Terra Energy & Resource Technologies Inc. (TEGR)

[Stock Lobster]

Creede, some calculations of potential PPS targets

The last PRs mentioned a fee of $2.5MM for a project. When I spoke to the IR guy (whose name is at the bottom of the press releases) I asked him if the company could anticipate doing 50 jobs a year. He said 50 or more. I asked if $2.5MM was an average fee for a job, and he said yes. Note: This estimate does not include any revenue from any mining project participation, nor any "success fees" as mentioned in recent PRs.

50 jobs performing STeP prospecting would give CPPT gross earnings of $125MM/year

For profit, I am being very conservative, and estimating only 10%. Industry standard is at least 28%, and some firms may exceed that level of profitability.

Multiplier for the gas/oil services industry is 10-21. I will use 10, again to be conservative. Multipliers are often higher when there is growth in an industry, which I believe there is for technology like CPPT's. Nevertheless, I'll use the lower number

Finally, OS is 43MM

Rough gauge of target share price for CPPT:

$12.5MM/43MM = .29

x 10 (base industry multiplier)

= $2.90/share

if profit margin is higher (28% industry standard)

$35MM/43MM = .81c

x 10 = $8.00/share, x 20 = $16.00 share

I include that last scenario in case excitement about the technology builds, and industry penetration and revenue growth is forecast to exceed expectations