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To: Riverlightning who wrote (1515) 11/6/1999 11:45:00 AM From: keith massey   Read Replies (2) | Respond to of 5053   I finally finished the summary post...remind me not to undertake a task like this again <ggg> For the record - I first purchased JDX at .42-.65 last Dec 98 - March 99. I sold the large majority of these holding in April 99 from .98-1.10. I sold my shares back then because at the annual general meeting held in April management appear to be only at the start of a large restructing plan. My plan was to buy back my shares at a lower price during a news blackout and hold them for the big announcements due out later in the year. During the past 6 months I have been accumulating shares between .83-.66. I now hold a very health position with an average price ~.73. I have also purchased shares the past few days as the momentum has started to pick up adding to my current position. I have not sold a single share in the last 6 months and have not sold any into the current run. I have a set price target substantially higher then the current price. At this point I will sell half my position and hold the other half of my position long term. I like to be very straight forward with my intentions and positions in a company. Best Regards KEITH

To: Riverlightning who wrote (1515) 11/6/1999 11:50:00 AM From: keith massey   Read Replies (2) | Respond to of 5053   The following document is a summary of my due diligence efforts on a stock I have followed very closely over the past 10 months. JORDEX is listed on the Toronto Stock Exchange (TSE) under the symbol JDX. I am a private investor who is not compensated by the company in any way, however I am currently a shareholder and I have contributed regularly to both the Silicon Investor and Stockhouse Bullboard threads. This document is a substantial one, as I have taken extreme effort to verify and cross-reference all of the facts listed in it. SUMMARY (November 6, 1999) -In the coming months management has stated its intentions to restructure the company. Based on my discussions with management it has become very apparent that they are planning on restructuring the company based on a organizational model similar to that being presently used by companies such as ICGE, CMGI, SFE, idealab!, or Softbank. However the company has stated that if the opportunity presented itself they may opt to use their finances to make a single large investment in one U.S Company. -They hold $21.5 million in assets ($19 million cash) with no liabilities and presently have a positive cash flow. -The company has stated that they are in the process of screening potential U.S acquisitions in the telecommunications and business-to-business e-commerce sectors. -On June 21/99 they made a $1.5 million investment in Medsite.com, a much anticipated and potentially "HOT " Internet IPO coming out on the NASDAQ in the next quarter. The investment is convertible into shares of Medsite.com at a price significantly below their IPO price. -Insiders have been aggressively buying shares during the past year, and my research shows that these same insiders have not sold a single share in the past year. -Insiders and "friendly" hands currently own ~50% of the outstanding shares. -Management has a long history of finding and closing big deals. All questions can be forwarded to either Jim Graham (1-800-675-1749), investor relations for Jordex (jimgraham@jordex.com) or post them directly on the "JDX" thread on the Silicon Investor (https://www.siliconinvestor.com/subject.aspx?subjectid=12441). If you prefer, you can also send them to me at KeithMassey36@hotmail.com and I will attempt to provide you with an answer. Quote: fin-info.com Note: Price is quoted in Canadian funds ($1 Can. = ~0.67 U.S) Discussion Topics: 1. Background 2. Business Strategy and Opportunity 3. Management History 4. Medsite.com 5. Insider holdings / Friendly hands 6. Financials 7. Name Change 8. US Listing 9. Newsletters/Advisors 10. Technical Analysis 11. Lome de Niquel 12. Why isn't the stock higher? 13. Final Thoughts 1. BACKGROUND: Jordex was incorporated in 1987. They received their TSE listing in January 1989. For much of their past, they were in the mining industry. With new management changes, extensive industry contacts, and a substantial bank balance, they are now looking to make the best use of their experience and available cash. In 1996, Brian Hinchcliff (Chairman and CEO) negotiated a deal whereby the company sold one of their mining properties at the peak of the mining bull run (Loma de Niquel - see below). This property was sold for $22 million (Can.) leaving the company with an inflated treasury. In a May 5, 1998 letter to shareholders the company stated that as a result of historically low metal prices the company considered leaving the mining industry. Earlier this year the company began unveiling its new business plan. Late in January, the company retained Hamilton Group LLC, of White Plains New York, to assist in the identification of new opportunities. Around that time, the president of the Hamilton Group, William Staudt, was appointed to the Jordex board of directors (http://www.jordex.com/news9901.html). In addition, well-known Swiss financier Carlo Civelli was also brought on as a director of the company (http://www.jordex.com/news9902.html). In June 1999, in a deal set up by William Staudt, the company made an investment in Medsite.com, a much anticipated (and potentially "HOT") IPO coming out on the NASDAQ in the next quarter (see detail below). On October 15, 1999 the company announced that William Staudt was appointed President and co-CEO of Jordex (http://www.jordex.com/news9907.html). The company has stated that they are actively seeking U.S acquisitions in the telecommunications or business-to-business e-commerce sectors. Although the company has stated that if the opportunity presented itself they may opt to use their finances to do one large deal, Jim Graham (Investor Relations) has recently stated in an interview that the company was far more likely to do several financing deals similar to Medsite.com. In numerous talks with the company, it has become very apparent that they are likely to structure the company similar to ICGE / CMGI / SFE / idealab! and Softbank. 2. BUSINESS STRATEGY AND OPPORTUNITY: As a result of employing a similar business strategy, companies such as ICGE, CMGI, SFE, idealab! and Softbank have experienced tremendous growth in their share price. . In a nutshell, these companies are presented with, and subsequently analyze thousands of business plans a year. These plans are presented to them from primarily private companies near the start of their growth phase. After extensive due diligence they will generally end up only investing in a select few of the thousands of companies they screen each year. For the most part, once they invest in a company they become actively involved, assisting them with developing business strategies, operations, management teams, etc. Their main goal is to assist the company to become a publicly traded market leader. In addition, companies such as ICGE and CMGI integrate their partner companies into a collaborative network that leverages the collective knowledge of the companies to help accelerate their growth. A good example of the potential growth for this type of business model is provided by performance of CMGI. A $1000 investment in CMGI's IPO less than six years ago would be worth ~ $500,000 at the recent highs (http://finance.yahoo.com/q?s=CMGI&d=my). This exponential growth was largely the result of a combination of exceptional management - who could recognize companies with the potential for large growth, and the opportunity to invest in those companies right near the bottom. For example, in 1995 CMGI paid $2 million for 80% of Lycos; CMGI's remaining 17% stake is now worth over $900 million. The recent strength of the Internet Capital Groups (ICGE) IPO also demonstrates the large potential investors see in this business model (http://finance.yahoo.com/q?s=ICGE&d=1y). Businessweek Article on CMGI: OCTOBER 25, 1999 techstocks.com Wall Street Journal Article on SFE: OCTOBER 18, 1999 Message 11672353 Businessweek Article on ICGE: NOVEMBER 1, 1999 ISSUE Message 11702414 As each of the above companies continues to grow in size, it is clear that it will be more difficult for them to maintain the exponential growth rate they have enjoyed over the past few years. It can be argued that because they currently demand multi-billion dollar market capitals, they have already gone through their tremendous growth phase. My belief is that by using this type of business model, it will be the smaller companies, such as Jordex, possessing exceptional management, strong business connections and capital resources who have a greater likelihood of offering their shareholders the opportunity to realize a similar exponential growth of their investment. Jordex has already demonstrated through its first investment in Medsite.com that management is able to recognize, and invest in, companies with the potential for large growth. 3. MANAGEMENT HISTORY: WILLIAM STAUDT (President, co-CEO) Mr. Staudt was appointed President and co-CEO in October 1999. As their new president he brings some impressive credentials to the position. Background - Mr. Staudt has been actively engaged in the merchant banking and buyout business for over 25 years. He is a graduate of both Yale University and the University of Michigan Law School. Earlier in his career, Mr. Staudt worked for A.G. Becker Inc., a merchant banking firm that was later taken over by Merrill Lynch. As a principal with Hamilton Capital Partners (located in White Plains, NY), which he helped found in 1990, he has been involved in numerous in leveraged buyouts throughout his career. Mr. Staudt's past business record is very impressive. An interesting excerpt from a recent CSW Streetwire report that illustrates this: "he sponsored the acquisition of a company for an estimated $15-million (U.S.) through a financing deal. The company was sold three years later for approximately $240-million (U.S.)". His ability to secure an investment in a hot Internet IPO (Medsite.com) coming out in the next quarter demonstrates the powerful connections Mr. Staudt has in the business sector. (https://www.siliconinvestor.com/readmsg.aspx?msgid=11671281) - During the past 12 months Mr. Staudt, through his private account and Hamilton Capital Partners, has purchased 1,300,000 shares and presently holds options to purchase another 1,000,000 shares. One of the first rules I follow when researching a company, and then taking a position in it, is make sure that insiders/directors have a large stake in the company and are buying shares. Mr. Staudt's current purchases have given me a strong sense of confidence and trust in the direction the company is heading. BRIAN HINCHCLIFF (Chairman and co-CEO) Mr. Hinchciff is the former president of the company and is presently Chairman and co-CEO. Mr. Hinchcliff has served as a director of Jordex since August 20, 1990. He also has an impressive history and has a wealth of experience upon which he can draw upon. Background - Mr. Hinchcliff is a former Vice President at Goldman Sachs (J. Arron division). He has served as a director for numerous successful resource companies and was a co-founder of American Pacific and Mining Co. He is President of AMPAC Group, a private Florida company which, during the past decade, has purchased several large blocks of shares in JDX. Mr Hinchcliff demonstrated his business savvy by securing the sale of Loma de Niquel for $22 million at the peak on the mining boom in 1996. Mr. Hinchcliff presently holds 2,274,771 shares, and according to the latest Sedar report he also holds 225,000 options. From information that I was able to obtain from the last 3-years of Sedar reports it appears that Mr. Hinchcliff, even as the company climbed to almost $4 in 1997, did not sell any of his shares in JDX. Nor did he sell any shares as it fell back to the present price. I believe that through both this climb and fall in share value, his confidence in the value of the stock demonstrates Mr. Hinchcliff's enormous confidence that he has in the company - and their ability to achieve significantly higher prices. CARLO CIVELLI In order to move a company's share price to high levels, it is necessary for the company to ensure that the investment community knows about, and understands, the tremendous potential of their business plans and their ability to carry them out. To achieve this, it often requires well-planned and intense promotion to bring the stock to the attention of millions of investors and fund managers. Companies, their promoters, and a select few "very dedicated private investors" who are effective at doing this are generally successful at generating a large, and loyal following. Unfortunately, great potential and management, without good promotion behind it is often not enough to generate high share prices. The individual who will likely be coordinating much of Jordex's promotion is a well known, and well connected Swiss financier - Carlo Civelli. Mr. Civelli was brought on as a director in JDX on Jan. 20, 1999 (http://www.jordex.com/news9902.html). He has been involved in some of the biggest promotions in Canada in the past 20 years, and he has been involved with several large U.S based promotions as well. Mr. Civelli is also very well known for his success in arranging large European based financing for companies he is involved with. His first big mark was made in Vancouver in 1981-82, when he and Doug McRae helped to make Breakwater Resources (BWR) one of the market successes of the year. Over the many years that he has been involved with selected Canadian companies, the percentage of these companies whose share price increased dramatically is impressive (e.g. NMR, SLU, AHV, UP, RDL etc - all TSE and VSE companies). His involvement also includes several big U.S names (Novadigm - NVDM and International Cablecasting). What is most impressive is that many of these companies have gone up 500% or more in the year after Mr. Civelli purchased his shares. The last big promotion I can connect Mr. Civelli to is NIR on the TSE. Prior to starting his promotion efforts, Mr Civelli held approximately 2.65 million shares, acquired at 15 to 21 cents. His holding in this stock included a large private placement at .20 which he took down several months before the promotion started (Source - CSW Streetwire report, June 1998). In a three month period, from March to May 1998, NIR's went on an amazing run hitting a high of $4.88 on May 6. At the peak of this run, Mr. Civelli's initial investment translated into a more than a 2500% gain. This is not Mr. Civelli's first involvement with Jordex. In November 1990, Mr. Civelli, through Clarion Finanz AG, purchased 277,000 shares at .90 with attached warrants. Since Mr. Civelli was not a director of the company at the time it is unclear how many shares he may have purchased on the open market prior to, or after, the private placement. After Mr. Civelli's private placement, Jordex climbed over 350% over the next year. On July 1991, JDX arranged a $5.75 Million US financing with a group of European investors at a price of $3.15 (likely headed by Mr. Civelli). (http://www.intelligentspeculator.com/charts/19991024/1200/civ2.gif). However, as a result of disappointing initial drill results the company was not able to remain at this new found high. Through his private account and his Zurich-based financial company - Clarion Finanz AG, Mr. Civelli now owns 1,731,666 shares of Jordex Resources. 500,000 of these shares were purchased through a private placement on February 8, 1999 at .60 (http://www.jordex.com/news9904.html). At the time of this purchase Jordex was selling just below .60 so Mr. Civelli did not receive his shares at a discount to market value. In addition, Mr. Civelli holds options to buy an additional 600,000 shares. After conducting my research, and following his record, I believe that Mr. Civelli's large holdings in the company speak volumes about where the share price is likely heading. Over the past few weeks, as I have placed my usual phone calls to JDX management to ask my questions, they sound more upbeat and confident in explaining where they are in there timing. I now believe that they must be close to being ready to announce their investment strategy and plans going forward. In the right hands, I am confident that their story would be a very easy to sell to the investment community. I find it encouraging knowing that the majority of shares held by Mr. Civelli have been purchased very near to the current share price. In addition, I also believe that one of the primary reasons Mr. Civelli was brought on board was to secure financing with European shareholders at far higher prices. JOHN FAIRCHILD (Vice-President Finance) John Fairchild joined Jordex in 1994. Mr. Fairchild holds degrees in Math & Economics, from Carleton University, Ottawa and is a Chartered Accountant. Mr. Fairchild was formerly a general practice partner (14 years) with Coopers & Lybrand (now Pricewaterhouse Coopers) in Vancouver, BC. Pricewaterhouse Coopers provides solutions and strategies to businesses, public and private, in numerous industries including communication JAMES GRAHAM (Vice-President Investor Relations) James Graham joined Jordex in 1995. Mr. Graham has spent over 14 years representing Canadian and U.S. public companies. Mr. Graham developed an independent franchise for the Shaklee Corporation and held management positions with American Airlines. Prior to his position at Jordex he was Vice-President of Investor Relations of Siskon Gold Corporation, a company trading on the NASDAQ stock exchange. During the period from 1988 to 1994, the company grew ~1400% with Mr. Graham at the helm. During this period, Mr. Graham was instrumental in securing a large financing deal for the company. Mr. Graham left Siskon Gold in 1995 while the company was still near its all time high to joined the management team at Jordex. UNITED STATES CONNECTIONS The company has stated that it is primarily seeking U.S based acquisitions. I believe that in order for any firm to be successful in the US mergers and acquisitions arena, they must first have spent considerable time developing and nurturing a wide network of US connections, and potential supporters. Some investors may conclude that because Jordex is only a small Canadian company listed on the TSE, they will have a hard time breaking into the US market. If so, then I believe that these people will have come to the wrong conclusion. I will grant you that on the surface it is easy to make this assumption. People may assume that because they have a field office in Vancouver, British Columbia, they must just be a small Canadian based company. However, when you dig deeper, you will find that most of their management team - Mr. Staudt, Mr. Hinchcliff, Mr. Graham and Mr. Civelli all have set up a base of operations in New York City, NY. It is only John Fairchild who operates out of the Vancouver, B.C. office. The rest of the management team has maintained their residence (and more importantly their corporate connections) within the United States. What is more interesting is that the majority of Mr. Staudt's previous business activities have primarily involved dealings with U.S based companies. On top of this, I have found that Mr. Civelli has also had a great deal of experience with numerous U.S based companies as well. He has also held seats on the boards of many of these same companies. To add to this, I have found that Mr. Graham's depth and breadth of experience in previous Investor Relation positions have also been with U.S based companies. I believe that the extensive relationships and experience the management team has developed within the United States will serve them well as they unveil their plans in the near future. In addition to U.S connections, Mr. Civelli is also very well known for his European connections and ability to secure large financing with European investors. Prior to coming to North America, Mr. Civelli severed as Vice President of a European NYSE brokerage firm for 7 years and also severed as Vice-President with New Province Securities in Zurich. In summary, I believe that it is important to stress that this story will not just be targeted to a Canadian audience. I am confident that many US and European investors and investment firms will be eager to hear what their friends at Jordex have been up to. NOTE - This is only half the document. The rest of the document is continued in the next post. Message 11830878

To: Riverlightning who wrote (1515) 11/6/1999 11:50:00 AM From: keith massey   Read Replies (10) | Respond to of 5053   4. MEDSITE.COM (http://www.medsite.com/): Jordex has made an early $1.5 million pre-IPO investment in Medsite.com. With current revenues of ~$14-18 million for the present fiscal year and an estimated $50 million in revenues for next year, Medsite.com is not your standard Medical website. Medsite.com is a private company that has already received coverage by Forbes, Bloomberg, CNBC, and numerous other industry publications. It also has been previously picked by CNN as one of the three top medical Internet sites. They currently have over 300,000 regular medical professional users, and receive well over 50,000 hits a day with these numbers growing daily. Unlike most other Online Medical Sites, Medsite.com does not receive the majority of its revenue from advertising dollars. Medsite.com is firmly entrenched in business-to-business Internet sector and has a wide range of products and services. Unlike many other start up companies, Medsite.com has a relatively long and successful track record. From a recent CBS MarketWatch article (November 2 1999- It is out belief that "the business-to-business sector is one of the hottest places to be in e-health right now"….."Medsite is the leading destination -- really a physician portal -- for medical professionals. The company has a solid business model with multiple revenue streams and real revenue."https://www.siliconinvestor.com/readmsg.aspx?msgid=11786993) The products and services offered by Medsite.com include: Medsite Supplies: Currently offers an electronic catalogue of over 2000 medical instruments and replacement parts from nearly 100 suppliers. It is important to understand just how big this market is. There is over $140 billion spent world wide by hospitals and medical centers on everything from tongue depressors to multi-million dollar imaging devices! What is most exciting is that Medsite.com is a market leader for these online medical sales. (http://www.medsupplies.com/) MedBook: Offers over 90,000 medical books. TechWeb recently called them "the medical industry's Amazon.com". (http://www.techweb.com/wire/story/TWB19990331S0018) Medsite Software: Currently carries thousands of medical software titles. MedMoney: Offers a wide range of financial services for the medical community. This includes medical equipment leasing, practice management content, financial planning and a Medsite.com credit card. Medsite University: Offers accredited online Continuing Medical Education. There is currently a $6 billion health care education market and this service will make engaging, affordable education a reality to over 5 million medical professionals. Medsite Journal Tracker: A powerful service that delivers abstracts and table of contents from the choice of the world's leading medical journals directly to the clients e-mail account for a fee. Coming Soon: Med-Filer - The first comprehensive, secure, online insurance application, Medsite Filer saves the user countless hours of documentation time. It allows the user to complete an online application only once, and their smart technology will adapt it to the requirements of individual payers. Medsite Journals: Will allow electronic subscriptions to leading medical journals. Issues will be e-mailed to subscribers for a fee. To help secure their dominance in the sales arena they offer an affiliate program (http://www.medsite.com/affiliate.cfm?FirstLevel=affiliate). With this program, other online medical sites can offer Medsite.com's products and services under their own medical site name. Medsite.com takes care of all the infrastructure tasks such as processing all the orders, shipping, customer service, etc. For this referral service, the partner site receives 5% of the sale of books, software and journal tracking, and 1% of supply sales. For example, the book icon on the popular online Medical site Medscape.com is actually a direct link to Medsite.com's bookstore. (http://medscape.medbookstore.com/index/index16.cfm?CFID=13331&CFTOKEN=32374585&si=234&chan_id=1) The American Medical Association recently announced a for-profit web site (http://www.medem.com/) which is destined to become one of the most popular online medical sites. Although this site is under construction they have just announced that "Consumers / Patients will be provided the opportunity to easily access and purchase various medical and pharmaceutical products, including books and educational materials created by participating medical societies, and also made available through, various partnerships established with e-commerce vendors." As the AMA has been a partner of Medsite.com since November 3, 1998 (http://www.medsite.com/company/index.cfm?page=ama), and it currently offers MedBookStore.com on their current website, then it can be assumed that it is very likely that the AMA will be offering Medsite.com products on their new site as well. This behind the scenes "supplier" form of partnership significantly adds to the bottomline of Medsite.com. In real terms, it extends their product distribution reach far beyond what they could under their own brand name. They will have the best of both worlds as they will be offering these products on their own site, while at the same time be acting as a wholesaler to their perceived competitors / partners. The company has developed strategic partnerships and alliances with industry-leading hospitals, medical schools, associations, and health care companies from more than 60 countries. Medsite's customers include: physicians, residents, nurses, medical students, physician assistants and pharmaceutical companies. The list of strategic business partners reads like a who's who in the Medical field: America's Health Network, Medcast, Medscape, Physicians Online, WebMD, QD Online, HealthGate Data Corp, etc. Just as impressive is the list of Medical Associations that Medsite.com has partnered with: American Medical Association, American Medical Student Association, Southern Medical Association, International Federation of Medical Student Associations, European Medical Student Association, American Preventative Medicine Association. Medsite.com has also been able to attract some impressive people to their company. Most recently is the announcement that Gregory W. Scott, the former CFO of Prudential HealthCare, joined the company as Chief Financial Officer (http://www.medsite.com/company/index.cfm?page=91499). Mr. Scott was the person behind the sale of Prudential HealthCare to Aetna for approximately $1 billion on August 6, 1999. As mentioned earlier, in June 1999, Jordex announced a $1.5 million investment in Medsite.com (http://www.jordex.com/news9906.html). This investment is convertible into shares of Medsite.com at a price significantly below any IPO opening price. The exact number of shares that Jordex owns of Medsite.com will not be publicly released until Medsite.com releases their SEC S1 filing. It is expected that this will occur shortly. The current market capitalization of online Medical companies (comparable to Medsite.com) who have already gone public can best be described as staggering: Drugstore.com (DSCM) - $1.5 Billion (peaked $3 Billion) Healtheon Corporation (HLTH) - $2.5 Billion (peaked $10 Billion) By any reasonable estimate, Jordex should make several multiples of their initial investment on this deal. However, I believe that it is the quality of their first financing deal that speaks volumes about the future of Jordex. IPO DATE: In a recent article in Silicon India, Mr. Bhan (the president of Medsite.com) stated that he "is confidently looking forward to an IPO in the fourth quarter of 1999". (http://www.medsite.com/company/index.cfm?page=siliconindia). However in recent talks with the company it appears that the IPO may be delayed until January as a result of a deal they are in the process of closing. Since the first quarter is historically one of the best periods for a new IPO, I would expect Medsite.com to wait until this date before taking their company public. 5. INSIDER HOLDINGS: In Canada, insider-trading reports are put out from the TSE. However, in order to obtain insider-trading reports as soon as they are released, I subscribe to Carlson Online. According to the latest insider report, these are the insider holdings for Jordex Resources. Brian Hinchcliff: 2,274,771 shares (Co-CEO) William Staudt: 1,300,000 shares (President, Co-CEO) Note: 800,000 owned by Hamilton Group LLC (President -William Staudt) Carlo Civelli: 1,731,666 shares (Director) Note: 1,441,666 owned by Clarion Finanz AG (Beneficial Owner - Mr. Civelli) During the past year the insiders have been aggressively purchasing shares. They have purchased ~3 million shares during this period. In addition, during the past 12 months no current insiders of the company have sold shares. The insider purchases include: -A private placement of 800,000 shares to Mr. Staudt jordex.com -A private placement of 500,000 shares to Mr. Civelli jordex.com As mentioned before, this aggressive buying speaks volumes about the confidence the management of JDX has in their company's future. In addition to the insiders, groups identified as "friendly hands" have also been accumulating the stock during the past year (see details below) FRIENDLY HANDS: Along with insider purchases, there are two groups currently holding shares of JDX, which I refer to as "friendly hands". HAYWOOD SECURITIES INC (http://www.haywood.com/) In Canada, it is possible to identify which brokerage houses have bought or sold shares in a Canadian held security. I have spent considerable time going back through all of the trading records since last June 1998. As a result of my investigations, I have found that Haywood Securities has been accumulating shares of the company since last October 1998. According to these records, it shows that a group at Haywood Securities has net purchased ~3 million shares during the past year. These purchases have included several major crosses involving Haywood Securities at last years lows: 11/03/98 - 172,000 11/03/98 - 280,000 11/03/98 - 179,000 12/07/98 - 208,500 12/07/98 - 478,500 In the past 8 weeks alone (since September 1, 1999), Haywood Securities has net purchased an additional 270,000 shares. In addition, on 10/29/99 Haywood performed another cross of 70,000 shares. It can be argued that a single broker house accumulating a large position in a company might not be of great significance. However in this case, I believe that the accumulation is of great significance as the head of Haywood Securities is a Mr. John Tognetti. I have been able to determine that that Mr. Civelli and Mr. Tognett have had a long business relationship and have been involved in several large promotions together in the past. For example, a joint Haywood/Civelli promotion - Novadigm (NVDM) proved to be very successful for both groups. (http://www.haywood.com/corporatefinance/novadigm.html) I find it hard to discount as just a coincidence that Haywood Securities held a large position in NIR (TSE) before it went on its amazing 2500% run last year. I can unreservedly state that given their past track record, it gives me a great deal of confidence in the future of this company when I see Haywood Securities, along with the insiders of Jordex, continually accumulating large amounts of JDX shares. EUROPEAN HOLDINGS In talks with the company, they mentioned that several large European investors were holding ~6 million shares in European holding houses. I went hunting to see if I could find the origin of those shares. -Back in 1991, Yorkton Securities placed a total of $5.75 million US of European investors' money into 7.5% three-year convertible debentures in Jordex. -The debenture was first priced at $3.15. In 1994, it was renegotiated for .92 US with a longer maturity date. -In June 1997, this debenture was converted into 6,414,651 shares of JDX at ~$1.30 a share. -When the shares where converted in June 1997, the price of JDX was $1.20. Since that time the shares have not traded above $1.20. -During the same period that the financing was being negotiated in 1991, Mr. Civelli was involved with the company. Since he is very well known for setting up financing with Europeans it stands to reason that he was most likely the one behind this financing. So, what does this lead me to surmise? Well, I believe that we now have several very large shareholders - likely connected to Mr. Civelli - who have been holding a significant number of shares for almost 9 years. After this length of time, investors with this size of holding would understandably expect to see a very large return on their investments. I also don't see it as just a coincidence that Mr. Civelli recently joined the board and purchased a large number of shares for himself. 6. FINACIALS: SHARES OUTSTANDING: 30,374,357, fully diluted 34.4 million OPTIONS: According to the latest Sedar/TSE reports there are presently ~4 million options outstanding. The large majority of these options are out of the money with prices ranging from .49 to over $2.50. During the past decade, management has never re-priced outstanding options. There are currently no outstanding warrants on JDX. If all of the outstanding options were cashed it would inject well over $3 million into the treasury. SHORTS: According to the latest TSE short report there are currently 0 (zero) shorts declared on JDX. Information source - From the latest quarterly financial report (June 30/99) posted to Sedar on August 10/99 ASSETS: Cash - $18,940,000 Investment in Medsite.com - $1,500,000 (see details below) Loma de Niquel - $1,020,000 (see details below) Accounts Receivable and Capital Assets - $58,000 Total Liabilities - $55,000 TOTAL ASSETS = $21,517,939 Note: Cash holdings are comprised of high grade primarily US denominated bonds. Here is a total of their expenses for the past 6 months: Depreciation = $15,000 General Administration = $200,000 Investor Relations = $60,000 Professional Fees = $55,000 Project Evaluation = $200,000 This demonstrates that they controlled their expenses so that they are at a very reasonable burn rate of $87,000/month. The company is presently receiving interest on their bond holdings. This interest payment provides them with a cash flow which more than offsets the current burn rate. As a result, JDX is currently in a positive cash flow situation. Note: all above figure are in Canadian fund ($1 Can. = ~0.67 U.S.) 7. NAME CHANGE: The current name of the company, Jordex Resources Inc. implies that the company is in the resource sector. Management has stated that they plan on changing the name of the company in the near future to a name that better reflects their new business strategy. In order to change the name of a company it is necessary to get a shareholder vote. Since a mass mailing to shareholders is necessary to get this vote, Jordex likely decided to wait until after the new business strategy is announced so they can inform shareholders about their plans and mail out a ballot in the same mailing. I expect to see an announcement of a name change in the near future. 8. U.S. LISTING From the February 19, 1999 letter to shareholders (http://www.jordex.com/letter98.html) “Jordex shares currently trade on the TSE, however we have committed to take the appropriate steps that will lead to a US registration filing this year, which will be the first step in providing greater visibility for your Company.” 9. NEWSLETTERS/ADVISORS To my knowledge, there are no brokerage firms actively covering the company. However, in the near future I believe that this is very likely to change as the company starts announcing deals and more investment advisors get wind of the story. Up until this time, only Canaccord Capital (http://www.canaccord.com/) has given the company a little positive press. They made mention of it a couple of times during the last year in their Canaccord Coffee News. In the past five years, the company has been followed by several professional newsletter writers including Paul Sarnoff, Jay Taylor, Neil Maedel, Brian Fagan, and Chris Bunka. However most of these are newsletters are exclusively precious metal oriented newsletters and as such, they do not currently follow the company. The Kaiser Bottom Fisher Report, put out by John Kaiser, has continued to closely follow the company for several years now. This newsletter is a widely followed "subscription based" newsletter that is both mailed in hard copy form and published to the web 6 times a year. (http://www.canspecresearch.com/s/Home.asp) In the latest bi-monthly release put out on Oct 5, 1999, John Kaiser upgraded the company to a top priority buy and stated it is a "must have" for portfolios. In the May 1999 issue, John Kaiser stated something to the effect that management plans on doing deals that will take the stock past $10. He stated that they will do this - not just on promotion, but on substance. He also stated that he feels that the company is looking for projects "that will not fall apart if market sentiment toward the Internet sector turns sour" As the company has not yet announced their master plan, nor have they announced any other deals other than Medsite.com, it is not surprising that a significant number of brokerage houses or newsletter writers do not currently follow the company. I fully expect as soon as the company unveils their full strategic plans, and as the news begins to flow out about their respective investments, we will then start to see numerous stock brokerage houses or newsletter writers putting out positive recommendations on the company. . 10. TECHNICAL ANALYSIS As the chart of the company is constantly changing, I have created a web site that examines both the short and long-term chart technicals. This web site is updated on a daily basis. www3.mb.sympatico.ca 11. LOMA DE NIQUEL Although JDX has been completely out of the mining business for over a year it still holds an interest in one mining asset. In August 1991, JDX, through its joint venture company Cofeminas, received the exploration and mining rights to Loma de Niquel. In March 1996, the company sold a 37.5% joint venture interest in the Loma de Niquel property for gross proceeds of $22,473,429 and retained a 7.5% direct participation interest. In December 1997, JDX announced that it would refrain from further financing of the project citing increases in projected capital costs and changes in the financing parameters. This decision resulted in Jordex's interest being reduced to 1%. Loma de Niquel is a laterite nickel deposit in Venezuela. Production is estimated at 35-40 million lbs of nickel annually over 27 year. Based on numbers published in Paul Sarnoff's Gold Stocks Advisory, the 1% stake in the mine would result in a yearly cash flow of ~$1 million/year. However Jordex has stated that their stake in Loma de Niquel is up for sale. From the 1998 annual report: “Also in the fourth quarter of 1998, given the continuing uncertainty of long-term nickel markets, the Company wrote-down to $1,020,000 the recorded amount of the investment in Loma de Nickel.” When the company wrote-down Loma de Niquel, Nickel prices were at historical lows. Since the fourth quarter of 1998 Nickel prices have done a dramatic turn around and more than have doubled in price. From a recent Wall Street Journal Article "Nickel is the jewel in the metals crown," says Jim Lennon, London metals analyst and longtime nickel specialist at Macquarie Bank of Australia. He has been optimistic about the metal for more than a year and is "even more bullish about prospects in 2000." Annual average prices of nickel will be $8,000 a metric ton next year, Mr. Lennon believes (https://www.siliconinvestor.com/readmsg.aspx?msgid=11812937) Although Nickel prices have risen dramatically Jordex has not reflected this in the value given to Loma de Niquel in their most recent quarterly results likely for tax reasons. It stands to reason that Loma de Niquel should be worth several multiples of the current book price with the recent strength in Nickel. The sale of Loma de Niquel will provide Jordex with additional capital to perform deals. 12. WHY ISN'T THE STOCK HIGHER? After looking over all the information that I have presented, I believe that a prudent investor would ask themselves "why isn't the stock selling at a higher price"? I think I have identified two reasons why the company is still selling near cash breakup value. These are: A) Lack of promotion and B) Metal Based Mutual fund selling A. LACK OF PROMOTION: As mentioned above, in order to get a company's share price to high levels, it is necessary for the company to ensure that the investment community knows about, and understands, the tremendous potential of their company. I think we have all followed companies with enormous potential and great management selling at low prices and thought to ourselves "why isn't the price higher". It often comes down to one word - PROMOTION. Without the company doing an effective job of bringing the stock to the attention of millions of investors and fund managers, the company often gets overlooked and the share price suffers. During this past year, Jordex has not made a significant effort to promote their stock. Jim Graham, investor relations for the company, has said that the company does not plan on starting a full promotion campaign until the company has announced their new business strategy and the subsequent deal(s) which support this strategy. This helps explain the current share price. Once the deals are announced, the company plans on coordinating a large promotional blitz to get the story out to a wide audience. I think Mr. Civelli has already proven through his past dealings that he knows how to promote a company. B. MUTUAL FUND SELLING Up until a year ago, the company has always been considered a gold/metals company. There are numerous mutual funds that are mandated to only buy and hold gold/metals companies. When a company held by one of those mutual funds changes their business model to effectively remove themselves from the gold/metal sector (e.g. Jordex), the mutual fund will dump their holdings of that company. This selling will occur, no matter how much potential the new company might have in their new business ventures. These funds have promised investors that the fund will only contain gold companies so they are forced to dump their shares. According to SEC filings only two U.S gold/metal mutual funds held the company during the past year (http://www.10kwizard.com/) According to these records, the Scudder mutual fund, which is a gold only mutual fund, have sold their entire 275,000 share holding in the company during the past year. In addition, and according to the SEC records, as of June 30, 1999 the Midas fund quarterly report showed that they were still holding 400,000 shares of Jordex. The Midas fund is a well-known gold only mutual fund and has a policy of selling any companies not related to the gold industry. I was able to find that in July 1999 Oldum Securities (a brokerage house that had not bought or sold any shares of the company in the past two years) started dumping shares and driving the price down. Over the next 3 months this firm sold shares continuously without a single buy. July - sold 50000 August - sold 298000 Sept. - sold 50000 This adds up to a grand total of 398,000 shares. As soon as they hit this mark the selling stopped cold and we haven't seen a single sale from Oldum Securities since Sept. 15/99. I assume that this selling was Oldum winding down the Midas fund holdings. If I am correct, then the selling by these two U.S gold only mutual funds during the past year represent a total of 675,000 shares. These sales and sales from other metal-based mutual funds that are not U.S based may have artificially suppressing the price of Jordex during the past 6-9 months. The good news is that the volume in the past 9 months should have also provided these funds with more than enough opportunity to unwind their positions and remove any overhang from the stock. The recent price rise in Jordex suggests that the selling pressure has dried up. 13.FINAL THOUGHTS I have gleaned this information from long of hours of research. Due to this research, and through conversations with other investors, I truly believe that this company is extremely well positioned for substantial growth. They have taken their time, protected their cash assets, and have brought in new management with both a depth of experience and connections. Their stated area of focus is one that is at the heart of the revolution that is now taking place. In recent talks with management I have got the impression that they are very close to announcing their investment strategy and plans going forward. I believe in what they are doing. I like what I see, and I want to share my information with others. This way, we will all stand to profit in the future. Thank you for reading this! Keith Massey

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