Eastmain Resources Company Update

Equities & Economics Report (05/20/2009)
"Eastmain Resources is in an advantageous spot because they do not need the sky-high gold prices to be attractive.

Quality management has to always be considered and Dr. Don Robinson, the President and CEO, is a highly respected and top-notch geologist and businessman.

Location is something that I would really like to emphasize. Quebec is the best place to do mining/exploration in Canada, according to Fraser Institute for several years now.

Let's focus a little more on Baie James (James Bay). The company is quite active in this area with several projects, including the Clearwater and Eleonore projects. The Clearwater project has just under 1 million ounces of gold in the inferred and indicated category. This is a nice size deposit. . .it is especially nice because of its grade.

Over the past 16 months Eastmain has intersected 365 veins from drilling with an average grade of 0.41 ounces gold per ton over an average width of 1.32 m (4.3 feet), including 250 vein intercepts at 0.57 ounces gold per ton and 100 vein intercepts with an average grade of 1.18 ounces gold per ton.

Eastmain, Goldcorp and Azimut have agreed to combine the southern portion of the Eleonore property with the Azimut C claim block to form a 3-Way Joint Venture on the Eleonore South Property, in order to consolidate the land position and accelerate exploration. Eastmain has the right to earn 1/3 interest on the property by completing $4 million in exploration. The 2009 exploration program will be jointly funded by ER and Goldcorp. Goldcorp has taken this a little further by acquiring 9.9% of Eastmain Resources. This is a significant step because it demonstrates the viability and confidence in not only Eleonore but all of Eastmain, as well. The Eleonore project has very interesting anomalies and seems to merit considerable attention.

The company currently has around 20 million dollars in the bank which, thanks to government credits, is like having nearly 30 million dollars in the bank. Currently, the company is being assigned a $40/oz value. The per-ounce value merits being closer to $100/oz based on the proximity to Goldcorp and their facilities. The infrastructure is very good. The company is in no need of financing anytime soon and there is a strong potential for further discovery."

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