BC8 TA, page-3

BC8 is trading at 1/3rd the average Goldie and that they have several plants and camps. It seems ridiculous. I'm sure the wake up will come.

	Recommendation: BUY
1	Price Target: $0.73

EVENT

Black Cat has announced that drilling at Paulsens has encountered visible gold in the **bro Veins. First production potentially next year.

HIGHLIGHTS

• Black Cat commenced its exploration program at Paulsens in early November and has completed the first six diamond drillholes in to the **bro Veins.

• Visible gold was intersected in three of the drillholes, hosted in thick quartz veins.

• The **bro Veins are in the footwall of the Paulsens decline and are readily accessible for a potential mining restart.

• We like Black Cat because;

1. It is a cheap stock in a cheap sector - trading at an EV/oz multiple of just $24/oz – which compares to its WA peer group at $72/oz, and recent acquisitions above $100/oz.

2. It has a clear pathway to production of over 150kozpa of gold with first production potentially as early as next year.

3. Black Cat has embarked on a comprehensive exploration program around both Coyote and Paulsens. Exploration success at either will be game changing for the company. These were assets that were non-core for Northern Star and so despite the obvious prospectivity, have been very lightly explored.