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THE CONTRARIAN

BUY ALERT: European American Resources, Inc.
Symbol (EPAR-OTCBB)
Recent Price - $.66
52 Week Range - $.53 - $1.68
Estimated Float - 5.9 Million Shares
Outstanding - 16.2 Million Shares

With oil prices having tripled since December 1998, we should now look for
investments that benefit from higher inflation. Traditionally, gold-mining stocks
are outstanding performers during these time periods, as people look to hedge
their portfolios to profit from rising commodity prices. We now present a company
that will not only make money from higher gold prices, but is a legitimate takeover
candidate as well.

European American Resources (EPAR) has been developing gold properties
in Nevada for many years. Their largest holding is located in the prolific Battle
Mountain Trend, right between two properties operated by Homestake Mining
(HM-NYSE-7 3/8), the oldest trading company on the NYSE (130 years).

Homestake's cheapest gold mine in the world is Ruby Hill - right next to EPAR'S
Prospect Mountain - with production costs of only $94/ounce in 1999.  Since 1864,
Prospect Mountain has already produced 3 million ounces of gold, with only 3% of
the volume of the mountain mined so far. No wonder that they recently signed a
joint venture agreement with EPAR, which calls for HM to pay for exploration costs
that have already started.

Why do we think that EPAR is a takeover candidate? Simply because HM has
bought out 3 of their last 5 joint venture partners in the last three years, at high prices.
More importantly, Nevada is commonly known as the lowest cost place in the world to
mine gold, so even if bullion remains stuck at the $300 level, the EPAR property will
still be very profitable, since estimated costs to mine are under $100/ounce. However,
if gold drops to $150, most competing mines will close, and we'll also benefit.

Our recommendation is to buy EPAR at prices up to $2, with a longer-term target
price of $5-6. Since drilling is expected to start in a few weeks, expect results in the
very near future.

To SUBSCRIBE to future announcements or request ADDTIONAL INFORMATION 
regarding the European American Resources, Inc, please click on the appropriate link below 
and hit send.

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mailto:more-details@21cn.com?subject=SUBSCRIBE
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DISCLAIMER:
The Contrarian has received a fee of shares of European American Resources, Inc.
common stock for the writing and distribution of this report. The Contrarian and/or
its affiliates currently own shares of EPAR, and may buy or sell shares at any
time after the dissemination of this report.  Because the publisher owns this stock,
there may be a conflict of interest in The Contrarian's statements and opinions. The
Contrarian is not a registered investment advisor, broker or dealer.  Purchase of this
stock may be considered speculative, and may result in the loss of some or all of
any investment made.

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THE CONTRARIAN

BUY ALERT: European American Resources, Inc.
Symbol (EPAR-OTCBB)
Recent Price - $.66
52 Week Range - $.53 - $1.68









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