Ann: Update - Consolidation/Split - SEG, page-2

Consolidation - the wheels are in motion.

I'm not a share holder but keep an eye on this stock, which I used to own. So, I put it out there, would anyone like to take a guess at what the share price will be after this consolidation and future capitol raise?

My guess ...

In an announcement put out at around the beginning of the third quarter of last year, SM stated that SEG was fully funded till the end of this financial year. At that time SEG had a little over $650,00.00 in the bank. Considering little has happened since then, except the collection of a few rock chips, I think its safe to assume that this amount covers SM's extraordinary wage, the meagre wages of a few others, and tenement and office upkeep. I think it's also safe to assume that $1,000,000.00 is needed for wages etc., for a full 12 month period. Therefore any CP will have to be far greater than this amount because I think SM's past record shows that he is not a risk taker when it comes to his pay.

So, what capitol will be needed for future drilling campaigns? I personally have no idea but if the diamond drill is to be used, and the gold or lithium - or both - tenements are to be drilled, then I have no doubt it will run into the millions for a comprehensive campaign. My feeling, and I would like to hear what others think, is that around $2,000,000.00 would be a reasonable figure. Therefore, 2 mil for drilling plus 1 mil for annual company costs = 3mil capitol raise.

.002 x 35 = .07 cents after capitol raise. Since CRs are rarely done at current SP, let's say 3 mil is raised at .065 cents. That = just a shave under 46, 154,000 shares. After the consolidation its estimated that there will be 110,459,150 shares left on the register. A 3 million dollar CR represents a little over 40% dilution. My maths is far from brilliant but if we take 40% off of the estimated CR price at .065 the eventual SP, after the CR, will be little over 3.5 cents.

Like I've stated above, this is a whole heap of guestimates but if I was ever to get back into this company, depending on how much capitol SM attempts to raise, I would be looking for an entry point at somewhere between 3.5 and 4 cents. That's if SM could ever restore my faith in his management capabilities and I became a believer in the potential of SEG's tenements.

Anyway, just food for thought.

GLTA and have a great Easter,

Rhama