According to Jennings Capital:

PROBE MINES LIMITED

12-Month Target: C$4.00

Risk Rating: ABOVE AVERAGE

UPDATE ON METALLURGICAL TESTS

- Yesterday afternoon, Probe announced updated metallurgical results and a recovery curve for its Borden Gold project in Ontario.

- Recoveries appear to slightly exceed our expectations. We assume an average recovery of 85% for an average head grade of ~1g/t, whereas the recovery curve outlined by the Company infers approximately 87% at the same head grade (Figure 1). The same curve suggests a recovery of at least 85% for grades above 0.8g/t. At higher gold grades, the recovery response approaches 90%.

- Impact: Neutral - as the metallurgical results are generally in line with the street’s expectations. We have not adjusted our model, pending more detailed studies. This recovery curve was derived from one metallurgical hole, which limits its robustness. However, we believe other areas of this largely continuous ore body should see similar results.

-We have tweaked our model post expiration of the out of-the-money warrants. We expect Probe is fully financed for its 2013 exploration and operating plans with its existing $32 million in treasury (as of January 31, 2013).

- The Company notes that land acquisitions are its number one priority at the moment, given that some land required for infill drilling the newly-discovered high grade zone is not 100% controlled by Probe. Depending on drilling progress, an updated resource would be due during the summer, and the initial PEA at the end of 2013, which could include considerations for both an open pit and underground operation.

Our NAV 5% valuation increases by 2% to $5.56 per share, based on minor model tweaks. We reiterate our BUY rating and 12-month target of $4.00 per share based on an unchanged 0.72x weighted average NAV multiple.

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