In EDM's situation, this EFF needs to be structured in a more...

In EDM's situation, this EFF needs to be structured in a more specific manner since we know exactly how much we need for what purposes and when.

Instead of a standard EFF, the contract should be fixed on the drawn down quantum and the dates. No floor, no volume limit.

Here is how I would structure it:

- 3% upfront paying escrow till end July 2012 (not six month)
The reason being the JORC and drilling season for BF will end by June 2012. This will prevent Roswell pushing down the SP leading up to the JORC ann.

- Upon issue to upfront fee, $5m to be release for the purchase of Baita Mine in Nov.

- $2m to be released for the drilling expense of BF in Dec.

- after that, the contract can be reverted to the 15% volume/value limit and floor.

The season being that if we have Baita Mine and the drilling expense fully funded, the SP of EDM will be above 1.5c. The 10% volume/value will be more realistic in future drawdown in tranches of $300k.

Without Baita and BF expenses fully funded, the Roswell EFF is as good as AGCS par the escrow.