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Gold/Mining/Energy : United Keno Hill, UKH, Toronto**** Opportunity Knocks! -- Ignore unavailable to you. Want to Upgrade?

To: Donald McRobb who wrote (703)	1/12/1998 4:24:00 PM
From: Donald McRobb	Respond to of 1348

Subject: Stockwatch: NDU Resources Ltd - Street Wire Date: Mon, 12 Jan 1998 12:59:37 -0800 From: newsout@canada-stockwatch.com To: dmcrobb@osg.net The quirky performer NDU Resources Ltd NDU Shares issued 10,045,182 Jan 9 close $0.70 Mon 12 Jan 98 Street Wire by Stockwatch Business Reporter The junior resource market may be in the throes of a nasty bear market, but there is still money to be made in the juniors favoured by newsletters if first you pick your newsletter well, and then buy only its right few favourites. One such example is NDU Resources, which was picked late last year by letter writer John Kaiser and which at the close of trade on Friday, January 9 was up a quirky 94 percent from the time Mr Kaiser recommended it on December 1: $0.70 versus $0.36. The tip came in his annual list of 100 bottom-fish carried in the September-December 1997 issue of the Kaiser Bottom-Fishing Report. At the time, Mr Kaiser said the stock would do well if a merger plan goes ahead with financially troubled United Keno Mines. As fortune would have it, the merger plan was announced on December 19, in which shareholders would acquire 1.35 shares of United Keno (UKH) for every one share of NDU. Alan Archer, CFO of NDU Resources, agrees the stock's recent performance can be attributed to the merger agreement. The deal, which has not yet received shareholder or regulatory approval, will permit the acceleration of the development of NDU's Marg VMS deposit in the Yukon. The melding of assets comes from the marriage of NDU's Marg deposit and $2 million working capital with United Keno's mill at its nearby Elsa property. Elsa is a defunct silver property that United Keno is attempting to rehabilitate and return into production. Mr Kaiser also likes the fact that NDU owns outright the Marg deposit. Mr Archer -- also promoter Archer -- says there may be more upside to the stock given the terms of the merger. NDU is still trading at a discount to the value implied by the merger arrangement. United Keno closed on January 9 at $0.70 -- exactly on par with NDU. By the terms of the merger agreement, however, NDU should trade at 1.35 times that of United Keno. "It's not doing that and it puzzles us why it doesn't do that," he says. "The only thing I can think of is the investors aren't paying any attention to it or the brokers aren't paying attention, or they believe there's enough risk involved that they're not going to give it full value." Mr Archer adds that a further bullish factor is that United Keno's Elsa mine is fully permitted. "That's the hardest thing to do these days," he contents. As for stock picker Kaiser, his 1998 portfolio has the benefit of making NDU and his other 99 recommendations near the end of a months-long slide in the junior resource market, which was sparked by the Bre-X scandal and the plunge in gold prices. Many of today's penny stocks were trading in the multiple-dollar range less than a year ago, and that fact is not lost on tipsters that focus on the lower end of the stock game. The year 1997 was also not kind to Mr Kaiser. His picks of December 23, 1996 were down substantially by the end of 1997. Once his sells had been made and the holds transferred over to his 1998 portfolio, his 1997 portfolio was down by around half (as of January 9.) This year, the California sun is once again shining on the Moraga-based writer, who has managed to do much better than the VSE composite index. His 1998 portfolio, which started on December 1, 1997, had gained 6.91 percent by the close of trading on January 9 after a little more than five weeks, including his No.1 dog, Moss Resources, which was down 75 percent as of last Friday. By contrast the VSE index, which stood at 636.99 on December 1, was down 45.8 points or 7.1 percent, to 591.19 on January 9. So, today how is quirky NDU? By midday it had lost $0.09, leaving it at $0.61. All it now needs is for a seller to happen along and pop the $0.50 bid with a board lot, and the stock would be down $0.18. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com

To: Donald McRobb who wrote (703)	1/12/1998 4:27:00 PM
From: Donald McRobb	Read Replies (1) \| Respond to of 1348

01/12/98 - 4 Trades for UKH Ex Time Price Change Volume Buyer Seller Marks T Jan 12 15:32 0.66 -0.04 500 009 Nesbitt 080 First Marathon K T Jan 12 15:32 0.66 -0.04 500 033 Canaccord 080 First Marathon K T Jan 12 09:37 0.75 0.05 5000 022 Thomson Kernagha 022 Thomson Kernagha K T Jan 12 09:30 0.75 0.05 5000 039 Midland 038 Golden Capital KL 01/12/98 - 4 Trades for NDU Ex Time Price Change Volume Buyer Seller Marks T Jan 12 14:13 0.61 -0.09 500 009 Nesbitt 080 First Marathon K T Jan 12 14:13 0.61 -0.09 7000 033 Canaccord 080 First Marathon K T Jan 12 09:30 0.61 -0.09 2500 009 Nesbitt 007 Green Line K T Jan 12 09:30 0.61 -0.09 2500 033 Canaccord 007 Green Line KL