October 17, 1996

Birim Goldfields Inc. (BIRM on CDN-OTC), Montreal, QC., Tel: (514) 393-8611. Price Oct 16: $2.25, 52 week range: $4.10-0.60. First mentioned at $0.80 on Nov 15/95. Birim has increased its ownership in the Akrokeri gold property in Ghana, adjacent to Ashanti Goldfields' deposits at Obuasi, to full ownership. Core drilling is currently taking place, and results should be fothcoming in early Nov. Meanwhile the company is planning to raise additional capital in order to accelerate its exploration and acquisition program in Ghana.

Bonus Resource Services Corp.(BOU on TSE & VSE), Calgary, AB, tel:(403)263-6777, price Oct 16:$2.80, 52 week range:$3.00-0.25. First mentioned at $0.76 on May 15/96. The stock hit a recent high of $3 after announcing its planned acquisition of Mountain Well Servicing Holdings Canada Ltd. and Windermere Industries Ltd. This will increase its fleet of oil service rigs to 53 from 21. Coincidental to this, Bonus is raising $21 million in equity financing, which will double the shares outstanding from the existing 12.1 million share base. However, continued growth prospects, from a larger base, are excellent.

Chai-Na-Ta Corp.( CC on TSE, CCCF on NASDAQ), Langley, BC, tel: (604) 533-8883, price Oct 16:$2.90, 52 week range:$3.80-2.24. First mentioned at $2.90 on Aug 28/95. This fall, the co. seeded a total of 368 acres on its ginseng farms, a 64% increase over the 1995 seeding of 224 acres. After this year's harvest, Chai-Na-Ta will have a record 1,478 acres under cultivation which,at maturity, should have an approximate value of $150 million. Stockholders will be asked on Oct 18 to consolidate their shares on a one for 4 basis. Management feels that a higher $ stock price will attract more investors. There are currently 15.7 million shares outstanding.

Ensign Resource Services Group Inc. (ESI on TSE), Calgary, AB. Tel: (403) 262-1361. Price Oct 16: $17.75, 52 week range:$18-4.50. First mentioned at $8.50 on Feb 15/96. Because of the optimistic outlook for oil & gas exploration and due to the company's expansion of its fleet of servicing rigs in both Canada and the USA, earnings estimates have been increased to $1.50/sh for this year and $1.75 for 1997. A stock price target of $22 has now been set.

Franc-Or Resources Corp. (FOR on TSE), Montreal, QC, tel: (514) 861-5323, Price Oct 16:$1.28, 52 week range:$1.70-0.25. First mentioned at $0.55 on Aug 28/95. This newsletter will cease to follow this company because of the difficulty in obtaining accurate and meaningful information regarding their gold exploration venture in French Guiana.

Freewest Resources Canada Inc. (FWR on TSE & ME), Montreal,QC, tel: (514) 878-3551. Price Oct 16: $1.10, 52 week range:$1.65-0.47. First mentioned at $1.06 on Aug 15/96. The company will be involved in drilling for gold and base metals in at least 6 different projects over the next few months. This means that Freewest will be in the news. Success in any one of these ventures should have a positive impact on the trading price of its shares.

Golden Star Resources (GSC on TSE & ME, GSR on Amex), Denver, CO, tel:(303)830-9000. Price Oct 16/96: $26.55, 52 week range:$28.25-6.25. First mentioned at $7 on Aug 28/95. This company is very active in gold exploration in South America and Africa. Core drilling is beginning in Brazil on a large gold prospect in partnership with a powerful Brazilian resource developer. Exploration for gold and diamonds continue in Suriname and French Guiana. Its 70% owned subsidiary, Guyanor Ressources S.A., plans to raise equity funds and list, also, on the Nouveau Marché of the Bourse de Paris. Both companies will continue to be very much in the news over the next few months.

Gold Reserve Corporation (GLR on TSE, GLDR on NASDAQ), Spokane,WA, tel:(509) 623-0326. Price Oct 16: $16.70, 52 week range:$21.70-6.75. First mentioned at $11.95 on July 12/96. The company continues to expand its exploration and development in the KM88 area of Southeastern Venezuela. It may soon announce additional reserves to the current estimate of 6 million ounces of gold and 788 million lbs of copper. After a recent quick rise in its price, the stock has pulled back to the $16 level. The outlook is good and a stock price target over the next 12 months of $25 appears plausible.

Malofilm Communications Inc. (MFM.B on ME & TSE), Montreal,QC, tel:(514) 844-4555, price Oct 16: $7.30, 52 week range:$9-4.35. First mentioned at $5 on Aug 28/95. The stock of this entertainment production company appears to be building a support base level in the $7 to 7.50 trading area. There exists rumors of a possible takeover. See previous chapters of The Pick for a description of Malofilm.

Murgor Resources Inc. (MUG on ME), Montreal,QC, tel:(514)878-4216, price Oct 16: $0.80, 52 week range:$1.48-0.48. First mentioned at $0.79 on Aug 15/96. This gold exploration company is well focused on 4 different projects. There is the possibility of a major gold producer becoming a partner to Murgor in one of these projects. If so, this would free the company to concentrate more efforts on the 3 other areas.

NQL Drilling Tools Inc. (NQL.A on TSE), Nisku, AB, tel:(403) 955-6460, price Oct 16:$3.99, 52 week range: $4.15-2.50. First mentioned on May 15/96 at $3.20. Investors are beginning to take notice of this well-managed company involved in servicing the horizontal and directional oil & gas drilling industry. The recent opening of a center in Odessa, Texas will enable NQL to participate in the renewed activity in the Permian Basin. Earnings per share are estimated at 30 cents this yaer (ending Nov 30) and 45 cents for fiscal 1997. A share price of $5 appears reachable.