MANICOUAGAN MINERALS INC MCOUF

MAM - EXCEPTIONAL APPRECIATION POTENTIAL

[SGGroup]

Rays Of Light - The Capitulation Phase The Big Picture - Birth Of A New Exploration Issue Cycle MAM - Exceptional Potential For Appreciation MAM's resource calculation should be released shortly with a value of 45 cents per share. With further potential on Brabant Lake and Mouchalagane holding potential for valuable discovery the shares have obviously been jettisoned by Small Investors participating in the capitulation phase. MAM is 'Very Significantly' undervalued and holding excellent potential for appreciation in a recovery. These thoughts substantiate a market opinion....... ---------------------------------------------- Today's (Monday) general market weakness has resemblance to 'The Capitulation Phase'. This is where discouraged investors worn out by a six month long decline throw away their shares at any price regardless of value. It's a survival strategy to withdraw remaining capital before all is lost. Booking losses or taking profits, the underlying purpose is relief from the emotional stress of continual decline not knowing where it wil end. There is no road map to guide us in the markets with any certainty and we all succeed or fail based upon 'Value' (Or the absence of it) and market timing. Exploration issues march to the tune of the Small Cap Indices, something between the Toronto Venture Exchange and the Toronto Small Cap Index both of which show dismal perofrmance in recent months. So where does it end? The emergence of this 'Capitulation Phase' leads me to a new chart interpretation of the Indices that we are in a final phase of the decline for Small Cap issues. Gold exploration, Silver Exploration, Uranium Exploration, and Base Metals Exploration issues are all 'Washing Out' here in the final phase of a decline. 'An Explorer is an Explorer', and they have all been out of favor for a good while. There does appear to be resolution of the Small Cap exploration issue decline marked by an A-B-C correction within an ongoing Bull Market for the Toronto Venture Exchange. It's quite a substantial decline, but we are in the final phase. The first decline started in July and ended in August. This second decline started in November. Each of these two major declines has two parts and the second phase within the second decline started in January. It should be brief and sharp, characteristic of corrections within a Bull Market. Where will it end? That may be undeterminable, but positive divergences are appearing lending credence to thought that this is the last phase of the decline. Support starts at 2,400 on the Toronto Venture Exchange and extends all the way down. The decline is coming to an end shortly. XAU INDEX - THE CENTER OF THE UNIVERSE - The XAU Index convincingly broke out of a decade long base in November. In December, we successfully tested the very top of the base at 158 and soared upward in a powerful but brief advance. WE ARE COMING BACK TO TEST THE 158 LEVEL AGAIN. Equally good, would be a fall to 150 for the XAU Index and that is a major support level. Expect either level to hold and that should coincide with a bottom for the Toronto Venture Exchange. The XAU Index was throwing off divergences just a week ago, but not a major sell signal. This is a second test of the 158 level and reaching 150 will be apenetration of the base just as good as holding at 150. That should coincide with an end of a vicious A-B-C decline for the Toronto Venture Exchange. Supposing the XAU Index goes lower? We still have e terminating decline in the small cap exploration sector and the Toronto Venture Exchange. People don't like indecision, but there are limitations to what Technical Analysis / Charting can deliver. Either way, 158 or 150 in the XAU INdex should be solid support and the bull market has not gone away. Experienced investors filter out the emotional aspects of investing and concentrate on value. For most investors, it may be too late to do anything other than ride it through. By all appearances, we are coming to an important bottom for the Exploration Sector and this is the time to become bullish. This is painful to investors, myself included, but I'm reasonably sure that we are about to see 'The Birth Of A New Cycle' in the Junior Exploration Sector. Specifically regarding MAM, a resource calculation should be released shortly with a value of 45 cents per share. With further potential on Brabant Lake and Mouchalagane holding potential for valuable discovery the shares have obviously been jettisoned by Small Investors participating in the capitulation phase. MAM is 'Very Significantly' undervalued and holding excellent potential for appreciation in a recovery. A bottom will be here shortly.