value, page-56

Hi Cali,

thanks for posting TAS's CNJ holding valuation! Very much appreciated and saved me some time!

At the current SP I believe that TAS is actually the better buy, however, the concentration at the moment is almost entirely on EDE and EdenCrete so TAS rarely gets a mention in the EdenCrete announcements, press releases etc. This has made EDE an over performer and TAS an under performer, a fact that simply cannot be ignored by investors.

Although a lot of major investors will be aware of the EDE/TAS connection, they are currently taking the simplest route and buying EDE directly. Down the road, the longer investors have to research the EDE/TAS structure, and the higher the EDE market capitalisation becomes, the more likely there is to be a change is this current investor approach. When this happens I definitely see the TAS SP reaching parity with the EDE SP.

Although I believe that Greg Solomon (GS) wants to retain 100% ownership of EDE and EdenCrete, and I believe there is no reason to do otherwise, should a major concrete, chemical or admixture company take a significant share in EDE as part of a strategic alliance, this would certainly lead to a sale of part or of the entire TAS shareholding in EDE. News of such an alliance would lead to an immediate upward rerating of the value of EDE and a corresponding jump in the EDE SP. It goes without saying that the TAS SP would then also significantly appreciate as TAS’s shareholding in EDE is recalculated.

By the way, based on EDE’s closing price on Friday of .26 I calculate that the TAS SP should be worth exactly 35 cents including the value of TAS’s CNJ shareholding, but excluding any value placed on the Vulcan and Parkinson Dam prospects.

Although I firmly believe that the Vulcan prospect has enormous potential, the slump in base metals prices, specifically the iron ore and copper prices, have rendered this prospect currently not economically viable. Therefore it makes no sense to proceed with this project any further. Should the iron price move back up to US$100 per metric ton (currently about US$55) this would return Vulcan back to economic viability and thus warrant further exploration and development of this exciting propect. Having said all this, EdenCrete is TAS’s Vulcan prospect and as such all of TAS’s resources, both capital and personnel, are best invested 100% in EDE and EdenCrete.

Best regards!