Ann: Maiden 32,000 t Cu Resource for Griffiths Hi, page-6

re: Ann: Maiden 32,000 t Cu Resource for Grif... INSIDE TRADERS ALSO RECOMMENDED TO BUY..........see below their recommendation,

We have kept our eye on this stock over the last few years. Kagara Ltd (KZL) is a mid tier base metals miner (mainly zinc and copper) that has had a languishing share price for a long time. The share price has recently been affected by the recent heavy rain season impacting ore and concentrated trucking due to road haulage constraints. In addition to this, zinc production was particularly impacted by cyclones in Queensland over the quarter.

The price is up today on an announcement regarding a copper resource for its Griffith Hill operation.

There are a few reasons why we think this stock is ready to move:

1. There has just been a large jump in buyer demand and smart money. This means that buyers are lining up to buy this stock and they are wanting to invest much more money than they usually do.

2. Over the past 12 months, brokers have been slowly increasing their recommendations on KZL. Over the last month, the share price has fallen, while the average broker recommendation has increased indicating that the share price may be undervalued.

3. There is a new MD who is more concerned with increasing margins of KZL's existing assets in copper, zinc-lead and nickel.

There is solid support around the 51c mark.