SPECIAL SILVER REPORT

February 28, 2005

The following three stocks were my top picks on ROBTV Market Call on February 25, 2004. To view the entire show please go to www.robtv.com and check out past videos under the day of the week (Friday). They are there only for a week. I own shares in all of the companies listed below.

Coeur d'Alene Mines Corp. (CDE-NYSE, CDM-TSX) ( www.coeur.com , 1-208-667-3511) is the world's largest primary silver producer. In 2004 the company produced 14.1 million ounces of silver at a cost of $3.65/ounce and 129 thousand ounces of gold. Coeur owns two of the largest silver mines in the world both in the US. Coeur also has other key properties in Chile and Argentina. Two major development projects are in Bolivia and Alaska. Coeur has reserves of 196 million ounces of silver and 1.4 million ounces of gold. There are no hedges. Coeur is not the cheapest silver company around but their preeminence as a silver company and the NYSE listing make it a prime target for the funds in strong bull market in gold and silver stocks. Higher risk.

Coeur (CDE) had a huge move in 2003 moving from lows of around $1.10 to highs of $7.69. Along with other gold and silver stocks Coeur fell into a sharp correction in 2004 giving up almost 50% of the gains. Such volatility in these stocks is not unusual. Coeur may have finished that correction with a potential double bottom on the charts with lows at $3.01 in July 2004 and again at $3.27 in February 2005. We are now trying to break out above the flattening 40 week moving average although the 13-week moving average is still pointed down. Volume has picked up a bit as the stock rises. If the double bottom scenario is correct we do need to breakout of a possible neckline at highs of $5.25. The projection would be to at least $7.50. The corrective wave has a projection of up to $12/$12.50 if we can break out above the highs of 2003.

First Majestic Resources Corp. (FR-TSXV) ( www.firstmajestic.com , 604-541-98910) is a junior mining company in the process of growing a mid tier mining company. First Majestic owns the La Parilla Silver Mine near Durango, Mexico. Silver production commenced in July 2004. Current production is 180 tonnes per day with expectations to grow to 500 tonnes per day. First Majestic expects to produce a million ounces of silver in its first year. Other properties for First Majestic are the recently purchased Dios Padre Mine that is estimated to contain 57 million ounces of silver. First Majestic also holds property in the Candamena Mining District that is estimated to hold a million ounces of gold and 20 million ounces of silver. Shares outstanding in First Majestic are only around 28 million on a fully diluted basis. Cash costs at the La Parilla Mine are around $3/ounce. This gives First Majestic a very low multiple and we rate this company as an excellent buy. Speculative.

Like numerous junior mining stocks First Majestic enjoyed a huge ride in 2003 going from pennies to highs of $2.45. Not surprisingly a correction was overdue. But the correction was quite shallow. First Majestic formed a nice bowl pattern and started an up move in late 2004 on rising volume. The move thus far has been quite sharp and we are now clearly overbought. A consolidation would now be welcome. Projections on the move are up to at least $3.15 to $3.50 so we believe there is still some legs left in this move. Further moves could be anticipated if the gold and silver markets were to start a more significant rise.

Formation Capital Corp. (FCO-TSX) (www.formcap.com, 604-682-6229) is a metals company who is involved in exploration, development and refining in Canada, the US and Mexico. Its primary assets are the Idaho Cobalt Project and the Big Creek Hydrometallurgical Complex that includes the Sunshine Precious Metals Refinery. The Idaho project is an advanced state of permitting and development. The Sunshine refinery also in Idaho has been operational since June 2004. The Sunshine property was purchased to refine the Cobalt but they are also processing gold and silver. In early February Formation announced that also had hit significant uranium intersections on their Virgin River property in B.C. Cameco (CCO-TSX) is also involved. Positioned as they are with not only gold and silver but also supplies of cobalt and uranium both commodities in growing short supply Formation Capital has excellent prospects and is very well positioned. There are about 131 million shares outstanding. Highly speculative.

Formation is another penny stock that jumped strongly in the mini mining boom of late 2003 going from around 15 cents to just over 90 cents. After the strong move Formation corrected just over half the move. This has formed a nice bottom on the charts and we have recently broken out on sharply rising volume and rising On Balance Volume. We may need to consolidate here before move higher. Projections on the move are up to around $1.10. Given Formation's growing participation in cobalt and uranium the prospects for the company may for even higher prices.

David Chapman is a director of Bullion Management Services the manager of the Millennium BullionFund www.bmsinc.ca

Note: Charts created using Omega TradeStation or SuperCharts. Chart data supplied by Dial Data.

The opinions, estimates and projections stated are those of David Chapman as of the date hereof and are subject to change without notice. David Chapman, as a registered representative of Union Securities Ltd. makes every effort to ensure that the contents have been compiled or derived from sources believed reliable and contain information and opinions, which are accurate and complete. Neither David Chapman nor Union Securities Ltd. take responsibility for errors or omissions which may be contained therein, nor accept responsibility for losses arising from any use or reliance on this report or its contents. Neither the information nor any opinion expressed constitutes a solicitation for the sale or purchase of securities. Union Securities Ltd. may act as a financial advisor and/or underwriter for certain of the corporations mentioned and may receive remuneration from them. David Chapman and Union Securities Ltd. and its respective officers or directors may acquire from time to time the securities mentioned herein as principal or agent. Union Securities Ltd. is an independent investment dealer and is a member of the Toronto Stock Exchange, the Canadian Venture Exchange, the Investment Dealers Association and the Canadian Investor Protection Fund.