Ann: Investor Presentation, page-78

Hi nursery and espinsight,

Obviously, the main problem at the moment is that EDE currently has very little income from sales (which also makes valuing EDE very difficult). This is the reason why the MC of EDE has dropped dramatically since January 2017.

I know two "private equity" investors who would take over 100% of EDE in a heartbeat. Whilst this would appear to be good news, unfortunately they would offer significantly less than EDE's current MC i.e. both these investors are looking for an absolute bargain.

Both these "private equity" investors specialise in buying "distressed" companies.

There are two possible methods of buying a "distressed" company: buy the company to prevent it becoming insolvent, or wait until the company is officially declared insolvent, and then buy it from the insolvency practitioner. In both cases, the buy price will always be very low.

To be absolutely clear: a takeover by one of these "private equity" investor's would mean massive losses for just about every EDE shareholder.

This may not be necessarily so for the Solomon family, i.e. they could possibly still walk away with ca. A$10 million from such a "distressed" sale.

Considering that GS has received a salary of A$300K+ p.a., and this amount for over 10 years, such a sale for him personally would actually be a very lucrative deal.

I personally would be livid if GS suddenly decided to take a very low offer for EDE. Having said this, I doubt he will, due to the fact that EDE is at long last finally gaining good traction with EdenCrete, and EdenPlast is also about to hit the streets. Not to mention Optiblend, which is turning into a nice little earner. There is also the potential value of EDE's Hydrogen process and production, which although extremely difficult to quantify, should significantly increase, as the move to a global hydrogen-based economy intensifies.

The basic question at the moment is: what is EDE as a company really worth? On the basis of the recent valuation that my partners and I carried out, a MC of A$50 million appears to be very realistic. This figure has also been confirmed by the greater investor public, who have maintained a MC of $47 million for EDE over the last month or so. This is the real test i.e. what is the public investor prepared to pay for EDE? Obviously there are plenty of investors out there who think that EDE is worth 2.5 cents a share or A$47 million (which is why I am also currently buying at this level).

Finally, investors are only currently buying EDE at 2.5 cents a share, as they believe that the SP is going to increase, and therefore also EDE's MC. Before the end of this year, we will all know whether they have been right or wrong.

Wishing you both a pleasant evening.