due for a rerate, page-45

If one had taken the time to look through my due diligence process, one would observe the number of differences and criteria that PRE would break.

Please do have a look before making a comparison. It is nor just drill results that make this company undervalued. It's the three key factors of flagship projects, share structure and most importantly PEOPLE.

Having more than a billion shares on issue clearly shows that the company is in the process of "mining the stock market" rather than keeping their shares tightly held. That very fact in itself would have erected a HUGE RED FLAG for me.

MKO has a low number of shares ( less than 10% of the number that PRE has). They have more than 4.2 million in cash that constitute more than 25% of their market cap. They also have 2 near term gold projects and another 6 drill ready projects that are in close proximity to existing operating gold mines.

Further to the above, the most important component in a junior is the capability of management. James Searle has already made tons of money for investors who had done their due diligence and invested in DRA. They have also come through in every drill campaign and kept to deadlines. I said said on numerous occasions that a firm can have the best results and project but without proven management, they will be going nowhere and bemining the stock market. A proven team can make money on an even average deposit.

Now I am not implying that MKO could start going down the other path but things are going according to plan for the company. Just putting up drill results, neglecting to analyze every other aspect of the company and then comparing it to MKO is wrong. 1.4 BILLION in shares speaks for itself. Also having management with no experience in building mines is a clear red flag.

It would be nice to state the reasons behind your assumptions and back it with facts. I am all for having other opinions but Would appreciate a carefully laid out argument.