Major Market Opportunity

"This is not the time to be in stocks or non cash-flowing real estate. As investors we are in the rare situation where the safest investment (the investment that has been a valued form of wealth for over 5,000 years) is also the investment that history says will offer the greatest potential gains in the upcoming years: Gold." --Mike Maloney, Gold & Silver, Inc.

Rising gold and uranium demand combined with VIPR Industries’ highly motivated and experienced team, smart acquisitions and aggressive exploration strategy have created a tremendous opportunity for shareholders.

Gold

The gold sector is achieving record growth, gaining 47% in the past year according to Bloomberg. The price of gold rose more than 30% in 2007 and broke through the all-important $1000 mark to hit $1030 per ounce in March 2008.

Gold acts as a safe haven investment during financial market turbulence and a hedge against inflation and a weak dollar. Slowing economic growth, a loss of purchasing power, and continued uncertainty over the financial system may boost demand for the precious metal, asserts Stephen Platt, commodity analyst at Archer Financial Services Inc. in Chicago. “There's a general attraction to gold, given the uncertainty with other financial instruments,” Platt said. “Real interest rates are negative and the Fed is walking a fine line between growth and trying to restrain inflation.” (Bloomberg, July 16, 2008)

On July 15, 2008 the dollar reached a record low of $1.6038 per euro. The Labor Department reported consumer costs rose 5% in the past year, the biggest jump since 1991. And the Standard & Poor's 500 Index of equities fell to the lowest level since 2005. (Bloomberg, July 16, 2008)

Gold is poised to revisit $1,000 an ounce as investors look for a safe haven. Bullion hit a four-month high on July 15, 2008 at $987.75 and is up 18.5% since the start of the year. It is also gaining value in other major currencies, showing strong demand from investors around the world for the precious metal. (Reuters, “Gold shines amid market turmoil, targets $1,000”, July 16, 2008)

"There is lot more upside for gold," says Thomas Winmill, manager of the Midas Fund (MIDSX), one of the top-performing precious metals funds, with a three-year average annual return of 42%. Winmill thinks gold could see $1,500 in 12 months. (MSN Money, “5 reasons gold is headed to $1,500”, April 2, 2008)

Managers of the 2nd-best-performing gold fund, U.S. Global Investors Gold and Precious Metals Fund (USERX), believe gold will go to $1,500 and to $2,000 in the next leg up.

The Motley Fool reported February 22, 2008: “The intermediate and junior gold and silver producers will outperform the industry giants over the coming months and years.” The heavyweights like Goldcorp and Newmont are under pressure to sustain growth by buying new assets and gobbling up smaller companies at a premium. Meanwhile, companies like Agnico-Eagle, Yamana Gold (NYSE: AUY), and Kinross Gold (NYSE: KGC) will be growing into their shoes. If gold continues to run, and the recent inflationary practices of the Federal Reserve and the U.S. government suggest that it will, then the intermediates and juniors could reach new heights.

Uranium
Demand for uranium is directly linked to the level of electricity generated by nuclear power plants. As more reactors are built and the capacity of existing reactors is increased, the need for fuel will continue to rise.

Growing Nuclear Power Generation Fuels Uranium Market

Uranium is an element found in nature. In its pure form, it is a silvery white metal of very high density, denser than lead. Uranium can take many chemical forms, but in nature it is generally found as an oxide (in combination with oxygen). Triuranium octoxide (U3O8) is the most stable form of uranium oxide and is the form most commonly represented in nature.

Uranium is the fuel source for nuclear power generation. Uranium fuel is emissions-free, making it safe for the environment and, compared to other fuels, only a tiny quantity is required to generate an equivalent amount of electricity.

Energy needs continue to rise as populations expand and economies grow. The Department of Energy projects world marketed energy consumption will grow by 50 percent by 2030. Total world energy use rises from 462 quadrillion British thermal units (Btu) in 2005 to 563 quadrillion Btu in 2015 and then to 695 quadrillion Btu in 2030. Global energy demand grows despite the sustained high world oil prices projected to persist over the long term. (Department of Energy’s Energy Information Administration, “International Energy Outlook 2008”, June 2008)

The Department of Energy’s International Energy Outlook 2008 asserts that as concerns about rising fossil fuel prices, energy security, and greenhouse gas emissions support the development of new nuclear generation, electricity generation from nuclear power will increase from about 2.6 trillion kilowatthours in 2005 to 3.8 trillion kilowatthours in 2030. The world’s installed nuclear capacity is expected to grow from 374 gigawatts in 2005 to 498 gigawatts in 2030. Higher capacity utilization rates have been reported for many existing nuclear facilities, and it is anticipated that most of the older nuclear power plants in the OECD countries and non-OECD Eurasia will be granted extensions to their operating lives.

The Nuclear Energy Institute reports that as of March 2008, 30 countries worldwide were operating 439 nuclear reactors for electricity generation and 34 new nuclear plants were under construction in 14 countries.

More than 15 countries rely on nuclear power for 25% or more of their electricity. In Europe and Japan, the nuclear share of electricity is over 30%. In the U.S., nuclear power creates 20% of electricity. (World Nuclear Association, “Nuclear Power Today,” July 2008)

According to the Nuclear Energy Institute, nuclear plants are the lowest-cost producer of baseload electricity. The average production cost of 1.76 cents per kilowatt-hour includes the costs of operating and maintaining the plant, purchasing fuel and paying for the management of used fuel. (NEI, July 2008)

The reactors are more expensive to build than fossil fuel plants, but the cost of nuclear is even cheaper than coal, and without the pollution. Using cost per Kwh in 2006, oil was $9.63, gas was $6.75, coal $2.37, and nuclear $1.72. (Global Energy Decisions, June 2007)

Nuclear Power Generates Steep Rise in Demand for Uranium

World mine production of uranium must expand significantly. Production from world uranium mines now supplies only 55% of the requirements of power utilities. Mine production is supplemented principally by ex-military material. (World Nuclear Association, March 2008)

The World Nuclear Association reports that 435 reactors with combined capacity of 370 GWe require 78,500 tonnes of uranium oxide concentrate containing 66,500 tonnes of uranium from mines (or the equivalent from stockpiles or secondary sources) each year. The capacity is growing slowly, and at the same time the reactors are being run more productively, with higher capacity factors, and reactor power levels.

Mines in 2005 supplied some 49,000 tonnes of uranium oxide concentrate (U3O8) containing 41,600 tU, about 64% of utilities' annual requirements. The balance was made up from secondary sources or stockpiled uranium held by utilities, but those stockpiles are now largely depleted.

With the recovery of uranium prices since about 2003, there is a lot of activity preparing to open new mines in many countries. The WNA projects world uranium demand at about 74,000 tU in 2015, and most of this will need to come directly from mines. In 2007 36% came from secondary sources.

Ongoing production and supply constraints and questions about whether new production can be timed to meet demand growth mean the market is likely to remain tight for some years to come. (Platts Insight, “Uranium and the Nuclear Renaissance”, February 2008)

Uranium hit an all-time high of $138 per pound in June 2007, up from just $7 in 2000. Prices are now stabilizing at $64 and are still historically high as of July 14, 2008.

The IAEA Department of Nuclear Energy reports the following five factors are driving the growth of nuclear power generation: • First is the track record. The world now has around 12,700 reactor-years of experience. The performance and safety records of the designs in operation today are extremely good. • Second, energy forecasts keep showing persistent long-term growth. • Third is energy supply security. In the 1970s concerns about supply security, triggered by the oil shocks, were a major cause of nuclear expansion in both Japan and France. Similar concerns may also prove an important factor today. • Fourth, specific substantial expansion plans in key countries, like China and India, have a big impact on overall global expectations. • Finally, new environmental constraints -- like entry-into-force of the Kyoto Protocol -- mean that there are some real financial benefits to avoiding greenhouse gas (GHG) emissions.