patersons' spec buy note on royal, page-7

Hi

You can access it on the ROY website. It is a pretty good summary of what they have mentioned previously.

Trade for profit: the price spike was due to the placement announcement at 10c along with issue of piggyback options. This announcement was also leaked - hence the run up. Price remained strong as people scrambled for shares in order to get on the books by a generous record date.

The thing that makes ROY such a VERY worthwhile SPEC BUY is due to a number of reasons which my broker friend made mention of to me today in an email and subsequent discussion:

They have so many of the building blocks "ticked off" already. Most speccy miners obtain some tenements and then do a stack of drilling which - if successful - is followed up by share placements which in turn is followed by the really hard yards....PFS, BFS, infrastructure/transport concerns, native title negotiations, obtaining millions in funding and the finding customers to sell to.

Marcus Flis has all these bases pretty well covered already (well substantially so)...just read the Research Note and you'll see the terms of the JV with Sing Tan. Those guys have connections to help with the funding; they will be buying the ore from ROY, they will be handing over cash to help build the mine and so on.

This is a significantly advanced grass roots development AT THIS STAGE.

Naturally, ROY need to firm up the size of the resource and there are still "unknowns" to overcome on that front...but no different to any other speccy miner/explorer.

But with a little bit more cash to trickle in following the conversion of options, followed by further $$s to come from Sing Tan on a resource upgrade, and you can see that Flis has been SERIOUS about his work to date at ROY.

Sort of reminds me of a mini-Fortescue - and how Twiggy went about things. Of course ROY might never be that big but you get the drift of my comparisosn: Flis is more than just a cowboy running a small explorer...he's got some very good organisational/logistical skills if progress to date is anything to go by.

This is shaping as a small explorer stock worth following in 2010.

I am bullish about this one.

Good luck

Coop