The Micro Cap Opportunity

06/30/2008
The MCO Daily - Before the Bell for Tuesday July 1st, 2008

The Micro Cap Opportunity 'Daily'

‘Before the Bell’ for Tuesday, July 1st, 2008

On the Radar: MYRL, GYGC, PRPL, DLKM, PPHM, ZHNE

This morning's top Micro Cap trading ideas include, Military Resale Group, Inc. (OTCPK: MYRL), Guyana Gold Corp. (OTCPK: GYGC), Park Place Energy Corp. (OTCBB: PRPL), Douglas Lake Minerals, Inc. (OTCBB: DLKM), Peregrine Pharmaceuticals, Inc. (NASD: PPHM), Zhone Technologies, Inc. (NASD: ZHNE).

MILITARY RESALE GROUP, INC. (OTCPK: MYRL)

Up 66.67% Yesterday

Detailed Quote: http://finance.yahoo.com/q?s=MYRL.PK

Military Resale Group, Inc. (MYRL) operated for over eight years as a specialist in military distribution. MYRL formed a new subsidiary company, Military & Specialty Distributors, Inc. ("MSDI"). MSDI will focus on the planned expansion as a national distributor to service commissaries and retail services throughout the DeCA system, and the 13.7 million patrons who purchase $5 billion in products each year. MSDI has identified numerous new products to market that will bring the company new revenues and better profit margins than in the past. The company has also begun to expand its retail operations which now mirror the expanded Military Resale Group wholesale operations. Military Resale Group historically sold a wide variety of grocery and household items.

Recent MYRL News:

June 30, 2008 - Military Resale Group, Inc. Announces Recent Progress and Updates

Military Resale Group, Inc. (PINKSHEETS: MYRL) announced today that the Company is in final negotiations to acquire two major food distribution contracts for the Northeast United States. These new product lines will initially be distributed by companies with existing relationships with MYRL and its subsidiaries. MYRL also announced that it is close to securing a significant credit facility which will enable the Company to further implement its growth plan.

Nick Kontonicolas, Chairman of MYRL, stated, "We have been working diligently to restructure the Company to be not only a distributor of food products to the U.S. Military commissary system but a significant distributor of specialty and ethnic foods and new products being introduced to the market." Mr. Kontonicolas added, "We will be happy to review and plan the distribution of any new and interesting food or beverage product that is presented to us. You can contact me personally at ctradeusa@juno.com with your offers."

GUYANA GOLD CORP. (OTCPK: GYGC)
Up 8.70% Yesterday

Detailed Quote: http://finance.yahoo.com/q?s=GYGC.PK

Guyana Gold Corp. is a junior mineral exploration company that specializes in identifying, acquiring and developing precious and base metal properties as well as assessing whether certain claims possess exploitable commercial and precious mineral reserves. The Company's objective is to develop a balanced global portfolio of early-to-advanced stage projects. Guyana is currently focused on gold projects in the Caribbean. In Guyana, the Company's key mineral project is located in the region of Port Kaituma.

Recent GYGC News:

June 30, 2008 - Guyana Gold Corp. to Cancel 114,250,000 of Its Common Shares of the Company Stock

Guyana Gold Corp. (OTC: GYGC-News) is pleased to announce that a decision has been made to cancel 114,250,000 common shares. This cancellation will reduce the company's outstanding shares from 165,038,947 to 50,788,947, which represents approximately 70% of the issued and outstanding shares.

Eduard Aronov, President of Guyana Gold Corp., commented that, "This action to reduce the company's issued and outstanding shares shows the great commitment level management has for its shareholders and to the future growth of the company." Additionally he noted, "I am confident that our future revenue stream will continue to produce results that our shareholders have come to expect. These things, combined with other exciting events we see in the very near future, should make the next couple of years very exciting for Guyana Gold Corp."

PARK PLACE ENERGY CORP, INC. (OTCBB: PRPL)
Up 40.94% Yesterday

Detailed Quote: http://finance.yahoo.com/q?s=PRPL.OB

Park Place Energy Corp. is a North American oil and gas company that is participating in high impact opportunities. The Company currently has gas production in North-East British Columbia and is committed to developing the asset as well as acquiring additional blue-sky gas opportunities in the area, with a focus on shale gas. Park Place's management is focused on optimizing profitability and enhancing shareholder value.

Recent PRPL News:

June 30, 2008 - Park Place Energy Corp. Revenues Surpass Expectations with Significant Cash Flow

Park Place Energy Corp. ("Park Place" or "the Company") is pleased to announce that revenues from production for the month of May have surpassed $260,000 CDN. Additionally, the company is waiting for confirmation with respect to the liquids of approximately 19 barrels per million cubic feet. Production is coming from the Company's core property, Eight Mile, in North East British Columbia where the Company and its partners have tied in the 7 of 8 Well.

With natural gas prices strengthening well over $13 MMBTU this summer and crude oil running well over $140 per barrel, market conditions appear promising for the development of Canada's immense petroleum resources. Park Place has positioned itself in North East British Columbia and has created a core area around its Eight Mile gas property and has a highly experienced operating partner in Terra Energy (TSX.V:TTR).

With the Company now generating significant cash flow for the first time in its history as a public company, Park Place and its partners will review the recently acquired 3D seismic data on the Eight Mile Property over the upcoming weeks and decisions will be made as to where to drill additional earning and step out wells. Park Place is also aggressively seeking to acquire a shale gas property with blue sky potential with a focus on the Horn River Basin and area near its producing Eight Mile property.

Park Place Energy President and CEO David Johnson said, "This is a very exciting time for Park Place with significant cash flow and we have graduated from being a junior explorer to a substantial producer in our core area, North Eastern British Columbia"

DOUGLAS LAKE MINERALS, INC. (OTCBB: DLKM)
Up 35.35% Yesterday

Detailed Quote: http://finance.yahoo.com/q?s=DLKM.OB

DLKM is an emerging mineral exploration company focused on exploring and developing gold, copper, nickel, uranium and diamond mining opportunities in Tanzania. DLKM has a portfolio of 51 prospecting concessions.

Recent DLKM News:      

June 30, 2008 - Douglas Lake Minerals Successfully Closes Acquisition of Mbwemkuru Project

Harp Sangha, CEO and President of Douglas Lake Minerals Inc. (DLKM-OTCBB) announced today that the company has closed the acquisition of the Mbwemkuru Alluvial Gold Project Licences in the Lindi region in Southeastern Tanzania.

The Prospecting Licences are situated in the SE margin of the Karoo Basin and cover an area of 430 square kilometers. The property is currently in small scale production by the owner. One of the most significant prospects is an eight by two kilometer block, with high gold concentrations within 1.0 and 1.5 meter zones between the gravel and bedrock. Results of initial systematic sampling of alluvium as reported by Echo Tech Laboratories showed an average grade of 9.48 g/t gold.

The vendor of the property will receive $1,000,000.00 USD, a 3% Net Smelter Return (NSR), and a five year employment contract, totaling $540,000.00 USD. The necessary funding was provided by the Tianjin Institute of Geology and Mineral Resources (TIGMR).

"We are extremely pleased with this new acquisition and we are looking forward to announcing further assay results in the near future," stated Harp Sangha.

PEREGRINE PHARMACEUTICALS, INC. (NASD: PPHM)                                    Up 13.54% Yesterday

Detailed Quote: http://finance.yahoo.com/q?s=PPHM

Peregrine Pharmaceuticals, Inc. is a biopharmaceutical company with a portfolio of innovative product candidates in clinical trials for the treatment of cancer and hepatitis C virus (HCV) infection. The company is pursuing three separate clinical programs in cancer and HCV infection with its lead product candidates bavituximab and Cotara(R). Peregrine also has in-house manufacturing capabilities through its wholly owned subsidiary Avid Bioservices, Inc. (http://www.avidbio.com), which provides development and bio-manufacturing services for both Peregrine and outside customers. Additional information about Peregrine can be found at http://www.peregrineinc.com.

Recent PPHM News:

June 30, 2008 - Peregrine Pharmaceuticals Doses First Patient in Phase II Trial of Bavituximab in Patients With Non-Small Cell Lung Cancer

Peregrine Pharmaceuticals, Inc. (Nasdaq: PPHM) today announced that patient screening and dosing has begun in a Phase II trial designed to evaluate the safety and efficacy of bavituximab in combination with chemotherapy in patients with non-small cell lung cancer (NSCLC). The primary objective of the study is to assess the overall response rate to the combination of bavituximab with a standard regimen of carboplatin and paclitaxel in NSCLC patients. The multi-center clinical trial is being conducted in India.

"The initiation of patient enrollment and dosing in our trial of bavituximab in combination with chemotherapy in lung cancer patients marks an important milestone in our Phase II bavituximab clinical program," said Steven W. King, president and CEO of Peregrine. "We are eager to test the combination of bavituximab with carboplatin and paclitaxel in these patients, since 50% of advanced cancer patients treated with this combination in our Phase Ib trial achieved an objective tumor response. We look forward to learning more about bavituximab's potential in NSCLC, an important new indication that is a leading cause of cancer deaths for both men and women."

In the trial's two-stage design, up to 21 patients with NSCLC will be enrolled initially. The study will then be expanded up to a total of 49 patients if promising results are observed in the initial cohort. Secondary objectives of the study include time to tumor progression, duration of response, overall patient survival and safety parameters. Tumor response in the study will be evaluated using Response Evaluation Criteria in Solid Tumors (RECIST) parameters. Patients may continue to receive bavituximab as long as the cancer does not progress and side effects are acceptable.

The trial is being conducted according to International Conference on Harmonization (ICH) and Good Clinical Practices (GCP) standards.

Lung cancer is a major cause of cancer deaths worldwide. According to the American Cancer Society, in the U.S. lung cancer is the second most commonly diagnosed cancer in men and women and is the leading cause of cancer deaths. It estimates that in the U.S. in 2008, there will be approximately 215,400 new cases of lung cancer and an estimated 161,800 lung cancer deaths. Non-small cell lung cancer, or NSCLC, is the most common type of lung cancer, accounting for approximately 85-90% of lung cancer cases.

Bavituximab is a monoclonal antibody that binds to the cellular membrane component phosphatidylserine (PS) that is usually located inside cells, but which becomes exposed on the outside of the cells that line the blood vessels of tumors, creating a specific target for anti-cancer treatments. By binding to PS, bavituximab is believed to help mobilize the body's immune system to destroy the tumor and the tumor blood vessels. Bavituximab currently is in Phase II combination therapy trials for the treatment of advanced breast cancer and non-small cell lung cancer and a second Phase II trial in breast cancer is expected to begin soon. In a Phase Ib trial in advanced cancer patients, bavituximab plus chemotherapy appeared to have a safety profile consistent with chemotherapy alone and showed positive signs of clinical activity, achieving objective response or disease stabilization in 50% of the evaluable patients. A Phase I bavituximab monotherapy trial in advanced solid cancers is continuing.

ZHONE TECHNOLOGIES, INC. (NASD: ZHNE)
Up 11.43% Yesterday

Detailed Quote: http://finance.yahoo.com/q?s=ZHNE

Zhone Technologies, Inc. (NASDAQ:ZHNE) is a global leader in multi-service access network solutions, serving more than 700 of the world's most innovative network operators. The company offers the industry's broadest fully-integrated portfolio of MSAP, FTTx, EFM and Wi-Fi access technologies, enabling a full suite of services, including residential and business broadband, VoIP, and High-Definition IPTV. Zhone's converged multi-service access platform helps operators rapidly deploy premium services using copper, fiber, and wireless while improving network agility and reducing costs. www.zhone.com

Recent ZHNE News:

June 30, 2008 - Zhone MDU Solutions Gain Traction With Aggressive Growth CLEC Maskatel in Quebec

Zhone Technologies, Inc. (NASDAQ:ZHNE), a global leader in multi-service access solutions, today announced that leading Quebec CLEC Maskatel has selected Zhone's next-generation MALC(TM) 1U POTS/DSL platform to provide high-speed services to Multi-Dwelling Units (MDUs). Zhone's 1 Rack Unit (RU), 48 port configuration of voice and ADSL2+ ports with Ethernet uplinks is uniquely suited to the MDU play. Maskatel cited Zhone's robust platform, superior interoperability and plug and play configuration as deciding factors against competing platforms.

Zhone's 1U MALC design provides the field-proven performance of Zhone's multi-service access platform with the latest in processor speeds and chipset evolution for both voice and data services. The product is fully triple-play compatible and comes with Zhone's new easy to use embedded web browser, making the system simple to configure and activate.

"Our business is evolving rapidly in a very competitive market space," said Donald Dupuis, president of Maskatel. "We needed a vendor with cutting edge abilities, based on a mature and stable platform that was price competitive and ready to go. We found Zhone to be the triple winner. The platform fits all of our needs right out of the box."

"Maskatel is an ideal customer for our 1U MALC product design," said Steven Glapa, VP of product management and marketing for Zhone. "We did a lot of active listening before we delivered on the product and it's paying off in real interest based on ease of install, value and feature set. CLECs and IOCs alike are impressed with what we've crafted and the price point. It's not just a game of speeds and feeds, but of making the overall business fit."

About Maskatel, Telephone Drummond, and Telephone Guevremont

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