Goldrush Resources Ltd. (TSXV: GOD) – Initiating Coverage; Gold ...

Goldrush Resources Ltd (TSXV: GOD) – Initiating Coverage Page 16CompanySYMEV /Resources1 Golden Band Resources Inc. TSXV: GBN $118.92 Sona Resources Corporation TSXV: SYS $115.63 Silverado Gold Mines Ltd. OTCBB: SLGLF $62.14 Sutter Gold Mining Inc. TSXV: SGM $53.05 Goldrush Resources TSXV: GOD $50.16 NioGold Mining Corporation TSXV: NOX $33.37 Crown Gold Coporation TSXV: CWM $17.0Average EV / Resources ($/oz) $64.3RatingFair value $0.30* Resources include all measured and indicated, and half of inferred and historical resourcesTherefore, based on our three valuation models, we arrived at a fair value of $0.38 pershare.Valuation SummaryDCF $0.40Real Options $0.45Comparables $0.30Average $0.38The following table shows the sensitivity of our valuation to changes in gold price anddiscount rate assumptions.Valuation Sensitivity Discount Rate (%)0.381056854 5.0% 11.5% 15.0%$600 $0.14 $0.11 $0.10$700 $0.27 $0.19 $0.16$800 $0.41 $0.28 $0.24Gold Price $900 $0.55 $0.38 $0.32(US$/oz) $1,000 $0.69 $0.48 $0.40$1,100 $0.83 $0.58 $0.48$1,200 $0.97 $0.67 $0.56$1,300 $1.11 $0.77 $0.64RisksWe initiate coverage on Goldrush with a BUY rating and fair value of $0.40 pershare.The following risks, though not exhaustive, may cause our estimates to differ from actualresults:• The value of the company is dependent on commodity prices.• Access to capital and share dilution.© 2010 Fundamental Research Corp. www.researchfrc.com Siddharth Rajeev, B.Tech, MBA, CFAPLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT