Ann: Revised Lac Rainy Exploration Update, page-36

If anyone wants to do their own research, read the focus Graphite feasibility study.

http://www.focusgraphite.com/wp-con...bility-Study-Technical-Report-August-2014.pdf

As for share price estimates make sure that dilution is factored in.

If I do an earnings-based calculation for a project of similar scale to the neighbouring Focus Graphite Project then I arrive at $0.06 ( based on earnings once in production). That’s basically a 4-year target.

I’ve assumed 15% dilution year on year for 4 years after the existing oppies have been exercised. Assumes 10% dilution from each cap raise with 1 option for every 2 shares ( so 15% dilution ).



Must emphasise that this assumes MLS can achieve an equivalent scale project. We don’t have an exploration target yet.

Whilst some channel samples might yield > 40% TGC I think it’s unlikely for this to be the average across the deposits. So I would stick with 15% as an upper-end average TGC grade ( based on the neighbouring Focus Graphite Resource).

40 to 50 kit concentrate production is probably the minimum that MLS should aim to achieve. Their focus needs to be on defining a resource big enough for achieving this.