Tax ruling increases recent KPMG valuation for Outokumpu to...

Tax ruling increases recent KPMG valuation for Outokumpu to A$44M ? A$122M
Universal Resources Limited (ASX: URL, Universal) today announced an improved valuation of
the Outokumpu (Kylylahti) project in Finland based on a recent tax ruling.
Earlier this year, shareholders in Vulcan Resources Limited (Vulcan) received an Independent
Report by KPMG (Corporate) describing the Scheme of Arrangement to effect the recent merger
between Vulcan and Universal. The merger was successfully completed on 19 February 2010.
As one of the building blocks to bring the project into production, the group undertook a corporate
restructure to permit the grouping and preservation of its tax losses and to avoid withholding tax or
double taxation. The Company has now received a positive tax ruling that these benefits can be
achieved.
KPMG included two valuation ranges in its Independent Report for the Outokumpu project , one
based on including the tax losses and one that excluded Vulcan?s tax losses in Finland. The report
adopted the lower value as the outcome of the corporate restructure was at that time unknown.
Advice from Finnish authorities that Vulcan?s tax losses in Finland will be preserved means that the
more favourable valuation of A$44m ? A$122m for the Outokumpu project should apply rather
than the range adopted in the report of A$21m ? A$80m1.
The significance of this information is its positive effect on the value of cash flows from the
Outokumpu project and the increased certainty in the financial models, which are likely to be
presented to potential financiers in April/May 2010.
Universal?s Managing Director, Dr Alistair Cowden, said he was pleased to see the tax ruling work
in favour of the project?s valuation.
Universal?s market capitalisation is currently A$34m (at 15 cents per share) and the Company has
approximately A$17m in cash.
?The market ascribes a value to all our projects of about A$14m ? a fraction of KPMG?s valuation
for the Outokumpu project alone,? he said.
?In our opinion, that demonstrates a lot of room for growth in the coming months.?
Universal?s Project Portfolio
Universal?s project portfolio also includes one of the largest undeveloped open pit copper projects
in Australia, the Roseby Copper Project near Mt Isa in Queensland.
1 In Euro the new range is ?27.7 to ?76.2m, from a previously range of ?13m to ?50m. The above valuation assumes an
exchange rate of A$1 = ?1.6.
UNIVERSAL RESOURCES LIMITED ? NEWS RELEASE
URL0011-AC
2
Resources at Roseby contain some 877,000 tonnes of copper and 239,000 ounces of gold in nine
shallow deposits. A detailed feasibility study for a 5mtpa open pit mining operation on three
deposits has been completed and the project is currently proceeding through permitting.
The Company also holds significant nickel sulphide resources and nickel exploration tenements in
Finland.
Shareholder Communications
Supporting an ongoing commitment to shareholder communications, the Company has updated its
corporate website with a new video message from the Managing Director.
A regular video newsletter will be circulated to all investors who sign-up to receive electronic