Gold (GC : NASDAQ : US$1,203.00), Net Change: 7.90, % Change: 0.66%, Volume: 112,379
Is a test of the 200-day moving average (US$1163.60) inevitable? Canaccord Genuity Precious Metals Analyst Steven Butler
sees a good entry point into gold equities during the April-to-August season, which has historically been a relatively weak time
for gold and gold equities, in order to benefit from expected seasonal strength from September to January. Based on average
monthly returns over the last 10 years, the period from February to August has generally been a relatively weak period for gold
prices, followed by a strong recovery in gold price performance from September to January. Historically, September has been
the best month for gold, during which it has traditionally outperformed many other commodities, also reflecting increased
seasonal demand coinciding with the Indian festival/wedding season. Corresponding to the strength in gold prices, gold equities
have outperformed the S&P/TSX Composite by 3.4% in August (83% of time) and 8.4% in September (67% of time) over the
1995-2007 period. While Butler remains bullish on gold prices over the next 12 months, he says investing in gold equities
should provide for superior returns relative to holding bullion or bullion-related ETFs. In his view, gold equities offer better
leverage to higher gold prices relative to physical gold given that a 10% increase in the price of gold should translate into an
over 15% increase in operating margins. Gold equities currently appear undervalued relative to spot gold prices based on
historical valuations. The senior intermediate group currently trades at an average 5%/spot gold P/NAV multiple of 1.27x,
below the historical expected trading range of 1.36-1.63x. Canaccord Genuity's preferred names amongst the senior and
intermediates gold producers include: Goldcorp (G), Kinross (K), Yamana Gold (YRI) and IAMGOLD (IMG).

Avion Gold* (AVR : TSX-V : $0.46), Net Change: 0.02, % Change: 3.41%, Volume: 2,158,958
Pour some sugar on me, ooh in the name of love. Shares of Avion Gold were fuelled by news that the company remains on
track to meet its 2010 production targets. The company produced 8,960 oz in June from its Tabakoto/Segala operation in Mali,
West Africa, resulting in Q2 production of approximately 22,210 oz of gold. This is a 102% increase in gold production over
the Q2/09, when 10,992 oz of gold was produced, and a 42% increase in production over Q1/10 where 15,710 oz of gold was
produced. Production in the latest month boosts 2010 year-to-date gold production to 37,920 oz and appears to put Avion on
course to meet 2010 guidance of 75,000-85,000 oz. According to one Bay Street analyst, June production was excellent in terms
of throughput, grade and recovery rate; however, a couple of decent quarters will be needed to help restore management's
credibility following the significant Q1 production miss. The analyst also highlights that he expects Q2 financial results
(anticipated on August 26, 2010) may show a significant decline in operating costs as fixed costs are spread over more ounces.
Also of note, Avion continues its infrastructure construction and equipment mobilization as contractors are mobilizing to
prepare for development of the underground mine at the Tabakoto deposit in Q3. Additionally, the company has received its
Environmental Permit to mine the Dioulafoundou deposit ($1 million estimated capex) and is expected to feed the mill in 2011,
which itself will be undergoing a capacity expansion from 2000 to 4000 t/d. The mill expansion contract is expected to be
awarded July and could be a potential catalyst for the company. Also, the resource estimate for Dioulafoundou resource is
expected in August. Canaccord Genuity Senior Mining Analyst Eric Zaunscherb is bullish on Avion as it remains one of the
least expensive of the gold producers under his coverage, offering excellent upside in resources and, consequently, gold
production.

Avion Gold* (AVR : TSX-V : $0.46), Net Change: 0.02, % Change: 3.41%, Volume: 2,158,958
Pour some sugar on me, ooh in the name of love. Shares of Avion Gold were fuelled by news that the company remains on
track to meet its 2010 production targets. The company produced 8,960 oz in June from its Tabakoto/Segala operation in Mali,
West Africa, resulting in Q2 production of approximately 22,210 oz of gold. This is a 102% increase in gold production over
the Q2/09, when 10,992 oz of gold was produced, and a 42% increase in production over Q1/10 where 15,710 oz of gold was
produced. Production in the latest month boosts 2010 year-to-date gold production to 37,920 oz and appears to put Avion on
course to meet 2010 guidance of 75,000-85,000 oz. According to one Bay Street analyst, June production was excellent in terms
of throughput, grade and recovery rate; however, a couple of decent quarters will be needed to help restore management's
credibility following the significant Q1 production miss. The analyst also highlights that he expects Q2 financial results
(anticipated on August 26, 2010) may show a significant decline in operating costs as fixed costs are spread over more ounces.
Also of note, Avion continues its infrastructure construction and equipment mobilization as contractors are mobilizing to
prepare for development of the underground mine at the Tabakoto deposit in Q3. Additionally, the company has received its
Environmental Permit to mine the Dioulafoundou deposit ($1 million estimated capex) and is expected to feed the mill in 2011,
which itself will be undergoing a capacity expansion from 2000 to 4000 t/d. The mill expansion contract is expected to be
awarded July and could be a potential catalyst for the company. Also, the resource estimate for Dioulafoundou resource is
expected in August. Canaccord Genuity Senior Mining Analyst Eric Zaunscherb is bullish on Avion as it remains one of the
least expensive of the gold producers under his coverage, offering excellent upside in resources and, consequently, gold
production.

Coastal Energy* (CEN : TSX-V : $3.80), Net Change: -0.61, % Change: -13.83%, Volume: 4,736,894
I was a HUGE New Kids On The Block fan. A 2,587,800-share block that traded at $3.50 per share accounted for much of the
volume and price action in Coastal yesterday. At last update (June 22, 2010), the company announced drilling results from the
first three development wells on the Bua Ban structure in the Gulf of Thailand. All three were successful and should have been
on stream at the end of June, adding to the company’s current offshore production of approximately 8,500 bbl/d. With the
success of the Bua Ban wells, the company will soon have a second offshore oil field development underway. While these wells
are not expected to be as prolific as Songkhla (expect around 750-1,000 bbl/d), the full field development of Bua Ban should see
the company achieve production of around 16,000 bbl/d in the last quarter of 2010. The company’s next catalyst will be the
production volumes reported from the first three Bua Ban wells (due anytime). In addition, the company will continue drilling at
Bua Ban and will soon have testing results from the exploration wells recently drilled at Benjarong. Separately, according to
insider filings, a director of Coastal purchased 150,000 shares at an average cost of $4.23 per share through an acquisition in the
public market between June 24-25, 2010. A separate director acquired 25,000 shares through option exercises on June 24, 2010.
Those who follow insider trading believe it’s a bullish sign when insiders exercise options but do not sell all their newly
acquired shares in the public market.

East Asia Minerals* (EAS : TSX-V : $5.69), Net Change: 0.26, % Change: 4.79%, Volume: 352,306
Moon river, wider than a mile, I'm crossing you in style some day. Investors were over the moon on news that East Asia's
drilling has expanded the gold-rich Miwah Main Zone in Northern Sumatra, Indonesia and confirmed potential to connect with
the Moon River area. Hole 33, stepping out towards Moon River, has interested 1.68 g/t gold over 230.5 metres (partial assay,
potential to extend interval). Hole 34, designed to test west of all drilling to date, encountered 87.9 metres of 0.55 g/t Au.
According to Michael Hawkins, President and CEO of East Asia, "The results of EMD033 are very significant, with the gold
assays validating a large previously untested area of the shallow, gently north dipping Miwah Main Zone between Moon River
and the central Block M area. This supports the notion of wide superior gold grade intervals in the Block M area extending
northerly from EMD008-012A. Based on detailed drill core logging we anticipate that the gold mineralization in EMD033 will
extend contiguously past the partial assay interval for a considerable distance." Drilling is ongoing at Miwah with two rigs (a
third is expected to be added soon), the current program is to complete 45 holes between Q2/10 and Q2/11 at Miwah. Canaccord
Genuity Metals and Mining Analyst Wendell Zerb recently visited the site and commented that he was encouraged by the
prospect of Au mineralization extending beyond Moon River to the Sipopok area. The northern edges of the Moon River area
occur about 700 metres north of southern limit of the Main Miwah zone. He believes geology and geophysics support the
potential for mineralization between Main Miwah, Moon River and the Sipopok area (approximately 1.5 km north of Main
Miwah), which is characterized by similar alteration, a large magnetic low, high chargeability and high resistivity that Zerb
views as potentially good indicators of the presence of a continuation of the high-sulphidation epithermal system.

Evolving Gold* (EVG : TSX-V : $0.86), Net Change: 0.17, % Change: 24.64%, Volume: 2,022,386
Major vote of confidence. Industry giant Goldcorp (G) agreed to take a 15% stake in the junior gold explorer. Evolving
management said Goldcorp will participate in a private placement and purchase 19,047,721 common shares of Evolving at a
price of $0.82 per share, for proceeds of $15,619,131.22. The proceeds from the private placement are to be used to explore
Evolving's major exploration properties, the Rattlesnake Hills project in Wyoming and the Carlin and Humboldt projects in
Nevada. Evolving CEO Robert Barker stated, "We are extremely pleased to establish a strong relationship with Goldcorp. We
view this placement as a major vote of confidence in our two key exploration properties. This additional funding places
Evolving Gold in a solid position to continue to aggressively explore these projects, which are both characterized as large scale
gold systems." Barker added, "We now have the financing to continue to support our exploration team as we drive toward
creating new value for our shareholders with major new gold discoveries."

Kaminak Gold* (KAM : TSX-V : $1.64), Net Change: 0.22, % Change: 15.49%, Volume: 761,366
Delayed reaction (celebration). Investors were piling into shares of Kaminak Gold Wednesday as the price of gold rebounded
and the markets rallied. Earlier this week, Kaminak released another set of impressive assay results from four step-out holes
drilled on the newly discovered Latte Zone, located on the company's 100%-owned Coffee property, in the Yukon Territory.
Management highlighted that a total of seven holes have now been completed at Latte over a 400-m length and every hole has
intercepted wide intervals of oxidized gold mineralization. The zone remains open in all directions. Some of the highlight
intersections included: i) Hole CFD-010 - 3.71 g/t Au over 16 m starting at 119-m depth; ii) Hole CFD-011 - 2.35 g/t Au over
51 m starting at 38-m depth; and iii) Hole CFD-012 - 1.27 g/t Au over 78 m starting at 24-m depth plus a newly recognized
high-grade deep zone yielding 17.4 g/t Au over 1 m starting from 176-m depth. The drill is currently located on the Supremo
Zone and is focused on extending the strike length of high-grade and shallow gold mineralization. A total of 21 drill holes have
been completed on the Coffee property. Additional assay results are pending from the Double Double zone and Supremo zone.
The company plans to mobilize a second drill to the Coffee property in mid-July.
New Gold* (NGD : TSX : $5.39), Net Change: -0.69, % Change: -11.35%, Volume: 14,288,810
"Are gringos falling from the sky?" – El Guapo (¡Three Amigos!). New Gold tumbled on news that a district court in Mexico
denied the company’s appeal over the cancelled environmental impact statement (EIS) at its Cerro San Pedro mine. On
Tuesday, the Fifth Auxiliary Court in Mexico City denied the company's appeal against the September 2009 ruling to cancel the
company's original EIS issued in November 2009. Although the court has informed the company that the decision is negative, it
has not yet provided the full decision including the written reason for the denial. Consequently, until New Gold has the chance
to review the full decision, the company remains unsure about implications on the mine's current operational status (the
company was granted an injunction in December 2009 allowing production to continue during the legal proceedings). New
Gold expects to file an appeal with the Collegiate Appeals Court in Mexico City and could file an application with the Mexican
Supreme Court. Responding to this latest development, Robert Gallagher, President and CEO said, "While we are disappointed
by this most recent decision, we will continue to pursue all avenues to ensure the continuous operation of Cerro San Pedro."
Canaccord Genuity Precious Metals Analyst Steven Butler did not share the company’s optimism. He believes this negative
development renews permitting/operational risk at the mine and a 10-15% decline in share price is appropriate. To account for
this news, he raised his discount rate on the Cerra San Pedro mine to 15% from 5% and lowered his target multiple on the
shares. He is now neutral on the story and notes that shares have also substantially outperformed the index year-to-date based on
a number of positive catalysts that already occurred.