What is the price in the SPP?, page-2

2c

Infact below 2c is my estimate of the RXL price from the SPP. For my conseravtive calcs I am using 2c but will probably do better than this. No certainty here. But an evidenced based estimate can be made.

Reasons are:

1. Price is 20% below the weighted average of the five days trading before the issue date. So today Friday 29th May is the first of those 5 days contributing to the weighted average.

2. Last nights close was 2.5c. 2.5*80% = 2c

3. Selling will probably drive the RXL price down further than the current 2.5c in the 5 days prior to issue.

4. Buyers in the SPP may want to sell a matching quantity of RXL in their exisitng holding to try to realise the possible 20% profit. This is a way to maintain a constant exposure to RXL and not get diluted. These SPP buyers may consider an advantageous time to sell is in the 5 days prior to issue. Thus helping to drive the issue price lower. They may feel the price will go even lower once the new RXL are issued as overstretched SPP buyers do forced sales. There is a slight 'scale back' risk in pursuing this strategy.

My feeling is the RXL SPP issue price could be as low as 1.8c. Even 1.6c if selling really kicks in for the next five days.

RXL is a solid prospect with a new Ni province. Almost a no brainer. A remarkable intersection would send RXL flying.