ERG>>>>MMD., page-2

re: ERG and ERGG JUNK BOND. For those that are interested

Please read the going concern qualification in the recent 4B annoucement.

Do not believe anything that comes from the company, eg where is the convertible note buy back.

If you are holding the ERGG Convertible Note issued at $13.50, todays trade $6.31 tells you everything. This is a JUNK BOND and everyone thinks it is a JUNK BOND so why hold the instrument. The market is telling you something do not ignore the signals. Lets hope they make the next interest payment.

For those mums and dads who hold the instrument for its yeild, hhhhmmmmm where there is a high yeild the risk levels are also higher. This is a simple equation. The old equation applicable to investment analysis takes place. HIGH RETURN>>>HIGH RISK. ERGG does not fit into the HIGH RETURN>>> Low RISK quadrant.

If this is true for ERGG it is also presumed to apply to the underlying script.

In respect of the share movements in ERG its all driven by traders, working on market volativity and general market liquidity. This environment festers greed and winners and loosers in market fluctuations.

This is not to say that greed is not good, however for every winner there is always a looser. The question is which side of the equation you want to be on. The choice may not be yours when the music comes to end.

HIGH RISK Share Traders have fun with this stock. Investors look to other opportunities.