Ann: Sunrise to Evaluate Refinery Relocation to USA, page-105

The known resource at SRL and market cap is vastly undervalued, much more so than Chalice Mining (CHN) mentioned previously, and that is the other side of the coin when drawing comparisons. Market cap of CHN is still much higher as the premium, Tier 1 nickel, copper and platinum deposit was only discovered in 2020. It hasn’t been around long enough to get beaten down like SRL or COB, after the initial speculative discovery boom that most miners go through. Now that the honeymoon phase is over, CHN may well likely continue to sell down, if the current overall market downtrend continues. The managers at CHN not long ago on a pedestal, are now getting flak from the shareholders as there has been a 70% fall in share price since April. Rinse and repeat. Investor sentiment predicts there will be a recovery bounce, but most often a continuation of the downtrend, with the occasional spike on news, until funding is announced i.e. the often extended ‘orphan’ phase of the miner’s cycle. Where it is relative to overall market demand determines its’ length.

I am not saying managers at SRL are perfect, or their responses to shareholders, but consider that management are probably well aware of the greater market forces in play, and don’t themselves know when a bottom in the market might come in. As some have questioned why SRL management haven’t bought in, why would an astute manager buy in, until the entire market has turned around, as they one day might expect it to? If they bought in ahead of a deal being announced, while the market is in decline, that could be construed as insider trading. Can’t win ? Averaging down is a strategy, but a risky one for an investor, as no one really knows when the market will turn. I might be prepared to take that risk, but understand if others don’t. Striving to take in the bigger picture and being preparedto ride it out, as long as it takes, might lessen the pain of one’s paperlosses. 2018 was SRL’s honeymoon phase,as was COB’s too and it has been a long orphan phase since that is being drawnout by market forces. There is a huge resource demand factor that will one daykick in, as it always does, after a sell-off disincentivises any furtherexploration and creates a supply demand imbalance. That’s what it is happening, and one needs toaware of it. The survivors will hopefully include SRL, as it is one of the bestresources and selling for a song, but one needs to spread one’s risk.

This is not thebest time for a funding announcement. When it aligns with the next CriticalMinerals bull market, SRL represents a moonshot. That is what I would prefer,so I don’t care if it sits low for now and presents more buying opportunities. Ditto for all the other miners getting flogged.