Market Update

Prairie Mining - Heron Resources - West African Resources

Good afternoon

not much to report from the economic front today!

Daimler planning to speed up their involvement in EV, going to spend 10 Bill Euro´s  to bring at least 10 new electrical cars to the market by 2022.

Not much action in base metals as well today, while gold is rebounding a little from yesterday´s late fall to 1253 US$ as at mid-afternoon.

Prairie Mining - placing 5 mill A$ worth of stock at around 45ct to London-based institutions, bringing their cash position to approx 15 Mill A$, after having spent an estimated 3 mill in the current Quarter. This should be sufficient to finish the feasibility study for the Jan Karski thermal coal mine in the summer, and to accelerate development of the Debiensko hard coking coal project. The placement price is a touch disappointing to me - but Berkeley has shown us, that it can be good news to have a few of these guys on the register as ongoing supporters. For a larger insto, it´s more or less impossible to buy stock of such a minnow in the open market, but that´s made a lot easier for them, once they have a halfway meaningful investment at a preferential price. These things are never looking good for small shareholders, but I think the longer term value far outweighs this. As you know, I am big fan of the company, and am holding a sizeable position.

Heron Resources - are taking a bit too much time for my taste to come up with progress for their zinc development, Woodlawn. The company today announced a new agreement with Veolia about the joint use of the project side. Veolia is using the area as a large landfill project for Sydney waste. They also announced, that they are in the process of documenting a debt and equity structure with financiers, as well as an offtake agreement. Sounds like finally, something is happening here. I would think, that the proejct is highly profitable at the current price level for zinc, lead and copper. Shareholders of Heron recently received a 1:10 free entitlement to Ardea, which have a nickel/cobalt resource, and which trades at 54ct. So there has been at least some fun on the way, increasing the value of a Heron shareholding by a meaningful 5,4ct/share

West African - Broker Argonaut took up coverage, valuing the stock at 40ct, with an upside scenario of 67ct. Being a holder of it, I completely agree - I think the current exploration program will continue to deliver, enabling them to announce an expanded feasibility study in the 3rd Quarter, which will incorporate the planned underground mine.

Have a nice evening

WS