Winston’s Growth Stock Report

Your Source for High Potential Stocks

Issue 26 July 7, 2011

Nevsun Resources (NSU, TSX/AMEX) Q2 Results - Outstanding Profitability

A few weeks ago I mentioned NSU was on a nice growth trajectory based on the impressive Q1 production results of 75,000 ounces of gold with cash costs at a low $299/ ounce. The gold price realized per ounce in Q1 was US $1405. A great start for the inaugural first quarter.

I went on to mention that at least 8 research and brokerage firms are following Nevsun and a sampling of the price targets taken in June pegged NSU at $7.40. With Nevsun now trading at $6.16 there’s still a big upside however based on today’s Q2 news release we should see some upwardly revised projected price targets:

Nevsun Q2 Operating Highlights

• 93,000 ounces produced in Q2

• 168,000 ounces produced year to date

• Cash balance $US 186 million

Nevsun Resources Ltd. is pleased to announce strong production results of 93,000 ounces of gold for the quarter ending June 30, 2011. Year-to-date the Bisha mine in Eritrea has produced 168,000 ounces of gold, including 41,000 ounces during the commissioning phase early this year. Cash increased to US$186 million at June 30, 2011.

The Bisha mine continues to operate in excess of plan for mill gold recovery and the rate of gold production during Q2 was approximately 1,000 ounces per day. The rainy season in Eritrea at the Bisha site, which began in June and should end in September, has had no material impact on operations to date. The Company started civil works in June in preparation for construction of the second phase copper plant.

I think what will catch many analysts by surprise is the quick production ramp up that has taken place. With 168,000 ounces now having been produced at the end of Q2, even assuming production output stays flat quarter over quarter Nevsun is on track to produce 354,000 ounces in fiscal 2011. This is more than twice as much as some earlier analyst reports were estimating.

Based on this smooth ramp up in production, we should see analysts increase their price targets accordingly.

Nevsun plans to release its full Q2 results on August 10, 2011 with a conference call following on August 11th.

Petromanas Energy (PMI, TSX,V) -Q1 News

Petromanas has commissioned an updated resource report to incorporate all of the new seismic data and the G&G work done by the new management team. The report which is expected in July will give a more realistic estimation of the potential of their oil fields in Albania.

PetroAmerica Oil Corp. (PTA, TSXV) Las Maracas-2 Well Update

On January 4th of this year, PTA announced agreements had been reached with Talisman (Colombia) Oil & Gas Ltd. to acquire participating interests in four exploration blocks in the Llanos Basin of Colombia.

As you will recall from my earlier reports, Llanos Basin is a proverbial elephant country area for profitable oil well discoveries in Colombia.

The deal called for Petroamerica to pay US$18 million which would earn them a 25% participating interest in the El Porton block and 50% participating interests in the Los Ocarros and El Sancy blocks. Petroamerica will earn its 25% participating interest in the El Eden block, excluding the Chiriguaro-1 discovery, after paying Talisman’s 50% share to a cap of US$7.85 million to drill one exploration well at a future date.

All four blocks are operated by CEPSA COLOMBIA S.A.

Earlier this year the first exploration well was drilled at the El Porton block which resulted in technical problems leading to the abandonment of the Calatea-1 well. However they may go back and re-test it at a later date.

This week’s news reported that the Las Maracas-2 exploration well, located on the Los Ocarros block was drilled on the edge of the Las Maracas oil structure and only found minor hydrocarbon shows.

Now batting 0 for 2 on the 4 Talisman Blocks, PTA did have some good news to report.

A 2:1 farm-out agreement has been reached with Parex Resources Colombia Ltd. (PXT) to pay 100% of well costs up to $7 million to earn a 50% working interest in the Las Maracas structure and a 25% working interest in the balance of the Los Ocarros block. Parex and Petroamerica will each bear 50% of any additional costs relating to the exclusive operation.

As a consequence of the farm-out, Petroamerica and Parex have agreed to fund an exclusive operation to drill a sidetrack well to the Las Maracas-2 exploration well.

Nelson Navarrete, CEO and President of Petroamerica stated that "given Parex's operational experience in the immediate vicinity on Block LLA-16 and the Kona Field, this is a very positive development to have them as a partner with Petroamerica in this exclusive operation".

The transfer of Petroamerica's 50% working interest pursuant to the Talisman farm-out remains subject to approval by the Colombian National Hydrocarbon Regulatory Authority and the subsequent transfer of 50% of such working interest (net 25%) to Parex is subject to approval by both the ANH and CEPSA COLOMBIA S.A. who are the operators.

It looks like the “dud” Las Maracas-2 well may be resurrected to a money maker yet. And possibly at no cost to PTA.

Wildcat Silver (WS,TSXV) Heading for the Big Board

Wildcat Silver recently announced that its common shares have been conditionally approved for listing on the Toronto Stock Exchange. Wildcat's President and CEO, Chris Jones stated, "This is an important milestone for the company as it provides us with further opportunities to increase our exposure in the public markets. We look forward to continuing to achieve successes throughout the year."

Wildcat was trading in the doldrums for months until their silver resources started to look more positive to the market. Step out drilling this year included 20.0 m of 329.8 g/t silver. Wildcat has completed an updated preliminary economic assessment which reports a 18-year mine life with projected production of at least 6 million ounces of silver for the first full five years of operation.

Stock List

AQM Copper (Apoquindo) (AQM) April 24, 2009 54 cents; holding Dec 9/10 sell $1.02 hold Free shares.

Catalyst Copper (CCY) Entered Jan 6/10 25 cents; accumulating

Donner (DON, TSXV) Dec 4/09 heads up alert 0.15 cents, Jan 17/10 doubles holding free shares

Edgewater Exploration (EDW, TSXV) Entered June 28/10 90 cents accumulating

Encanto Potash (EPO, TSXV) Entered July 31, 2009 .27 holding; Feb 11 2011 doubles Take Profits, holding free shares.

Endeavour Mining (EDV, TSX) Entered Feb 4/10 $1.73; Profits taken Ap 9@ $2.42 Holding Free Shares; Re-accumulating June 17/11@ $2.17

Grand Colombia Gold Corp (GCM, TSX) accumulating Dec 3/10 $2.24

Hathor (HAT, TSXV) Top Uranium Pick Entered March 28, 2006 $1.32; Ap 21/08 sold $2.64, Oct 21/10 sold $2.33 holding free shares. Bottom Fishing March 17/11 @ $1.70

Nevsun (NSU, TSX) Feb 4/10 Buy Alert 2.19, profits Oct 20/10 $5.39 holding free shares

New Gold (NGD, TSXV) Dec 29/08 Best Speculative Pick $1.76; June 11/10 doubles holding free shares

Orsu Metals (OSU, TSXV) Bottom Fishing Pick July 23/10 @16 cents, Sell Oct 3 @32 cents and holding free shares

Petroamerica (PTA, TSXV) Nov 6, 2009 Speculative at 70 cents, Jan 8 new pick accumulate slowly 71 cents; Oct 16/10 buy @0. 405 cents; accumulating; Speculating with PTA Warrants which have a strike price of 35 cents up and expire May 9, 2014. (PTA.WT.B)

Petromanas (PMI, TSXV) Feb 24/10 30 cents. Profits taken Apr 9/10 @ 72 cents; holding free shares; May 2/10 re-accumulating at 33 cents

Potash One (KCL, TSX) Top Potash Pick Entered May 14, 2008@ $3.19 holding Nov 22/10 buyout announced at $4.50 per share

Prima Colombia Hardwood (PCT, TSXV) Introduced March 7 @ 0.285 accumulating

Uracan (URC, TSXV) Speculative Uranium Pick Apr 30, 2010 Alert 18 cents; holding

Ventana Gold (VEN, TSXV) Entered Mar 18/09 $1.33, holding free shares. Buyout bid Nov 17/10 @ $12.6; Revised buyout price February 14/11 @ 13.06

West African Iron Ore (WAI, TSXV) Bottom Fishing June 28, 2011 at 24 cents

Wildcat Silver (WS, TSXV) Entered July 10th, 2009 0.485 holding; Sell Alert February 14/11, Feb 15 close 88 cents. Holding Free shares