Aggressive Strategy July 20, 2007:

Companies involved in the exploration and development of gold mines received a bit of a set back today with the announcement by Southwester Resources Corp. that the previously released assay data is not valid.

Southwestern is exploring for gold in China and had announced earlier in the year excellent assay results from their ongoing exploration program. The second set of data was to be released at the end of June, but was delayed and at that time the founder and chairman of the company resigned. The abrupt resignation motivated other board members to go over to the site and physically inspect the data collected. This on site investigation reveled that the assay data had not been correctly related to the company. The manger of the operation, John Zhang, has been fired as a result and the company will now have to re-drill the area to ascertain the correct values.

This recent news from Southwestern has sparked a reawakening of all things Brex, and investors are now running for the exits just in case that situation is going to be repeated. All companies working on properties in China will be under a cloud until the Southwestern situation is clear. This could take a considerable amount of time and investors will be well served to stay away from any companies that are heavily involved in China or any other undeveloped Asian country.

Investors are going to be much more hesitant to invest in offshore exploration going forward. This will be very beneficial for those companies focused on North American exploration.