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Stroud’s focus is on silver and gold, two metals which have seen dramatic price increases, gold recently rose to US$747, a 27 year high and is expected to reach US$800 by year end. Lower dollar prices, record high oil prices and concern about the US economy will continue to support high gold prices. Gold is now rising against all currencies, which is an excellent indication that the gold bull market continues to be strong. In essence the paper currencies are loosing value and the loss of purchasing power is reflected in the higher gold price.

Silver prices are also strong. With current prices over US$13.40 an ounce, silver underperformed gold recently but appears poised to move higher. The fundamentals for silver continue to be bullish. Approximately 600 million ounces of silver are mined each year. About 870 million ounces of silver are consumed each year by industry, jewelry and photography. Recycling and investor selling make up the "shortfall" between production and consumption.

A total of 25 diamond drill holes have been drilled on the Hislop property, (approximately 9,000 metres) in the current drilling program. Results from the current drilling program will be compiled and evaluated. Depending on the results of this study, additional drilling will be required or Stroud may consider going underground on the project.

Drilling has recommenced on the Santo Domingo project. A minimum of 4,000 metres is planned for the drilling program. Drilling will concentrate on delineating the ore grade mineralized silver, gold, lead and zinc zones encountered in the previous drill holes and in adits.

Natural gas and natural gas condensate prices have been volatile lately. There is more natural gas in storage than ever before, which has driven prices down. However, longer term prices have stayed high due to long term supply demand fundamentals, and the fact that low short term prices reduce drilling. Natural gas prices are expected to range in the $7 to $8 per cubic meter for the near future. Currently Stroud has a 3.75% interest in six producing wells, which produce in excess of $200,000 a year.

In conclusion there are a number of reasons to be optimistic about Stroud:

• Rising metal prices
• An ongoing drilling program at the Santo Domingo property
• An additional two drill ready projects
• Increased revenue from natural gas and natural gas condensate
• A debt free company
  
• Ability to access the Capital Markets
  
• Experienced management team and Board of Directors
  
  

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