Agoracom

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Share Structure as of November 4, 2008

Share price - CDN$ 0.175
Shares Outstanding - 62,183,013
Fully Diluted - 73,605,513

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All mining companies out there, both juniors and majors and all sizes in between, have been hit hard in the recent mass sell-off in the markets. This has indeed created a great opportunity to take advantage of key companies that have been greatly oversold.

Many companies will tell you that they are now way under-valued, however the road to recovery will not be the same for all companies. The fundamentals for recovery in the junior mining sector will be three-fold;

1) cash
2) defined economic deposits, and
3) strong management.

Sunridge Gold has all these fundamentals and is positioned for a strong recovery:

• Well financed - almost $CDN 8 million in cash
• Strong Established assets - Total Indicated 43-101 Resources to date from 4 deposits on the Asmara Project in Eritrea contains combined metals of:
-1.28 billions lbs copper,
- 2.5 billion lbs zinc,
- 0.955 million oz gold,
- 31.2 million oz silver.
• Strong management - experience at all levels of exploration, development, and mining with a long history of success.

In addition to the above, there are a couple of key events to keep your eye on which could have a significant positive effect on the share price of Sunridge Gold:

• Nevsun Resources announced last week that they have a a $89 million commitment in the form of debt financing from a major South African bank for the development of the Bisha Project in Western Eritrea. This is great news for the Eritrean mining industry (and Sunridge) as it demonstrates that companies are able to raise debt for development capital of Eritrean projects.
• Sunridge’s “world class-sized” Emba Derho Copper-Gold-Zinc deposit is currently the subject of a Preliminary Assessment Study (scoping study). This study should be complete by the end of the year and will provide a framework of the economics of the project.

Emba Derho

The largest of the deposits on the Asmara project is Emba Derho. The Emba Derho deposit is a very large copper-zinc-gold VMS deposit and a preliminary assessment study (scoping study) will soon be completed on the deposit. This will provide an outline of the economic framework for the deposit. The deposit would be mined by open pit and it is located on excellent infrastructure, as it is located approximately 15 km by paved road from the capital city of Asmara.

Also, as part of the upcoming Scoping Study, Sunridge recently issued an updated resource estimate on their Emba Derho deposit in Eritrea. The resource numbers were already very impressive when I first covered Sunridge Gold back in February, however as I said then, there was much room for expansion.

The new resource estimate reports at Emba Derho reports a “world class-sized” indicated resource of 59 million tonnes, containing:
• 990 million pounds of copper (35% increase since my first coverage in February 2008)
• 1,900 million pounds of zinc (11% increase)
• 485 thousand ounces of gold (20% increase)
• 19.5 million ounces of silver (31% increase)

 The resource update was announced on September 18 - Smack in the middle of the world wide market meltdown - and the market has yet to take advantage of these impressive numbers.

 Emba Derho - Photo of surface

Debarwa VMS Deposit

Work also is continuing at the Debarwa VMS deposit which has an indicated resource of 4.4 m/tones, including a rich copper zone with 1.3 m/tonnes 5.36% Cu, 1.54 g/t Au, 33.87 g/t Ag. Sunridge is conducting metallurgical testing on the high grade copper zone. The company is examining the possibilities of a low capital cost mine that will pull out the high grade copper zone and this is likely the next of the deposits to undergo a scoping study.

Adi Nefas VMS and Gupo Gold Deposit

Both, the Adi Nefas VMS Deposit and the Gupo deposit are in close proximity to the Emba Derho deposit (both with 6 km). When feasibilities studies are conducted at Emba Derho both will be considered as part of the mining plan as ore could be shipped the short distance to a common concentrator located at Emba Derho. The indicated resource at Adi Nefas is 2.7 m/tonnes grading 2.85 g/t Au,99.30 g/t Ag, 1.39 % Cu, & 8.38% Zn and the Gupo Gold deposit contains an inferred resource containing 189,000 ounces of gold averaging 2.99 g/t.

Red boxes indicate 43-101 Resources
Blue boxes indicate High Priority Drill Targets

Future Exploration Potential

Sunridge has only been exploring the 825 square kilometer Asmara property for less than 5 years and have had great success. With the current situation in the markets, Sunridge is focusing on advancing it’s key projects towards production and has slowed down exploration work to conserve capital.

When market conditions do change however - and they will -they will continue to explore the numerous other high priority targets in the same systematic process that so far discovered Emba Derho and Adi Nefas deposits.

Sunridge has so far 9 high priority new drill targets along proven VMS trends containing numerous strong gossans with geochemical and geophysical anomalies. These include: Adi Musa, Dairo Paulus, Shooting Star, Kodadu, Adi, Lamza, Shiketi, Adi Rassi, and several yet to be named targets (see map).

Bottom Line

Many companies will tell you that they are undervalued. The key difference is that I believe Sunridge’s deposits will prove to be deemed economical. With the impressive amount of contained metals in “Indicated” category (see table below) and a beaten up current market cap of approximately only $10 million, I see a tremendous opportunity right now in Sunridge Gold.

Sunridge Gold is committed to conservation of capital while focusing on moving their resources towards feasibility for when markets do rebound - which of course they will. Management understands the need to do this balancing act of watching their finances closely while forwarding their projects towards production.

Click here for comensation disclosure

For those of you that missed my Friday night BNN interview, or for my American friends that don’t catch BNN, please find enclosed a link to my BNN Interview.

This is a two-part interview.  Wait for the video to go to second part when part one is finished.

Sunridge Gold (SGC-TSX-V $.33) - In these heavily oversold market conditions, this is one of the most severe examples of an undervalued company with investors “throwing the baby out with the bathwater.” Sunridge continues to develop very large assets on its Asmara Project located in Eritrea and some key announcements are expected in the next few weeks.

Sunridge is now in the final stages of completing a scoping study on the large Emba Derho copper-zinc-gold VMS deposit. The scoping study is expected to be completed early next month, however an updated resource estimate can be expected as early as this week.

The initial resource at Emba Derho came out late in 2007 and reported a very large resource of almost 50 million tonnes containing 1.7 billion lbs zinc, 735 million pounds copper, 402,000 ozs Gold, and 15 million ozs silver. The updated resource estimate will include expansion drilling completed on the Emba Derho deposit since the initial resource was calculated and will include some of the largest intercepts as well as some of the best copper grades drilled on the project to date.

Sunridge remains well financed, with over $8 million in the bank and will not need to finance for some time yet

The company currently has four NI43-101 deposits, all located on the 825-square-kilometer Asmara Project, with a very impressive inventory of metals in the ground. They have a global indicated combined resource containing 2.3 billion pounds of Zinc, 1.02 billion pounds of copper, 872,000 ounces of Gold, and 27 million ounces of silver (combined value of over $7 Billion).

Sunridge has strong support from the local government and both parties are determined to fast-track this project into production.  Hello?