Alexco Resource* (AXR : TSX : $3.27), Net Change: -0.16, % Change: -4.66%, Volume: 74,609
Key milestone. Alexco Resource, one of Canaccord Genuity Senior Mining Analyst Eric Zaunscherb’s favoured silver names,
announced Tuesday that it has signed the Comprehensive Cooperation and Benefits Agreement with the First Nation of the Na-
Cho Nyak Dun (NND). Alexco management stated that this new agreement further solidifies the relationship between Alexco
and NND as Alexco’s Bellekeno Mine nears production. The agreement replaces the earlier Exploration Cooperation
Agreement, and sets out common understandings, obligations, and opportunities arising from exploration, care and
maintenance, district closure activities, and mine production. The company highlighted that this is a key milestone in the
revitalization of the Keno Hill Silver District, the agreement positions Alexco to move forward in all of its current and future
activities in the District with certainty, and ensures that NND is well positioned to maximize benefits that increased activity in
the traditional territory will bring. In addition to returning the historic Bellekeno high-grade silver mine to production, Alexco is
focused on an aggressive exploration drill program on its 234 square-kilometre property, which Zaunscherb believes may
unlock some of the company’s “blue-sky” potential.

Baytex Energy Trust* (BTE.UN : TSX : $31.53), Net Change: -1.39, % Change: -4.22%, Volume: 525,127
Enerplus Resources Fund* (ERF.UN : TSX : $22.99), Net Change: -0.37, % Change: -1.58%, Volume: 382,629
NAL Oil & Gas Trust* (NAE.UN : TSX : $10.54), Net Change: -0.27, % Change: -2.50%, Volume: 337,020
Paramount Energy Trust* (PMT.UN : TSX : $5.03), Net Change: -0.14, % Change: -2.71%, Volume: 1,020,269
Penn West Energy Trust* (PWT.UN : TSX : $20.07), Net Change: -0.63, % Change: -3.04%, Volume: 1,171,272
Distribution cut? Yesterday, Canaccord Genuity Oil & Gas Trusts Analyst Kyle Preston highlighted three trusts that he now
believes may be at risk of cutting their distribution upon conversion. Distribution sustainability will ultimately depend on
commodity prices, but based on his forecasts and analysis, he continues to believe that Penn West will cut its distribution upon
conversion and now predicts that Paramount will also need to cut its distribution in 2011. In addition, Preston highlights
Enerplus and NAL as having medium risk (50/50) of cutting their distributions upon conversion. Despite the risk of distribution
cuts, he continues to favour Enerplus and NAL as his top “yield” picks as he does not believe the potential cuts will be as severe
as the market seems to be pricing in. Even if he assumes a 20% cut to their respective distributions, NAL would still yield ~8%,
while Enerplus would yield ~7%. Taking into account current valuations, his top “growth” picks are Daylight (DAY.UN) and
PetroBakken (PBN), as he believes both stocks are trading at unjustified discounts relative to their peers, given their highquality
as the market seems to be pricing in. Even if he assumes a 20% cut to their respective distributions, NAL would still yield ~8%,
while Enerplus would yield ~7%. Taking into account current valuations, his top “growth” picks are Daylight (DAY.UN) and
PetroBakken (PBN), as he believes both stocks are trading at unjustified discounts relative to their peers, given their highquality
assets and significant growth potential. From a long-term, total return (growth plus yield) perspective, Preston favours
Baytex.

Grande Cache Coal* (GCE : TSX : $5.41), Net Change: -0.72, % Change: -11.75%, Volume: 2,736,557
Western Coal* (WTN : TSX : $4.16), Net Change: -0.56, % Change: -11.86%, Volume: 5,654,333
On a slow boat to China. Canadian coal stocks were hurt by concerns that economic growth in China is slowing, reducing
demand for steel (see our “China” comment from more details on the Conference Board’s downgrade to its April gauge for
China’s economic outlook). News of a China slowdown comes a day after the country’s National Development and Reform
Commission had issued a price freeze directive to its domestic coal miners to keep prices stable. Curbs on coal prices were
meant to cool inflation pressures by reducing costs at state-run companies. According to Commodities Now, despite a voyage
time of 45 days compared with 15 from Australia, China’s coking coal imports from the U.S. rose 4,800% over last year during
January-May 2010, and 85% from Canada. Chinese imports of coking coal from the U.S. and Canada together accounted for 2.7
million tonnes of a total 19 million tonnes imported from January-May.

Hathor Exploration* (HAT : TSX-V : $1.51), Net Change: -0.05, % Change: -3.21%, Volume: 347,361
Planned to start imminently. On Tuesday, Hathor released the final assays from the winter drill program and outlined its plans
for an aggressive summer drill program to test the full potential of Roughrider East, and to infill and expand the Roughrider
zone. Hathor management highlighted that the results to date outline significant potential at Roughrider East; it is open in all
directions and aggressive drilling this summer will infill areas already drilled, and also test the potential extent of mineralization
away from current fences. The company said the summer drilling is planned to start imminently at RRE. There are two main
goals: i) One drill rig will test the open area to the east, and complete more detailed infill drilling to the west on Lines 20W to
100W. Uranium mineralization has been traced westward for 100 metres from the discovery hole 170, but only in
reconnaissance fashion for the western 80 metres. There is no drilling east of hole 170; ii) One drill rig will test the resistivity
low, that is, the potential extension of the high-grade mineralization at Roughrider East to the southwest along the Midwest
Trend. This target is robust over a strike length of approximately 700 metres. Infill and expansion drilling will continue this
summer, from the barge, at Roughrider itself. Also of note, UxC’s spot uranium price upticked (the first in awhile!) US$1.00/lb
last week to US$41.75/lb.

Teck Resources* (TCK.B : TSX : $31.77), Net Change: -1.91, % Change: -5.67%, Volume: 7,322,242
Things that go boom. Teck tumbled after disclosing that an explosion and fire at the company’s 80%-owned Greenhills coal
mine near Elkford B.C. caused extensive damage. It is expected to take several days to assess the damage and the impact to
production levels. The operation was expected to produce 4.3 million tonnes of metallurgical coal this year (3.4 million
attributable to Teck), which represents 13.6-14.5% of the company’s total planned 2010 coal production of 23.5-25.0 million
tonnes. While clearly a negative event, the operation represents about 2% of the global seaborne metallurgical coal market,
which should provide some support to the falling spot price. A Bay Street analyst estimates an approximate 5% impact to his
2010 EPS, EBITDA, and CFPS estimates assuming the operation is down for all of H2/10. Despite this incident, Canaccord
Genuity remains bullish on the story based on positive near-term coking coal and copper price momentum.

Wild Stream Exploration* (WSX : TSX-V : $5.55), Net Change: -0.10, % Change: -1.77%, Volume: 1,196,863
“A wild one, ooh yeah I’m a wild one, gotta break it loose, gonna keep ‘em movin’ wild, Gonna keep a swingin’ baby, I’m a
real wild child.” – Iggy Pop. Wild Stream released a mid-year reserve update (as of May 31, 2010) to incorporate several
acquisitions along with its successful drilling program to date, and reported a 122% increase in 2P reserves to 10.7 mmboe
(94% oil and NGLs) and a 114% increase in proved reserves to 6.7 mmboe. The company also provided a brief operational
update, highlighting continued success on its Upper Shaunavon waterflood program which now has 3.0 gross (2.8 net) wells on
production at a combined rate of 470 bbls/d. A fourth well is currently being tied in while a fifth is being drilled. Due to the
continued positive performance from the first waterflood phase, Wild Stream plans to follow up with a second and third phase
later this year. Additionally, it has an active program planned for its other resource plays including up to five more horizontal
wells in the Lower Shaunavon, up to 10 more in the Viking and one to two additional Cardium wells at Garrington.
Commenting on the update, Canaccord Genuity Oil & Gas Analyst Kyle Preston noted that Wild Stream’s significant increase
to its reserves exceeded his 2010 pro-forma reserve estimate and appears to further validate the company’s resource potential.
Also, the company looks to be ahead of operations targets, and he expects continued positive drilling results as the year
progresses. Although the Lower Shaunavon waterflood pilot is still in the relatively early stages of development, Preston
believes results to date are encouraging and could represent significant value upside. As Wild Stream continues to prove-up
these plays and add reserves, he believes the company is being positioned for an ultimate takeout, with Crescent Point Energy
(CPG) being the most likely acquirer in Preston’s view, due to its dominant position in the Shaunavon. Preston raised his
bullish target price based on the company’s higher 2010 and 2011 production forecasts, to reflect positive drilling to date as
well as a preliminary resource estimate for the Upper Shaunavon waterflood potential.