If in fact 50% of Windfall is sold

HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Milsy1

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If in fact 50% of Windfall is sold

posted on Oct 03, 2008 06:05AM

for say $100MM, can we assume that this said amount represents 10% in-situ. As there is no formal resource estimate complete much of what we are discussing is pure speculation. Without a 43-101 in place, management would have to put forth a pretty compelling case. Let's assume they did and again assume that the $100MM represents 10% in-situ.

Therefore, $100MM / 10% = $1.0Bn Gross Metal Value.

The purchaser is therefore paying $100MM for $500MM worth of assets (actually 20% in-situ) leaving our 50% of the property worth the same $500MM.

Many will suggest that 10% is too high but if we are to assume that it is 5% and another company did (does) buy in for $100MM, then obviously, the Gross Metal Value of Windfall is expected to be higher.

$100MM / 5% = $2.0Bn

Thoughts,

Milsy1

Therefore, our remaining 50% is valued at $1.0Bn.

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