Minefinders Corporation Ltd

Beacon Rock Research, LLC 1 June 28, 2010

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BEACON ROCK RESEARCH

www.beaconrockresearch.com 5956 N.W. 213th, Portland, Oregon 97229 Disclosures 1,2,3,4

*Video best viewed in Microsoft Internet Explorer with “Full Screen” (MAC users may download http://www.silverlight.net). Mike Niehuser, 503-307-3188, [email protected]

Minefinders a Near-, Mid- and Long-Term Opportunity

Minefinders Corporation Ltd. (NYSE AMEX: MFN, TSX: MFL) commenced commercial production at its Dolores gold-silver mine near Chihuahua, Mexico in May of 2009. At that time, the mine was forecast to produce over 1.7 million ounces of gold and 64.4 million ounces of silver from heap-leach operations over a 15.5 year mine life. Minefinders produced 77,264 and 1,318,245 ounces of gold and silver in 2009, respectively, and reported its first profitable quarter in the fourth quarter of 2009. The Company ended 2009 with no outstanding debt on its credit facility with $50 million available for drawdown. At this time, Minefinders’ management considers that proceeds from the sale of gold and silver, working capital with cash on hand, and revolving credit facilities are sufficient to meet current and projected cash requirements.

JUNE 28, 2010

SPECIAL VIDEO REPORT*

Figure 1—Dolores Mine Crushers, High Angle Conveyor to Leach Pad (center right) Source: Analyst

Minefinders Corporation Ltd.

(NYSE Amex: MFN, US$9.29 | TSX: MFL, C$9.60)

Analyst Project Videos* Video Clip 1 - Dolores Analyst Day www.beaconrockresearch.com/MFN.dolores.3.2010.htm Video Clip 2 - La Bolsa Analyst Trip www.beaconrockresearch.com/MFN.labolsa.htm

Minefinders sold 19,684 and 260,668 ounces of gold and silver in the first quarter of 2010, respectively. At the end of 2009, Minefinders offered guidance for production of 16,000 to 18,000 and 280,000 to 315,000 ounces of gold and silver production for the first quarter of 2010, respec-tively. The production of gold for the first quarter exceeded the top end of the range for gold production, more than off-setting silver production on a gold equivalent ounce basis, allowing the Company to meet guidance within the range of gold and silver production for the first quarter of 2010.

Minefinders realized an average price of $1,118 and $16.88 per ounce of gold and silver, respectively, as their produc-tion is fully unhedged. Cash operating cost of production on a gold equivalent basis was $609 per ounce in the first quarter of 2010, compared to an average of $550 per ounce in 2009. Minefinders reported a net loss of $300,000, or ($0.00) per share, but positive operating cash flow before changes in working capital of $6.6 million in the first quar-ter, ending the quarter with $26.8 million in cash and cash equivalents and net working capital of $50.9 million.

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_______________________________________________________________________________________________________________________________________________________________________________ This Information is obtained for sources believed to be reliable, but its accuracy and completeness are not guaranteed. Copying, faxing, replicating, or quoting from this report without permission is in direct violation of copyright laws. Beacon Rock Research employees and affiliates may have positions and effect transactions in the securities or options of the issuers reported herein. Please refer to the company index in the back of this issue for additional disclosures.

Development of the Dolores Mine

Subsequent to the end of the first quarter, Minefinders received a draft study supporting the addition of a mill to the current heap leach operation. Earlier in the development of the Dolores project, a mill was considered in combination with current heap leach operation. Management decided to minimize shareholder dilution by initiating production of lower grade areas in a low-cost open-pit heap leach scenario. Both gold and silver are currently being recovered. Leaching and processing are through a Merrill Crowe plant, and they are producing dore´ bars. Minefinders is now in the position of considering the op-tion of a 3,000 tpd mill financed internally without shareholder dilution with cash flow, cash on hand, and funds available under its credit line.

A new mill to process gold-silver ore would greatly benefit the Dolores project. The mill would immediately increase the rate of recovery for both gold and silver. This is important as the operation moves into higher grades of ore to avoid the op-portunity cost of what otherwise would not have been recovered. This is particularly important with silver for increasing both recovery rates and the speed in which it is recovered. In addition, processing the ore through the mill allows for dispo-sition of tailings in other areas, as opposed to taking up limited space on the leach pad. Lastly, the ability to process by the current heap leach provides some diversification in the means of production. Delaying the decision to construct the mill un-til commercial production from the heap leach operation improved financial flexibility as new options are now being consid-ered.

Figure 2—Dolores Resource Crossection (indication of additional resource outside model) Source: Minefinders

The current gold-silver reserve estimate for the Dolores mine was a function of available leach pad area for leach-ing ore and pit size limits as much as economic considera-tions. As mining approaches the bottom of the north end of the mine, the edge of the pit will stop short of higher grades of gold and silver, which may be readily accessed with new underground mine development. As constrained by the pit outline, mining stopped short of gold and silver mineralization at the bottom, or adjacent and parallel to the proposed pit. In addition, as grades appeared to improve at depth, the mineralized zones outside of the pit outline re-mained untapped upside. Presently, the Company has identified higher grade gold mineralization parallel to the proposed pit over 875 meter strike length and in the East Dike of over 350 meters. The Company has noted higher grades within 20 to 200 meters of the pit wall. Minefind-ers has budgeted $2.9 million to complete an 18,000 meter drill program in 2010 to expand reserves at Dolores. These results should lead to an appropriately sized mill operation, in addition to the current heap leach operation, increasing the reserve estimate of Dolores mine, improving the economics, and extending mine life.


_______________________________________________________________________________________________________________________________________________________________________________ This Information is obtained for sources believed to be reliable, but its accuracy and completeness are not guaranteed. Copying, faxing, replicating, or quoting from this report without permission is in direct violation of copyright laws.

La Bolsa Nears Completion of Pre-Feasibility Study

Minefinders is working to complete a pre-feasibility study on the La Bolsa project in the near future. The La Bolsa project is located on the south side of the Ari-zona/Mexico border, about 35 kilometers west of No-gales, Mexico. The Measured and Indicated resource estimate for La Bolsa includes 360,000 ounces of gold and 4.8 million ounces plus of silver and Inferred re-source of 47,000 ounces of gold and 480,000 ounces of silver. The gold-silver mineralization is contained in an oxidized blanket that is shallow and sub parallel to the gently sloping hillside. The mineralization is in a tabular body of about 900 meters in length and 365 meters in width and 10 to 50 meters thick. As the re-source is open at depth, Minefinders pursued the miner-alization deeper with drilling that should be incorpo-rated into an updated resource estimate, leading to a larger resource with a lower strip ratio and a more ro-bust economic model. The gold will be recovered by a heap-leach process and so it is not expected that the silver will contribute to the economics of the project. It is anticipated that the La Bolsa mine will be a short lived but profitable gold mine.

The La Virginia district was generated from Minefind-ers’ 2007 helicopter reconnaissance program by locat-ing, working, and completing more than 400 samples. The 100% owned La Virginia district has never been drilled. It is located about 100 kilometers to the north-west of the Dolores mine. The staked/leased area is roughly 20 kilometers in length and 12 kilometers in width, including over 32,000 hectares. The district includes six prospective mineralized target zones in-cluding the La Virginia, La Colonia, El Rubi, Los Ca-ballos, Agua Mala and El Pinito.

The La Virginia district has the characteristic northwest trending veins and structures similar to the Dolores mine containing gold-silver mineralization within steeply-dipping stockworks and vein zones. These areas include sporadic mined shallow pits and short adits, and exploration included taking dump samples and chip-channel samples from workings. Minefind-ers’ management believes that sample results suggest a stockwork/vein system containing high grades of gold and silver over more than a kilometer of strikelength. The Company has commenced a 6,000 meter core drill program of prospective areas in previous workings within the district.

Figure 3—Brian Metzenheim Examining Drill Core at La Bolsa Source: Analyst

La Virginia Gold-Silver District a Dolores “Look Alike”

Figure 4—La Virginia Exploration Source: Minefinders



Conclusion: Minefinders Good Potential for Increasing Fundamentals

Minefinders has excellent exposure for improving fundamentals in the near-term, mid-term, and long-term. While gold and silver production was within the range of guidance, management anticipate improving production due to more consistent processing at a rate of 18,000 tpd, mining of higher grades of gold and silver in the heart of the deposit, and optimizing the leach process increasing recoveries. As the Company’s production is unhedged, Minefinders should benefit from current record metal prices and is exposed to potential for further increases. 2010 should be a very solid year at the Dolores mine.

We anticipate that the combination of exploration drilling and configuring a new mill has very good potential to lead to an improved market perception of the Dolores mine. As the potential to increase the resource beyond the proposed pit outline is likely with a new mill, we strongly believe that construction of a mill should lead to a lower risk expansion scenario, more robust economics, and a longer mine life. In addition, we also believe that the study at La Bolsa should lead to a positive mine decision for a low-cost profitable heap leach mine. The combination of a new mill at Dolores and a mine operation at La Bolsa, in addition to the current heap leach operation at the Dolores mine, should lead to a significant increase in Mine-finders production profile in the mid-term.

In the long-term the La Virginia may provide a grassroots expansion of Minefinders’ fundamentals. While it is too early for the market to recognize value in addition to the potential increases in fundamental value in the near- and mid-term, as the Company is now well funded and staffed to develop a mine, the potential for La Virginia to positively surprise investors is good. As Minefinders achieves its near- and mid-term objectives, investors may become much more interested in La Vir-ginia and other projects in its pipeline to maintain its growth profile.

Figure 5—Analyst at North End of Open Pit Minefinders Dolores Mine, Chihuahua, Mexico Source: Analyst



DISCLOSURES: Beacon Rock Research, LLC provides information and analysis on selected companies, with a focus on small-cap and micro-cap companies. This report has been written in accordance with current SEC regulations and the Standards of Practice developed by the Chartered Financial Analyst Institute (CFAI). Our research has been conducted by employing analytical practices generally accepted as standard within the analytical industry. In this instance, a comparison of financial strength, a bottom-up earnings projection based on a recovery in the U.S. economy, and relative multiples, were employed. Target prices are calculated on comparative EPS, sales and book value multiples, and our knowledge of small-cap markets when enjoying both a sector and a cyclical rebound. Our conclusions are, by the very nature of forecasting, speculative, but are also reasonable, supportable and consistent. Key to disclosures:

1. The research analyst or a member of the research analyst’s household has a financial interest in the securities of the Subject Com-pany in the form of a long position.

2. The Subject Company is paying an annual fee totaling $25,000 to SLB Equity Research, LLC., one of its affiliates, for research cover-age, institutional introductions, and other awareness building services.

3. The research analyst principally responsible for preparing this research report received compensation based upon various factors, in-cluding SLB Equity Research, LLC total revenue.

4. This report was prepared exclusively for the benefit of institutional investors and may or may not receive compensation directly or in soft dollar arrangements.

The analyst, Mike Niehuser, hereby certifies that the research conclusions and recommendation contained herein accurately reflects his personal views about the industry, company and shares and also hereby certifies that no part of his research compensation was or will be directly or indirectly related to the earnings esti-mates, target price or recommendation about the security. The research provided herein should not be considered a complete analysis of every material fact regarding the companies, industries or securities named above. The opinions expressed herein reflect the analysis and judgment of the author on the date of publication and are subject to change without notice. Facts have been obtained from sources considered reliable but should not be construed as complete and are not guaranteed to be accurate. Beacon Rock Research, LLC; its mem-bers; employees and their families may have positions in the securities covered within the research material above and may make purchases or sales while this report is in circulation. Additional information on the subject companies is available upon request.

EQUITY RECOMMENDATION SYSTEM: Strong Buy Immediate purchase is recommended. The security is expected to outperform the market over the next six to 12 months. Buy Immediate purchase is recommended. The security is expected to outperform the market over the next 12 to 18 months. Hold Holding the stock is recommended because the share price’s appreciation potential is less than or equal to the market. Sell The stock has reached the target price objective and/or conditions have changed sufficiently to alter the outlook for the stock.

EQUITY RISK SYSTEM: High The security is more volatile than the market and/or the company is more leveraged than its peer group. Moderate The security has about the same volatility as the market and/or the company carries a level of leverage in line with its peer group. Low The security is less volatile than the market and/or the company is less leveraged than its peer group.

DISTRIBUTION OF RECOMMENDATIONS:

At this time, there are an insufficient number of companies under coverage to generate usable distribution information or draw any conclusions regarding bias about the research methodology. Prospective companies are screened and evaluated by sales personal and research analysts with the investment thesis and overall research recommendation developed before the commission is established.

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Minefinders Corporation Ltd