RED 5 - PREDICTIONS, page-12

Makes total sense to me Patron. MiStragic made good sense too. The merged entity should be faily valued north of 45 cents l think. Its easy enough to calculate. No debt and no hedging is a deal sweetner. Obviously if the gold price rallies, our new re-rated SP should increase to mirror this.

The big unknown that really should be considered and l have mentioned it a number of times before. If the financial health of the U.S. and other major nations continues to deteriorate, gold miners will again find favour with global investors and their much maligned share prices will increase by several multiples across the board. When this happens, and it will because the return to a commodities focus by stock markets is cyclical. Therefore, if the new Red is trading circa 50 cents, one could easily see a SP above $1.00 even before/if the current gold price moves materially higher.

Personally, l think its much more likely economic conditions will deteriorate and the gold price will make new highs, than any soft landing or gold retrace. Thats why l think Red5 / SLR merger will be a very good investment medium term.