Zenyatta Ventures Ltd

Thanks Mark for bringing up my post from May 6th. Some people were discouraged that the share price was being held under $2 that morning but it was inevitable that we would move up on the completion of the flow sheet and the PEA being close. However, just as it seemed we would never get back over $2, others may now think we will never get over $3, $4 or $5 let alone $10 and $20+. This is the nature of the stock market, it takes pauses on the way up just long enough for investors to doubt themselves and maybe sell a few.

I posted before, the hardest part of this was holding sub $2 and without a flow sheet. This was the higher risk part. Now, we have a flow sheet, the market has confirmed this is a done deal and the PEA is now very close. This should now be the easy part where we can just sit back and watch our portfolio grow in value. However, human nature makes this easy process more complicated than it has to be. Some will think I need to trade this. Others will think I need to take money out along the way. Others will doubt themselves and the company, even after 2 years worth of due diligence. This is all normal!! The important thing is to stay grounded and have a plan and stick to your plan.

When the PEA comes out, and I have no doubt it is very close, I expect a pop, a fade and then a steady march towards 30% of the NPV. It may take a week or more for institutions or funds to jump in here post PEA and that is normal as they have to complete their due diligence. I remember when Noront hit hole 49. We were at 62 cents and I just bought all the shares I could to 70 cents and then...nothing! We drifted back to 60 cents and sat there for a week. I questionned myself, was I wrong here, was I missing something...I held my shares and then it happened, 2 funds started to buy everything they could and moved the share price from 60 cents to $3 over the course of the next 3 weeks. That is what I expect to see with ZEN but with a bigger pop on the news and a move towards 30% of NPV.

What I like the most once the PEA is out is the costs are there for everyone to see: Miners, end users, funds and institutions! The selling price used in the PEA will be conservative, we all know that, it is the nature of the beast. However, even with a very conservative approach, RPA will not be able to push the NPV under $1B, that would be $5 per share at 30%. At $1.5B, the share price should drift to $7.50 after a few weeks to a month or 2.

However, the biggest thing about having the costs out for everyone to see is that end users will be able to calculate what it would cost for them to produce their own ultra high purity graphite. Image you are Tesla and currently paying $14k per ton blended price using a combination of flake graphite and synthetic graphite. Now, RPA says ZEN can produce ultra high purity graphite for $2000 per ton. Tesla calculates that it could by us out for $1500 per ton and with Capex still be at $4000 per ton, a net saving of $10,000 per ton for the next 30 to 50 years!! They have to act quickly though, because others, 25-30 others will be thinking the same thing.

This is why I believe once the PEA is out, the buyout annoucement could come any day. This unique deposit will be a king maker and for that reason, will fetch top dollars!

By the way, the $1500 per ton to buy us out is $35 USD per share!

G.