A Comment -- General Comments From an Expert (A Commentary)

Uranium: - Investment funds bought up uranium in the spot market and the influx of the money significantly distorted uranium prices. He sold most of his uranium stocks. Cigar Lake mine represented 11%-12% of worldwide demand and the flood represented a major problem for the uranium industry. Outlook for the price of uranium is very positive now.

Management: - Looks on his portfolio as a portfolio of management teams, not stocks. Management is the single most important aspect when buying small, illiquid and highly volatile stocks. 3 things are needed, 1) Integrity. They have to manage in the best interest of shareholders, not management 2) Technically competent 3) Financially competent.

Uranium commodity will remain very strong. The supply/demand is very much favouring the commodity. Not a lot of capacity coming on for the next 3 years.

Over the past 3 years, in the 1st quarter, there has been a 10%-20% decline in REITs, so expects volatility in early 2007, so be cautious

(Government of Canada- 10-year Bond was a Top Pick Sept 27/06. Up.) Yield price has dropped, so the bond price has gone up. Would still Buy. For the gamier players, even 20-year bonds.

Income Trusts: - Possible there could be more weakness because of 1) funds that have redemption dates mid-December and 2) tax loss selling. Could create some good opportunities. Have to be selective.

Financials: - Doesn’t trade Canada a lot, but from what he sees they have run up quite strongly. In the short term, they seem to be overvalued.

Gold: - Likes gold on a long-term basis. On a short-term basis, it’s had a nice run from $575 to $650.

Banks: - They are all Buys. Cheaper than the TSX on a price/earnings basis based on 07 earnings. Yields are all well above the TSX yields. First-class, long-term holdings.

Ace convertible debentures, 4.25%, due June 1 2035. The parent company for Air Canada, Aeroplan, Jazz. If you take out the public pieces, you essentially get Air Canada for free.

US $: - Terminally ill dollar will propel gold to a new high in 2007. The average party has too much debt. Real estate market has now completely died. Expecting to be in a pretty sharp recession in 2007. Forecasting gold at $875 next year.

Emerging Markets: - Your best return will be doing research and finding individual companies in regions you are interested in. Access could also be made through some of their banks. The other way would be ETF’s which would have the lowest expenses. Also consider actively traded funds, which were, tend to avoid some of the losers.

Preferred Shares: - He is a proponent of preferred shares where you are getting dividend income as opposed to interest income. Tax on dividend is roughly 20% and on interest, roughly 46%.

Dividend versus Bond: - On a growing company, dividends should increase and eventually pass the rate of return on a Bond. Banks are good examples.

Copper Outlook: - The fervour is in the Chinese demand. They have started increasing their internal production so copper prices have dropped.