Looks like a lot of money has been wasted on "expert" reports....

Looks like a lot of money has been wasted on "expert" reports. 242 pages!

From page 3:
The Independent Expert assessed the fair market value of a Rey share, inclusive of a full premium for control,
to lie in the range of 14.3 cents to 21.6 cents and concluded that the proposed 90 million share placement at a
price of 12.0 cents per share is not fair. However, the Independent Expert has concluded that this placement is
reasonable because there are sufficient reasons for security holders to accept the transaction in the absence of
any higher offer before the close of the offer. That is, evaluation of the proposed placement requires
consideration of both value and other matters that may impact upon non-associated shareholders.

From page 231:
Oil & Gas Permits Valuation
The standard minimum valuation for wildcat oil and gas permits is $10,000 per percentage point for each permit. If this formula were applied the minimum value would be $200,000. It has, however, been argued by a number of parties that the minimum value must be negative and equal the committed expenditure but in this instance Rey Resources is free carried to production. The minimum must therefore equate to the committed expenditure for which they are carried. GNOL have recently reprocessed and interpreted existing seismic over the Prospect. Rey stated the cost of this work program was about $100,000. We are advised that GNOL plan to drill a well in each of the permits during the next twelve months and viewing the interpretation report from the reprocessed seismic we confirm there are valid targets within each of
the permits. The cost of drilling will be between $5 and $7 million per well. GNOL are therefore committed to a work program of between $10 and $14 million. This equates
to between $1.0 and $1.4 million for the 10% free carried in both permits.
Another approach is to value a permit on nearby recent dealings. On the 2nd April 2012, Oil Basins Limited (“OBL”) announced to the Australian Securities Commission
(“ASX”) that it had farmed out up to 20% of the Backreef area for up to $3.6 million including $1.1 million up-front payment. This equates to $180,000 per percentage
point per permit or $3.6 million for the two permits held by Rey.
Previously, on the 1st December, 2011, Buru announced to the ASX that Mitsubishi had committed to spend $40 million of the first $50 million to be spent on an unconventional exploration program to earn 50% interest in 13 permits. That
transaction values those permits each at $61,500 per percentage point.
Based on the above two transactions the 10% equity held by Rey in each of its two permits could be estimated as follows (Table 13):
Independent Valuation of Rey Resources Limited Prospects
Valuation for Rey Resources Limited 17th July 2012- AM&A

The OBL transaction is more recent than that of Buru and the latter is spread across thirteen permits. Both Buru and OBL have reported undeveloped hydrocarbons within
their permits. We therefore apply a discount and estimate the value be within the range of $600,000 to $1,800,000. This compares with the $1,000,000 to $1,400,000 expenditure
committed by GNOL. Taking into consideration the recent deals by Buru and OBL, we value the Prospect within a range of $1.2 to $2.5 million, with a preferred of $1.8 million.
Valuation Conclusions By applying the various parameters listed above Table 14 lists the range in values and
preferred value for the group of Prospects. The valuation covers in ground value and is not affected by capital cost estimates.

Thus, it is the writer’s opinion that the current cash value of the Non-Duchess thermal coal portfolio of tenements plus the petroleum permits referred to above is ascribed at $A9.7 million from within the range of $7.3 million to A$11.7 million as at 31st May, 2012.

It would appear this "expert" has no idea of the Canning. Using Buru's transaction with Mitsubishi prior to the proving of the massive BCGA through actual drilling and which in all likelihood extends into REY's tenements appears negligent.