What you need to know: • Moon River recently announced a highly economic PEA on its Davidson Project in B.C., the highest-grade molybdenum project outside of China. • The acquisition of a 25% stake in the Endako Project reduces single asset risk, providing MOO with $2M in working capital, $40M for maintenance and reclamation costs, as well as providing interest income to cover corporate G&A, offering substantial upside for the Company. • Moon River looks to take advantage of a booming molybdenum market. • We value MOO at $2.20/share representing 267% upside. Moon River Moly Ltd. (MOO:TSXV), is a Canadian development company focused on two molybdenum projects. The Davidson Project is MOO’s flagship asset which the Company recently announced a positive preliminary economic assessment (PEA). The PEA yielded an after-tax NPV8% of $602M and an IRR of 24% at a molybdenum price of US$21.50/lb (current spot price $22.32/lb). Moon River’s second asset is the recently acquired 25% interest in the Endako Molybdenum Mine, with Centerra Gold Inc. (CG:TSX) owning the remaining. MOO acquired its interest from Sojitz Corporation (TYO:2768). On closing, Sojitz provided Moon River funding of ~$42M, of which $2.0M is working capital, and $40.0M is for care, maintenance and reclamation bonding and which generates interest income for the Company. The interest income will be enough to cover corporate G&A, putting the Company in a unique position relative to its peers. MOO is led by a strong management team, board, and partners that combined own ~48% of the shares, making the team highly motivated to create shareholder value. We are initiating coverage on Moon River Moly Ltd. with a BUY rating and a target price of $2.20/share. Investment Thesis Summary High-Grade & Profitable Project. Moon River’s flagship Davidson Project hosts the highest-grade primary deposit of its molybdenum peers and the recently announced PEA boasts a highly economic operation in a low-risk jurisdiction. Davidson Upside. The Davidson PEA was built upon 50Mt of ore for a 20-year mine life, however, there is significant upside to the resource and economics depicted in the study, notably with the potential inclusion of by-product metals. Endako Project Reduces Single Asset Risk. The recent acquisition of 25% ownership in the Endako Project, historically one of the largest molybdenum producers in North America, greatly reduces single project development risk. Interest Payments Cover G&A. The acquisition of the Endako Mine provides care and maintenance and reclamation funding to MOO which the Company is collecting interest on. The annual interest income is more than enough to cover all current corporate G&A expenses. Substantial Infrastructure at Endako. The Endako Project hosts a brand new 50Ktpd mill, an established mine site with direct access to the orebody, buildings, power, water, as well as other mine infrastructure. Motivated Management. Management & board own ~21% of the outstanding shares and are highly motivated to increase shareholder value.