Treasury Metals: FCM Advanced Resource Stock Valuation

Flagship Property: Goliath Gold Project = 100% Ownership … 1 Point

IRR = 25% … 1 Point

NPV/CapEx = 230% … 1 Point

F/D Market Cap per Resource Ounce = US $37 … 1 Point

Cost Structure = 47% … 1 Point

Resource Base = 1,165,800 AuEq ozs … -1 Point

Future Cash Flow = US $125,010,000 … Unrated

Future Cash Flow Multiple = 4x … 1 Point

Share Structure = 145,486,468 … 1 Point

Debt Coverage = 2000% … 1 Point

Projected Future Market Cap (@ $2000/oz) = US $349,500,000 … Unrated

Projected Future Market Cap Growth Percentage = 700% … 1 Point

Location: Kenora/Dryden District … 1 Point

Conclusion

Treasury Metals, which is led by a veteran mine-building management team, took us by surprise with an FCM Advanced Resource Stock Valuation score of 10/11. In order to boost the economics of the Goliath Gold Project, we would like to see Treasury Metals grow its resources through its ongoing 27,000m drill program. Already, recent drill results at the high-grade C-Zone shoot have improved the investment case for Treasury Metals, and we believe an expanded resource base will be incorporated into the forthcoming PFS. We consider Treasury Metals an undervalued, moderate-risk future junior producer with a long-term target price of $2.40 a share.

Score

10/11


Key

Flagship Project: 100% Ownership … 1 Point

After-tax IRR = > 20% … 1 Point

NPV/CapEx = > 1 … 1 Point

EV/Resources = < 1 … 1 Point

Cost Structure = < 50% … 1 Point

Resource Base = > 80 Mlbs. U308 … 1 Point

Future Cash Flow = Unrated

Future Cash Flow Multiple = > 5x … 1 Point

Share Structure = < 200 M … 1 Point

Debt Coverage = > 50% (or No Debt) … 1 Point

Projected Future Market Cap = Unrated

Projected Future Market Cap Growth Percentage = > 500% … 1 Point

Location: Friendly = 1 Point

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