Commodity Focus

Gold is currently trading at over US $1600.00 and is in a bull market. Gold has out performed the equity markets in the last year and is regarded as a safe haven for investment, the continuing concerns regarding the financial situation and the economy will likely cause gold to remain in a bull market in the months ahead. Silver is also in a bull market, trading at over US $30.00 and has out performed gold. The current gold to silver ratio has narrowed to 52:1 a big improvement over the recent gold to silver ratios of 65:1. Gold now appears to have a floor price above $1500USD and silver above $30USD. These precious metal prices will enhance the value of Stroud's projects.

Geographical Focus

Mexico is the second largest silver producer in the world behind Peru.

There have been a number of recent silver and gold deposit discoveries in Mexico, many of which have or will be brought to commercial production. Considerable wealth has been created by the commercialization of these deposits (such as Francisco Gold).

Mexico is politically stable and is a most favourable country for mining investment. It has a long mining history, a good Mining Code, favourable foreign investment laws and is a member of NAFTA. Mexico has a good working climate allowing for year-round exploration. Travel logistics, and the availability of dedicated professionals and labour, is excellent.

Two mineral rich belts occur on the east and west sides of the Sierra Madre Mountains in Mexico. Stroud's Santo Domingo project is in the Western Silver-Gold Belt.

Mineralization at Santo Domingo is similar in geometry, geological setting, and size to that of two major mining areas of the Eastern Silver-Zinc-Lead Belt, namely Fresnillo and Zacatecas, each with historic silver production in excess of 400 million ounces. In addition, there are two silver mining districts near Santo Domingo in the Western Belt with significant past production - San Martin de Bolanos and Bolanos districts are less than 100 km northwest of Santo Domingo, each with past production of up to 100 million ounces.

Stroud's Hislop and Leckie gold exploration projects are located in Ontario. Ontario is one of the better jurisdictions for mining in Canada and the projects have excellent year-round access.

The Hislop gold project is situated along the Destor Porcupine fault, a geological structure that is a focal point for gold mineralization in the Timmins area. To date, more than 71 million ounces of gold have been produced from mines around the Timmins area. St.Andrews' Gold Fields Hislop project (located adjacent to Stroud's project) is currently in production.

The Leckie Project is located approximately three km north of the town of Temagami in north-eastern Ontario and straddles Highway 11. Two principal gold zones are present on the property. The No. 1 zone is a steeply dipping fracture system that has been intensely altered by carbonates and quartz- rich fluids. Minor amounts of zinc, silver and copper are also present. Grades average approximately 0.20 oz/t gold over 6 feet in this zone.

The No. 2 zone is much less explored and is located west of the No. 1 zone. This zone joins with the No. 1 zone at depth and is also intensely altered. The No. 1 zone has been traced down to a depth of 750 feet. One of the better drill holes encountered a width of 17.8 feet averaging 0.217 oz/t gold. Prospecting has uncovered seven additional gold showings.