IPO Analysis - Miramar Resources Limited M2R, page-4

I believe that before investing your hard earned money into a speculative business, it is also very important to know the key risks that could happen - these are all stated in the prospectus and outlined below:

”(a) Exploration and development of Projects

Mineral exploration and development is a speculative and high risk undertaking. As the Company is an early-stage exploration company, there can be no assurance that exploration on the Projects will result in the discovery of an economic mineral resource.

(b) Completion of Acquisitions

The Company has entered into three agreements to acquire tenements that have not yet completed. Until completion has occurred there is a risk that completion and the registration of the tenements in the name of the Company may not occur. It is a condition of the Offer that completion of these Acquisitions occurs.

(c) Grant of tenement applications

The Company has agreed to purchase tenement areas that remain as applications for tenure and are not granted tenements as at the date of this Prospectus. There is a risk that one or all of these tenements are not granted, which could reduce the project areas held by the Company.

(d) Conditions to tenements

Interests in tenements in Western Australia are governed by legislation and are evidenced by the granting of leases and licences by the State. After the completion of the Acquisitions, and after the grant of the Company’s tenement applications, the Company will have an obligation to meet the conditions that apply to the Tenements.

(e) Rehabilitation of Tenements

In relation to the Company’s proposed operations, issues could arise from time to time with respect to abandonment costs, consequential clean-up costs, environmental concerns and other liabilities. In addition, certain Tenements being acquired by the Company have pre-existing environmental and rehabilitation costs associated with previous workings on those Tenements that the Company will become responsible for.

(f) Native Title and Aboriginal Heritage

In relation to the Tenements which the Company has an interest in, there may be areas over which legitimate common law native title rights of Aboriginal Australians exist, which may impact on the Company’s ability to access or develop those areas.

(g) Operational risks

The operations of the Company may be affected by various factors including the failure to locate mineral deposits, failure to achieve the predicted grades, operational and technical difficulties, insufficient or unreliable infrastructure, mechanical failure and breakdown and adverse weather conditions.

(h) Grant of future authorisations to explore and mine

If the Company discovers an economically viable mineral deposit that it then intends to develop, it will, among other things, require various approvals, licences and permits before it will be able to mine the deposit.(i) RelianceonkeymanagementThe responsibility of overseeing the day-to-day operations of the Company depends substantially on its senior management and personnel. There can be no assurance given that there will be no detrimental impact on the Company if one or more of these employees cease their employment.

(j) Resource and Reserve Estimates

There are no current Resource or Reserve estimates identified by the Company on the Projects. There is no assurance that any Resource or Reserve estimates will ever be successfully identified on any of the Projects.Additional information on these key risks and further risks are disclosed at Section 5 of this Prospectus.”