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THE CRITICAL INVESTOR NEWSLETTER #005

Dear subscriber,

It was a turbulent week for Nemaska Lithium and Wealth Minerals, two sponsoring companies. Nemaska suffered from extensive profit taking, and maybe even some added old fashioned dumping by parties interested in an upcoming financing to go with that, as Nemaska disclosed on Friday that a $50M placement is coming up. As no price or terms were mentioned, the market reacted a bit too nervous in my opinion. Nemaska really needs a solid treasury at this stage, and 12-14% dilution, hopefully without full warrants, wouldn't be an issue in my view. I'm curious what the final terms will be. Besides this, the company also announced their application for an uplisting to the TSX, which indicates much larger exposure to institutional interest, which in turn will most likely enhance liquidity.

Wealth Minerals sold off on a partial sell recommendation by an influential German newsletter ("Gunther Goldherz"). I expect this to end soon, and as according to management talks in LatAm are progressing well, we could be in for some serious catalysts this summer.

Besides all this, I am happy to initiate coverage on a new sponsor: a copper developer of which I have known project and management for several years: Excelsior Mining. After the gamechanging acquisition of the Johnson Mining Camp, capex has been reduced drastically, which in turn will lower economic risks significantly for financiers. Until now, high capex, a low copper price and perceived permitting risks are holding the share price down, as MIN.V trades at a fraction of NPV (market cap of C$54.02M, after-tax NPV7.5 of $563M based on copper @ $2.00/lb). Management is confident in achieving their permits by Q2 2017, and if they are right, Excelsior has multi-bagger potential.

This is a link to the article:

Why Excelsior Mining's Perceived Permitting Risks Could Be Unwarranted

Executive summary

Excelsior Mining owns the unique Gunnison in situ recovery (ISR) copper project in Arizona, and has strong financial backers
The Gunnison project isn't just the only advanced standalone ISR copper project owned by a junior, but it also has the best economics of any undeveloped copper project worldwide
The recently updated PFS indicated excellent figures at just $2.00/lbs copper: an after-tax NPV7.5 of $563M and an after tax IRR of 26.2%
The company performed lots of testing to solidify those figures
Excelsior doesn't seem to risk the same local opposition regarding permitting issues as former nearby competitor Curis did on Florence, but it has suffered from longtime negative perceptions on its UIC/APP permitting procedures
I will discuss why these perceptions could be unwarranted.
Trying to limit myself bit by bit on the length of my analysis, to make reading slightly more convenient.

Thanks for your interest,

Regards,

The Critical Investor

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