Equity Research

May 19, 2011

Rating: SPECULATIVE BUY Target Price: $3.45

All figures in C$, unless otherwise noted. Recent Price: 52 Week Range: Shares O/S: Basic (MM) F.D. (MM) Market Cap (MM): Average Daily Vol. (3 mo.) Fiscal Year End: Cash (Est.) (MM): $1.68 $0.45 - $1.95 23.0 29.7 $38.6 20,000 Feb. 28 $4.0

(AVC TSXV) Low-Cost Project with Value-Added Option

Initiating Coverage: We are initiating coverage on American Vanadium Corp. (AVC), a company with 100% ownership of the Gibellini project, a vanadium project located in Nevada, U.S.A. It expects to bring a low capital and operating cost, heap leach vanadium mine to production by the end of 2012. The company also has nearby properties under exploration for added life of mine (LOM). Low Strip Ratio, Operating Costs and Capex: Given that the Gibellini Hill deposit lies on the top of a hill, the strip ratio will be minimal at approximately 0.2:1. AVC will be able to run an open pit, acid heap leach operation bypassing the need to grind or roast the ore, potentially becoming one of the lowest cost primary vanadium producers. AVC also purchased historic drill results from adjacent Louie Hill, which was formed from the same geologic structure, and is currently building a resource model. Louie Hill could add up to 50% to the LOM and will be a near-term catalyst for the company. Near Term Producer with High-Value Potential: Vanadium electrolyte is the material used in vanadium redox batteries (VRBs) and a product that commands a premium to V2O5 flakes. In an intermediary step in AVCs heap leach process, vanadium electrolyte is created prior to V2O5 flake production. With refinement of this product, AVC would have the ability to sell the value added product, but for now, we have only incorporated selling V2O5 flakes into our valuation. The ability to produce vanadium electrolyte to the VRB market at a lower cost than its competitors would provide additional upside to AVC. Summary: We expect AVC to complete an updated resource and a final feasibility study over the next couple of months, which will be catalysts to add value to the project. We believe AVC can be a nearterm low-cost vanadium producer with the Gibellini Project. Given the location, geology and deposit shape, as well as the low operating and capital costs required, we are initiating coverage on American Vanadium Corp. with a SPECULATIVE BUY rating and a $3.45 target price.
Please see end of this report for important disclosures

American Vanadium Corp.

Company Description: American Vanadium Corp., formerly known as Rocky Mountain Resources Corp., is an exploration and development company focused on bringing the Gibellini vanadium project to production by Q4/12. The Gilbellini project is located in Nevada, U.S.A.

Jonathan Lee, MBA Battery Materials & Technologies 647.426.1674 jlee@byroncapitalmarkets.com

American Vanadium Corp.

Vanadium Overview
The use of vanadium has been on a steady rise in the past few years, interrupted only by the recent recession. The source of vanadium is concentrated with 84% of the global supply coming from just three countries China, South Africa and Russia. Vanadium is mainly used in high-strength steels and is used anywhere from a few tenths to a few percent vanadium as an alloying material by weight. Vanadium has the dual advantage of not only significantly increasing the hardness of steel, but also doing so without making the resulting steel brittle, so its strength is also enhanced. As nations around the world mandate the use of stronger steels for construction, vanadium is in greater demand. We also foresee two other uses for vanadium that are not largely anticipated by the market and are non-metallurgical in nature. Vanadium is arguably the best cathode material for lithium-ion batteries, a material called lithium vanadium phosphate, or Li3V2(PO4)3. This compound makes a battery that is higher voltage (so likely higher power) and capable of storing more energy per given battery size than any other commonly referenced cathode material. It is also less expensive, from a pure raw material point of view, than the more commonly used lithium cobalt oxide cathode, ubiquitous in laptop computers. Vanadium can also be used in VRBs, a completely different type of battery to store grid-level amounts of electrical energy. VRBs can be scaled up to provide millions of watts of power and store millions of watt-hours of energy, enough to keep thousands of North American homes powered for nearly a full day. These batteries are widely touted as being able to provide the storage required to make unreliable (the industry term is non-dispatchable) alternative sources of electrical power, such as wind or solar, more widely deployable within the grid. We believe the common use for this type of battery is likely to be more pedestrian in nature, with utilities using such batteries to postpone required capital expenditures on substation upgrades and the like, thereby improving their IRR. This type of use does not require waiting for the construction of wind or solar farms. Within the VRBs, vanadium is used in the form of vanadium electrolyte, which is made from what is basically a sulphuric acid highly concentrated with vanadium. AVC may have the potential of producing the vanadium electrolyte as part of its process and could be the lowest cost supplier of that material.

Vanadiums main use is in the steel industry as a steel hardener. However, there are new applications for vanadium that may drive demand higher

Jonathan Lee, MBA 647.426.1674 jlee@byroncapitalmarkets.com

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American Vanadium Corp.

All American Location and Infrastructure

AVCs 100%-owned Gibellini vanadium deposit covers 1,374 hectares in Nevada, U.S.A., which is one of the best mining jurisdictions in the world. The project is easily accessible by a two mile dirt road extending westward from Nevada State Route 379, which connects 15 miles north to US Highway 50, a well paved two-lane highway (see Exhibit 2). A single phase power station is six miles away, which will be upgraded to three-phase with an electric line scheduled to be constructed for six miles. Water is available only 15 miles from the site and this would be sufficient for AVCs needs. All of this nearby infrastructure should lower capital costs for the project and quickly get the project into production. Exhibit 1 Property Location Source: Company reports

Source: Company reports

Additionally, given the small size of the project relative to nearby gold projects, an environmental assessment (EA) as opposed to an environmental impact statement (EIS) may be required for permitting. The scope of an EA is much less stringent than an EIS, and representatives from Nevada would be handling the process, which should speed up the process given their familiarity with heap leach type projects in the area. This should save capital as well as let the company bring the Gibellini project to production in a timely fashion.

Jonathan Lee, MBA 647.426.1674 jlee@byroncapitalmarkets.com

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American Vanadium Corp.

Exhibit 2 The Well-Paved Highway 50

Source: Byron Capital Markets

Resource
An initial resource and a scoping study were completed for the Gibellini deposit in 2008. The vanadium is hosted in a black shale unit that ranges from 175 to 300 feet thick. The Gibellini deposit consists of 18.9 million tonnes grading 0.33% V2O5 within three types of black shale layered upon one another. Approximately 35.3% is within the oxidized zone, 50.3% within the transitional zone, and 14.4% within the sulphide zone. Column testing work was performed on the three types of rock during the preliminary economic assessment. Recoveries of 60%, 70%, and 52% were achieved in the oxidized, transitional and sulphide materials, respectively. Luckily for AVC, the oxide and transitional layers lie at the top of Gibellini Hill and will be mined first, adding value back to the company earlier. Exhibit 3 NI 43-101 Compliant Resource
Indicated Inferred Total
Source: Company reports

Ore (000 Tonnes) 16,335.1 2,575.0 18,910.0

Grade (%V2O5) 0.339% 0.282% 0.33%

Contained (000 Tonnes V2O5) 55.4 7.3 62.6

Jonathan Lee, MBA 647.426.1674 jlee@byroncapitalmarkets.com

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American Vanadium Corp.

Easy Mining
Apart from being located in a gold district and enjoying huge exploration upside, the vanadium enriched ore is located on top of Gibellini Hill with minimal overburden, which will allow for open pit mining. At a strip ratio of roughly 0.2:1 or less, minimal waste rock will have to be moved and processed, significantly reducing costs. To make it even easier, the heavily oxidized sedimentary deposit can be mined with a front-end loader with minimal need to blast prior to delivery to the crusher. Exhibit 4 - Gibellini Deposit

With a current LOM of eight years, there are additional targets with high probability of success to add to the resource and LOM

Source: Company reports

Additional Targets for a Longer Mine Life

While AVC plans to process 2.7 million tonnes of ore per year, for a LOM of 8.3 years, the company is planning additional targets on the same geologic trend. The formation of hills runs north to south (see Exhibit 5). The basins between the hills were part of historic erosions, so the hills share similar geological characteristics. A $1 million exploration program for 2011 is ongoing at AVCs land package of 6,600 hectares. AVC acquired results from over 60 historical drill holes for Louie Hill, which is located just to the south of the Gibellini Hill. Historical drilling was conducted by Union Carbide Corporation. AVC drilled 10 holes on Louie Hill and is performing metallurgical work to ensure the material can be similarly processed. AVC is also planning a drill program this year. The upcoming drill program, an updated resource, and results of the metallurgical work will be near-term catalysts for the company. Given that it is geologically similar, we expect Louie Hill to add to AVCs resource and project LOM. In addition to Louie Hill, four new vanadium zones have been discovered just to the south for increased potential resource. A second potential resource on the geologic trend is the Del Rio project, which was acquired in September 2010. Surface sampling conducted by AVC last fall showed the Del Rio is mineralized over 550 metres of strike and 360 metres of width with some samples returning over 1% V2O5. Like the Gibellini Hill deposit, Louie Hill and Del Rio sit atop hills, which will likely reduce the strip ratio and mining costs. The exploration of these two targets would make the economics of the low-cost project more appealing with a longer LOM.

Jonathan Lee, MBA 647.426.1674 jlee@byroncapitalmarkets.com

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American Vanadium Corp.

Exhibit 5 Additional Targets

Source: Company reports

One of a Kind No Roasting Necessary

Although a lower in-situ grade, the vanadium is hosted in a heavily oxidized sedimentary black shale unit. Based on positive column test work, AVC will use a sulphuric acid heap leach. This is in contrast to the process for magnetite hosted vanadium ores that utilized a mine, crush, grind, magnetic separation, and roasting. The difference should allow AVC to cheaply extract the vanadium, much like gold is removed using a cyanide leach process. Additionally, the vanadium is consistently found in the fractures of the sediment which adds another benefit -- reducing the crushing requirement, further reducing capital costs and operating costs. This low-cost operation was tested on all three zones of the shale the oxide, transitional and sulphide zones. Additional metallurgical work is being done to refine acid consumption usage. We are confident that the inexpensive metallurgical flow sheet can be done much like a gold heap leach process. After the heap leach process, a vanadium-bearing sulphuric acid solution is put through a solvent extraction process to load the vanadium onto an organic extractant/diluent mixture, then back to a sulphuric acid solution to do two things; remove impurities and to increase the vanadium concentration. Ammonia is then used to precipitate out the vanadium as ammonia metavanadate (AMV), then thickened and calcined to form vanadium pentoxide.

Jonathan Lee, MBA 647.426.1674 jlee@byroncapitalmarkets.com

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American Vanadium Corp.

Exhibit 6 - The Flow Sheet

Ore delivery

Primary crushing

A simple flow sheet shows how AVC can be a low cost producer of vanadium and potentially vanadium electrolyte for the use in vanadium redox batteries

Secondary crushing Agglomeration Ore curing Heap building Preg pond

Barren pond V2O5 production

Solvent extraction

Purple Flakes

AMV precipitation

Organic stripping

Vanadium Electrolyte

Source: Company reports

Jonathan Lee, MBA 647.426.1674 jlee@byroncapitalmarkets.com

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American Vanadium Corp.

Valuation
We expect AVC will spend $85 million in 2012 to construct a heap leach operation in Nevada and assume $45 million will come in the form of debt at 9%. This will be used to build a 2.7 million tonne per year operation. To date, we have not included the additional resource potential from nearby Louie Hill and Del Rio. The addition of these deposits would undoubtedly improve the economics of the project. Also, AVC will process all zones of its deposit for a total LOM of 8.3 years. We have applied a recovery rate of 60% for the first 2.5 years, 70% for the following 4.5 years, and 50% for the last 1.3 years based on pilot work done to date on the three zones. Even though AVC is exploring the possibility of producing vanadium electrolyte, which would considerably increase its revenue stream, we have yet to include it in our analysis. We have assumed a $32 per kilogram vanadium price for 2013, rising to $35 per kilogram by 2014, and staying at that level for the rest of the LOM. On operating costs we believe that AVC will be able to produce for roughly $15 per tonne mined ore, which includes mining, crushing, heap leach, solvent extraction, and vanadium precipitation. Finally, we have reduced our net income by 2.5% for royalty payments. We have used a 16% discount rate on the project but with further delineation of the flow sheet through the upcoming bankable feasibility study, we can see additional risk reduction.

Value can easily be added to the project through a longer LOM, which should happen soon, and the ability to produce higher value vanadium electrolyte

Exhibit 7 Discounted Cash Flow

2011 Fixed capital investments Capital costs: debt Principal paid Debt service (8%, 10 year) Net income Royalties (2.5%) Depreciation Change in working capital Cash flow to AVC Discount rate Discounted cash flow NPV @ 16% Cash Cash from warrants/options Shares outstanding (FD) Target price 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ($85,000) $45,000 1 2 3 4 5 6 7 8 9 10 $0 ($2,962) ($3,228) ($3,519) ($3,836) ($4,181) ($4,557) ($4,967) ($5,414) ($5,902) ($6,433) $0 ($4,050) ($3,783) ($3,493) ($3,176) ($2,831) ($2,455) ($2,044) ($1,597) ($1,110) ($579) $4,907 $123

($2,352) ($23,547) $26,543 $26,985 $33,136 $39,711 $40,890 $41,893 $42,761 $22,857 $0 $0 $664 $675 $828 $993 $1,022 $1,047 $1,069 $571 $0 $17,085 $13,651 $10,907 $0 $6,755 $663 $8,715 $608 $6,963 $608 $5,564 ($8) $4,445 ($8)

$3,552 $2,838 $2,267 ($8) ($2,470) ($4,129) $4,747 $1,076

($2,352) ($49,424) $29,548 $33,035 $36,579 $40,892 $40,881 $40,331 $39,838 $21,691 16% ($2,352) ($42,607) $21,959 $21,164 $20,202 $19,469 $16,779 $14,270 $12,151 $5,704 $87,816 $5,000 $2,150 $27,636 $3.45

Source: Byron Capital Markets

Jonathan Lee, MBA 647.426.1674 jlee@byroncapitalmarkets.com

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American Vanadium Corp.

Conclusion
In the Gibellini Deposit in Nevada, U.S.A., AVC has a project that will be a low-cost provider of vanadium. Through a combination of a unique deposit that does not require grinding and roasting, vanadium-bearing material located in the fractures, and a low strip ratio, AVC should be able to cheaply produce vanadium through a heap leach process similar to a cyanide leach process for gold. In addition to low expected operating costs, low capital costs will be required given the availability of infrastructure around the property and the simple process. Although it has a current LOM of approximately 8 years, there is additional upside through the purchase of historic core holes from nearby Louie Hill, which AVC plans on incorporating into the upcoming resource. Twin holes at select locations will be drilled to confirm historic results. An updated NI 43-101, a feasibility study, and drill results will all be near-term catalysts to be released in mid-2011. On a longer-term basis, exploration will continue at hills to the south that are part of the same geological structure, such as Del Rio. The exploration should add additional years to the LOM and add value to shareholders. Another potential for AVC is the ability to go down the value chain and produce vanadium electrolyte for VRBs. In the flow sheet, vanadium electrolyte (high concentrations of vanadium in a sulphuric acid solution) is produced prior to the production of vanadium pentoxide. Metallurgical work is on-going to determine specifications of the material and potential commercialization. Nonetheless, this is a value add that has not been included in our analysis but may add additional value in the future as work progresses. The project is cheap and relatively simple. Given the ability to quickly bring a low-cost operation to market, we initiate coverage on AVC with a SPECULATIVE BUY rating and a $3.45 target price.

Jonathan Lee, MBA 647.426.1674 jlee@byroncapitalmarkets.com

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American Vanadium Corp.

Appendix 1 Income Statement

Exhibit 8 Income Statement
Saleable (V kg, 000) V2O5 price (US$/lb, Asian metal) V metal ($/kg) Revenue (V kg, 000) Mining costs (000) Crushing costs (000) Processing cost (000) COGS Gross profit Mineral exploration General and administrative Stock-based compensation Expenses EBITDA Debt service (8%, 10 year) Depreciation EBT Tax expense (30%) Net income Royalties (2.5%) Deficit, beginning of period Deficit, end of period 2011 0 $26 $0 $0 $0 $0 $0 $0 $1,000 $1,186 $166 $2,352 2012 0 $7 $29 $0 $0 $0 $0 $0 $0 $1,020 $1,210 $182 $2,412 2013 2,527 $32 $80,539 $5,448 $1,362 $27,240 $34,050 $46,489 $1,040 $1,271 $200 $2,512 $43,978 $3,783 $2 $13,651 2014 2,527 $35 $88,593 $5,448 $1,362 $27,240 $34,050 $54,543 $1,061 $1,334 $210 $2,606 $51,937 $3,493 $3 $10,907 2015 2,737 $35 2016 2,948 $35 2017 2,948 $35 2018 2,948 $35 2019 2,948 $35 2020 2,106 $35 $73,828 $5,448 $1,362 $27,240 $34,050 $39,778 $1,195 $1,788 $194 $3,177 $36,601 $1,110 $9 $2,838 2021 696 $35 $24,392 $1,800 $450 $9,000 $11,250 $13,142 $1,219 $1,877 $190 $3,287 $9,856 $579 $10 $2,267

$95,976 $103,359 $103,359 $103,359 $103,359 $5,448 $1,362 $27,240 $34,050 $61,926 $1,082 $1,401 $215 $2,698 $59,228 $3,176 $4 $8,715 $47,337 $14,201 $33,136 $828 $32,308 $23,284 $55,592 $5,448 $1,362 $27,240 $34,050 $69,309 $1,104 $1,471 $210 $2,785 $66,523 $2,831 $5 $6,963 $5,448 $1,362 $27,240 $34,050 $69,309 $1,126 $1,545 $206 $2,877 $66,432 $2,455 $6 $5,564 $5,448 $1,362 $27,240 $34,050 $69,309 $1,149 $1,622 $202 $2,972 $66,336 $2,044 $7 $4,445 $5,448 $1,362 $27,240 $34,050 $69,309 $1,172 $1,703 $198 $3,073 $66,236 $1,597 $8 $3,552

($2,352) ($2,412) $0 $0 ($2,352) $0 ($2,352) $0 ($2,352) ($3,006) ($5,358) $4,050 $1 $17,085

($23,547) $26,543 $37,537 $0 $0 $10,553 ($23,547) $26,543 $26,985 $0 $664 $675 ($23,547) $25,880 $26,310 ($5,358) ($28,906) ($3,026) ($28,906) ($3,026) $23,284

$56,729 $58,414 $59,847 $61,087 $32,653 $7,009 $17,019 $17,524 $17,954 $18,326 $9,796 $2,103 $39,711 $40,890 $41,893 $42,761 $22,857 $4,907 $993 $1,022 $1,047 $1,069 $571 $123 $38,718 $39,867 $40,845 $41,692 $22,285 $4,784 $55,592 $94,310 $134,177 $175,023 $216,715 $239,000 $94,310 $134,177 $175,023 $216,715 $239,000 $243,784

Source: Byron Capital Markets

Jonathan Lee, MBA 647.426.1674 jlee@byroncapitalmarkets.com

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American Vanadium Corp.

Appendix 2 Balance Sheet

Exhibit 9 Balance Sheet
2011 Assets Current assets Cash and cash equivalents Amounts receivable Prepaid expenses Reclamation bonds PP&E Total assets Liabilities Current Liabilities Accounts payable & accrued liabilities Debt Shareholder equity Shareholder capital Contributed surplus Retained earnings Total liabilities & shareholder equity 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

$4,651 $409 $30,157 $63,402 $100,196 $141,299 $182,386 $222,919 $262,955 $284,840 $289,777 $28 $28 $6,712 $7,383 $7,998 $8,613 $8,613 $8,613 $8,613 $6,152 $2,033 $84 $84 $84 $84 $84 $84 $84 $84 $84 $84 $84 $55 $55 $55 $55 $55 $55 $55 $55 $55 $55 $55 $924 $68,839 $55,188 $44,281 $35,566 $28,603 $23,039 $18,594 $15,042 $12,205 $9,937 $5,741 $69,414 $92,195 $115,205 $143,899 $178,654 $214,178 $250,266 $286,749 $303,336 $301,886

$280 $280 $209 $217 $225 $232 $240 $248 $256 $0 $42,038 $38,810 $35,291 $31,455 $27,274 $22,717 $17,749 $12,335

$265 $6,433

$274 $0

$10,028 $55,211 $55,411 $55,622 $55,836 $56,047 $56,253 $56,455 $56,653 $56,847 $57,037 $791 $791 $791 $791 $791 $791 $791 $791 $791 $791 $791 ($5,358) ($28,906) ($3,026) $23,285 $55,592 $94,311 $134,177 $175,024 $216,715 $239,001 $243,784 $5,741 $69,414 $92,195 $115,205 $143,899 $178,654 $214,177 $250,266 $286,749 $303,336 $301,886

Source: Byron Capital Markets

Jonathan Lee, MBA 647.426.1674 jlee@byroncapitalmarkets.com

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American Vanadium Corp.

Appendix 3 Cash Flow Statement

Exhibit 10 Cash Flow Statement
2011 Cash flows from operating activities Operating income (loss) Depreciation Stock-based compensation Changes in non-cash working capital Net cash used in operating activities Cash flows from investing activities Reclamation bonds Purchase of property and equipment Net cash (used in) provided by investing activities Cash flows from financing activities Exercise of warrants Proceeds from additional borrowings, net Equity issue Net cash provided by financing activities Cash and cash equivalents Cash at beginning of the period Cash at end of the period
Source: Byron Capital Markets

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021 $4,784 $2,267 $190 $4,129

($2,352) ($23,547) $25,880 $26,310 $32,308 $38,718 $39,867 $40,845 $41,692 $22,285 $0 $17,085 $13,651 $10,907 $166 $182 $200 $210 $0 $0 ($6,755) ($663) $8,715 $215 ($608) $6,963 $210 ($608) $5,564 $206 $8 $4,445 $202 $8 $3,552 $198 $8 $2,838 $194 $2,470

($2,186) ($6,280) $32,977 $36,765 $40,629 $45,283 $45,645 $45,501 $45,450 $27,787 $11,370

$0 $0 $0 ($85,000) $0 ($85,000)

$0 $0 $0

$0 $0 $0

$0 $0 $0

$0 $0 $0

$0 $0 $0

$0 $0 $0

$0 $0 $0

$0 $0 $0

$0 $0 $0

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $42,038 ($3,228) ($3,519) ($3,836) ($4,181) ($4,557) ($4,967) ($5,414) ($5,902) ($6,433) $3,700 $45,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,700 $87,038 ($3,228) ($3,519) ($3,836) ($4,181) ($4,557) ($4,967) ($5,414) ($5,902) ($6,433) $1,514 ($4,242) $29,748 $33,245 $36,794 $41,102 $41,088 $40,533 $40,036 $21,885 $4,937 $3,137 $4,651 $409 $30,157 $63,402 $100,196 $141,299 $182,386 $222,919 $262,955 $284,840 $4,651 $409 $30,157 $63,402 $100,196 $141,299 $182,386 $222,919 $262,955 $284,840 $289,777

Jonathan Lee, MBA 647.426.1674 jlee@byroncapitalmarkets.com

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American Vanadium Corp.

Appendix 4 Management and Directors

William J. Radvak, President, CEO and Director Mr. Radvak received a Mining and Mineral Process Engineering Degree (1986) from the University of British Columbia. In January 2010, he joined AVC as President and CEO. Previously, Mr. Radvak was a Founder and CEO of Response Biomedical Corporation (Response Biomedical), a publicly-listed medical device company that commercializes rapid immunoassay diagnostic tests for its marketing partners, 3M Company and Roche Diagnostics Corp. Mr. Radvak led Response Biomedical from its inception to a 90employee company, and raised in excess of $50 million in public offerings. Michael Doyle, Executive Vice President, Operations Mr. Doyle has more than 30 years of domestic and international mining experience in surface and underground operations, most recently as Executive Vice President of Allied Nevada Gold Corp. (Allied Nevada Gold). Prior to joining Allied Nevada Gold, Mr. Doyle held positions of Senior Vice President of Operations for Kinross Gold Corporation, Vice President and General Manager of Round Mountain Gold Corp., (Kinross-Barrick joint venture), and General Manager of Gold Bar operations for Atlas Gold Corp.. He graduated in 1977 from the University of California at Santa Barbara with a degree in geology and was the past chairman of the Nevada Mining Association. Alan D. Branham, Vice President, Exploration and Director Mr. Branham has more than 20 years of international exploration experience, most recently as President of Midway Gold Corp. Prior to Midway, Mr. Branham was a senior geologist with Newmont Mining Corp. Mr. Branham earned a Master of Science Degree in Economic Geology from Washington State University, a Bachelor Degree from Stanford University, California, and has participated in successful exploration projects in the south-western United States, Mexico and Central America. Mr. Branham has conducted extensive exploration in the Great Basin area of Nevada for the past eight years, resulting in several significant mineral discoveries. In addition, he was involved with the discovery of several world-class gold deposits in the Carlin Trend in Nevada. Peter Miller, Chief Financial Officer Since May 1997, Mr. Miller has been the Chief Financial Officer of Quest Management Corp., a company that provides management and administrative services to public companies. Mr. Miller has also served as an officer and director of a number of public companies. Mr. Miller obtained a Bachelor of Applied Science Degree from the University of Waterloo, Ontario in 1970 and was granted the designation of Chartered Accountant from the Ontario Institute of Chartered Accountants in 1974. Brian J. McAlister, Director Mr. McAlister is the President of Cornet Capital Corporation, a company owned and controlled by Mr. McAlister, which is engaged in the business of assisting start-up corporations with capital raising and other consulting activities. Over the past 27 years, Mr. McAlister has assisted in excess of 25 early stage companies in various industries including biotechnology, enterprise software, and natural resources. Mr. McAlister holds a Bachelor of Science Degree (1979) with a major in Finance from the University of Denver.
Jonathan Lee, MBA 647.426.1674 jlee@byroncapitalmarkets.com

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American Vanadium Corp.

Brian E. Bayley, Director With more than 25 years of business experience, Mr. Bayley has extensive knowledge in areas of asset backed lending, real estate, corporate restructuring and natural resources. Mr. Bayley is currently a Director and Resource Lending Advisor of Sprott Resource Lending Corp. (formerly Quest Capital Corp.), a TSX and NYSE Amex listed resource lending corporation. Previously, he was President and CEO of Quest Capital Corp. Mr. Bayley holds an MBA from Queens University. Mr. Bayley is currently a director and/or officer on numerous other public companies. George T. Hawes, Director Mr. Hawes is a private investor and is President of G.T. Hawes & Co., a private New York real estate and investment company. He is currently a Director of Proginet Corporation, an enterprise security software company, and is a Director of Midway Gold Corp., a gold exploration and development company. Dr. E. Kelly Hyslop, Director Dr. Hyslop is a Director of Proginet Corporation, a publicly traded company on the NASDAQ BB, in Long Island, New York. Dr. Hyslop is retired after 25 years as a Physician and Clinical Professor in the Department of Medicine at UBC. He has been involved in multiple start-up companies, generally in finance and then involved on the Board or Directors.

Jonathan Lee, MBA 647.426.1674 jlee@byroncapitalmarkets.com

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American Vanadium Corp.

IMPORTANT DISCLOSURES Analyst's Certification All of the views expressed in this report accurately reflect the personal views of the responsible analyst(s) about any and all of the subject securities or issuers. No part of the compensation of the responsible analyst(s) named herein is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the responsible analyst(s) in this report. The particulars contained herein were obtained from sources which we believe to be reliable but are not guaranteed by us and may be incomplete. Byron Capital Markets Ltd. (Byron) is a Member of IIROC and CIPF. Byron compensates its research analysts from a variety of sources. The research department is a cost centre and is funded by the business activities of Byron including institutional equity sales and trading, retail sales and investment banking. Since the revenues from these businesses vary, the funds for research compensation vary. No one business line has greater influence than any other for research analyst compensation. Dissemination of Research Byron endeavours to make all reasonable efforts to provide research simultaneously to all eligible clients. Byron equity research is distributed electronically via email and is posted on our proprietary website to ensure eligible clients receive coverage initiations and ratings changes, targets and opinions in a timely manner. Additional distribution may be done by the sales personnel via email, fax or regular mail. Clients may also receive our research via a third party. Company Specific Disclosures: 1 This company has compensated Byron for investment banking services in the preceding 12 months. If those services were managing or co-managing an initial or secondary offering of securities for this company, the issuance of this report is, at minimum, 40 calendar days from the closing of an initial offering, or 10 calendar days from the closing of a secondary offering. 2 The research analyst(s) and/or associates who prepared our original research report have viewed the material operations of this company. 3 Their travel expenses were not reimbursed by this company, its employees or affiliates. Investment Rating Criteria STRONG BUY The security represents extremely compelling value and is expected to appreciate significantly from the current price over the next 12-18 month time horizon. The security represents attractive value and is expected to appreciate significantly from the current price over the next 12-18 month time horizon. The security is considered a BUY but in the analysts opinion possesses certain operational and/or financial risks that may be higher than average. The security represents fair value and no material appreciation is expected over the next 12-18 month time horizon. The security represents poor value and is expected to depreciate over the next 12-18 month time horizon.

BUY

SPECULATIVE BUY

HOLD

SELL

Other Disclosures This report has been approved by Byron for distribution in Canada for the use of Byrons clients. Clients wishing to effect transactions in any security discussed should do so through a qualified Byron salesperson, registered in their jurisdiction. Informational Reports From time to time, Byron will issue reports that are for information purposes only, and will not include investment ratings. These reports will be clearly labeled as appropriate.

Jonathan Lee, MBA 647.426.1674 jlee@byroncapitalmarkets.com

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American Vanadium Corp.

Company Directory
EXECUTIVE
Campbell Becher Ed Flood Geoff Clarke, MBA, LL.B., LL.M. Dale Sampson Gillian Wong-Hinds, CGA Robert Orviss, CFA Derrick Chiu Brad Freelan John Rak Chris Hobbs, CA Greg Borsk, CA Steve Lambros, MD Elisa Chio Mary Stuart Russell Mills Marco Beretta Guy Gordon, CFA, MBA Jon Hykawy, PhD, MBA Al P. Nagaraj, M.S., MBA Byron Berry, M.A., CFA Jeff Wu, CFA Brian Szeto, M.A., CFA Jonathan Lee, MBA Merril W. McHenry, CFA Omid Ameri Trading Desk Nick Stajduhar Jonathan Samahin, CFA Tom Chudnovsky David Kemp Cyrus Osena Graham Farrell Kariv Oretsky Nick Perkell Sandy Lam Mike Gardner Charles Pollock Charlie Mitchell Taylor Davison Kathy Sherban Joe Ladeira Beata Antoszek, CGA Elisabeth Wightwick Dorothy Dudek Shawn Morgan Sandra Stefanescu Victoria Williston Jen Levy Sandra Day Zarina Belcher Chief Executive Officer Non-Executive Chairman President and Chief Operating Officer Chief Compliance Officer Chief Financial Officer 416-867-8882 416-867-1569 416-867-8883 647-426-1657 campbell@byroncapitalmarkets.com eflood@byroncapitalmarkets.com gclarke@byroncapitalmarkets.com dsampson@byroncapitalmarkets.com gwh@byroncapitalmarkets.com rorviss@byroncapitalmarkets.com derrick@byroncapitalmarkets.com bfreelan@byroncapitalmarkets.com jrak@byroncapitalmarkets.com chobbs@byroncapitalmarkets.com gborsk@byroncapitalmarkets.com slambros@byroncapitalmarkets.com elisa@byroncapitalmarkets.com mstuart@byroncapitalmarkets.com rmills@byroncapitalmarkets.com mberetta@byroncapitalmarkets.com guy@byroncapitalmarkets.com jhykawy@byroncapitalmarkets.com anagaraj@byroncapitalmarkets.com bberry@byroncapitalmarkets.com jwu@byroncapitalmarkets.com bszeto@byroncapitalmarkets.com jlee@byroncapitalmarkets.com mmchenry@byroncapitalmarkets.com oameri@byroncapitalmarkets.com

INVESTMENT BANKING
Managing Director Managing Director, Head of Equity Capital Markets Vice President, Investment Banking Vice President, Investment Banking Co-Head, Mergers and Acquisitions Co-Head, Mergers and Acquisitions Associate Associate Associate Associate Associate, Syndication 647-426-1668 647-426-1662 416-867-3144 604-697-2456 647-426-0467 647-426-0466 647-426-1659 647-426-0288 604-616-5311 647-426-0290

RESEARCH
Managing Director, Head of Research, Oil & Gas Analyst Head of Global Research, Clean Tech and Materials Analyst Special Situations Analyst Strategist Mining Analyst Mining Analyst Battery Materials and Technologies Analyst Mining and Metals Analyst Associate

647-426-0289 647-426-1672 647-426-1656 647-426-0291 416-867-1623 604-697-2455 647-426-1673 647-426-1674 647-426-1660 416-867-3984

SALES & TRADING

(main telephone line) Vice President, Head of Institutional Sales Vice President, Head of Global Trading Vice President, Institutional Sales Managing Director, Institutional Trading Vice President, Head of Business Development Institutional Sales & Trading Institutional Sales Institutional Trading Associate Head of Proprietary Trading Proprietary Trader Proprietary Trader Equity Trader Sr. Vice President, Operations and Administration Vice President, Compliance Controller Executive Assistant Executive Assistant Managing Editor & Production Coordinator Compliance Officer Administrative Assistant Associate, Operations and Administration Office Manager Vancouver Office Manager Toronto 647-426-1670 647-426-1664 647-426-1670 647-426-1665 647-426-1666 647-426-1675 647-426-1667 647-426-1658 647-426-1671 416-867-2375 416-867-8880 416-967-8880 416-469-9609 416-867-8880 nick@byroncapitalmarkets.com jsamahin@byroncapitalmarkets.com tom@byroncapitalmarkets.com dkemp@byroncapitalmarkets.com cosena@byroncapitalmarkets.com gfarrell@byroncapitalmarkets.com koretsky@byroncapitalmarkets.com nperkell@byroncapitalmarkets.com slam@byroncapitalmarkets.com michaelgardner@byroncapitalmarkets.com cpollock@byroncapitalmarkets.com cmitchell@byroncapitalmarkets.com tdavison@byroncapitalmarkets.com ksherban@byroncapitalmarkets.com jladeira@byroncapitalmarkets.com bantoszek@byroncapitalmarkets.com ewightwick@byroncapitalmarkets.com ddudek@byroncapitalmarkets.com smorgan@byroncapitalmarkets.com sstefanescu@byroncapitalmarkets.com vwilliston@byroncapitalmarkets.com jlevy@byroncapitalmarkets.com sday@byroncapitalmarkets.com zbelcher@byroncapitalmarkets.com

FINANCE, ADMINISTRATION AND OPERATIONS

416-867-1650 647-426-1660 416-364-2678 416-867-8881 647-426-0471 647-426-0473 641-426-0470 416-867-9800 416-867-9064 604-697-2540 647-426-1660

TORONTO VANCOUVER 4 KING STREET WEST, SUITE 1100 1075 WEST GEORGIA STREET, SUITE 1330 TORONTO, ON M5H 1B6 VANCOUVER, BC V6E 3C9

Jonathan Lee, MBA 647.426.1674 jlee@byroncapitalmarkets.com

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