Blackthorn Resources - Post Glencore Deal Valuation of US$152m

Research Report From Edison Investment Research

LONDON, October 26, 2010 - Following a comprehensive due diligence exercise and detailed
negotiations, Australian mining company Blackthorn Resources (ASX: BTR) has
signed a binding agreement with Glencore to form a JV for the Perkoa zinc
project in Burkina Faso. Glencore is paying US$50m for 50.1% of the project
and providing a further US$30m in project finance. The Glencore agreement
supports Edison's assumption that Perkoa will be commissioned and producing
concentrate by Q212. In addition, Blackthorn Resources has completed the
first phase of exploration drilling for gold and expects to announce a JORC
code compliant mineral resource by the end of the year. In Zambia the fourth
phase of drilling has confirmed additional copper mineralisation at the
company's Mumbwa JV copper and gold project, consistent with an IOCG-type
interpretation of the geology.

Edison's combined valuation of Blackthorn is US$152m (A$154m) or A$1.44
per share with c 107m shares in issue. This is based on a long-term zinc
price of US$3,000/t and an exchange rate of US$0.985/A$. The valuation will
increase if the company announces a gold resource in Burkina Faso.

Please click here to view the full report:
tiny.cc/Edison-Blackthorn

Blackthorn Resources is an Australian exploration company with gold and
zinc projects in Burkina Faso and a copper/gold project in Zambia. By
focusing on priority projects, it aims to become a self-funding exploration
and mining company.

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    Contact details: Charles Gibson
    enquiries@edisoninvestmentresearch.co.uk
    +44(0)20-3077-5700

Contact details: Charles Gibson, enquiries at edisoninvestmentresearch.co.uk, +44(0)20-3077-5700