From Paradigm Capital:

March 11, 2013

Investment Thesis. Romarco’s Haile Gold Project currently hosts total resources (M&I plus inferred) of 4.84Moz of gold, and exploration continues to expand the known mineralization. A Feasibility Study completed in February 2011 outlined P&P reserves of 2.0Moz and robust project economics. The deposit still remains open in most directions, and we believe there is considerable regional “district” potential in the company’s land package. The company is targeting receipt of necessary development permits by late-2013, or early-2014.

Event

An article was published in the (South Carolina) Herald newspaper on March 8, which gave a potentially confusing reference to timing of the Draft Environmental Impact Statement (EIS) for the Haile project. We have confirmed there is no change to our estimated timetable.

Details

- An article entitled “More Water Tests Next Week for Lancaster Gold Mine”1 was published in The Herald (South Carolina) newspaper on March 8.

- The subject of the article was the additional hydrology water well testing for the Haile EIS that is under way. We discussed this in our February 21, 2013 research note, The Delays are Getting Smaller.

- The article quotes Dr. Richard Darden, the US Army Corps of Engineers Project
Manager, as saying he “hoped the draft environmental impact statement could be
completed this year”.

- We spoke with Dr. Darden on March 8 and he stated that the Herald journalist had misquoted him. In fact, Dr. Darden had explained the various steps of the EIS process – the Draft EIS, public hearings, the Final EIS, and Record of Decision – and that he stated that it “would be great if we could get all that done by the end of the year”. So while this is certainly not a firm schedule, he did not state that he hoped only the Draft EIS stage could be completed by year-end as was printed in the article.

Conclusion