Saskatchewan resources--a world-class opportunity.

"The dominant economic fact of this century will be the rise of China," says Ken Courtis vice-chair Goldman Sachs (Leader-Post Sept. 28, 2005). "Saskatchewan has just about everything that China craves--agriculture, oil and gas, uranium and potash."

[ILLUSTRATION OMITTED]

Saskatchewan has always been known as a champion exporter. First, as an agricultural powerhouse and now as a world-class exporter of potash, uranium, and significant quantities of oil and natural gas. Now we have a world-class diamond bearing kimberlite field at Fort a la Corne and many other potential discoveries may not be far behind.

Resources, both mineral and petroleum, are the largest parts of our economy and provide real growth potential for companies, individuals and of course investors. Many of the companies in the resource sector raise capital from individual and institutional investors. This capital is then deployed to fund exploration programs and to develop existing reserves to the point where economic decisions are expected to be made.

Saskatchewan represents considerable opportunity for discovery as very little exploration has been done in past years. This means that the potential of finding additional mineralization is good and so may be the returns. Here are a few of the potential mineral opportunities in Saskatchewan:

World-Class Potash Deposits. Saskatchewan supplies at least 30 per cent of the world's potash. Potash prices have almost doubled, increasing from $110 per tonne to over $200 per tonne today due to significant overseas demand. Saskatchewan has much more potash to discover.

[GRAPHIC OMITTED]

World-Class Uranium Deposits. Saskatchewan supplies about 30 per cent of the world's demand for uranium and Cameco is the major company worldwide. Prices have risen from $7 per pound a few years ago to currently $40 per pound. The Athabasca basin in Northern Saskatchewan is widely recognized as having the highest grade uranium in the world and in significant quantities.

World-Class Diamond Bearing Kimberlite. There are a number of companies led by Shore Gold that are working in the Fort a la Corne area of Saskatchewan to prove up what may become one of the biggest diamond deposits.

Canada's Third-Largest Coal Producer with estimated reserves of 30 billion tonnes. As new technology such as clean coal evolves, look for much more development of coal as a significant contributor to our energy needs.

Precious Metals. Gold prices have doubled from their 2002 lows. Companies like Claude Resources has been mining in the LaRonge gold belt for a number of years and new companies are also expanding their work in this area.

Rare Earth Elements. Hybrid vehicles are fast becoming mainstream. If the nickel metal hydride battery becomes the fuel tank of the future then the demand for rare earth elements, a critical part of this technology, will see significant increases in demand and likely price.

These are a few of the most obvious mineral elements that are being produced and/or developed in Saskatchewan, there are many more. Look for calcium and magnesium brines, graphite, limestone and building stone potential.

Revenue from mining in 2004 was $3 billion, which was an increase of 25 per cent over 2003. Mineral exploration in 2006 was expected to be $200 million, which is almost a 200 per cent increase over 2004 and eight times the amount spent in 2003. Expenditures on exploration are essential for mineral development. Many of the statistics are available at www.ir.gov.sk.ca.

So--how does an investor participate in this sector? There are many potential opportunities to invest in Saskatchewan resources. 49 North Resource Fund is an investment fund with additional tax benefits that was established late last year. The objective is to invest in publicly listed junior resource companies that have exploration programs in Saskatchewan. 49 North seeks to diversify by investing across a number of mineral elements such as uranium, diamonds, precious metals, rare earths, etc. and of course oil and gas. www.49northresource.ca. The fund is expecting to launch a 2006 version.

This is not meant as a solicitation of securities. Securities mentioned are traded on various stock exchanges or are available by prospectus. The views expressed herein are only those of the author and not necessarily those of Union Securities Ltd. Investing in junior resource stocks is inherently risky and is not suitable for all investors. Tax deductions may vary according to issuer or taxpayer circumstances. Obtain a copy of the prospectus and read carefully before investing. Union Securities Ltd. Is a member of the Canadian Investor protection fund.

Alan Cruickshank is the Vice-President of Union Securities Ltd. He can be reached at [phone] or [e-mail].