MORNING NOTES 1 OF 3 8/13/2010

MORNING NOTES Friday August 13, 2010 Michael A. Berry, Ph.D.

As if Canada needed any more proof to justify its perch atop the list of destinations for mining exploration, the Fraser Institute recently released its mid-year ranking of the best and worst jurisdictions for mining exploration globally. While investor confidence has been shaken over the past few months by potential tax increases and the like, Canada managed to maintain four of the top five spots out of fifty one jurisdictions. Alberta, Finland, Quebec, the Yukon, and Saskatchewan round out the top five with Newfoundland/Labrador placing seventh. When one country secures four of the top five and five of the top ten slots in this ranking, clearly that country is doing something right. While the top spot has belonged to Quebec for the past three years, they've fallen to a still-respectable third place due to announced tax increases on explorers. While a number of mining exploration plays are on-going in Quebec, one we've written on in the past seems to have popped up on various radar screens with a significant increase in both volume and price.

Goldbrook Ventures (GBK: TSXV), exploring for copper-nickel-PGM deposits in the Cape Smith Fold Belt of Northern Quebec, is in the midst of a drill program consisting of up to 25,000 meters of Diamond drilling. They own the largest land package in the region (891,000 acres) and have completed two shrewd ventures with Jilin Jien Nickel Industry Co. of China to explore these deposits and also move to eventual production on the Nunavik Nickel Project, a 43-101 compliant resource acquired in the takeover of Canadian Royalties. With Xstrata producing 1.2 million tonnes of ore per year not far from where Goldbrook is exploring, we think this is "elephant country" and it's only a matter of time before Goldbrook's drills start telling a very compelling story. In fact, based on our research, we believe that if Goldbrook continues its exploration plans in the Raglan through 2011 they have a chance to discover Voisey Bay-type ovoid (highly enr iched) ore bodies. Finally we think the polymetallic nature (copper, nickel, cobalt and PGM's) of the Raglan's deposit, particularly on the southern trend will make the production almost "bullet proof" from the economic cycle.