Aurelian Resources (ARU)

[Rocketred]

CANACCORD Adams Flash Update

Recommendation
This discovery is very quickly taking on world class potential with, based on today’s results, significant higher grade areas. Valuation is very difficult to estimate given the moving target of the size and grade of FDN. We have maintained a SPECULATIVE BUY recommendation since April 6, 2006. We maintain this view. Under current estimates outlined above, if we assume the market were to employ a US$100/ounce in situ valuation, at 8.0 g/t Au this could derive a target price in the $20/share range, This however does not apply any development leverage which we believe remains substantial. Quantifying this leverage at such an early stage of exploration is difficult to tangibly estimate. We believe that a range of 1.25 to 1.5 times our rough estimates above may be applied by the market."