Dear member,

In our dispatch of March 03 we alerted you on Mexivada's significant Diamond/gold discovery in ROC and mentioned to discuss this issue in detail later on. Below you'll find an extensive update on Mexivada's on-going projects and an interview with Mexivada's CEO Rick Redfern in which he shine's a light on recent developments and Mexivada's future.

NOTE OF CAUTION: Due to its speculative character the stock can have huge swings both up and down so this stock is not suitable for the nervous investor out there. Furthermore please take note of what I wrote earlier last week: Never invest more than 5% of your total investment capital into a single junior.

Mexivada Mining Corp - Sleeping Diamond Giant waking up!
MNV.V $0.70

Discovery of several large 'Macro' Diamonds at Mayoko ROC.

• Some of the larger discovered stones are of GEM quality and of fancy colors.
• Discovery of kimberlitic indicator minerals suggest kimberlitic source to be nearby

Discovery of 5 New Gold zones at Mayoko ROC.

• North Gold belt has 15 km strike length, South Gold belt 22 km long.
• Crushed BIF rocks yielding to more than 30 g/t gold
• Multi million ounce gold potential

Assay results of Moly Dome Molybdenum project Nevada coming out soon.

• +300m of visible molybdenite drilled in drill hole #1!
• Initial results do confirm the presence of porphyry-type molybdenum-(copper) mineralization indeed and a later phase of Carlin-age gold mineralization as well

Assay results of La Republica High Grade Silver project Mexico coming out soon.

• La Republica vein hit in all 11 drill holes! First series of drill holes encountered silver grades of up to 1.9 kg/t
• 2008 drill holes encountered thicker than expected fault- and vein widths

by Eric Hommelberg
March 09, 2008

Gold seems to be unstoppable these days and is challenging the magic $1000 mark for the very first time in history! The gold shares (senior) are near all time high territories as well but the juniors have been lagging tremendously. But that all will change soon since the juniors finally seem to have bottomed out and as pointed out in my articles 'Juniors a Buy of a Lifetime part I and part II' these are the times to acquire the high quality juniors. It's my strong belief indeed when looking back in 2012 to the entire gold bull market that began in 2001 we will point our finger to this period in time as one of the best buy opportunities for the juniors ever!

Last week I mentioned to our members 6 rock solid junior companies which are an almost sure bet for future growth. Today I want to focus on another TOP-20 stock with a more speculative character but with a stellar upside potential. It's Mexivada Mining Corp, a tiny junior explorer with a small market cap of $22 mio only.

Mexivada came out with impressive news last week from its Mayoko Gold/Diamond project Congo in which they announced to have discovered several 'macro' diamonds up to several mm in diameter. Some of them are of gem quality and of fancy colors, which are worth more than white diamonds! Mexivada also discovered diamonds at several places at their new, previously unexplored Vouka target area, which opens up yet another area for exploration. Discovery of large alluvial diamonds is a rare event but of more importance is the discovery of kimberlite indicator minerals in these areas on the same spot which suggests the presence of nearby kimberlitic Diamond sources (more on that below). Now here's where the fun starts, Mexivada is zooming in to the kimberlitic sources which could host several thousands of these 'macro' diamonds mentioned above, and mineable alluvial concentrations of diamonds also possibly could be present. Sure enough investors can wait until discovery of a kimberlitic source but needless to say it will be impossible then to get in at current cheap price levels.

Now if the Diamond finds weren't already exciting enough Mexivada announced two days later the discovery of 5 new gold zones on the Mayoko Greenstone belt as well. They find gold all over the place, the Mayoko Greenstone belt is characterized by visible gold in alluvium and in outcrops over 30 kilometres of combined strike length! Mexivada's geologists told Mr. Redfern that 1 million grams of placer gold could be present in the Malambani concession area at Mayoko; although no formal placer gold resource estimate has yet been made by the company. That would be equal to what the Avoine Company mined after World War II at Mayoko. Mexivada's president Rick Redfern, a former senior exploration geologist of Barrick gold, sees striking similarities with the famous Homestake mine (Redfern worked at the Homestake mine) which had an ore reserve of over 35 million ounces of gold. Redfern publicly stated that the Mayoko Greenstone belt has the potential for a world class gold discovery (5 mio ounces or more).

Now a 5+ million ounce potential sounds too good to be true since only about 7 world class discoveries of more than 5+ million ounces of gold have been discovered since 1985. Time will tell whether Redfern's 'guesstimate' is correct or not but the bottom line is the initial results are very encouraging indeed and there aren't many juniors with prospects as promising like this.

I realize that many investors out there like the progress being made but nevertheless prefer to apply a wait and see approach. In other words, they prefer to wait for some serious drilling results coming out of the ROC and that can take a while they argue.

I've got no problem with such an approach at all since we definitely need the drill rigs turning in ROC in order to prove up the tremendous gold potential there and yes, it can take a while for that to happen. The reasons however I would prefer to get in now is three fold:

• Juniors have bottomed out (see 'Juniors a Buy of a Lifetime part I and part II').
  The entire junior sector is on the verge of a massive up-leg that will catapult all juniors towards much higher levels.
• The short term surprise in ROC likely to emerge from Mexivada's recent Diamond discoveries, discovery of kimberlitic source could happen within months!
• Mexivada's other promising projects, Moly Dome molybdenum project Nevada and La Republica High Grade silver project Mexico, are due to release drilling results soon, which could have a significant impact on the stock.

So investing in Mexivada is not only betting on a significant Congo gold discovery but on a variety of promising projects of which some could boost the stock in short term and some of them in the medium/long term.

Another point of interest for current shareholders is the potential spin-off of the Congo projects into one or more new entities. Already in an earlier Dow Jones Newswire interview Redfern discussed the possibility for a Congo spin-off but he seems to be more in a hurry now. Redfern considers spinning off the Congo projects into two new entities, one new Congolese Diamond company and one new Congolese Gold company. Needless to say this would benefit current shareholders tremendously since each current Mexivada share would represent three different companies after the spin-offs. (more on that below)

As mentioned above Mexivada is awaiting the assay results from their Moly Dome and La Republica projects. Mexivada already mentioned in previous press releases to have intersected more than 300m of visible molybdenum in drill hole #1 on its Moly Dome project Nevada.  We simply have to wait for all the assays to be returned from the lab but a few initial results have been returned already, confirming the presence of porphyry-type molybdenum-(copper) mineralization indeed and a later phase of gold mineralization as well. Now on top of drill hole#1 Mexivada encountered high grade molybdenum grading up to 0.35% at the ground surface. Sure enough there are no guarantees here these high grades will hold up at depth but an average grade exceeding 0.10% would certainly something to cheer for.

At the La Republica mine things are going fast forward as well. In December Mexivada reported to have interected the La Republica vein with grades up to 1.96 kg/t. Mexivada is now awaiting the assay results of the 2008 drilling program which encountered a 'thicker than expected' vein. The La Republica mine has a 50 mio ounce silver exploration target and needless to say that on the back of sky-rocketing silver prices high grade drilling results could have a significant impact in the share price. Assay results are to be expected before end of March.

Below you'll find an interview with Mexivada's CEO Rick Redfern in which he shines a light on recent developments and Mexivada's future.

Interview Mexivada CEO Rick Redfern:

EH: Rick, let's first start off with the Congo Diamond/gold projects since you reported heavily on them over the last two weeks.  Could you explain the significance of the 'macro Diamond' discoveries? I mean big stones of up to several mm being retrieved from surface are not something being heard of quite often.

RR: Hi Eric! Yes we are quite excited about the prospect of finding the sources of these diamonds. Kimberlite indicator minerals ("Kims") never before have been found in the ROC, especially with diamonds, so that is a very positive step forward.

EH: You reported the discovery of a G-10 garnet and several other kimberlite mineral indicators as well. Could you explain the significance of that?

RR: Yes, our stream sediment sample concentrates yielded a G-10 high pressure pyrope garnet, which often occur with diamonds and kimberlite pipes. This G-10 was found at a low-lying site at Lepandza which panning yielded huge amounts of garnets and some chromites, which also are found in kimberlites. This G-10 site could be very close to or on top of a kimberlite pipe. We also have found Kims at our new Diamond discoveries at Madoka and Vouka, which is extremely positive.

EH: So you suggest the kimberlitic source of these 'macro' diamonds to be near. What do you expect to find? I mean if you find several 'macro' diamonds on surface then one would expect the corresponding kimberlitic source to host a substantial amount of such 'macro' diamonds. What are your thoughts about that?

RR:  We hope to find several kimberlite bodies, whether they be dikes or pipes. We do not know what form they will be in, although such pipes have been found in Gabon at Makongonio-Mbigou, located just 60 Kms northwest of us. The amount of diamonds in each pipe can only be determined upon testing. The fact that we have a high percentage of colored diamonds, including rare bluish and greenish gem quality stones in our recovered diamonds also is extremely positive, as these colored stones are a very hot market now by such marketers as Tiffany's, and with specialty colored Diamond  merchants such as Pastor-Geneve and Commonwealth Diamond Group, with whom we are in touch.

EH: Given the fact the kimberlitic source must be present in a layer of 2 meters only from surface it is quite possible you'll discover the corresponding kimberlitic source by means of simple trenching. Is that correct? And if so could you give us an update of the current status of the on-going search?

RR: We are still conducting our reconnaissance sampling exploration of good, defined target areas near Mayoko. We will be starting hand trenching of "anomaly" areas such as Madoka and Vouka very shortly. Last year we briefly conducted track-excavator trenching for kimberlites on our Bitsandou concession at Bikelele, but did not find any Kimberlites or indicator minerals there, although much more work needs to be done at Bikele, as top, gem quality colored diamonds were found in one of the creeks there.

EH: Now let's shift to the new gold discoveries in the Mayoko Greenstone belt. You reported last Monday to have discovered 5 new gold zones of which most being characterized by large BIF gold areas. You've stated earlier to see great similarities with the famous Homestake gold mine that had a resource of over 35 million ounces of gold. Furthermore, earlier you stated a belief that the Mayoko Greenstone belt could host a world class gold deposit. When you make statements like these you know it will be met with great skepticism since only a very few world class gold deposits have been discovered since 1985. Could you explain what makes you confident to make such statements even when no drilling has been done over there?

RR: The scale of the greenstone belt and the cumulative length and thickness of individual iron formation layers (to 20m+), and the presence of pyritic BIF that carries up to 1 to 11 gram per tonne gold values at Mayoko suggests to me that a lot of ounces could be present here. Nothing is guaranteed, of course, and secondary gold at the surface almost certainly is present, as well as accumulations of gold particles by removal of surface soils by weathering and stream erosion has concentrated gold here in many places. But this also has given rise to alluvial gold concentrations, which may well be economically recoverable. Gold nuggets up to 1 kilogram in weight have been mined here, in the southwestern part of our Malambani concession area, which we will map and sample this spring and summer. The amounts and grades of lode gold can only be determined here by bulk sampling and drilling.

EH: How serious is your consideration to spin-off the Congo Diamond/Gold projects into new entities indeed? And if so in what time-frame?

RR: We value our shareholders and are examining every way to increase shareholder value, including the spinoff of separate companies that would give our shareholders additional shares in these entities. We are quite serious about this, because with more than 12 projects in Mexivada, a discovery on any one of them could lead to a hostile takeover attempt, given our tiny $22 mio market cap, and the voracious appetite of larger mining companies to take over juniors with good prospects.

EH: In November last year you reported to have intersected 300+m of visible molybdenum on Mexivada's Moly Dome  molybdenum project in Nevada. Last week you reported that some initial results already came in which do confirm the presence of porphyry-type molybdenum-(copper) mineralization indeed and a later phase of gold mineralization as well. Any idea how much longer shareholders have to wait for the remaining results?

RR: The assays and geochemical data are coming in rapidly now and our project geologist is busy compiling and interpreting the data. It should be very soon.

EH: In December last year you reported on the La Republica High Grade silver project Mexico to have intersected up to 1.96 kg/t silver. Now last week you reported that the 2008 drill holes encountered a thicker vein at depth than expected. Could you tell us something about the exploration target you have for La Republica and how long investors have to wait for the remaining assay results?

RR:  The assays and geochemical data for La Republica also are coming in rapidly now, and our project geologist also is busy compiling and interpreting the data. It should be very soon. As opposed to the larger, gold-rich system just to the north at Yecora, the vein system at La Republica was mined predominately for silver, with some byproduct gold, zinc, and lead. It did, though, have a reported zone with 0.25 ounce per ton gold in it. We are looking for a few new ore shoots at La Republica, to augment possible future mine production at Yecora, as a combined mine unit with Yecora. More drilling will have to be done at both properties before such a determination could be made.

EH: is there anything left what you want to say to current and potential new shareholders?

RR: We thank our shareholders for sticking with us and having patience with the work efforts we have undertaken. Our Congo project area is very large, and will take time to examine and sample thoroughly. We feel that the wait will be rewarded. Mexivada's project portfolio is quite large, giving us all many opportunities to achieve true success and financial reward. We are working hard to achieve these goals. Thank you, Eric!
 

Technical view:
 

Highlights:

• Discovery of several large 'Macro' Diamonds at Mayoko ROC
• Some of the larger discovered stones are of GEM quality and of fancy colors
• Discovery of kimberlitic indicator minerals suggest kimberlitic source to be nearby
• Discovery of G-10 high pressure pyrope garnet which often occur with diamonds and kimberlite pipes. This G-10 site could be very close to or on top of a kimberlite pipe
• Mayoko Greenstone belt has a multi million ounce gold potential
• Mayoko Greenstone belt is characterized by visible gold in alluvium and in outcrops over 30 kilometres of combined strike length!
• 1 million grams of placer gold could be present in the Malambani concession area at Mayoko
• Crushed BIF rocks yielding to more than 30 g/t gold
• Assay results of Moly Dome Molybdenum project Nevada coming out soon
• Moly Dome drill hole #1 encountered +300m of visible molybdenite
• Assay results of La Republica High Grade Silver project Mexico coming out soon.
• La Republica vein hit in all 11 drill holes! First series of drill holes encountered silver grades of up to 1.9 kg/t
• La Republica 2008 drill holes encountered thicker than expected fault- and vein widths.

Valuation:

The burning question remain of course what shareholders can expect coming months regarding Mexivada's share-prices. Before trying to answer that question I want to emphasize again the speculative nature of stocks like these hence the small market cap of $22 mio only. What I mean is that no-one can guarantee the discovery of a new world class gold discovery or a kimberlitic source for fancy colored gemmy diamonds, if that would be the case then this stock would be trading above $20, not at 70 cents!

Now as mentioned above I expect the entire junior sector to lift off during this year and it's my strong belief we might have seen the bottom in the junior sector indeed, see 'Juniors a Buy of a Lifetime part I and part II' . Needless to say Mexivada shares will benefit from an appreciating junior sector. In other words, the bottom of the junior sector seems to be in so you will be buying Mexivada shares at rock bottom levels here.

So where to go from here?

Mexivada shares already touched a high of $1.19 in November last year but have been drifting back towards the 70 cents area as of late. This 4 months down-trend however is on the verge of being breached to the up-side soon (see chart above) which will mark a new 'BUY' . From a technical point of view this new 'BUY' could mark a new up-leg that could challenge the 2007 high. (TA price objective = $1.30)

The price objective of $1.30 could be very well supported by the up-coming drilling results from Moly Dome and La Republica. So for the next three months I see a good potential for this stock to appreciate towards the $1.30 mark supported by:

• Recovery entire Junior sector
• TA analysis (break-out of a 4 months down-trend to be expected soon)
• Upcoming drilling results from Moly Dome and La Republica

That's about the short term. The surprise however could very well emerge from ROC in case a kimberlitic source will be discovered for the 'macro diamonds' just recently being found. You don't have to be a rocket scientist in order to understand what a discovery of a kimberlitic source that could host several thousands of such 'macro diamonds' could do for the stock. The company would be a $100+ million company instantly which translates itself into share prices of $3+ and higher. The only question here remains is when. Whether it will be next month, this summer or year end we don't know so a little patience is required here.

So short term target: $1.30+ (June 2008), medium term target: $3+ before year end.

Now please don't think these price targets are exaggerated since $1.30 and $3.00 share prices only reflect a market cap of $40 million and $100 million only.

Exciting times ahead indeed