Mackie - A High-Grade Component Grows Again

EVENT – Release of 19 Additional Holes, 2 To South-East

Increased evidence of a high-grade component within the resource: Probe Mines released assays from an additional 19 holes completed as part of its ongoing drill program at its Borden Gold project, near Chapleau, Ontario. Of the holes released, holes drilled on SECTION 1700 SE were of particular note since not only where these holes 500 metres further south-east from high-grade intercepts on SECTION 1200 SE, but each hole drilled on the section intersected good grade material over excellent widths, once again indicating that a high-grade component within the resource is showing continuity – and potentially over a large additional strike length beyond the existing mineralized envelope. Holes drilled on SECTIONS 1800 SE and 1900 SE are pending.

High-grade SE showing additional high grades: Drilling on SECTION 1200 SE intersected 10.3 g/t over 51 metres. 4 holes drilled on section 1150 SE (between 1100 SE and 1200 SE) all intersected mineralization, the best being 5.9 g/t over 12.6 metres and 14.1 g/t over 4.7 metres. Now on SECTION 1700 SE are intercepts of 4.6 g/t over 25 metres and 12.5 g/t over 10.2. The caveat is that intercepts on SECTION 1700 SE are 400 metres to 500 metres below surface – generally too deep for open-pit mine. Nevertheless, a high-grade underground component to the Borden Gold resource is emerging.

IMPACT – Positive; Grades Increase Towards SE End of Deposit Infill drilling continues to prove up continuity and increases confidence in resource quality and size: The current drilling materially adds to the overall confidence of the current published resource, but it is also evident that “something different” is happening at the southeast edge of the resource, which could add to the resource quality. More drilling in this region is required. However, given the size of the step-out in today’s release (not enough data and too far from the current resource), it is unlikely that many additional resource ounces may be initially attributed to this new area in the next resource update (2Q/13).

ACTION – Maintain BUY Rating and $4.60 Target Price

We have not adjusted our target price for the potential of a high-grade component in the resource. However, we continue to believe Probe has successfully defined a resource which will become a mine, and is on to something new. We remain a BUY, target $4.60