RADAR SCREEN

Market Commentary
GLENN R. BROWN, Ph.D. 416.507.2336 gbrown@haywood.com DECEMBER 14, 1999

2000 San Joaquin Basin Update, Inca Pacific Resources

RADAR SCREEN WILL SUSPEND OPERATIONS FOR THE HOLIDAYS ON THURSDAY
DECEMBER 16, 1999. RADAR SCREEN RESUMES ON JANUARY 5, 2000.

World Markets
Bangkok SET 438.23 2.83 0.7% Gold $279.70 Zinc $0.537 Crude Oil $25.38
Hong Kong Hang Seng 16282.7 -159.41 -1.0% Silver $5.09 Copper $0.795 H.H. Gas $2.505
KL Composite 769.94 1.20 0.2% Platinum $447.00 Nickel $3.601 C$ 67.62 -0.02
Seoul Composite 1002.64 -11.01 -1.1% Palladium $418.00 Alum. $0.710
Shanghai B Share 36.37 -0.06 -0.2% Base metals are current LME prices. Precious metals are current
Singapore Straits Times 2369.25 -17.07 -0.7% prices US$. Crude and natural gas price for front month delivery
Sydney All Ordinaries 3108.1 -1.80 -0.1% (NYMEX). All other prices as of 0830 h EDT.
Tokyo Nikkei 18165.55 -39.53 -0.2%
Business Indicators
London FTSE 6694.1 -16.60 -0.3%
Joburg All Gold 1078.7 -7.70 -0.7% Dec. 14 Consumer price index for November: 0.1%. Consen-
B Aires MerVal 553.42 0.00 0.0% sus estimate: 0.2%. Prior report: 0.2%.
Toronto TSE 300 7768.17 -3.91 -0.1% Dec. 15 Industrial production and Capacity Utilisation for
Canadian CDNX 2163.3 62.30 3.0% November. Consensus estimate: 0.3% & 80.7%. Prior report:
New York DJIA 11192.59 -32.11 -0.3% 0.7% & 80.7%.
NASDAQ 3658.17 37.93 1.1% Dec. 16 Initial jobless claims for the week of Dec 11. Consen-
sus estimate: 290,000. Prior report: 293,000.(Bloomberg)

1. San Joaquin Basin Update

RICHARD ODDY, M.SC. (604-643-1189)

Bellevue 1-17R - A 24-hour clean-up flow was completed on Friday and Saturday, and the
Eel River operator now believes that the well is sufficiently cleansed to start the production-flow-test
Basin
program. As of Monday morning, the testing instruments were being put in place, and the
Sacramento
Basin
program about to begin. It is expected that the well will be allowed to flow for several days at
Sonoma various rates, then shut in to record pressure information. The total program should take
Basin about one week. Results could be announced in late December.
San Francisco
Berkley ELH #1 - The well is now drilling at 16,956 feet in cherty shales above
Half Moon
Basin
San Joaquin
the uppermost Temblor sandstone. The drilling rate is slow throughout the
Sa

Basin
cherty-shale section, but the top of the Temblor is believed to be only
nA
nd

100 to 150 feet from current depth. The sandstone encountered just
re

Bakersfield
as
Fa

Santa Maria
Basin
ult
above the casing point was probably the Devilwater Formation.
Ventura Basin Imperial
Los Angeles
Los Angeles Basin
Valley Berkley Cal Canal #1 - The production casing is being cemented.
Basin
The test program at Cal Canal may not begin until mid-January.
San Diego

Haywood Securities Inc. 11th Floor, Commerce Place, 400 Burrard Street, Vancouver, BC, Canada V6C 3A6
604.643.1100 Toll Free (CDA) 1.800.663.9499 Haywood Capital Markets Institutional Desk 1.800.944.4303 1
 RADAR SCREEN
Market Commentary
GLENN R. BROWN, Ph.D. 416.507.2336 gbrown@haywood.com DECEMBER 14, 1999

2. Inca Pacific Resources Inc.

JIM MUSTARD, P. Eng. (604-643-1124) FAVOURABLE COPPER RESULTS FROM
MAGISTRAL SKARN PROJECT IN PERU
Recent Price: C$ 0.45 On Monday, Inca Pacific released results of the first three holes of an
Shares O/S: M 19.5
eight-hole program at Magistral being conducted by Anaconda Chile
Market capitalization: C$ M 8.8
S.A. Hole 1, drilled on the south side of a prominent northeast-trending
52 Week High: C$ 0.53
52 Week Low: C$ 0.10
valley (coloured yellow in the accompanying map) encountered 0.86%
Weekly trading volume: 135,612 copper over a 72-metre length. Holes 2 and 3, drilled 200 metres apart
Haywood Liquidity Measure: years 2.8 on the north side of the valley, are very significant, since they are the
Current Assets C$M 1.19 first to be drilled in the area. Hole 2 had an average grade of 0.73%
Long-term debt: C$M nil
copper over an interval of 332 metres, and hole 3 had an average of
Adjusted enterprise value: C$M 7.6
0.62% copper over an interval of 442 metres, both holes having stopped
in mineralization. Substantial amounts of molybdenum are also present. Recent detailed mapping
and interpretation of the skarn indicate a somewhat linear aspect with a westerly dip capped by a
thrust fault (see the accompanying map).

Magistral is a copper-skarn target located in the Department of Ancash, Peru, 140 kilometres
northwest of the Antamina
deposit, currently under
preproduction development with a
budget of US$2.2 billion.
Antamina is a copper-zinc skarn
deposit with an ore reserve of 500
million tonnes averaging 1.2%
copper, 1.0% zinc, 11 grams/tonne
silver, and 0.03% molybdenum. At
Magistral, as at Antamina, copper-
molybdenum mineralization is
found disseminated in a quartz-
monzonite intrusive as well as a
skarn aureole. Antamina will be the
third-largest concentrate producer
in the world, after Chuquicamata
and Escondida.

Inca Pacific owns 100% of 3,300

hectares of claims surrounding a
250-hectare property owned by the
Haywood Securities Inc. 11th Floor, Commerce Place, 400 Burrard Street, Vancouver, BC, Canada V6C 3A6
604.643.1100 Toll Free (CDA) 1.800.663.9499 Haywood Capital Markets Institutional Desk 1.800.944.4303 2
 RADAR SCREEN
Market Commentary
GLENN R. BROWN, Ph.D. 416.507.2336 gbrown@haywood.com DECEMBER 14, 1999

Haywood Securities Inc. 11th Floor, Commerce Place, 400 Burrard Street, Vancouver, BC, Canada V6C 3A6
604.643.1100 Toll Free (CDA) 1.800.663.9499 Haywood Capital Markets Institutional Desk 1.800.944.4303 3
 RADAR SCREEN
Market Commentary
GLENN R. BROWN, Ph.D. 416.507.2336 gbrown@haywood.com DECEMBER 14, 1999

Government of Peru. Inca Pacific has a three-year option to purchase 100% of the internal
property, with the government retaining a net-profit-royalty interest. Anaconda Chile S.A.
is earning a 51% joint-venture interest by completing a defined work program for a total
cost of US$5.75 million over a three-year period to December 21, 2001. A leading copper
producer in Chile, Anaconda Chile S.A. can increase its ownership to 65% by preparing a
bankable feasibility study within two years. Drilling by Anaconda began in late October
and was initially budgeted at 2,000 metres, but we have since learned that some 2,500
metres have been drilled.

Prior to 1974, Cerro de Pasco Corp. conducted limited underground workings and diamond
drilling. A 1997 study, commissioned by the Government of Peru, estimated the total
potential mineralization at Magistral to be 108 million tonnes grading 1.34% Cu, 0.03%
Mo, and 0.19 oz./tonne Ag. The porphyry potential was estimated to be 270 million tonnes
grading 0.51% Cu, 0.04% Mo, and 0.12 oz./tonne Ag.

Elsewhere in Peru, Inca Pacific is seeking joint-venture partners for its Cerro Oro gold-
target project. On the Cueva Blanca project, St. Elias Mines is earning a 49% interest
through a work program. At the Santo Domingo tin project, under option from Minsur,
where Inca Pacific is earning a 51% interest, a work program is being established, subject
to funding.

DISCUSSION
These first drill results, as significant as they are, indicate a widespread skarn system in
which copper and molybdenum grades are highly elevated, but it also contains zones of
lower grade. While there is much similarity between Antamina and Magistral, only additional
drilling can establish if the size and grade will be comparable. At this stage it is too early to
tell if a zinc zone is present and if the average grades are indicative of the entire deposit.
The remaining drill holes 4 to 8 will not be released until January 4, 2000. In the meantime,
based on the first three holes and the fact that the skarn body is open to the north, the
south, and at depth, we are recommending Inca Pacifc as a SPECULATIVE BUY below
$0.35. Because of the drilling program, the share price has doubled in the past few weeks.
We expect continued short-term selling pressure, as some investors take advantage of the
liquidity, especially those holding the stock for some time and those seeking tax-loss selling.

Haywood Securities Inc. 11th Floor, Commerce Place, 400 Burrard Street, Vancouver, BC, Canada V6C 3A6
604.643.1100 Toll Free (CDA) 1.800.663.9499 Haywood Capital Markets Institutional Desk 1.800.944.4303 4
 RADAR SCREEN
Recommendations: Mining, Oil & Gas
GLENN R. BROWN, Ph.D. 416.507.2336 gbrown@haywood.com DECEMBER 14, 1999

On this page we summarize our best-buy recommendations for resource stocks. Haywood Securities will provide regular future
updates and evaluations on this sheet as part of the daily Radar Screen commentary. We have selected companies with leverage to
underlying commodity prices, good management, and strong assets. We caution that grassroots projects are only for investors
with a high tolerance to risk. Investors are advised to take profits as drilling progresses. Note that any changes to our
recommendations will be summarized in the Revisions Box (bottom left). For more information on these stocks, please refer to
Radar Screen. Recommendations are listed by date.

EXPLORATION (RISK ACCOUNTS ONLY) RECOMMENDED PRODUCERS (COMMODITY LEVERAGE) RECOMMENDED

PLATINUM AND PALLADIUM NICKEL

ALTORO GOLD ATG.V Sep. 23, 1999 LIONORE MINING LIM.T
PACIFIC NORTH WEST PFN.A Oct. 18, 1999
COPPER
GOLD AND DIAMONDS IVANHOE MINES IVN.T
GREAT BASIN GOLD GBG.V Jul. 26, 1999 AUR RESOURCES AUR.T
DIAMOND FIELDS DFI.T Sep. 7, 1999
PACIFIC RIM PFG.T Sep. 22, 1999 ZINC
EUROZINC EZM.V
BREAKWATER BWR.T
OIL AND GAS
SAN JOAQUIN BASIN GOLD
• Elk Point ELK.T Spec. MERIDIAN GOLD MNG.T
• Trimark TMK.V Spec. GOLDCORP G.A.T
• Westminster WML.T Spec. ELDORADO GOLD ELD.T
VICEROY RESOURCE VOY.T

ROYALTY COMPANIES DIAMONDS

NAMCO NMR.T
FRANCO-NEVADA FN.T ABER RESOURCES ABX.T
SOUTHWESTERN GOLD SWG.T Spec.
GAS
PURCELLPEL.T
BERKLEY PETROLEUM BKP.T

OIL
MAGIN ENERGY MGY.T
REVISIONS BOX ATHABASCA OIL SANDS AOS.UN.T Nov. 25, 1999
CANADIAN OIL SANDS CO.UN.T Nov. 25, 1999

INTEGRATED MINING
TECK CORP. TK.B.T

Radar Screen is prepared by Haywood Securities Inc. for use by Haywood Securities Inc. and Haywood (USA) Securities Inc. Estimates and projections contained herein,
whether or not our own, are based on assumptions that we believe to be reasonable. The information presented, while obtained from sources we believe reliable, is checked but
not guaranteed against errors or omissions. Haywood Securities Inc., its subsidiaries and their respective officers, directors and employees may hold positions in the securities
mentioned and may purchase and/or sell them from time to time. Haywood Securities Inc. may have acted as agent for one or more of the companies mentioned with respect
to a distribution of securities. Radar Screen is neither a solicitation for the purchase of securities nor an offer of securities. Our recommendations are intended only for clients
of Haywood Securities Inc. or those of Haywood (USA) Securities Inc. and such clients are cautioned to consult the respective firm prior to purchasing or selling any security
recommended. Haywood Securities Inc. is a Canadian broker-dealer, a member of the Toronto Stock Exchange and the Canadian Venture Exchange. Haywood (USA)
Securities Inc. is a wholly owned subsidiary of Haywood Securities Inc., registered with the U.S. Securities and Exchange Commission and a member of the National Association
of Securities Dealers (NASD) and SIPC.

Haywood Securities Inc. 11th Floor, Commerce Place, 400 Burrard Street, Vancouver, BC, Canada V6C 3A6
604.643.1100 Toll Free (CDA) 1.800.663.9499 Haywood Capital Markets Institutional Desk 1.800.944.4303 5