Silver Grail

Silver Stock Report

by Jason Hommel, September 12, 2006

In two business days, Silver Grail just completed an over-subscribed financing of 1.2 million units.  Just over 2 million units were requested, at $.50 Cdn, for $1 million Cdn.

Stock price on Tuesday closed at $.53 Cdn./share
Symbol: SVG.V at Yahoo! Finance.
Symbol for U.S. investors: SVGAF.PK.
13.4 million shares fully diluted.
+ The company will be adding up to 4 million shares in this placement if the options are also exercized at $.62--and they are good for 2 years!
Total: 17.4 million shares.
Market cap after financing: $8.3 million.

This very cheap company has 9 silver projects listed at their website, and 4 of their properties will be drilled by the end of this season!  That's amazingly productive for such tiny market cap company.  That's the value here.

Top 4 projects being drilled this season:
1.  Konklin Silver 
I think this is the most exciting project.  It lies to the south of the Del Norte project, optioned by Sabina, that has had good, high grade results.
See Sabina's results:
Sabina's New Discovery Grades Up to 114 Oz/Ton Silver, O.57 Oz/Ton Gold
-- Drilling Commences at Del Norte Project, Stewart-Eskay Creek Area
But the Konklin is about 2-3 times as big as Del Norte, as seen from the air, as indicated by recent Aeroquest air surveys, which you can see on the map, here:
Drill sites will be determined later this month!

2.  Clone Property
Currently finishing up a drilling program, paid for by Canasia, but Dino of Silver Grail is the operator who makes the decisions.  Results are expected to be good.

3.  Tonga Property
This is the property that Dino is most excited about right now. 
Bravo Ventures recently hit an intercept near the Tonga that may be the Eskay Creek II that everybody up in the region has been looking for.
--Silver Grail owns properties to the West, South West, and North of Bravo's Homestake Ridge.
On the Tonga property, Dino is hoping to drill into what he hopes are "Eskay Creek"-like, gold and silver bearing, VMS, Volcanogenic Massive Sulfides, that the Aeroquest surveys have indicated are "conductive".
Because the current drilling at the Tonga is looking so good, that is the reason for this current Private Placement, to continue drilling there.  Dino believes it's better to raise money at the market price, than risk debt. 

4. The Campbell Ridge molybdenum project will be drilled this season after the Konklin.  25/60 moly grab samples had values between .1% to 2.4% moly, very high grades.

Personal note:  I own 1 million shares of Silver Grail, with a current market value of $473,000 (shares free trading, but not liquid due to low trading volumes, of course), which is my 7th largest holding.  I also own 1 million warrants that I will exercise before they expire this November. 

----------------START COMPANY RELEASE----------------
Silver Grail to raise $600,000 privately

Silver Grail Resources Ltd (C:SVG)
Shares Issued 10,662,121
Last Close 9/6/2006 $0.62
Friday September 08 2006 - News Release

Mr. Dino Cremonese reports


Silver Grail Resources Ltd. plans to raise $600,000 by the sale of 1.2 million units at 50 cents per unit in a private placement. Each of the units will consist of one common share and one non-transferable share purchase warrant. One warrant will entitle the holder to purchase one additional common share of Silver Grail for a period of two years at a price of 62 cents per share from the original issue date of the warrants.

The proceeds from the private placement will be used for exploration on the company's mineral properties in the Stewart region of northwestern British Columbia and also for general corporate purposes.

Silver Grail may pay a finder's fee or commission for a portion of the private placement in accordance with the policies of the TSX Venture Exchange. The private placement is subject to the approval of the TSX Venture Exchange.

----------------END COMPANY RELEASE----------------

Again, this private placement announced this weekend is already closed, and oversubscribed.

Outlook:  Since the company's placement is oversubscribed at $.50, the share price will likely go up from here, especially as news is announced regarding continuing results from all the recent and soon to be completed exploration.

Address:  #207-675 W. Hastings St, Vancouver, BC, Canada V6B 1N2
Phone:  604-682-3680 or  800-879-2333
Fax:  604-682-3992