INTERESTING ARTICLE FROM M PARTNERS !! RESEARCH FLASH Progress From The 2015 Kombat Drill Program Impact: Directionally Positive Kombat Copper Inc. (KBT - TSXV, $0.10 | Not Rated) announced an update from its 2,000m surface drill program at the Kombat Mine property located in Namibia. The company reports 17 holes have been completed to date and that core logging and sampling are ongoing. Samples from five initial holes have been sent to the lab and results are anticipated in a few weeks. As seen in Figure 1, drilling is targeting a strike length of 1,500m between the #1 and #3 shafts where management believes there to be positive indications for near-surface copper mineralization. The drill program is designed to support an open pit mining scenario. The company noted it is likely to require a second phase of drilling to define a compliant resource. Considering the company’s current value and existing infrastructure, drill results suggesting resource growth are likely to benefit Kombat’s share price. Previously unreleased holes come with impressive near-surface grades. The company also announced the results of two previously unreleased holes drilled by the previous management team from the east of #3 shaft. Highlights include hole AE109A-12, which returned 2.81% Cu and 53.3 g/t Ag over 6.8m and 2.51% Cu and 15.54 g/t Ag over 6.3m. Figure 1: Longitudinal Section of the Kombat Mine Identifying Areas Being Drilled Source: Company Reports Valuation not reflective of existing infrastructure or exploration upside. The multiple ways to bring the Kombat Mine back into production do not appear to be reflected in the $11.5MM market cap. As the production scenario becomes clearer through resource growth and the start-up is de-risked, the share price is likely to reflect the potential of the assets. It is worth noting that the estimated scrap value of the existing surface infrastructure is ~$30MM, above the current market cap. Analyst: Derek Macpherson, P. Eng, MBA 416.603.7381 x261 dm@mpartners.ca