Orvana Minerals Corp.

A Junior Primary Gold Producer in Bolivia and developing in Portugal

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Orvana is a highly profitable pure gold producer in Bolivia that possesses a significant cash position, well in excess of its market capitalization. The mine life for the gold rich lower mineralized zone of Orvana's Don Mario property is expected to last through 2010, at which time Orvana will be forced to either modify the gold plant to accomodate for the polymetallic, copper-gold-silver upper mineralized zone (est. CAPEX of $70 million) and/or continue diversifying its operations outside of Bolivia. The current directional uncertaintly is due almost entirely to Bolivia's uncertain political environment. [David Zurbuchen] [Jan 24 2009]

Orvana appears significantly undervalued even given the limited mine life and political uncertainty of Bolivia where its gold mine is located. Ironically, we consider Orvana to be a relatively risk-free investment at current prices, due to the fact that Orvana is completely unhedged and possesses minimal debt ($4.5 million at 9/30/2008), especially compared to its growing cash position ($91 million at 9/30/2008). The critical piece of the puzzle is how company managment decides to use Orvana's cash hoard over the next several years. I would personally prefer a diversification strategy rather than solely, if at all, proceeding with the development of the upper mineralized zone in Bolivia. The recent acquisition of the Copperwood Project in Michigan offers some hope in this regard, though we feel more lucrative near-production deals could be negotiated in the current environment and we hope to see more M&A activity going forward. [David Zurbuchen] [Jan 24 2008]