Ann: SER Business Review 2011 , page-20

sunman, there HAS to be an IPO or merger with a listed company or this deal will definitely not proceed.

No major investor is going to agree to have our Uley equity transferred into a privately held company as we could be diluted down to next to nothing and how exactly then do you sell your equity and who to? It just can't happen that way.

You keep referring to Big Mack & the Indian deal as significant events when they are not. Big Mack, if I remember correctly, was simply a Mega paper exchange for exploration rights and the Indian deal seems to be based on a technological/marketing exchange basis. There doesn't appear to be any significant exchange of cash in either deal making it very difficult to put a valuation of any consequence on either deal.

Mega is scrambling around trying to build a basis for an IPO that needs a valuation 3/4 times the size of Northern and Focus and if you have a look at the way both those SP's have travelled over the past months you should understand the task Mega have in front of them to come up with a $210M valuation.