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To: ms.smartest.person who wrote (1718)	11/9/2006 12:52:43 PM
From: ms.smartest.person	Respond to of 3198

Pennaluna Prospector – Coeur d’Alene, Idaho – November 6, 2006 Special Edition -- Canadian Trust Protest 06 November, 2006 On Halloween, from out of the blue and with no warning, Canadian Finance Minister Jim Flaherty blind-sided income trust investors with one big sucker punch of a new tax scheme. He abruptly announced a brand new plan to impose large new taxes on Canadian income and royalty trusts – despite his campaign promise not to, and despite the fact many folks relied on that promise when they decided to buy these trusts. The betrayal was of course piously wrapped in the flag. But the motivation was familiar: the government wants more of everybody’s money. Details of the new -- har, har -- “Tax Fairness Plan” are here: fin.gc.ca Price Collapse Reaction was swift. Income trust prices fell like a rock the next day. Some lost 15% or more. Billions of dollars of wealth were vaporized overnight. Investors were shaken. Many of our customers trade Canadian stocks. Many own these trusts as part of their retirement nest egg. Like other income trust owners, these people expected market risk. And they expected currency risk. But they didn’t expect to get rolled by the Canadian government. After all, Canada isn’t some two-bit banana republic, and the Conservative party is supposed to be, gee, conservative. Well, surprise. Fighting Back But the fat lady hasn’t sung yet. The proposed new tax law is not a done deal at this point. There remains the possibility of significant modification, if not total reversal. The income trust industry in Canada has grown into a strong force. You can expect it to put up a real fight. And trust investors are pitching in to help. A protest campaign is underway. Investors are registering their complaints with letters, emails and phone calls. Contact Information Roger Conrad of www.CanadianEdge.com publishes a newsletter on Canadian trusts. He has posted an information page on his website that tells investors how they can express their views to Mr. Flaherty and staff about the new tax scheme: office address, email addresses, phone numbers, sample letter, some other tips. He has opened this page to the public. Investors angry about getting mugged by the Flaherty Gang can find the information here: canadianedge.com “ Since a politician never believes what he says, he is quite surprised to be taken at his word. ” Charles De Gaulle Editor: Tom Wobker Disclosure: Pennaluna & Company is a NASD broker-dealer and market maker. As such, it frequently buys or sells stocks for its own account, or in order to make a market. Consequently, Pennaluna may at any time buy or sell or make a market in any stock mentioned herein, and associated persons may also buy, sell or hold such stock at any time. The firm and/or associated persons may also engage in private placements or other investment banking activities with any company mentioned. Some securities mentioned may be small-cap stocks and subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information; some may be foreign securities and subject in addition to currency, political and other risks. Comments and opinions are solely those of the writer. This publication is intended solely to provide readers with general information and is not a solicitation for the purchase or sale of any security. It is not intended to provide personal investment advice and does not take into account the specific investment objectives, financial situation and particular needs of any specific person who may read it. Mention of a company or stock does not in any manner constitute a recommendation, unless specifically so stated, nor is it a solicitation of any sort. Information is believed accurate but accuracy is not guaranteed. pennaluna.com

To: ms.smartest.person who wrote (1718)	11/9/2006 8:04:01 PM
From: ms.smartest.person	Read Replies (2) \| Respond to of 3198

&#8362 David Pescod's Late Edition November 9, 2006 CONNACHER OIL & GAS (T-CLL) $4.10 +0.01 It’s been a while since we got an update from a very busy Dick Gusella on Connacher Oil and Gas, but we finally caught up with him yesterday One look at his calendar shows how active this company is going to be over the next while. Yesterday they released their third quarter results, but for much of November, their main emphasis will be on preparing their sites for drilling. He suggests take a look at Connacher’s website (www.connacheroil.com) to see how that work is progressing. For the month of December, they should be starting to drill their SAGD well pairs and then between January and March, they start drilling 70 core holes and complete their 3D over the main lease block. Also then, they will be drilling up to 25 conventional wells at Marten Creek and other areas of Northern Alberta, primarily looking for gas. Also in the first quarter of next year, they will hopefully be completing their application for Pod 2. On March 7th, they will be announcing their full year results for 2006 and the important part of that report should be their year-end NI 51-101 reserve report. On May 7th, they announce the first quarter results for 2007 and also have their annual general meeting and update reserve reports on the oilsands and the core hole program and also see how their natural gas drilling has fared. As far as Connacher’s phenomenally successful sidekick Petrolifera Petroleum, Gusella suggests that over the next 14 months, they hope to drill up to 70 wells in Argentina. Obviously, that little junior is going to be busy as well. Meanwhile, for those who like the arch-type, high risk/high reward play, Petrolifera is expected to drill some potentially huge impact gas wells in Peru and that’s scheduled for late 2007 or very early 2008. Connacher Oil & Gas www.connacheroil.com AQUILA RESOURCES (V-AQA) $1.47 +0.38 We’ll call them the “Rodney Dangerfield” of the zinc market. No one seems to care about little Aquila Resources —no analysts follow it officially and despite zinc going through the roof and hitting ever new record highs, up until recently, Aquila has gotten “no respect” at all. You would think they were operating in a scary place like Venezuela or the Democratic Republic of the Congo. Not so. Based in Toronto, working in Michigan, this looks almost safe. Now the drilling results are starting to come in big time as today they announce more results such as 19 meters of 11% zinc. And how about the gold? Six meters of 32 grams per ton gold plus some silver kickers. I suspect this isn’t going to be the Rodney Dangerfield of zinc much longer and I suspect it’s just going to be just a matter of time before analysts start covering it. We would like to thank Andrew Kaip and Fiona Childe for bringing it to our attention, and today Robin Dunbar, the chief operating officer of the company tells us, that they still have another 38 to 40 holes being assayed for release over the coming weeks and he also suggests that they hope to have new resource/reserve numbers available by Christmas. VICEROY EXPLORATION (T-VYE) $13.06 +0.84 It’s a cute little game and it won’t change your lifestyle, but it’s an interesting one anyway and if you punt it right, profitable! It’s the takeover game. The theory goes like this...it’s getting tougher and tougher to find the big gold projects that could make a difference to a company, particularly for a big company. So what do you do to supposedly add shareholder value? Or make the market care about what you’re up to? The takeover game is coming to life in a big way and we’ve seen some major deals, such as Barrick taking over Placer Dome, Kinross taking over Bema Gold, Barrick trying to take over Nova Gold, Yamana taking over Viceroy and Goldcorp taking over Glamis. You get the drift. So who’s next? We go to one analyst who won’t let us use his name, but he comes up with four and two of them seem to be used by a lot of folks following the gold market these days. Aurelian Resources has come up with a huge discovery in Ecuador and a lot of folks following this suggests that there is going to be somebody big down the road who is going to want it. The one thing people are waiting for though, is metallurgical results. When you mention the takeover game, Bear Creek Mining seems to be on most people’s lists and if anything, a lot of people thought it would have happened by now. Silver Wheaton already owns 19%. Two other names that seem to be on a lot of lists are Miramar and AfriOre. Viceroy Exploration www.viceroyexploration.com If you would like to receive the Late Edition, just e-mail Debbie at debbie_lewis@canaccord.com www.aquilaresources.com Comment out to clients with Aquila Resources.