Linux Gold (LNXGF) on The Verge of Powerful Advance

December 12, 2005

The demand for gold has been exceeding production for over 18 years and there is a tremendous amount of money in the system beginning to aggressively chase gold, a limited commodity. Prices are trading at 24-year highs and well over the psychological barrier of US$500 per ounce. We believe in the New Year, a tremendous amount of new money will come into gold shares and bullion. There has been talk on CNBC of $1000oz. If this ever were to occur, the word "Gold Rush" would gain much respect. Even if prices reach $750 per ounce, gold stock investors should be very pleased with market gains. The exploration or "junior" gold stocks have been lagging the larger mining shares. We believe this to be a wonderful "discounted" opportunity with very favorable risk to reward.

Listen to what a reputable fund manager has to say:

"These junior companies are similar to biotechnology stocks. You can make a lot of money if you have the right project," Land said in an interview. "They are cheaper than bigger stocks and safer than ever because of the cushion from gold prices being so high." The price of bullion hovers near record highs, asset manager Steve Land of Franklin Templeton Investments is raising exposure to speculative junior gold miners with promising exploration plans. The manager of the $506-million Franklin Gold and Precious Metals fund raised his weighting in junior, or smaller gold companies to 7.7% from 5.3% between March and end-September.

Stock tracker's favorite exploration company is Linux Gold Corp symbol LNXGF. The company was recently recommended by legendary market analyst Joe Granville, who put a $1.00 target on the stock. Mr. Granville has a powerful influence within the investment community. Linux has since advanced approximately 70% on high volume. If you look at the chart below, in all reality the $1 level could be attained very quickly once the stock breaks resistance at .30 and moves to .32. The reason is simple - Linux has a good history of trading and when it advances does so on large volume. Volume attracts buyers, which increases the price, which attracts more buyers…and so on and so on. This is how a market cycle progresses when stocks enter a momentum phase.

Linux shares also have significant discovery leverage. The company has 5 exploration properties in areas that have produced billions of dollars worth of ore or have billions of dollars worth of reserve. The latest acquisition in Alaska called Granite Mountain had a very interesting 2005 - assays show a multitude of potential - gold, silver, zinc, lead, copper, molybdenum and uranium. There is talk that the property has similar characteristics to that of Galore Creek. Galore is a large porphyry deposit with 40 million gold equivalent ounces. Granite Mountain is located in an area where very successful mining companies Nova Gold, Teck Cominco and Northern Dynasty are operating. Linux is expecting to drill the property during the summer of 2006.

Stock Tracker recommends that investors ignore top callers in the gold market. Invest in quality, gold exploration stocks and sit tight for 2006. It is estimated that only 1 out of 100 investment advisors were recommending gold stocks during the 1970's and 80's as prices reached US$865oz, and many missed out on returns of 2000% and more. Be sure your positioned to take full advantage of the emerging bull market!

Recommendation For LNXGF

BUY

For further information visit - www.linuxgoldcorp.com

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The world’s gold supply increases by 2,600 tons per year versus the U.S. steel production of 11,000 tons per hour.

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