Dear Anglo Swiss Shareholders,

In our ongoing efforts to provide broader communications and market information, we are pleased to provide you an Industry Sector Bulletin discussing current market opinions and/or conditions that affect the price, supply, and demand of Gold.

The following article describes why Gold is now seen as a good investment, even as “The price of gold has soared to a 27-year high.” Currently, market factors such as limited supply with strong demand, in addition to Gold being viewed as a safe haven, and record demand for Gold for the jewelry sector, and other factors noted in the article, have all helped pushed the price to record levels.

If the article holds true, then resource exploration companies focused on Gold, such as Anglo Swiss Resources, will benefit from the current Gold price.

Recently, Anglo Swiss commenced a drilling program at its Fry Inlet Diamond Property in the Lac de Gras region of the NWT. Click here to view the entire press release.

For Further information on Anglo Swiss Resources please feel free to click the following link to visit the Company’s Investor Relations Hub.

Anglo Swiss IR HUB

Regards,

AGORACOM Investor Relations

The Gold Rush

01/10/2007

The flight to safety has driven the price of bullion to a 27-year high. Paul Farrow talks to the funds managers prospecting for returns and suggests how you too might strike a rich seam

The price of gold has soared to a 27-year high and investors can't get enough of it – on Friday 29 September it traded at $743 an ounce.

"We love it," says Mark Harris, a portfolio manager at New Star. "We had reduced the weighting down to zero in July but we started to invest in gold again in August and now have more than 10 per cent exposure in our aggressive portfolios."

"The prospects for gold right now are the best of my career,” says Evy Hambro, the manager of BlackRock’s gold mining funds. Peter Hambro (no relation), the founder of Hambro Mining, the second-largest gold producer in Russia, reckons that as long as turmoil remains in global financial markets there is nothing to stop gold revisiting its record highs.

Speaking on the Telegraph’s Business Show, he said: "There is so much uncertainty around and if you’re looking for a basic store of value what else do you choose? All currencies seem to be in a degree of flux. It is about how much currencies will devalue against gold. The dollar will probably fall further – so gold could reach the record high levels of the 1970s of $850 an ounce."

Gold has long been viewed as a safe haven against inflation (it has maintained its value in real terms over decades) and volatile stock markets, and as a hedge against a weak US dollar. And the credit crunch wreaking havoc on global economic expectations is persuading investors to seek out gold as a diversity play.

The price is also determined by supply and demand – and, put simply, there is limited supply but big demand. The demand for gold in the jewellery, retail investment and industrial sectors reached new heights in the second quarter of 2007.

Global demand for gold jewellery showed the strongest surge, reaching a record $14.5bn, 37 per cent higher than in the same period last year, with a particular pull across the key gold markets of Greater China, India, the Middle East and Turkey, according to the World Gold Council.

Meanwhile, the council says supply "remained constrained", with stable prices reducing the supply of scrap.

In the past the price of gold has been affected by production, supply from the central banks and "hedging" by gold mining companies, which borrowed gold and then sold it in the market to pay for excavation. But the impact of all three has fallen. Production is declining, the central banks continue to sell less gold than the maximum they are allowed to and hedging is less prevalent.

"There are outstanding fundamentals in the gold market. It is also still a safe haven and has a negative correlation to the dollar so is good to own when the greenback weakens,” says Evy Hambro.

"Gold is under-owned by the likes of China and Japan. Many of the central banks own poor-value US treasuries and they could be wondering whether they should start to build up their gold reserves again."

Another huge driver of the gold price has been the emergence of gold exchange-traded funds. The gold EFT market has been around for only four years, but in that time it has provided a cost-effective and easy alternative for investors to get exposure to gold without physically owning it.

ETF Securities’ physical gold ETF has seen a 240 per cent jump in assets in the past seven weeks alone.

"People are using them for Isas and Peps," says Hector McNeil of ETF Securities. "And there’s no stamp duty to pay."

Click here to view entire article