SPECULATIVE BUY

?

Alecto Minerals

Event

Alecto Minerals has released the latest trenching, geophysics, and geological mapping results it has conducted during the 2H�12 exploration campaign the Wayu Boda Gold Project in Ethiopia. It is located 82km to the south of MIDROC�s Lega Dembi gold mine and 24km south of the National Mining Corporations recent 17Moz �Dawa� discovery.

Comment

To date the work has focussed only on the three sets of artisanal workings in the northern section of the licence which stretch over a 2km strike. These workings target quartz vein swarms and larger individual quartz veins hosted in metavolcanics and occasionally pits target the host rock itself.

In total 14 trenches were dug over 928m and 853 samples taken, however the artisanal workings were far more widespread than first anticipated which hampered the results with trenches encountering worked out areas from which no samples were taken. Highlights include 14m @ 0.4 g/t Au including 3.6m @ 1.5g/t Au, 1.3m @ 4.9 g/t Au and 2m @ 1.1 g/t Au. Both the trenching results and evidence from the artisanal miners suggests the top few metres may be depleted due to surface leaching. To contend with this the artisanal miners dig shafts straight through the top few metres before branching out to extract material at greater depth.

Alecto also carried out Ground Magnetic surveys which have indicated that the project area is dominated by NW and NE trending structures with a northwards trending structure predating these. Further geological mapping and logging of the trenches also showed that the mineralisation was lithological controlled being associated with the granite/schists contacts. These results indicate that the entire license area is prospective and the Company now intends to expand the exploration area beyond the areas of artisanal mining. However, given the apparent depletion of gold close to surface, this would best be done through drilling. The Company will also consider the licence�s potential for alluvial deposits, with large seasonal drainages quite extensively worked by alluvial miners in many locations. The source of alluvial gold on the eastern side of the main ridge has yet to be identified and is unlikely to be the same as the gold worked in the main artisanal areas. Importantly the general drainage direction within the licence towards the north indicates that further sources gold are within the licence. The Company plans to release its exploration programme for 2013 at the appropriate time.

Recommendation

We maintain our SPECULATIVE BUY recommendation on Alecto Minerals.

Download the Alecto Minerals Flashnote here

For further information, please contact:

Research: +44 20 3463 5030

Sales: +44 20 3463 5050

www.fox-davies.com

Click here to view the Fox-Davies Research Disclaimer

2013 � Copyright Fox-Davies Capital. Member of The London Stock Exchange. Authorised and regulated by the FSA.