Sovereign Mines of Africa* - Major gold mineralising system shows continuity over one kilometre

Sovereign Mines of Africa* Major gold mineralising system shows continuity over one kilometre Public Private Partnership with African countries whereby SMA has really aligned its interests with that of the African people and the plan is to roll out this concept beyond Guinea where operations are currently focused. Cracking drilling results coming from the flagship Mandiana-Magana gold project where a large bulk-mineable potential economic resource could be delineated. The management is made up of proven mine finders including John Prochnau, the founder CEO of Brancote Holdings and Hidefield Gold; and Exploration Director John Barry who has had a key role in a series on multi-million ounce gold deposits in Ghana, Tanzania and Mali. Peer group analysis of gold explorers in West Africa has revealed that on discovering the target JORC resource, SMA could attract an Enterprise Value £16.3 million which equates to 8.4p per share. Click to Download Full Report Table: Financial overview Year to 31st Dec. 2010A 2011A 2012E 2013E Revenue (£m) 0.00 0.00 0.00 0.00 PBT (£m) (0.53) (0.33) (0.60) (0.80) EPS (p) (0.41) (0.21) (0.36) (0.48) Dividend (p) 0.0 0.0 0.0 0.0 Yield (%) 0.0 0.0 0.0 0.0 Source: GECR and company Speculative Buy Target price 8.4p Key data Price 4.63p 52 week high/low 10.25p / 4.50p Primary exchange AIM EPIC SMA Shares in issue 195 m Market Cap £9.0m Sector Mining Valuation NAV / Share 1.51p TNAV / Share 0.60p Affiliations: Sovereign Mines of Africa is a corporate client of Peterhouse Corporate Finance, in which Rivington Street Holdings, the ultimate owner of GE&CR, has a 49.9% stake. Important: All disclaimer information can be found on the last page of the document

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