Canadian Company Spotlight

Oromin Explorations Ltd. is a growth-oriented resource company focused on exploring the Sabodala gold concession in Senegal, West Africa and the Santa Rosa Dome oil prospect in Argentina. The company is well financed and managed by experienced industry professionals with a track record of discovery.

Profile

With Gold prices up over 30% in the last year alone, it's no wonder why resource investors continue to pour money into commodity markets, particularly companies that mine for the shiny, and increasingly expensive precious metal.

Many investors continue to invest in Gold as a hedge against feared currency weakness, and as many are aware, the US dollar and recently, the euro have both been under significant pressure, which as a result has taken gold prices up to four month highs.

Speaking to Reuters, Yuichi Ikemizu, Tokyo branch manager for Standard Bank, which is one of South Africa's largest financial groups and has interests in almost 40 countries around the world, expressed the case for continued Gold Investment. He told the news provider: "The market is technically bullish and that may spur fund buying, so I expect a bit more upside for gold."

Mr Ikemizu's comments came as commodity trading expert Jim Rogers, who has published several books on investment, told Bloomberg that he expects Gold Prices to continue rising. He told the channel that gold will continue to grow in value for years to come, likely exceeding $2,000 per ounce by the end of the decade.

With the forecast for Gold continuing to stay rosy, we started looking for a Company that is late in the game to enjoy the precious metals rise, and we think that we may have found one. Oromin Explorations Ltd. (TSX:OLE) (OTCBB:OLEPF) is a growth-oriented resource company focused on exploring the Sabodala gold concession in Senegal, West Africa and the Santa Rosa Dome oil prospect in Argentina. The company is well financed and managed by experienced industry professionals with a track record of discovery.

While other resource companies enjoyed the run-up with the price of gold, OLE was in a bit of a slow period over the last few months, and as such the stock price has slowly been creeping downward. However, the Company announced at the end of March that their Full Feasibility Study for their flagship OJVG Gold Project in the Sabodala Gold District of Senegal, West Africa, was on track for completion in late June and public release in early July, 2010.

The Government of Senegal has granted OJVG a 15-year renewable Mining License to proceed with the project in accordance with the recommendations of the Full Feasibility Study being prepared by SRK Consulting (Canada) Inc. and Ausenco Canada Ltd.

This announced sat positively with investors, but what got people into a buying mood was the announcement that the Company has agreed to appoint Peter Grandich as a public relations consultant for a period of twelve months beginning April 1, 2010. His primary responsibilities will be to assist Oromin with the development and implementation of a public investor relations and communication program. Mr. Grandich will provide ongoing assistance to Oromin respecting development and enhancement of Oromin's public and market image.

Now, if anyone has ever been to a resource conference anywhere in North America or has done any research on resource Companies, Peter Grandich is a name that appears everywhere. For over twenty years, Mr. Grandich has provided public relations, corporate communications and corporate financing consulting services to numerous exploration and mining companies. Peter is well known, frequents as a television guest on many business programs in North America, has a strong investor following and is known to align with Companies he personally feels are strong mining plays.

This endorsement, in essence, was the catalyst for the recent stock price run-up. The hiring of Peter Grandich as investor relations for the Company followed by the Company's expected full feasability study arriving in early July is in our opinion, not a coincidence, and many of his followers seemed to agree, sending the stock up an impressive 20%+ by the end of the next trading day.

Now that you are aware of what is happening with Oromin, we will look more in depth at what they are currently doing in West Africa. The Oromin Joint Venture Group ("OJVG" - Oromin 43.5%) is focused on building gold resources and initiating the steps required to develop its 212 sq. km OJVG Gold Project in the heart of Senegal's rapidly growing Sabodala Gold District. OJVG's existing gold resource of 2.19 Million ounces of Indicated resources and 0.35 Million ounces of Inferred resources is based on drilling to May 2009, and does not include drilling below conceptual open pits or at five new discoveries. These deposits and discoveries are situated within a 22km long, 5-8 km wide structural corridor. The eastern side of this corridor hosts four Golouma Style, Higher Grade deposits with combined open pit and underground potential, similar to shear hosted vein type deposits in Canada and West Africa. The western side of the corridor hosts three Masato Style, Bulk Tonnage open pit deposits similar to those being mined at a nearby concession.

The Sabodala Gold District hosts greater than 10 million ounces of gold resources and is quickly becoming a mineral camp that could be of equal or greater stature as the major gold producing operations of IAMGOLD Corp. and Randgold Resources nearby in Mali where >35 million ounces of gold resources have been discovered to date.

Held 100% by Oromin Joint Venture Group Ltd. ("OJVG"). OJVG is owned 43.5% by Oromin with the remainder held by two private companies: Bendon International 43.5% and Badr Investment and Finance 13%. Oromin is the project operator. The 212.6-square-kilometer OJVG Gold Project surrounds a 20.3-square-kilometer Exploitation Concession owned and operated by Mineral Deposits Limited (MDL) of Australia.

MDL operates a new open-pit mine expected to produce 160,000 ounces of gold in 2009, its first year of production. Global resources within MDL's Sabodala and Niakifiri deposits are reported to contain more than 3.5 million ounces of gold. Randgold Resources Ltd. is completing a Pre-Feasibility Study on its 3.3 Million ounce Massawa Gold Project adjacent to the Sabodala Project to the Southeast by year end.

Senegal is a stable and democratic nation in West Africa that gained its independence from France in 1960. The Company's project is accessible by air or all-weather roads. A network of unpaved roads and trails traverses the concession.

The Sabodala Gold District is part of the fastest growing gold producing region in the world, West Africa. Currently, mine production is growing at a compounded rate of 4% over the past 9 years while global mine supply has declined 1% over the same period. The current annual contribution stands at 5.9 Million ounces and is forecasted to grow by 43% to >8.0 Million ounces. Within 2 years, West Africa may produce more gold than South Africa, second in the world only to China. Senegal, with demonstrated democratic rule for 10 years, makes a strong case for minimizing the discount associated with political risk. Lastly, Senegal has a Favourable Mining Convention, Tax and Royalty terms, plus a minimum 7 year tax free status. So all in all, Oromin did their homework when deciding on setting up shop in Senegal, West Africa.

As of November 2009, the OJVG has discovered 7 gold deposits and 18 gold targets within a 5-8 kilometre wide and 22 km long northeast trending structural corridor. The eastern side of this corridor hosts four of the higher grade gold deposits while the western side of the corridor hosts the three bulk tonnage style gold deposits. In September of 2009, the OJVG announced a constrained mineral resource estimate containing 2.19 million indicated ounces of gold and 357,000 inferred ounces of gold. The mineral resource estimate was based on drilling completed to the end of May 2009. In addition to the classified resources, modeling of the deposits identified significant gold mineralization beneath the conceptual, optimized pits used to constrain the mineral resource estimate.

To overlook such a major project, you need to have a skilled team of professionals and strong management to stand behind the Company, Oromin seems to have just that. Below are some of the past projects that Oromin management have been involved in, and if that's not a good gauge of seasoned management, then we don't know what is.

Oromin Management Involved in Significant Discoveries:

• Hemlo – 30 million oz gold deposit (Canada) via International Corona Resources.
• Eskay Creek – 4 million oz gold & silver deposit (Canada) via Stikine Resources.
• Pierina – 7 million oz gold deposit (Peru) via Arequipa Resources.
• Petaquilla – 1.1 billion tonne copper-gold deposit (Panama) via Adrian Resources.

As if the fundamental aspects for the Company weren't lining up nicely enough for the Company, the technical picture for Oromin is equally promising.

As we mentioned earlier, the stock has been on a down trend since about November 2009, and has just recently changed direction after the announcement of the appointment of Peter Grandich. Since then, the stock has been developing a new trading base around the mid-70 cent range. The most important technical indicator, and one that has been quite accurate for us is the 10 period EMA versus the 50 period EMA. That indicator crossed over into bearish territory back in early December at around $0.92 cents and since then the stock has traded in a downward trend after bottoming out around $0.60 cents. The EMA crossed back into bullish territory roughly two trading days days ago in the mid-70 cent range.

The EMA, or Exponential Moving Average is a type of moving average that is similar to a simple moving average, except that more weight is given to the latest data. This type of moving average reacts faster to recent price changes than a simple moving average. The 12- and 26-day EMAs are the most popular short-term averages, and they are used to create indicators like the moving average convergence divergence (MACD) and the percentage price oscillator (PPO). In general, the 50- and 200-day EMAs are used as signals of long-term trends. However every technical trader uses different EMA periods or days, and we seem to like the reliability behind comparing 10 day EMA's with 50 day EMA's, to find medium term trends, which in Oromin's case, looks like it's pointing to the start of an up trend. Trading with moving averages is quite simple, when the shorter term moving average crosses below the longer term moving average, the trend direction is likely to be downward and vice versa when the shorter term moving average crosses above the longer term moving average.

Looking at support levels for Oromin, we see strong support forming around the $0.70 cent range and then a second support level at around $0.60. We always encourage investors to place stop-losses in case an investment doesn't go the way they want, so depending on risk tolerance, stop losses around the above mentioned levels are encouraged. Also, as we always mention to all our investors, these are only our interpretations of OLE`s stock chart and as always, we encourage all investors to do their own due diligence and consult with a financial advisor prior to making any investment decisions.

Oromin's seasoned management team having just secured Peter Grandich to assist in the Company's PR activities is a great addition. The Company's upcoming and long awaited Full Feasibility Study for their flagship OJVG Gold Project in the Sabodala Gold District of Senegal, West Africa is the news investors are waiting for, and add that with their strong technical indicators and the ongoing meteoric rise of Gold prices, it's easy to see why Oromin Explorations, Ltd. (TSX:OLE) (OTCBB:OLEPF) is a company that should definately be on investors radar screens and why AllPennyStocks.com decided to choose them as our latest Canadian Company Spotlight.

OJVG's 2010 Program & Objectives

• Government of Senegal approved 15 year renewable mining licence and requisite Strategic Environment Evaluation (SEE) Report (02/10)
• Full Feasibility Study, delivered to government at end of Q2, 2010 and subsequent public release in early July will provide road map for fast track development of a stand alone project
• Feasibility Study based on updated resource estimate for seven gold deposits – Golouma West and South, Masato, Kerekounda, Kourouloulou, Niakafiri, Maki Medina deposits and; Kobokoto and Koulouqwinde targets
• Focused on open-pit/underground mine complex, with initial production from the current five advanced deposits (Golouma West and South, Masato, Kerekounda and Kourouloulou) feeding a carbon-in-leach (CIL) mill at 4,400 TPD which can be increased to about 7,000 TPD when processing soft oxide and saprolite ores
• Seven drills currently working on Feasibility engineering and geotechnical drill program and continued resource expansion
• Regional exploration will also continue to evaluate numerous high-potential gold targets

Chet Idziszek - President and Director

In 1990, Mr. Idziszek received the "Mining Man of the Year" award in recognition of his vital role in the discovery and development of the Eskay Creek gold deposit in Canada, as well as the prestigious "Prospector of the Year Award for 1994" in recognition of the major role he played in the discovery and development of the Eskay Creek gold deposit, as well as for his leadership of Adrian Resources Ltd. during its exploration and development of the Petaquilla copper-gold-silver-moly deposits in the Republic of Panama. He also served as director of Arequipa Resources Ltd., which discovered the Pierina gold deposit that was subsequently acquired by Barrick Gold Corp. in mid-1996 for more than $1 billion.

James G. Stewart - Secretary and Corporate Counsel and Director

Mr. Stewart has practiced law in both private practice and as corporate counsel since 1984. He has extensive experience in the fields of mining, corporate and securities law. Mr. Stewart has served as a director of senior officer for a number of publicly traded companies including Prime Equities ltd., Adrian Resources Ltd., Buffalo Gold Ltd. and Madison Minerals Inc.

Ian Brow - CFO

Mr. Brown is an honours graduate in Commerce from the University of Toronto and is a Chartered Accountant. He has spent over 25 years as a financial executive in the mineral exploration industry, working with many large-scale exploration projects in North America, South America, Africa and Southeast Asia.

Douglas S. Turnbull - Director

Mr. Turnbull is a consulting geologist and President of Lakehead Geological Services Inc., a geological consulting company based in Vancouver, Canada. He brings to Oromin, over 20 years experience in diamond, precious and base metal exploration. Mr. Turnbull holds a Honours Bachelor of Science degree in Geology and is a Qualified Professional Geoscientist recognized by the Association of Professional Engineers and Geoscientists of British Columbia. Mr. Turnbull's previous working and consulting experience includes Monopros Ltd., the Ontario Geological Survey, Goldfields Mining Corporation, Prime Exploration Ltd., Adrian Resources Ltd., and Madison Enterprises Corp. Mr. Turnbull has been fortunate to have been part of exploration teams responsible for the exploration and development of the Eskay Creek Gold Deposit in British Columbia, Canada, the Petaquilla Cu-Au Porphyry Deposit in Panama and the Mt. Kare Gold Deposit in Papua New Guinea. Currently Mr. Turnbull currently serves as a director on the boards of Salmon River Resources Ltd., Grizzly Discoveries Inc. and Dagilev Capital Corp.

Derek Bartlett - Director

Mr. Bartlett has over 30 years experience as a geologist, senior manager and vice President-exploration, for two major international mining companies, namely New Jersey Zinc Co. Canada Ltd. and Goldfields Mining Corporation (a division of Consolidated Goldfields Ltd.). Subsequently he has served on the Boards of Directors of several junior exploration companies. He currently serves as a director of Seville Resources Ltd., Kingsmen Resources Ltd., Waseco Resources Ltd. and X-Cal Resources Ltd.

Nell M. Dragovan - Director

Founder of Corona Explorations Ltd. which acquired the lands, carried out the exploration work, and subsequently discovered the Hemlo gold deposits in Northern Ontario. Three gold mines eventually arose from the Hemlo discovery in 1980 for a total annual production of 1,058,000 ounces of gold. The mines are controlled by Teck Corp., Hemlo Gold Mines Ltd. and Homestake Mining and are still in production. Ms. Dragovan is an active participant in corporate financing including venture situations.

Robert Sibthorpe - Director

Mr. Sibthorpe holds a B.Sc. in geology and an M.B.A. from the University of Toronto. He worked as a mining analyst and director of Yorkton Securities Inc. in Vancouver from 1986 to 1996. He was an independent mining consultant from 1996 to 1999 when he joined Canaccord Capital Corporation as a mining analyst from 1999 to 2001. Since 2001 he has worked as an independent mining consultant.

Robert H. Brennan - Director

Mr. Brennan, currently Senior Vice-President at CB Richard Ellis, has been an investment advisor with this Fortune 500 Company since 1987. He has completed investment transactions totaling well over $2 billion in gross consideration during his career. His April 21, 2006 appointment brings considerable additional financial expertise to the Board of Directors.

David Mallo - Vice-President Exploration (Minerals)

Mr. Mallo has over 20 years experience as an exploration geologist. After graduation from Brandon University with a degree in geology, he commenced his career as a geologist with Gold Fields Mining Corporation. Other [previous working experience includes geological positions with Prime Resources Ltd., Adrian Resources Ltd. and Madison Minerals Inc. Mr. Mallo was an integral part of the geological teams responsible for exploration of Eskay Creek gold deposit in British Columbia, Canada, the Petaquilla copper gold porphyry deposit in Panama and the Mt. Kare gold deposit in Papua New Guinea.

Corporate Office:

Oromin Explorations Ltd.
2000 - 1055 W. Hastings Street
Vancouver, BC
Canada V6E 2E9
Tel: 604-331-8772
Fax: 604-331-8773
Toll Free: 1-877-529-8475

Marketing/IR:
David J. Scott
Email: info@oromin.com

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