Ann: Merger of Equals of Adamus Resources and End, page-8

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

I am neutral on the deal. There are pluses and minuses.

I was really hoping that ADU was going to get some cashflow from its sulphur complexed gold well before end 2013. This would have offset a lot of negativity of the gold hedge. The presentation does not mention any such project.

Their next project is in Ivory Coast which has had some serious political problems (now settling down I think). EDV's current project is in Burkina Faso, which has also had some social turmoil with soldiers being unhappy.

EDV's projects have probably been discounted because of the turmoil in addition to the general market seldown of goldies.

What I like is the $160m in cash that EDV has plus the $118m to come on conversion of warrants and options.

The Ivory Coast project looks like it will go ahead if the country is stable. This will only become cashflow positive in late 2013 or early 2014.

Both of EDV's main projects are fairly small and they will need to find more ounces.

Both companies need to get those drills going in thier moose country and find us some big deposit so that we get a PRU sized rerource/reserve.

They are thinking of further acquisitions, but what will that mean for shareholders? Dilution down the track?

EDV has been around since 1988, when it was established by its current CEO.

At the current POG both companies are worth more so hopefully this will be reflected in the shareprice by the end of the year. The 64K question is will the USD POG fall back to its 200 DMA.

loki