Condor Resources Plc

OCEAN EQUITIES
This marketing communication is directed to professional investors only & is non-independent research. As such, it has not been prepared in accordance with legal requirements designed to promote the independence of investment research & is not subject to any prohibition on dealing ahead of the dissemination of research.

Condor Resources Plc (Condor) is a Central-America focussed exploration company actively exploring its La India gold-silver project in Nicaragua. In Dec11 the Company announced an updated JORC compliant resource of 1.6Moz at 5.6g/t gold based on the first half of a 20,000m drill campaign. Drilling at La India is currently on hold while Condor reassesses its exploration strategy following the receipt of an internal concept study completed by SRK Consulting, which has generated a number of new targets that will be prioritised to help focus the Companys exploration efforts with the aim of growing the resource beyond 2Moz in the near-term. La India District Condors flagship La India mine was discovered in the early 1930s. The mine is made up of many high-grade mineralised quartz veins and confined hydrothermal breccias. Mining at La India started in 1936 and continued to 1956 with underground workings reaching a recorded depth of 200m. Approximately 0.6Moz gold, at a grade of 13.2g/t, and 0.3Moz silver were produced from the mine during this time. The mine was extensively explored by Soviet geologists in the 1980s at which time La India was controlled by the state. The Soviet geologists delineated a resource of over 2.4Moz in C and P categories providing a solid benchmark for Condor to meet. Resource Growth Potential Condor has aggressively expanded the JORC-compliant resource at La India over the past 12 months from 513,000oz gold at 11.1g/t up to the currently defined 1.6Moz. Recent results indicate that the Company will be able to sustain the strong resource growth trajectory by incorporating previously untested veins into the resource and take La India towards and beyond the previous high tide mark of 2.4Moz. With a break in drilling, the recently completed internal study will help to concentrate Condors future exploration onto high priority targets to upgrade resources and develop early-stage mine plans. Condor is confident that it can surpass the 2Moz mark during the year ahead. El Salvador Still part of the portfolio Condor also owns a 90% stake in two concession areas in El Salvador that host a combined resource in excess of 700koz gold and 22Moz silver. No value is currently attributed to Condors stake in these assets as mining is currently not permitted in the country due to a temporary moratorium. The El Salvador Government has enlisted the help of The Tau Group, an independent consultancy, to review the current and future impact of mining in the country. If the moratorium is repealed, those ounces would come back into the Companys resource. Value Proposition Condor Resources offers an interesting play in Central American gold and silver. We see particular upside from the potential to mine the more closely-spaced veins in open pits. As Condor embarks upon the technical studies on its La India gold project we will get an insight into the potential profitability of mining at the district. As a historical producer (mining finished in the 1940s due to a flooding event) we expect that application of modern mining techniques should ensure economic rehabilitation. The Company has an enterprise value to in-situ gold ounce multiple of $31/oz on its Nicaragua based resources alone, which is at the lower end of the spectrum for junior explorers and developers in Central/South America. Condor has projected a steady increase in its resource over the next 12 months and if the Company maintains this EV/oz multiple, it should see healthy share price growth during that timeframe. We have been impressed by Condors ability to meet and exceed resource growth targets at its La India project. The addition of 365,000oz to its resource from roughly the first half of its 20,000m drilling campaign in Dec11 was an encouraging result for the Company and supports its goal of reaching a 2Moz resource in the near term. To put this into context, at the start of 2011 the Company had a Nicaraguan resource of 41,000oz and several prospective licence areas.

Gold NICARAGUA
27th February 2012
Market Cap Listing:Ticker Share Price Shares o/s 52 week High/Low Net Cash/(Debt)
12.0
Volume Stock Price (GBP)

33.5m AIM:CNR 6p 558.34m 11.375p / 3.625p ~1m

120.0

10.0 Condor Resources (CNR.LN)

100.0

8.0

80.0 Volume (m)

6.0

60.0

4.0

40.0

2.0

20.0

0.0 May-09 May-10 May-11 Jan-09 Jan-10 Jan-11 Sep-09 Sep-10 Sep-11 Jan-12

0.0

2,000 1,800 1,600

Gold Price (US$/oz)

1,400 1,200 1,000 800 600 400 200 0 May-09 May-10 May-11 Sep-09 Sep-10 Sep-11 Jan-09 Jan-10 Jan-11 Jan-12

Source: Bloomberg

Highlighted Related Research: 10th Feb12: Breccia Discovery Confirmed by Drilling and Trenching Results 3rd Feb12: Further drilling results Includes 7m at 6.31g/t gold, new Natalie vein discovered 3rd Jan12: La India resource increased to 1.6Moz, exceeds target 20th Dec11: Latest Drilling Results at La India Demonstrate Open Pit Potential, A Game Changer for Condor 6th Dec11: Central American Gold Company Initiation Note 28th Nov11: Maiden Resource for Rio Luna 18th Oct 11: Latest Drilling Results from La India 7th Oct11: Takes ownership of La India to 100%

Analysts
Chris Welch +44 (0) 20 7786 4377 Sam Spring, CFA, CA +44 (0) 20 7786 4378 Adam Lucas +44 (0) 20 7786 4382 Richard Nash +44 (0) 20 7786 4386

*Refer to the final page of this report for the full Ocean Teams contact details

Disclosures & Disclaimer

Ocean Equities acts as broker to and is seeking investment business from Condor Resources Plc This report must be read with the disclaimer and disclosures on the final page that forms part of this report. Ocean Equities Limited. Authorised and Regulated by the Financial Services Authority. Member of the London Stock Exchange.

Central and South American Peers As discussed in our recent initiation note on Condor (see Condor: Central American Gold Company, 6th December 2011) there are few narrow vein gold exploration companies at a similar stage as Condor on which to build a well-defined and appropriate peer group comparison. Narrow vein mining is a niche sub-sector of the gold mining industry and there are certain conditions that make the technique economically viable and in specific cases hugely profitable. We have therefore build a relative valuation based on similar-stage gold-silver exploration and development companies with assets predominantly located in Central and/or South America.
Figure 3: Condors current EV/oz value of $31 is at the lower end of the scale in the Central and South American peer group.

120

100

80

EV/oz (US$)

60

40

20

0 Sandspring Resources Starcore International Jaguar Mining Sienna Gold Goldgroup Mining Belo Sun Mining Luna Gold Orosur Mining NWM Mining FDG Mining Rio Novo Gold Kimber Resources Aura Minerals Amarillo Gold Radius Gold Magellan Minerals Sunward Resources Atacama Pacific Argonaut Brazilian Gold Corp Petaquilla Minerals Mansfield Minerals Guyana Goldfields Esperanza Silver Andina Minerals Calibre Mining Lachlan Star Sacre-Coeur Condor

Source: Condor Resources

Condors current market cap of $54m (34m) equates to an EV/oz of approximately $31 with no value included for the Companys El Salvador resources, which is over 1Moz gold equivalent. We believe that at current levels Condor offers a good investment opportunity as its share price has yet to re-rate following the resource expansion. Moreover, Condor presents a bold resource growth opportunity and we believe few smaller mining juniors will be able to sustain similar growth this year. Nicaragua A Growing Gold Producer Nicaragua is the largest country in Central America and also has the highest recorded gold production in the region, which totals ~10Moz overall, including ~7.9Moz from the historical Mining Triangle in the northeast of the country. The three large modern producing gold mines in the country, Bonanza (3.1M ounces gold and 0.6M ounces silver produced), El Limn (2.7M ounces gold and 4.5M ounces silver produced) and La Libertad (170,000 ounces gold production, 16.3Mt at 1.5g/t gold reserves), produce a total of ~200,000ozpa. The country has proven to be one of the safest operational jurisdictions in Central America, and Condor has proven it has a positive close-working relationship with the mining department having been directly granted four of the six concessions at La India. The government has publicly expressed a willingness to back foreign investment in the mining industry and addressed Condors exploration operations directly. With the promining former Sandinista President Daniel Ortega Saavedra in power for a second term following the elections in Nov11, we believe commodities are likely to play an increasing role in the growth of the economy, which we see helping Condor in the future development of the La India project. Near-term Catalysts Exploration Strategy Update Condor will hopefully soon outline the drilling plan for La India that will indicate the near term development plans for the project, including new drill plans based on a recently completed internal scoping study. This will give a better illustration of the near term objectives that Condor expects to complete this year. El Salvador The resources in El Salvador are currently subject to a moratorium on mining in the country, but do still offer blue sky potential for Condor. The Governments review of mining in the country has been completed but we suspect is held up in bureaucratic process. While we do not ascribe any value to Condor based on the El Salvador resource, there is always a chance for developments on the moratorium to provide upside for the Company. Central Breccia Zone Results Condor has identified the Central Breccia as a target with significant potential to define an open-pittable bulk tonnage resource that could supplement the high-grade narrow vein style mineralisation. After announcing the initial results earlier in Feb12, 145m of trench results remain outstanding, while a further 400m of trenches are currently being excavated. The results will help to fully delineate the lateral extent of the hydrothermal breccia at surface prior to further drilling.

La India Condors primary asset is its La India gold project, a historical mining district in Nicaragua that hosts more than 1.6Moz of gold in a JORC compliant resource. The district is 150km north of Managua, Nicaraguas capital, and is made up of six contiguous concessions that cover a combined area of 166km2. Condor began building its land position in this part of Nicaragua in 2006 with four concessions being awarded directly by the government, before leveraging its strong position in the gold-rich area to secure a mutually beneficial concession swap agreement with B2Gold (TSX:BTO, C$1.44bn) in 2010. Current Resource of 1.6Moz In December 2011, Condor released its most recent resource estimate for La India, which totalled 1.6Moz at an average grade of 5.4g/t gold. As the project has evolved, three main areas of focus have emerged; La India vein set with 730koz at 5.3g/t gold, the America vein set with 405koz at 6.2g/t gold and the Mestiza vein set with 334koz at 7g/t gold. Division of the veins into different areas gives the districts gold distribution more clarity and allows Condor to concentrate on specific areas of focus. Condor will now focus on the growth of these three areas at its main project, while gradually adding ounces from new grass-roots targets. A priority will be drilling to target areas where bulk tonnage resources can be delineated, such as the Central Breccia prospect.
Figure 1: Condors land holding in the La India Mining District covers a total of 166km2.

Source: Condor Resources

The 1.6Moz includes 264,000oz at an average grade of 7.1g/t in the indicated category and 1.35Moz of inferred resources at an average grade of 5.4g/t hosted in a series of narrow, steeply-dipping epithermal quartz-calcite veins. 18 separate veins have been identified in the district, with a total of 17km defined by trenching and rock chip samples. Only 8km of strike-extent has been tested by drilling, with the remaining untested veins providing additional potential to add ounces to the current resource.
Figure 2: The latest JORC compliant resource estimate for Condors wholly owned La India project.

Indicated Area La India Vein Name La India California Arizona Teresa Agua Caliente America America Escondido Constancia Guapinol Mestiza Tatiana (LI) Tatiana (EM) Buenos Aires Espinito San Lucas CristolitoTatescame Cacao Totals San Lucas CristolitoTatescame Cacao 1,160,000 7.1 280000 90000 110000 8 4.7 9.8 Tonnes 680000 Grade 6.6 Contained 144,290 0 0 0 0 72,016 13,600 34,658 0 0 0 0 0 0 0 0 264,564

Inferred Tonnes 1,790,000 1,300,000 430,000 70,000 40,000 540,000 90,000 240,000 670,000 510,000 570,000 210,000 200,000 330,000 200,000 590,000 7,780,000 Grade 5.9 3.5 4.2 12.4 9 5.6 4.6 7.2 5.5 7.6 5.8 8 7.7 5.6 5.3 3 5.4 Contained 339,538 146,283 58,063 27,906 11,574 97,222 13,310 55,556 118,474 124,614 106,289 54,012 49,511 59,414 34,079 56,906 1,352,752

Total Tonnes 2,470,000 1,300,000 430,000 70,000 40,000 820,000 180,000 350,000 670,000 510,000 570,000 210,000 200,000 330,000 200,000 590,000 8,940,000 Grade 6.1 3.5 4.2 12.4 9.0 6.4 4.7 8.0 5.5 7.6 5.8 8.0 7.7 5.6 5.3 3.0 5.6 Contained 483,828 146,283 58,063 27,906 11,574 169,239 26,910 90,213 118,474 124,614 106,289 54,012 49,511 59,414 34,079 56,906 1,617,316

Source: Condor Resources & SRK Consulting

The La India Vein Set Area From the recent drilling in the La India area the most important results were from the California vein. The recently discovered vein runs parallel to La India within the La India veins hanging wall with a narrow gap between the two. Early indications are encouraging that shared infrastructure could be used to access areas of both the La India (on which a good deal of historic infrastructure remains intact) and California veins. The Hangingwall Zone of the La India vein has been identified by Condor as a priority area for exploration. Several areas of closely-spaced smaller scale veins have recently been discovered in the zone that combined make up a broader mineralised area which is attractive notwithstanding its lower average grade when compared to the La India vein. These areas become particularly attractive as they improve the economics of the project when combined with the narrower but higher grade areas of mineralisation. This is demonstrated well by some of the latest drilling results from the California vein focused drilling which includes intercepts of 2m at 25.4g/t gold (drill hole LIDC067) and 21m at 2.67g/t gold (drill hole LIDC074). Condor also added ~50,000oz of gold from drilling data below encouraging trench results on the TACA (Teresa-Agua Caliente-Arizona) area. The area lies in the northern part of the La India Vein Set Area and the smaller veins intersect the La India vein. As above with La India and California, areas where veins intersect are of particular interest as they suggest shared infrastructure could be employed to access a larger amount of ore. Resource growth in this area will come from: Further drilling on the Hanging Wall/California Vein areas; Down dip drilling below the historic mining areas of the La India vein; and Drilling below encouraging trench results on the TACA area.

Figure 3: Condor increased the resource at its La India project to 1.6Moz at 5.6g/t in December 2011. The gold is mostly hosted in high grade veins and there is potential for open pit resources.

Source: Condor Resources

The Mestiza Vein Set Area Most of the Mestiza Area lies on the recently acquired Espinito-Mendoza concession. Of the 334,000oz in the Mestiza Area, ~230,000oz is attributable to the Tatiana vein. Only a small amount of work has been done to define the accompanying Espinito and Buenos Aires veins. The recent drilling in the area has been focused on down-dip extensions of the known mineralisation of the Tatiana vein. This is another example of Condor leveraging the strong vertical continuity of the high grade areas of its veins, stepping out with its drilling to include the deeper mineralisation in the mineral resource thereby quickly adding ounces. Condor will be able to repeat this process and through drilling at depth can add a significant amount of gold to its resource. One aspect of the historic Soviet Classification resource on the area is that very little deep drilling has been done across the La India district. The America Vein Set Area Recent drilling conducted within the America Vein Set targeted the along-strike extensions of the historic mine workings. Condor has successfully added a further 500m of mineralised strike-length to a depth of 200m at the southern end of the America-Constancia vein system. This was added to by the discovery of a new highgrade shoot that runs oblique to the Constancia vein. The majority of drilling that has subsequently been completed since the release of the updated resource estimate in Dec11 was concentrated on testing the

down-dip extensions of the Guapinol and America veins, including the projected location of the intersection of the two veins. In our view there is great potential for step out drilling to capture the deeper mineralisation and add ounces to future resource calculations. Growth Potential - New Discoveries Recent drilling results announced by Condor have continued to outline the potential for the Company to add ounces by making further discoveries at La India. Drilling between the Guapinol and America veins intersected a new vein that has subsequently been named Natalie, which adds to the recent discovery of the California vein located in the hangingwall of the main La India vein. With a discovery intersection of 8m at an average grade of 4.22g/t and indications that Natalie is open at depth, there is clear potential to discover new nearsurface veins that will increase the potential of proving that La India could support open-pit mining techniques. Resource Conversion Condor has identified a number of grass-roots exploration targets as well as large portions of the main vein systems that remain untested along-strike from the current JORC resource. Concentration of drilling in regions that offer bulk mineralisation potential will accelerate the resource conversion process from inferred to indicated resources. At this time Condor has a large resource of 1.6Moz at 5.6g/t gold, 1.34Moz of which is in the inferred category. Given the nature of the gold mineralisation, which is mostly high grade but hosted by narrow veins, indicated resources are more valuable as they are the first step in building a mining inventory to establish a mine plan. The Central Breccia Condor has also identified the recently discovered Central Breccia zone as a high priority exploration target. This zone presents a different style of mineralisation, specifically a more broadly disseminated style hosted in a hydrothermal breccia. Trench results including 19m at a grade of 2.7g/t and 42m at a grade of 1.59g/t are highly encouraging, and although the initial drill results have been of lower grade (102m at 0.31g/t and 130m at 0.12g/t), we are encouraged by the size of the hydrothermal system and width of gold intercepts returned from surface trenches. As yet, the full extent of the hydrothermal breccia has not been defined, with all of the trenches ending in mineralisation.
Figure 4: The Central Breccia prospect identified in the structural centre of the La India district has been targeted as a potential for lower-grade bulk mineralisation that could lend itself to an open-pit operation.

Source: Condor Resources

The location of the Central Breccia could be significant for Condor as it has the potential to become an openpittable deposit at the structural centre of La India. Condor has been aiming to delineate a significant mineralised zone beneath the trenches and prove the open pit potential at La India to supplement the highgrade narrow vein style mineralisation. In our view, the initial drilling results are hard to draw a conclusion from at such an early stage in the project development pipeline, although they do indicate substantial mineralisation at depth is yet to be discovered. As an early stage exploration prospect the Central Breccia zone still provides potential for the Company to delineate the open-pit style bulk mineable ounces to the Companys mine development plan, which could ultimately add major value to La India. Plan for a Centralised Plant As it stands, Condor now has 730,000oz gold in the La India area, 405,000oz in the America area and 334,000oz in the Mestiza area. Initial high level mine planning suggests that a centralised plant could be

constructed that would be within 2km of each area. This would enable Condor to construct a larger central mill which would be more economic than constructing several smaller ones. In our view, mill capacity will determine the profitability of the mine, which in turn will be governed by how much ore Condor will be able to feed it with. For narrow vein underground mines it is the number of working faces/headings that governs how much ore can be produced and thereby what the appropriate throughput would be at any plant. Having these three areas of focus, Condor could develop/rehabilitate workings in each area to give it enough working faces to feed a larger scale mill. Condors Portfolio beyond La India - Nicaragua Outside of La India, Condor has a regional exploration portfolio comprising four highly prospective concessions within three 100%-owned project areas all containing gold mineralisation either including or proximal to historical gold mines. The Company also has a 20% interest in a concession close to the La Libertad gold mine. Although these are all early-stage projects, Condor has released a maiden JORC compliant resource for the Rio Luna project of 0.7Mt with an average grade of 3.5g/t for 80,000oz gold. The additional silver resource at the project comprises 0.28Mt grading at an average of 56g/t, equating to 500,000oz silver.
Figure 5: Condor has a portfolio of five concessions in Nicaragua of which La India is the most advanced.

Potrerillos

Estrella

La India

Rio Luna

Cerro Quiroz

Source: Ocean Equities

El Salvador Condor currently holds four exploration concessions over two projects in El Salvador that have been subject of significant historical mining activity and have potential to host high grade epithermal gold deposits. However, mining is currently prohibited in the country as the government conducts a review of previous and future mining operations. The Companys resource of 1Moz gold equivalent at an average grade of 2.6g/t already outlined within the concessions has not been included in our valuation.
Figure 6: Condor also has two concession areas in El Salvador. Should the mining moratorium be lifted in the near term, as expected, another 1Moz of mineable ounces will be added to Condors portfolio.

Source: Ocean Equities

OCEAN EQUITIES Ltd

INDEPENDENT PARTNERSHIP SPECIALISING IN THE NATURAL RESOURCE SECTOR 3 Copthall Avenue London EC2R 7BH Tel: +44 (0)207 786 4370 Fax: +44 (0)207 786 4371 E-mail: info@oceanequities.co.uk Website: www.oceanequities.co.uk Bloomberg: OELR [GO]

PARTNERS Guy Wilkes CEO +44 (0) 20 7786 4372 guy.wilkes@oceanequities.co.uk Rupert Williams Director, Head of Sales +44 (0) 20 7786 4373 rupert.williams@oceanequities.co.uk Will Slack Director, Corporate Finance +44 (0) 20 7786 4375 will.slack@oceanequities.co.uk Will Hodson Senior Equity Sales Executive +44 (0) 20 7786 4376 will.hodson@oceanequities.co.uk

RESEARCH Sam Spring, CFA, CA Senior Mining Analyst +44 (0) 20 7786 4378 sam.spring@oceanequities.co.uk Christopher Welch Mining Analyst +44 (0) 20 7786 4377 christopher.welch@oceanequities.co.uk Adam Lucas Mining Analyst +44 (0) 20 7786 4382 adam.lucas@oceanequities.co.uk Richard Nash Mining Analyst +44 (0) 20 7786 4386 richard.nash@oceanequities.co.uk

SALES Justin Tooth Sales & Business Development +44 (0) 20 7786 4385 justin.tooth@oceanequities.co.uk Jeremy Woodgate Executive, Sales & Trading +44 (0) 20 7786 4381 jeremy.woodgate@oceanequities.co.uk James McLucas Executive, Sales +44 (0)207 786 4384 james.mclucas@oceanequities.co.uk Amanda van Dyke Executive, Sales +44 (0) 20 7786 4387 amanda.vandyke@oceanequities.co.uk

Kelly Edwards Katie Pollard Danielle Shoemark Lisa Coate

Manager, Trading and settlements Executive Assistant / Office Manager Corporate finance Research Assistant

+44 (0) 20 7786 4374 +44 (0) 20 7786 4370 +44 (0) 20 7786 4389 +44 (0) 20 7786 4388

kelly.edwards@oceanequities.co.uk katie.pollard@oceanequities.co.uk danielle.shoemark@oceanequities.co.uk lisa.coate@oceanequities.co.uk

Authorised and Regulated by the Financial Services Authority Member of the London Stock Exchange

DISCLAIMER
Copyright 2011 Ocean Equities Limited. All rights reserved. This document does not purport to be impartial investment research as defined by the Conduct of Business Rules of the FSA and as such constitutes marketing communication. This document has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. This material does not in itself constitute an offer or invitation to sell, or any solicitation of any offer to purchase or subscribe for, any securities in the Company or any other body corporate or an invitation or an inducement to engage in investment activity under section 21 of the Financial Services and Markets Act 2000 nor shall it or any part of it form the basis of or be relied on in connection with any contract therefore. We are not soliciting any action based on this material. It is for the general information of clients of Ocean Equities Limited. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Before acting on any advice in this material, clients should consider whether it is suitable for their particular circumstances and, if necessary, seek professional advice. The price and value of the investments referred to in this material and the income from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide to future performance. The material is based on information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied on as such. Opinions expressed are our current opinions as of the date appearing on this material only. We and our affiliates, officers, directors, and employees, including persons involved in the preparation or issuance of this material, may from time to time have long or short positions in, act as principal in, and buy or sell the securities or derivatives (including options) thereof of companies mentioned herein. No part of this material may be (i) copied, photocopied or duplicated in any form by any means or (ii) redistributed without the prior written consent of Ocean Equities Limited. Neither this material nor any copy of it may be taken, transmitted or distributed, directly or indirectly, into the United States of America, its territories or possessions or passed to US Persons (as defined in Regulation S of the United States Securities Act of 1933 (as amended)), United States residents, corporations or other entities, save pursuant to an applicable exemption. Neither this material nor any copy of it may be taken or transmitted into any jurisdiction outside the UK or distributed to persons with addresses outside the UK where such distribution would be a breach of relevant securities laws or regulations. Distribution of this summary in the United States and certain other jurisdictions may constitute a violation of relevant securities law. No recipient of the information in this Summary should deal in or arrange any dealing in or otherwise base any behaviour (including any action or inaction) in relation to any securities to which this document relates (including behaviour referred to in section 118(6) of the Financial Services and Markets Act 2000) which would or might constitute market abuse (as defined inspection 118 of the Financial Services and Markets Act2000). In the UK this document has been issued by Ocean Equities Limited. It is not intended for private customers. In the UK, this document is only being distributed to persons who are reasonably believed to be persons who fall within Articles 19, 47, 48, 49, 50 or 51 of The Financial Services and Markets Act 2000 (Financial Promotions) Order 2001 and Schedule 11 to the Financial Services and Markets Act 2000 or to other persons to whom this summary may otherwise be lawfully distributed. Ocean Equities Limited is registered in England No 3994976, and is authorized and regulated by the FSA.