Ladies and Gentlemen:

I’ve been a big proponent of Golden Phoenix ever since the new management took over some two plus years ago. It seems so much longer than that. Rob Martin, who is a friend, and a very smart, savvy, and intelligent individual, wrote this attached letter to the shareholders. It is comprehensive, concise, and clear.

I’m certain that many investors involved with the Junior Mining Sector have been taking a beating lately; ain’t no two ways about it. GPXM is selling for about $.20 a share. I am personally purchasing more shares to add to my portfolio because I feel, based upon what I know about this company and it’s management, that it will eventually bounce back; and bounce back in a big way. These are “gimme” prices and I’m like a kid in a candy store. I can’t help but believe that this is the kind of company that will build fortunes for individuals clairvoyant in the ways of investing in the junior mining metals companies of today. My opinion is that large share positions will bring extraordinarily large rewards and these prices allow me to build a large share position. We all need to evaluate our own financial situation and of course realize that any investing in today’s markets is a risk unto itself. Always do your own due diligence.

Another one of the primary reasons I’m posting this letter is because I would like for you to extrapolate certain general themes of information that Rob is presenting and apply them to your own favorite companies and the market in general. You see, Rob is excellent at just about everything he does and that would include thinking, creating, and writing. When we get together for our weekly chats, I need a tape recorder running to pick up his ideas and his phrasing. He and David Cauldwell, along with the rest of the team they’ve assembled, are going to do extremely well.

Yes, yes, I know we all need money now and who has time to wait when the mortgage is due. But it may take another three or four months or several years. GPXM is building a company, not a stock play. Please remember that with any of these quality juniors that I bring to your attention.

A stock play is here and gone and any value is ephemeral in nature. Better be very quick or you’ll miss the one or two selling opportunities. A quality company on the other hand keeps building value over time; and while there may be cycles with which to wrestle, the trend is always up if it is managed properly. Why? Because a company that is struggling to build value over time is one that has the best interests of its shareholders at heart. I could not personally emphasize that more! Because of this scenario, there will be time for reaping just as now is the time to be sowing.

In my opinion, today, there are opportunities galore in the Junior Mining Sector. Investors have a second chance here. I personally don’t plan on squandering the opportunity.

And now, here are the comments of Golden Phoenix’s President Robert Martin which I have found to be honest, straight-forward, not “sugar coated” in any way. It’s exactly what I’d expect from the President of a company which is endeavoring to build real value over time.

GOLDEN PHOENIX MINERALS ISSUES PRESIDENT’S LETTER TO SHAREHOLDERS

SPARKS, NV, April 11, 2008 -Golden Phoenix Minerals, Inc. (OTC Bulletin Board: GPXM -News) today issued the following letter to shareholders, posting it on its website: http:www.golden-phoenix.com. It follows in its entirety.

Dear Fellow Shareholders:

We are often asked about the growing dichotomy between the Company’s rising success, truly a monumental accomplishment, and its falling share price. I am doubly aware of this: I left the ranks of outside shareholders to join the fight to restore, rebuild and revitalize Golden Phoenix and I am a shareholder.

Our share price is especially disappointing considering our accomplishments over the last 40 months. Your Company has:

• Retired the majority of the Company’s debt

• Concluded its five pending lawsuits with significantly favorable settlements

Permitted, built and put into operation the Ashdown mine, which generated more

than $10 million in sales from molybdenum in 2007.

• Expanded all affiliated operations from 6 employees to 75

• Upgraded all accounting and audit functions to meet the increasingly stringent

• Sarbanes-Oxley requirements

• Created a Technical Services Group

• Launched a state-of-art exploration and drilling division.

We are taking the steps necessary to reverse the trend and bring the value of the shares in line with the value of the Company. A list of possible reasons for the decrease in the share price and, more importantly, what we are doing to reverse this, follows: read more

Conclusion

Let’s begin with what I feel is most important. This article is really about debt and how it is affecting every facet of American life. There are times when debt is acceptable but it is never acceptable to carry too much because suddenly we discover we are on the defensive instead of the offensive; and this affects every aspect of our existence; individually to nationally. Put another way, too much debt traps you. Currently, on an individual, local, state and federal level we have debt that exceeds $50 trillion. Some would argue that the federal government alone has a debt load of over $50 trillion. That’s a lot of money any way you cut it!

There is also a form of debt called derivatives. Derivatives are insidious vehicles with counter party risk that exceed $500 trillion. That’s correct, $50 trillion in debt plus $500 trillion in derivatives which even the professionals cannot get a handle on. The derivatives fiasco is absolutely a black hole. We’ll just forget about the $500 trillion in derivatives for now. But lest we forget, banks, hedge funds, and other financial institutions are tied to these derivatives; if not drowning in them. Erudite investors like Jim Sinclair and Warren Buffett have described them as garbage.

I certainly don’t believe that neither this generation nor any subsequent generation will be able to repay some $50 trillion of debt. If the derivative instruments begin to fall like a stack of dominos, nothing on God’s Green Earth is going to save us. Most people don’t even understand what they are? In essence, they are “futures contracts” on steroids and they are totally out of control. We can talk about nominal values and mark to market mechanisms but there is no reason to understand the mechanics–just the fact that they exist and are a huge threat to our global financial system. Consider if you will, that the official number released by the US government, states that our national debt is somewhere around the $10 trillion mark. However, when one considers the off budget items, the compounding interest on the existing debt, the debt for the Iraq war, and all of the other unfunded liabilities, we end up with a figure far in excess of $10 trillion. Remember that old expression, “it’s the economy stupid”? Well, now the new saying should be, “it’s the debt stupid!”

Common sense dictates that these levels of debt will ultimately do us in. The government cannot create dollars forever without eventually suffering negative consequences. As a result of these enormous levels of debt and the insane ways that the government has tried to address the unwinding of generations of mismanagement, there are only one or two vehicles which will safeguard your assets. They are gold and silver, and perhaps the house or the property in which you reside provided you have a manageable mortgage or own it outright. If you truly want to be safe, consider owning the physical metals. Of course, most of us don’t have the means to go out and purchase a few 4.5 kilo gold bars; but there are one ounce gold coins and even smaller denominations. I don’t believe in owning exchange traded funds (or ETFs) because they are too ripe and too big a temptation for the politicos to “borrow”.

I’d rather own a quality junior mining company that is well managed. I view them as long term options on gold without the time decay. And hence , we have the conclusion of this article.

Introduction/Preface

My real job is to point out / suggest, some exceptional junior mining opportunities invariably related to the precious metals complex. To that end, I am going to suggest Oromin Explorations (OLE.CA or OLEPF.OTC), Golden Phoenix Minerals (GPXM.OTC) , Geocom Resources (GOCM.OTC) , Newport Gold (NWPG.OTC), Lund Gold (LGD.CA), Madison Minerals (MMRSF.OTC), Journey Resources (JNY.CA), and Buffalo Gold (BYBUF). These are but a few of the many quality juniors which are now available for giveaway prices. They have been beaten down for any number of different reasons.I have my own ideas for suggesting the above companies, not the least of which is the fact that I speak with the management of these companies on a very regular basis. I feel I have good working relationships with all of them and that puts me at an advantage. I am able to pick up on facts, programs, relationships, developments, and directives that are available to each and every one of us.

However, the opportunity of speaking with these people on a regular basis helps me to zero in on the company and its objectives along with the particular focus the management is endeavoring to emphasize. More often than not, relationships with people are what give you the edge.

I’ll give you one example. Golden Phoenix Minerals is now selling at around $.17 a share. I would like you to go back and review my past articles on this company. Nothing but nothing has changed. Well, that’s not really true. What I should say is that nothing on the negative side has changed and there have been many positive developments. If I didn’t talk with Rob Martin, the President, on a regular basis, and if I didn’t have the long term relationship I have with him, I’d be concerned. But I do and I don’t.

The market is punishing these juniors for several reasons not the least of which is that many assume that every company has a liquidity crisis. Such is not the case.

Another company which I have been recommending for a very long time is Oromin Explorations. Given what I know about the company and its management, and given the fact that it’s selling for about $2.70 per share, it is my opinion that it is a “steal”. I know one of the principals of the company who is a stickler for proper protocol. I would have to use truth serum or some such method to acquire any information not contained in a press release. But I know the man, and I trust him.

It gives me the confidence I need to keep getting the story and the idea out to you. Simply go to the website and review the recent press releases on these companies. Yes, “Juniors” are high risk-high reward, but quite honestly anything having to do with gold and silver in the months and years to come is going to be an excellent opportunity for financial advancement if the company is well managed. The most difficult part of investing in any of these juniors is the patience required.

However, when you amortize the possible increases or appreciation of these companies you will find that they stack up quite nicely against some of the major components of the Dow and the S&P. Part of the problem today is that people are pulling in their horns; adopting defensive measures, and feeling that they don’t want to take risks. I don’t really believe there are any more risks in some of these juniors –dollar for dollar– as there are in some of the major companies. All you need to do is look at Bear Stearns and the fiasco that emanated from that particular situation to understand what I’m saying. But the financial community, (read Wall Street) sometimes makes sacrifices at the altar and they sometimes eat their young. Bear Stearns is indeed part of that process whereby a smaller company was sacrificed at the altar of greed in order to protect a larger brother–whether they liked it or not. Of course the real losers were the shareholders but who gives a darn about them?

In today’s world, it is difficult to find a level playing field in the financial arena. All of the rules and regulations from the SEC are to protect the larger interests and not the “small fry”. To that extent, I believe we’ve been inundated with so much negative financial news that most of us simply do not know where to turn. After all, most of us are not economists and when you throw all of that sophisticated financial data at an unsophisticated investor, you are left with “puzzles of the mind”. Good title for a movie, don’t you think? Speaking of minds, some of the very best are grappling with all of these issues being thrown at a disillusioned public. I’m going to list a few of them down below. But for now I want you to focus on three things: Debt, the Precious Metals, and the relationship between the two. For now,” it’s the debt, stupid!” That particular statement is meant for Mr. Green scam” and Mr. “Helicopter Ben”. read more