CHAPLEAU RESOURCES LTD.

February 1 2008

Current Price: 0.45

Chapleau Resources Ltd. (TSX-V: CHI) experienced a 4.65% jump in share value Thursday coupled by only 6,000 shares traded. On January 31st they announced that they have received assay results for 9 of the planned 42 hole drill program at the Coringa. This has immediately caught the attention of our researchers at Pinnacle Digest and has warranted a review by our team. The significant zone which was identified has drawn the attention of our team. We will be reviewing all grades and holes drilled at Coringa.

US stocks rebounded on Thursday saving the S&P 500 from its worst ever January start. This came after the world’s largest bond insurer stated that it expects to keep its AAA credit rating. The Fed has recently announced the largest interest rate cut in 23 years followed by a second cut Wednesday afternoon of 0.50 points. The TSX Composite dropped the most in almost 7 years last Monday, but rose 156.89 points Thursday. Citigroup Inc., JPMorgan Chase & Co. along with Bank of America helped the financial shares to their largest increase in five years last Wednesday.

President George Bush recently proposed up to $150 billion in tax rebates and incentives to ward off a recession. His plan in late 2007 to freeze mortgage rates had little to no affect and his most recent tax rebate claims have not had an affect yet. The Fed, the President and now Congress are coming together to do whatever they can to avert a full blown recession. The Dow rose 207.53 points Thursday to close at 12,650.36.

The TSX and TSX-Venture exchanges are our focus at Pinnacle Digest. Resource based companies operating in these exchanges are what our research focuses on. Canadian stocks reported their first weekly gain in almost a month as sentiment central banks in the United States will cut borrowing rates to stave off a recession was prominent last week.

Canadian equities have been falling over the past few months as a slumping US economy has been sending shockwaves through the entire market. This sentiment has been slowly changing as soaring commodity prices and a more stable economic US have recently sent Canadian stocks to their first weekly gain of the year. CIBC has sold more that $2.75 billion in discounted stock to cover write down losses attributed to the US subprime meltdown and fears the repercussion from this is not over are prominent.

Canada’s biggest fear is that a lack of credit will slow the global economy and thus reduce the demand of materials. At Pinnacle Digest we believe the global demand for many commodities will overpower any economic turmoil in the United States. The TSX index continued its winning ways Thursday after investors bought companies which produce essential such as food and shares that pay dividends. The fluctuation occurring within this index is exceptional and keeping everyone on edge. The fact CitiGroup Inc. recently stated that it will have to write down another $11 billion dollars combined with the mortgage fiasco is still having a tremendous effect on the Canadian markets.

At Pinnacle Digest we feature three companies trading within the mining and oil and gas industries.

Pinnacle Digest has recently announced our first featured company of 2008: Prospector Consolidated Resources Inc. This company traded up over 30% on Monday the first day of our coverage on them, and lost a penny on Tuesday amongst heavy volume. Please review the research report located on our homepage under the “In The Spotlight” section. Nine member of the Dow Jones Industrial Average are set to announce earnings this week. Of the nine included are American Express Co. and Exxon Mobil Corp. We will be patiently awaiting any shift in momentum within the markets.

The global economy is still very weary and seemingly bracing for the United States to slow down. The Fed has lowered their 2008 growth forecast to as low as 1.8% from the 2.5 to 2.75% anticipated in late 2007. Many believe it will have to be lowered once more or that it is the end of economic expansion in the United States. The S&P 500 Index declined for the fifth consecutive week last week, but recovered on Thursday rising 22.74 points.

Volatility has been prominent in the Canadian market for months now. Gold and crude oil both fell in value Thursday taking many resource stocks with them. The Canadian markets are heavily weighted in the resource sector, which is our area of focus at Pinnacle Digest.

We feature two companies approaching 43-101 compliant reserves at Pinnacle Digest. The current volatility is leading us to caution many investments at the moment. The price of gold and energy are key factors which have many company’s earnings prospects looking higher than ever for 2008.

Montello Resources (MEO:TSX-V) is our featured oil and gas company. Their Pincher Creek Property has announced the production of 225 barrels of oil per day. In respect to the Brown Sand formation achieved an average production after swabbing operations of 140 barrels of fluid a day. Bear in mind the water cut of this fluid was up to 60%. The remaining 40% should amount to roughly 56 boed. This announcement is monumental and is the beginning of Montello Resources’ stream of revenue. There have been major developments at both of their projects which can be read about in our “News Room” section.

Hi Ho Silver Resources (HIHO:CNQ) is our most recently featured mining company. They have just announced that they have received analytical results from their 2007 exploration program at their South Rim Property. They have been aggressively drilling at their 22.8 million ton Moly Kettle River Project with results continuing to pour out from that property. They have announced results at their Kettle River project in British Columbia and are hoping to more than double the resource at this property. Hi Ho Silver is also in the process of applying to the TSX exchange which will bring global exposure to their projects and company. We encourage all of our current and new members to review the research report on both of these companies on our homepage.
 

The value of light sweet crude oil fell for the second time in five days Thursday after the Fed cut interest rates and the market continued to react negatively. Growing speculation that the US may find a way to dodge a recession has been moving the value of oil up recently. This has a lot to do with the interest rate cut and the fact that regulators are discussing ways to avert a recession. Crude oil for February delivery dropped to $91.23 a barrel on Thursday. Housing starts were down 25% in 2007, which is the largest decline since 1980. It needs to be remembered that the United States consumes almost 25% of the world’s oil.

Our current stance on this sector is still very bullish. The Energy Department has reported that crude oil stockpiles have fallen 25.1 million barrels over the past 7 weeks ending December 28th. Molybdenum is a metal we research and focus on greatly at Pinnacle Digest. It is known as the “energy metal” because it is directly tied to the construction of pipelines, which transport crude and nuclear energies. We know it is a monumental time period in the history of oil and are constantly updating our review on various oil and gas companies.

We are impressed by the demand for oil which has stabilized it over $80 a barrel. The value and demand of crude oil is an all consuming product which affects every aspect of the market. Our featured oil and gas company is Montello Resources (MEO:TSX-V). A full research report documenting their properties and potential can be viewed on our homepage. 

At Pinnacle Digest we are currently very focused on the mining and resource based sectors. The TSX Venture Exchange grew by 9.31 points Thursday and closed at 2564.69. There are many junior companies operating within the North American markets that we are tracking very closely at the moment.

Gold soared to a new record on Monday smashing through to $928.50 on a falling dollar. On Wednesday gold traded down slightly to close at $922.70 an ounce. The fact that the Fed cut interest rates by 0.75 points last Tuesday and again this Wednesday by 0.50 points has been integral to gold’s rise as the dollar’s value has been further eroded. Overall, sentiment is very strong that gold will continue its rally amid speculation a US recession will spur demand as an alternative investment.

Sentiment is still strong that the weakness in the US economy will send gold towards $1000 an ounce. We have announced our first featured company of 2008: Prospector Resources who operate within this sector.

Inflation and the desperation of the financial system appear to be going no where. This means gold will continue to rise. These factors have been having an effect for months and will continue to have an effect over the coming months. Gold is already up over 10% on the year and recently completed its seventh annual increase.

The gold market is still white hot and companies are rushing to bring on new mines combined with a fierce motivation to develop new potential deposits. We will be watching the selling and buying levels of gold and the US dollar very closely over the next few weeks. Silver futures rose on Thursday to $16.948 after rising to their highest level since 1981 on Monday. Silver’s value has been moving north for many of the same reasons gold has been lately.

Copper futures fell on Thursday after a rate cut by the Fed and after rising significantly Friday upon learning China’s inventories had fallen more than 30% signaling enormous demand. Copper closed at $3.288 per pound Thursday. China is still the world’s largest consumer and evidence continues to support that demand is rising in that country. Concern surrounding the US housing slump and that notion that it will continue to slide is one of the only things holding back the copper market.

Pinnacle Digest is continually monitoring China and their purchase of this metal. It was reported recently that Chinese imports of copper and it alloys rose 93% to 1.2 million metric tons in the nine months ended September 30th. This is compared to a year earlier. There has been a significant slow down in residential construction in recent months which is having an effect on the market. Copper has gained on the year, and closed at $3.288 a pound on the Comex Division of the NYME Thursday.

It should not be forgotten that this metal is tied directly to the growth of the US economy. Global and domestic economic expansion moves the copper market. In the second quarter China’s economy reportedly expanded at the fastest pace in 12 years. We believe the global fundamentals are in place for the value of copper to increase.

We believe very strongly in the current commodity boom. We are not only focused on the major base metals, but smaller more obscure metals as well. We are closely monitoring companies with major molybdenum deposits as this metal is trading at historically high levels. Mosquito Consolidated Gold Mines (MSQ:TSX-V) lays claim to world class Molybdenum deposits in Idaho. We encourage you to review their research report on our homepage discussing their company and many world class projects. 

The TSX and Venture exchanges are heavily weighted in the mining and resource based industries. For that reason we monitor this index very closely. The mining industry will be a major focus at PinnacleDigest over the coming months as their drilling season takes command. There are many mining and resources based companies we are continually following and updating our review upon.

Please feel free to review our “Weekly Volume” for a deeper insight into specific aspects of the market or voice your opinion on one of our chat boards to find the answers you seek. 

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