Some people are thinking they are too late to the ZEN party.

Here are my thoughts on that:

First of all, it is about MC (Not share price) and our MC is still only $56M or 77M FD. We have 11 million warrants at $1 that when fully exercised, will give us about $13M in the treasury, enough for our drill program and our PEA. Our MC for a company that has something so unique that they are the only company in the world developing it and there is only one other mine of this kind in operation. The other mine is in Sri Lanka and they are mining 5-10 centimeter veins where we have over 200m of the stuff in some of our drill holes.

If you convert graphite value which has many parameters to gold, our deposit is averaging about 8g/t based on $10k per tonne of refined product. The company has stated that the current market is actually worth $20k per tonne and has been as high as $30k per tonne. So this is a very rich deposit that could be valued as high as 16-24g/t gold on average. Anyone that knows anything about gold deposits will tell you this is an extremely rich deposit and having this near surface and infrastructure, in Ontario with a tight share structure is a recipee for great ROI.

The key information to getting those very high valuations for refined graphite only came out this Tuesday morning when the company announced 99.96 purity results with a cheap, off the shelf method. This is the key that the market has not fully grasped yet...that and the fact that this is vein graphite, very different from the flake graphite out there. As this info penetrates the market and gets to fund managers, you will see our share price climb.

We still have warrant holders that will want to cash in and we are in overbought territory so I do expect another week of consolidation with support at $1.35, $1.27 and $1.17 and probably capped around $1.50. This is an occasion to add to positions IMO as once the warrant holders have cashed in and we get back to neutral from overbought, I do expect this stock to have a gradual climb towards the $2.50 to $3.00 range before we even get any drill results.

Glorieux