A NATIONAL TREASURE AND A WORLD NEED

Mosquito Consolidated Gold Mines Limited MQCMF (TSX-V: V.MSQ) $0.99 NASDAQ bulletin board Trading Symbol: MQCMF Market-cap $64 million Quote of Note: “Mosquito is also continuing to negotiate with parties interested in partnering with Mosquito on funding the ongoing development of the CuMo project.” * Recent 2010 core drillings expanded CUMO by a third of a mile.* Press release 8/17/2010 Below the hilly landscape of southern Idaho lies a yet untapped gargantuan deposit of molybdenum and other minerals said to be worth as much as $80 billion. In fact, its entire footprint is yet to be fully determined as it is only 25% explored. (Now expanded –see press release*) As it is, and it’s said by the London Times to be the world's largest still undeveloped molybdenum deposit, this treasure will bring untold billions of dollars to not only the United States and Canada, but certainly specifically to the state of Idaho and its environs. Most importantly, the massive infusion of money into that poor county in Idaho will occur long before Mosquito will see any output from the mine as these massive projects take several years to begin production. The positive economic impact to the region will be profound and lasting; indeed billions will be spent there. Talk about a stimulus plan―this is a REAL stimulus plan. In these days of deep uncertainty, economic stagnation and high unemployment the development of this major resource will inject a continuum of huge funding to a mining-friendly region in Idaho where unemployment is high and the region’s largest mine, the Thompson Creek mine TC NYSE is nearly played out after 30-years of production. From what I hear miners from the region and its adjoining states are said to be making plans for a new “forever” job at the site. The importance of this mining project, to not only Idaho, the United States and Canada, but globally cannot be understated; it's indeed an astonishing resource in a world where molybdenum use is growing by orders of magnitude. Think China, that is a major importer of molybdenum and all their steel needs and all the new uses; like those in desalination and nuclear facilities that have beginning to manifest in the metals use. And, by the way it’s not recyclable. Key in the Mosquito story is that its veteran management is experienced, savvy and has the skills to parlay this project to its next level of a major financing. Evidenced by the fact that China-based INTERNATIONAL ENERGY AND MINERAL RESOURCES INVESTMENT COMPANY LIMITED and Ivy Mining, another China controlled company, have already acquired about 21.01% ownership of MQCMF in June 2009 lends credence to the proposition that management has the necessary acumen to achieve this kind of deal; And I believe that there is another whopper of a deal to come. I’ve met Mosquito’s CEO Brian McClay and he’s a boots-on-the-ground guy, a second generation miner who has 40-years of mining experience and knows the value to the world and to “his” shareholders of this enterprise. Mosquito’s management, having already defined the huge size and the richness of its ore body, is well along in spreading the word; and from what I've heard the biggest mining companies in the world and important international players are now aware, and becoming more aware, of its scope and value. Key public disclosures relating to the mines size and concentrations of mineralization has already been completed; referred to as Ni 43-101, Canada's necessary public disclosure.** I’m reminded of Ivanhoe Mines IVN and their Oyu Tolgoi world’s largest copper-gold development project, located in Mongolia 80 km north of the China border. I visited the mine site several years ago on a couple of occasions with a group of major international institutional investors. At that time (IVN) was well into their exploration with core drillings and they had an already extensive outline of the resource and its concentration of gold and copper. Many market entities didn't believe the gold and copper were there, that they’d be unable to finance it and that they basically couldn't pull it off even if the gold and copper were there. Now of course, it's a huge success and Rio Tinto RTP the world’s second largest mining company owns about 29.6% of the project. It should be noted that Oyu Tolgoi is now well into development with over $1billion “spent” in the ground to date. Before it's finally operational there will be well over $4.6 billion spent in capital expenditures there. It’s been a huge boon to the Mongolian people and their economy already. Just imagine the impact of this project on Mongolia's 2.5 million people. And of course, much like Mosquito's CUMO project it will be some years before the money flows to Ivanhoe Mines. (IVN)’s Market cap is $7.6 billion. * Recent 2010 core drillings have just been announced (8/17/2010) and the southern boundary of the resource has been expanded by a third of a mile. This new exploratory hole confirms yet more “pay-dirt” in the ground and adds a massive increase in the perimeter of the indicated resource. The already huge dimensions of CUMO continue to expand and obviously it multiplies by an enormous factor the value of the Mosquito’s asset. Think Archimedes... who proved that the area of a circle was equal to π multiplied by the square of the radius of the circle. The surface area and volume of a sphere change disproportionately with radius. http://www.mosquitogold.com/s/NewsReleases.asp?ReportID=414942&_Type=News-Releases&_Title=Mosquito-Starts-2010-drilling-program-With-Hole-10-55-a-560-meter-step-out- ** The Ni 43-101 disclosure states Mosquito holds confirmed resources of 4.13 billion lbs molybdenum oxide - 5.43 billion lbs of copper - 234.6 million ounces of silver – and 282.4 million lbs of tungsten. The molybdenum and other mineralization are said to be worth perhaps as many as $80 billion. With a discounted present value of $16 billion (using a 40-year mine life at 150,000 tons per day) the CUMO mine appears to be able to produce for somewhat over 100-years. Molybdenum Molybdenum demand is expected to increase between 5-7% annually during the next decade with demand forecasted to outstrip supply for several years to come. Global demand calls for an additional 21 million lbs by 2011, rising to 85 million lbs by 2015. Also key is that global inventories of molybdenum are very near historic lows and there is a supply deficit. In January, JP Morgan analysts said they saw a likely rise of 55% in molybdenum prices by Q4 2011 ― to a possible $24. Back to Mosquito * Mosquito’s wholly owned Idaho-based CUMO deposit is thought to be the world’s largest still undeveloped molybdenum deposit (according to a London Times article reported by Dow Jones on 1/19/2010. Molybdenum Primer Molybdenum [Mo, atomic number: 42] is a refractory metallic element used principally as an alloying agent in steel, cast iron, and superalloys to enhance hardenability, strength, toughness, as well as wear and corrosion resistance. Ideal for tough environments where heat, pressure and corrosion are factors, it makes steel stronger and lighter and makes stainless steel more resistant to corrosion. Due to its low-toxicity it’s used as catalyst in energy production. Molybdenum currently trades on the London Metals Exchange. Also Of Note: The fourth-largest primary molybdenum mine in the world, The Thompson Creek Mine, [75% owned by Thompson Creek Metals Company Inc. (TC) NYSE] is the largest mine in Idaho and is located about 60 miles from Mosquito’s CUMO asset. The market cap of (TC) is $1.3 billion. I have purchased shares in Mosquito Consolidated Gold Mines on the open market. I strongly encourage you to spend some time on Mosquito’s website, which is extremely comprehensive. The corporate presentation, fact sheet, and the CUMO interactive models are particularly informative and engaging in viewing the scope and size of the project. http://www.mosquitogold.com/s/Home.asp For my list of Best Ideas for 2010 please send an e-mail request to: Dr.Faessel@onthemar.com Written by Dr. John L. Faessel