RCR’s Equity Research Report: Junior and Mid Tier Gold Companies December 18, 2009

Resource Capital Research (“RCR”), an equity research company which focuses on small and mid size resource companies, today launched its major quarterly research report covering 16 gold exploration and development companies.

To access the free summary of the gold report or to purchase the 66 page comprehensive report, go to www.rcresearch.com.au/reports.

RCR also publishes a quarterly Uranium Sector Review, Iron Ore Company Review and a Tin & Tungsten Company Review.

KEY POINTS

Gold Market:
• Gold surged 18% in November to a record high of US$1,215.70/oz on 2 December.
• It came back rapidly when the US dollar strengthened modestly after positive jobs data. Currently it has eased to just over US$1,100/oz.
• The driving force for gold’s surge seemed to be the growing perception (inspired by a transfer of gold from the IMF to the Indian central bank) that the US dollar is ‘dead’ and central banks are deserting it and buying gold to protect their foreign reserves.
• This is not a realistic proposition; the world does not produce enough gold to allow it.
• The US dollar’s liquidity is its key to it continuing to be the world’s primary store of value, and is likely to find stability in the short-medium term, despite concerns over the US budget deficit and inflation (which is not yet on the horizon).
• Demand for gold-backed Exchange Traded Funds (ETFs) has been weak in the last two months, which suggests that fundamentals have not been driving gold’s volatility.
• We expect trading in the US$1,000/oz to US$1,100 oz band in the next six months, with more risk on the downside rather than the upside.

Gold Equities:
• Gold shares have under-performed in the last month despite the headlines for gold.
• But the junior companies (emerging explorers) have generally out-performed strongly in the last 12 months, with money flowing into the sector.

Click here to view the Media Release.

For further information, please contact:

Tony Parry, Senior Gold Analyst, +61 (0) 417 965 026
tonyparry@rcresearch.com.au

John Wilson, Managing Director, +61 2 9252 9405
johnwilson@rcresearch.com.au