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Target Size: $300MM, Return: Risk-Adjusted 30% After-Tax, Investment Period: 5 Years

Investors hunting for outsized returns should seek sectors where capital is scarce. Capital into the precious metals sector is historically the inverse of capital into the technology sector. The current environment is ideal for investment into the precious metals sector.

In recent years, record central bank gold purchases highlight the world moving away from a uni-polar world to a multi-polar world that appreciates gold as a neutral monetary asset. Economic sanctions and geopolitical conflicts in Europe and Middle East have led to the decline of the petro dollar trade; heightening the search for safe alternative assets.

Gold is the ultimate contra cyclical investment hedge against adverse fiscal and monetary policies such as federal debt spending and monetary debasement that impacts long term debt service sustainability and the U.S. dollar as a reserve asset.

The Golden Opportunity – Gold prices are at record high in 2024. Central bank purchases at modern record levels. Conversely precious metals equities are trading at extreme low valuations versus underlying gold asset, versus the S&P 500, versus technology sector, and versus historic NAV levels and reserves in the ground.

Mining equity shares are a much cheaper way to own gold assets. Miners historically have a 3:1 leverage to gold prices and provides positive leverage to gold performance. Gold is set up for an extended cyclical bull run.

NYSE ARCA GOLD BUGS INDEX(HUI)/GOLD PRICE

Allocation Opportunity – Gold is severely under-owned by Western portfolio managers. 71% of money managers have only 0-1% exposure to gold. The Top 15 Precious Metals Stocks make up only 1.49% of the Magnificent 7.

Severe Lack of Capital Flows – In addition, capital flight from the sector has created opportunities to fill the capital void by providing project financing, purchasing development assets at steep discounts to capital spent, providing mezzanine financing, and purchasing publicly traded assets at historically low valuations.

Secret Sauce – This award-winning fund manager has been presented with opportunities to invest in assets on a continual basis through contacts developed over the past 40 years within the precious metals mining industry.

The precious metals industry is a capital-intensive industry that is in constant need of capital. Capital sources can be overwhelmed with opportunities that must be expertly filtered in a disciplined manner. This is where the Sponsor can leverage his experience and deep industry contacts to know which projects will be winners and invest in management teams that are capital creators. The Sponsor’s deep industry expertise provides a competitive advantage to deliver superior returns on investment.

Type of Investments
• Purchase publicly traded precious metals equities from large cap to micro-cap at deep discounts
• Mezzanine financing for pre-IPO companies from exploration, development or production
• Financing as lead investor with preferred terms, such as warrants tied to debt
• Production expansion financing to junior producers
• Development financing to allow companies to add value to projects (feasibility studies and permitting)

Undervalued Public Equities
Opportunistically purchase deep value publicly traded precious metal equities from large cap to micro-cap. The greatest opportunities are in junior miners, and development firms on the verge of cash flow and value creation through the drill bit.

Identify unique circumstances where capital and time are already spent, while being underappreciated by the markets. Targeted returns 100%+ in a precious metals bull market.

Targeted Investment Examples
Provide project financing to a South American gold producer for mill expansion – one year payback, 15% interest rate, 3-year warrants. Outcome – Targeted return 30%+

Take private or major equity interest in a publicly-traded development company with 2 million ounce reserve plus 2 million ounce resource on previously mined site in a mining friendly jurisdiction currently trading at $4 per ounce versus $40 per ounce average for development assets.

Finance feasibility study and permitting. Outcome – package for re-sale after taking up value curve – Targeted return 500%+

Opportunistic asset acquisition
Acquire undervalued producing and development assets that no longer fit in portfolios of major miners due to change in strategy or adjustment in size criteria from rationalizing asset portfolios.

Participate in syndicate or lead investor depending on transaction size and structure. Targeted return 100%+

Investment Process – The Sponsor relies on thorough desktop review, in person meetings with management teams, site visits, industry contacts, and outside consultants for technical reviews once an investment opportunity has been identified to see if it meets the investment criteria for an acceptable rate of return.

Experienced Management Team and Excellent Track Record
The management team has worked together for decades and include 3rd generation of family in the precious metals sector. Other team members have decades of experience in trading and defensive investment strategies.

The Sponsor is from a gold mining family that founded and financed a U.S. gold mine from discovery/production to closure, and has over 40 years of experience in the precious metals sector.
He is one the longest tenured portfolio managers in the precious metals sector, and has been recognized as the top precious metals equity manager in the business.

The firm’s five star rated gold fund has the best performance over three, five, and ten-year investment periods. The Sponsor’s extensive experience and proven excellence creates a value opportunity for investors.

Oxstones Real Estate, www.Oxstones.com  CRE@Oxstones.com

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