Kryso is an emerging mineral exploration company that is principally focussed on exploring the gold and other precious metals deposits previously discovered in Central Asia during the Soviet Union era and then, where appropriate, bringing them into production.
Kryso, which has its head office in London, is a public company that was admitted to the AIM in December 2004 in order to continue funding the development of the Pakrut Gold Deposit, further explore the Pakrut Licence Area and to obtain and acquire other gold and base metal deposits in Tajikistan and elsewhere in Central Asia. The Group's executive directors and senior management are based in Dushanbe.

The Company's executive directors have a proven track record of operating in Tajikistan and they believe that Kryso Resources is the first foreign company to obtain a 100% interest in a mining and exploration project in the country.

From 1 April 2004, LLC Pakrut, a wholly owned subsidiary of the Company, was granted a licence and geological lease to explore and exploit the Pakrut Licence Area which comprises the Pakrut gold deposit and the surrounding 6,300 hectare exploration area located in the metalliferous southern Tien-Shan Fold Belt. This belt is reputed to have the second largest known gold resource after the Witwatersrand in South Africa.

The Group intends to conduct a feasibility study to assess whether the Pakrut gold deposit can be developed into a producing mine and also intends to explore the already identified mineral deposits and areas of mineralization in the Pakrut Licence Area.

Kryso raises resource estimate at Pakrut gold project to 1.06 mln ounces

LONDON (Thomson Financial) - Kryso Resources PLC said the resource estimate at the Pakrut gold project in Tajikistan now stands at 1.06 mln ounces at a cut-off grade of 0.5 gram per tonne.

The company said the new estimate is about 77 pct higher on the original resource statement given in March this year.

Managing director Vassilios Carellas said Kryso has numerous additional drill targets and expects to increase the resource substantially in the future.

11 December 2007

Kryso Resources plc

(`Kryso' or `the Company')

AIM: KYS

Geophysical Results from Hukas Nickel-Copper Project in Tajikistan

* Three geophysical anomalies outlined at Hukas by TEM survey one of which is
approximately one kilometre in strike length

* Drill testing of the anomalies planned for next year

Kryso Resources plc, the mineral exploration and development company with over
1 million ounces of JORC code compliant gold resource at its Pakrut gold
project in Tajikistan is pleased to announce that LOGANTEK, a geophysical
services company primarily active in Asia, has reported the results of the TEM
geophysical survey, which was recently completed at the Company's Hukas
nickel-copper project in Tajikistan.

The results of the survey indicate three anomalies located in gabbro-noritic
rocks. The Hukas area was previously investigated by the Soviets, who
discovered several occurrences of nickel-copper mineralization. One small
exposed mineralized lens returned average grades of 2.86% nickel, 1.26% copper,
0.83% cobalt and 2.3g/t PGM from surface trenching and two drill holes.

The TEM survey, consisted of 22 kilometres of fixed-loop surveying from which
the three significant TEM conductivity anomalies were identified.

The anomalies conform to the strike and dip of gabbro-norites, which are known
to host the nickel sulphide mineralization in the area. An extensive anomaly
was identified close to the Hukas Stream, and two more at the Mandara Stream,
located a few kilometres to the north within the Company's licensed exploration
area.

The Hukas Stream anomaly strikes in a north-easterly direction with a length of
one kilometre and is still open to the north. The depth below the surface at
which the anomaly occurs varies between 60m and 100m and dips to the east; its
width is up to 50m. The depth extension is over 200m, and is still open.

The two Mandara Stream anomalies strike in a north-easterly direction for 300m
and are open along strike. Both anomalies start from between 60m to 100m below
surface and dip in an easterly direction.

Kryso Resources' Managing Director Vassilios Carellas, comments:

`The results of the TEM survey have exceeded the Company's expectations and are
now being used to plan a drill programme to investigate these anomalies next
year. The survey forms an important first step in what will be a comprehensive
exploration programme at Hukas, which we believe has great potential to host an
economic deposit. There is currently a local Geological Expedition drill on
site with which we plan to begin drilling next spring. In addition Kryso is
looking to source one or two more rigs locally to assist with the drill
programme'

KRYSO RESOURCES (KYS LN), Mining-Tajikistan, Current Price: 13.75p, BUY target price: 0.42

BUY, target price 0.42

Analyst: Peter Rose


Event

Kryso Resources plc has reported the results of a transient electromagnetic (TEM) geophysical survey recently completed at the Company's 100%-owned Hukas nickel-copper project in central Tajikistan. The survey consisted 22 km of fixed-loop surveying. Three significant TEM conductivity anomalies were identified which conform to the strike and dip of gabbro-norites, the known host rocks to sulphide mineralization in the area. An extensive anomaly was identified close to the Hukas stream, and two more at the Mandara stream, located a few kilometres to the north within the Companys licensed exploration area


The main anomaly strikes in a north-easterly direction with a length of one kilometre and is still open to the north. The depth below the surface at which the anomaly occurs varies from between 60m to 100m and dips to the east. The width is up to 50m, but may be less depending on the conductivity of the anomaly. The depth extension is over 200m, and is still open. At Mandara, two zones have been modelled, striking in a north-easterly direction for 300m and are both open along strike. Both anomalies start from between 60m to 100m below surface and dip in an easterly direction.

The Hukas region was previously investigated by the Soviets, who discovered several occurrences of nickel-copper mineralization. One small exposed mineralized lens returned average grades of 2.86% nickel, 1.26% copper, 0.83% cobalt and 2.3g/t PGM from surface trenching and two drill holes. This lens is isolated and not within the main anomaly.

Implication

On the back of their continuing exploration success at the Pakrut gold project, Kryso are now widening their scope to include the Hukas nickel-copper project. The TEM survey results indicate a strong possibility for a large mineralised system within the licence area, missed by previous drilling. Since the anomalies are yet to be drilled by Kryso it is not possible to put them into an economic context. However, with known nickel-copper-cobalt-PGM mineralisation in the region it is certainly true that this represents an exciting new prospect. Should drilling confirm mineable widths and grades over the lateral extents implied by the anomalies, this project area could prove to contain a significant ore deposit and Krysos second major asset.



Valuation

This development does not impact our valuation of Kryso as the project is not included in our modelling at this stage.



Comment

We maintain our Buy rating for Kryso Resources with a target price of 0.42/share.



Fox-Davies Capital

http://www.proactiveinvestors.co.uk/articles/art.php?KYS2

Thanks for that aldwickk. Increased my holding in this share last week and really think it is due for a bit of attention. Do we know any reasons for the holdings reduction by RAB?

TIPSPrevious Tips
Kryso Resources: Speculative Buy at 13.75p
A tip from Tom Winnifrith of www.t1ps.com - 23/12/07

Evil is not always right about everything (Princess Anne, Regus, Stanelco, etc). But occassionally the old boy gets it very rights (Cherie Blair, Golden Prospect, Sanctuary etc). My tip today is for Evil the love that dare not speak its name. I refer not to that activity which EK says never happened at Rugby school. But to Kryso Resources which at 13.75p is very cheap. The stance is speculative buy at up to 18p with a target price of 36p.

Kryso Resources (KYS) has become a bit of a joke with myself and Evil. Evil was a director until he got into a spot of bother over the timing of some share trades and was forced by the Nomad to step down. My own view is that it is the Nomad who should have been made homeless not Evil but there you go. Evil is still a big fan but we need to tap into his deep understanding of the geology of the prospect to see why. This is a very simple story. Kryso has a proven resource at Pakrut in Tajikistan of 1.056,587 oz gold. There is still exploration upside at Pakrut and at 3 nearby staelitte deposits. My simplistic analysis is that at $75 oz for the resource and $7.5 for a massively risk weighted potential to double it via exploration Kryso is worth 36p a share on a fully diluted basis. That makes my stance speculative buy at up to 18p with a one year target price of 36p.

Pakrut
Pakrut is in Tajikistan. In Harry Potter political prisoners are sent to Azkaban and it strikes me that when Evil comes to power Tajikistan is the sort of place that Cherie Blair, Patricia Hewitt and others guilty of thought crime will find themselves sent to. But by the standards of the region it is politically stable and has an established fiscal and mining regime. I have put an additional 25% risk weighting in my model to allow for the fact that Tajikistan is not East Surrey.

Kryso floated in December 2004 specifically to exploit this asset which was fairly well defined by exploration activity during the Soviet era. Since the IPO the company has beavered away on exploration work and now has a resource of 1.056 million ounces. There is significant scope to increase that resource via additional exploration both at Pakrut and on neighbouring satellite sites. the company has a few other assets (notably the Hukas nickel copper project) but I propose to ignore them completely. What the City wants and what I want is not hope factor but the prospect of near term cashflow and production. That is what Pakrut offers.

Pakrut should be in production within 24 months. The company reckons that $50 million will build a mine with both open pit and underground operations producing 100,000 oz per annum for a decade. If I am correct about exploration upside then you can bump up both the annual output and projected minelife. Kryso has 1 million of cash so if one assumes that the mine can be 70% debt financed then it still has to raise 7.5 million in additional equity. I am confident that it will do so the issue is at what price.

Even on the 100,000 oz model then at a 25% discount to current gold prices this operation could be throwing off - on my calculations - c$40 million of free cashflow per annum. I would remind you that this is a company which - at 13.25p - is valued at just 11.7 million.

Upside Risks
I am a modest gold bull (still). The Governments of the West continue to print money to keep their voters happy. I have no faith that Cameron will be better than Blair, Clinton - or hopefully someone else - better than Bush or that whichever crooks run the EU nations will change their misguided ways. Global interest rates are coming down. So gold has to be a good bet. But as it happens with gold at $820 I use $600 in my forecasts as I am a cautious chap.

Kryso should be able to use the cash from Pakrut to develop other assets in Tajikistan. I do not factor this into my calculations.

There is real scope to grow the resource at Pakrut and also to generate additional rock from smaller nearby satellite deposits to use in a mill at Pakrut. I attribute a nominal value for this.

Downside Risks
The management could be knaves. This is after all mining. But I judge managing director Vasilios Carellas who is an experienced geologist to be a straight sort of guy as is the FD, New Zealander Craig Brown. On the ground the operations manager Abuali Ismatov is well connected and knows his stuff. So I do not view this as a big risk.

Kryso needs to raise 7.5 million of equity and 17.5 million of debt to get Pakrut into production. I am lead to believe that there is real confidence and strong indications of support but there is a risk this won't happen.

Any mine faces geological/operational risk.

Tajikistan is not east Surrey. I have discounted my valuation by 25% to reflect this. But as the 'stans go it is actually relatively stable.

Valuation
A valuation of $75 oz for the resource plus a nominal $7.5 million for the exploration upside would, if discounted by 25% to account for political risk, give a valuation of 36p per share on a fully diluted basis. Put another way such a valuation would leave Kryso valued at $62 million. Add in the assumed project cost of Pakrut and one would get an Enterprise Value of 112 million or less than three year's free cashflow on my base case assumption. I do not think my assumptions are reckless and at 13.75p Kryso is a "speculative buy" at up to 18p with a 36p target price.


Key Data
Market: AIM
EPIC: (KYS)
Spread: 13p - 14.5p (10.3%)

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The chances of KYS producing anything tangible in the next 5 years are less than winning the National Lottery. Avoid!

Why ? can you back up that statement with facts.

How long has it taken HMB to start production? CEY wont reach production for another year after all the necessary feasibility studies and raising the project finance.

I would stick to producing mines like GFM if i was you then, but you would have to pay more then the 15p i paid for them when they were years away from producing.

As you know KYS is being punted by TW and EK on T1ps and sharecrazy.com the spread is enough to drive a bus through at least if you buy a lottery ticket you wont have to wait years for the result!!

The odds on blackjack and bingo are better then the lottery and the pools.

break out territory

RAB selling their shares in KYS came at just the right time with the gold price rocketing now.

Off topic, I can never understand how RAB works, those people are experts in their field but selling KYS and buying Northern Rock, alright different funds I suppose, but still the same.

anyone know why the sudden jump in SP, surely the increased price of gold not affecting this SP is it.?
Alex

KYS has been undervalued for a while now in terms of NPV. Increased market interest, rising value of gold and commodities being generally favoured in terms of risk seem to be collectively helping this share at the moment.

RAB out and hopefully the overhang cleared--tips and evil have given a fair value of 36p on this one.

Its nice to see more posters on this thread now.