CEO Quarterly reports
December 2007

Welcome to the December 2007 edition of Murgor’s Monthly newsletter.  This newsletter provides a summary of Murgor’s key exploration activities and management decisions that have taken place during the month of November 2007.   An update on upcoming activities is also provided.  

The cold weather has finally arrived in northern Manitoba.  I know the local residents may not agree with me but to Murgor, these daily highs of -20°C are welcome.  What these freezing temperatures mean to Murgor is that we are now able to pack the winter roads and make ice on lakes and rivers where Murgor will be working in January.

Although the month of November was a busy one for exploration, the beginning of December will see exploration activities slowly winding down for 2007.  Until year end, Murgor will complete its preliminary phase of drilling at Wim but will mostly work in preparation for its intensive drilling season in early 2008.  As mentioned above this work consists mostly of packing roads so the frost penetrates the ground as deep as possible (thus extending the drilling season), making ice on rivers and lakes (a minimum of 40 inches of ice is necessary to drill on lakes), and completing camp building to house contractors and Murgor personnel during drilling programs.

Drilling continued at the Wim property in November and Murgor will be completing drill hole #15 before the drill shuts down for the holiday period. Geochemical results are pending for eleven drill holes. When the drill shuts down for 2007, Murgor will have completed over 7,200 metres of drilling at the Wim property.  In 2007, Murgor completed more than 15,200 metres of drilling on the Hudvam, Fon and Wim properties.  A figure we are hoping to double for 2008 in the Flin Flon belt, where drilling is scheduled to resume during the second week of January with two drills at Wim and shortly thereafter with three drills at Hudvam.

Starting in January of 2008, the Hudvam and Wim sites will be beehives of activities with drilling contractors working to define the orebodies and conduct exploration drilling, geotechnical and environmental personnel from Golder Associates who will be working towards pre-feasibility studies at both sites, geophysical contractors conducting surface and down hole geophysical work, and Murgor personnel, working diligently to advance both projects at a very fast pace.

Unfortunately, as of late, the markets have also been very cold.  Unfavourable economic conditions, a short term pullback in metal prices combined with tax loss season and the negative perception of the share consolidation at Murgor have all contributed in the weakness of Murgor’s stock price.  In that regard, patience is in order. 

Management at Murgor has taken the means to move the Corporation towards a stronger future in the mid- to long-term.  All factors contributing to Murgor’s struggling share price are temporary.  In the longer term, economic conditions and metal prices are solid and tax loss selling season is exactly that: “a season” that will be over in December.  Murgor’s assets have not changed as a result of the consolidation and will only get better with Murgor’s exploration and development strategy.   It should be noted that this struggle in the markets is shared with other companies in the junior mining sector and even, to some degree, by majors.

In Quebec, Murgor’s properties are being explored or developed by skilled partners.  At the Windfall property, Noront Resources is earning a 50% interest in 29 claims from Murgor and equal joint venture partner Freewest Resources Canada Inc.  Noront completed a drilling program at the Windfall property in late November and more importantly, announced recently that permitting was in place for the sinking of a ramp at the property.  The preliminary work for this ramp is starting in December 2007.  The ramp will start on the Murgor-Freewest-Noront option and will crosscut Murgor’s mineralized zones F-11 and F-17.

At the Barry property, Metanor Resources has completed a 40,000 ton bulk sample of the Barry deposit in November of 2007, where Murgor retains a 1% NSR.  Metanor also announced that it was raising $5 million dollars to explore the Barry and Nelligan Properties in Quebec. Murgor retains a 1% NSR on the Barry property and Metanor is earning up to 70% interest in the Nelligan Property from Murgor.

In early September, Murgor started a first phase of drilling at the Wim property.  When drilling stops in December, this preliminary program will have swelled to 7,200 metres of drilling.  This initial drill program consisted mainly of exploration drill holes aimed at testing the immediate extensions of the Wim Deposit but also included a few infill drill holes.  This preliminary drill program will guide the second phase of drilling (13,000 metres) set to begin in January 2008, and designed to upgrade the Wim deposit resource to an Indicated and Measured category, as well as to test property-scale exploration targets.  Table 1 shows the list of drill holes completed to date: 

TABLE 1:  List of Drill Holes completed to date in 2007 at the Wim Property.

WZS07-001 –  2.83% Cu, 3.35 g/t Au, 12.49 g/t Ag and 0.25% Zn over 11.10 meters
WSZ07-002 –  2.23% Cu, 1.13 g/t Au,   8.62 g/t Ag and 0.82% Zn over 2.23 meters
WSZ07-003 –  2.33% Cu, 2.69 g/t Au, 12.01 g/t Ag and 0.28% Zn over 5.74 meters

                                                                                                

                                                                                                                                 FIG. 2: Hudvam camp ready for january drilling.                  

Nothing new to report at the Fon Property except that Murgor is continuing its compilation of geophysical, geochemical and geological data on the Fon and Abbott Lake deposits, and at the property scale to define new exploration targets (please visit our website in the “Projects Section” to view these new targets at Fon).  Drilling is scheduled to start in March 2008 and a minimum drilling program of 1,500 metres is planned.

Nothing to report at these properties except at the Snow-H property where Murgor is making ice on the Grass River, to provide access to the property, in preparation for a basal till survey in early 2008.  

A total of nearly 3,500 metres of drilling is planned at the Tyr, Flin-D and Snow-H Projects starting in March of 2008 with a helicopter supported drill rig. 

Patience, patience, patience…  When caught in a snow storm, one hunkers down and waits for more clement weather.  The whole exploration sector has been suffering but it is temporary… just like a snow storm.  As metal prices soared, the share price of producers and explorers alike has not kept up proportionally.  Markets are not bullish yet on the junior mining sector.  Eventually, the junior mining sector will “sling-shot” on the strength of metal prices and companies with solid assets, like Murgor, will prevail.

The value of Murgor’s assets is undeniable and the value of these assets is only growing with continued exploration and development.  Murgor is actively conducting very extensive exploration and development programs in one of the most prolific greenstone belt in the world.  Murgor enjoys a strong partnership with one of the most successful mid-tier producer (a major in the making) in the world: HudBay Minerals Inc.  Murgor has a dedicated and talented team of exploration geologists in place with ten full time geologists on staff.  Murgor has an experienced management team with a proven track record and a solid mid- to long-term vision.  …two projects undergoing pre-feasibility studies on deposits adjacent to existing infrastructure.  When the bull market in junior mining companies returns, it is companies like Murgor that will lead the pack in shareholder value.
Patience, patience, patience…

Please keep logging on to www.murgor.com for more up to date details on the Corporation.
Thank you for your interest in Murgor Resources and for your continued support. 

This newsletter includes certain "forward-looking statements". All statements other than statements of historical fact, included in this newsletter, including, without limitation, statements regarding potential mineralization, resources and reserves, exploration results, and future plans and objectives of Murgor, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Murgor's expectations are exploration risks detailed herein and from time to time in the filings made by Murgor with securities regulators.