Exclusive Interview with Mr. Peter Grandich - July 2007

Labeled the Wall Street Whiz Kid, Mr.Grandich gained national notoriety by being among the very few who not only forecasted the 1987 stock market crash just weeks before it happened, but on the very next day he predicted that within a year the market would reach a new all-time high – which it did. Proving his 1987 forecast was no fluke, Mr. Grandich said in January 2000 that the year 2000 will go down as the year the great mega bull market of the 80s and 90s came to an end. Grandich is the founder and managing member of Grandich Publications, LLC. Grandich Publications publishes The Grandich Letter. First published in 1984, it provides commentary on the mining and metals markets. In addition, the company also provides a variety of services to publicly-held corporations on a compensation basis. In addition, Grandich is a member of the National Association of Christian Financial Consultants, and a long-standing member of The New York Society of Security Analysts and The Society of Quantitative Analysts.

Me: I’m sure you probably get hundreds of resource companies that pitch presentations to you, so please give me 3 tools or criteria you utilize to screen out the weeds from the flowers.

Mr. Grandich: The first thing I look at is history of management. No single factor is more important in the junior resource game. Then, it’s the projects themselves. Finally, the share structure, especially paper due to come free trading/warrants etc. are also key factors.

Me: Can you please summarize you’re present views regarding resource stocks and the sector in general?

Mr. Grandich: I remain very bullish towards precious metals but believe base metals are fully valued overall. Gold continues to be the safest bet, albeit it may not go up the most. A declining U.S. Dollar, the inability for a group or groups to continue capping the gold price much longer and geopolitical concerns worldwide are all bullish factors for gold.

Me: If possible can you please highlight one sector among commodities (eg. it can be uranium, nickel copper etc.) that you believe to be overbought and due for a correction and one sector that you believe to be oversold and due for a bounce.

Mr. Grandich: Uranium could pull back to $100 or below but longer term still looks attractive. Silver could surprise by leading gold in the fall.

Me: Lastly, if there was only one stock or asset class you could invest in (has the best risk to reward ratio in your opinion) for the next year which one would it be and why (2 reasons for owning it will do fine)?

Mr. Grandich: I believe, Northern Dynasty Minerals is by far the most undervalued mining stock in the world today. It's by far my largest personal holding and I receive compensation from other companies that share the same management team as NDM.