Saskatoon--the mining capital of ... Canada?

There ... am I the first to say it? I hope not. Saskatoon and Saskatchewan are demonstrating to Canada and the world that Saskatchewan has substantial natural resources. The 'Generals,' such as Cameco and PotashCorp, are industry leaders and world-class companies which are located right here in Saskatoon. Moreover, there is strong evidence of a truly amazing evolution of up-and-coming junior resource companies.

I can remember growing up thinking someday Saskatchewan has to have a turn in the sunlight. We have witnessed other parts of the country prosper from their resources, however, we are only just starting to see the impact of natural resource development.

There are a number of very positive signals that demonstrate we have fabulous potential. As usual, it is not clear until it happens, and I encourage you to check with your investment advisor, ask lots of questions and, if appropriate and you are confident, then consider investing in this sector. Here are three points for your consideration:

First: Potash -- It was recently announced that BHP Billington, the largest mining company in the world with a market capitalization of over $130 billion US, has agreed to spend $40 million US in a joint venture with Anglo Minerals (TSXV: ALM), one of the first junior potash companies operating in Saskatchewan again.

Saskatchewan has a majority of the world's recoverable reserves of potash. The potash beds that were laid down millions of years ago have not been broken up by earth's shifting crust so it is much easier to mine potash here.

Next: Uranium -- Not only has the Premier and Minister Cline been to France to pitch Saskatchewan as the best place to process uranium, but Patrick Moore (a founding member of Greenpeace), in a Washington Post article, recently indicated his support of nuclear power as a method to reduce green-house gas emissions.

In a recent report by Eric Sprott entitled "Investment implications of abrupt climate change," he outlines why there can be no doubt that nuclear power must form a majority of our electrical production starting immediately. Carbon dioxide is the enemy and its negative impacts are changing the way we live on this planet. For every kilowatt/hour of electricity produced from coal, 1.04 kg of carbon dioxide is produced. Compare this to 0.02 kg for nuclear. It isn't even close.

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We have world-class uranium deposits in Saskatchewan and a large number of junior resource companies operating here. According to Sprott, "If the world is to get to 60 per cent of electricity produced by nuclear in the next 25 years, then there will need to be a ten-fold increase in uranium production to meet the demand."

Next: Diamonds -- Derek Holt, assistant chief economist of RBC Dominion, reports that diamonds are expected to be mined at Star and Fort a la Corne, two emerging diamond projects. Check out the report at www.rbc.com/economics to read the report on diamond mining in Canada. According to Mr. Holt, there will be two diamond mines starting construction in the next few years. The report goes on to state that the provincial government is expected to get hundreds of millions of dollars in royalties over the life of the project. According to this report, there will be $1 billion in capital spent on each project in developing this resource.

There are many exciting companies that have operations here in Saskatchewan, however, it is not easy to select who have the best prospects. 49 North 2006 Resource Flow Through Limited Partnership is designed to provide investors with a portfolio of these junior resource companies that are exploring for uranium, potash, diamonds, precious metals, rare earths and oil and gas. The limited partnership also has some special tax deductions called Canadian Exploration Expense and also a 15 per cent federal investment tax credit. This can help you to diversify some of the risk associated with investing in junior resources. Call me if you have questions.

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Check out the web site at www.49northresource.ca.

This is not meant as a solicitation of securities. The securities mentioned herein 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 49 North 2006 Flow through limited partnership 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 343-5225 or [e-mail].