EGA Shareholder Action Group, page-45

The error is corrected.

There is significant upside in the EGA resources and the reserve upgrade by 20% demonstrates it.

The $0.40 offer is opportunist and cheeky.

Once in full production and using cashflow to fund exploration they should be able to comfortably extend mine life. I sat in a presentation watching management say how great the resource and the upside is ...



This is just laziness by management to finance the project themselves, and gold projects are easier to fund than many other types of resources.

On the subject of P/Es ... just picking a few off the top of my head and looking them up I get an average of 30.0. Sentiment is strong for gold stocks at the moment.



So using a P/E of 10.0 is fair once they are in full production ... and is sufficient to account for dilution from any equity that would be required as part of a financing package. But gold projects are in a good position to achieve a high ratio of debt-financing.

Revised target $1.67 ... still represents significant upside.