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New, Terrific Non-Scientist Friendly Nanotech Interviews

2009-05-09T18:03:00.000-07:00

Dear Nanotechnology.com Member,

We just posted EIGHT, NEW, TERRIFIC, non-scientist-friendly Interviews with some of the preeminent research scientists in the world, including:

Stan Williams of the Quantum Systems Research Lab at Hewlett Packard

Robert Celotta of the National Institute of Standards & Technology

Michael Fuhrer of the Maryland Nanocenter

Teri Odom of Northwestern University

Mike Sailor of UC – San Diego

Enjoy them now at http://www.nanotechnology.com/interviews/ and remember you’ll have to log-in.

If you missed our Managing Director’s 2009 comments on Nanotechnology investing, click here to read them and from there you can follow through to other interesting past blogs: http://www.nanotechnology.com/blogs/blognano/2009/01/2009-nanotech-advanced-technology.html

Of course there is still no better book on the subject than Nanotech Fortunes, and if you haven’t read it you can get it here at a great, special low price: http://www.nanotechnology.com/marketplace/index.php?a=store

Brookstein interviewed by MetalsNews.com

2009-03-08T08:14:00.000-07:00

To read interview click www.MetalsNews.com or go to http://metalsnews.com/featured.aspx?ArticleID=56249

or see below:

Dr. Allen Alper Interviews Darrell Brookstein of The Nanotech Company, LLC

Dr. Allen Alper

Interviewer:	We're talking to Darrell Brookstein with The Nanotech Company, LLC. So, why don’t you tell me a little bit about your background and your company and how you're proceeding? Also, I know our readers would be interested in what you think of nanotechnology and the mining industry. Where it is today and where it's going?
Darrell Brookstein:	Yes. My background actually began in the natural resource sector. Out of college I started focusing on mining stocks, and from 1976 to 2000 I was involved in natural resource venture capital. I wrote a newsletter your readers may remember called The Prospector for 11 years, which was probably the top newsletter in mining shares in the '80s, and I had a brokerage firm, that was the leading U.S. brokerage firm in Canadian mining shares for the better part of that decade as well. I edited a book called, Small Fortunes in Penny Gold Stocks with Doug Casey, and we produced that in the early '80s. Then I wrote another book called How to Make a Fortune Trading Penny Mining Shares. So, that's really my background, and I was involved in the financing of many of what became major mining companies in the '80s and '90s and ended my natural resource focus for the time being in the late '90s when my group helped put together Ultra Petroleum, which eventually went public and trades on the American Stock Exchange. Also we developed the financial and corporate structure of a mid-size natural gas company called Penneco Energy, which was taken over by Marathon. In the late 2000s, early 2001, I started to focus on something I'd been looking at since the late '80s, which was the cutting edge of science and technology, nanotechnology, MEMS, microfluidics and micro-electronics. And I said, "Boy, as soon as I can find somebody who actually knows something about these things and can tell me if I'm going in the right direction this just seems like an exciting area." I ended up meeting Erkki Ruoslahti, who is considered probably the leading bio-nanoscientist, and we shared some common interests and developed a business in 2001 focused on the financial and investment side of nanotechnology and other advanced technologies. I acquired the key website, Nanotechnology.com, and wrote the first and only book that's ever been written on successful investing at the cutting edge of technology called Nanotech Fortunes, which is available on Amazon and our website. I started producing a variety of different newsletters related to both the science and technology and also investing in the cutting edge of technology. There's a lot to talk about from there, but that's the background.
Interviewer:	Now, what would you say the current state of nanotechnology is? Where do you think it's going, and also, where would you advise people to consider to investing in or exploring in nanotechnology?
Darrell Brookstein:	Well, what many people don’t know or realize is nanotechnology is already influencing major companies. More than 150 of the Fortune 500 have major internal nanotechnology initiatives. I mean, typically hundreds of millions of dollars annually by the individual companies. For example, 3M reported last year that more than a billion dollars in their sales came from nanotech products. Obviously, General Electric, DuPont, Chevron, Intel, IBM are leading folks in nanotechnology. IBM's the leading international intellectual property holder in nanotechnology. Intel, for example, has been at the nanoscale now for well over three years, and they are now at 45 nanometers and below where they're doing engineering, clever engineering (by the way, the width of a human hair is 80,000 nanometers). So we could definitely say they’re engineering at the nanoscale, and I would argue that that's nanotechnology as well. These companies are moving forward very quickly. Then you have a small group of about 80 to 130, depending on how you define it, publicly traded nanotech stocks, and of them, we think about 25 of them are actually interesting. We’ve really never recommended any of them for the long-term. We've traded them successfully, quite successfully, over the last three years, but we haven't recommended any of them for the long-term. Right now we're mostly looking at long-short strategies where you make a long $10,000.00 worth of one stock and short $10,000.00 of another. In the nanotech field it would be like buying $10,000 worth of Ford and selling $10,000.00 worth of General Motors. You pick things in similar areas and you go long-short. We think that's the way to make money with some consistency in these crazy, currently down-trending markets. But the “small tech”, nanotech and cutting-edge technology deals are still (with few exceptions – and I'll name one or two of the exceptions) a few years away from having consistent revenues, much less earnings. Some exceptions would be Illumina (ILMN), which is what we call “small technology”. It's not quite the nano-scale, but it's deeply microscale. They're competitive in “lab-on-a-chip” with Affymetrix (AFFX), and they're doing a fantastic job. There are two to three other companies that are making money and have earnings beyond revenues. Another one would be Abraxis (ABII), a true nanotech-based, bio-pharma company or biotech company which delivers cancer-killing toxins in a nanoparticle of albumin, which is a human milk protein and is having great success in breast cancer. We think it will be applied to other cancers as well. Similar technologies to Abraxis's technology that are not owned by Abraxis are also going to have huge success in drug delivery. On the broader question of where nanotech is going, when you hear “greentech”, “clean tech”, solar, alternative energy, all of these things are being developed, enhanced and moved forward by nanotechnology. They're really another way of saying “nanotechnology” because the commercialization of those technologies, products and industries is not moving anywhere without it.
Interviewer:	That's very interesting. I'm glad I had the opportunity to talk with you. What is your focus at The Nanotech Company?
Darrell Brookstein:	We advise both advanced technology companies and investors on how to proceed in this direction. We have the scientific and technical background as well as the public market and private market, venture capital and private equity background to help both sides of that equation (the companies themselves and the investors in those companies).
Interviewer:	I enjoyed talking to you. You’re very knowledgeable in both nanotech and the mining sector. I appreciate it.
Darrell Brookstein:	Glad to be here. Thank you.
Interviewer:	For more information go to www.nanotechnology.com/blogs/blognano/ or http://www.Nanotechnology.com

2009 Nanotech & Advanced Technology Investment Insights

2009-01-23T10:07:00.000-08:00

January 12, 2009

Dear Nanotech Insights Subscriber,

I have been looking for a way to be of service to our most loyal readers. Especially in this extremely difficult economy, we need trusted, experienced and knowledgeable advisors.

We are developing a way that I may be able to provide a unique service for a few of you: More on that later.

Let’s take a look back at 2008 and a look forward at 2009/2010 and see what we got right and what we missed, and how we should proceed in the coming years.

What we missed:

In March 2008, I suggested for the first time since 2002 that investors start investing 1/24 of their funds for advanced tech stocks on a dollar-cost-average basis, every month for the next 24 months. I fear I was a year or more early.
In May 2008, I proposed that the stock market and small-tech bottom would be in place before the end of 2009. While I now believe such a bottom may technically be put in place this year, I don’t see a significant advance beginning before 2011 at the earliest now.

I apologize if this cost you money. While negative on the economy, I now believe even I was too early on the markets and March-May 2008 was part of a different world that no longer exists. There were no bailouts. There were no multi-trillion dollar stimulus programs (yes, by the end of 2010 it will not be $775B it will be more like $2.5T). I just thought things were horrible and getting worse; I didn’t know the roof was about to cave in. This was a time when TARP was merely a flexible, waterproof covering.

What we got right:

We warned to sell all small-tech & advanced tech stocks in October 2006, and that turned out to be good advice, as the typical stock in this group was down more than 25% to May 2008.
We have been warning continuously since 2003 that the venture capital model is broken, and finally this month Forbes, in a major expose, noted that the top firms in VC (to say nothing of the average) have not returned profits to their limited partners in eight years while collecting ridiculous fees.
Despite the warnings, we managed to guide our subscribers to significant profits in trading nanotech and small-tech stocks from early 2006 through 2008, far exceeding the notable indices, which posted negative returns.
We warned of a recession and collapse in real estate in 2006 and in November 2007 warned that this would be the consensus view before September 2008.

Where we are today:

It pains me say this, but while we have spoken about passing the early 1980’s double recession and the 1973/74 recession a while back, we have now made enough of a mess to say we have passed the Panic of 1907 and are fast approaching the Panic of 1893. While I am not a scholar in the field, the Panic of 1893 is considered this country’s most damaging depression with the exception of the Great Depression. This depression is starting to look in many ways like and echo the 1893 -1898 depression. It is unlikely that we will find a “bottom” for the economy before mid 2010 and if we keep putting the day of reckoning into the future like Japan did in 1990 (to today, continuing), we may see 11-16% unemployment and a bottom in 2013 or later.

My biggest question mark is how long this deflationary period will last. My work cannot see whether it ends in 3 months or lingers for 3 years. Certainly, whenever it ends years of high inflation (hopefully not hyperinflation) will follow. The human costs, market costs and financing predicaments will be immense. Please don’t listen to those who think this is all going to pass by June to October of 2009. The next layoff response is still months away (and it may not be the last) and the best day for a laid-off person is the actual day they are laid-off. Months later, when jobs are still hard to find and money is scarcer, it is much worse.

We expect the markets to do better than the economy. There will be some significant rallies, and while we do not expect the November 2008 low in the stock market will hold, it might.

Without going into detail further detail on the economy and the markets, we encourage everyone to buy precious metals and precious metals mining shares with a portion of their portfolio. The dollar will be “toast” within 3 years. Those who want more on this should send a note to darrell@ResourceDevelopment.com to be put on the mining, metals and natural resource stock list.

For small-tech and nanotech investments, there will be three clear roads to profits over the next 5 years:

Successful short-term trading (2 week to 2 month periods)
Long/Short portfolios
Long-term investments (3-6 year hold periods) made at low points over the next 1-3 years

Clearly, for the near future, I do not expect intermediate-term investments in the 4 to 24 month timeframe to have much profit potential.

For those of you who would like my assistance, I may be associating with a Registered Investment Advisor (RIA) over the next few months and hope to offer separately managed accounts (SMAs) through brokerage firms in each of the three winning strategy areas listed just above.

Please send a note to darrell@Nanotechnology.com for further info in this regard, as it develops.

Best regards,

Darrell Brookstein

Managing Director

The Nanotech Company, LLC

www.Nanotechnology.com

darrell@nanotechnology.com

2009 Mining & Metals Investment Insight

2009-01-21T07:02:00.000-08:00

January 12, 2009

Dear Mining Insights Subscriber,

I have been looking for a way to be of service to our most loyal readers. Especially in this extremely difficult economy, we need trusted, experienced and knowledgeable advisors.

We are developing a way that I may be able to provide a unique service for a few of you: More on that later.

Let’s take a look back at 2008 and a look forward at 2009/2010 and see what we got right and what we missed, and how we should proceed in the coming years.

What we missed:

We recommended a portfolio of mining shares in 2008 and they suffered large losses to date.
We recommended too many high-risk companies with small treasuries that cannot sustain them through 2009.
We overemphasized silver stocks – gold stocks did much better.

I apologize if this cost you money. While negative on the economy, I now believe even I was too early on the markets and most of 2008 was part of a different world that no longer exists. There were no bailouts. There were no multi-trillion dollar stimulus programs (yes, by the end of 2010 it will not be $775B; it will be more like $2.5T). I just thought things were horrible and getting worse; I didn’t know the roof was about to cave in. This was a time when TARP was merely a flexible, waterproof covering.

What we got right:

1. We warned of a recession and collapse in real estate in 2006 and in November 2007 warned that this would be the consensus view before September 2008.

2. We bought at the April and August lows; excellent timing for the first three quarters, and we did not buy in 2007 as many did at substantially higher prices.

3. We advised only 3-6% of portfolio total in mining shares.

4. While we advise holding core positions for the long-term, we recommended the sale of all other mining shares at the TSX Venture signal at 1444 in late September 2008. The index is now about half that. (Core positions include Animas, Canplats, Rare Element, Silver Wheaton, Intl Tower Hill, et al. per previous Mining Insights)

Where we are today:

Except for our core positions we still advise being out of the market.

My biggest question mark is how long this deflationary period will last. My work cannot see whether it ends in 3 months or lingers for 3 years. Certainly, whenever it ends, years of high inflation (hopefully not hyperinflation) will follow. The human costs, market costs and financing predicaments will be immense. Please don’t listen to those who think this is all going to pass by June to October of 2009. The next layoff response is still months away (and it may not be the last) and the best day for a laid-off person is the actual day they are laid-off. Months later, when jobs are still hard to find and money is scarcer, it is much worse.

We expect the markets to do better than the economy. There will be some significant rallies, and while we do not expect the November 2008 low in the general stock market will hold, it might.

One thing we said in 2008 that we still believe is that when we compare the TSX Venture Exchange Index highs between now and March 2010 with the average of the April and August 2008 TSX Venture lows where our purchases were made, the profit potential will be extraordinary.

For the time being we are in a continuing bear market in precious metals mining stocks that I expect to end by September 2010 (and possibly by August 2009). The bottom will be indicated in one of two ways. Either a bottoming formation will be made in 3 to 6 months or the GDX (Gold stock ETF) price of $34.46 will be exceeded.

What will work now:

Buying for the long term at significant bottoms over the next 6-30 months
Trading for two week to two month timeframes
Equal dollar amount Long/Short investing

Please send a note to darrell@ResourceDevelopment.com for further info in this regard, as it develops.

I will be speaking at the Vancouver Cambridge House Conference Jan 25-26 and look forward to seeing some of you there. Visit http://cambridgehouse.ca/ch_jan2009.html

Best regards,

Darrell Brookstein

darrell@ResourceDevelopment.com

2009 Nanotech Fortunes Update

2009-01-05T08:35:00.000-08:00

A 2009 Update to Nanotech Fortunes: Make Yours in the Boom; Winning Strategies (2005)

Revisiting in a Serious Recession or Depression

By: Darrell Brookstein, Author of Nanotech Fortunes
Managing Director
The Nanotech Company, LLC
San Diego, CA
Phone: (in U.S.) - 858 794 0848
Email: darrell@Nanotechnology.com

December 7, 2008

People at the highest levels of authority in our government, commercial and investment banks, hedge funds and leading corporations had no idea of risks involved in what they and their policies were doing; simple, basic understandings that should be expected of any fiduciary. Combined with a failure of oversight (not lack of regulation), greed, incorrect response to the problems based on incorrect assumptions, we are where we are today: in a serious, 18-30 month recessionary period, that can turn into either a decade plus long Japan-like situation (1990 forward) or international depression with just a few more missteps.

Given where we are, new paradigms that we detail for each group below are required for small tech-interested investors, brokers and investment banks, hedge funds, venture capital firms, angels, publicly traded and private companies and professional services providers in the space.

In Nanotech Fortunes, written in 2004/05, Chapter 15 – Six Steps to a Nanotech Fortune (pp. 144-193) was the longest and most important section. When the first copies rolled off the presses in May 2005, we felt that the first nanotech investment boom had not occurred and was unlikely to begin before the mid-2006 to 2009 timeframe. In late 2005, I noted we had a serious decline ahead in the equities in general, tech stocks specifically and nano and microtech-related stocks most seriously. Reiterating this again more strongly in December 2006, our Nanotechnology.com Small Technology Stock Index (the strongest related index) has recently fallen more than 52% from its high and we are trading at about 6-year lows.

We believe that depending on your level of interest and role in the nanotech-investing world, the devastating economic, financial and investment environment that has surfaced over the last three to seven months will have dramatic affect; you need to drastically change what you’ve been doing.

Let’s examine the edits we would make today to Chapter 15 of Nanotech Fortunes.

If you are:

A Publicly Traded Advanced Technology Company

Scarce capital to grow or survive is about to become even more scarce. Count on this lasting (with possible short-lived windows) at least 2-4 more years.

If you do not have excellent, targeted IR and financial PR, you are not going to survive unless you dilute yourself incredibly (or have a full treasury to last 5 years already).

We have yet to see a single, publicly traded nanotech, “small tech” or advanced technology company with the proper understanding of the correct roles of IR or financial PR, much less doing what we consider to be even a “good job”.

Please call or email me to explore how we can be of assistance in any of the above. We serve customers; we tailor individual solutions; we believe every situation is unique and deserves individual attention.

A Private Advanced Technology Company

You’ve been having a hard time getting attention (much less capital) for more than a year. Sorry, but it is about to get much, much worse.

VCs and even Angels are looking for late stage, large dollar deals, and despite their continued failures to achieve positive investment outcomes they are likely to continue doing this.

The TSX Venture Exchange alternative that I’ve been speaking and writing about for years is even tightening up due to the recent natural resource debacle (not to mention the recession/depression in which we find ourselves).

In this atmosphere, only the most polished, most prepared, have a realistic chance of success. To put yourself in front of the best possible groups with the best possible presentation, you need maximum professional assistance.

We have a long history of working with micro- and small-cap public companies.

Please call or email me to explore how we can be of assistance in any of the above. We serve customers; we tailor individual solutions; we believe every situation is unique and deserves individual attention.

A VC or Private Equity Firm

Venture and other private equity firms still have not gotten a handle on how to make money in advanced technologies. The keys for the near future will be to focus only on companies: A. requiring very little capital to achieve an exceptional ROI in a very tight timeframe and B. that save industries capital, lower expenses or make existing processes more efficient.

Our firm has uncovered only five companies that fit this model today.

Please call or email me to explore how we can be of assistance in any of the above. We serve customers; we tailor individual solutions; we believe every situation is unique and deserves individual attention.

A Hedge Fund Manager

Except for a couple of atypical, VC-style private placements, hedge funds have done very little in the space. As their model suffers with the markets and economy through this most difficult period in their history, very little new is likely to be done.

This is an incredible opportunity for a forward thinker, not afraid to buck the pack. There will be no competition. A relatively small amount of capital, partnered with our firm’s merchant banking capabilities in “small” and advanced technology companies that save industries capital, lower expenses or make existing processes more efficient, would own the space for decades.

Please call or email me to explore how we can be of assistance in any of the above. We serve customers; we tailor individual solutions; we believe every situation is unique and deserves individual attention.

A Broker or Investment Bank

We have seen a number of investment banks and individual brokers fail in building the type of nanotech and advanced tech practice I first wrote about in 2004.

A few have financed deals that have just done horrendously.

Incorrect ways of looking at valuation and faulty research are usually at fault.

I have tried to get more than one well-capitalized group to turn this job over to our team. A more “merchant banking” style formula, proper research and a better valuation process would give this concept the success and the string of wins it needs to establish itself and the forward thinking broker or investment bank will reap substantial rewards.

Individual brokers could market and earn fees on separately managed accounts (SMAs) that trade fully-hedged long/short, options strategies or pairs trade strategies (the only strategies we believe can succeed in the flat or down markets we anticipate) run by professional managers or they could manage these types of trades for their clients by subscribing to a professional newsletter.

Prior to the collapse in oil prices, alternative energy, green tech, solar and cleantech, etc. seemed to many investment banks to offer the greatest potential for creating wealth from cutting edge technology companies, but that’s hit a fork in the road (or a brick wall) for the time being.

Please call or email me to explore how we can be of assistance in any of the above. We serve customers; we tailor individual solutions; we believe every situation is unique and deserves individual attention.

An Angel Investor

In 2004, the typical angel was an individual who invested $20K to $200K per deal and invested mostly on his own or with a small group. He or she saw himself or herself as pre-A round, seed investor willing to take serious risk to make a serious profit.

Since then things have changed a lot.

Angel investing is much more institutionalized, with large, geographically and interest-centered Angel groups making “group” decisions. These decisions, more and more look like venture capital firm decisions because the Angels no longer want to invest in anything in which a VC will not also invest.

This “group think” is destroying creativity and the institutionalization of the process appears to lower risk, but actually just ensures that small deals with high profit potential don’t get done: No one wants to do a deal that won’t be of interest to a large VC firm.

Some Angel groups would benefit from a higher-level scientific, technological and commercialization consulting than they can get within their group when looking at the cutting edge of technology.

Please call or email me to explore how we can be of assistance in any of the above. We serve customers; we tailor individual solutions; we believe every situation is unique and deserves individual attention.

A Very Affluent Investor or Family Office

Except for a couple of atypical, VC-style private placements, the truly wealthy and their Family Offices have done very little in the space. As their model suffers with the markets and economy through this most difficult period in their history, very little new is likely to be done.

This is an incredible opportunity for a forward thinker, not afraid to buck the pack. There will be no competition. A relatively small amount of capital, partnered with our firm’s merchant banking capabilities in “small” and advanced technology companies that save industries capital, lower expenses or make existing processes more efficient, would “own” the space for decades.

Also, while all investors should get a professional financial plan or current plan review, ASAP, those with net worth between $10M and $80M are at particular risk. These individuals usually have advisors who are unfamiliar with high inflation/deflation hedging and are too small to have developed, professional family offices.

Please call or email me to explore how we can be of assistance in any of the above. We serve customers; we tailor individual solutions; we believe every situation is unique and deserves individual attention.

An Advanced Technology Professional Services Provider

Up until the last 9 -18 months, this group was doing well.

Accountants, consultants and attorneys were about the only ones making money in the nano and micro space.

The world has changed, of course, and the universal tight capital is killing billings.

Marketing and reaching new clients is paramount at this time, and through our connection to Nanotechnology.com, we have access to the decision makers.

Please call or email me to explore how we can be of assistance in any of the above. We serve customers; we tailor individual solutions; we believe every situation is unique and deserves individual attention.

A Stock Investor

A major up-move (related to short-covering and the Obama honeymoon period) for short-term speculators has begun and will likely end between now and February 28, 2009 (we look for a high of between 92 and 101 basis the SPY. Traders should begin looking for places to reenter short positions between 93 and 97).

Other than that, we see little chance of a real market bottoming for long-term investors before the period between July 2009 and September 2011.

On cutting-edge technology companies: Affluent investors should begin long-term investments only in early-stage private companies that can save industries capital, lower expenses or make existing processes more efficient.

Others should avoid the public markets for these types of shares until a bottom is in place in the Nanotechnology.com Small Tech Index.

All investors (especially those with net worth above US $2.5 million) should get a professional financial plan or current plan review, ASAP, with that rare advisor who understands how to plan/hedge for both rampant inflation and deflationary scenarios.

Please call or email me to explore how we can be of assistance in any of the above. We serve customers; we tailor individual solutions; we believe every situation is unique and deserves individual attention.

Darrell Brookstein, Author of Nanotech Fortunes
Managing Director
The Nanotech Company, LLC
San Diego, CA
Phone: (in U.S.) - 858 794 0848
Email: darrell@Nanotechnology.com

Mining Insights #5

2008-09-23T11:14:00.000-07:00

September 23, 2008

Trip to Rare Element Resources’ Wyoming Property

& where we are in the Mining Stock Investment Cycle

I won’t waste time regurgitating the genesis of the previous, three, historic weeks. I’ve been on record since at least November 2006, yelling for people to “wake up and smell the coffee” and get real about the real estate crisis.

Suffice it to say, that the resolution of all these engendered economic disasters, will be longer, the nadir deeper and the recovery more uncertain then any downturn except, hopefully, the Great Depression.

“We are all communists, now,” said one wag with whom I correspond.

Would, it were otherwise.

I don’t like it when investment pros wear their politics (or religion) on their sleeve. However, I don’t think you’ll find it so political if I may say, “A plague on both their houses”. Also, while my lawyer friends (yes, I have some) tell me that no crimes were committed (by that large number of folks who ran these huge companies), having been an investment bank CEO, myself, I believe what the heads of these huge financial entities allowed was criminal. “There ought to be a law” and they should “not pass go; go directly to jail.”

Before turning to the Rare Element trip, I know most of you are anxious to hear my current “take” on Animas Resources.

On Animas Resources (ANI: ANIMF)

We are waiting on “pins & needles” for the first release of drill-holes from the Animas’ 20,000 meter 2008-early 2009 program. We expect to see 2 to 4 result releases between now and year-end. The first seems to have been delayed past our expected mid-August date by the assay lab taking 9 weeks instead of the 3 weeks that we had expected in June.

However, there is more.

While I have no proof to offer, I believe a further delaying element is the announced (July 21) acquisition of the Lixivian property that lies within Animas’s claims. If you wanted to buy (at the seemingly “high” price of $650K) a property within your claims, you would certainly not want the seller to have positive data points. (Furthermore, nor might you want to even know them yourself, to avoid any indication of impropriety – in fact, a good attorney might counsel you to not intentionally discover ANY significant, new information until an agreement was signed).

We hope that the deal will be finalized within days.

The market participants in Animas shares (ANI – ANIMF) are keeping fingers crossed for the great drill news that we believe is imminent. In the current market ($1.18), US $ purchases between $1.05 and $1.35 should be a great trade for 3-6 weeks and unbelievable investment, long-term.

Rare Element Trip

Earlier in September, the Rare Element team invited me and some noted mining folks to visit their extraordinary Bear Lodge Property in Wyoming. From left to right below: Kevin Graham of GrahamAnalytics.com, Frank Quinby of Small Cap Catalyst, yours truly, Brian Fagan of StocksandSpeculations.com, now-retired mining share guru (and major Rare Element shareholder), Bob Bishop, Bob Moriarty of 321Gold.com, Don Ranta, Ph.D., CEO of Rare Element, Gordon Holmes of TheAuReport.com, James Clark, Ph.D., VP Exploration of Rare Element, Jeff Phillips, financial PR maven of Global Market Development, Mickey Fulp, MS Geology of MercenaryGeologist.com and Greg McKelvey, MS Geology, Rare Element Director.

We could make this very complicated, but I believe folks pay me to keep it simple. I learned several VERY important new things by going on the tour. I will lay them out in a simple, short outline below.

One thing you definitely don’t need from me is an explanation of the geology or the fine details of the potential metallurgy. This is a big (really HUGE) “back of the envelope” story, and there’s no need to make it any more difficult.

So, let me start this way:

If you have not previously read or want to re-review my complete, pre-trip write-up & recommendation, you should immediately visit HERE: http://www.nanotechnology.com/blogs/blognano/2008/04/mining-with-nanotechnology-twist.html

If you want to read Rare Element’s new and enlightening Corporate Profile, visit HERE: http://www.rareelementresources.com/s/Presentations.asp

Exceptional and quite useful and informational, additional resources on the company website are available HERE: http://www.rareelementresources.com/s/QwikReport.asp

Here’s what the huge Bear Lodge property in northeast Wyoming looks like.

Pretty hospitable, right? (except when 60 degrees below zero in January!)

Here’s a view of a reclaimed meadow, that, believe it or not, was once full of unsightly trenches. (Those tiny black dots in the sunny distance are grazing cattle!) We’re ALL environmentalists. . . . You may show this to your friends who believe that mining HAS to ruin the land forever. “It just ain’t so.”

Yours truly, at a steeply inclined hole under the Bull Hill feature - an attempt to intersect highly mineralized, ore-grade rare earths.

That crumbly charcoal-colored stuff appears to be “the goods” and it started at around 10 ft.

LESSON #1 from the trip

The U.S. Geological Survey’s gross, geological, potential resource, ESTIMATE (my description of what the number indicates - think of all the caveats that are in that description – wow, a lot) of rare earths in Bull Hill are around 80 million tons at more than 4% rare earth minerals.

My “back of the envelope” is that 60% of that is there, and only 60% of that will end up in a kind of mineable reserve. Then, due to “difficult” metallurgy (ALL rare earth deposits have “difficult” metallurgy), only 70% of that will be recovered on an economically equivalent basis as a typical gold deposit (so, we’ll say 55% will drop to the gross line). Using a low average value per ton of $25/lb of rare earth, that’s 28.8 million tons carrying, get this - 2.3 Billion pounds of rare earths (with assumed poor recoveries) ! Worth . . . hmmm . . . .at least 3.15 million ozs of gold!

Reminder: Newmont earns into a large percentage of the gold at Bear Lodge . . . . . . none of the rare earths.

Lesson #2 from the trip

Really this is a reminder, not a lesson: when major mining companies develop a junior’s property they have NO incentive to: A. release the big news as fast as they can, nor B. to promote the property or its development (fear of competitive bidders), nor C. to develop the property even one ounce beyond the point at which they want to negotiate the junior “out” of the property.

Count on Newmont to disappoint, and you won’t be disappointed.

How will Rare Element “fight”? Count on Ranta, Clark and McKelvey, all steeped in the ways of the Majors, to know all the tricks and to make sure that as many majors as possible are paying attention.

Lesson #3 from the trip

Know the negatives in advance.

Receipt of the disturbance permit is now not expected until around November.

Due to the harsh winter weather (and the muddy spring), the delayed disturbance permit will ensure that Newmont’s development gold drilling will not start until May or June 2009. I would not expect to see any gold results until July or August 2009.

On rare earth’s: Drill is turning right now, and we would expect to see some very good results and further definition and outlining of the main resource this year, but this not a significant or expensive program.

Bottom line: Buy Rare Element (RES – RRLMF) NOW between US$ 0.50 and $0.80 and over the next few months while things are practically dead. RES is truly “a second half of 2009 story”, but sophisticated investors will be accumulating while the typical, retail traders are looking elsewhere – like now.

Lesson #4 from the trip

The 200-acre disturbance permit is a HUGE DEAL.

This allows, for example, seven drills to be turning on seven different 28-acre sites! Then, every single acre that is “reclaimed” from disturbance goes back to the 200-acre total. In other words, this permit assures the potential for the very most aggressive drilling and development program imaginable.

Lesson #5 from the trip

This is a Cripple Creek-style deposit/property. It is significantly larger and significantly more gold-anomalous, over a much larger area at surface than Cripple Creek. What is there at Bear Lodge? We won’t know for years . . . decades. Cripple Creek has produced 24 million ounces of gold and still has another 7 – 10 million ounces. Given its geological setting, deposit style, size and gold occurrences everywhere, in every rock type . . . Is it possible that Bear Lodge contains multiple, multi-million ounce deposits at surface and depth for a total of 20-40 million recoverable ounces?

Yes, it is.

Of course, it is unlikely that Rare Element itself will ever actually mine a single ounce of gold or pound or rare earth minerals, but, to the sharp investor, that is of no consequence. In my opinion, minimally, there will be proven to be ore with 3 million gold-equivalent ounces of rare earth’s and 2 million gold ounces to Rare Element’s credit (all exclusive of Newmont’s share). Again, in my opinion, we’ll have a high degree of confidence that this is so before the end of 2010.

Ore (rock containing economically recoverable mineralization) containing 5 million gold-equivalent ounces at even $80/oz (and don’t rule out $130/oz in the proper environment) would value Rare Element at $400 million.

That’s a really long way from today’s valuation of only about $17 million. That “distance” is what will protect us, whether the “real” number two years from now is 1 million, 3 million or 7 million ounces!

Back in Rapid City, SD, some very happy Rare Element shareholders reflect on the huge and dramatic property we have all learned much more about that day.

Where we are in the Mining Stock Investment Cycle?

In the intermediate-term: Our proprietary system indicates that a strong 5-week to 5-month rally began last week. Use this rally to exit from all junior mining shares that do not have the potential for at least 5 million gold-equivalent ounces and good financing capabilities (NB: these are extremely rare; we’re going to trim down to only 4 - 7 stocks – of course, Animas and Rare Element being two of those).

Tax loss selling will absolutely pressure junior mining shares this year between mid-October and the end of December. Hopefully, this will be a rally of the 5-month variety and not the 5-week type. We’d rather be sellers of these “weak sister” stocks in February 2009 strength rather than in October 2008.

In the long-term: We have changed our long-term opinion of the precious metals markets. Our technical indicators now show possible long-term tops in gold and silver were put in-place March 2008. Highs that are achieved in gold and silver over the next 2 years may well be identified as “bear market rally” highs.

Prior to this, we were confident that new, all-time highs would be made in gold and silver and that mining shares would not top until January 2010 to April 2012.

We are no longer confident about the metals (unless they break above the old highs by the time you get this . . . ha ha .. . gold is at $909 as I write!), but our opinions are unchanged on the mining shares most likely topping timeframe.

With the benefit of hindsight, of course, it would have been so much better to limit all our buying of mining shares to the last week or so.

Unlike many other newsletter writers, I’ll “tell it like it is.” Unfortunately, many of the purchases have proved to be atrocious so far (but we still see all of the companies dramatically higher over the next two years, yielding great profits). We are glad that these shares represent only a small 3-7% portion of our readers’ assets.

That said, we still believe that the average of the late-April 2008 prices and the mid-August 2008 prices (where we entered the market) will look FANTASTIC when compared to the highs that we expect to be reached between October 2008 and October 2010 (even more so, whenever the all-time high is eventually hit, between January 2010 and April 2012).

Any new high intraday trades in gold or silver (less likely, but should they occur) will trigger nearly immediate 7% + additional rallies beyond the “old” highs.

What would make us “wrong”?

The TSX Venture Index should not have two consecutive closes below 1446.90 . . . but any single trade in the XAU Index (representative of big-cap mining shares) below the recent, multi-month, intra-day low at 110.70 (VERY unlikely) would scare the heck out of us and turn us very bearish on mining shares.

Reminders: Most folks should have no more than 3-7% of their assets in precious metals mining shares, and, depending on net worth, you may use the $237K model portfolio to identify the “pro-rata” position right for you.

Here is how we expect our $237,515 model portfolio appears for those who followed our inputs (US$):

Reminder: To receive these Mining Insights along with our subscribers send a note to darrell@resourcedevelopment.com - FREE, for the time being

26,000 Animas Resources @ $1.40 - $36,400

23,000 Rare Element Resources @ $0.78 - $17,940

2,760 Freegold Ventures @ $1.45 - $4,005

3,000 Pediment Exploration @ $1.80 - $5,400

2,225 Entrée Gold @ $1.80 - $4,005

3,000 Canplats Resources @ $3.10 - $9,300

7,500 Silvermex Resources @ $0.95 - $7,125

2,500 Silvercorp Metals @ $5.75 - $14,375

4,500 Coeur d’Alene Mines @ $3.05 - $13,750

500 Silver Standard @ $28.90 - $14,450

1,500 Hecla Mining @ $9.60 - $14,400

1,000 Silver Wheaton @ $14.55 - $14,550

1,500 Apex Silver @ $7.45 - $11,175

2,400 New Gold @ $5.60 - $13,440

7,500 Midway Gold @ $1.80 - $13,500

12,000 Orko Silver @ $1.35 - $16,200

15,000 Riverside Resources @ $0.90 - $13,500

]

10,000 Intl. Tower Hill @ $1.40 - $14,000

Disclosures and Disclaimers

GENERAL TERMS*

No investment opinion or other advice is being rendered on any stock or company. All of the trading stocks we recommend should be considered highly speculative; you can lose some or all of your money. It should be assumed that the Author and editor and their associates may hold or dispose of or trade in positions in any securities mentioned at any time. No fee in cash, shares or options was paid for this report. Please be responsible for understanding the terms and vocabulary of stock market investing. Here is an unaffiliated glossary site that may be useful:

http://www.traders.com/Documentation/RESource_docs/Glossary/glossary.html

Disclaimer

The Nanotech Company, LLC, Darrell Brookstein and/or Resource Development are not registered investment advisors nor broker/dealers. Readers are advised that the material contained herein should be used solely for informational purposes. The

Author does not purport to tell, or suggest to, readers which investment securities they should buy or sell for themselves. Readers should always conduct their own research and due diligence and obtain professional advice before making any investment decision. The Author will not be liable for any loss or damage caused by a reader's reliance on information obtained in any of our newsletters, special reports or on our web site or sent by email or mail. Our readers are solely responsible for their own investment decisions. The information contained herein does not constitute a representation by the publisher or a solicitation for the purchase or sale of securities. Our opinions and analyses are based on sources believed to be reliable and are written in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy or completeness. All information contained in our newsletters or on our web site should be independently verified with the companies mentioned. The editor and publisher are not responsible for typographical or other errors or omissions. There is no guarantee of investment results herein whatsoever, either explicit or implied. Past results are no guarantee of future results or even profitability. Investors are cautioned that they may lose all or a portion of their investment if they make a purchase or short sale in these speculative stocks.

Nanotech Investing - Part III

2008-09-16T08:26:00.000-07:00

This article was published at www.Stockhouse.com on August 8, 2008.

If you are not an “accredited investor”, should you begin investing for the long term in “small” and advanced tech stocks, now?

If so, how and in what should one invest?

Unbelievably, for the first time, ever, we say – yes!

We would begin to “dollar cost average” monthly, over the next 20 months. We would divide the total amount we wanted to invest in these type shares over the next few years – let’s say $20,000 – into 20 and invest the same amount monthly on the same day (in this case $1,000), every month for 20 months starting now.

What stocks would we choose and how many shares of each would we buy?

Simply, we would buy The Nanotechnology.com Small Tech Index using the stocks and the ratios we present there. (Remember to use the footnotes at the bottom of the page. They are very important.)

Now some words of caution, especially for the well-heeled, “accredited investor”-types with which we work closely:

A few months ago, 60 Minutes did a very interesting take on nanoparticles used in cancer therapeutics: a technology with which our team is quite familiar. You can view it now if you missed it and read the accompanying article.

The changes in science and technology are coming so fast that one noted scientist recently stated, “things change faster than you can publish them.”

Let this be “a word to the wise”, when, as an investor, you think you are on to something unique. Finding a “robust” technology, one that keeps working efficiently and economically, no matter what you throw at it is usually good enough, if you have the right team.

The U.S. economy is now faced with the choices of a man atop a burning, two-story building. He can make a terrible choice with known consequences by jumping and breaking his legs (inflate, regulate, and bail out, which will cause significant and harmful, but fairly well understood, consequences), or he can face the unknown and wait or run into the fire, hoping for it to be put out before reaching him or finding an opening to an escape. The results would likely be catastrophic, but he might survive (this equates to doing more tinkering around the edges or letting the weak markets crash and hoping for positive results – the outcomes are unknown but could range from all kinds of “nastiness” like Japan in the early 1990s and forward, to Germany’s hyperinflation prior to World War II).

Luckily, as of now, we’re only standing on the top of a one-story building! Unfortunately, that could change, and many stories added, if we continue down the path on which we have been.

Here are the resources you need to be a successful investor in nanotech and other “small” and advanced technologies. They are all free (except for the book, listed first below):

Nanotech Fortunes – the first and only book written on successful investing in “small technologies” – available on www.Nanotechnology.com or Amazon.com.

Nanotech Insights at BlogNano – start here and read up to the current date.

The Small Tech Prospector archive – you’ll have to register for free and provide your e-mail address, but this is an incredible trading diary and information source.

Nanotechnology.com itself – the four or five most important nanotech stories in the world posted daily on the home page. Interviews with the giants of nanoscience in easy-to-understand for the non-scientist format; constant update of The Nanotechnology.com Small Tech Index, The Best of the NanoWeek archive, and much more; some require a short email registration.

Scientific & Technological Commentary on stocks for the non-scientist – again, quick, free registration required. This will gave you a great sense of how our scientists do due diligence on nanotech companies.

Of course, our company seeks and values relationships with accredited and institutional investors, financiers, and CEOs of private, “small,” and advanced technology companies that can achieve a high ROI for investors, capital needs of less than $12 million, and an interest in immediate access to public markets via the regulatory auspices of the TSX Venture Exchange. Readers are welcome to contact us per the note below to receive our regular updates.

Nanotech Investing - Part II

2008-09-08T08:42:00.000-07:00

Opportunity only knocks once, and this is what nanotech investors have been waiting for.

This is a continuation of Part I, published on Stockhouse.com on August 1, 2008.

When the bottom in “small technology” (nano, MEMS, microelectronics, and microfluidics) stocks and private companies comes, we expect you’ll find:

Coatings – good

Catalysts – good

Advanced materials – excellent

Lubricants – good

Filtration – good

Insulation – good

Photovoltaic companies – questionable

Since the nanotech tales of woe, detailed in October 2007, there has been more woe (but you’ll see in Part III there is more than room for optimism, now):

From mid 2007, one single, “unlucky” investment bank raised Arrowhead Research Corporation (NASDAQ: ARWR, Stock Forum) $16.5 million at $5.78 per share with ¼ warrants at $7.06 (it’s now $2.02). They raised Nanophase Technologies Corp. (NASDAQ: NANX, Stock Forum) $10.6 million at $5.92 (now $1.95). Oddly (not), they were unable, for whatever reason (amazed neither the company itself nor the underwriter have yet to release details at this late date), to bring private company, Nanodynamics, public on the Dubai Exchange a few months ago.

Consider more woe: Considered by some a superstar, Nanosphere Inc. (NASDAQ: NSPH, Stock Forum), went public only in early November 2007 at $14 – today $8.82.

Sorry, but this continues a pretty darn bad record for nanotech investing and investments, and you know what they say about those who continue repeating the same activities while expecting different results.

As we’ve been saying and writing publicly since 2004, the “VC to IPO or M&A model” (nothing against VCs) is “broken” (it’s the wrong model) for “small” tech investing, largely because it requires more capital than can be efficiently put to use by these type of companies. A merchant banking model (read the Hambrecht & Quist, Petrie/Parkman, or Allen & Co. model) wedded to the public venture capital stock markets and going public early is a better formula for success.

All that said: We are certainly closer to a long-term bottom than at anytime in the last 10 years, and, properly structured for return on investment, nanotechnology and other advanced tech deals, companies, and stocks will prove incredible investments over the next three to seven years.

Especially when the investments are made at pre-public, private placement valuations.

With these nanotech insights, it is my hope that kindred spirits, including accredited investors, VCs, investment bankers, angel investors, analysts, scientists, hedge and private equity fund managers, high-tech entrepreneurs, public and private “small” tech companies, and family office execs will gravitate toward The Nanotech Company, LLC.

Our vision of using the TSX Venture Exchange to finance and create liquidity for “small” and advanced technology companies and our deep expertise in successful employment of Canadian public venture capital markets are unique.

To be clear: Our firm, supported by our eminent Scientific Advisory Board, is going to be building “small” and advanced tech companies via the TSX Venture Exchange. The main reason we are communicating with this relatively small group and fraction of our list of Nanotechnology.com subscribers is that some of the “accrediteds” among you may have the opportunity to participate at a ground-floor stage in these investments and others may assist us in growing this process.

Again, opportunity and history knock only once.

Patience pays off. Valuations are down. Money is tight. Success stories have been few.

This is what we have been waiting for. What a great time to be a nanotech investor.

Part III to follow shortly.

Nanotech Investing - Part I

2008-08-26T08:48:00.000-07:00

"Greentech" and "cleantech" are the catchwords of the moment.

Today we are experiencing a major “de-leveraging” of the credit system upon which world economic growth is based. We have never seen anything like it in my 35-year professional career. Already it rivals the mid-1982 deflationary vs. inflationary spiral point of decision, that, fortunately, Volcker navigated successfully.

Around mid-April, all the major nanotech stock indices, including our own, The Nanotechnology.com Small Tech Index, hit five-year lows.

In the 2005 book, Nanotech Fortunes: Make Yours in the Boom; Winning Strategies, we described the importance of four-year lows in all “boom/bust” markets as well as the importance of the mid-2006 to late-2009 timeframe for setting up a premier buying opportunity.

We have been speaking about this and writing about this since 2003. Others, less familiar with the public markets, high-risk investing, or the demands of science and technology (or all three), have been much too early and are paying for it now. They underestimated the FDA process, the time it takes to do good engineering, overcoming or not considering physics problems, packaging issues, taking something from a lab bench to industrial scale-up… etc.

Of equal or greater import, the fact that IBM (NYSE: IBM, Stock Forum), DuPont (NYSE: DD, Stock Forum), Chevron (NYSE: CVX, Stock Forum), Intel (NASDAQ: INTC, Stock Forum), GE (NYSE: GE, Stock Forum), etc. are far more likely to advance their in-house nanotechnology to products than a small company is to overtake them was all but forgotten. In addition, so-called “traditional” technology often trumps the best-laid plans.

Yipes!

Some forgot it wasn’t 2000 anymore; the public would not accept bets on the distant future promise of returns in exchange for the possibility of near-term capital gains.

On the other side, scientists, engineers, and high-tech executives with patents and other intellectual property have welcomed the investor community’s largess with open arms. Who can blame them for creating receptacles for the dollars? They want their labs fully-funded and are more than happy to do their work, push the edges of science, publish and advance their technologies… as long as the livin’ (and money) is easy.

We have a phrase for this in mining and oil & gas venture capital. Many geologists love being “in the bush” and “turning the drill bit to the left”; they are much less concerned than you (the investor) are that they actually “find” anything. They enjoy the activity of their work, and for them that is its own reward (if they are paid to do it, all the better… lol).

This game is over. Actually, it was over in 2002/2003, but the “smartest guys in the room” didn’t grok it, and they led sophisticated institutional investors along with Mom and Pop retail investors astray.

Today, “greentech” and “cleantech” are the catchwords of the moment. They too are having their comeuppance in the throes of the exuberance of too many solutions chasing too many markets that may or may not even exist (note charts of solar and wind stocks over the last few months). Not only are these catchwords just new ones for “nanotechnology,” “small tech,” and “advanced technologies” (think about it, except that they usually don’t include the medical or semiconductor sides of “small tech,” they really are).

As investors and the average folks come to realize how distant some of these markets are, how plentiful oil actually is (nanotechnology is even “finding” more) and, may I say it, how much Gore has changed his “vision” for his pocketbook, this enthusiasm, too, will fade. “Gone with the wind” and wind-farms . . . if you will. (Please don’t write me on this; I’m not saying solar, wind, clean coal, pollution tech, etc., etc. aren’t great things . . . only that the investment enthusiasm is ahead of itself… yet again.)

… to be continued….

Gold Mining Stock Interview: Darrell Brookstein w/ The Gold Report

2008-08-22T06:01:00.000-07:00

An Outstanding Buying Opportunity Is Setting Up Now
Source: The Gold Report 08/15/2008

The Gold Report spoke with financier and newsletter writer Darrell Brookstein about the turbulent gold market and the many opportunities he believes are out there as mining companies are oversold. He believes that this is just a pullback in a bull market, and we could very well see some all-time highs in the next 18 months.

TGR: It's been a rough week for gold. As of today, gold is down to $822. You've indicated that gold would bottom out around the 20th. Can you give us some of your logic behind that?

DB: It’s based on several factors — proprietary pattern recognition technology that I developed in the late '80s and early '90s, and the fact that gold and gold stocks have a seasonal tendency to bottom in the July-August timeframe. And I have been saying since February that this year would be a year where it follows suit and does what it does more than 70% of the time, which is to bottom in the July/August timeframe.

So, it’s a combination of pattern recognition technology that I developed, combined with the normal, seasonal pattern. We’re seeing what is setting up to be a short-term, oversold period, which we just entered today (8/11/08), and it will probably become extremely oversold by somewhere between now and the 23rd. I am fully expecting that to be the case.

Now, a couple of other things bear witness that this is a normal pullback — a 33.33% pullback — in a bull market. I am marking an intermediate bull market that started around early 2005, and a normal pullback for that would take gold about $8 to $15 lower than it is now (at the 8/11/08 close). So, in other words, to my mind there is nothing to be afraid of and there’s everything to be excited about.

Take the August low against the high of the next 18 months — there will be an extraordinary difference between those two and an outstanding buying opportunity is setting up now.

TGR: So you’re looking at the bottom; this is not a trend.

DB: Oh, absolutely — this is a pullback in a bull market. The bull market is likely to carry to the TSX Venture Index ( ^JX:CA) to new all-time highs; it’s likely to carry the GDX (Market Vectors Gold Miners ETF, AMEX: GDX), which is the major gold mining stocks, to a new all-time high as well. It is likely to take gold to around $1,035 at a minimum, and silver to around $25 at a minimum. And I would say the odds are better than 75% that that will be the case.

If I am incorrect, and, in fact, it turns out that the March '08 highs of gold and silver, and the March highs in the XAU and the GDX turn out to be the all-time highs, I am still highly confident of at least one more significant rally to attempt to breach the highs. So, any way you cut it, I believe this is a great buying opportunity, and the worst case will be a substantial short-term profit. By short-term, I mean a six-week to six-month profit opportunity.

TGR: What factors should gold investors be looking at to try to determine whether it's a short-term six-month profit or a continuing trend that may reach an all-time high within 18 months?

DB: That’s a good question. I would say that two consecutive closes over a $1,035 price in gold, or two consecutive closes over any of those major indices, will signal that the game is on and that we’re definitely going higher. In which case, for example, you could see gold in the $1,200 to $1,400 range. You could see silver in the $28 to $35 range. And likewise you could see the TSX Venture going to a new all-time high, perhaps 30% to 60% higher than its previous all-time high.

TGR: Very interesting. So if we breach the March highs for two consecutive closes, you’re predicting that we’re going to continue to rally?

DB: That will be indicative that the previous all-time high was nothing more than a stopping point on a very long-term bull market. The interesting thing in all of this is that the TSX Venture, which is indicative of the performance of junior mining, micro cap and small cap mining stocks, actually topped in November '07, significantly before mining stocks in general, and they’ve basically collapsed since that all-time high. I waited until late April '08 to get back into the market. That was the first buying opportunity of '08, and this August timeframe is the second major buying opportunity of '08.

I think the average of those two prices—the late April lows and the August lows— is going to look like a fantastic place to have been a buyer in these stocks.

In November '07 there were significant problems in the TSX Venture and more problems followed in January for the underwriters of these companies in Canada. The combination of those two things really, really have hurt the TSX Venture stocks, and there are a lot of companies that would have been thought of as great companies a year ago, in mid-2007, which are now not going to be able to refinance and are not going to be able to get funding. So, the criteria for picking junior mining stocks has gotten a lot more specific – you’ve got to be a lot more careful than you could be in mid-'07.

TGR: And what would that criteria include now in mid-'08?

DB: You’ve got to have a company with a significant project and cash for it already in the bank to move it forward at least to the next significant level, and a tight share structure and a smart management team. Prior to this, cash in the bank was not that important because a company could easily finance the next round of funding. That is not the case today. They’re not going to be able to simply go out and say, “Hey, we need 2.5 million more dollars to do our next set of drilling.” The money is just not going to be there; they have to have the money already in hand.

It’s a financing problem. And it’s a terrible problem because these are not operating companies. The only way they advance is by working in the field, which either can be by drilling, or induced polarization or magnetometer work, etc. Something has to be done on the geology or the geophysics to move the property forward, and that takes cash and capital. If they’re not generating capital internally through cash flow, then they have to raise the money in the stock market; if they can’t raise the money in the stock market, they’re dead. Their stock is just going to keep going down, and they’re going to have to sell their property to a stronger, better company, or they’re going to have to joint venture it with a major on what would have been considered unreasonable terms. Something like that is their only way out.

On the other hand, a company with a great property and $5 million in the bank, with $2.5 million worth of drilling over the next months, will probably be just fine.

TGR: In the short term, how would you compare investing in a junior, which is capital intensive, versus a producing company, which does have cash flow to carry it through over the trough of the stock market?

DB: Well, there are some exciting stories in the major mining companies because they've been so slaughtered. Some companies are just going to keep making money, and they’re just going to do great whether gold is at $800 or $1,000; although obviously it’s better for them if gold is at $1,000. But they’re going to do just fine.

And some of these have come down so much that they are now low-P/E stocks, which is unheard of in mining, because most major mining companies are valued on assets in the ground and the new gold that they find. They’re very rarely valued on an earnings basis. Some of them, like Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX), Anglo American (AAUK) and Goldfields Ltd. (JSE/NYSE:GFI), have fallen into the value stock area with P/E ratios of around 7 to 12. Companies like that are deeply oversold.

You have to have a long-term perspective and wait until these sell-offs start to go to the upside. Watch for this rise, combined with the normal seasonal pattern such as in August, and you can buy these stocks at once-a-decade prices or even once-in-a-lifetime prices. You can do very well over the next 16 to 30 months. That’s what I give the bull market in gold and other metals —16 to 30 months more before it tops out.

TGR: How would you balance your portfolio between majors and juniors?

DB: First of all you have to start with an overall understanding of your portfolio and at what level gold stocks and silver stocks play in at. The typical investor might have 5% in gold and silver mining stocks, and I think for a person like that I would say three or four-fifths of that in majors, and one or two-fifths in juniors. I think given the story of opportunity that is available today, I might divide that fifty-fifty, and I would put half in junior mining shares and the other half in the majors, because we have such a significant opportunity at this timeframe.

TGR: People say gold is influenced by the value of the dollar. Now Russia has invaded Georgia, and there’s still talk of conflict between Israel and Iran. Will those events impact the price?

DB: No, I don’t believe in looking at markets that way. That might sound a bit strange, but in the short term I think that stories are just excuses that pundits use for why things go up and down. As an example, Russia invades Georgia. Gold goes straight down. What if the opposite had occurred and gold had gone straight up? It’s very possible that gold could have gone up $30 today instead of down $30. There’s no reason why not. Then people would have said, “Oh, gold is going up because of the instability in the world because Russia invaded Georgia.” Likewise, Israel announces something with regards to Iran, and if gold goes down, it’s ignored; if it goes up, it’s pointed to.

These are really just excuses. Markets are made by very much larger factors specifically related to the metals themselves. So, for example, gold demand is pretty much ruled by dentistry, electronics, the Indian wedding season, the Christmas buying season in the West, and the time frame when jewelers buy physical gold. That is why gold tends to pick up after August. If you’re going to make a bunch of gold jewelry to have at Christmas, you need the actual gold in your hand in September or October to get it into the stores in December. So, it’s things like that that actually rule, and the rest of it to me is just stories.

TGR: Can we talk about a few mining equities, for example Animas Resources (TSX.V:ANI;ANIMF:OTO) and Rare Element Resources (RES: TSX.V; RRLMF: OTO)?

DB: Two of my favorite companies for sure — I just visited Animas, and the report on that is up on my blog (http://www.nanotechnology.com/blogs/). It was my first mining share recommendation in eight years.

They control a gold mining district in Sonora State in Mexico, which has the second most potential of any property at its current state of development that I’ve seen in my career. My career in the junior mining shares, by the way, started well before October 1981, which is when I started writing The Prospector newsletter.

So, it's the second best thing I’ve seen at this stage of development, and people always say, “Well, what was the first best thing?” And without a doubt the best thing was the Carlin Mining District, which I wrote about in 1982, and, of course, the Carlin is the largest gold producing district in the history of the United States—60 million ounces and counting. I haven’t seen anything like that until what I saw at Animas.

Rare Element (RES blog posting) is in Wyoming and has a gold deposit of some significance, and I say “some significance,” because Newmont is a joint venture partner, and Newmont keeps spending more and more money on it. It is my belief that Newmont doesn’t spend the amounts of money that they’ve spent on Rare Element unless they see a minimum of 5 million ounces of gold.

So, we’re very excited there, and more to the point, they have the largest disseminated rare earth deposit in the United States. And you’ll say, “Well, big deal.” Well, the rare earth deposit there is probably bigger than the gold deposit there. In other words, I’m saying there is a potential for it to be a 5 million gold ounce equivalent in terms of rare earth. And these are stocks with tiny market caps relative to what the market will grant them credit for once we see a little more drilling done.

TGR: And what’s the timing on the announcement of the size of the gold deposit?

DB: Newmont Mining (NYSE: NEM) is trying to get a permit to do drilling on an additional several hundred-acre area on that property, and we don’t expect the permits to be granted until later this year, and the new drilling to start until March/April of next year. So, we don’t expect to see a further big, gold story in Rare Element until 2009, but we think that there will be a significant story to be told on rare earths in 2008.

TGR: You have a new recommendation on Riverside Resources (TSX:RRI). Can you talk about that?

DB: Riverside has a lot of good people involved in it, and they have properties of merit in Mexico. And I think that in this August timeframe they’re a good speculation.

TGR: Just a few more we'd like comments on: Silver Standard (TSX: SSO; Nasdaq: SSRI), Hecla Mining (NYSE: HL), and Silver Wheaton (NYSE: SLW).

DB: Let’s start with Hecla. I started my work in the Coeur d’Alene district in northern Idaho where Hecla had its first major mine. Hecla is being slaughtered with the price of silver. It’s certainly going into the oversold area, and I think it will become deeply oversold before the end of the month and before the 23rd. Hecla is a major silver mining company that’s been decimated, and I think it’s a good representative stock.

The same applies to Silver Standard, which is a much higher priced stock. Again, you’ve got a quality major silver mining company that's been decimated. It’s in that oversold category. Silver Wheaton (SLW) is the same story. I pick the silver stocks on my list basically because they are quality companies that are oversold.

The exception is Orko Silver (TSX.V:OK; ORKOF: OTO). Orko is different. Orko is a true junior silver mining company, and I picked Orko because when you have a junior mining company with 100 million, much less 200 million, ounces of silver, you have to pay attention to it. These things are really, really rare. I don’t think you could name three other companies like Orko just in terms of the likely silver resources. So, that’s different; it’s a junior company that is almost a one-of-a-kind situation, and if you like junior silver stocks, you have to be a buyer of Orko.

TGR: Hecla, Silver Wheaton, and Silver Standard all have the cash to carry them forward?

DB: Yes, we don’t have to worry about those companies going out of business. Companies like Animas and Orko are perfect examples of companies that got cash before the collapse in the market. When Orko did their financing, they financed their company at $1.75 a share. Now you can buy it at a $1.15, so you’re paying a lower price than major financiers of worldwide silver mining paid. It’s a bargain price, and you don’t have to worry about the company going out of business. They have tons of money because they did that financing.

The same case with Animas. Animas did their financings when the top was in place and before the decline. They’re cashed up; they’re in the middle of a 10,000-meter drill program. It will finish in a couple of weeks, and they will start another 10,000-meter drill program in September or October. So, you’re going to have the drill results of 20,000 meters; and you have a company that has the cash to do it, and they don’t have to come to the market looking for money to stay in business or to do that drilling.

TGR: Any other companies you would like to comment on?

DB: Canplats Resources Corp. (TSX:CPQ; CPQRF:OTO) is a very well known speculative story on the TSX Venture. They had one of the biggest rallies in 2008 of any stock on the TSX Venture based on a set of discovery holes. And they’ve really improved the property since, but, of course, ever since those drill results, the stock has gone pretty much straight down. So, we have a great property, with great drill results and major discovery holes. And because Canadians tend to go on vacation in August and selling occurs for a variety of reasons, this stock is a perfect example of what you can buy. It was over $5 a share two months ago, and now you can buy it for $3 a share. That’s great, and it’s a better company today than it was then. When I say a better company, I mean that the project has moved forward; they’re actually doing well.

I will reference two things for your readers; they may not go back this far: take a look at a chart of gold from 1979 to 1982; it is a roller coaster of huge advances and huge declines over a three-year period. And there’s no reason why we’re not in one of those again. Also, take a look at the development of the Hemlo district in Ontario in the early to mid-1980s, and the stocks that came out of the development of the Hemlo.

From the first discovery hole in 1982, 1983, to 1985 when those stocks achieved their high valuations of their discovery holes, you had stocks that ran from 40 cents to $4 and then back to $1.50, and then up to $6, and then back to $2, and then eventually going to $24 or $32. So, in a major discovery it’s not always straight up.

Darrell Brookstein was a leading financier and newsletter writer on junior mining shares 1980 to 2001. His books and newsletters include the classic, "Small Fortunes in Penny Mining Stocks" (with Doug Casey), "The Prospector," "Nanotech Fortunes" and "Best of the NanoWeek. " To receive his free e-mail alerts, request at darrell@nanotechnology.com for Nanotech Insights and/or to darrell@resourcedevelopment.com for Mining Insights. Currently, Managing Director of leading “small” technology financier and advisory focused on The TSX Venture, The Nanotech Company, LLC at http://www.nanotechnology.com/.

After graduating from Duke, he specialized in trading and research related to gold, silver and copper. Named by Doug Casey as “the source for junior mining shares” in his classic, "Crisis Investing," and being the premier U.S. broker in Canadian mining shares in the 1980s, Mr. Brookstein made use of top geologists and geophysical consultants, and developed important relationships with Rick Rule, Robert Friedland, Adrian Day, Bob Bishop, the Coffin Brothers, Brien Lundin and Paul Van Eeden and others 1982 - 1997. During that period he called the Bre-X fraud early and was among first to call the Delgratia fraud. His subscribers made exceptional profits in names like Pennaco Energy, Galactic Resources, Sonora Gold, Cornucopia, Ultra Petroleum, Temple Mountain, Metallica Resources, Wavecrest, Gold Standard and dozens of other names, many of whom were also financial PR clients of his firm.

Animas Update & The Last Mining Stock Opportunity of 2008

2008-07-20T20:16:00.000-07:00

Animas Resources (ANI – ANIMF) Update &
The 2^nd (and last) Great Mining Stock Buying Opportunity of 2008

Mining & Natural Resource Insights #4

July 21, 2008

Dear Mining Stock Investor,

Two weeks ago, (from left to right below) large shareholder, Jeff Phillips, mining web maven, Bob Moriarity of 321Gold.com, yours truly, Animas director, Mark Brown and Animas CEO, Greg McKelvey toured part of Animas’ huge Santa Teresa Gold District in the Sonora desert near Magdalena, Mexico.

Here are the five happy Animas shareholders at dinner in Magdalena the night before our trip to the Santa Teresa District and the old Santa Gertrudis mine.

In 1982, Doug Casey and I re-published the Norman Lamb classic, Small Fortunes in Penny Mining Stocks in time to catch the huge gold and silver mining stock bull market boom, which occurred after gold and silver peaked in 1980/1. Even if you believe that precious metals topped for years to come in 2007, the stocks should resume strong up-trends soon. In fact, this scenario has repeated more than once since 1980. (If you want to prepare for the profit explosion in another, coming boom you might want to read my Nanotech Fortunes!) Be sure to see below where we cover the 2^nd great mining stock opportunity of 2008, which is upon us, now. Remember, to receive Mining Insights regularly and receive timely updates on where to place stop loss orders and when to take profits, please send a note to darrell@resourcedevelopment.com)

While I had studied many reports on the mines and prospects on the now roughly 200 sq mile lands two years ago, helping my friend pick a major project for his early stage company (see my initial recommendation of Animas in February, along with my bona fides), this was my first trip there to kick the dirt. The first drilling on the properties in years is now progressing and we were able to view the #3-hole clean-up and logging. (Greg, Mark and Jeff look on below)

As you know from our quick update, sped out to you on our immediate return, I was much more than impressed, and urged you to pick up shares immediately.

The core from this hole (Even rich ores in this area do not yield visible gold; Bob, Greg and Mark examine with jeweler’s loops. I also found the pitch-black material studded with pyrite over 20 meters, down where they’re looking, to be particularly interesting) can be seen below.

Greg is the penultimate junior gold mining geologist and executive. At home in major companies or meeting daily junior public company demands, he leads the rest of the extraordinary team (see our recommendation link above or http://www.animasresources.com/s/Management.asp). Careful not to mislead or over-promise in any way, he could not disguise his joy and excitement in leading the development phase of a district that by his own admission “they will probably still be drilling decades from now”.

Before it is sent to the assay lab, the core is meticulously split to ensure the ability to re-check the grade of any section, and there is aggressive, detailed maintenance of physical control and accountability of all of the rock, including measurements of length and depth from surface of each intersection. Even the driller has high-tech tools to determine the exact angle of the hole through the earth after the core has been pulled, as that angle can vary from the planned angle for any number of reasons beyond the control of the driller.

Please note the stark differences in the “look” of the rock above from almost one intercept tray to the next. For me, this indicates the radical forces of super-intense heat, steam, pressure and explosive energy that geology perpetrated on this ground, probably multiple times, through an extraordinary geologic history.

I don’t remember the last time I saw anything like this. Again, while I can’t guarantee there is economic gold in this particular core, I can guarantee there is plenty of gold throughout Santa Teresa (we have the surface, soil and chip sample data over huge areas to prove it, as well as the un-mined gold from at least 5 open pit mines that I saw that day).

Here’s a picture of some workers splitting core next to the main administration building. That’s rock being cut with a diamond saw.

Jeff “warned” me that super-sharp VP Exploration, John Wilson was the most “negative” (read: down-to-earth, realistic) member of the team. At the end of the day, I had to disagree. Here’s my take: Some market participants have unrealistically high hopes for the first 4500 meters of drilling (the next 5500 meters should start in August or September), John, Greg and company advisors have some ideas to test with these holes that could dramatically alter how the company and the property are currently viewed. While they could, if born out, multiply by many times the potential of the ground (most knowledgeable observers would probably grant the company somewhere about 1 million ounces currently with the potential to double or triple that). In the 5 previous open-pits, vast stretches of gently rolling land with exceptional, persistent surface anomalous gold, large geochem, strong IP and magnetometer readings and significant alteration maps I saw, I believe there are multiple multi-million ounce targets on the property . . . and we didn’t even step onto the 12 square mile section that Animas believes holds the richest promise!

How big could it be? Greg and John confirmed what I had told my friend 2 years ago. The alteration at Santa Teresa covers a larger area than any of us had seen at any other property. Gold has been literally shot through almost every rock type, at practically every depth from surface, over a huge part of the district (and real depth has never been tested though it is more than highly prospective). It is at least the second best project I have ever seen at its stage of development. What was #1? . . . The Carlin District in 1982, which has produced well over 50 million ounces of gold and still has multi-million ounce, oxide discoveries at surface.

Here’s a view of some typical hilly topography in the area. We were at a couple thousand feet, and mining and development are year-round in this relatively benign climate.

From left: John, Jeff, Bob, Greg and Mark at one of the 5 pits we saw that day.

See below, one of Greg’s pictures at yet another pit. Note the obvious more oxide material on the left and the more sulphide material on the right. Reminder: Previously, none of the sulfide was mined because the oxide was easy and the metallurgy/recovery questions for the sulfide was neither asked nor answered, even though the sulfide gold ore outcrops in many places, including right in the pits!

Most mining camps run from “liveable” to “disasters”. Animas has remodeled and quite nice admin offices, dorms and document and eating areas. Miles and miles of serviceable mining roads meander through the district.

Here below, we are riding up the road to yet another open pit mine on the property. Remember, these mines produced over 600,000 ounces of gold from near surface oxide material. While there have been 225 previous drill holes . . .few if any went deeper than 300 feet! There was no need; there was/is so much gold near surface. However, Greg and John could not rule out the possibility for giant porphyry deposits at Santa Gertrudis. Many of the markers are there.

Greg snaps pic of VP John Wilson explaining a map to Bob and I at the Dora Pit.

Our recommendation (detailed below) is that Animas should be purchased aggressively now, between $1.45 and $1.70 before the first 3-5 drill-hole results are announced in August. If they are at all explosive, the stock will jump above $2.10 quickly and then above $2.75 as the next few holes come later. If they fail to impress, it in no way condemns the project (did I mention this is HUGE property?) and I would strongly speculate that at least a few of the first 10 holes are going to blow people’s minds. More because of what they say about continuity, persistence, depth and expanse than because of necessarily rich, wide intercepts.

This is not a vein or shear system. Gold is “everywhere” over (world-class "large") large areas. “Economic” in Santa Teresa may come to mean many different things over time as many deposit types are discovered. Santa Teresa is near copper (hey, I haven’t even mentioned the 296 sq km Bacanuchi or Shirley Concession that Animas also owns just down the road, which has multiple a major porphyry copper targets) and was originally a tungsten mine, so I would not be surprised if product other than gold is also mined there.

Now, let’s take a look at the 2^nd Great Buying Opportunity for Mining Shares in 2008.

The TSX Venture Exchange Index is at all-time lows (it’s only 2-3 years old) and this milestone is reaching its nadir at the typical seasonal lows for mining shares and gold in mid-July to end of August. The seasonal conforms to real-life factors, not some randomly occurring price cycle. The factors affecting gold price cycles include the Christmas jewelry-buying season, weddings season in India, dental and electronics industries’ purchasing, etc.

1990-1994 was a peculiarly difficult period for junior mining shares, but I haven’t seen a much worse a period than “now” since 1978 when I began to focus on these types of shares. The washout since the 2007 highs has been devastating, and while the first buying opportunity I identified in 2008 was good relative to the prior two years, with hindsight it’s clear, we would have been a bit better off to wait. But by roughly averaging prices then with prices now, I am convinced we will be shown to have made extraordinary purchases, when others were/are throwing the babies out with the bathwater. My old partner, Rick Rule, used to say, “Feed the geese when they’re quacking.” (meaning: sell stock to buyers when the buyers are clamoring to buy)

Well, they certainly are not quacking now. This is the opposite of a great selling opportunity, and, that is, by definition, a great time to buy.

NOW is the time to complete your investments for the rally in mining shares I see lasting for from 15-40 more months, and starting over the next 6 weeks.

We have seen nothing to dissuade us from our expectation of $1038 gold and $25.11 silver minimums, and, based on our proprietary, pattern-recognition trading methodology, we still expect those prices this calendar year or by end of first quarter 2009, the latest. We still believe $1300+ gold and $31+ silver are possible before this bull market ends. Attendant with that, the TSX Venture Exchange Index would go significantly above its all-time high.

Based on 30 years of professional involvement with precious metals mining shares, we believe the second great buying opportunity for 2008 is upon us and is likely to be the most important opportunity of both the last and future 12 months.

If you are technically sophisticated and want to wait for a bottom to be “in place” before making further acquisitions, you have our blessing (FYI – Our educated guess is that the actual bottom occurred on July 17 or will occur at a slightly lower level before August 10). However, for most of our readers, purchases should be made immediately and certainly before August 20.

(Recommendations assume an approximate $200,000 junior mining share portfolio. Adjust appropriately for the size of your portfolio.)

Reminder: The following portfolio was compiled with the specific goal of out-performing the TSX Venture Exchange Index and other junior mining-related indices over any multi-month timeframe: up or down.

Recommendations for junior mining share portfolio (see below for the current portfolio):

Buy 15,725 more ANI – ANIMF at $1.45 – 1.70 for 26,000 total shares

Buy 11,765 more RES – RRLMF at $0.65 - 0.80 for 23,000 total shares

Buy 0 more ITF – FGOVF for 2,760 total shares

Buy 1,340 more PEZ – PEZFF at $1.30 – 1.60 for 3,000 total shares

Buy 0 more ETG – EGI for 2,225 total shares

Buy 1,780 more CPQ – CPQRF at $3.45 – 3.75 for 3,000 total shares

Buy 0 more SMR – SLVXF for 7,500 total shares

Buy 1,575 SVM - SVMFF at $4.90 - $5.30 for 2,500 total shares

Buy 2,620 CDE at $2.32 – 2.52 for 4,500 total shares

Buy 255 SSO – SSRI at $27.25 – 30.25 for 500 total shares

Buy 875 HL at $7.90 – 8.90 for 1,500 total shares

Buy 505 SLW – SLW at $14.00 – 15.00 for 1,000 total shares

Buy 805 SIL at $4.65 – 5.35 for 1,500 total shares

Buy 878 NGD (was MRB) at $7.25 – 8.00 for 2,400 total shares

Buy 7,500 MDW at $1.75 – 1.95 for 7,500 total shares

Buy 12,000 OK – OKOFF at $1.33 – 1.45 for 12,000 total shares

Buy 15,000 RRI – RVSDF at $0.88 – 1.00 for 15,000 total shares

Buy 10,000 ITH – THM at $1.35 – 1.60 for 10,000 total shares

We have extensive experience in designing out-performing indices or portfolios.

(See our Nanotechnology.com Small Technology Index, which has stood the test of time since February 2006, beating all other nanotech stock indices in up and down markets, while beating ALL newsletter writers and fund managers in that “space” - - - except our own trading! See The Small Tech Prospector Archive and Nanotech Insights – to subscribe to Nanotech Insights just send us a note at darrell@nanotechnology.com . . . . .

Again, to receive Mining Insights regularly and receive timely updates on where to place stop loss orders and when to take profits, please send a note to darrell@resourcedevelopment.com.)

Please note: In September or October, we will send an updated Mining Insights that will include precise stop-loss orders, as well as the profit-taking strategy for each of our stocks. I hope that I will be invited to tour Rare Element’s property in that timeframe and will be able to give you a follow-up to that report as well.

Happy Prospecting!

Darrell Brookstein

Disclosures and Disclaimers

GENERAL TERMS*

Disclaimer

The Nanotech Company, LLC, Darrell Brookstein and/or Resource Development, Inc. are not registered investment advisors nor broker/dealers. Readers are advised that the material contained herein should be used solely for informational purposes. The Author does not purport to tell, or suggest to, readers which investment securities they should buy or sell for themselves. Readers should always conduct their own research and due diligence and obtain professional advice before making any investment decision. The Author will not be liable for any loss or damage caused by a reader's reliance on information obtained in any of our newsletters, special reports or on our web site or sent by email or mail. Our readers are solely responsible for their own investment decisions. The information contained herein does not constitute a representation by the publisher or a solicitation for the purchase or sale of securities. Our opinions and analyses are based on sources believed to be reliable and are written in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy or completeness. All information contained in our newsletters or on our web site should be independently verified with the companies mentioned. The editor and publisher are not responsible for typographical or other errors or omissions. There is no guarantee of investment results herein whatsoever, either explicit or implied. Past results are no guarantee of future results or even profitability. Investors are cautioned that they may lose all or a portion of their investment if they make a purchase or short sale in these speculative stocks.

Mining Insight ALERT: Animas Trip Completed

2008-07-15T06:49:00.000-07:00

July 10, 2008

Dear Mining Insight Subscriber,

I have just returned from spending a full day traveling around a small percentage of Animas’ (Symbol ANI in Canada - ANIMF in the U.S.) Santa Teresa District in Sonora State, Mexico.

I will have a detailed report out to you shortly, but given recent gold action and the fact that they are drilling and other newsletter writers are paying attention, there is no reason to delay my bottom-line, follow-on stock market recommendation.

I had the opportunity to spend extensive time with straight-talking CEO, Greg McKelvey, and a few hours around mildly taciturn, but exceptionally competent VP Exploration, John Wilson. We looked at (“reviewed” would be too strong a word, because one cannot see visible gold in this district, and the particular rock that may host economically mineable resources in any particular drill-hole cannot begin to be identified except by the assay lab and subsequent metallurgy results) the entire core of the 3^rd drill hole from the recently begun drill program. We also spent time overviewing their voluminous electronic data that allows them to easily overlay EM, IP, alteration, drill hole, soil anomaly (and MUCH more) maps to dig more deeply into the “story” that the geology and district are telling about where the possible economic gold resides (gold itself is everywhere, in virtually every rock-type on the huge Santa Teresa District).

Currently trading in the $1.35 – 1.50 range, I strongly encourage you to get your full position in Animas, NOW. (Again, expect a more complete report within 10 days). Per previous suggestion you put 15% of your total funds dedicated to speculative precious metals mining shares into this one stock, I am more confident that 15% is fine and 20% may be better. Expect longer-term volatility, but I encourage you not to wait until the first holes are announced in August (or even until the market begins to anticipate their release). No guarrantees, and I was certainly not lead to any excessive optimism by anything said by officers or directors of the company (in fact, I found them overtly cautious), but, having decades of history visiting mines, development properties and prospects, I believe the risks are to the upside.

This is unique in my experience, and I wrote extensively and enthusiastically about the juniors (including Barrick) involved in the Carlin in early 1982 and the Hughes-Lang Group and others in the Hemlo in 1983 in my Prospector monthly letter. The Animas situation could be more exceptional; they control THE WHOLE district.

PS – the next letter will also contain DETAILS and specific dates of the 2^nd and last great buying opportunity of 2008 (and perhaps the last great buying opportunity for the next 24 months).

Happy Prospecting!

Darrell Brookstein

Disclosures and Disclaimers

GENERAL TERMS*

Disclaimer

Nanotech Insights #12

2008-06-25T14:52:00.000-07:00

June 10, 2008

Those of you who followed our trades achieved fantastic profits in our recent stock picks of the last few months. These outcomes continued our long trend that began in February of 2006 of beating the appropriate indices (PXN and The Nanotechnology.com Small Tech Index) by significant margins in up, down and sideways markets (mostly down over those 27 months).

You would have bought CHRT at $5.58 and sold it at $6.63 for an 18.8% profit in about a month.

You would have bought ADI at $29.75 and sold it for $35.70 for a 20% gain in the same timeframe.

Lastly, after buying CCMP $31.87 you would have sold it on our advice at $37.25 for a similar gain of 16.9%.

These profits were booked while the indices were up only 1 or 2%.

We believe these extraordinary profits (please revisit Insights #7-11 as well as our Small Tech Prospector archive to see the history and each individual trade) combined with extremely low risk, relative to the market, makes our continuing case for hedge fund management skill.

We credit our distinctive and unique combination of a proprietary pattern-recognition trading methodology with the scientific and engineering expertise of our junior scientists and Scientific Advisory Board (SAB).

I would like to take this opportunity to publicly thank each of them for their continuing support over the last 2 to 6 years and for what we believe will be an exciting, profitable future.

Sincere “Thank you” to the SAB led by my partner and co-founder, Erkki Ruoslahti, M.D., Ph.D. and including other eminent, internationally renowned scientists from diverse, “small tech” disciplines, Reza Ghadiri, Ph.D., Sangeeta Bhatia, M.D. Ph.D., Pulickel Ajayan, Ph.D. and Dan Morse, Ph.D.

Thanks also to the young scientists who have helped us identify winners and keep us away from losers over the last four years and into the future, especially Albert Lin, Ph.D. from UCSD, and Arya Kumar, Ph.D. from Case Western Reserve, Todd Harris, Ph.D. from MIT/Harvard and Geoff von Maltzahn from MIT/Harvard.

At the end of 2007, I wrote:

“We see the stock market (as defined by the SPY) as trapped in a wide, multi-month trading-range between 140.65 and 157.55. Until the SPY has two consecutive closes above or below those numbers, the market is likely to do very little. Once the two consecutive closes occur, look for fireworks. If the market climbs the wall of worry out the top we’ll likely see 167.50+ fast. If, on the other hand, the downward water-drop-torture that began in mid-October continues and we break to the downside of the range, a true Bear Market will take the bottom down below 126. Watch those exact, defining trading-range numbers closely; given how they were generated (with my most important, proprietary topping and bottoming patterns invoked), they are as close to a sure thing as you get in the markets. Small & advanced tech stocks are more inclined to decline.”

If you check the charts, you’ll find that the SPY had the two consecutive closes below 140.65, crashed sharply lower quickly, and then made a tentative double- bottom at 126 (not going below, yet) in the Jan-March time-frame.

Quick comments on the U.S. economy and stock market for the rest of 2008:

A typical to severe recession started between November of 2007 and March of 2008. Expect the world to join us in this view as the numbers become clear between August 1 and November 30, 2008.
The housing recession will begin to re-accelerate to the downside in the last quarter of 2008 as the real culprits (not sub-prime) just begin to come home to roost: prime, option-ARM mortgages and home equity loans.
Look for the SPY to make another interim bottom between 131.50 and 126.00 by August 15. After moving sideways to higher for 1-3 months, look for the market to crash below 117.50 before finding its eventual, long-term bottom.

In what state do we see “small” & advanced technology stocks and investing?

As we have been saying since 2003, more companies will find themselves with significant development and financial issues, combined with imposing investment needs over the next 3 years, than at any time in the last 8 years or, likely, any time beyond 2011.

The Nanotech Company, LLC (contact: Info@Nanotechnology.com) will shortly “daylight” a well-capitalized merchant bank of another name, focused on financing and shepherding “small” & advanced technology companies as well as the financial and fund companies that serve investors in those technologies. The Nanotech Company, LLC and a small group of sophisticated investors, scientists, engineers and financial professionals will own the firm. Combining critical, in-depth knowledge of private and public company finance, deep scientific and technical expertise and vital insight into the commercialization path of cutting-edge technologies, we intend to build the merchant bank into the leading, most profitable company in our “space” for decades to come.

Nanotech Insights #11

2008-05-20T07:45:00.000-07:00

May 12, 2008

Dear Small & Advanced Technology Investor,

Surprise!

Because the stocks we recommended over the last month have delivered such incredible profits, I realized I was obliged to deliver two more Nanotech Insights. One to tighten stops and give better guidance on exiting these last trades (this one), and one to wrap up the last five years of writing on these subjects and take credit for the profits we’ve delivered and more important the losses we’ve saved our readers from. (Of course, we will detail our biggest mistakes as well, though there truly have been only a few amongst the dozens of good to great calls.)

Overall, we remain nervous bulls (much more “nervous” today), and still expect the market to top before June 10. Furthermore, the May 1 SPY top at 142.37 may very well hold as the top we said might occur within a week of the last Insights. Please note we have always indicated that 144 - 148 area would be a very tough hurdle and little time if any would likely be spent above it.

“Sell in May and go away”? This year, you bet!

The NGEN would have been sold at $0.40 for a small loss. On CHRT, we would raise the protective stop to $5.99 and raise it 10 cents/day until stopped out or the close on May 19, whichever comes first. KOPN would have been sold at $2.94 for a nice profit.

ADI – We would raise the protective stop to $33.24 and raise the stop 25cents/day until stopped out or the close on May 19, whichever comes first.

MTSC – would have been sold at $33.94 for a good profit.

CCMP – We would raise the protective stop to $34.99 and raise the stop 25cents/day until stopped out or the close on May 19, whichever comes first.

ALTR – would have been sold at $20.98 for a great profit.

Best regards,

Darrell Brookstein

darrell@Nanotechnology.com

Disclosures and Disclaimers

GENERAL TERMS*

http://www.traders.com/Documentation/RESource_docs/Glossary/glossary.html

Disclaimer

Nanotech Insights #10

2008-05-08T10:35:00.000-07:00

Nanotech Insights #10

April 29, 2008

Dear Small & Advanced Technology Investor,

“When you get $12 for soybeans and $6 for corn and you see that steel and oil are soaring . . . yes, there is a lot of potential inflation down the road” . . . . further, commenting on GDP growth of anything under 1%/year when population growth is about 1%/year . . . “Yeah, I think we are in a recession.”

Warren Buffett – CNBC Interview: April 28, 2008

We concur.

That’s why the next 2-3 years will be so exciting for establishing long-term investment positions and joining with great scientific, technical and executive teams to build profitable corporate outcomes.

This is probably our last Nanotech Insights. They began in October of 2007 and were meant to explore the state of early 2008 nanotech investing. You can find them archived on BlogNano’s “previous posts” at http://www.nanotechnology.com/blogs/blognano/index.html. The buying opportunity period we have been talking about for nearly 5 years is upon us. Writing these Insights has been enjoyable, but we have to focus our efforts and attention on serving our corporate finance and investor clients, now.

Now, let’s orient via the overall stock market: We remain nervous bulls, but expect the market to top before June 10 (the Dow 30 remains the strongest index) and possibly before the end of next week. From there, we look for a continuation of the bear market to important lows sometime between September 2008 and December 2009.

Our records show the last half position of BNT was sold at $15.29 for a substantial, short-term profit.

TINY strengthened as we predicted. We would cancel our unfilled orders in TGAL and NVAX.

We were wrong on NVEC, which rallied to 32, while SMMX, KEI, SRDX, BPAX and FLML all performed as expected. We have no opinion on these now.

The “nimble” among you would have bought NGEN at $0.43 (we would carry a stop loss at 0.35 and raise that 1 cent/day until stopped out). You would have bought CHRT at $5.58 (we would carry a stop loss at $5.40 and raise it 2 cents/day until stopped out). You would have bought KOPN at $2.64 (we would carry a protective stop at 2.69 and raise it 3 cents/day until stopped out).

Obviously, we are not so excited by the illiquid stocks in the paragraph above, and given our views on the stock market, this seems a logical, lowered risk, way to exit.

Specific instructions were given for the semiconductor stocks below, and you can see what we believe to be superior results for yourself.

I hope that you made the profits!

TSRA – We would have bought it at $20 and sold for a loss at $19.24.

FORM – We would have bought it at $19.10 and sold for a small loss at $18.64.

ADI – We would have bought it at $29.75 and would carry with a protective stop at $31.39 and raise the stop 10 cents/day until stopped out for a good profit.

MTSC – We would have bought it at $31.01 and would carry a protective stop at 33.64 and raise the stop 10 cents/day until stopped out for another good profit.

CCMP – We would have bought at $31.87 and would carry a protective stop at $33.09 and raise the stop 10 cents/day until stopped out for another good one.

ALTR – We would have bought at $18.10 and would carry a protective stop at 20.88 and raise the stop 10 cents/day until stopped out for a great profit.

XLNX – We would have bought it at $23.11 and sold it for a tiny loss at $22.89.

Wow . . 3 small losers vs. 4 giant winners . . . Our public record of success since March 2006 continues, and we are very happy with our proprietary stock trading technology (especially when informed by our in-house, scientific, technical and engineering expertise).

The time has come to close this series of communications with our closest subscribers. While you Insights readers are a small and rather special, self-selected group within our more than 25,000 Nanotechnology.com subscribers, the time for action has come. Our team’s thoughts about the markets, business model, investment philosophy and basic premises are well known. We must now focus on our clientele. Investments must be thoroughly scrutinized and made; extensive scientific, technical and business due-diligence must be performed, board direction, deep consultation and business advisory services provided. Capital must be raised. Our corporate and individual clients deserve The Nanotech Company, LLC and its Scientific Advisory Board’s first and best, undistracted advice.

Again: This is probably our last Nanotech Insights. They began in October of 2007 and were meant to explore the state of early 2008 nanotech investing. You can find them archived on BlogNano’s “previous posts” at http://www.nanotechnology.com/blogs/blognano/index.html. The buying opportunity period we have been talking about for nearly 5 years is upon us. Writing these Insights has been enjoyable, but we have to focus our efforts and attention on serving our corporate finance and investor clients, now.

Best regards and wishes of success, health and prosperity for you and yours,

Darrell Brookstein

darrell@Nanotechnology.com

Disclosures and Disclaimers

GENERAL TERMS*

http://www.traders.com/Documentation/RESource_docs/Glossary/glossary.html

Disclaimer

Nanotech Insights #9

2008-04-28T09:32:00.000-07:00

April 15, 2008

edited for website posting

Dear Small & Advanced Technology Investor,

60 Minutes did a very interesting take on nanoparticles used in cancer therapeutics: a technology with which we are quite familiar. You can view it now if you missed it and read the accompanying article here: http://www.cbsnews.com/stories/2008/04/10/60minutes/main4006951_page3.shtml

The changes in science and technology are coming so fast that one noted scientist recently stated. “things change faster than you can publish them.”

Let this be “a word to the wise”, when, as an investor, you think you are on to something unique. Finding a “robust” technology, one that keeps working efficiently and economically, no matter what you throw at it is usually good enough, if you have the right team.

Despite the neat 60 Minutes video above, we don’t particularly like the biotech/medical side of “small tech” investments and stocks at current levels and in this timeframe. The price action is not good, especially compared to the semiconductor side. (see below)

The U.S. economy is now faced with choices of a man atop a burning, 2-story building. He can make a terrible choice with known consequences by jumping and breaking his legs (inflate, regulate and bailout which will cause significant and harmful, but fairly well understood consequences), or he can face the unknown and wait or run into the fire hoping for it to be put out before reaching him or finding an opening to an escape. The results would likely be catastrophic, but he might survive (this equates to doing more tinkering around the edges or letting the weak markets crash and hoping for positive results - the outcomes are unknown but could range from all kinds of “nastiness” like Japan in the early 1990’s and forward, to Germany’s hyperinflation prior to World War II).

Luckily, as of now, we’re only on a 2-story building! Unfortunately, that could change, and many stories added, if we continue down the path on which we have been.

Now, let’s orient via the overall stock market: While we remain above the important 130.50 number in SPY we mentioned last month and the ALL important 125.99 in the SPY, the 136-138 area proved the resistance we thought it would be and we’re well off that.

If you have been following our recommendations, you are long only half of your position in BNT. With very good profits on the first half, we would raise our stop on the second half to an even better $15.29, and let that take us out, or the takeover itself will; whichever comes first. (which we luckily caught before the takeover announcement by TEVA)

We had a loss in AATI.

We have taken good profits in ADI.

We took good profits in ALTR.

We took a small loss in CCMP.

We made a profit in FORM.

We had a loss in MTSC.

We made a very good profit XLNX.

Nothing done in IVGN and we would cancel that order.

Overall, a record of which we are quietly proud, especially given the lack of trends in the markets since we made these trades.

In addition: we cautioned holders of PXN, TINY, saying (on March 25^th) that they were running up to important resistance over the next couple of days to couple of weeks, and that we would use that opportunity to sell. ACTL, we said, was a very strong stock, but looked “toppy” at then current levels, and one should look out for a sharp correction coming soon.

We nailed all three of those calls:

PXN topped at $14.91 nine trading days later. It then dropped to 13.75.

TINY topped at $8.44 eight trading days after the 25^th and dropped to $7.32!

ACTL topped at $15.70 five days later and dropped to 14.45.

Stay away from or short PXN and ACTL; but we have an opinion change on TINY, and now think it is looking constructive. We would not sell it here, and are actually looking for a buying entry point.

Here are some stocks in our universe to sell, avoid or short at current levels:

NVEC

SMMX

KEI

SRDX

BPAX

FLML

Here are some desperately illiquid stocks that we “like” above current levels if they can break there, however are difficult to recommend to anyone but the very nimble, because they hardly trade:

TGAL at $5.01
NGEN at $0.43
NVAX at $2.61
CHRT at $5.54
KOPN at $2.64

Here are some of those “small technology” semiconductor-related stocks we like and can be bought with very tight stop losses (a lowered risk strategy we really like and often pursue). Tread gingerly here. The overall market is no raging bull, and you do not want to buy any of these that trades through its stop loss first.

TSRA – We like it between $19.75 - $20.25 while carrying a stop loss at $19.24.

FORM – We would buy at $19 – 19.20 and carry a close stop at $18.64.

ADI – Can be bought below $29.85 and carry with a stop loss at $29.49.

MTSC – We would buy it if it can break above $31; then we would carry a stop loss at 30.29.

CCMP – Only if it goes above $31.80; then a stop loss at $30.99.

ALTR – We would buy between $18.05 and $18.15 with $17.74 stop loss.

XLNX – We like it between $23.10 and $23.30 while carrying a stop loss at 22.89.

Darrell Brookstein

darrell@Nanotechnology.com

Disclosures and Disclaimers

GENERAL TERMS*

http://www.traders.com/Documentation/RESource_docs/Glossary/glossary.html

Disclaimer

Mining with a Nanotechnology Twist

2008-04-23T11:03:00.000-07:00

Rare Element Resources Ltd: Strong Recommendation & the Second Way to “Skin a Cat” with Mining Share Profits

April 21, 2008

Dear Mining Insights Subscribers,

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business.

However, Bob is not the only “believer”.

Newmont Mining Corporation (NEM - http://www.newmont.com/en/index.asp), one of the largest gold mining companies in the world, is a “believer” too, and that’s a pretty good couple of “opinion makers”.

By the way: if you want to receive my periodic updates on this and other exciting mining and natural resource shares, including my 10 Stocks to Buy at the End of April Tax Sell-off and Stocks for the 2^ndGreat Buying Opportunity of 2008 send me a note at:

Darrell Brookstein

darrell@ResourceDevelopment.com

When I wrote our first gold mining stock recommendation in 8 years in February (http://www.nanotechnology.com/blogs/blognano/2008/02/gold-mining-stock-for-nano-investors.html), I should have noted that my identification and recommendation of Animas Resources (ANI; ANIMF) at US $1.34 was based on one of several ways to “skin a cat” (make a huge profit) in mining investment.

Two of our favorite ways are to:

Identify value in a property or district before others do. (That’s Animas!)

Identify value in a property or district that others have already identified before the market monetizes it. (That’s Rare Element! . . . RES, for short, from now on)

Bob Bishop is/was not the only special junior gold stock newsletter writer. There are several. However, those not in that special group can do a reasonable to very good job assessing the value of a deposit (especially once it’s been delineated), but they typically have little or no experience valuing a mining company or stock, and even fewer have any ability to trade or understand the convoluted logic of the junior stock market. I have several decades’ long experience doing all three, and you are invited to review my relevant resume at the end of the Animas recommendation whose link is above.

And we’re certainly not even the second to recommend RES. Sharp friend, Brien Lundin of The Gold Newsletter, perceptive Lawrence Roulston of Resource Opportunities and up-and-comer Kevin Graham of grahamanalytics.com all wrote about Rare Element before us.

It bothers us not at all. Our goal is simply to make profit-exploding money for our readers.

In the early 1980s, when the Hemlo rush was starting, some of the district stocks ran 6:1 and 8:1 in a period of weeks and I thought long and hard about recommending some $6 stock that had been 75 cents a few months before. I’m glad we stuck to our valuation discipline and ignored the “top callers”. I believe we bought in and took profits about a year later above $25!

RES was priced significantly higher last summer; now, at $0.85 - $1.00 . . . much better! We began following the company more than a year ago, but only recently began recommending it to others. In our opinion, the price and timing are screaming right now. The catalyst or “trigger” for higher valuation is eminent. (see below)

Please note: Rare Element is an extremely illiquid stock at current levels ($0.80 - $1.00), and hardly any stock is available in that range; you will have to be very careful. Longer-term, we believe buying prices at $1.65 will look like bargains, and we expect a few natural sellers to appear between $1.25 and $1.50, but try to accumulate below that range if possible. We are counting on some liquidity coming into the market so you should not have to chase the stock now for three main reasons: 1. Canadian taxpayers will still be selling prior to April 30. 2. a recent financing is recently free-trading and at least another few weeks should provide a transfer from weak holders to stronger holders (like you), and 3. short term weakness in precious metals continues to back up our premise that the first major buying opportunity for junior mining shares for 2008 is the 6 weeks commencing April 1, 2008. (We will have a special report on the 2^nd “Great Buying Opportunity” when it arrives later this year.)

Rare Element Resources Ltd: RES – TSX.V (RRLMF- U.S.)

Corporate Website: http://www.rareelementresources.com/s/Home.asp

Corporate Profile: http://www.24hgold.com/viewcompanyarticle.aspx?langue=en&articleid=215836&ref='%20new%20corporate%20profile

Shares – app. 23 million

Fully diluted – app. 26 million

Approximate price range March 18 - April 18 2008 – US $ 0.80 - $1.05

Approximate fully diluted market capitalization – US $23M

Recommendation: Accumulate and “buy” recommendation for speculative accounts at the recent range - $0.80 – 1.20 – This is an admittedly wide range; sophisticated investors, trying to accumulate a large position, should tread gently. However, we believe the chance for substantial gains in our indicated timeframe will payoff with significant returns for smaller investors whether they pay $0.90 or $1.30. We do not expect to see a significant number of shares available under $1.20; the stock appears very tight to us and at current level, sellers seem scarce.

Target: 2.0+ million ounces of gold to RES’s credit (app. 30% of project with Newmont; based on 6+ million ounces “drill indicated”) within 30 months. In addition, we look for a 2.0 million ounces of gold equivalent to RES’ credit in rare earth elements (REEs), which Newmont does not share. That’s 4.0+ million gold-equivalent ounces.

Potential valuation at exit based on 30 million shares and $150/drill indicated ounce (based on $850/oz gold): We see possible acquisition of the Rare Element’s share of the gold asset by Newmont for $225M - $350M, while RES’ rare element asset at the same mine driving RES to an additional $375M valuation: Total valuation: app. $600 – 700M within 40 months indicating a potential share price of above $20.

Rare Element Resources has two exciting opportunities on its Bear Lodge Property in Wyoming—gold and rare earths. Gold exploration is being conducted by Newmont Mining under the terms of a joint venture agreement (65-80/35-20 Newmont/RES). Rare earths, which are significant and occur persistently and are disseminated within the same ore bodies, are reserved for Rare Element (100%) and are being explored and evaluated by the Company.

What is the catalyst or “trigger” that we see impacting stock valuation, soon?

Three elements are coming together over the next two to four months:

The company has not done a good job of communicating the value of its rare earth (REE) deposit in the past. We believe this will change dramatically soon with more information from the company by way of press releases and their investor relations and financial PR program because,
RES just received a gigantic GIS database (Geographic Information System) on the project from Newmont, and that will help them with their own drilling planned this year to expand development of the REE asset, and
Leading metallurgical consultants, Mountain States, are due with a report within 8 weeks on REE recovery issues, which will be instrumental in assessing the values per ton that might be recoverable in a live mining operation.

We believe we are ahead of the curve and the market in understanding the value to RES shareholders of this VERY SIGNIFICANT REE asset.

I don’t need to explain the value of gold to you. However, as Managing Director of the investment firm, The Nanotech Company, LLC, as well as www.Nanotechnology.com, I am uniquely positioned to tell you that rare earth elements have and will have TREMENDOUS impact as nanotech and many other advanced technologies influence every part of our lives and industries over the next few decades. To quote from Wikipedia – “Rare earth elements are incorporated into many modern technological devices, including superconductors, miniaturized magnets, electronic polishers, refining catalysts and hybrid car components. ^[4] Rare earth ions are used as the active ions in luminescent materials used in optoelectronics applications, most notably the Nd:YAG laser. Phosphors with rare earth dopants are also widely used in cathode ray tube technology such as television sets.”

More: on our site (www.Nanotechnology.com) we find 13 separate articles which mention the rare earth elements in uses related to nanotechnology alone (Become your own “expert” and see this page for links to the articles): http://nanotechnology.com/news/index.php?search=rare+earth&p=&x=0&y=0

Reading minds is impossible, but understanding how large international gold miners develop assets and mines is no secret. That Newmont seems to have exceeded its contractual obligations to develop the property at nearly every opportunity is very significant. One might think that $1 or 2M much less $300,000 is “nothing” to a major mining company to spend on a project joint ventured with a junior. Wrong!

Majors are tightfisted. They do not waste time or money except when necessary and no career-minded big company geologist wants to be overseeing development of anything that won’t likely be developed into a major mine.

They only spend more in a year, bring in more than the minimum drill rigs, do more than required by their written commitment when they see benefit to doing that. That means when they see something that grabs their attention.

Anymore, 5 to 7.5 million ounces of gold is THE MINIMUM starting point to develop and build a mine. That’s the minimum to “grab their attention”. Our independent contacts believe Newmont already “sees” 5 million plus ounces in the few, widely spaced holes they have drilled. Here are the two possible headlines we might be looking for sometime over the next 24 – 40 months:

“Newmont says Sundance Project (name of the Bear Lodge property joint venture) to be Developed with Potential 7.5+ M Ounces of Gold and Excellent Potential for Additional Deposits.”

“Rare Element says Bear Lodge’s 100%-owned Rare Earth Elements Disseminated Deposit Hosts Mineable Reserves of 2+M Gold-Equivalent Ounces in REEs.”

Let’s get a grip on REEs, because as you can see above, we’re saying there is a reasonable chance that the REEs, alone, constitute a very significant asset for RES shareholders.

Rare Earths

In addition to the gold mineralization, Bear Lodge hosts “one of the largest occurrences of disseminated rare earths in North America”, according to the US Geological Survey. All of the important rare-earth mineralization in the Bear Lodge Mountains is on RES’s claims. The RES exploration program conducted from 2004 through 2008 confirms previous drilling results, expands the rare-earth mineralized zone and includes metallurgical studies. The Company’s near-term 2008 goals are to complete the ongoing metallurgical testwork and to estimate a resource for the rare-earth mineralization, based on 16 historical drill holes plus 8 more recent holes drilled by Rare Element.

According to folks close to the company, the Bull Hill rare-earths target area, where most of the REEs are located, is located in the north-central core of the intrusive complex adjacent to several gold targets, including Carbon, Taylor, and Smith. Rare-earth mineralization is found in well-defined near-surface oxidized dikes and deeper carbonatite dikes within the Bull Hill breccia. Drill holes in the Bull Hill target have penetrated a dike swarm including one main dike ranging up to 15 m (50 ft) in true thickness. The dikes have been demonstrated to pinch and swell in both strike and dip directions and are open in these directions. The dike swarm has been traced with drill holes up to 300 m (1000 ft) along strike and 300 m (1000 ft) down dip.

Historical resources at Bull Hill, estimated by Hecla Mining Company in 1991, are approximately 4.3 million tons averaging 3.8% rare-earth oxides (REO)(non-compliant with NI 43-101 standards). The gross metal value of the mineralized material, not taking into account metallurgical recovery, is approximately $400 per ton (hey, that’s close to ½ oz/ton gold rock!). The historical resource estimate was based on 16 core holes, drilled by Hecla, Molycorp and Duval, that tested the swarm of carbonatite dikes. Rare Element has drilled another 8 core holes into the same general area confirming the historical drilling results. Based on nearby target areas with significant REE mineralization, additional potential resources are likely to be found in and around Bull Hill. A reasonable goal for exploration is to define a deposit of 10 to 20 million tonnes ranging between 3 and 5% REO. At $400 per ton, a potential resource of 10 million tons or more has a huge value, and this is also true if recoveries would be as low as 50%.

Therefore, actually, the potential rare earth’s value rivals OR EXCEEDS the potential value of RES’s portion of the gold deposits.

Reminder: Rare Element Resources, not Newmont, owns 100% of the rare-earth deposits on the entire Bear Lodge property. They are not part of the Sundance Joint Venture.

Rare Element’s REE deposit is one of the largest disseminated REE deposits in the world.

But, what the heck are “rare-earths”?

Some links for those who wish to dig deeper:

http://en.wikipedia.org/wiki/Rare_earth_elements

http://www.rareelementresources.com/s/Overview.asp

http://www.rareelementresources.com/s/Uses.asp

Rare-earths are the 15 lanthanide-series elements. They are called “the catalysts for high-tech living”. Bear Lodge has mostly the light rare-earths including within the REE component approximately 46% lanthanum, 32% cerium, 4% praseodymium, 14% neodymium and 1% samarium, in the non-oxide material.

China produces most of the world’s rare earths, but Mountain Pass in California has re-opened, and Mount Weld in Australia is being developed.

There are many uses for rare-earths, such as catalysts, super magnets, metal alloys, phosphors, magnetic refrigeration, most electronic devices and the electronic components of hybrid cars.

Before getting to the plan, and hearing the GOLD part of the story (Reminder: there is a significant gold deposit and perhaps multiple deposits here), look at the all-important management team.

Management

The deep experience of the management team of Rare Element Resources includes senior positions with Teck Cominco Ltd., Miramar Mining Corporation, Phelps Dodge and other successful resource companies. We strongly believe that there is significant benefit for a junior dealing with a major partner to have core management with significant major mining company experience. RES finds itself in this situation. Many juniors that we have had experience with in the past simply assume (to their and their shareholders future, great displeasure) that “build it and they will come” applies to their major partner. They feel if the gold, silver or copper is THERE, the major will recognize it and simply hand over a pile of cash (or shares). Nothing could be further from the truth. Sophisticated negotiation, valuation models, psychology of the large company, office politics and big-picture corporate planning all come into play. Woe to the junior mining executive or geologist, no matter how bright, who doesn’t get it all.

We feel the Rare Element team “gets it”.

Below are a few, but by no means all, of the important people who help run this amazing junior.

Donald E. Ranta, Ph.D., P.Geo. - President, CEO & Director

Drawn to the company less than a year ago because of the opportunity he saw for association with another great discovery and his stock options, Don Ranta is an exploration and evaluation executive experienced in planning, implementing, and directing successful mineral exploration and acquisitions throughout the world. He has led innovative exploration efforts resulting in the discovery of several major deposits including Montana’s McDonald gold (13 + million ounces: you’ve heard of The Seven-Up Pete?) and Mexico’s Santa Gertrudis gold ore bodies (See Animas Resources - www.animasresources.com/s/Home.asp). He contributed to the discovery of the famed Sleeper deposit (the richest Nevada deposit yet discovered and one of the lowest cost producers, some veins running over 100 ounces gold per ton). He serves as a director of Animas Resources Ltd. Dr. Ranta was Vice President of Exploration at Echo Bay Mines and Manager/Vice President for North American Exploration at Phelps Dodge. He holds a Ph.D. in geology/geological engineering from the Colorado School of Mines, an MS from the Mackay School of Mines, and a BS from the University of Minnesota.

James Clark, Ph.D, L.Geo. - Vice President, Exploration

Jim Clark brings 30 years of mining industry experience having planned, organized, and conducted all aspects of project exploration and target generation work as an employee and a consultant for Molycorp, Hecla and others. Dr. Clark has extensive supervisory and project management experience in exploration programs for industrial minerals, precious and base metals, and specialty metals. He was senior geologist, then, exploration supervisor, for Hecla from 1986 -- 1992, played a key role in identifying Rare Element Resources’ current Bear Lodge REE resource and the property’s underlying gold mineralization potential. (Meaning, he knows this property AND its REE potential as well or better than anyone alive does.) His consulting firm provides petrographic and microanalytical services to Barrick, Newmont, Hecla, AngloGold, CVRD and others. He hold s a Ph.D. in volcanic geology and igneous petrology from the University of Oregon, an M.S. from Oregon State University and a B.S. from Ohio State.

M. Norman Anderson, P.Eng. - Director

Since 1987, Mr. Anderson has been an active consultant, with a focus on due diligence and evaluation for financial institutions and mining companies. Prior to this, he worked for Cominco, during which time he spent a four-year period in an executive position with Amax. In 1978, he became President and Chief Operating Officer, and in 1980, he assumed complete responsibility for Cominco’s business as Chairman and Chief Executive Officer. Mr. Anderson brings a wealth of experience in specialized metals.

Norman Burmeister, P.Eng. - Director

Mr. Burmeister graduated from the Colorado School of Mines in Mining Geology and has over 40 years of experience in the mining industry. He was Chief Geologist for Silver Standard Resources from 1965 to 1978. In 1980, he founded Bull Run Corporation and served as its Chairman and CEO until 1992, finding, exploring and developing a significant gold producer in Nevada. Bull Run was the second mining stock I ever recommended (late 1981), and we made a very large profit!

Gregory McKelvey, MS Geol - Director

Mr. McKelvey has more than forty years of extensive, international experience in Latin America, Africa, and Europe in expanding responsibilities for significant mining companies such as Kennecott, Cominco, Homestake and Phelps Dodge. He is currently President of Animas Resources Ltd.

Gold— The Newmont Joint Venture

Newmont Mining and Rare Element Resources created the “Sundance” joint venture on the Bear Lodge Property in 2006. Newmont has the right to finance the first five years of exploration by spending $5 million to earn 65%, and has the opportunity to earn another 15% by completing a positive feasibility study with no expenditures by RES.

The Property is located in the Bear Lodge Mountains of northeastern Wyoming, near the western end of the northern Black Hills gold belt located in South Dakota and Wyoming. Gold mineralization in the belt is associated with both Tertiary igneous complexes, containing approximately 7 million oz, and the Precambrian Homestake deposit that has produced more than 40 million oz. This is a prolific gold trend!

The Bear Lodge district is very similar to the more deeply eroded Cripple Creek complex in Colorado. The Cripple Creek mining district hosts deposits. Total gold production plus resources for the district are now more than 30 million ounces. Gold occurs primarily in narrow vein sets over a vertical range in excess of 1,000 meters; and economically important gold mineralization also is present near surface in low-grade, bulk-tonnage deposits currently being mined in brecciated intrusive rocks.

The Bear Lodge property has many widespread gold occurrences and excellent potential for economic gold deposits in multiple targets.

These targets include both near-surface low-grade deposits, similar to those at Cripple Creek, and also potential high-grade gold mineralization at depth. Preliminary drilling of 26 holes by Newmont plus earlier holes by others suggests that potential inferred resources of at least 5 million oz in three deposits have been tested with widely spaced holes. A reasonable goal for the exploration program is to find total resources of approximately 7 to 12 million oz of gold contained within 250 to 400 million tonnes averaging between 0.4 and 1.0 gram of gold per tonne. (Please do not misinterpret the low grade as indicative of commercial difficulty – costs of production are the other half of the equation and, given that much potential ore actually starts at surface, there is every reason to believe that gold mining at Bear Lodge is exciting, even at dramatically lower gold prices.) The mineral system also has excellent potential for Cripple Creek-type high-grade gold mineralization at depth. One of the goals of the program has to be to find a surface deposit with grades of 1 gram per tonne or better so mine capital investment can be paid back quickly. Assuming the goals above are achieved, Rare Element Resources’ 20-35% portion of the potential total gold resource could be a minimum of 1.4 million oz and as much as 4 million oz of gold.

Drilling has been constrained within previously permitted drill sites and a total disturbed area of five acres. Many exploration targets having excellent potential for gold deposits have been off limits to any new roads or drill sites. A new Plan of Operations should be approved by the US Forest Service in the second half of 2008 allowing hundreds of drill sites on up to 200 acres of disturbance and providing great flexibility (see further comment below).

Highlights of the 26 holes drilled by Newmont into the Carbon and Taylor gold targets during 2006 and 2007 show long intercepts of continuous low-grade gold mineralization, many beginning at the surface and extending to depth. This is typical of the near-surface low-grade gold mineralization being discovered in the Sundance venture area and similar to that at Cripple Creek. Mineralization remains open in several directions in all of the gold targets.

Advantages provided to Rare Element Resources by the Sundance gold venture include:

· No expense or substantial effort required by Company personnel;

· Full financing for the first five years;

· Project management and technical expertise provided by Newmont;

· Added credibility of working with a major gold company;

· Potential to be a substantial gold producer as a junior partner.

The gold exploration venture with Newmont is the best way to reap full advantage from the Bear Lodge gold potential, and Rare Element Resources will continue evaluating the potential of its rare-earths deposits.

Rare Element Resources’ tight capital structure is very favorable and should be maintained (currently only 23 million shares outstanding, 26 million fully diluted and cash on hand is about US$ 2.5 million). It would be “natural” for the company to pull a major or an Asian entity that desperately needs rare earth element “feedstock” into a joint venture on the REE side of the Bear Lodge asset. If successful in making such a partnership, the company would probably need to raise no more than a couple million dollars or so over the next 18 months, and, even that, at hopefully well north of $2/share. In creating another Newmont-like deal (probably on even better terms), the Asian conglomerate or major would bear the brunt of development expenses and be put on a short lease to produce by RES. This would greatly benefit existing shareholders and those entering in the current range.

Given that the GOLD IS THERE, let’s look at some potential “flies in the ointment”, the types of questions every good mining analyst should ask BEFORE considering valuation vs. market capitalization for the stock price.

1. Water, roads, electricity, infrastructure:

· The project area is 6 miles from Sundance, Wyoming, which is on an interstate highway about 25 miles west of the South Dakota line. I am told on good authority (I have yet to do a site visit but hope to before November 1 if possible.) that a considerable number of four-wheel-drive trails have been cleared during previous exploration and logging activities right up to and through the property. Therefore, the roads and access are excellent by mining standards.

· The property is less than one mile from the regional power grid, and there is nearby access to Burlington Northern rail transport at Moorcroft about 40 miles away. We can assume that tying into the power grid will be a non-problem.

· The current size of the property is sufficiently large to support a mining operation, with no foreseeable obstacles regarding expansion.

· Water availability should not be a major issue.

2. Environment:

· We understand that the US Forest Service is the lead agency managing the surface of the Bear Lodge Mountains and has been very cooperative and good to work with so far.

· Environmental and permitting activities are being coordinated by Newmont for both gold and REE exploration. As of mid-April 2008, a systematic program of drill testing for grade and tonnage of a potentially large gold system is expected to proceed once a new exploration permit is in place allowing much greater flexibility for drill-hole locations than is currently available. (RES will should carry on with its own rare earth development outside that permit area much sooner.) Newmont's permitting efforts are progressing in order to allow an expanded drill program on up to 200 acres. This permit also would allow much greater flexibility for the locating of drill holes for REE exploration. While we expect approval later in 2008 (and there is no reason to believe otherwise. This is, after all, Wyoming, one of the most mine-friendly places in the world.), and even more aggressive drilling than we know is coming might be possible in the 3^rd quarter. Assuming the likelihood that Newmont revs its drilling motors even more in the first half of 2009 (snow and muddy season cleanup aside), we are confident gold resources attributable to RES will leap yet again.

3. Environmentalists, Native American issues:

· We understand there are no known issues involving Native American land claims or sacred sites. Environmental groups are not as active in Wyoming as in other states, probably because of the state’s pro-mining stance.

4. Topography:

· The land has rounded grass-covered peaks and the elevation of the property itself runs from 5,800 to 6,400 feet. Most of the property has moderate slopes covered by western yellow pine forest, interspersed with dense thickets of bush, and narrow grassy meadows, which cover the upper reaches of seasonal drainages. This seems benign to us, and the pictures on their website don’t look in any way scary. (Believe us when we say, “Topography can’t kill . . .but it can kill a deal”; it’s an important issue. So, Bear Lodge seems a GREAT place to develop a property and build a mine!)

5. Wyoming as a “domicile” and jurisdiction:

· Wyoming is a state with considerable coal mining and a history of open pit uranium mining (“HINT #27”- that means less intrusive, lesser-impact mining operations generally face no unusual problems in permit process. Gosh, EVERYTHING is less intrusive and impacting than open pit uranium.). So, it is one of the states with favorable environmental regulations for developing mines within reasonable time frames.

· In fact, The Fraser Institute rates Wyoming as the seventh best jurisdiction for mining in the world because of its pro-mining policies.

· Furthermore, we understand that Newmont rates Wyoming very high on its list of favorable jurisdictions for exploration and mine development. Never underestimate the value of a friendly domicile. Note the recent reactions of Aurelian and Corriente to news out of Ecuador of possible nationalization and a 180-day moratorium on mining.

6. Reasonable event/development timeframes:

· We know that extensive gold occurrences and also significant occurrences of REEs are on the Bear Lodge property based on over 200 drill holes; now Newmont and RES have to determine how much bigger the deposits are via additional drilling; and whether there are multiple REE deposits on the property. They are also working on finding the best way to process the REE-bearing material and economically extract the metals, including from both the near-surface oxidized material and the deeper non-oxidized carbonates. The metallurgical characteristics of the gold deposits appear to be much more predictable, especially for the oxidized mineralization. The companies are assembling all the drill-hole information into a digital database so that NI 43-101-compliant resource estimates can be made for REE initially and then for gold. Once all of this is well along they can do some preliminary economic analysis and look more in depth at the issues of marketing and sales of potential REE products.

7. Surrounding land package relationship to trend, strike and geological district related issues and mine development issues:

· Rare Element believes it has the core of the Bear Lodge Mountains deposits controlled with its claims, including the best gold targets and the best rare-earth targets.

· Newmont controls a block of claims to the south that covers gold targets in the adjoining sedimentary rocks, and there are no other significant claim owners in the Bear Lodge Mountains.

8. Metallurgy related to different gold occurrence types likely to yield ore:

· The company believes that based on preliminary metallurgical testing of the gold mineralization, which is primarily oxide material, the deposits appear to be predictable and amenable to heap leaching.

· A number of preliminary metallurgical tests have been run on the REE mineralization, including leaching and flotation with a hot-flotation step. Beneficiation tests (checking different ore preparation techniques) are currently being conducted by MSRDI (Mountain States) of Tucson, primarily on both mixed and non-oxidized rare-earth mineralized samples to determine the feasibility of producing commercial rare-earth concentrates. Building on the previous metallurgical test work, they will investigate a number of conventional and non-conventional processing methods such as concentrating (or removing) the larger weight percentage of the gangue (waste rock surrounding ore) by appropriate processing techniques.

We see practically no significant issues (mining and development are naturally fraught with difficulty anyway) with any of these typical “problem” areas. Our “buy” recommendation is undiminished.

Given the exciting Newmont joint venture in gold and RES’s 100%- owned rare-earth deposit that could be worth even more, Rare Element’s fully diluted market capitalization of US $23M seems quite inadequate in the current market, and appears to allow room for tremendous expansion.

We suggest aggress accumulation in the $0.80 - $1.20 range, and look for multiple appreciation over the next 24-40 months.

Finally, if you want to receive my periodic updates on this and other exciting mining and natural resource shares, including my 10 Stocks to Buy at the End of April Tax Sell-off and Stocks for the 2^nd Great Buying Opportunity of 2008 send me a note at:

Darrell Brookstein

darrell@ResourceDevelopment.com

Disclosures and Disclaimers

GENERAL TERMS*

No investment opinion or other advice is being rendered on any stock or company. All of the trading stocks we recommend should be considered highly speculative; you can lose some or all of your money. It should be assumed that the Author and editor and their associates may hold or dispose of or trade in positions in any securities mentioned at any time. Please be responsible for understanding the terms and vocabulary of stock market investing. Here is an unaffiliated glossary site that may be useful:

http://www.traders.com/Documentation/RESource_docs/Glossary/glossary.html

Disclaimer

newsletters, special reports or on our web site or sent by email or mail. Our readers are solely responsible for their own investment decisions. The information contained herein does not constitute a representation by the publisher or a solicitation for the purchase or sale of securities. Our opinions and analyses are based on sources believed to be reliable and are written in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy or completeness. All information contained in our newsletters or on our web site should be independently verified with the companies mentioned. The editor and publisher are not responsible for typographical or other errors or omissions. There is no guarantee of investment results herein whatsoever, either explicit or implied. Past results are no guarantee of future results or even profitability. Investors are cautioned that they may lose all or a portion of their investment if they make a purchase or short sale in these speculative stocks.

Audio Interview: Darrell Brookstein - Nanotech Investing

2008-04-11T10:03:00.000-07:00

Dear Nanotechnology.com Member,

Today, The Wall Street Reporter sent out the following email to their 50,000 subscribers and we thought you might enjoy listening as well. Please note that Mr. Brookstein was misquoted accidentally in the blurb below. Of course, he did not say, “nanotech initiatives and nanotech assisted products accounted for over $1 trillion in sales of last year”; he said “nanotech initiatives and nanotech assisted products accounted for billions of dollars in sales last year.”

Click the “Listen Now” button below to hear the 22-minute interview, now.

Wall Street Reporter Idea of the Day: 7 Stocks for the Coming Bull Move in Nanotech

To view an online version of this email, click here.

April 9, 2008 - IDEA OF THE DAY

SMART MONEY INTERVIEWS - IDEA OF THE DAY

7 Stocks for the Coming Bull Move in Nanotech
Darrell Brookstein; Nanotech Company, LLC

Darrell Brookstein, founder of the Nanotech Company, LLC, has correctly been bearish on nanotech stock prices for years now, but when the nanotech index hit a 5 year low recently he began searching for values. Darrell tells us that 140 of the Fortune 500 companies have announced nanotech initiatives and nanotech assisted products accounted for over $1 trillion in sales of last year.
While a five year low does not mean an instant turnaround, Darrell believes that in a "Boom Bust" sector like Nanotech we could see a short-term (2 weeks - 2 months) rally from the following companies. Darrell recommends using tight stops to protect capital:

Analog Devices [NYSE:ADI] $30 down from $40 - Known for High performance signal processing. They do lots of work in MEMS (Microelectromechanical systems). The January low of $26.16 is an important long-term stop-loss

Altera Corp. [NASDAQ:ALTR] $19 down from $25 - Makers of integrated circuits and other "Nano-semi's". Darrell says long-term traders should consider a stop-loss at $16.12, the recent January low.

Xilinx [NASDAQ:XLNX] $23 up from 20 recently - Darrell recommended this stock at $21.80 and thinks current levels provide an excellent opportunity for a short-term move.

Bentley Pharma [NYSE:BNT] $14 up from $8 - This stock has seen a nice run, but Darrell feels it may go to the mid $15 range. And boy was he right! Just days after our interview, Bentley caught a $360 million bid from TEVA.

Formfactor [NASDAQ:FORM] $19 down from $48 - Known for testing the circuitry of semiconductor wafers without destroying them, a large problem right now. A recent lowering of Q1 guidance will undoubtedly put the stock price under some pressure.
MTS Systems [NASDAQ:MTSC] $23 down from $48 - They are involved with testing of bio-medical devices and also automotive testing products. Their sensor division sells to many types of manufacturing facilities all over the world.

Cabot Microelectronics [NASDAQ:CCMP] $32 down from $46 - Specializes in the polishing of wafers, a very necessary process in semiconductor production. Cabot trades with a foreword P/E of 15 and a PEG ratio of 0.86.

Nanotech Insights #8

2008-03-31T18:45:00.000-07:00

March 25, 2008

Dear Small & Advanced Technology Investor,

First, a bit of housekeeping:

Many of you have yet to let us know if you are an “accredited investor” or not. As we will be discussing some investments only available to “accrediteds”, we need that group as a separate list. Please send us a short note at darrell@nanotechnology.com, ASAP; thank you. (Please note: if you have already sent it, we have it.)

As I expect to be a director of several public companies (mainly Capital Pool Companies – CPCs – on the TSX Venture Exchange) over the next 12 months, I am unsure how much longer, I will be able to write these notes without running into a variety of restrictions. (Even more reason to become involved in our business, rather than simply standing aside as simply an interested investor and newsletter reader. This could be as a vendor of a “small-tech” business, fund-raiser, merger or spin-out “rainmaker”, or finder for any of these.)

Again, opportunity and history knock only once.

Our contact on issues and recommendations such as those below may be limited soon by our involvement with public companies. We have tried over these 5 years to open a curtain on our thoughts, processes and investment ideas; often at the risk of disclosing parts of our proprietary and unique business model and investing competitive advantage.

In the end, it is and was clear that no one else can do what we do, much less, do what we do as well as we do.

Among other things, we kept you OUT of investing in nanotech and other “small” and advanced technologies while others promoted, invested, and created this opportunity for us, now.

When we did invest or trade in the declining market, we won, evidencing our strong capabilities to pick winners and losers independent of market direction.

Rest assured, we have been offered dozens of private and pre-public investments in our chosen “space” over the last 5 years . . . and we have turned down every one. If the science and technology were solid, the valuation was not suitable. If the valuation was good, the science and technology or time-frame were suspect.

Patience pays off. Valuations are DOWN. Money is TIGHT. Success stories have been FEW.

This is what we have been waiting for. What a great time to be a nanotech investor.

Please join us. (To be clear: call or email me to discuss.)

Now, onto the “meat” of this letter:

On the overall market: While we cannot rule out a run to 144 on the SPY, we still believe this stock market rally is within a Bear Market, and we remain nervous “longs”, especially when the SPY goes above 136. The 130.50 number in SPY offers good support and we would treat any violation of that number as a sign to sell and wait. The most important “line in the sand” is at 125.99 in the SPY; single trades there or below will likely trigger another sharp decline in the stock market. Look for a “trading range” market until then, unless we see our proprietary bottoming signal first.

If you have been following our recommendations, you are LONG these stocks below. Now, please see how we would play them from here, given that we are not feeling this is the time to make long-term commitments in the stock market:

ADI – keep an overall protective stop at 28.81; raise that to 29.06 on any trade at 29.76; take profits on half the position at 30.04.

ALTR – keep an overall protective stop at 18.29; raise that to 18.69 on any trade at 19.06; take profits on half the position at 19.24.

BNT – Keep an overall stop-loss at 13.26; raise that to 13.99 on any trade at 14.26; take profits on half the position at 14.39.

FORM – keep an overall stop-loss at 17.69; raise that to 18.24 on any trade at 18.86; take profits on half the position at 19.69.

MTSC – keep an overall stop-loss at 31.99; raise that to 32.27 on any trade at 33.82; take profits on half the position at 34.74.

XLNX – our huge winner to date: keep an overall protective stop at 23.49; raise that to 24.10 on any trade at 25.26; take profits on half the position at 25.39.

Going Forward:

We would buy CCMP on a 32.75 STP and carry a sell stop-loss at 32.09.

We would buy IVGN if it can pull back a bit at an 84.01 Limit and carry a sell stop-loss at 80.24.

We would buy AATI if it can pull back to 6.41 Limit and carry a sell stop-loss at 6.02.

Please note: These stocks above are VERY heavily over-weighted to the semiconductor side of “small tech”. Be especially cautious not to go overboard.

Caution for holders of PXN, TINY and ACTL. The first two are sometimes incorrectly viewed as proxies for a nanotech index or mutual fund of sorts, and they are running up to important resistance over the next couple of days to couple of weeks. We would use that opportunity to sell. ACTL is a very strong stock, but looks “toppy” at current levels, and we would look for a sharp correction soon. Beware.

If you are not an “accredited investor”, should you begin investing for the long-term in “small” and advanced tech stocks, now, and if so, how?

Unbelievably, for the first time, ever, we say – yes!

If we were in that situation, we would “dollar cost average” (http://en.wikipedia.org/wiki/Dollar_cost_averaging) monthly, over the next 24 months. We would divide the total amount we wanted to invest in these type shares over the next few years – let’s say $24,000 – into 24 and invest the same amount monthly on the same day (in this case $1000), every month for 24 months starting now.

What stocks would we choose and how many shares of each would we buy?

Simply, we would buy The Nanotechnology.com Small Tech Index using the stocks and the ratios we present there. (Remember to use the footnotes at the bottom of the page. They are very important.)

http://www.nanotechnology.com/stocks/?a=index

Now, please do me the favor of re-reading the first dozen short paragraphs of this letter before deleting.

Thanks,

Darrell Brookstein

Managing Director

The Nanotech Company, LLC

Nanotechnology.com

3525 Del Mar Heights Rd. #345

San Diego, CA 92130

858 794 0848

darrell@nanotechnology.com

Disclosures and Disclaimers

GENERAL TERMS*

Disclaimer

4 Quick Notes - March 18, 2008

2008-03-21T11:25:00.000-07:00

1. Did you forget to send us a note requesting the recently edited, FREE Nanotech Insights? This is the last call for our unvarnished take on the state of “small” and advanced tech investing in early 2008. More importantly, it will put you on our insider list to receive timely updates on investments we are making in the future. Please indicate in your letter if you believe you are an “accredited investor” (sophisticated investor with net worth above $1M and $200,000/yr income). darrell@Nanotechnology.com

2. Did you buy Animas Resources (ANI on the TSX Venture Exchange and ANIMF on the OTC) at $1.34 on my recommendation last month? If you did, you are happy today. It has already been over $2 since, and they have not even begun to drill yet this season. If you want to receive my mining and natural resource updates and recommendations, please send a note to be included on that list. darrell@ResourceDevelopment.com

3. On Tuesday’s close, only (March 18^th), we will be buying any of these that close up for the day: ADI, FORM, MTSC, BNT and LMRA, and will carry close stop losses on them. Up closes will confirm important bottoms in these stocks based on our proprietary pattern recognition trading methodology. We will try to stay long those that do close up Tuesday as long as they stay above their 2008 lows. (PS – We believe about the only “small tech” stock we’ve loved for a long time, ILMN, has had its last “hurrah” for awhile. We would sell it or short it between 65 and 70. We will not be buying it again until it breaks above $77 – unlikely anytime soon, or it bottoms with the bottoms again sometime later in 2008 or 2009. - - - It’s had a good ride since it was $8 in 2005! By the way, you need to request Nanotech Insights to receive further comments of this nature. darrell@Nanotechnology.com

4. If you are interested in nanotech investing and have not bought and read Nanotech Fortunes, what are you waiting for? I’m mystified that you would not have read it by now (I should make or save you tons of money and time – and would have already if you invested much while the nanotech stock indexes have declined even further to new five-year lows, today!). I