Fabled Silver Gold Corp T.FCO

PG''s comments on BFS

[broacher]

This is from Peter Grandich's website this morning. I'm not a subscriber. It was from his free website. https://www.grandich.com/GL.htm Formation Capital (FCO-TSE $.66) announced the completion of a feasibility study on their Ram deposit, which is part of their Idaho Cobalt Project (ICP). The headline stated that the “Feasibility Study Signals Green Light for Idaho Cobalt Project.” The study was commissioned to determine the feasibility of producing very high purity cobalt metal known as super alloy grade. The results of the feasibility study were positive and the engineering firm that produced the study recommended continuing development. Successful implementation of the project can make Formation Capital the largest integrated producer of super alloy grade cobalt metal in the western hemisphere and the second largest in the world. More interesting to subscribers in the USA is that it will be the only cobalt producer in America and the US aerospace industry is the largest consumer of super alloy cobalt in the world. • The study results indicate attractive rates of return that range between 16.52% and 33.04% (depending on the cobalt price, current metal prices return a 38.02% IRR). • The 10-year mine life base case shows average Net Cash Flow of $34,162,100 per year. • Total estimated costs to construct and commission both the mine and hydrometallurgical refinery are $138.7 million. The report outlined several significant opportunities to even improve the economics by expansion of the geologic resources and through product marketing and metals production. Due to NI 43 - 101 reporting requirements, the current study sends over 81,000 tons of mined inferred mineralized material, which is surrounded by ore reserves, to the waste disposal facility and included none of the inferred resources that total over 1.1 million tons. As is common in underground mines, additional drilling from underground stations may allow for this material to be reclassified as ore, adding years of additional production. There is excellent potential to expand the Ram proven and probable ore reserves Copyright 2007, Grandich Publications, LLC., Peter Grandich • Phone [phone] www.Grandich.com August 1, 2007 Page 3 The Grandich Letter with additional drilling in the inferred zones (not included in the study) and stepout drilling. The Ram ore body remains open to the north, south and to depth. There is good potential to expand the proven and probable ore reserve through continued exploration of two additional deposits, Sunshine and East Sunshine, which are being permitted for production but were also not included in this study. If that is not enough geological upside, there are 15 other identified Greenfield targets on the property that remain to be explored. Other opportunities identified include recovery of gold and potentially rare earth elements and the addition of revenue streams from production of by-products from the cobalt refinery such as saleable zinc residues, magnesium sulfate products (epsom salts) and a nickel hydroxide product. The Company is pleased with the study and intends to proceed with development. The Company has started detailed engineering work and is ordering long-lead equipment for the project.