KSK's Imminent Growth

DALE MAH, Mackie Research (10/21/2010)
"Probability for further discoveries is excellent: With more than 20 quality targets to evaluate, the probability of further discoveries exists. Already, three new gold-copper zones proximal to Whistler have been discovered: Raintree West, Raintree East, and Rainmaker. . .Further to the south, the Island Mountain discovery in 2009 intersected 1.22 g/t Au over 106.9 meters within a larger interval of 0.68 g/t Au over 382.9 meters.

The resource will grow: With the completion of the 2010 drill program, Kiska has commissioned an updated resource estimate due in Q4/10. This update will include five holes from 2010 and eight holes from 2008 that were drilled subsequent to the initial SRK mineral resource estimate effective February 15, 2008. We believe that the Whistler Deposit will grow by approximately 30% from 5.75 Moz Au equivalent to 7.46 Moz Au equivalent when taking into consideration an optimized pit shell including additional resources not in the SRK model, and a physical increase in the resource size from infill and extensional drilling.

Undervalued with respect to peers: Compared to the enterprise value per resource ounce gold of a peer group consisting of open-pit resources from a broad spectrum of project stages, Kiska trades well below the average ($15 vs. $43). We believe that its current valuation reflects its semi-remote location. "

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