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Re: None

Thursday, 02/03/2011 6:16:22 AM

Thursday, February 03, 2011 6:16:22 AM

Post# of 7752
Dilution occurs when a company issues stock without increasing the potential profitability of the company.

Here is my case why Tao Minerals is not engaged in dilution. The company has taken a threefold approach to reach profitability.

1. TAON is improving security so that normal business activities can take place.
2. TAON is verifying the resources in its current holdings. This can lead to the necessary documentation to provide financing without increasing the number of shares that are outstanding.
3. TAON is actively engaged in acquisitions. This provides the potential for long-term stability and broadens the company's risk base.

These are all justified reasons for a Junior Mining Company to issue shares. When this is added to Tao Minerals full disclosure it makes the case that the company is not content to be a simple Junior Mining Company and is reaching for bigger and better prospects.

Bob

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