Sarissa Resources Inc (SRSR)

[OntaREEo]

Three words and four letters that could make you rich! -- Nov 2008

Sarissa – Keevil – Nemegosenda – SRSR

Add these three words to your investment vocabulary. They add up to billions in minerals for a stock that is still trading around a penny!

TOP TEN REASONS FOR YOU TO OWN SARISSA – NOW!

1. Sarissa Resources (SRSR) is a start-up junior mining company, with 5 properties currently. More accurately, it is a mineral exploration company with strong potential to grow into a mining company. This company is still way under the radar affording you the chance to get in at a fantastic price!

2. Scott Keevil, the new CEO, is from mining royalty, a third generation miner. Scott came on board December 1, 2007 with the intention of building value for Sarissa shareholders. Scott is not paid a salary, but was given 30 million restricted shares (2 years until Nov 2009). His father Norm Keevil is chairman at Teck Cominco (TCK) a mining company, and as majority shareholder is worth several billion dollars. Teck Cominco has also made clear they are interested in strategic joint ventures. The mining game requires patience, but Scott is in the process of executing all the steps in the proper order, and he is delivering on his promises. His experience, connections, and compensation structure can only add up to huge increases in shareholder value for himself, and you!

3. Nemegosenda is the first property Sarissa purchased under Scott’s leadership, and the one with the most immediate potential and focus. This northern Ontario property held great promise as a Dominion Gulf study from 1956 indicated niobium on the property. Two samples also indicated various REE (rare earth elements) which are quite valuable. By calculations from information in the Gulf report and on the project website, the REEs could be worth $10 billion or more. Sarissa had completed the purchase of 7 patented mining claims comprising the initial property of 2000 acres. They have also this past summer staked additional claims of 3000 acres adjacent to the west and under the lake, as the Gulf data indicated that major mineralization values may be there. To verify that study, Sarissa commissioned an independent geologist report from Hawk Engineering to verify the Gulf study. Released in May 2008, it confirmed at least $5 billion in niobium in the D zone, and was subsequently described as a “world-class asset.” Conversations with management unofficially indicate the Hawk report was understated. Wherever there is niobium, there is tantalum. Privately, they believe Nemegosenda has $15 billion in niobium and tantalum (tantalum is always found with niobium). We are still not talking about (a) REE’s, (b) the full extent of the D and East zones, (c) other properties, or (d) resource valuations in the next few years. $5 billion in minerals is huge, and we are very likely talking about several times this number!

4. Ultimately, the company needs to document compliant reserves, known as the NI43-101 standard. Following the Hawk report, the next step is to drill core samples and have them tested for niobium, tantalum, the REE’s etc. Sarissa has set up local offices. Roads were cleared in June, and the site was cleared for drilling in October 2008. The company will first drill in Zone D. A vendor has been selected and drilling will proceed in the very near future. In most mining resource plays, these drilling and lab test steps can lead to very uncertain results, but keep in mind that with the Gulf data, what makes this play unique is that these steps are mostly a formality to meet current industry standards. In the press release for the Hawk Report, Scott Keevil indicated redrilling of Zone D “will be a little like shooting fish in a barrel.” The company also indicates a 580 foot adit from 50 years ago is dry and in good condition to rehabilitate. 15 samples were taken from this adit and tested in August 2008, again reconfirming the Gulf study data. The first set of holes will be drilled in November 2008, and the NI43-101 inferred compliant resource report is expected in December or January. When the results of this testing are made public and confirms the mineral resource at Nemegosenda, the stock will pop!

5. Niobium is used in steel production. Tantalum is used in electronics. The REE’s are critical to many modern products, including batteries, headphones, disc drives, cell phones, etc. China currently controls most of these markets. More details on these elements and their uses are easily available on the web. See http://www.americanelements.com/nb.html for Niobium, and click on the various other elements. Recent data suggests that even with the global economic turmoil the price of these commodities are holding up well, and the uses and potential demand for these specialty elements grows over time. These elements are in demand and of limited supply, which points to stable or rising prices!

6. Geologist Dr. Cam Cheriton is a top name in his field with 50 years experience in the mining industry and a Harvard degree and adds considerable credibility to Sarissa. Sarissa has also (June 2008) appointed seasoned mining industry veteran and project geologist, Alan A. Hawke B.Sc. M.Sc to its Board of Directors. Mr. Hawke, currently based in Tianjin, China, will offer his considerable experience to assist Sarissa in the ongoing exploration program of its Nemegosenda carbonatite deposit and extensive industry connections to source new and compelling exploration properties for the Company's property portfolio. In a 30 year career on three continents, Mr. Hawke has operated in key managerial roles -- encompassing mine development and construction management. Keevil – Cheriton – Hawke – it keeps getting better!

7. Sarissa’s exposure is currently limited as an OTC stock. The company is taking steps to uplist to an exchange where it will have more credibility, as well as access to more and larger investors. They have re-engaged an auditor for its financial statements, and published unaudited financials through June 2008. The company is keeping its options open, and has indicated that several exchanges such as OTCBB, the AMEX junior, and the TSX.V are candidates. The company obviously believes the current share price “grossly undervalues” the company, and indicates that insiders have been buying the stock on the open market as well. The company has 850M A/S, 694M O/S (726M fully diluted), and float of 321M, with approximately 395M restricted shares. When Sarissa releases audited financials and uplists, the added credibility and transparency, and the new investors will likely cause the share price to rise significantly!

8. Sarissa has four choices – (a) develop the mine themselves, (b) get bought out, (c) take on a partner or joint venture, or (d) a Chinese off take agreement. From conversations with the company, the last two are more likely, and are better for shareholder value. It has been suggested that Scott Keevil wants to make Sarissa his legacy and is not interested in selling out. A Chinese off take agreement is where the Chinese guarantee they will buy the entire product at market prices or at an agreed floor price, and put up the resources for Sarissa to extract the minerals. The company is obviously developing these options and has yet had to disclose them. Once the drilling results and compliant report are in, an announcement could follow soon after. This announcement transfers the company from an exploration to a mining company, and the stock price will rise accordingly!

9. The strictest value of the company once it has compliant reserves is dependent on the total resources available, the price of these elements, and the percentage put on these mining companies. Of course, the company can have other intrinsic value as well. Shareholders estimate significant price increases when the first core sample test results are available, when the reserves are compliant, when audited financials are released, and when the stock is uplisted. Also important would be the announcement of their extraction method. Estimates of the potential for this company vary widely and are impacted by the global slowdown, but once the compliant report is released in late 2008 or early 2009, the stock could reach $0.10 to $0.50. Once an uplisting occurs and the JV or method of financing extraction are announced, it could trade between $.60 to $1.00. After evaluation and development of its other properties, the stock could trade between $1 and $5 in the 3-5 year time frame. Valuation estimates based on companies on similar tracks (Commerce Resources) indicate the company could be valued at 5-20% of NI43-101 reserves. Commerce stock spiked to 10.8% of the value of its resources once they became known. Applying this percentage to Sarissa and using $15 billion in niobium and tantalum only at Nemegosenda results in an estimate of $2.28 per share. Again this does not include REE’s, other properties, or commodity price increases, but also does not include the impact of the recent global downturn for junior mining companies. Even if only a portion of this valuation comes to fruition short term, with the stock trading for pennies, the potential is enormous. Long term, this estimate is conservative!

10. The major downside risk to this company according to Scott Keevil is a commodity price collapse for niobium, which given the recent price increases, and the continued need for steel, batteries, and gadgets, is not very likely. In 2008, niobium prices increased from $26 to $32. Even with the global downturn and drop in the prices of many commodities including steel, the demand and price of niobium remains strong, per a recent (November 2008) Mining Weekly article (http://www.miningweekly.com/article.php?a_id=147010). Scott Keevil has indicated that even with a significant price decrease, there was plenty of profit to be made. Extraction costs are estimated at 35% - 40%. They have a “world class asset” which will be verified (not if, but when), and the only possible downside is a collapse in niobium prices!


In May 2008, SRSR spiked to .09 a share. SRSR is currently trading around .01 per share. Incredibly, since the Hawk report came out, verifying the mineral resources, the stock has mostly drifted lower. Now that drilling has been arranged, perhaps only a short window of enormous opportunity remains!

BOTTOM LINE: A company with billions in reserves and stellar management very concerned about shareholder value is mostly under the radar and making all the right moves! Truly a retirement investment opportunity! Watch for drilling test results, NI 43-101 compliance, audited financials, uplisting, extraction plans, and other positive management surprises!

For more information, visit the ibox and the project website http://nemegosenda.sarissaresources.com/.

- OntaREEo
November, 2008