Trelawney Mining and Exploration Inc TWNNF

RE: RE: RE: RE: RE: Mexico

[Stedvard]

I agree with that for the most part. I think the share price here on NES is providing an opportunity to get in ahead of that re-valuation when a buy-out offer comes or a 43-101 comes in the H2 of 2012. The fact that Tony Hayes of EuroPac has put out a report stating he expects 9 million ounces of gold at Ana Paula puts a conservative floor on the amount of ounces they'll end up showing the market being at least 5 million ounces. I've done my own math and come to the same conclusions as currently 20% of their deposit holds a resource in excess of 2.5 million ounces at 3.0 g/t + au, with a low grade halo of mineralization surrounding the breccia with current potential for roughly 3 million ounces of lower grade gold and high-grade silver. In my opinion, comparing the deposits to eachother I believe Ana Paula is pretty much comparable to Cote Lake with the current dimensions of each deposit but I will admit TRR's grades are superior. Giving credit for the silver grades with the gold at Ana Paula I think NES and TRR's low grade bulk tonnage comes in at pretty much the same level around 1.0 g/t au.The game changer for Ana Paula is the super high-grade breccia which adds considerable ounces to the deposit. Both deposits have great potential but I feel valuing NES currently at $50 / oz for ounces that will be worth at least double on receipt of a 43-101 is very conservative and an attractive valuation at these levels. TRR certainly deserves a premium for Ontario ounces vs. Guerrero ounces but NES off-sets a portion of that discount for their higher grade ounces.