Rubicon Minerals

President Obama and Nancy Pelosi, the Speaker of the House, will soon be forced to create equilibrium between the following:

Whose brain is big enough? Surely the country needs the best brains. Unfortunately, Bobby Fisher is dead, Miss Polgar, the female world champion, is Hungarian, so is George Soros.

At least Robert McEwen is Canadian.

Rubicon Minerals is a gold exploration company which by definition engages in the acquisition, exploration and development of gold and base metal deposits in North America. Its holdings are in three geographic areas.

Rubicon Minerals Corporation, a gold exploration company, engages in the acquisition, exploration and development of gold and base metal deposits in North America. The company controls approximately 180,000 acres of prime exploration ground in the prolific Red Lake gold camp of Ontario, which hosts Goldcorp's Red Lake Mine. Its flagship property is the 100%-controlled Phoenix Gold Project, located in the heart of the prolific Red Lake gold district of Ontario. The company also holds 512,960 acres of prospective exploration ground in Alaska in the area of the 5.6 million ounce Pogo deposit, as well as a 225,000 acre land package in northeast Nevada. Rubicon Minerals Corporation was founded in 1996 and is headquartered in Vancouver, Canada.

Rubicon has 160 million fully-diluted shares. The stock is selling at $1.00, down from it's all-time high in 2008 of $2.05. The company has approximately $18 million in cash, of which $12 million may be spent in the next twelve months.

Rubicon is in the midst of completing a public offering of $12.5 million, partially in Canadian dollar deposits of $1.10, or $.94 U.S., for American and other stockholders, and $7.5 million flows through paper which contains an option.

The company is connected with Robert McEwen, the original founder and former chairman of Goldcorp. Mr. McEwen's holding company, McEwen Capital, owns 31 percent of Rubicon's shares. The chairman, Mr. David Adamson, and other directors own a meaningful amount of shares as well as some key institutions, which is presented in the following table.

A most important feature of Rubicon is its current holdings of Red Lake Properties. The importance and the significance of the Red Lake Holdings is presented
in Table A.

Table A    

The valuation of Rubicon is relatively intriguing. In the following table, we attach values to the three territories and make an estimate of future production at a theoretical $1,000 per ounce level. It is obvious that if we assume that the money for the development of the Red Lake property is fully available, the eventual picture would indicate that we are dealing with a vastly undervalued stock. Being undervalued in the commodity field, in the mining field, is now quite common. The commodity market basically collapsed in the second half of 2008, to be followed by a decline in the first half of 2008.

Rubicon is interesting when we look at the future and when we put the Rubicon picture into our valuation of the U.S. dollar and gold, and suddenly a new picture would emerge which is interesting for current investors.

Talking of the Red Lake property, it should be mentioned that it was discovered by Goldcorp. under the chairman of Robert McEwen, and it has produced 20 million ounces of gold and is Canada's largest producing and lowest cost mine. The discovery of the Phoenix Gold Project reported numerous high-grade gold intercept, including 26.0 ounces per ton of gold over 6.6 feet, 10.55 ounces of gold over 5.9 feet, and 1.53 ounces of gold over 24 feet, and 2.13 ounces of gold over 9.8 feet.

Currently, Rubicon has the largest land position in this prolific area. Simultaneously, Rubicon has the largest land position in Alaska which surrounds the 4.5 million ounce Pogo mine, and a large position in Nevada.

Since the most practical evaluation of Rubicon is to evaluate the future of the Phoenix gold discovery of Red Lake, Ontario, there has been a final announcement on October 30, 2008, of the current state of affairs, which we reproduce for the most accurate interpretation.

We consider that by the end of the expected offering, the company would have about 180 million shares outstanding, which at $1.00 U.S. level represents $180 million. We project that the production of gold will start in 2010 and build up in 2011 and 2012, and the numbers will grow continuously. Furthermore, it is valued that the company, while in production, would have a reserve of at least one and a half million ounces of gold.

If Rubicon produces 100,000 ounces of gold a year, the million dollar reserves may be valued between $200 and $250. A valuation of the Red Lake property is presented in our picture. When we enter the valuation of the Alaska and Nevada properties, the total number would of course increase accordingly.

While this title may be long, the process by which we arrived at what we describe is our own and is the result of interpreting the current events in the international marketplace.

With the next dollar crisis, and I feel there will be a crisis as early as 2009, the price of gold can go up towards the $2,000 level. This would highlight the rearrangement of the gold and silver market and gold and silver shares in the United States, Canada and Australia, and as a result market prices would increase substantially.

Considering that the cost of mining gold in North America is now more than $400, the production in the last two years has declined. At the same time, when we see the price of gold going towards $1,500, production cannot increase substantially because of other reasons, but the valuation of the would-be producers such as Rubicon would be at a different level than it is today.

I have actually recommended to leading politicians to have in Congress a hearing on the importance of gold out the dollar denominated panic. Our principal assets, the U.S. dollar, is being threatened and one alternative to strengthen our resources and our country is to monetize gold. It so happened that I recommended Mr. Robert McEwen, a 31 percent owner of Rubicon, to be invited to that hearing.

It is to be considered that Rubicon is a worthwhile speculation, even at the current price. It is one of the few listed American or Canadian companies that will produce gold in the not-too-distant future, has substantial reserves, and its valuation can increase.

At the same time, I am also pointing out to the readers of this presentation that a major change in the dollar, in gold, and the combined interpretation in light of the American reserve position and future, is going to be re-evaluated. If so, the importance of Rubicon would change for the better and it would be one of the few companies which will serve in the next ten years in a climate where the American gold reserves and production is an important part of the future of our country.