Ann: Bankable Feasibility Study Update, page-10

Update from Euroz - 45c target remains.
Lots of exploration upside etc. On these numbers, EAR looks like its on a forward PE x 3 times.
I would imagine that the stock valuation would be well north of 60c when its up and running this year..

	Column 1	Column 2	Column 3	Column 4	Column 5
0	Column 1 0 Echo Resources Ltd (EAR $0.24) Speculative Buy Column 1 0 Analyst	Date	Price Target Andrew Clayton	24/05/18	$0.45/sh

Bankable Feasibility Study UpdateKey Points The Yandal Gold Project Bankable Feasibility Study (BFS) is expected to be completed by end Jun’18:· EAR are awaiting the receipt of tender submissions for the mining contract to finalise the BFS. This is expected during June.· All major cost items have been advanced to formal tender or quote stage. In anticipation of the BFS, EAR have appointed debt advisors and early discussions with potential financers are underway. Additionally, a Process Manager and Mining Manager have also been appointed. Investment CaseWe continue to like EAR as a low capex, emerging producer with excellent exploration upside. The DFS should demonstrate a robust development with reserve of ~ 850koz and annual production of >90koz ( Yrs 1-4 @ 105koz) at AISC of ~ $1,200/oz. We rate the exploration potential highly and expect further high margin ounces will be added over time. The recent Ramone discovery by NST just to the north of EAR’s tenement boundary has opened a new area of interest. Our valuation remains at $0.45/sh which is risk adj by 80%. Corporate action can’t be ruled out NST holding a 19.2% interest and its share price close to record highs. [/table]

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7	Column 8	Column 9	Column 10	Column 11
0	Echo Resources Ltd (EAR) Share Price	0.24	A$/sh​ Price Target	0.45	A$/sh​ Valuation	0.45	A$/sh​ Shares on issue	488	m(dil) ​ Market Capitalisation	110	A$m ​

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	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7	Column 8	Column 9	Column 10	Column 11
0	Enterprise Value	98	A$/m​ Debt	nil	A$/m​ Cash	11.6	A$/m​ Largest Shareholder	NST 19.2%	m(dil) ​		​

[/table]