ABS

In an initiating coverage research report on Abzu Gold Ltd. (TSX VENTURE:ABS)
(OTCQX:ABZUF), Toronto-based Ubika Research points out that the miner's stock is
"steeply discounted" and calculates a Ubika Model Price (UMP) of $1.08/share,
414% higher than the $0.21 close on May 7, 2012. Abzu, which has several
projects in Africa's second largest and the most mining-friendly nation Ghana,
is gearing up for the second phase of drilling. Ubika Research points out that
the outcome of this program is likely to provide headlines and short-term
catalysts for the company.


According to Vishy Karamadam, Ubika's Managing Director and the lead researcher
on the Abzu report: "Based on our research, discussion with management,
assessment, and initial drilling results in the Nangodi and Asafo concessions,
we estimate a resource of 1 million ounces of gold in the inferred category
within the next 12 months. Our valuation and 12-month price target of $1.08 is
based on our 12-month outlook... this stock is steeply discounted with a
significant upside potential."


The Ubika Senior Analyst states: "Abzu Gold (TSX VENTURE:ABS) has a JV with Red
Back Mining Inc. (100% subsidiary of Kinross) and is well on its way to earning
a 51% interest and becoming an operator after spending $3 million. After a JV is
formed, both ABS and Red Back Mining will contribute proportionally for further
development." 


The Ubika report says that Vancouver-based Abzu "is well-financed for its next
phase of exploration and has a strong shareholder base... with 68% of shares
either closely held or with institutional investors... additionally, it has
built strategic relationships with local government and is headed by a
management team with multinational exploration, technical and business
development experience."


Ghana, says Ubika's report, is not only mining friendly but has a "strong legal
and mineral title system," which is in Abzu's interest since it has title to or
is in option agreement on 16 concessions across five highly productive gold
belts. The remaining 10 concessions are under option agreement with Red Back
Mining Ghana Ltd. (RBMG), a wholly owned subsidiary of Kinross Gold Corp.,
through which Abzu can earn 51% interest of the 90% interest held by RBMG. 


Abzu Gold has two highly prospective flagship properties known as Asago and
Nangodi, where the company has completed Phase 1 drilling. "In Nangodi, Phase 1
drilling outlined a mineralized gold zone of 1.2 km long, up to 60 metres wide,
with intercept to 200 metres vertical depth," states Ubika's report. "The
Company plans to initiate Phase 2 drilling (30 holes, greater than 5,000m or
metres) in Q2 with a focus to determine the viability of the multi-million ounce
resource in Nangodi by the end of 2012. In Asago, Phase 1 drilling intersected
high-grade gold mineralization and Abzu intends to initiate Phase 2 drilling
(greater than 4,000m) in Q3."


The report points out that Ghana has a long history of gold production (in
excess of 100 Moz or mln oz), yielding 3 million ounces per year. British
colonialists developed gold mines in Ghana in the late 1800s. Since then,
several companies have explored and developed numerous gold mines. The largest
of these is the Obuasi mine, which has been operational for 113 years, producing
more than 30 million ounces of gold. In the last 14 years, Ghana has attracted
several international mining companies such as AngloGold Ashanti, Newmont Mining
Corp., Goldfields Ltd. and Kinross Gold Corp., which have discovered more than
50 million ounces of gold in the last 10 years.


Ubika's report is available at
http://www.smallcappower.com/companies/abzu-gold-ltd/research-reports.html. 


About Ubika Research: Ubika is an investment research and capital market
services firm based in Toronto and Vancouver with a proven track record of
identifying and launching coverage of high potential small cap stocks (less than
$1 billion) at an early stage.


DISCLAIMER: Ubika Research has received compensation from Abzu Gold for
providing analyst research coverage. Except for the historical information
presented in its reports, matters discussed in these documents contain
forward-looking statements that are subject to certain risks and uncertainties.
Hence, actual results could differ materially from any future results,
performance or achievements expressed or implied in the reports.


Ubika Research and www.smallcappower.com (are both divisions of Ubika
Corporation), and are not registered with any financial or securities regulatory
authority, and do not provide nor claim to provide investment advice or
recommendations in its reports. Readers are encouraged to talk to their own
investment advisor before making specific investment decisions. Our full
disclosure is available at http://smallcappower.com/disclosure.aspx.

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