Birch Hill Gold Corp. FNTRF

FDN Comparison

[pmrider]

Comparison to peers can be a great tool for evaluating the worth of a jr. exploration company.  FDN will be coming out with a 43-101 in the near future, at which point we will have a good yardstick to measure our worth.  Ontario is a prolific mining district and there is a host of jr. exploration companies with 43-101 compliant resources that can be used to establish a baseline value.  At present, FDN has been given no valuation for the Coldstream resource.  Here is a list of 9 exploration companies in Ontario/Quebec that can used for valuation purposes:

Exploration Company	Shares (mm)	SP (06/08/11)	Market Cap	Ounces MM	Per Ounce	Grade	Fdn @ 1mm AU
MAO - MAUDORE	22.7	5.99	135,973,000.00	1.2120	112.19	3.2-6.8	2.04
MOK - MOSS LAKE	45.1	0.33	14,883,000.00	1.3600	10.94	1.12	0.20
GRC - GOLDSTONE	104.6	0.7	73,220,000.00	1.8800	38.95	2.4-5.7	0.71
ME - MONETA	143	0.26	37,180,000.00	0.5170	71.91	1.12	1.31
PKL - PC GOLD	66.5	0.71	47,215,000.00	1.2600	37.47	5.4	0.68
GWA - GO WEST GOLD	97.7	0.3	29,310,000.00	0.5100	57.47	1	1.04
NGM - NORTHERN GOLD	102.6	0.45	46,170,000.00	0.9835	46.94	1.2-4.93	0.85
TME - TEMEX	107.8	0.36	38,808,000.00	1.2160	31.91	1.2	0.58
TRR - TRELAWNEY	138	3.93	542,340,000.00	4.2200	128.52	1	2.34
Combined Market Cap			965,099,000.00	13.1585	73.34		1.33
1) All explorers are located in Ontario (except MAO located in Quebec)
2) Ounces MM is based on 43-101 compliant resource of Measured/Indicated/Inferred
3) Grades that specify a range are in gpt and represent an open pit resource and underground resource
4) Moss lake is the closest deposit, but is difficult to determine true value as Wesdome owns 56% and stock has no liquidity
5) FDN @ 1mm AU Ounces anticipates the value once a 43-101 is filed.  It represents our share (60% of the 1mm ounces) and
uses the metrics applied to the associated Exploration Company.

Of particular interest, is the valuation assigned to Moss Lake our nearest neighbour.  It trades sporadically and is controlled by Wesdome mines and probably does not reflect the true value of the resource.  On the other end of the spectrum is Trelawney that has a value per ounce of $128.52.  It is clear established as a miner and resources of greater than 2mm ounces and commands a higher valuation.

One wonders if we should find a way to combine forces with Moss Lake to command the Trelawney type valuations (just thinking out loud).  Such an entity would ultimately have 3.5-4mm ounces at approximately the same grade as Trelawney.  Might be a way to unlock the value of FDN.