on not only gold but more importantly silver recoveries
is very, very good news for the long term value of these shares. I say that because this company may have the
largest silver deposit in the world. In fact its silver values are nearly equal to is gold values. However, with
current heap leaching operations, only around 10% silver recoveries are achieved. This is a company I believe
can ultimately produce over 1 million gold equivalent ounces per year plus silver from the Hycroft Mine in
Nevada.
A2 Companies

Goldrich Reports Block Purchase of Stock

2010-12-10 17:19 ET - News Release - SPOKANE, WA -- (MARKET WIRE) -- 12/10/10

Goldrich Mining Company (OTCBB: GRMC) ("Goldrich") reports that Northland Capital Markets,
headquartered in Minneapolis, Minnesota, successfully organized a group of investors to make a block purchase
of Goldrich shares held by a fund located in London. A total of approximately 6.4 million shares, representing
approximately 13% of the issued and outstanding shares of Goldrich, were purchased at a price of $0.23 cents
per share.

EDITOR’S REMARKS: The shares closed at $0.30 on this news. This is the best news this company has had
because a hedge fund that was forced to sell a large amount of stock has now been taken out of the picture. I
like this stock for its enormous upside potential as I outlined two weeks ago in this weekly report.

Alexco Completes Off-Take Agreements With Glencore, Initiates Concentrate Shipments

From Bellekeno Mine
2010-12-02 04:00 ET - News Release - VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) --
12/02/10
Alexco Resource Corp. (TSX: AXR)(NYSE Amex: AXU) ("Alexco" or the "Company") is pleased to announce
that it has entered into lead and zinc concentrate off-take agreements with Glencore Ltd., Stamford
("Glencore"), a branch of a wholly owned subsidiary of the Swiss-based international natural resources group
Glencore International AG. The signing of these agreements with Glencore is coincident with the initiation of
concentrate shipments from Alexco's newly commissioned Bellekeno silver-lead-zinc mine in the Keno Hill
Silver District, Yukon.

Alexco Discovers Extension of Bellekeno Deposit, Further Underground Drilling Planned

2010-11-30 08:16 ET - News Release - VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) --
11/30/10
Alexco Resource Corp. (TSX: AXR)(NYSE Amex: AXU) ("Alexco" or the "Company") is pleased to announce
that step-out surface exploration drilling conducted to the southwest of the newly commissioned Bellekeno
Mine has successfully located high grade lead-silver mineralization approximately 130 meters down plunge
from the existing Bellekeno resource. The Bellekeno deep drilling program was completed as part of Alexco's
planned 2010 25,000 meter drilling program in the Keno Hill Silver District in Canada's Yukon Territory. The
one drill hole for which assay results have been received targeted the silver rich "48" vein at depth and within a
stratigraphic sequence not previously tested at Bellekeno. For these reasons, the Company attaches considerable
significance to this new discovery.

13
EDITOR’S REMARKS: This is Chen Lin’s favorite silver stock and one of his most favorite stocks in the
world. I believe it will be a huge winner in the years to come not only from successful production but also from
its enormous still untapped exploration potential.

Barkerville signs Lhtako agreement for Bonanza Ledge

2010-12-09 09:59 ET - News Release - Mr. Frank Callaghan reports
BARKERVILLE AND LHTAKO DENE NATION SIGN PROJECT AGREEMENT TO DEVELOP
BONANZA LEDGE GOLD PROPERTY
Barkerville Gold Mines Ltd. has entered into a project agreement with the Lhtako Dene Nation (Red Bluff
Indian band) of Quesnel, B.C. The parties will mutually benefit in the development of Barkerville's 100-per-
cent-owned Bonanza Ledge property located in the Cariboo mining district of British Columbia.

A3 Companies

Paramount Gold Discovers High Grade Strike Extension of Main Palmarejo Mine Vein at
San Miguel
2010-12-09 09:51 ET - News Release
CHIHUAHUA, MEXICO -- (MARKET WIRE) -- 12/09/10

New drilling on the Don Esevein target on Paramount Gold and Silver Corp (NYSE Amex: PZG)(TSX:
PZG)(FRANKFURT: P6G) San Miguel Project has discovered the south southeast strike extension of the main
Palmarejo structural corridor that hosts Coeur d`Alene Mines (NYSE: CDE)Palmarejo Mine. The structural
corridor is partly obscured by younger volcanic rocks, but new drilling has intersected the target below this
cover.

Xtra-Gold Resources Corp.

West Africa Drilling Highlights Include Granitoid-Hosted Gold Mineralization Intercepts of

27.0 Metres Grading 4.03 Grams Per Tonne ("g/t") and 27.13 Metres Grading 2.12 g/t Gold
2010-12-07 08:52 ET - News Release - TORONTO, ONTARIO -- (MARKET WIRE) -- 12/07/10
Xtra-Gold Resources Corp. ("Xtra" or the "Company") (TSX: XTG)(TSX: XTG.S)(OTCBB: XTGR), is
pleased to announce gold assay results for six diamond drill holes, totaling 737 m, from the recently completed
Zone 2 drill program at its wholly-owned Kibi Gold Project, located in the Kibi Greenstone Belt ("Kibi Gold
Belt"), in Ghana, West Africa.

Takara completes phase I, II programs at Tassawini

2010-12-07 10:34 ET - News Release - Ms. Jennifer Boyle reports
TAKARA COMPLETES PHASE 2 FIELD PROGRAM CORE DRILLING TARGETS CONFIRMED FOR
TASSAWINI GOLD PROJECT

14
Takara Resources Inc. has completed its 2010 phase I and phase II exploration programs of prospecting,
mapping and sampling on the Tassawini gold project in Guyana, South America. Seven of nine geochemical
anomalies outside of the main Tassawini deposit were assessed on a preliminary basis over both programs
(August, 2010, and subsequently November/December, 2010) and initial assays have been received in part from
five areas, the most favourable results being from the Clutch anomaly, which returned values of up to 3.54
grams per tonne (g/t) Au (see table). Additionally, panned concentrates from mini-bulk samples were used as a
real-time exploration tool to localize on-site targets at surface and in the saprolite, and 40 out of 49 mini-bulk
samples returned visible gold ranging from one gold point to 217 gold points.

Niogold and Aurizon drill 3.2 m of 20 g/t Au at Marban

2010-12-07 09:28 ET - News Release - Also News Release (C-ARZ) Aurizon Mines Ltd - Mr. Dale Paruk of
Niogold reports
NIOGOLD AND AURIZON REPORT 20.44 G/T AU OVER 3.2 METRES AT MARBAN
Niogold Mining Corp. and Aurizon Mines Ltd. have released results from drill holes MB-10-108 and MB-10-
109 at the Marban block property located in the Malartic gold camp, Abitibi region of Quebec.

Golden Hope Mines starts drilling Laval's Mountain

2010-12-06 09:33 ET - News Release - Mr. Frank Candido reports
GOLDEN HOPE ANNOUNCES DRILLING AT LAVAL'S MOUNTAIN
Golden Hope Mines Ltd. has begun drilling the Laval's Mountain target located approximately nine kilometres
north of the Bellechasse-Timmins gold deposit. The company completed diamond drill hole BD2010-149, the
final 2010 exploration drill hole at Bellechasse-Timmins and moved the drill to Laval's Mountain on Friday,
Dec. 3.
Laval's Mountain is one of four major targets selected for drilling along the Bellechasse belt. The primary target
is Bellechasse-Timmins, which has been the focus of most of the historical and current drilling. Since April 13,
2010, the company has drilled 13,991 metres in 57 holes at Bellechasse-Timmins for which assay results from
31 holes remain outstanding. In addition to these holes, the company has also drilled 633 metres in three holes
at the Beland target also within the Bellchasse belt approximately six kilometres south of the Bellechasse-
Timmins gold deposit.

Osisko, Clifton drill 42 m of 3.38 g/t Au at Duparquet

2010-12-06 09:20 ET - News Release - See News Release (C-OSK) Osisko Mining Corp
Mr. John Burzynski of Osisko reports
OSISKO AND CLIFTON STAR INTERSECT 42 METRES AVERAGING 3.38 G/T AU AT DUPARQUET
Osisko Mining Corp. and Clifton Star Resources Inc. have released results from 21 additional holes from the
2010 drill program at the Duparquet project, located in the Abitibi region of Quebec. Significant intersections
from the new drill holes on the Beattie property include 41.6 metres averaging 3.38 grams per tonne (BD10-
320), 33.0 metres averaging 2.93 grams per tonne gold (BD10-321), 48.5 metres averaging 1.98 grams per
tonne gold (BD 10-316), 21.5 metres averaging 3.76 grams per tonne gold (BD10-312) and 68.7 metres
averaging 1.38 grams per tonne gold (BD10-319).
15
Clifton Star JV partner to spend $16.6-million in 2011
2010-12-06 08:57 ET - News Release - Mr. Harry Miller reports
CLIFTON STAR RECEIVES $16.6 MILLION BUDGET FOR 2011
Clifton Star Resources Inc. has received a $16.6-million exploration and development budget for the Duparquet
gold project in southwestern Quebec for year 2011 from Osisko Mining, its joint venture partner. Predicated on
the continuation of the attractive results from the 2010 campaign and a first quarter resource update, Osisko is
planning a 130,000-metre drill program along with metallurgical testing.

A4 Companies

Sphere to acquire McManus gold property in Ontario

2010-12-06 11:27 ET - News Release - Mr. Malcolm Stevens reports - SPHERE RESOURCES INC. (THE
"COMPANY") ENTERS INTO AGREEMENT TO ACQUIRE THE MCMANUS PROPERTY IN DOME
TOWNSHIP, IN THE RED LAKE MINING DISTRICT OF ONTARIO
Sphere Resources Inc. has entered into an agreement with Camp McMan Red Lake Gold Mines Ltd. of Red
Lake, Ont., to acquire 100-per-cent interest in 17 patented mineral claims and 11 licences of occupation,
covering approximately 325 hectares located in Dome townships, in the Red Lake mining district of Ontario.

Trader Rog’s Corner

Trader Roger Wiegand provides a weekly technical snapshot at key markets every week for this letter. Roger is
the editor of Trader Tracks newsletter, which you can subscribe to by going to www.Miningstocks.com

Dow Jones Industrial Average: Closed at 11,410.32 +40.26 on normal volume,

mildly rising momentum and a price effort to break through hard resistance at
11,450. Usually, if price goes through it happens on the third or 4th try. Number
three will be next week. We think it goes through and then new resistance is
11,450. Support is 11,400, which is a very strong number. The last 18 days’ chart
shows higher highs and higher lows. This coupled with the other patterns signals
more buying on Monday. The only thing that can spoil the rally until January
15th in our view is a congressional failure to pass the Bush tax cuts extension
before Christmas.

S&P 500 Index: Closed at 1240.40 +7.40 after a decisive breakout above hard
resistance at 1225. This index is faster than the Dow Average and when used with
the Nasdaq can offer some strong indicators. Volume is normal and momentum is
up. New resistance is 1250 (very hard) and support is 1225 (also very hard). We can see another 50 points
added on to 1250 if and when a breakout happens, taking the price to 1300 quite easily this month. Watch
for a cycle price rally peak on or about 1-15-11.
S&P 100 Index: Closed at 557.27 +3.33 and has decisively broken-up and through a bear double top. Volume
is normal and momentum is up. Price is above all moving averages, which is bullish. There are no lower trading
gaps and this is the third try on a breakout consistent with the pattern. We forecast the price can reach 575
resistance before the end of December.

16
Nasdaq 100 Index: Closed at 2215.34 +13.77 on 90% of normal volume and mildly rising momentum. It took
four tries to breakout of the 2200 hard resistance. The price bar close was high signaling more buying next
week. Price is above all moving averages and resistance is 2250, which is hard. The former resistance at 2200 is
now support. Price has also broken out of a congestion point where support and resistance channels could have
been a block. The intermediate price goal this month is a high of 2250 and we expect it to be there before
the Christmas holiday.
30-Year Treasury Bonds: Closed at 121.53 -0.53 as momentum continues to the cellar and price has been
dropping in a waterfall since a peak at the first of October. Yields have moved up this week and the drop was
from a high near 135 just two months ago. Price is below all moving averages and far below the 200-day
average at 125.02. With stocks continuing to rise and bonds weakening world-wide, look for hard support
at 120.50 and lower nearby support at 118.50. Expect 120.50 by the end of December.
Gold: Closed at 1386.00 -0.70 on flat to down momentum with a price remaining above all moving averages.
There is very hard lower support at 1350 with intermediate support at 1365-1375. Gold is selling in a five wave
correction on the daily chart instead of the usual ABC very mild correction. We could see a price drop next
week to 1350 or higher and would forecast 1375 as most likely for a new base. The next rally starting just
before Christmas time is expected to regain most of this month’s selling. We forecast gold to touch a
minimum of $1,407 and in all probability go to $1,424.50 with a chance at $1,448.50. The 2011 longer
main trend should be coming off a bottom in the first week of February with a steady rise toward June. If
gold can make a full Fibonacci move higher in 2011, we forecast $2,253.07 about one year from now.
Silver: Closed at 28.70 +0.01 as silver rallied from near $18 in August to over $30 this month. Momentum is
flat for now as silver has peaked and pulled back. However, the buying pressures have increased in the last ten
days and new support is 27.80 on the 20-day average, which I expect to hold-up. When silver begins the next
rally, watch for a breakout above 30.75 to $32.25. We have new silver forecasts all the way to $50.
Gold & Silver Index XAU: Closed at 223.45 +1.24 as momentum remains higher and more importantly, the
metal to shares ratio is rising but nearing a corrective peak at the top of the index. New support is 220 and
resistance is 232.50. Expect this index to pull back after one more try at a double top near 230. There is a cycle
top in the first ten days of January followed by selling into February. For next week, expect more buying with
another try at 232.50 with resistance at 225.00.
U.S. Dollar Index: Closed at 80.06 -0.01 on flat to sideways momentum. The price wants to stay near 80.00.
Price fell out of and below a former rising bull channel. However, all the moving averages are clustered at 79-
80 so we can expect little movement up or down next week. Expect the dollar to trade sideways in a
continuation triangle for a few days near 80.00. A recovery and move-up in the Euro would sell the dollar
but we expect the opposite and think the dollar will rise to 80.50 resistance with a chance at 81.50 for
about a week. This then would be followed by more selling back to 80.00.
Crude Oil: Closed at 87.75 just under the former trading range of 88.50 to 92.50. Price touched above 90 this
week but immediately dropped back to a lower support at 87.00. Momentum is flat to up and based upon new
inflation, colder weather and the current cycle, look for a December rally to 92.50 resistance. Next year, we
forecast unleaded gasoline could be $5 to $7.00 as a USA average. If so, oil would be $108-$110.

CRB: Closed at 314.89 +1.20 as the CRB double-topped at 320 and then consolidated at 315.00. Oil is the
driver and when oil resumes its rally as we expect the CRB will not only go back up to 320, but pass through it
to 340 on our forecast in about one month. Next year the entire commodity sector should bull and when the
larger markets within the group take-off, we are headed to new records. - Traderrog

17
 What is Chen Buying? What is Chen Selling?

Chen Lin is a brilliant trader. I challenge readers to find someone who is

better. We use his wife’s Roth Ira to measure Chen’s performance and it is
spectacular enough. The value of that IRA has grown from around $5,400
in on January 2003 to over $1.3 million by the end of November, 2010.
But even that spectacular performance pales compared to Chen’s leveraged account which he trades for himself.
Chen has privately told me that his personal leveraged account has grown by a factor of several fold over the
performance of his wife’s account. But of course with the leverage comes additional risk. So far, Chen has
proven to be remarkably nimble in exiting leveraged positions before it is too late. For example during the
disastrous year of 2008, Chen limited his loss on his wife’s IRA to a mere 5%.

Following is a record of Chen’s closed positions this year.

Chen's 2010 Closed Positions
North American Palladium N PAL One of two North American Palladium plays $ 3.50 11/16/09 $ 2.98 $3.50 0.00% 17.45%
Apollo Gold Corp. N AGT Gold & Silver producer in Montana & other stage projects
$ 0.44 2/3/09 $ 0.21 $0.44 0.00% 113.59%
Garson Gold Corp. T GG Gold Exploration and Production in Canada $ 0.12 10/21/09 $ 0.11 $0.12 -2.78% 9.81%
Golden Star Resources, Ltd N GSS Gold mines in Ghana $ 3.12 3/19/09 $ 1.51 $3.46 10.90% 129.14%
Skygold Ventures LTD. T SKV Large gold discovery in B.C. - high risk/reward $ 0.21 12/23/09 $ 0.21 $0.32 50.99% 50.99%
Uranium Energy Corp N UEC Low cost uranium producer $ 3.78 11/5/09 $ 2.96 $3.65 -3.44% 23.31%
Legend International Holdings N LGDI Phosphate rock $ 1.31 1/4/10 $ 1.31 $1.48 12.98% 12.98%
PMI Gold Corp T PMV develop high grade gold deposit in Ghana $ 0.15 10/21/09 $ 0.13 $0.13 -16.53% -2.16%
Allana Resources Inc T AAA Canadian potash company $ 0.33 11/5/09 $ 0.27 $0.34 2.99% 25.68%
North American Gem Inc. T NAG Coal exploration and production in Kentucky $ 0.16 1/8/10 $ 0.16 $0.12 -23.77% -23.77%
Yamana Gold Inc N AUY Medium Sized Gold Producer in CA and SA $ 10.41 1/28/10 $ 10.41 $11.16 7.20% 7.20%
ATP Oli & Gas Corp. N ATPG Deep water oil and gas driller-gulf of Mex & N. Sea $ 14.48 2/11/09 $ 14.48 $19.04 31.49% 31.49%
Linear Gold Corp T LRR Cash rich near term produce in SK, Canada $ 1.88 12/4/09 $ 2.00 $1.96 4.51% -1.72%
GigaMedia Limited N GIGM Provider of online entertainment software & services $ 2.90 2/2/10 $ 2.90 $3.18 9.66% 9.66%
Canfor Pulp Income Fund T CFX.UN Pulp Producer $ 10.81 3/3/10 $ 10.81 $12.45 15.13% 15.13%
Federal Agricultural Mortgage N AGM Federal Backed Lender to Agriculture $ 7.01 8/20/09 $ 7.73 $16.08 129.39% 108.02%
SFK Pulp Fund Units T SFK.UN Pulp Fund $ 1.05 3/3/10 $ 1.05 $1.91 83.03% 83.03%
Alexis Minerals Corp. T AMC Gold mining in Quebec province $ 0.42 6/19/09 $ 0.39 $0.32 -23.78% -18.47%
ATP Oil & Gas Corp N ATPG Development & Production of Oil & Gas $ 18.90 4/6/10 $ 18.90 $20.98 11.01% 11.01%
ATP Oil & Gas Corp (CALLS) N ATPG Sep Call 20 $ 2.63 4/6/10 $ 2.63 $3.80 44.49% 44.49%
ATP Oil & Gas Corp (CALLS) N ATPG Sept Calls 25 $ 1.16 4/8/10 $ 1.16 $1.90 63.79% 63.79%
ATP Oil & Gas Corp (CALLS) N ATPG Sept Calls 30 $ 0.51 4/8/10 $ 0.51 $0.87 72.28% 72.28%
Minemakers FPO AX MAK Mining phosphate rock $ 0.41 12/15/09 $ 0.35 $0.33 -18.74% -7.16%
Canfor Pulp Income Fund T CFX.UN Pulp Producer $ 11.98 4/14/09 $ 11.98 $14.84 23.87% 23.87%
Ithaca Energy Inc. T IAE Undervalued Canadian oil producer-North Sea wells $ 1.39 5/22/09 $ 0.55 $2.83 103.17% 419.96%
Northstar Healthcare, Inc T NHC Houston healthcare centers-no debt-undervalued $ 0.91 2/9/09 $ 0.52 $0.88 -3.94% 66.98%
North American Palladium Ltd. N PAL One of two North American Palladium plays $ 4.35 5/12/09 $ 4.35 $3.62 -16.78% -16.78%
Pelangio Exploration Inc T PX Value Gold Miner $ 0.22 5/12/10 $ 0.21 $0.20 -10.91% -6.67%
Resolute Mining Limited AX RSG Australian gold miner $ 0.93 12/8/09 $ 0.91 $0.85 -8.61% -6.53%
Baidu, Inc (SHORT) A BIDU Chinese & Japanese search engine $ 66.49 7/1/10 $ 66.49 $75.64 -13.76% -13.8%
Premium Exploration Inc T PEM Explore/Development in Idaho, Montana, Mexico $ 0.31 6/7/10 $ 0.31 $0.48 56.70% 56.7%
Jaguar Mining Inc. N JAG Gold mining in Brazil $ 8.10 8/6/10 $ 8.10 $7.37 -9.01% -9.0%
Rentech, Inc N RTK Alternative energy, fertilizer $ 0.93 7/26/10 $ 0.93 $0.83 -10.56% -10.6%
Gold Wheaton Corp. T GLW purchases gold by-product streams existing mines $ 2.17 9/10/09 $ 2.17 $3.55 63.51% 63.5%
Great Basin Gold T GBG Gold Prod. & exploration in Nevada & S. Africa $ 1.71 12/8/09 $ 1.67 $2.45 43.27% 46.7%
Evolving Gold Corp T EVG Gold exploration in western U.S. $ 0.76 7/7/10 $ 0.76 $0.88 16.81% 16.8%
Uranium Participation Corp. T U URPTF Uranium investment fund $ 5.69 7/19/10 $ 5.69 $6.20 8.96% 9.0%
Uranium Energy Corp N UEC UEC Low cost uranium producer $ 2.61 7/26/10 $ 2.61 $3.26 24.90% 24.90%
Allana Potash Corp. T AAA ALLRF Explore/Development of potash in Ethiopia $ 0.33 7/22/10 $ 0.33 $0.42 28.69% 28.7%
Bullion Monarch Mining, Inc O BULM BULM Gold royality company $ 0.79 9/30/10 $ 0.79 $1.65 108.86% 108.9%
ATP Oli & Gas Corp. (CALLS) N ATPG ATPG Nov 15 Calls $ 0.63 10/4/10 $ 0.63 $1.80 184.92% 184.9%
Toreador Resources Corp N TRGL TRGL Oil driller with large land position in France $ 9.73 9/28/10 $ 9.73 $14.13 45.30% 45.30%
Federal Ag. Mortg.(CALLS) N AGM AGM Federal Backed Lender to Agriculture $ 0.48 10/7/10 $ 0.48 $1.20 152.63% 152.6%
Magindustries Corp. T MAA MAAFF Extensive mineral, energy and forestry resources $ 0.32 8/3/10 $ 0.32 $0.35 8.01% 8.0%
Federal Ag. Mortg.(CALLS) N AGM AGM November Calls $ 0.48 10/7/10 $ 0.48 $2.09 340.00% 340.0%
Ur-Energy N URG URG Low cost uranium producer $ 0.84 7/27/10 $ 0.84 $1.61 91.67% 91.67%
Coeur d' Alene Mines (CALLS) N CDE CDE Jan 22.5 calls $ 0.65 9/24/10 $ 0.65 $2.40 269.23% 269.2%
Coeur d' Alene Mines (CALLS) N CDE CDE Jan 25 calls $ 0.28 9/24/10 $ 0.28 $1.28 363.64% 363.6%
ATP Oli & Gas Corp. (CALLS) N ATPG ATPG Dec 15 Calls $ 0.95 10/4/10 $ 0.95 $1.40 47.37% 47.4%
ATP Oli & Gas Corp. N ATPG ATPG Deep water oil and gas driller-gulf of Mex & N. Sea $ 13.05 10/4/10 $ 13.05 $14.60 11.88% 11.9%

Please note, Chen does provide some leverage play suggestions for his subscribers. You can benefit from
Chen’s expertise by subscribing to What is Chen Buying? What is Chen Selling. Go to www.Miningstocks.com
to sign up. You may take advantage of one time only trial offers to Chen’s letter as outlined on this site.

18
JayTaylorMedia.com

At www.JayTaylorMedia.com, Your editor contributes a daily blog on this site most of which is very much
related to the content of this newsletter. You can go to this site to: 1) Buy gold and silver through
GoldMoney.com; 2) Catch my daily blog; 3) Access my live and archived weekly radio shows; 4) To learn
about new companies I am following via Jay’s Watch List; and 5) to see various videos of your editor on BNN,
Fox and CNBC. COMING SOON: Yours truly will be quizzing CEO’s of mining companies about the risks
and rewards to investors on a new show titled “Face the Investor.”

Focus on the policy, not Wikileaks

We may never know the whole story behind the recent publication
of sensitive U.S. government documents by the Wikileaks
organization, but we certainly can draw some important
conclusions from the reaction of so many in government and
media.

At its core, the Wikileaks controversy serves as a diversion from

the real issue of what our foreign policy should be. But the
mainstream media, along with neoconservatives from both
political parties, insist on asking the wrong question. When
presented with embarrassing disclosures about U.S. spying and
meddling, the policy that requires so much spying and meddling is
not questioned. Instead, the media focus on how so much
sensitive information could have been leaked, or how authorities
might prosecute the publishers of such information.

No one questions the status quo or suggests a wholesale rethinking of our foreign policy. No one suggests that the White
House or the State Department should be embarrassed that the U.S. engages in spying and meddling. The only
embarrassment is that it was made public. This allows ordinary people to actually know and talk about what the
government does. But state secrecy is anathema to a free society. Why exactly should Americans be prevented from
knowing what their government is doing in their name?

19
In a free society, we are supposed to know the truth. In a society where truth becomes treason, however, we are in big
trouble. The truth is that our foreign spying, meddling, and outright military intervention in the post-World War II era has
made us less secure, not more. And we have lost countless lives and spent trillions of dollars for our trouble. Too often
"official" government lies have provided justification for endless, illegal wars and hundreds of thousands of resulting
deaths and casualties.

Take the recent hostilities in Korea as only one example. More than fifty years after the end of the Korean War,
American taxpayers continue to spend billions for the U.S. military to defend a modern and wealthy South Korea. The
continued presence of the U.S. military places American lives between the two factions. The U.S. presence only serves
to prolong the conflict, further drain our empty treasury, and place our military at risk.

The neoconservative ethos, steeped in the teaching of Leo Strauss, cannot abide an America where individuals simply
pursue their own happy, peaceful, prosperous lives. It cannot abide an America where society centers around family,
religion, or civic and social institutions rather than an all powerful central state. There is always an enemy to slay,
whether communist or terrorist. In the neoconservative vision, a constant state of alarm must be fostered among the
people to keep them focused on something greater than themselves-- namely their great protector, the state. This is why
the neoconservative reaction to the Wikileaks revelations is so predictable: “See, we told you the world was a dangerous
place,” goes the story. They claim we must prosecute- or even assassinate- those responsible for publishing the leaks.
And we must redouble our efforts to police the world by spying and meddling better, with no more leaks.

We should view the Wikileaks controversy in the larger context of American foreign policy. Rather than worry about the
disclosure of embarrassing secrets, we should focus on our delusional foreign policy. We are kidding ourselves when we
believe spying, intrigue, and outright military intervention can maintain our international status as a superpower while our
domestic economy crumbles in an orgy of debt and monetary debasement.

Brokers Who Can Buy Canadian Mining Stocks for American Investors
Kevin Hudak - A U.S. broker who follows our investment strategies as well as the companies recommended in this letter is a friend
of your editor, namely, Kevin Hudak. I believe Kevin will do a superb job for you. If you were to find out otherwise, I would very
much want to hear about it. I rarely recommend brokers, but Kevin is one I feel can serve subscribers to this letter well. So, feel free to
inquire of his services at 1-505-980-2809.

Allen Green of Green Financial Group (www.agreenfinancialgroup.com) is located in Ypsilanti, Michigan. Our broker/dealer is
Cullum & Burk Securities, Dallas, Texas, member NASD, MSRB, SIPC (www.cbsfinancial.com). This company offers free
consultation to qualified investors. Call (800) AL-GREEN (254-7336) and ask for Allen Green. EDITOR’S NOTE: Alan Greens
also shares most of your editors views with respect to investing as well as moral and spiritual values.

David Elliott - For Accredited Investors your editor suggests you consider using the services of Haywood Securities (USA) Inc.,
located in Vancouver, B.C. (An accredited investor under U.S. law is defined as a person along with spouse who has a net worth of
over $1 million or along with spouse has an annual income of over $300,000 over the past two years or longer. A single person also
needs a net worth of over $1 million but his/her annual income needs be “only” in excess of $200,000 over the past two years.)
Though he is Canadian, Mr. Elliott and his staff is licensed to do business with American citizens and Haywood Securities (USA)
Inc. which is the U.S. subsidiary of a Canadian company is well positioned to buy and sell Canadian securities. Call David Elliott in
Vancouver at (604) 697-7128

Steve Miller – Steve has been a broker nearly 48 years; his last stint was 28 years at Smith Barney; currently at Wachovia Securities.
Has been heavily concentrated in the resource; Ag and Precious Metals area for quite some time; subscribes to many of the leading
investment services; has a vast network of contacts and resources developed over his lengthy career. Considers himself a
CUSTOMER’S MAN (which was the appeal when he originally became a broker in the early 60's). Steve is passionate about his
business and is a student of the market (Stocks). He works very long hours (he doesn't play golf and the stock market is also his
hobby) and is very proud of the results he's achieved for his clientele. In the past several years, Steve has taken on a partner, Justin
Geller, who does all the things that Steve wants to offer to his clients, including, financial planning; estate planning; insurance; fixed
income; mortgages. Justin is extremely capable and helps Steve with his Equity effort as well. Their 800 number is (800) 654-7444
and direct (212)205-2937. Their offices are in The Fox Building in Midtown Manhattan at 1211 Ave of The Americas New York,
N.Y. 10036. Additionally, Steve espouses the "Mae West" school of investing and is patient.

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 PORTFOLIO SCORECARD
Gold Stocks Exch Ticker R Company Activity/Comments Price Initial Initial Price 2010 Overall Buy/
Security 1/1/10 Date Price 12/10/10 % Gain Gain HOLD
GOLD & SILVER PRODUCERS ("A" Progress Companies)
Allied Nevada Gold Corp. * N ANV A1 Gold Producer in Nevada $ 15.08 1/30/09 4.95 $26.52 75.86% 435.8% HOLD
Aurizon Mines Ltd. * A AZK A1 Gold production in Quebec $ 6.65 9/3/10 6.65 $7.36 10.68% 10.7% BUY
Brigus Gold * A BRD A1 Gold production in Ontario $ 1.76 12/12/08 1.00 $1.79 1.70% 79.0% HOLD
Crocodile Gold * T CRK A1 Gold production in northern Australia $ 1.56 4/23/10 1.56 $1.53 -1.61% -1.6% BUY
Dynacor Gold Mines * T DNG A1 Gold exploration & custom milling in Peru $ 0.32 8/13/10 0.32 $1.09 240.41% 240.4% BUY
Great Panther Silver Ltd. T GPR A1 Silver mine exploration/development in Mexico $ 0.83 5/29/09 0.49 $2.44 191.76% 397.2% HOLD
Metanor Resources Inc. * T MTO A1 Small Production & Exploration in Quebec $ 0.54 1/25/08 0.84 $0.44 -18.52% -47.2% BUY
OceanaGold Corp. * T OGC A1 Gold Mining-New Zealand, project-Philippines $ 1.65 2/27/09 0.48 $3.37 103.94% 601% BUY
San Gold Corporation * T SGR A1 New, smaller gold producer in Manitoba, Ca. $ 3.46 9/30/06 1.27 $3.56 2.65% 179.9% HOLD
SilverCrest Mines Inc T SVL A1 Exploration, Develop gold & silver in Mexico $ 0.87 1/22/10 0.87 $1.99 128.87% 128.9% BUY
J Taylor's Average Gain (Loss) on Progress "A" Gold Stocks 73.57% 202.4% ---
GOLD & SILVER EXPLORATION STOCKS ("B", "C" & "D" Progress companies)
Alex co Resources Corp. * N AXE A2 Near term silver producer in Canada Yukon $ 3.76 12/23/09 3.44 $7.68 104.26% 123.3% BUY
American Bonanza Gold T BZA A2 Gold mining, explore, development in N. America $ 0.18 3/19/10 0.18 $0.34 89.81% 89.8% BUY
Baskerville Gold Mines Ltd. * T BUM A2 Gold mining, explore, development in central B C $ 0.81 1/29/10 0.81 $1.37 68.09% 68.1% BUY
Golden Minerals Co. * O ALUMNI A2 Explore & develop mining/services Latin America $ 9.70 9/11/09 4.15 $26.80 176.29% 545.8% BUY
Goodrich Mining Co. * O GERM A2 Gold mining and exploration in Alaska $ 0.38 8/31/09 0.35 $0.30 -21.05% -14.3% BUY
Klondex Mines T KDX A2 Explore/Develop high grade gold in Nevada $ 2.29 12/5/10 2.29 $2.50 8.98% 9.0% BUY
Luna Gold Corp. T LGC A2 Producing Gold Mines in Brazil $ 0.54 10/26/07 0.80 $0.77 42.82% -3.4% BUY
Sandstorm Resources Ltd * T SSL A2 Gold royalty co. applies Silver Wheaton Model $ 0.53 5/22/09 0.36 $0.72 39.62% 107.2% BUY
Adventure Gold Inc. * T AGE A3 Explore & develop gold projects in Quebec $ 0.19 9/17/10 0.19 $0.47 139.92% 139.9% Buy
Animas Resources Ltd. T ANI A3 Gold exploration in Mexico $ 0.64 5/30/08 1.39 $0.33 -48.59% -76.5% Hold
Cangold Ltd. * T CLD A3 Early Stage gold exploration project in Mexico $ 0.04 6/23/03 0.08 $0.04 17.41% -43.6% BUY
Clifton Star Resources Inc. * T CFO A3 Explore & Develop of past gold prop. In Quebec $ 4.25 3/20/09 1.89 $5.04 18.58% 166.7% BUY
Coral Gold T CLH A3 Gold Exploration and Production in Nevada $ 0.66 9/4/09 0.42 $0.76 14.80% 81.6% BUY
Everton Resources Ltd. * T EVR A3 Gold Explore & Develop gold in Dominican & Can. $ 0.27 5/14/10 0.27 $0.35 32.16% 32.2% BUY
Golden Hope Mines Ltd. T GNH A3 Exploring gold in Beauce region of Quebec $ 0.53 7/30/10 0.53 $0.37 -31.38% -31.4% BUY
GoldQuest Mines Corp. T QGC A3 Explore/Develop gold in Dom Republic/Spain $ 0.34 12/3/10 0.34 $0.38 11.01% 11.0% BUY
Magellan Minerals Ltd. * T MNM A3 Explore/Develop large scale near surface in Brazil $ 0.72 4/10/09 0.49 $1.80 149.93% 268.6% BUY
Maudore Minerals Ltd. * T MAO A3 High grade underground gold deposit Quebec $ 4.23 2/25/06 0.69 $6.00 41.81% 772.6% BUY
Merrex Gold Inc T MXI A3 Exploring & Developing gold projects W Africa $ 0.59 4/2/10 0.59 $0.45 -23.87% -23.9% BUY
Millrock Resources, Inc T MRO A3 Project generator in Alaska and Arizona $ 0.42 7/23/10 0.42 $0.92 119.28% 119.3% BUY
Nautilus Minerals Inc. * T NUS A3 High grade gold & base metals mining ocean floor $ 1.65 5/26/06 2.85 $2.00 21.16% -29.8% Hold
NioGold Mining Corp. T NOX A3 Develop ungrounded mines eastern Canada $ 0.32 12/8/06 0.21 $0.34 5.92% 64.2% BUY
Northern Tiger Resources * T NTR A3 Exploring for Gold in the Yukon $ 0.70 10/4/10 0.70 $0.36 -49.07% -49.1% BUY
Paramount Gold & Silver N PZG A3 Gold & Silver Exploration in Mexico & Nev. $ 1.69 2/5/10 1.69 $2.59 53.25% 53.3% BUY
Premium Exploration, Inc * T PEM A3 Explore/Develop in Idaho, Montana, Mexico $ 0.37 6/5/09 0.17 $0.46 22.86% 179.1% BUY
Richfield Ventures Corp. * T RVC A3 Gold Explore & develop in British Columbia $ 1.30 7/23/10 1.30 $4.56 250.41% 250.4% BUY
Riverside Resources, Inc * T RRI A3 Gold Exploration in Yukon & Mexico $ 0.55 8/27/07 0.50 $1.03 87.14% 106.0% BUY
Takara Resources, Inc T TKK A3 Explore & Develop gold in Guyana, S America $ 0.30 12/3/10 0.30 $0.24 -20.24% -20.2% BUY
Trade Winds Ventures Inc T TWD A3 Exploring for gold in Ontario $ 0.15 6/18/10 0.15 $0.39 162.73% 162.7% BUY
Typhoon Exploration Inc. T TYP A3 Explore & develop gold properties in Quebec $ 1.60 9/17/10 1.60 $0.84 -47.39% -47.4% BUY
Yale Resources Ltd. * T YLL A3 Explore gold /silver in Mexico $ 0.05 2/26/10 0.05 $0.10 96.19% 96.2% BUY
Golden Valley Mines Ltd. T GZZ A4 Project generator for gold & base metals $ 0.28 8/20/10 0.28 $0.53 89.63% 89.6% BUY
Horseshoe Mining Co. * T HSX A4 Exploring for gold in Brazil and Columbia $ 0.11 5/28/10 0.11 $0.19 69.39% 69.4% BUY
Pelangio Exploration Inc. * T PX A4 Gold Exploration in Ghana & eastern Canada $ 0.55 9/26/08 0.11 $0.95 72.74% 805.4% BUY
Renaissance Gold Inc. T REN A4 Explore for gold/metals. Project generator model $ 0.55 9/26/08 0.11 $1.84 234.69% 1654.2% BUY
Sphere Resources Inc. T SPH.H A4 Exploration & Develop gold projects in Canada $ 0.02 4/16/10 0.02 $0.07 362.14% 362.1% BUY
Xtra-Gold Resources O XTGR A4 Exploration & development of gold in Ghana $ 1.18 7/9/10 1.18 $2.32 96.61% 96.6% BUY
J Taylor's Average Gain on Exploration and Development Gold Stocks 66.43% 167.2% ----
Uranium Stocks
Van Eck Nuclear Eng. ETF O NLR A1 Nuclear Energy ETF $ 22.66 1/1/09 19.67 $25.75 13.64% 30.9% Hold
Uranium Energy Corp. A UEC A2 10.2 million lbs. U3O8 Resource + Much more Pot$ 3.78 6/23/06 2.80 $5.94 57.14% 112.1% BUY
Western Uranium Corp. * T WUC A3 31 million pound historical U3O8 Resource $ 1.12 1/31/07 2.29 $1.24 11.46% -45.7% Hold
J Taylor's Average Gain (Loss) on Outstanding Inflation Hedge Stocks 27.41% 32.5% ----
Oil, Gas & Misc.
Acro Energy Technologies T ART A1 Sells & installs solar electric generating units $ 0.28 7/9/10 0.28 $0.23 -15.68% -15.7% BUY
Diagnos Inc. * T AD A1 Own/Develop healthcare, mining, music software $ 0.44 4/19/10 0.44 $0.28 -37.55% -37.5% BUY
North American Gem Inc. * T NAG A2 Coal exploration and production in Kentucky $ 0.11 12/7/09 0.11 $0.094 -17.37% -17.5% BUY
Average Gain (Loss) on Oil and Gas Stocks > -23.53% -23.6%
Precious Metals & Hedge Funds
Gold * N/A N/A N/A The Best Money Ever Discovered by Humankind $ 1,096.40 12/3/90 390.00 $1,386.30 26.44% 255.5% BUY
Silver * N/A N/A N/A 2nd Best Money Ever Discovered by Humankind $ 16.87 11/15/97 5.29 $28.70 70.12% 442.5% Hold
Prudent Bear Fund * O BEAR A1 Shorts Equity Markets - Long Gold & Gold Eq. $ 5.45 1/1/09 6.69 $4.77 -12.48% -28.7% BUY
World Prec. Metals Fund O UNWEPT A1 Frank Holmes - Produce. And Expel. Gold Stocks $ 17.42 3/20/03 9.70 $21.83 25.32% 226.7% Hold
OHM Gold Fund O COMMIX A1 Major and junior gold mining mutual fund $ 23.52 2/7/08 23.52 $31.21 32.70% 32.7% Hold
Central Fund of Canada * O CEF A1 Holds Gold and Silver Bullion $ 13.75 1/7/00 7.42 $19.86 44.44% 168.9% Hold
SAP 500 Index N/A N/A N/A Broad based measure of U.S. Stocks $ 1,115.10 1/1/00 1,453.82 $1,240.40 11.24% -14.7% --

CHART EXPLANATION|| Exch. A=American; N=New York; O=NASDAQ/Bulletin Board/Pink

Sheets; T= Canadian Exchanges ||P=PROGRESS RATING – A1 = Currently Operating, A2=Not in
operation but with pre-feasibility or feasibility study in hand; A3 = No feasibility study but indications of
a commercially viable mineral deposit. A4= A mineral resource not yet delineated but based on size of
mineral bearing structures and early geological work, potential for outlining an ore body appears good.||
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.2010 CLOSED POSITIONS: Piedmont Mining (-50%), Hawthorne Gold Corp, (-90.3%), Romarco Minerals
Inc. (+875.5%), Timmins Gold (+282.6%), Pediment Exploration (+75.3%), Spanish Mountain (+6.4%),
Terra Ventures (+18,4%), Denison Mines (-66.2%), Uranerz Energy (-57.7%), ATPG Oil and Gas (-19.5%),
Acro Energy Tech (+21%), Pan Orient Energy Corp (-44.4%), PMI Gold (+18.6%), Midlands Minerals
Corp (-22.9%), Columbus Silver (-42.4%), Guyana Gold (+101.1%),AuEx Ventures (+245.7%), Canaco
Resoruces (+403.2%), Bayfield Ventures (+141.4%). || J Taylor’s Gold, Energy & Tech Stocks, is
published monthly as a copyright publication of Taylor Hard Money Advisors, Inc. (THMA), Box
780555, Maspeth, N.Y. 11378, Tel.: (718) 457-1426.|| * Represents companies in which the editor and/or
his family hold a long position. Website: www.miningstocks.com. THMA provides investment ideas
solely on a paid subscription basis. Companies are selected for presentation in this publication strictly on
the merits of the company. No fee is charged to the company for inclusion. The currency used in this
publication is the U.S. dollar unless otherwise noted. The material contained herein is solely for
information purposes. Readers are encouraged to conduct their own research and due diligence, and/or
obtain professional advice. The information contained herein is based on sources, which the publisher
believes to be reliable, but is not guaranteed to be accurate, and does not purport to be a complete
statement or summary of the available information. Any opinions expressed are subject to change without
notice. The editor, his family and associates and THMA are not responsible for errors or omissions. They
may from time to time have a position in the securities of the companies mentioned herein. All such
positions are denoted by an asterisk next to the name of the security in the chart above. No statement or
expression of any opinions contained in this publication constitutes an offer to buy or sell the securities
mentioned herein. Under copyright law, and upon request companies mentioned herein, from time to time
pay THMA a fee of $500 per page for the right to reprint articles that are otherwise restricted for the
benefit of paid subscribers. Subscription rates: One Year $198; Two Years - $360; Three Years $477.
Foreign postal delivery -one-year -$200.

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