From the Taylor-Collison Report - ASX-Listed Comparable...

From the Taylor-Collison Report - ASX-Listed Comparable Companies (gold and nickel)

Rox Resources has a multi-commodity exploration portfolio and the market valuation is quite favourable when comparing to other
respective gold and nickel assets on the ASX. We consider Table 1 and Table 2 (below) highlights two main points:
• The gold assets are undervalued based on a simple EV/ounce metric
• There is effectively no value attributed to the nickel assets
With an impending Resource upgrade at the Youanmi Gold Project (which should provide further clarity on development options)
and options being assessed for the monetisation of the nickel assets (either by way of sale or spin-out as was outlined by RXL in
the “Update on Nickel Asset Divestment” announcement released on the 1st February 2021), we view a strong opportunity for a
potential market re-rate.

Table 2: Nickel Resources (ASX)
ASX Company Project/s Resource (JORC 2012) Enterprise Value ($m)*
Rox Resources (RXL.ASX) Fisher East ~4.2Mt @ 1.9% Ni (78kt Ni) $68.5m

If there is a new share listing created for the Nickel resources, what would this be worth to RXL shareholders now, based on a rough assumption/ guestimate?

If we took $50m as the float capitalisation with a split of 60% retained by RXL holders and 40% IPO for new investors, we would generate $20m in new cash funds, suppressing the need for any near term cap raise.

Based on the Taylor-Collison report 'There is effectively no value attributed to the nickel assets' Therefore, the $20m of funds, added to our current market capital, would be worth around 1.0c to the share price i.e. $20m divided by 2.0B shares.

If the new company was floated with 200m shares at 25c per share, RXL shareholders would receive a free allocation of 60% ($30m balance) of the new listing. Spread over the 2.0B RXL shares, it would effectively add another 1.5c per share to our combined holdings.

In summary and assuming my capitalisation figures as a guide, the announcement of a Nickel spin off would add around 2.5c per share to our current price of 3.7c.

As always, only in my opinion and do your own research.