Sarissa Resources Inc (SRSR)

[OntaREEo]

SRSR 101 for freshman: (Spring 2009 session)

Learn these 3 words and 4 letters: Sarissa – Keevil – Nemegosenda – SRSR

They add up to billions in minerals for a stock that is still trading for pennies!

TOP TEN REASONS FOR YOU TO OWN SARISSA – NOW!

1. Sarissa Resources (SRSR) is a junior mineral exploration company with strong potential to grow into a mining company. SRSR is still way under the radar affording you the chance to get in at a fantastic price!

2. CEO Scott Keevil is from mining royalty. Scott came on board December 1, 2007 and 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. His experience, connections, and compensation structure can only add up to huge increases in shareholder value for himself, and you!

3. Nemegosenda (near Chapleau, Ontario), the primary property under Scott’s focus, already held great promise as a Dominion Gulf study from 1956 indicated niobium, tantalum, and REEs on the property. Sarissa has completed the purchase of 7 patented mining claims comprising 5000 acres and including under the lake. Last spring, Sarissa released an independent geologist report from Hawk Engineering that verified the Gulf study, confirming at least $5 billion in niobium in the D zone, and describing it as a “world-class asset.” More recently, the company quantified the potential niobium in the SE Zone as being worth close to $25 billion. $5 billion in minerals is huge, and we are very likely talking about $30 billion!

4. Ultimately, the company needs to document compliant reserves, known as the NI43-101 standard. Since the old physical core samples were lost, Sarissa needs to drill new core samples and the first phase of 9 holes is underway. In most mining resource plays, these drilling and lab test steps can lead to very uncertain results, but with the Gulf data, these steps are mostly a formality. 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 NI43-101 inferred compliant resource report is expected any week now. 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. 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. 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 – a first rate team!

7. Sarissa’s exposure is currently limited as an OTC stock. The company will be taking steps to uplist to an exchange where it will have more credibility, as well as access to more and larger investors. They have published unaudited financials through September 2008. Drilling is the current priority, but it is expected that the company will pursue this aspect of the business soon after the compliant report is out. The company has 850M A/S, 746M O/S, with 270M 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. The last two are more likely, and better for shareholder value. (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 provide the resources for Sarissa to extract the minerals.) The company is obviously developing these options and once the compliant report is out, 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 resources is dependent on the total resources available, the price of these elements, and the percentage put on these mining companies. From an historical study of junior exploration companies in the 1990's, the average valuation for the mid-level of compliance (measured resource) was about 17%. For inferred (as we are expecting this phase) it was around 10%. In this more difficult economy, a 1% to 5% range has been suggested. For example, with a $5B resource valuation (value of the niobium in the ground) and if the market grants 3% of that in the stock price now, you would calculate ($5B x .03)/740M shares = $0.20 per share. As more resource becomes compliant and to a higher level, the numbers in that calculation will increase, all the way to dollarland.
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 information, and the continued need for steel, batteries, and gadgets, is not very likely. In 2008, niobium prices increased from $26 to $32, and was more recently $18-$22. Scott 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 soon, and the only possible downside is a collapse in niobium prices!

In May 2008, SRSR spiked to .09 a share. Incredibly, SRSR then drifted to below .01 per share over the next 6 months. It rose to .04 in late 2008 but again drifted lower. With the anticipation of the compliant report, perhaps only a short window of enormous opportunity remains!

BOTTOM LINE: A company with billions in resources and stellar management and under the radar is making all the right moves to develop this property! Truly a retirement investment opportunity! Watch for more core sample results, NI 43-101 compliance, audited financials, uplisting, a JV announcement, and other positive management surprises!

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

- OntaREEo
Closed December 2008 at .028.