Renaissance Oil Corp. RNSFF

SGGROUP''s MARKET OPINION ON EXPLORERS

[SGGroup]

Thought to share my market opinion on Gold with fellow SAN investors. Would you agree that the two metals have tendancy to perform similarly at times. SAN is very attractive here. ------------------------------------------------------ Of all my technical indicators only one has shown reliability to call tops, and it is again positive. It is a proprietary indicator because it was developed following a project spanning well over 100 hours and different programs several years ago. I have some good indicators not obviously known, but this indicator calls MAJOR tops for the XAU & HUI Indices and works well with a Gold Mutual Fund where most of my investments are held. It was developed to time important tops and does the task quite well. The recent correction in the XAU & HUI Indices was long enough to turn the indicator positive (Keep it away from a sell Signal). When it was updated today, it gratefully suggests that we have a fairly good ways to run. If I had strictly followed this indicator over the past several years, I would have been more successful with my Gold Mutual Fund Investments. True, one indicator is just that - ONE INDICATOR. There are disturbing divergences between Small Cap & Large Cap issues, but that could change. We all know that some day Gold issues will run almost unendingly, and that's something that investors should not miss and regret. So time should be allowed for the Small Caps to re-strengthen from the severe undervaluation and prolonged decline. We are either in a strong phase of an advance or at the end of an advance where Gold is preparing for another lengthy sideways consolidation. While my thoughts had been looking for a termination of the advance soon, the new change in the indicator's position suggests staying long. But what if the indicator is calling a first incorrect reading? Major support for the XAU Index is just 22% below the current price level at 150. After what we have seen a 22% decline is merely a sharp fluctuation. Corrections of 20% in the Major mining Indices are quite ordinary and we just finished one. It's the 40% corrections that worries me, not 20%. Small Cap issues are behaving much better. The Toronto Venture Exchange is not flying yet, but in recent days when U.S. Equities have fallen, the Toronto Venture Exchange rose. U.S. Equities are no longer crushing the Toronto Venture Exchange and that is a VERY POSITIVE indicator. We have to afford some patience for Small Cap Exploration issues because the Small Cap Exploration issues have been run thru the wringer. This slowly starting advance should strengthen. Over the next two years (Until 2010), there is a possibility of huge gains. Of course, there will be corrections, but following the previous cycle pattern, my portfolio had a gain of 800% from a bottom in July 2004 to the top in July 2007. The recent advance ended in July 2007, was a text book like 'Second Up Wave' and the incipient advance for Small Cap Exploration issues should be about as good. Perhaps I am foolish, but this developing 'Third Advance' for exploration issues may be bigger than anyone thinks. The poor sentiment towards exploration issues further supports this thinking. The basing pattern on the Toronto Gold Stock Index lends credibility to this thought. It's capable of supporting a very substantial rise. Strength should follow from the Toronto Gold Stock Index to the Junior sector finally spreading down to Grassroots situations. It does seem that we are in an advance that is about to include the micro - Junior sector.