Emgold:
EMR - V (Toronto Venture Exchange) Price: 12 cents Target Price: $6.67

Kenneth J. Gerbino
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Kenneth J. Gerbino & Company
Dec 12, 2007

We own a substantial position in Emgold for all clients and the Gerbino Gold Group LLC. Emgold is in our opinion one of the best values in the mining sector. It is undervalued and underfollowed. The Idaho Maryland mine when placed back in production should be one of the top 15 largest gold mines in North America and one of the lowest cost producers.

• At full production of 2300 tons per day the mine should produce 350,000 oz. of gold annually
• Our estimated annual pre tax cash flow is $147 million
• IRR 74.5%
• They should have their permitting completed by 2nd Q 2008
• Five of five of the City Council are pro business
• Substantial technical work has been completed on the mine data inputs from thousands of old drill intercepts and maps. This indicates hundreds of more resource blocks and targets to be evaluated.
• They recently completed an $8 million funding
• RAB Capital, a billion dollar and well respected London resource fund is now the largest shareholder of Emgold.
• When mining takes place, the waste rock can be sold as aggregate for $9-10 per ton. This could be a substantial credit against mining costs.
• The company could be in production by the 2nd Q of 2010
• Our estimated production costs are $217 per ounce

Our target price at $700 gold is $6.67 per fully diluted share.

We are assuming:

1. 2300 tons (2000 lbs per U.S.ton) per day production
2. 95% recovery factor
3. Annual production of 350,000 oz.
4. A grade of .44 oz per ton (U.S. short ton - 2,000 lbs)
5. Zero credits for aggregates and $50/ton trucking charge for waste rock
6. $150 million capex
7. Fully diluted all in shares outstanding at production of 330 million shares
8. Cash flow after tax of $.33 per share at full production in 2011.
9. At a 20 multiple of cash flow the price target is $6.67 per share.

Note: Kenneth J. Gerbino & Company owns substantial shares of Emgold. This report has forward looking statements and we seek safe harbor. All information is speculative in nature and this security is for speculative and aggressive accounts only.

Nov 25, 2007
Ken Gerbino


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Kenneth J. Gerbino & Company
Investment Management
9595 Wilshire Boulevard, Suite 303
Beverly Hills, California 90212
Telephone (310) 550-6304
Fax (310) 550-0814
E-Mail: kjgco@att.net
Website: www.kengerbino.com

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