Holmer Gold Mines Limited

Address:	19 - 2555 Victoria Park Ave. Suite 301 Toronto, Ontario M1T 1A3
Tel No.:	(416) 291-9771
Fax No.:	(416) 291-2088
Web Site:	www.holmergold.com
Corporate Email:	info@holmergold.com
Contact Person:	K.Sethu Raman
Position:	President

COMPANY DATA

Traded Market:	CDNX
Traded Symbol:	HGM
Outstanding Shares:	33.9 million
Public Float:	17.0 million
52 Week High:	$ 0.34
52 Week Low:	$ 0.02
Present Price:	Click Here

INTRODUCTION

Holmer Gold Mines Limited ("HGM"), is an established, Canadian, precious metals-oriented company, that is focused on the continuing growth and development of its two highly promising silver and gold discoveries.

Management's strategy is to enhance shareholder value by pursuing growth through low cost discovery and development of deposits near known mining camps. This strategy has worked well since 1994 and Holmer is currently well positioned to maximize its growth from exploration company to emerging producer in the near future.

PROJECTS IN HAND

Holmer possesses two significant precious metal properties that promise attractive profits over the near term. One is the Loma Hierro Silver Project, a 9 million-ounce deposit outlined in Cuba that could be brought into production within a year. The other is the 500,000-ounce gold deposit in Timmins, Canada that could also become a producer in the next two years.

(1) The Loma Hierro Silver Project, Cuba

It is a joint venture of HGM and its Cuban partner, Geominera S.A. The deposits are estimated to contain an open-pitable resource of 9 million ounces of silver, which are amenable to vat-leaching mining techniques. The Loma Hierro mine is located in the Pinar del Rio province of western Cuba, some 203 km by road from Havana. Site access from the nearest paved road is over a 10-km gravel access road. The Loma Hierro mine is located within the Loma Hierro belt, which stretches for 12.5 miles in length and has a width of approximately three miles. A feasibility study proposes a stand-alone operation, acquiring available, used mining equipment, as well as negotiating with the government to reduce certain operating costs. Cuba's long-standing, positive business relationship with Canada, along with its chronic need for additional foreign exchange augers well for the eventual success of this project - whose financial attractiveness increases dramatically with silver prices above US$4.50 per ounce.

Holmer will present the documentation to the Cuban government and expects to receive approvals for production in the second quarter. This will clear the way for the financing, which will require only $5 million U.S. to get started within 10 months. Several parties have already expressed a serious interest in funding the project. The payback period is estimated to be 12 months.

(2) The Timmins Gold Project, Ontario

Holmer owns 100% interest of the property. The property is located approximately 18 miles west of Timmins, Ontario, in the southwest corner of Bristol Township. The property consists of 23 patented claims and leases. Access to the property is excellent as Highway 101 passes through the property. The City of Timmins is well suited to support exploration and mining. All services and skilled labour are readily available.

The Timmins Gold Project, which is Holmer's principal "raison d'etre", contains a present estimated resource of 2 million tons grading 0.23 ounces of gold. This translates into approximately 500,000 ounces with a gross, in-situ value of $230 million Canadian. These estimates, provided by HGM's consulting geologists, are based on 67 diamond drill holes, spaced at 25-50 metre intervals, incorporating a 3-gram cutoff grade over 1 metre of true width.

A significant portion of the indicated resource base occurs above the 350-metre level. Using a conservative 10-gram cutoff grade, Holmer has estimated a higher-grade resource of 180,000 tons grading more than 0.8 ounces per ton of gold (uncut). Two approaches to mine this deposit would be either to conduct a low-cost, open pit operation or drive a decline to the higher grade ore.

On February 04, 2002, Holmer announced a private placement of $750,000 Canadian to conduct detailed exploration drilling to further delineate the deposit in preparation for a feasibility study to be completed by the end of the year.

An important aspect of this property is its potential for further development. A deep hole (H-97-56) completed in 1997 to a depth of 800 metres, is considered to be one of the best deep diamond drill holes ever encountered in the Timmins camp. This zone is virtually open in all directions and deserves further exploration.

MANAGEMENT

Directors and Officers

K. Sethu Raman, P h.D., President and CEO

Dr. Raman is a professional geologist with over 30 years of international experience in exploration, development and mining. He has been President and Chief Executive Officer of the Corporation since 1986. Dr. Raman led exploration teams involved in the discovery and development of ten significant gold, silver and base-metal deposits and mines in Canada, the U.S.A., the Philippines and Cuba.

The rest of board of directors include Ed Svoboda, B.Com., M.B.A., George White, Christopher Harvey, L.R.I.C., Howard D. Rubinoff, Jack S. Kirkland, Q.C., R.Paul Middleton, F.C.C.A. (U.K.).

NEWS UPDATE

On January 02, 2003, Holmer Gold Mines Limited announced that Holmer has closed a $390,060 non-brokered private placement of flow-through shares and warrants. Proceeds of the financing will be used to accelerate current exploration development and feasibility studies on the 100% owned Timmins Gold Project in the Timmins Gold Camp in northern Ontario.

On November 5, 2002, Holmer Gold Mines Limited announced the encouraging results of an independent Mineral Resource Study justifying underground development for mining the high grade portion of the Timmins Gold Deposit. The resource study was completed by international consultant, Watts, Griffis and McOuat (WGM) and incorporates the results of the recently completed 22-hole final drill program on the main deposit. The deposit lies near the Destor Porcupine Fault Zone in the central part of the property and covers less than 15% of the prospective project area.

On May 27, 2002, Holmer Gold Mines Limited announced that the Company has commenced a major drilling program on its 100% owned Timmins Gold Project in Bristol Township near Timmins.

The result of this program is expected to provide sufficient data to justify the economics of a decline development for mining the high grade part of the deposit referred above.

On March 06, 2002, Dr. Sethu Raman, President of Holmer Gold Mines Limited announced that the Company has concluded a financing arrangement with TCC Ventures1 to provide debt financing of US$6 million (Approximately C$10,000,000).

The proceeds from the financing will be used mainly for the development of the Loma Hierro Silver Mine in Cuba and Timmins Gold Mine in Ontario.

CONCLUSION

Holmer Gold Mines Limited is an attractive company. Although HGM is a junior mining company, it is hard to find a company owns a significant exposure to both silver and gold. They own two properties, both of them are not at an exploration stage - Loma Hierro Silver Project could be brought into production within this year and Timmins Project can also become a producer in the next two years.

Moreover, HGM has a very good relationship with the Cuba government, it is a key issue in success when a mining company has a property in an emerging market. It not only gives HGM a lot of advantage in exploration, but also allows them to lower their operation cost in the Loma Hierro Silver Project. And management promised they are totally committed to and focused on the enhancement of true shareholder value.

Holmer Gold Mines Limited owns two successful elements (good management and good properties) in the company.

Recommendation: Strong Buy