updated company info and valuation

COVENTRY RESOURCES LIMITED (CVY.ASX)

DATE: 29 MARCH 2010

Canadian Gold developer, Coventry Resources Limited (Coventry) has placed a 5M dollar retail placement of 22.94M shares at $0.22 per share in part to finalize the acquisition of the Cameron Lake Gold Project in Ontario, Canada. Further stock placements are expected in the near future as MD, Mike Haynes, tours the US drumming up support for a second wholesale or institutional placement.

I expect Coventry to have an active month in April as discussions finalise with potential institutional investors and the Cameron Lake gold project acquisition is finalized. Coventry reported that the extension of the settlement date for the acquisition was necessary to, complete all regulatory procedures required to complete the transaction, particularly procedures relating to the transfer of mining leases. Further to this comment, Coventry emphasized that, the extension in no way jeopardizes the Companys ability to finalise the transaction. There is no change to the consideration payable for the acquisition. Indeed, following the retail component of the capital raise, Coventry is adequately funded with $8.5M cash.

Potential Announcement Flow April


First pass JORC resource Ardeen Gold Project based on 22,000m of drilling.

Drilling results from second phase of drilling at Ardeen will begin to filter through.

Settlement of Cameron Lake acquisition.

Commencement of up to 20,000m of drilling at Cameron Lake.

Completion of the institutional component of the capital raise prospectus closes 30 April.


Ardeen Gold Project

Comprises unexploited high grade pods of ore and an underground mining operation with 380m deep and 850m lateral strike mine shaft. The open-pittable Fisher, Mckellar, Trench 2 and other prospects to be tested are all within one kilometer of each other and apart of the same mineralized system.

Acquired Aug 2009 for 15M CVY shares and 5M options exercisable at 20c

Underground mining history with 380m mine shaft

Focus going forward are unexploited shallow high grade pods

Initial exploration target of 1-1.2Mt of mineralised material grading 10 15g/t gold, which equates to about 500Koz of gold

Sampling results expected from the central portion of the project area

High grade and shallow hits of gold realized from recent diamond drilling

Re-analysis of 12,000m of diamond core - 70% not previously analyzed

Second phase winter drilling program commenced February

First pass resource due second quarter 2010 based on 22,000m of drilling

Cameron Lake Gold Project

Cameron lake is a near term production opportunity and comes with a high grade (4.46g/t) crushed ore stockpile and near new 300Ktpa processing facility. Like the Ardeen project, the metallurgy is good and the permits required for mining are already set in place.

Acquired Dec 2009 for 12M CVY shares and $6M Canadian. Settlement expected in April 2010

84,541m of drilling conducted from 757 surface and underground holes

11.3Mt @ 2.77g/t for 1.005Moz of gold indicated and inferred resource (1.5g/t Cutoff)

Target of 1.5 2.0Moz open pit and underground

Mineralisation open along strike and depth

Eleven other underexplored but advanced prospects that require testing

20,000m drilling program to commence April


Cameron Lake open pit mining study

A starter open pit at Cameron Lake would see mining of 5.0Mt at 2.09 g/t gold to recover 310Koz with initial positive cash flow of at least $156M. 64% of this starter open pit resource is currently classified as an indicated resource but further drilling beginning in April will increase the confidence level and is also likely to expand the resource as strike remains open in both directions.

A high grade gold resource sits below the conceptual starter pit and is expected to be recoverable from underground mining operations. Some underground infrastructure already exists here with a shaft in place to 243m below surface and high grade gold delineated to great than 850m down.

EV/Oz Discount

Coventry has a resource of 1.005Moz of gold with a great degree of upside. Based on the capital raise price of $0.22, CVY has an enterprise value of $20.4M and an EV/Oz of $20.30. This represents a discount of 75.5% to the EV/Oz of other emerging producers, which is $83.

Capital Structure

Based on the market valuation of comparable gold companies with a similar degree of sovereign risk, I have devised a valuation target of $0.76 to $1.60 per share, dependent upon the size, continuity and grade of resource that Coventry ultimately certifies.

The valuation does not incorporate dilution for any further financing arrangements for a second processing plant or to increase the capacity of Coventrys existing processing plant.





Assumptions:

Institutional capital raise completed at $5M

Cameron Lake acquisition settled

AUD/CDN exchange rate 1:1.


Assumptions:

$EV/oz from research 'Precious Metals Sector Update' Dec 2009 Argonaut Securities. Median Ev/oz for 'Emerging Producers'.