Ann: Sumba Epithermal Gold System , page-11

Allan,

Who knows what they will actually GET?

- plug current numbers into HGO's old DFS, (with changes to metal prices, exchanges rates, AND the now larger resources and hence mine life.
- compare Kanmantoo with comparable projects. Fortunately, Lady Annie is also for sale and has a price of $150m on it+

The DCFAT was $167m at the end of 2007. Before the resource upgrade.

So you are not going to be far off the mark Allan. But it really depends on what the market will bear NOW - not what its fair value actually IS.

Assuming you are right, the whole project would be worth $160m (39 cents per HGO share), and the (equity) market is valuing it at less than $10m (2.5cps).

As you say, HGO will be JVing out a half share, so will only have a small capital shortfall.

How many other junior mine developers do you know who can fully fund new mine developements (pay dividends whilst developing), and still have cash to spare...?

Do you just think the market has been caught napping with HGO...?

Y