bSummary/bbrbr
Balkan is exploring the previously mined Perlati copper deposit in
Albania and the Devolli JV with European Nickel. Perlati contains a
historic, non#8209;NI 43-101-compliant mineral resource of just under three
million tonnes, averaging 2.45 percent copper. The company is working
to a listing on the TSX Venture Exchange.
pBKey points:/BBRBRul
pli type=squarebOur assessment yields a core base-case valuation of C$0.29/bbr

We assess Balkan Resources’ current value at C$0.29 per share, with significant

potential for appreciation with exploration success. Continued development

suggests valuations as high as C$1.16 per share in the post#8209;ermitting

environment under more optimistic scenarios.

pli type=squarebBalkan is conducting advanced exploration on the Devolli Project/bbr

Balkan Resources has commenced a series of confirmation drill holes on

the Kokogllave property this year and assays from the first tests are positive.

European Nickel completed 9,257 metres of diamond drilling to complete their

JORC-compliant report on the Devolli portion of the project. The company has

embarked on a prefeasibility study that includes completing 44,000 metres of

drilling, which should …

bSummary/bbrbr
Balkan is exploring the previously mined Perlati copper deposit in
Albania and the Devolli JV with European Nickel. Perlati contains a
historic, non#8209;NI 43-101-compliant mineral resource of just under three
million tonnes, averaging 2.45 percent copper. The company is working
to a listing on the TSX Venture Exchange.
pBKey points:/BBRBRul
pli type=squarebOur assessment yields a core base-case valuation of C$0.29/bbr

We assess Balkan Resources’ current value at C$0.29 per share, with significant

potential for appreciation with exploration success. Continued development

suggests valuations as high as C$1.16 per share in the post#8209;ermitting

environment under more optimistic scenarios.

pli type=squarebBalkan is conducting advanced exploration on the Devolli Project/bbr

Balkan Resources has commenced a series of confirmation drill holes on

the Kokogllave property this year and assays from the first tests are positive.

European Nickel completed 9,257 metres of diamond drilling to complete their

JORC-compliant report on the Devolli portion of the project. The company has

embarked on a prefeasibility study that includes completing 44,000 metres of

drilling, which should …

bReason for comment/bbrbr On 10 September 2009, the company provided details of four new Manufacturer’s Representatives added to its sales organization, some operational detail and further information on its financing intentions. pThe new territories with representatives in parentheses are: Washington DC, Virginia (Energy Advanced); Southern New York State (Accardi Companies); Connecticut (Analytics Combustion Services); and Kansas, Iowa and Missouri (Hughes Machinery Equipment). pManagement notes that the rep training programme has been enhanced and that the three day programme in August with Canromex, its new Mexican rep, was a success. pSofame also disclosed that it had “approved a private placement of equity securities up to C$2m Canadian Dollars to accredited investors resident in Canada and elsewhere”. This is in addition to the debt financing agreement with Township Capital previously announced for a like C$2m. pThe press release goes on to state that Sofame is involved in discussions with several potential lenders ...

bSummary/bbrbr Scancell is developing a product platform that uniquely stimulates the immune system to treat disease. The corporate strategy is simple – spend the next two years conducting “proof of concept” studies in melanoma patients, run animal trials in parallel targeting angiogenesis to confirm it as a platform technology, and then sell off the technology to the highest bidder. To use a baseball analogy, Scancell is heading to the plate and swinging for the fences. With a differentiated technology and a focused plan, we think this Company has what it takes to circle the bases. pBKey points:/BBRBRul pli type=squarebA high risk, high reward proposition/bbr As history has shown, the path to market for therapeutic cancer vaccines is not going to be an easy one. Many bodies litter the road and the science is still very much evolving, but to the winners go the spoils. Using a conservative set of assumptions and a heavily discounted valuation methodology, we still derived a base case value for Scancell ...

bReason for comment/bbrbr A letter of intent has been signed between Sofame and Township Capital, for bridging loans in the sum of between C$1m and C$2m in order to fund current working capital needs and to support its continuing sales and marketing initiatives. pAs predicted in our most recent company update, Sofame will need further finance if it is to meet its working capital requirements and sales projections. As an interim measure, this may provide a bridge while evaluating other medium term finance options. pWe understand that the cost will be a 10% arrangement fee of the capital sum, with interest set at 15% per annum. pBObjective's view:/BBRBR pThe extra capital is now essential for the company, if it is to capitalize on its project pipeline, in whatever form it takes – be it bridging finance, or conceivably, a trade partner taking a majority stake in an enlarged business. pUntil ...

bSummary/bbrbr Sofame has embarked on an ambitious strategy of expanding its manufacturing representative base (SMR) while investing in the infrastructure to support a much larger volume of business than it currently enjoys. Booked revenues this year have been extremely disappointing, although the latest sales for 3Q09 were encouraging; the company has been hit by the severe downturn in the capital goods cycle not helped by its own inability to close deals. Sofame has moved to remedy these issues by supporting its SMRs with its own technical personnel in a co-selling role in order to achieve quicker and higher closing rates. Its ‘project pipeline’ while very large, is lumpy and subject to innumerable vagaries/delays, it therefore lacks earnings visibility; this makes quarterly forecasts of the company’s performance extremely tricky. With actual financial 2009 revenues looking to dip below our ‘pessimistic’ scenario made last October and costs significantly above those anticipated, we have materially lowered our core valuation. pBKey points:/BBRBRul pli type=squareb“Do ya’ deliver?”/bbr In terms of valuation, the ...

bSummary/bbrbr Soho’s series of aggressive drill programmes at Tahuehueto in northwestern Price chart (C$) Mexico have allowed the company to revise its NI 43-101-compliant mineral resource estimates for the polymetallic deposit, resulting in a substantial upgrade of the total resource. For the coming year, Soho will focus on completing a preliminary economic assessment of the project. pMeanwhile, the company has just added a new silver project, Jocuixtita, in Mexico. Although developing Tahuehueto remains the company’s priority, the Jocuixtita property will be the exploration focus this year as Soho continues to conserve its capital. Our revised model yields a valuation of C$0.35 per share, compared with C$0.27 as outlined in our update of July, 2008. The revised valuation, which is significantly higher than the current market price, is a reflection of our gathering confidence in the Tahuehueto project following the resource upgrade. pBKey points:/BBRBRul pli type=squarebConfirmed valuation more robust on gathering confidence/bbr Our ...

bReason for comment/bbrbr The company has announced the confirmation of two important orders. First, the sale of a Percotherm(TM) to a leading US food processor to improve boiler efficiency at the Hershey's facility in Robinson, Illinois. Secondly, through its manufacturing representative, Tozour Energy Systems, a turn-key solution to bring the boiler plant at the hospital campus in Trenton, New Jersey to higher energy efficiency levels. pBObjective's view:/BBRBR pThe confirmation of new orders was already in our current valuation and points the way to the pending 2Q09 results. We have noted before about reading too much into a single quarter; the lead cycle from enquiry to firm order in this business is indeed, a tortuous one. BRBR For all our previous comments on this company visit: A href=http://www.objectivecapital.co.uk/SDW.V.asphttp://www.objectivecapital.co.uk/SDW.V.asp/a

bReason for comment/bbrbr Sofame has announced changes to its management team. Michael Brisson has assumed the role of President and Chief Executive Officer, to focus on building out the Sofame direct sales team and distributor network. Concurrently, John Gocek, has taken up the newly-created position of Chief Operating Officer with the objective of strengthening Sofame's manufacturing operations, market position and engineering capabilities. PWhilst John Gocek resigned as a member of the Board of Directors, the Board decided not to fill the vacancy created, until it has found a suitable independent director. Michael Brisson would not be joining the Board of Directors. POn 30th April, Sofame also announced the appointment of two high level sales personnel, John Olson and Robert Aldridge, in order to actively promote Sofame’s turn-key financed energy efficiency solutions. pBObjective's view:/BBRBR pBroadly we view the management changes as positive for the company and also in line with ...

bReason for comment/bbrbr Sofame has announce that it has appointed Desjardins Securities as lead agent for a prospectus offering of common shares for gross proceeds of up to C$5.0m. The shares will make ‘qualified investments’ under the province of Québec's recently-implemented Quebec Stock Savings Plan II (REA II). As an accredited company, any local investor who subscribes to the issue will be entitled to a 150% allowance against their income taxes pSofame will use the net proceeds from the offering to intensify marketing activities, hire sales and engineering staff, for working capital and general corporate purposes. Pricing of the shares will be fixed at a later date. pEarlier in the month Sofame announced it had also decided to extend the life of 5,776,410 existing warrants, exercisable at C$0.25, until December 2012 and 3,580,566 existing warrants, exercisable at C$0.50, until April 2013. pBObjective's view:/BBRBR pThe capital raising of up to C$5.00m ...