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Gold/Mining/Energy : Exall Resources/Glimmer Resources -- Ignore unavailable to you. Want to Upgrade?

To: Winzer who wrote (546)	4/6/1998 10:41:00 PM
From: James N. Wilson	Read Replies (1) \| Respond to of 1319

Glimmer gold mine JV partners (EXL/GME) shares seriously undervalued Exall (EXL-T) market cap US$8.65 mil - shares o/s 28.3 mil Glimmer (GME-V) market cap US$3.65 mil - shares o/s 5.2 mil * Reserves all categories 563,278 ounces Geological potential 2 million plus ounces Two recently discovered zones not included in count Next reserve calculation expected in June * Market cap vs reserves - assuming EXL 60% GME 40% (pending JV settlement this should be close) EXL US$25.00 per ounce GME US$16.00 per ounce (US$75 - $125 per oz would be more like it) * Projected cash flow based on cash costs of US$220 per ounce with gold at US$320 and production of 65,000 ounces per year. EXL US$0.14 per share x 10 year mine life C$1.97 per share GME US$0.50 per share x 10 year mine life C$7.04 per share It is easy to see that EXL/GME are seriously undervalued by as much as a factor of 3X or more based only on current reserves and production. With the huge potential for increasing reserves and ramping up of production we could see higher multiples over the months and years ahead. With improving bullion prices and a JV settlement that is fair to both parties I would not expect to see share prices of Canada's newest gold producers suffering at these depressed levels for long. (above assumptions are based on shares issued)