ENTREE GOLD, symbols:  “ETG” on the TSX, “EGI” on the NYSE, current price .52 cents, is a Canadian exploration mining company with two projects that in our opinion offer extraordinary commercial potential. One project is located in Mongolia and is in one of the largest copper properties in the world. The second major project is located in Nevada.  Entrée’s resources are already substantial and we see a strong likelihood of much greater expansion.  The company has a very high asset value per share using a very conservative valuation method.   Management owns 3% of the shares and has been recent buyers.

What we find as convincing is the fact that two mining giants own large positions in Entrée. Rio Tinto owns 12% of the Entrée’s shares with Turquoise Hill holding 11% of the shares.  Several large Canadian funds own approximately 27% of the outstanding shares.

Selling far below this year’s price high of $1.70 and 2011’s high of $3.59, Entrée’s current price weakness may be an opportunity. Entrée has no debt and cash position of $7,675,562.

In our opinion, some of the company’s recent price weakness is due to the Mongolian government’s attempt to raise its’ tax rate. With a population of 3 million and an ongoing need for capital investment, we feel that Mongolia would be very imprudent to raise its’ tax rate. Entree’s share price weakness may justify consideration.

NIOGOLD, symbol “NOX”, .31 cents, is a Quebec based exploration company that has what our analysis indicates is a superb production potential in a historically prolific mining area of Quebec. Of primary interest to us is their joint venture partnership  at the Marban project with Aurizon Mines. Currently, Niogold has a large cash position and experienced management. In our opinion, NOX offers substantial potential for capital gains. Insiders hold large positions in the shares with no insider selling  recently. Note well that their Marban project already has over 1.5 million ounces of indicated resources with our expectation that more will be proven over the next six months. Niogold’s current cash and cash equivalents is over $ 4 million.

The current market malaise and we assume investor frustration with the overall market has created recent share price weakness. Yet, our analysis suggests that a proper minimum valuation for Niogold share price would be in the range of .70 to .80 cents-today! That is without consideration of future exploration success. At under .40 cents a share, our analysis finds it to be very undervalued.