Carpathian Gold Inc.2,3 (TSX-CPN)

Rovina Yields More Impressive Infill Drill Results

This morning, Carpathian Gold released results of two additional deep drill holes completed on its 100%-owned Rovina Valley gold-copper project in Romania. The Company is in the midst of a 35,000-metre infill and delineation drill program, primarily focused on upgrading the existing Inferred Resource and defining the limits of the Ciresata underground deposit. The 2011 infill program is a follow-up to three deep holes drilled in late 2010, which were successful at extending mineralization 280-300 metres below the resource envelope. The first hole of the current program, which was announced in early January, as well as those included in today’s release has corroborated the previous ones.

Hole RGD-21, which was collared on the northwest edge of the deposit, returned the following:

• 603.0 metres grading 0.94 g/t gold and 0.20% copper, starting at 170.0 metres down-hole, including 482.0 metres grading 1.06 g/t gold and 0.21% copper.

Hole RGD-20, which was collared at the southern edge of the known mineralization, in an area with little drilling, returned:

• 240.0 metres grading 0.81 g/t gold and 0.16% copper, starting at 310.0 metres down-hole and including 76 metres grading 1.01 g/t gold and 0.17% copper.

Mineralization at Ciresata remains open for expansion along strike and at depth. Two more rigs are scheduled to arrive in the next 3-4 weeks, adding to the two already there.

Ciresata is estimated to host an Inferred Resource of 101.3 million tonnes grading 0.90 g/t gold and 0.17% copper. Two other open-pittable deposits, Rovina andColnic, add a combined 193.1 million tonnes of Measured and Indicated Resources averaging 0.50 g/t gold and 0.18% copper, plus an Inferred Resource of 76.3 million tonnes grading 0.39 g/t gold and 0.17% copper. In total, Rovina Valley hosts 7.0 million oz contained gold and 1.44 billion lb contained copper, making it one of the largest undeveloped gold-copper deposits in the world.

We continue to recommend CPN as a SPECULATIVE BUY, with a 12-month target of C$1.25. Our target remains conservatively based on US$75/oz gold resource, discounted by 25% in the case of Rovina Valley, to recognize perceived geopolitical risk.

CANADA FLUORSPAR INC.2,3 (TSXV-CFI)

Fluorspar Industry Update: Delay in Fluorita de México S.A. de C.V.’s Capacity Expansion

Mexico’s second largest producer of low arsenic acid grade fluorspar, Fluorita de México S.A. de C.V., is suspending its planned 20% to 30% acid grade production expansion due to damages caused by Hurricane Alex in July 2010. Apparently, a good portion of the roads around the mine site have not been repaired since the Hurricane tore through the Northeast of Mexico during the summer of 2010. Fluorita de Mexico had originally anticipated bringing the new production on line by the end of 2010.

Fluorita de Mexico originally announced its plans to increase its Company-wide capacity in early 2010, on the back of new mining concessions in Northeast Mexico. The lands covered under the concessions span an area of approximately 30 square kms and are estimated to contain ~10 million tonnes of fluorspar reserves. The expansion was expected to increase Fluorita de Mexico‘s aggregate annual capacity by 30,000 to 40,000 tonnes per year to between 170,000 and 180,000 tonnes of acidspar per year.

Acid Grade Fluorspar Producers in Mexico

Source: Global Competitive Analysis and Risk Assessment Study (Natalie P. Smith), Industrial Minerals, and Jennings Capital Inc.

The majority of Fluorita de Mexico’s acidspar is exported to the U.S.A. or Europe, or sold domestically for the production of aluminum fluoride and hydrofluoric acid. This is in contrast to Mexico’s largest acid grade fluorspar producer, Mexichem S.A.B. de C.V., who has made significant strides to move further downstream into the fluorochemical business.

As we have discussed in the past, Mexico’s ability to continue to offset lower Chinese exports is somewhat limited because a sizable and growing proportion of Mexico’s acid grade fluorspar production is being used domestically, as the country’s largest fluorspar producer, Mexichem S.A.B. de C.V., moves into higher value fluorspar-derived products (such as hydrofluoric acids and aluminum fluoride). If we exclude Mexichem’s estimated annual production of ~580,000 tonnes, Fluorita de Mexico’s expansion would represent ~20% of Mexico’s acid grade production.