Capstone Mining* (CS : TSX : $2.82), Net Change: 0.01, % Change: 0.36%, Volume: 1,290,988
has acquired the securities for investment purposes only and may, depending on market and other
conditions, increase or decrease its beneficial ownership, control or direction over, shares or other securities of <<Fill In
Blank>> through market transactions, private agreements or otherwise. Pala Investments Holdings has acquired a total of
21,058,100 common shares of Capstone representing roughly 10.61% of the 198,410,173 issued and outstanding common
shares of Capstone. Pala acquired its shares from February 2010 to May 5, 2010. The average consideration for each common
share of Capstone was approximately $2.68 per common share. Capstone remains the cheapest mid-tier copper producer in
Canaccord Adams’ coverage universe. The company recently released its Q1/10 operating results for its Cozamin and Minto
mines, ahead of the company’s earnings release scheduled for mid-May. Total copper production of 21.9 million lbs was 7.6%
below Canaccord Adams' estimate of 23.6 million lbs, with weaker-than-anticipated production at both mines. However,
Capstone reaffirmed its previously-issued 2010 production guidance of 90-100 million lbs of copper. The company is likely to
require a significant production ramp-up in H2/10 to reach its guidance range. Despite lower copper production, the company
reported that on a consolidated basis, cash operating costs of $1.12/lb were 6.6% lower than Canaccord Adams' forecast of
$1.20/lb.

East Asia Minerals* (EAS : TSX-V : $7.84), Net Change: -0.14, % Change: -1.75%, Volume: 313,913
Cashed-up and ready to add even more ounces! East Asia Minerals announced Wednesday that drilling is progressing well at
the Miwah Main Zone in Aceh Province, Indonesia, as well as plans to drill two of the company's other targets in Indonesia –
the Bahu and Lower Tengkereng gold-copper porphyry systems. East Asia also said that it has closed an $18.85-million nonbrokered
private placement, which went entirely to two well-known and respected gold funds, both of whom are significant long
term shareholders of East Asia (one being Sprott Asset Management (SII) – East Asia's largest shareholder). With the new
cash in hand and strong drill results continuing to define gold over a large area at Miwah, East Asia highlighted that it will
accelerate the arrival of a third drill rig to site. The company also said the private placement will facilitate accelerating activities
defining drill targets at its porphyry projects (Bahu and Lower Tengkereng). So the question now is: How big can it get?

Kinross Gold* (K : TSX : $18.21), Net Change: -0.84, % Change: -4.41%, Volume: 8,005,003
I got your (Red) Back. Kinross released Q1 results that met expectations. However, the impact was muted as the market
focused on Kinross' announced Red Back Mining (RBI) private placement. Kinross reported Q1/10 adjusted EPS of $0.14,
ahead of Canaccord Adams’ $0.11 estimate but in line with consensus of $0.14. The variance was explained by higher
attributable production/sales (i.e., 544,134 oz produced (567,097 oz sold) at $461/oz vs. Canaccord Adams’ estimate of 528,000
oz at $499/oz). Production was higher at Kupol (grades/throughput) and Paracatu (grades). Costs were lower at Paracatu
($556/oz vs. estimate of $685/oz) and Kettle River ($280/oz vs. estimate of $410/oz). Importantly, Kinross also announced a
$600-million private placement into Red Back Mining, representing a 9.4% stake. Kinross’ rationale for the Red Back
investment is that it is a strategic investment in a rapidly growing producer with exploration upside in a prolific gold region in
West Africa, led by a high-quality management team. Kinross ended Q1/10 with approximately $1 billion in cash (following the
close of the Cerro Casale deal) and the investment should also improve the company’s leverage to higher gold prices through a
high-growth gold producer (relative to holding the excess capital in cash or treasury bills). Canaccord Adams Precious Metals
Analyst Steven Butler notes that 2010 starts on a solid production result, but he expects results may be overshadowed by the
concern of potential dilution if Kinross were to more aggressively pursue an outright acquisition of Red Back. Butler estimates
that a potential acquisition of Red Back would be dilutive to his Kinross valuation, with dilution ranging 2.6-16.9%. In his view,
Kinross isn’t trading at a high enough multiple to effect an accretive transaction.

Red Back Mining* (RBI : TSX : $24.82), Net Change: 0.36, % Change: 1.47%, Volume: 3,147,208
The next of Kin-ross. Canaccord Adams Junior Mining Analyst Nicholas Campbell has become even more bullish on Red Back
following Kinross' (K) endorsement of the Tasiast project potential. Kinross has agreed to a $600-million private placement in
Red Back at a price of $25.00 a share. This would make Kinross the largest shareholder of Red Back, holding 9.4% of the
outstanding shares. Campbell believes this placement is a ringing endorsement of the growth potential of the Tasiast operation
in Mauritania. Once this placement closes, Red Back should have US$760 million in the bank to aggressively expand the
Tasiast deposit. An updated reserve estimate for the project is to be released in H2/10, reflecting drilling up to the end of July
2010. Based on the drilling results reported to date and indications from Red Back management, Tasiast reserves could
approach 10 million ounces of gold over the next 12 months. A 10-million-ounce reserve would support a substantially
expanded operation at Tasiast and this financing gives Red Back the flexibility to aggressively expand the CIL operation, in
addition to a heap leach operation at the mine. Campbell’s valuation of Red Back now reflects a 10-million-ounce reserve at
Tasiast and a further expansion of the Tasiast CIL operation to 8.0 million tonnes per year, which, combined with the
development of the heap leach operation, could require capex of US$550 million from 2010 to 2013. After factoring the Kinross
private placement and these adjustments into his model, Campbell boosted his target price and rating. He believes Kinross'
private placement will likely fuel speculation on the potential for an acquisition bid to emerge for Red Back eventually, either
from Kinross or from a large-cap competitor that is active in West Africa.

Talisman Energy* (TLM : TSX : $16.85), Net Change: -0.07, % Change: -0.41%, Volume: 4,890,532
All eyes on Marcellus. Talisman reported first-quarter results, highlighted cash flow of $837 million, or $0.82 per share,
compared with Canaccord Adams' estimate of $0.93 and the consensus estimate of $0.88. Its cash flow fell below Canaccord
Adams' estimate due primarily to higher operation, transportation and G&A expenses, in addition to higher cash taxes in the
quarter. Production averaged 435,000 boe/d in the quarter, above Canaccord Adams' forecast of 419,200 boe/d and the
consensus forecast of 421,000 boe/d. While the market may focus on the cash flow per share miss, Talisman is delivering on its
Marcellus growth plans which should provide positive momentum late in the year. At the Pennsylvania Marcellus shale play,
Talisman brought 22 wells on stream, with production averaging 85 mmcf/d in Q1/10, and reached 150 mmcf/d at the end of
April, compared with 65 mmcf/d at the end of 2009. Talisman has previously forecasted an exit rate of 250-300 mmcf/d for the
Marcellus. Subsequent to the end of the quarter, Talisman announced the sale of 42,500 boe/d of primarily natural gas
production in Canada for total proceeds of $1.9 billion. The sale is expected to close by mid-year. As such, the company has
revised its 2010 guidance to approximately 400,000 boe/d, down from 425,000 boe/d previously. The company has also lowered
its 2010 capital program slightly to $4.6 billion from $4.9 billion previously due to the impact of exchange rates. Furthermore, it
indicated that while it anticipates no changes to spending in its natural gas program, it will keep its gas business under review as
the year progresses. Talisman continues to trade at a discount to its peer group on a debt-adjusted cash-flow-per-share basis.