read this announcement, page-10

Good morning, hope we are all having a wonderful weekend.

In response to the recent events / forward outlook -

(a) situaion (in relation to weeks action and positioning)

SBR is poised to break-out yet inevitably there will need a little more patience required. The recent announcement continues to develop an understanding of Kaskara (many have noted as 'the main play'). In reflection of announcement timing (or more importantly SP movement) with 'any' speculative mining play there will always be a little bit of what I call 'feeling'! The original support (9.5c to 12c range) is held by accumulators, the buy-up prior to announcement was "likely" key stakeholders or smaller shareholders looking for pre-drilling entry, the buys from 14.5c to 16c pre-announcement was "possibly" smaller shareholders BUT "likely" mid-tier traders/pre-drilling positioners. The announcment in retrospect was very impressive to a key stakeholder/smaller shareholder YET not price sensitive enough for many traders. The key in understanding price movement is first understood by 'who creates volatility'? It is not your accumulator (unless they are not privy to 'information' OR it is an insto/company taking a large position), it is not a small shareholder IT IS THE TRADER. This then bodes well for the SP action which I stated would occur Friday (or fallback), it is normally caused initially by a larger (pre positioned shareholder) dipping to oneself (or group) and then others selling in to price due to the 'fear' OR more so 'risk' of losing potential profits. All in all it is great for the medium term and if the shares can be centralised more and more (consolidated to lesser hands) it bodes well for the SP down the track - all you ned to do is check out SFR!!!

(b) technical view (ST & LT)

ST: Evidently we have seen the initial 2009 break away gap completely filled which was the recent low of 9.5c. The originally break away gap was 10c to an 18c pre-open, which is why the next break above 18c is very crucial to the technical picture. If 18c is broken with heavy volume I would anticipate a quick move to 30c resistance. By then SBR should be well underway in providing shareholders with a definitive picture. The question is when will outsiders position themselves for the 'just in case factor' - what happens if we drill the first hole and at depth bring up a full chalco core? It will be very difficult to get volume once this process begins and who in their right mind would sell stock if the first drill core brings up the goods?

LT:

Note resistance upon the break of 30c is 45c yet I do not see it staying there for long. 60c is the more likely heavy resistance BUT I anticipate with a positive result and how the stock is currently being "capped" (not sure why!) that a quick move will likely occur between the 90c to $1.20 range. That being said this will occur when fundamental factors (resource estimates) play out. I figure 8 to 12 holes on the hill top should provide this with maybe a few on the outskirts to paint a better picture from the Adit inwards (not sure how they will go about this? - really needs a down-dip expert in my personal opinion). This will then begin to paint a better LT SP view and I believe by Dec12 there will potentially be blue sky above $1.20 (likely on a re-rate) - I have a current valuation given the tight shareholder register / socks on issue and current resource of 60c YET we are under 20c 'Go Figure!'

(c) ST fundamental factors (in relation to price)

The recent jump of 4c was truly confusing even if it takes in to consideration a down the track presumption of a $60M+ project (which it will be). The V valuation alone on the last announcement in ground is approximately 8c (on a based 2%). Area, which is 'not the target' mind you, is 20m/20m/50m(deep)=20000sqm(T)=20Mkg*2%=400000kg*$28=$11.2M/130msh=8.6c. This is lunacy and just goes to show that everyone is playing SBR very conservatively in the ST OR does not understand the geological factors/aspects playing out to a tee (Q has been very insightful - are you sure your not a geo?(lol)). Of ocurse this extends the fact that the entire area is abundant BUT even with half the area having a 2% V grade (and V prices as of last week are on the rise mind you) where is the Cu/Zinc factored in?

(d) LT fundamental factors (in relation to product)

Cu prices are beginning to shift and although there are some global issues still hanging around 'and they could get worse' the mindset of the bigger instos/comapnies is seen vividly by their purchasing/stockpiling. Two years ago I made a very bold statement that Cu by mid 2013 will be $12k+ per tonne and I am from a technical view willing to stick to it.

V is yet to be appreciated OR more so 'understood' - same as rare earths (PEK/LYC etc.). In theory it is more cost effective over the long haul to have this as a strengthener over many other additives, irrespective as to current more expensive market prices.

The other areas may likely provide initial stimulus i.e. Driehoek / Border etc. Do not forget these as they will likely be the initial keys to developemtn of Kaskara - Border 'easy extraction is readily amenable to
upgrading by heavy media separation (HMS) and flotation'. Why say such if it was not going to play a part?

Hope this helps, the next 2 months are going to be quite moving - of course I and my partners in crime might get impatient and buy the lot (lol)

We must remember that 'money moves money'!

NL