sierramadre

By James O'Rourke - May 16, 2008

Investors in resource stocks should be aware of the significance the Sierra Madre Occidental Range in western Mexico presents for exploration companies. Home to large multi million oz gold and silver deposits, companies such as Minefinders, Alamos Gold, Gammon Lake, Goldcorp, Agnico-Eagle, among others, are active in this geological region considered to be the largest epithermal precious metals region of the world. With production from the area of approximately 40 million ounces of gold and up to 2 billion ounces of silver over the last 400 years the, Sierra Madre Occidental Range has become an area of global focus in the search for new precious metal deposits. This presents tremendous opportunity for exploration/mining companies and their respective shareholders.

The regional distribution of epithermal deposits in Mexico, as well as deposits belonging to other deposit types (Sn veins, skarns, etc.), indicates they are closely associated in space with regional faults. The most prolific region is that of the Sierra Madre Occidental, a mountain range in western Mexico and the extreme southwest of the United States which extends 1500 km from southeast Arizona (south and east of Tucson) southeast through eastern Sonora, western Chihuahua, Durango, Zacatecas, Aguascalientes to Guanajuato, where it joins with the Sierra Madre Oriental and the Eje Volcánico Transversal of central Mexico. These mountains are generally considered to be part of the much larger American cordillera.

Full version of this report has expanded insight into the geological interpretation of the Sierra Madre Occidental and notable participants in the region. This is the abridged version, however information mirroring the geological interpretation described may be viewed here.

Immense potential exists for resource companies with strategic holdings within the Sierra Madre Occidental belt

Case Study Yale Resources Ltd. (TSX-V: YLL)

Yale Resources' Urique Project is in close proximity to neighbouring large established resource laden gold and silver projects that share the same stratigraphy. It is not unreasonable to expect Yale to have a major gold-silver find in its future considering what they already know of the surface grades, geophysics, history, neighbours, location and size of Urique.

Yale's Urique Project, in the highly prolific Sierra Madre Gold Belt, boarders Goldcorp's El Sauzal Mine (2.1M oz Au) to the south and Kimber Resources' Monterde Mine (0.8M oz Au, 45M Ag) to the north. Yale has identified quality targets at the Urique Project related to large mineralized hydrothermal systems that have the potential to host bulk mineable resources.

Numerous plus-one million ounce gold deposits have been discovered in this 300 km long region of southwestern Chihuahua: including Mulatos (Alamos Gold - proven & probable reserve of 2.1 mill oz gold, 268,000 oz gold mined: Q3 2005 -- Dec 31, 2006), Dolores (Minefinders - 3.7 mill oz gold measured, indicated & inferred), Ocampo (Gammon Lake - 4.4 mill oz gold measured, indicated & inferred ), as well as the El Sauzal mine (Glamis Gold, now part of Goldcorp Inc.) and Palmarejo-trogan (Coeur d'Alene, 1.14 mill oz gold measured, indicated and inferred).

Yale has a monstrous 290 Sq km property with over 30 previously mined locations on the property. Historic workings are from the periods stretched over 400 years of mining history on the property (dating back from the Spanish to the early 1900’s, and 50’s, 60’s). The old timer’s technology dictated they could only take the highest grade material - from a mining standpoint to the recoveries, recoveries being key; they typically only dealt with the oxide portion of the deposit. Many times in Mexico old-timer mom & pop operations reach the water table and they’ve stopped mining because they didn’t have the technology to recover metals from the sulphide portion of the ores.

On such a large land package in such a prime location there is immense potential for new discoveries over time, but the focus is to prove up technical successes on the current established targets; Yale has recognized 10 different target areas and from a company standpoint they always have to manage the properties such that they are mitigating the risk – they always want to have properties that are more advanced and they are always preparing to bring lesser advanced properties into the Company creating as they go a growing value added portfolio, back-up plans, and exit strategies. The current target areas of Urique that Yale is currently looking at are only a few square kilometres in area out of 290 Sq Kms; they’re dealing with a small portion of the whole property, the Urique project will continue to provide new opportunities for many decades.

Investment Valuation Alert #264/Special Situation Advisory - Yale Resources Ltd (TSX-V: YLL chart news):

Yale Resources possesses several exploration projects in the Sierra Madre Occidental Belt which they have brought to varying levels of development and are at a point where results on 3 key fronts and near term catalysts make YLL.V an undervalued and exceptional risk-reward scenario.

1) Gold-Silver at Urique North: Yale has just completed a 1,500m drill program and results are expected back from the lab within days. Yale Resources has intersected target breccia on numerous holes - of which contents are visually similar to surface exposure, in each hole. With the drilled Cero Colorado target at Urique North being proved to have similar mineralization at depth as at surface, the potential to define a significant deposit becomes increasingly probable. Ian Foreman, P.Geo., President of Yale Resources, recently commented on the Urique North drilling; "We’ve proven the size potential – now we’re waiting on assays". The drill campaign at Cerro Colorado covered 2 km of strike length and connects two previously mined areas; Mina Guadalupe, with surface samples of 5.46 g/t gold and 36.0 g/t silver over 9.1m and El Vergel, which returned grades of 2.23 g/t gold and 150.0 g/t silver over 3.0 m. The San Pedro target successfully intersected the designated target -- 31 metres of strongly altered andesite (host rock to Goldcorp's 2.1M oz Au El Sauzal Mine) hosting a quartz stockwork and numerous veins. All assays are pending. Yale assayed surface samples at the San Pedro target of 27 g/t gold and 482 g/t silver in addition to a vein that is 1.1 meters in thickness that graded 35.3 g/t gold and 400 g/t silver.

2) High silver values "8 kilos silver per tonne" at Urique South: Phase II field work is currently underway at Yale's El Rosario target area, an area at which sampling yielded significant values as much 10.6 g/t gold and an astounding 8,290 g/t silver from a 10-40 cm wide veins. (see May 9/08 release). A field crew has returned to the El Rosario target to continue mapping and sampling in preparation for a planned drill program later this year. This area comprises a zone of strong silicification in andesite host rocks that measures approximately 100 metres wide and over 400 metres long. The zone is host to multiple historic mines and prospects that exploited a system of high grade veins. The target area is open at depth and along strike and has never been drilled.

3) Very large copper mine potential at La Verde: Yale's 100% owned La Verde Project is host to six known historical deposits of copper, silver, zinc and gold that have seen limited production. The largest is Yale’s La Verde Grande Mine site where YLL.V's 2007 geological mapping and sampling program has shown the deposit to be larger than historic data indicated. Conceivably the large historical (non NI43-101) copper resource deposits may be brought current, expanded on, and conceivably be brought to near term open-pit production status. Yale has averaged 1.54% copper, 57.9 g/t silver, 1.32% zinc and .12 g/t Au from 181 samples taken over 500 meters of workings; YLL has duplicated old assay results with great success in various areas of La Verde, currently has geologists in the field conducting ongoing geological mapping and sampling, and believes the potential exists for a multi-million tonne Ag-Au-Cu-Zn open-pit mine.

Shares outstanding: 34,801,879

Price/share: CDN$0.22 (May 15, 2008)

Exchanges traded & symbol: TSX Venture Exchange: YLL, OTC Pink Sheets: YRLLF, Frankfurt: YAB

Supplementary independent insight and DD on Yale Resources: •Analysts Report on YLL, •Mining Journal Review on YLL, •Review by Proprietor of 321gold after tour of Yale properties, •Yale Resources Corporate Website

Excerpts from review by mining expert Bob Moriarty's recent visit to Sierra Madre belt to examine Yale Resources' properties:

1) “The Urique property is in the middle of the prolific Chihuahua-Sonora gold belt (part of the Sierra Madre Occidental), bordered by the Goldcorp's El Sauzal 2.1 million ounce mine on the south and Kimber's 45 million ounce silver. 8 million ounce gold deposit on the north. ... Yale is at the stage where the rubber meets the road. Geophysics and surface mapping indicate a 2.5-kilometer long, 2 to 9 meters wide structurally-controlled breccia area hosting 2 sets of prior historical workings. The target is called the Cerro Colorado target and drilling began early this month. Chip samples returned grades of 2.2 g/t gold and 150 g/t silver over 3 meters and 5.46 g/t gold and 35 g/t silver over 9 meters from another zone. ... This is the sweet spot of investing when you are buying juniors. They are lottery tickets. It is gambling. But the best time to buy the tickets is just before the balls pop out. At least you know if you win or lose. Yale is in the midst of a 1500-meter program in 12-13 holes. Some holes are already in for assay and I'd expect results in 2-3 weeks. Should the drill results match the chip samples, Yale is going a lot higher and quickly...”

2) “In mid-2007, Yale agreed to pay $1.6 million for a 100% interest in the 300 hectare La Verde property. Ian has staked an additional 2,000 hectares surrounding the original La Verde project. ... The property has 5 known past producing deposits of silver, zinc, copper and gold. It has an historic resource of about half a million tons of over $200 rock. Yale has averaged 1.54% copper, 57.9 g/t silver, 1.32% zinc and .12 g/t Au over 181 samples taken over 500 meters of workings. ... Yale's team wants to increase the tonnage through drilling to around 2 million tons and then go into production. ... the idea of putting this puppy into production is brilliant. ... I've said it before, I'll say it again, anyone not planning on production at these prices should be using the land for moose pasture, that's all it's good for. Yale still has a tight share structure. If Ian could get this into production, he could use the cash flow to finance further exploration. That's simply brilliant and what every junior should be striving for.”

Full copy is available at http://www.321gold.com/editorials/moriarty/moriarty042308.html .

Mining in Mexico - a stable and friendly environment for mining companies to conduct operations;

Political and financial stability, legal security for investors and its location next to one of the worlds top importers of resources are all positive factors impacting Mexico's mining industry. Under the Mexican constitution, minerals are part of the national patrimony.

The exploration, exploitation and beneficiation of the minerals will have preference over any other use for the land.

Except for hydrocarbons, radioactive materials and salt, which is formed by evaporation of brines from playas, the law permits up to 100 percent private ownership in equity exploration, development and production of mineral substances.

There are no limits for the mining concession surfaces. Production concessions are awarded for 50 years and are renewable for a similar period.

Asociación de Mineros de Sonora AC (AMSAC) - Mining Association of Sonora: http://amsac.com.mx/

Mining Directory of Mexico, mining companies, supply companies: http://www.imdex.com/

Disclaimer & Disclosure: The information contained herein is believed to be accurate but this cannot be guaranteed. The analysis does not purport to be a complete study of securities and issues mentioned herein, and readers are advised to discuss any related purchase or sale decisions with a registered securities broker. Companies mentioned herein may be very early stages of development and thus can therefore be subject to business failure, and are to be considered speculative and high risk in nature. Reports herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned. The author may or may not hold a position (long or short) in the securities mentioned herein. This is a journalistic article and the author is not a registered securities advisor, and opinions expressed should not be considered as investment advice to buy or sell securities, but rather opinion only. The publisher may make take journalistic liberties employing the use of pseudonyms as reference contacts and accepting information at face value from what it believes to be credible sources. Further disclaimer and disclosure regarding various aspects of this report / article including compensation and other points may be seen at http://www.madisonaveresearch.com/disclaimer.htm.