research

Cefadog,

I am research on whether to invest in ADS. Have read the occasional announcement over the last six months and looked at the presentation dated 27 March 2007. I wish to confirm some things:

1. Slide 3 indicates the number of shares on issue post acquisition/ exercise of options and conversion of notes will be 816.6M. At the current trading price of $0.19 this gives a fully diluted market capitalisation of $155.1M. Cash on hand is $4M. Proceeds from exercise of options in Dec 09 will be $16M;

2. Slide 8 indicates ADS net equity position in the projects via its 70% holding in Bariq Mining. This amounts to 35% for the Jabal Sayid project and 70% interest for the other projects. Does ADS (or Bariq mining) have any right to increase its holding of these projects over these percentages?

3. Slide 18 indicates the mineralisation potential of the Jabal Sayid project. It indicates 104MT at 1.33 % copper with further upside for zinc lode 1, gold/silver credits, lode 4 deeps and step out potential. Does your forcast for a 400MT at 4% copper relate to this project?

I am trying to do some comparison between CDU and ADS. Therefore get info on projected resource, ADS share of the resource and compare this to market capitalisation. Then do the same for CDU.

Regards

SP