Dr Palmer, in one of his presentation, made a remark that PRB was rated highly by 9 out of 10 analysts. He did not name that lone analyst with his extreme view and was brave enough to stake his reputation with a one year target of $0.50/share. This extreme, and unsupported view was simply ignored by his peers and the market, considering a resource estimate of 4.3 M oz Au and a cash component of more than $0.50/s, his one year target. And today the market says that PRB share is worth over $3.00/s, one day after the land deal was announced.

My suggestion would be to just ignore this lone analyst and move on with our own DD. It would be expected to see valuation updates from other analysts soon with upgraded valuation of over $4.0/s. I don't even care if that lone analyst come back with a glorified valuation of PRB. His previous valuation (hatchet job, or not) with a subsequent downgrade to $0.50/s was simply UNforgiven and cannot be erased from the record.

It would be better to try to understand the implication of the land deal on PRB resource estimate, from the following perspective (which I am currently doing).

- the 50/50 JV area;

- the wedge (definite resource increase, based on previous drill results from both ends);

- the infill drilling (resource increase, upgrade of inferred to indicated);

- the last 500m to the other shore along the SE strike;

- more land (deal) along the strike SE of the lake shore (north of the cottages). There are some ~5km of potential targets along the SE strike;

- more land around the 50/50 JV area;

- and of course the implication of using a new (modified) pit constrained model to include additional high grades that have been left out the pit in the previous Technical Report. This could be a biggy and could add quite a few ounces (1M+oz) The current pit constrained model could be too conservative (noting that it was done before the land deal, now the deal has been done...surprise!);

- more land heading toward the East Limb (potential multiple strike).

It would not be a surprise to see that the resource estimate would be 2x the current level of 4.3M oz (say ~8M oz).

goldhunter