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ARROWHEAD :

Due Diligence and Valuation Report

Arrowhead Code: 25-01-05

Coverage initiated: 15 September 2010

This document: 9th MAY 2011

#### Fair share value bracket: AS$9.01 to AS$36.24

Share price on date: AS$3.54i

Analyst
Thomas Renaud Saravanan Sekar
[email protected]
+1 (212) 619 6889

Company: SOUTH BOULDER MINES
Ticker: ASX: STB
Headquarters: West Perth, Australia
Managing Director: Mr. Lorry Hughes
Website: www.southbouldermines.com.au
Market Data
52-Week Range: AS$0.55 to AS$6.25ii
Average Daily Volume: 482,312iii
Market Cap. on date: AS$304.85Miv
Financial Forecast Data (in AS$)
�11E �12E �13E �14E �15E
High profit/ (loss)
million 0.9 1.3 (14.5) (58.1) 727.5
High EPS cents 1.3 1.7 (16.9) (61.2) 700.4
Low profit/ (loss)
million 0.9 1.3 (14.5) (56.1) (103.
1)
Low EPS cents 1.3 1.7 (16.9) (59.2) (99.2)
Fiscal Year (FY)
1st July � 30th June
Summary
South Boulder Mines Limited is an Australian-listed
exploration and development company focusing on
multiple gold, nickel and fertilizer prospects
primarily located in Western Australia and Eritrea in
North East of Africa. One of South Boulder�s main
areas of focus is on its Duketon Greenstone Belt
projects which contain the exciting new Rosie Ni-
Cu-PGE discovery. The company owns 100% of all
gold prospects and participates in a farm-out Joint
Venture with Independence Group NL (earning
70%) for nickel sulphide prospects within the same
area.
South Boulder Mines Ltd. has a 100% interest in the
Colluli Potash Project located in the Danakil
Depression region of Eritrea (Africa), approximately
200km south east of the Capital Asmara.