February 12, 2015 – Takota Asset Management releases favourable review of the prospects for Melior Resources.

(Abridged from client letter) – Melior Resources can best be viewed as a call option on the titanium dioxide market. Here is what we like about it.

1. With the project alterations currently being completed the Company should be able to deliver to Asia (mostly China but also Japan and Singapore) a better quality ilmenite (titanium ore) at the same cost as what the Chinese producers themselves can provide to the market in Asia.

2. The Project is debt free.

3. The decline in the Australian dollar will enhance the Project’s competitiveness as does a decline in the price of oil, which has reduced the cost of shipping.

4. Fourth but perhaps most importantly is the incentive to the individuals who vended the project to Melior and who make up senior management. They have an earn out which requires the share price of Melior to be at a minimum of .41 cents before they start to earn their shares and they only get their full allocation of shares at $1.11 per Melior share. Takota favours this kind of incentive based reward and obviously as the vendors are successful in earning their shares Melior shareholders stand to benefit substantially i.e. to a possible magnitude of 400 – 1200% return from current prices if the vendors are successful in meeting the criteria for their earn out shares currently held in escrow.

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