Ann: Prairie Downs Metals Ltd and Ivernia Inc Sig, page-3

re: Ann: Prairie Downs Metals Ltd and Ivernia... Announcment out today suggests PDZ undervalued. Ivernia spendign $3 mill on exploration then paying PDZ $10 mill to get 60%. With an option to buy another 20% for $5 mill.

So say $13 mill for 60% would value the project at $21.5.

PDZ market cap at current price 13.5 cents per share is around $10 mill. They have $3 mill cash.

It appears to me that Ivernai is buying in to the base emtals project only (not the whole tenament) so there presumably is some iron ore potential in other parts of the tenament that is upside.

So summary on a fudamental basis.
1. Project value $21.5 mill (assuming Ivernia exercises option) +
2. $3 mill cash +
3. Non base metals potential (i.e iron ore)
Total say $24.5 mill + iron ore potentail.

Current market cap $10 mill. So fudamental value 24.5/10 * 13.5 cents = 33 cents per shares + iron ore potentail. Which s obviouly a lot of upside

Also from a new flow potential Ivernia will be exploring for PDZ and therefore providing newsflow. They are continuing to do due dilligence on other opportunities whcih will also provide newsflow one they choose an opportunity to invest in.

Cheers
hots