Introducing
Financial Sense Junior Gold Index™
by Frank Barbera
July 15, 2005

Since inception to date ( 01/07/02 thru 07/14/05), the Financial Sense Junior Gold Index™ (FSJG) has advanced from 32.00 to 149 or 365.25% in three and half years. At its high point seen on 4/07/04, the index peaked at 212.23 or 564.75% from inception. Over the last few weeks, the FSJG index has advanced off a major low seen on 5/20/05 at 132.47 to its current reading near 149, which has lifted the index back above its 50 day moving average. The next technical objective would be a move back above the 200 day moving average, which closed last night at 159.56.

Index Construction:

A number of the stocks in the FSJG were at one point or another below C$1.00. In order to allow all index components to an influence on the index, all stocks were rebased to an initial reading of C$4.00. This means that from the starting point of the index, all components begin at the same weighting.

However, the FSJG index goes one step beyond an equally-weighted index. Within the three segments of the index — Producers (10), Development (15) and Exploration (5) companies* — there is a weighting given to each segment. In this vein, the Producers, which are the largest most liquid companies in the index, carry a 42.50% segment weight. This is followed by a 35% weighting for the Development companies, many of which are in advanced stage development programs and not far from actual production. Exploration, which is the most speculative segment of the index, carries the least weight and comprises 22.50% weighting in the final index. Thus, we have a segment-weighted index in which within each segments all stocks carry an equal weight. The following charts show each individual segment starting with the 10 Junior Producers shown below:

So far since inception, the Development companies have performed the best with a gain of 687.50% in 3.5 years. Producers are up 301% and Exploration companies are up 225%.

*Please note that the individual companies in this index are proprietary and will not be disclosed due to compliance and regulatory issues resulting from the relationship of FinancialSense.com, Puplava Financial Services, Inc., Registered Investment Advisor and Puplava Securities, Inc. Member Firm FINRA/SIPC.