October 31, 1996

Samex Mining (SXG - $1.96)

An understandable news release on October 25 updated the company's Walter Project:

l increase the vein resource potential from 1.2 to 6.0 million tons of 0.36 oz/ton gold equivalent

I can only add that drilling has resumed at Santa Isabel and we should have more results before the end of the year. The Current Status is Hold but aggressive traders should buy now.

March 20th, 1996

Samex Mining - Some profit taking is occurring and I'm thankful for that. It allows my subscribers to buy the shares at a better price prior to the first drilling results now expected about March 26th. Please make sure you have lots of Samex because I have every confidence the share price will be much higher very soon and Samex will be the talked about and written about by the investment community in a big way. Buy it immediately -- before the price starts taking off to much higher levels.

Samex Mining Corp.

Exploration and Development - PROFIT LETTER - FEBRUARY 28th

Symbol: SXG
Stock Market: VSE

Last 12 Months: $1.45 - $3.10
Current Price: $3.05

Shares Outstanding: 16.4 million
Fully Diluted: 18.0 million

Budding Opportunity
Even though Samex Mining Corp. is at a new high, I'm not going to let this one get by us. I've only been introduced to the company since the share price hit $2.70 so we haven't missed much of the upside potential and I believe a double or better in the share price could occur within a few months and it is on the way now.

Samex is an exceptional company with excellent human resources and outstanding properties in Bolivia. I'll introduce you to the properties later as I want to emphasize the people in charge of Samex.

The management is determined to build a major mining company by exploring for, developing and producing mineral wealth. They have the expertise and experience to succeed.

The president, Patricio Kyllmann, hails from a well-known, highly respected and successful family in Bolivia. The family controls some of Bolivia's largest and most important companies. Mr. Kyllmann knows the mining business and his reputation and important contacts will help Samex immensely. His geological, engineering and legal staff have been involved with mining and finance for more than 20 years and have a close relationship with a large commercial bank in Bolivia.

Also based in Bolivia is Robert E. Kell, vice-president and responsible for exploration. Mr. Kell has worked with major mining companies and on many projects in North and South America and has the knowledge and experience to oversee the projects.

The chairman is Richard Hughes, a prominent individual in North American mining through the Hughes Lang Group. Of course, Mr. Hughes is also a director of Samex.

The four remaining directors are Canadians who bring additional valuable exploration and corporate experience to the board of Samex.

The management has a vested interest in the growth and prosperity of Samex through its broad equity ownership.

Setting The Stage
Samex personnel began actively acquiring and developing Bolivian mineral properties in 1993 through a private company, prior to the onset of intensive exploration activity in that country. The objective was to acquire properties of 'world-class' potential and management applied its exploration expertise and technology to discretely evaluate over 100 mineral prospects in Bolivia before selecting eight prime properties at various stages of exploration and development.

The exploration team actually cherry-picked a varied portfolio of outstanding gold, copper, silver and base metal projects with bulk-tonnage potential. Samex issued 11.9 million shares issued for acquisition of the properties by taking over the private company. About $2 million has been raised and expended on evaluation, acquisition and exploration prior to the takeover.

Two private placements totalling $2,949,000 (1.5 million units $1.00 and then 828,000 units at $1.75) have been completed and I expect additional financing in the $8.00 to $10.00 range to be arranged during the first half of 1996.

Properties With Potential
Bolivia has a long history of mining since the Spanish conquest. Tin, in particular, was a valuable resource until recently but gold has been mined using primitive methods by following the many rich veins discovered at the surface in the mineral-rich mountains. Bolivia has a stable, democratic form of government that understands mining and is adjusting its mining laws, following the lead of Chile, to encourage foreign investment. This offers a budding opportunity for shareholders of Samex and the other companies that are now flocking to the area.

Samex's properties are in the southwest corner of Bolivia, not far from the huge copper discoveries next door in neighbouring Chile and to the south in Argentina. But the border didn't stop the forces of nature over the last 20 million years and similar geological structures extend through the properties acquired by Samex.

The company is drilling right now and some samples are already in the lab for assay. We should have the results during March. Samex indicated to me that they'd like to have at least three drills turning on its properties by the end of April. That's why the share price has been climbing higher and why it will continue to surge ahead.

Prime Properties
Samex has eight properties but I'm only going to touch on the three which are the furthest advanced at this time.

The Santa Isabel project is a copper-gold porphyry consisting of 4,354 hectares in three concessions. Attention was drawn to the area because of widespread alluvial gold (in gravel of former river beds), numerous small mines and reports of secondary copper sulfides and oxides. There are many kilometers of adits, shafts, drifts and other workings that reveal visible copper as well as evidence of small scale mining.

Systematic exploration involving geology, geochemistry and geophysics has identified a high-priority exploration target in an untested, well-mineralized porphyry-volcanic complex. The property has potential to host large tonnages of copper, zinc, silver and gold comparable to the huge copper porphyry deposits in Chile and Argentina. Based on surface dimensions and IP-indicated depth extent, three target zones have the potential to cumulatively host in excess of one billion metric tons of 0.6% to 1.2% copper with significant gold credit. A drill program on Santa Isabel will be started before the end of March.

The targets are well-situated for open-pit mine development with adequate locations for infrastructure. The property has good road and rail access. Water is available locally and electric power is only 80 kilometers away.

A second excellent property is the Walter project which hosts gold-bearing 'Bolivian style' polymetallic veins and intrusions in the Walter South, Walter Central and Walter North target areas.

Exploration on the Walter South Zone has resulted in the discovery of nine gold-bearing polymetallic veins and related intrusions. Gold and silver values up to 145.0 grams per ton gold (4.66 ounces per ton) and 704 grams per ton silver (22.6 ounces per ton) are present with grades in the veins averaging from 3.0 to 10.0 gpt gold (0.1 to 0.32 ounces per ton) and 206 gpt silver (6.62 ounces per ton) as well as 6% zinc and significant recoverable values for other metals.

Crosscuts and drifts along less than 200 meters of the Walter South Zone and to depths averaging less than 100 meters have already defined proven/probable ore reserves of 323,000 tonnes with an after cost/tax value of US$7.3 million. Bolivian-style polymetallic veins in this geological belt are renown for their tonnage potential since they typically extend for several kilometers and are mineralized to depths reaching more than 750 meters.

Should the mineralized veins and intrusions evaluated to date extend to a depth of even 300 meters, the resource situated in the Walter South Zone could increase to over 7 million tonnes. Also, there is potential for an even greater expansion of reserves since the broad zone of mineralized veins at Walter South can be traced for over 2 kilometers north to the Walter Central Zone.

At Walter Central, more than a dozen veins with similar mineralogy and grade have been traced over several hundred meters with an associated porphyry intrusion. Gold-silver bearing veins and related intrusive have also been discovered in the Walter North Zone which is more than a kilometer to the northeast.

Since the Walter Central and Walter North Zones have undergone only preliminary exploration further work is required to determine if Walter North is an extension of the Walter South/Walter Central Zones or is a related deposit. Three additional targets are also situated on the Walter property.

The third property is the Yaretani project, a gold-antimony bearing area. It covers 3,925 hectares in a geologic belt of folds and thrusts in southwestern Bolivia.

Exploration in this same belt by Orvana-EMUSA has defined the Pederson deposit with a current drill-indicated/inferred resource of 40 million tonnes grading 1.5 to 1.8 grams per tonne gold. Orvana estimates this deposit has the potential of increased tonnage to about 80 million tonnes and up to 4 million ounces of gold.

Like the Pederson deposit, the gold and antimony at Yaretani is hosted in a mineralized/altered zone of thrust/sheared black shale and siltite situated on the east limb of an anticline and folded around the axial trace of a syncline.

Old workings on the property consist of shallow shafts, tunnels and pits scattered along a 4 kilometer surface trace of the zones which remain open ended. At surface the zone of mineralized black shale varies from 30 to 100 meters in width. However, significant chargeability defined by an I.P. geophysics survey indicates the zone increasing to widths of 100 to greater than 200 meters at a depth of about 150 meters where the zone would fold and thicken around the hinge of the syncline. The gold and antimony is hosted in black shale and siltite and in veins and stockwork veining within the mineralized/altered zone.

Vein samples grade from 0.16 to greater than 10.0 grams per tonne gold and up to 15.8% antimony. Of greater bulk tonnage importance, gold is also hosted in disseminated pyrite in the sulphide mineralized shale and siltite similar to the refractory-style ore at Carlin, Nevada. Sampling the pyritiferous shale-siltite has yielded grades averaging 1.7 grams per tonne gold and 0.4% antimony with values up to 3.25 grams per tonne gold.

The property is currently being drilled and two holes have already been completed. Assay results are expected by the end of March. If the grades prove consistent over a four kilometer portion of the mineralized zone, the Yaretani property has the potential to host an open-pittable deposit that could exceed 75 million tonnes and contain several million ounces of gold.

Gentle topography, adequate water and electric power lines within 11 kilometers makes this property well suited for the development of a large, open-pit mining operation.

Recommendation
Samex is quality. Quality in management and quality in its properties. I rate the shares a strong buy despite the recent highs the share price has been posting. My target is the $7.00 to $9.00 range and I expect the share price to attain that level well within 90 days _ before the last week of May.

Don't wait around for this one to back off. I don't think it will until higher levels _ say around $5.00. But new buyers will keep coming in to purchase a piece of the fast action.

Technical Analysis
The shares have only been trading since November 5, 1995 so there isn't enough information to determine support and resistance levels. There was no problem breaking through the psychological resistance at $2.00 or $3.00 so I don't expect $4.00 to pose any problem.

The first breather might be just under $5.00 and that could be short-lived. As a bit of insurance I suggest you place stop-loss about 15% below the previous closing prices and keep moving them up as the share price climbs just in case of unexpected events.