Rochester Resources Ltd. (TSXV: RCT) – Continued Exploration and Development Work at the Florida Vein System

Investment Highlights:

• Since our previous report on Rochester Resources Ltd.(“RCT”, the “company”) in September 2007, the company hasexperienced a lot of operational difficulties at Mina Real.
• Production, grades and recovery rates have been lower thaninitial expectations.
• RCT expects to increase its mill capacity to 300 tpd (up from200 tpd) in 2010 (90% of the work is already completed).
• In January 2009, the company sold 20% of its 100% interest inMina Real for $2.95 million (cash). RCT has the option to reacquirethe 20% interest.
• In October 2008, the company released a geological resourcepotential estimate for the Florida 4 vein system of 0.5 million -2.5 million tonnes at 4 – 8 g/t of gold, and 60 – 100 g/t ofsilver.
• For the first nine months of FY2010, the company reported anet loss of $3.09 million (EPS: -$0.04) from revenues of $5.85million, compared to a net loss of $9.78 million (EPS: -$0.27)from revenues of $2.84 million in the same period in FY2009.
• We are downgrading our rating from BUY to HOLD.

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