Orezone Resources Inc. (Toronto:Ozn)

AN EMERGING GOLD PRODUCER IN MURKINA FASO, WEST AFRICA

Business Summary

Orezone Resources is a Canadian-based, emerging gold producer focused on the discovery and development of gold deposits in Burkina Faso, West Africa.

Orezone has the people, partners and properties that are critical for creating wealth, is showing continual, strong progress as it moves towards production, and is undervalued, with respect to its peers.

Gold Fields Limited is one of the world's largest producers of gold, operating in three key gold mining regions of the world, South Africa, West Africa (Ghana) and Australia. Gold Fields has entered into a partnership with Orezone to bring the Essakan property into production. Their stated policy is focus only on projects with the potential to meet the majority of these requirements:

• A minimum of 2 million ounces of reserves;
• Production rates of over 200,000 ounces per year;
• Cash cost of production at less than half the commodity price (the reciprocal of two), and
• A double digit rate of return.

Their involvement is strong endorsement of this project's potential. In addition, Orezone is backed by a diverse group of blue-chip institutional investors giving it the support and resources necessary to succeed.

Properties

Orezone controls the premier land position in Burkina Faso, the country with the greatest untested potential in West Africa, which is the fastest growing gold producing region in the world. The company's over 5,000 km2 of properties have similar geology and mineralogy to neighboring countries that collectively produce over 5 million ounces per year.

Progress

Orezone has identified over 3 million ounces of near-surface gold resources to date that are amenable to low-cost production. The company is on track to double its resources by 2005, and its properties have significant untested potential for growth. This progress has been reflected in its share price growth, and the recent buy recommendations by several top mining analysts.

Value

Orezone currently trades below its peer group on an ounce-per share basis. This calculation includes all of Orezone's resources including its inferred resources. The calculation however, does not include the recent discoveries by Orezone in 2003, and these resources will not be calculated to 43-101 standards until Q1 2004 and should add further resources. By drilling over 35,000m in Q4, Orezone will produce a constant flow of new results. Orezone has momentum and is very well positioned to capitalize on a secular bull market in gold.

Although the company presently has six main properties, its primary focus is Essakan, Bondi and Sega.

Recent News: Positive Drill Results at Bondi lead to Site Construction and Pre-feasibility Work

Orezone Resources Inc., has announced the latest results from infill drilling on its 100 per cent-owned Bondi Project in Burkina Faso, West Africa.

Ron Little, President and CEO, stated, "We are very pleased to report that drilling results continue to confirm the width and continuity of the main zone and we are even more excited about the potential to add ounces along strike, at depth and in the parallel zones. As a result, we are commencing construction of a permanent camp and an all- weather road to facilitate drilling right through the rainy season. Furthermore, we have also initiated work on many of the elements required for a pre-feasibility study so that we can develop this project as quickly and as efficiently as possible."

The objective of the recent drill program was to provide sufficient information to complete an initial NI 43-101 compliant resource calculation and a pre-feasibility study based on the first 800 m of strike length in the main zone, now referred to as Zone 2. Zone 2 continues to grow in size. Recently compiled geophysical and geochemical surveys and drilling indicate a signature that is over 4 km in length. In addition, there are at least two parallel zones of similar size and signature that could also substantially increase the total oxide resource.

The latest batch of drill results consisted of 2,250 m of reverse circulation ("RC") drilling in 31 holes. Very strong results were returned all along the 800 m of strike length including 3.82 g/t over 45 m in hole BRC93 and 3.17 g/t over 68 m in hole BRC101 near the southern end. Intersections in the central part included 5.54 g/t over 12 m in hole BRC110 and 5.67 g/t over 15 m in hole BRC113. Hole BRC116 near the north end intersected 4.27 g/t over 19 m while BRC118 returned 1.65 g/t over 51 m

Fundamental Considerations: Why Burkina Faso?

Many people would have a hard time finding Burkina Faso on a map of the world. But Orezone has found this West African country and made it the focal point of its work for three important reasons:

1. Africa is a great place for exploration and mining. It has all the ingredients necessary for success: favorable geology, low-cost discoveries, excellent exploration funding, and a stable political and regulatory climate.

2. West Africa is the fastest growing gold producer in the world. From 1997 to 2001, at a time when gold production was declining in many countries, West Africa experienced a 56% growth in gold production, making it the fastest-growing gold producing region in the world.

Orezone currently trades below its group on an ounce-per-share basis. This calculation includes all of Orezone's resources including its inferred resources. The calculation however, does not include Orezone's recent discoveries in 2003, and these resources will not be calculated to 43-101 standards until Q1 2004 and should add further resources.

By drilling over 35,000 m in Q4, Orezone will produce a constant flow of new results. Orezone has momentum and is very well positioned to capitalize on a secular bull market in gold.

Technical Considerations

The strong, multi-year up-trend should lead to prices in excess of $ 450/ounce in the near future.

While the share price remains in a well-established up-trend which started at the end of 2003, it has been consolidating last autumn's sharp advance.

We have a resistance zone around CAD 1.40, which should give way in the not-too-distant future on positive news which can be expected towards the summer months.

Our recommendation: BUY!

Peter Zihlmann

www.pzim.com
[email protected]
[email protected]