PI Financial Initiates Coverage of Rubicon

WAYNE HEWGILL, Regulus Resources Inc. (11/11/2009)
"With $46 million in cash and another $75 million in the pending financing, Rubicon is well financed to expand the 2010 drill program to 120,000 meters. While the company has outlined a significant 'mineralized footprint,' Rubicon has yet to complete a 43-101 resource on the Phoenix project and is unlikely to do so in 2010. Based on the drilling to date we have estimated a non 43-101 compliant 4.0 million ounce resource on the F2 Zone. The key risk in estimating a resource, and thus a valuation, based on the 'geological footprint' is the erratic nature of the high-grade mineralization in vein systems, such as the F2.

Given the history of 'world-class' gold deposits in the Abitibi region of central Canada, we see Canadian gold projects in established mining camps, such as Rubicon's Phoenix project, receiving a premium over other gold projects in the market.

We believe that Rubicon has made a significant discovery and may be the next major Canadian gold acquisition. We have valued Rubicon at a US$225 per ounce valuation based on our non 43-101 compliant potential resource of 4.0 million ounces. The key risk to Rubicon is confirming the resource outlined in the current 'geological footprint.'

VALUATION/RECOMMENDATION: We are initiating coverage on Rubicon Minerals with a BUY Recommendation and a target price of $5.40. The investment has a SPECULATIVE risk rating and is suitable for risk tolerant investors."

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