Ann: Merger of Equals of Adamus Resources and End, page-13

re: Ann: Merger of Equals of Adamus Resources... 10

I am a bit wary of the management because they do not have much of their own money in the company. A company with that sort of management has more of a tendency to dilute shareholder because their reward is mainly from cheap options that they vote themselves and higher wages.

As these companies grow bigger they then can pay management larger wages and issue more "performance" bonus options.

However this is not true for EDV which has far fewer shares on issue, so perhaps there will be a big improvement on this front in the future. Check out EDV.

The chief upside from this deal is that in theory growth can be achieved earlier because there will be more cashflow sooner (plus EDV's cashpile on hand). So instead of waiting several years until they have built up a sizeable cash balance to move onto another project this can happen sooner (in fact very soon) and in this way enhance the value of our shares. After all we do not really know when this gold boomlet will end. If it runs for another 6 years then it is better to get more project up now so that our shareprice can be a lot higher during the hoped for peak in gold prices.

As I said in another post, I would prefer to expand organically via the sulphur complexed gold deposit and later on by other projects.

The market has reacted positively. Perhaps some buying from overseas/Canada? In any case, at the current POG, ADU is undervalued.

My ten cents worth.

loki