Ann: Apollo Hill Preliminary Economic Assessment, page-5

For those interested this a comparison of Apollo Hill with some key heap leach projects at various development stages (up to DFS) in the Great Basin of North America (Idaho and Nevada) as well as a project in Chile (the Fenix project).

You can see Apollo Hill is comparable both in size and specifications. The SARG is the Strip Adjusted Recovery Grade. It takes the head grade and multiplies this by the recovery rate and then divides the result by the Strip ratio plus 1. We can see Apollo Hill at 0.16 g/t is about average. The Capital Expenditure at US$163 per Oz per recoverable ounces of gold is also around the average of US$170/oz. The AISC of US$1,220/oz is significantly higher than average and reflects the fact that this study IMHO is more recent and accurate than many of the other studies. Revival's Beartrack study was released just last month and you can see the similarity in costs to Apollo Hill. Their project has a lower SARG and does not have the same economies of scale as Apollo Hill.

Note Beartrack and DeLamar are both in Idaho where it's tougher to get environmental permitting. Rio2's Fenix project in Chile is also having trouble with environmental permitting, yet the EV per recoverable oz for all these projects is still at or around the average. The Enterprise Value per Recoverable oz for Apollo Hill is just US$13/oz, versus the average for the group which is US$45/oz (less than a third).

For mine two key reasons explain this discrepancy in valuation.

1. Heap leach projects whilst common and widely accepted in North American markets are relatively unknown and misunderstood here in Australia which presents an opportunity.
2. Saturn's Apollo Hill deposit is at a PEA level where the other projects in this comparison are typically at the PFS level or better (DFS) so they have defined reserves (a higher level of confidence).

That said I think Saturn Metals represents an interesting opportunity.