P. ZIHLMANN INVESTMENT • MANAGEMENT AG Your independent Swiss asset manager THE TIMELESS PRECIOUS METAL FUNDTHE TIMELESS ENERGY FUNDTHE SIERRA MADRE GOLD & SILVER VENTURE CAPITAL FUND PEDIMENT EXPLORATION LTD (TSXV:PEZ): NEW RECOMMENDATION / October 8, 2008 Home page of PEZChart 3 years PEDIMENT EXPLORATION LTD: RETURN ON CAD 10,000 INVESTMENTPurchase Date No. of Shares Purchase Price Cost (CAD) Price Today Value TodaySeptember 15, 2008 10'000 1.00 10'000.00 Total 10'000 1.00 10'000.00 1.05 10500.00Profit 500.00 Profit (in %) 5%

SHARES OUTSTANDING / FULLY DILUTED MARKET CAP40,857,069 / 53,074,167 CAD 53.8 Million 52 WEEK LOW / HIGH TSXVCAD 0.79 to 3.74 156,100 (200-day) RECOMMENDATION RISK RATINGBUY HIGH AN EMERGING GOLD PRODUCER WITH A RESOURCE OF MORE THAN 2.2 MILLION OUNCES

F GOLD IN MEXICO O Business Summary Pediment Exploration, through wholly-owned subsidiary Minera Pitalla S.A. de C.V., has acquired nine separate projects in northwest Mexico targeting gold, silver and copper. Property investigation and acquisition is still ongoing. Significantly, Pediment holds all its projects 100% and there are no underlying option payments, work commitments or royalties. Although Mexico has one of the world's richest mineral endowments, it was largely ignored by international mining companies until the 1990's due to restrictions on foreign ownership. Mexico updated its mining codes in the early and mid 1990's, eventually allowing for 100% ownership of mineral concessions by foreign companies. This led to a massive staking rush and growth in exploration expenditures. Though this exploration was successful in finding a number of new mines the "blanket staking" shut out many potential investors who were not in on the early rush. This changed in the late 1990's and early this decade as low commodity prices led major producers to scale back exploration everywhere and relinquish all but the most advanced projects. This created opportunities for companies that had been accumulating regional information, applying criteria from

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the most current geological models and generating new target areas. Past exploration efforts in Mexico centered on sampling small past mineral producers during times of elevated commodity prices. Exploration of new areas of interest was limited without the use of modern geophysical and geochemical methods. Pediment considers the current situation in northwest Mexico to be similar to the now famous and prolific Carlin trend in Nevada some thirty years ago. Nevada's major gold trends were overlooked due to limited surface rock exposure. Application of modern exploration techniques in Nevada and testing of subsurface "blind" targets helped change the State from an area of minor gold production to the home of a number of the world's richest and most profitable gold mines. Pediment has focused on acquiring projects in areas containing known mineralization, with nearby pediment covered areas overlying geology and structures that are permissive to hosting large gold, silver or copper deposits. The discovery of a gold deposit by Penoles and Newmont named La Heradura within the Mega Shear trend of Northern Sonora has confirmed the presence of Carlin Style gold deposits in the belt. Pediment has acquired 100% of four projects within the Mega Shear belt with historic results that provide strong evidence for the presence of larger mineral systems. The Company also has projects in other parts of the Sonora area focusing on Copper, Gold and Silver. There is strong evidence that this ground may also cover porphyry type targets as well as additional conventional targets. The company plans to work throughout the year identifying and testing strong drill targets with deposit making potential. Pediment is applying the latest techniques to seek blind deposits and extend known mineralization to depth and laterally under pediment cover in promising areas that have seen no modern exploration. Pediment's concessions are generating superior drill targets in areas that have never been explored below surface and have the potential for multiple "blue sky" discoveries. The corporate goal is to have multiple projects advancing with new targets constantly in the pipeline to ensure Pediment's investors always have a multiple chances for success. Projects Overview

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La Colorada gold-silver mine Project Description The past producing La Colorada gold-silver mine property is located approximately 40 km southeast of Hermosillo, Sonora State, Mexico. La Colorada originally operated as a high-grade underground mine, which closed at the start of the Mexican Revolution in 1914. During the period 1993-2000 Eldorado Gold Corp developed a bulk tonnage heap leach operation from several open pits; although the operation was sold in late 2000, production continued by a private Mexican owner until April 2002. La Colorada was until recently Sonora's largest historic gold producer. Currently the La Herradura mine is Sonora's largest producing gold mine. During the main historic mining period from 1876-1914 the production of more than 3 million ounces of gold was recorded. In I990 the Mexican Geological Service (SGM) measured 1.5 million tons of tailings that were utilized at the start of the open pit production by Eldorado in 1993. The last formal resource estimates for the open pit project were done by Eldorado in 2000. Eldorado published estimated bulk tonnage open pit reserves of 4,115,200 tonnes averaging 1.18 g/t gold (155,900 ounces) within an open pit resources of 21,534,300 tonnes at 0.87 g/t gold (599,300 ounces, total). Production records provided by the current owner show 3,617,340 tonnes of about 0.9 g/t gold were mined following that estimate. In early 1998 Eldorado reported an intersection of 9.4 metres of 31.27 g/t gold which included 3 metres of 80.14 g/t gold. (These estimates are not compliant with NI 43-101 and should not be relied upon, and are reproduced as historic reporting only. Pediment has not independently verified these estimates.)

Geological Background The La Colorada gold vein deposits are hosted in a volcano-sedimentary sequence that has been locally altered to skarn by magma intrusions. Veins are focused along east-west and northeast-southwest trending structures that dip to the north and northwest at moderate angles, and cut across the skarn and intrusions. Surface mining was focused along three structures, the upper parts of which flare out into stockwork zones. Eight different structures in the La Colorada mine area appear to have older underground workings in gold bearing quartz veins. Past reports indicated the gold deposits formed under mesothermal or deep epithermal conditions, and implied a genetic relationship to the

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Cretaceous aged magma intrusions that created the skarn. Recent fluid-inclusion studies on veins indicate a low-temperature regime in the epithermal range, and radiometric age determinations indicate ages younger then those for the Cretaceous period of magma intrusion. In addition to this, recent investigations indicate some veins cut Miocene aged volcanic rocks, which suggests the vein forming period at La Colorada is as young as the veins of the Sierra Madre Occidental gold-silver belt located to the east of La Colorada.

Exploration & Development Pediment has acquired nine mineral concession with a total of 1070 hectares centered within the project. Some of the concessions cover part of the El Creston pit and adjacent ground. The Company has also completed a RC drill program consisting of 4,320 metres. The results will be reported on when all the data has been received and compiled. In addition, during the past ten months, Pediment has recompiled data archives and pertinent production data into electronic databases with all available information merged with newly generated data. Data pertaining to both open pit potential and high grade underground resource potential are also being reviewed. Studies are ongoing to assess the environmental impact permitting and the reactivation potential of existing surface workings.

The San Antonio project

The San Antonio project is located on the Baja Peninsula, adjacent to the historic mining town of San Antonio and 40 km southeast from the port city of La Paz. Good gravel roads traverse most of the project area and a high voltage power line crosses through it. The 100%-owned project covers 48,715 ha and 14 km (about 9 miles) of favorable geological trend. In the late 1990s Echo Bay Minerals located and partly tested the Colinas gold resource that is contained by the company's staked ground. District Background There has been mining from two separate deposits types in the region. Vein mining of silver-base metals deposits has taken place along a northeast-southwest trend, and more limited load gold mining along a separate and younger north-south trend. The northerly extensions of these two mineralized trends are projected to intersect in a flat lying, pediment covered area within the company's holdings. This setting is a prime target for discovery of new deposits

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The company's primary exploration model is focused on locating bulk tonnage grade gold deposits that could be mined by open pit. During the late 1990s work by Echo Bay outlined the Paradones Amarillo deposit (owned by a third party) on the southern end of the known trend that has measured and indicated resources of 55 million tonnes grading 1.1 grams per tonne gold, and the Colinas deposit on the northern end of the known trend. These deposits are analogous to the gold mines of the Mojave-Sonora Megashear that include the 5 million ounce deposits at Mesquite in California and at La Herradura in northwest Sonora. The "Megashear" and BCS models contain gold deposited in shallowly dipping thrust faults that have enhanced grades and thickness at flexures (bends) in the systems and where they are accompanied by high angle structures that likely acted as conduits for hydrothermal fluids that carried the gold into the deposit traps. The deposits generally have subtle and restricted alteration envelopes. Gold is associated with sulphide minerals that typically represent a minor portion of a deposit volume. Because of a highly fractured character and oxidation of the of the sulphide minerals near surface, the

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deposits tend to "weather down" and be hidden beneath overburden. San Antonio Project The San Antonio project contains Mesozoic aged quartz-diorite and gabbro bodies intruding older metamorphic rocks. The Mesozoic intrusives include "peraluminous" bodies that are typically associated with gold bearing fluids generation. Low angle fault complexes, that may include zones of cataclasite and mylonite, are a locus for gold deposition. Las Colinas Deposit This deposit located is located in Pediment's Cirio concession. It was outlined by Echo Bay (now Kinross Gold) in 1996-97 during a 31-hole reverse circulation drill program in this area. Using data from 16 drill holes and five trenches Echo Bay reported an estimate of 10.6 million tonnes @ 1.02 g/t gold (roughly 340,000 ounces). The estimate was compiled before and is not compliant with 43-101 reporting standards, is presented only as a historical reference, and should not be relied on. Drill testing by Pediment has confirmed its location. The Colinas mineralization is hosted by within shallow lying fault zones containing disseminated and veinlet sulphide minerals. The deposit can reach 20-40 meters in thickness and is concentrated where high angle faults have cut the lower angle fault zones. In addition to outlining the Colinas deposit, drill testing by Echo Bay intersected three significant drill intersections within a broad pattern of testing in an area north of Colinas. Historic reverse circulation drill results from this northern area included 16.5 metres @ 2.02 g/t gold, 15 metres @ 1.32 g/t gold, and 4.5 metres of 3.3 g/t gold (see map) in three of five holes testing a 400 x 200 metre area. NI 43-101 Inferred Mineral Resource This study was completed by the firm of Derry, Michener, Booth & Wahl Consultants Ltd. A 0.4 g/t cut-off grade has been used to estimate an Inferred Mineral Resource for the Los Planes deposit of 30.58 million tonnes at an average grade of 1.32 g/t Au, for 1.30 million contained gold ounces. Exploration Pediment has completed the first phase of drilling with nearly 37,000 metres drilled. The complete results for its phase-one drilling program demonstrate the presence of two large gold mineralized resources, and the latest results open the potential for a connection between the Los Planes and Las Colinas zones, where more drill targets will be tested in a second phase drill program. Pediment has also acquired the El Triunfo Mineral Reserve. The concessions have more than an eight kilometer long common border with the existing Pediment ground, and they cover a continuous seven kilometer long series of historic mines that were operating in the late 1800 -1910 period as high-grade gold and silver vein mines. In order to further advance the project Pediment has engaged the services of Reyna Mining & Engineering. Reyna's expertise involves mining development from design to operation, and also closure. Pediment is working with Reyna to conduct an evaluation of the project to advance it to production. Reyna will carry out an evaluation of the necessary engineering work, as well as obtain the required surface, environmental and government permits. Recent News: Pediment Acquires Properties; Reports on First Phase Work at La Colorada Pediment Exploration Ltd. announced that it has concluded two transactions in order to purchase nine mineral concessions centered within its existing La Colorada Gold project.

The La Colorada project is a recently past producing heap-leach open pit gold mine which is located approximately 40 km southeast of Hermosillo. These transactions complete the companies plan to consolidate the mining district.

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In the first transaction, Pediment purchased six mineral concessions from the Penoles group for a total consideration of approximately US$100,000. These concessions contain 218 hectares and cover part of the El Creston pit and adjacent ground, as well as additional exploration potential west of the pit. As part of this transaction, Pediment sold to Penoles, three of its concessions totaling approximately 1521 hectares that make up the southern portion of its Texson exploration project in western Sonora for a total consideration of US$2,000. In the second transaction, Pediment obtained from a third party, an option to acquire three additional mineral concessions totaling 852 hectares for a total price of $790,000. The three additional concessions cover part of the Creston pit and possible vein extension. Report on recent exploration activities on La Colorada Due to competition in the area, Pediment determined that first phase work would progress on a confidential basis while negotiating to complete the above acquisitions. The results of the drilling program, which consisted of 4,320 metres of RC drilling, has recently been completed and will be reported on when the results are received and compiled. Data Review and Potential for La Colorada In addition, during the past ten months, Pediment has recompiled data archives and pertinent production data into electronic databases with all available information merged with newly generated data. Data relevant to both open pit potential and high grade underground resources are being reviewed. Pediment is currently undertaking on-going studies of the environmental impact permitting and reactivation potential of existing surface workings. Pediment is also preparing the La Colorada project for a second and more extensive program of work. Details of this program are being finalized and will be announced. Fundamental Considerations

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Pediment Exploration is an undervalued company in many respects, as so many others, but with 40 cents in cash per issued and outstanding share of $ 1, there is enough cash to move forward. 2.2 million ounces of gold have a market value of $ 35 per share. The near term production possibility, if the possibility turns into reality, and the company strives to achieve to, would add significant market value. Technical Considerations

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A GAFFE

HOLDING NICELY ABOVE THE MOVING AVERAGE!

SILVER MAY SNAP BACK SHARPLY AND FOLLOWING GOLD!

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October 22, 2007: a Colorada, Gold-Silver Deposits Being Acquired For High-Grade Testing

P eter Zihlmann

www.pzim.com investment@pzim.comPhone +41 44 268 51 10 Mobile +41 79 379 51 57 THE TIMELESS PRECIOUS METAL FUNDis a shareholder in the company and will benefit from any increase in the company’s share price.

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******************************************************************************************************************** Disclosure: The author has not been paid to write this article, nor has he received any other inducement to do so. The author is a shareholder in the company and will benefit from any ncrease in the company’s share price. i Disclaimer: The author’s objective in writing this article is to invoke an interest on the part of potential investors in this stock to the point where they are encouraged to conduct their own further diligent research. Neither the information nor the opinions expressed should be construed as a solicitation to buy or sell this stock. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions in the stock. ********************************************************************************************************************

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