eResearch

eResearch

August 21, 2007 15:26 ET

eResearch Issues Initiating Report on FinMetal Mining Ltd. with Speculative Buy Rating and 12-Month Target Price of $0.70

TORONTO, ONTARIO--(Marketwire - Aug. 21, 2007) - eResearch analysts, Michael Wood, B.A. (Sc.) (Mining Engineering) and Bob Weir, B.Sc., B.Comm., CFA, have written an Initiating Report on FinMetal Mining Ltd. (OTCBB:FNMM). FinMetal Mining Ltd., the former Gondwana Energy Ltd., is a mining exploration company headquartered in Finland. Currently, the Company is active only in Finland, with its primary focus being brown-field nickel exploration; it is also involved, to a lesser extent, in gold exploration.

In the report, the Analysts state, "The stock price of FinMetal Mining is tied primarily to the price of nickel. After nickel's meteoric rise during 2006 until May 2007, it has plummeted about 50%. Likewise, FinMetal Mining's shares since May are down about 75%. In our opinion, the worst is over, for the metal and the stock. However, we do not foresee an instant return to the former highs. Rather, the recovery is likely to be slow and deliberate."

Highlights from the report are as follows:

- 17 exploration projects: 14 nickel and 3 gold

- Strategic JV formed to develop nickel reserves in Enonkoski Nickel Belt

- Key property is the past-producing Halvala Nickel Mine

- Three other promising projects, one with an inferred resource

- Nickel prices expected to remain historically high pending increased production

- Gold prices anticipated to continue rising backed by increasing demand/decreasing supply

- Finland under-explored, with highly favourable geological potential

- Early-stage exploration company; long lead time to feasibility

- Low investor awareness and low share trading volumes

This Press Release was prepared by eResearch and was not vetted by FinMetal Mining Ltd. Further, the Recommendation and Target Price contained in this report are strictly those of eResearch and, due to securities laws, are not endorsed by FinMetal Mining Ltd.

eResearch is Canada's primary source for independent, quality, investment research, focused primarily on small- and mid-cap companies. Our research and analysis is of institutional quality, and has the potential of reaching millions of global investors through our extensive electronic distribution network. eResearch does not engage in retail or institutional sales, trading, or corporate finance activities, nor does it conduct investment banking or investor relations services for the companies covered. Our sole business is providing quality, unbiased research.

FinMetal Mining Ltd. paid eResearch a fee of C$18,500 + GST to conduct research on the Company, on an Annual Continuous Coverage basis.

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