Argex Titanium Inc. ARGEF

Ubika Research (June 7, 2012)

[Clint007]

Ubika Model Price (UMP)

$3.30

Ubika Rating

Undervalued

Risk

High

Price

.70

Gap to UMP

371%

52 Week Range

.33 -$1.25

Share O/S

109.9 Million

Market Capitalization

$76.9 Million

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The company is currently working to scale up the production with an expanded pilot plant to 10 kg/day by the end of June. The goal of this production increase is not to test the scale up capability (as RGX is confident about the scalability) but to produce enough Ti02 to supply to prospective customers and to help them test and conform the customers processes to the Ti02 produced by Argex’s plant.

v? The results of the sensitivity analysis and the increased output from the process refinements gives us reasonable confidence that the company has developed a good understanding of the process to successfully execute the scale up of the pilot plant.

v? We reiterate that the Argex process uses easily available equipment that is used today in processing other materials like Uranium. Their success in scaling up the pilot production to 3kg/day from 0.3 kg/day is a good first step in improving their understanding and communicating to the markets the robustness of their proprietary CTL process. The PPG relationship gives us a higher degree of confidence that Argex is likely to have the support of the industry and a ready customer base for its product once it achieves full-scale production.