Krugold Resources, Inc.

L-16 | 20th Street | 1000 Monrovia

10 Liberia | West Africa | krugold.com

TRANSACTION HIGHLIGHTS
COMPANY Krugold Resources, Inc. – well networked locally and internationally

President Fida Sardar Hussain (Geotech. Engr. / MBA)

e. fida@krugold.com
c. 1-647-960-6388

Country Director Leonard Wayne (Placer Mining Engineer)

e. leonard@krugold.com
c. +231-8866-04370

CITIZENSHIP OF COMPANY Canadian / American

TEAM American / Canadian: exceptionally experienced in mining, project and

corporate management, over 100 years of combined international
business experience.

BUSINESS MODEL Select a tenement with placer and lode gold potentials 2012
Develop placer gold deposits Ready
Commence placer mining to generate a quick cash flow 2019
Continue exploration and development of lode gold deposits Ongoing
Initial Public Offering (IPO) 2020

CONTROLS Rigorous internal and external reporting systems

ISO Certification within 18 months of placer production

LICENSED AREA 84,757 Acres

GOLD DEPOSITS Placer deposits (Phase I) at Nifo, Dubo, and Soboe, representing a
small portion of the licensed area; many additional areas identified
for exploration and development. The placer deposits alone can last
for more than two decades.
Exploration for lode deposits is ongoing

LOCATION Kru and Sinoe Counties, Liberia, West Africa

LICENSES:
Exploration Exploration and Development of all mineral resources – initial period
of five years, renewable progressively
Mining Placer – Class B License, renewable in perpetuity
Lode – as per Mineral Development Agreement (MDA) – Class A
Mining License for the life of Mine

GEOLOGY Classic granite-greenstone belt terrain that underlies Burkina Faso,

Ghana, Ivory Coast, Sierra Leone, Guinea, and Liberia – all holding
large gold deposits being mined by Western Companies such as
Newmont, IAMGOLD, Anglo Ashanti, etc.

ADJACENT / OTHER PROPERTIES Hummingbird Resources, Inc. (UK) at MDA stage with the
discovery of 5M ounces of gold deposits;
Avesoro Resources, Inc. (Canada) in production SINCE 2015;
 MNG Gold (Turkey) in production since 2016;
Several other companies at different levels of exploration and
development

TEST DATA Extensive Test Data by ALS Global Labs and Project Labs -
8,277 Test Results and over 20,000 Test Probes

MINERAL RESOURCES Bedrock hosted (Lode) Gold – in exploration

Placer gold deposit – Fully Developed, Ready for Mining

Probable Reserve and
Measured Mineral Resource (PMR+ MMR): 38MM3
Inferred Mineral Resource (IMR): 21MM3
Total PMR+MMR+IMR 59 MM3

AVERAGE GRADE 0.867g/m3 in situ

PRODUCTION CAPACITY 688m3/hour (900y3/hr)

WORKDAY 20 hours/day

AVERAGE GOLD PRICE $1,200 for Y1 - 1,304 over 6 years

VALUATION
Lode deposits TBD
Gross Value of Placer Deposits $2B of Three Placer Deposits

Net Present Value (NPV) $624M (100% of PMR, MMR, and IMR processed in 6 Years)
Partial Value (NPV) $408M (64% of the three deposits processed in 6 years)
TOTAL PROJECT VALUE TBD upon confirmation of lode resource

INVESTMENT PHASE I: US$16M

PHASE II: US$25M Debt
PHASE III (Lode): TBD (>$200M)

MATURITY Three years

BORROWERS Krugold Resources, Inc, or

An offshore special purpose vehicle (SPV) as per lender preference

PURPOSE Financing of hard and soft costs: Purchase of Mining Machinery and
Equipment (mostly American), working capital

SECURITY First charge on Company assets including gold deposits – allowed and
protected by local laws, which allow the lender to foreclose without
recourse to a borrower.

LOAN DISBURSEMENTS All payments directly to third-party vendors (builders, manufacturers,

and suppliers) by way of letters of credit, bank wiring, etc.

REPAYMENT Repayment of loans and repatriation of funds fully allowed by the host
country, Liberia
CURRENCY All local and foreign transactions including capital expenditure
and export revenues from gold in United States Dollars

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EXIT OPTIONS Earlier exit options include i) refinancing, ii) horizontal merger with a
strategic partner, iii) IPO and iv) combination of the aforesaid

SHORT GESTATION Production from Month 5

EBITDA Positive from First Year

SCALABILITY Phase I of a planned horizontally and vertically integrated mining

enterprise. Offers an excellent platform to enter and expand into the
African /Global Mining Sector

ROYALTY 3%, the world’s lowest, payable at the time of export

MARKET Export: 100% to Metalor Refinery, Marin, Switzerland

The gold market is expected to remain stable in the foreseeable future.
All production to be exported.

ENVIRONMENT The mining and processing technologies are environment-friendly. No

chemicals will be used in placer mining. Water to be fully recycled.
Simultaneous mining and land-readying for farming. No mounds of
tailings or ditches left behind.

ENERGY SOURCE Fully solar for camp and residential illumination by the second year

CURRENT STATUS Lode – Exploration in progress

Placer – Developed and ready for mining

COUNTRY Liberia, West African:

o Modeled on American System
o Emerging market and Underexplored mineral sector
o Favorable to Foreign Direct Investment
o Democratic and politically stable – power transfer through
general elections.
o Legal environment – well established, law firms staffed with
Ivy League schools’ graduates

LAWS Well-written mining laws allow and protect finances raised

against Company assets including, but not limited to, gold
deposits

AFRICA Holds more than 35% of the discovered global gold deposits, which are
being mined and developed by several Western companies.

TABLE 1. INCOME SUMMARY (41% OF MINERAL RESOURCE PROCESSED IN 6 YEARS)

Y1 Y2 Y3 Y4 Y5 Y6
US$
70% 75% 80% 85% 90% 95

85,414,155 128,197,495 140,162,595 152,645,826 165,665,617 179,240,994

REVENUE
EBIDTA 67,948,012 104,547,632 112,962,868 121,353,465 129,645,833 137,751,125

NET 46,714,924 73,641,300 79,698,610 85,383,100 90,967,876 96,540,898

INCOME

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 VALUATION SUMMARY SHEET
PMR + MMR = 38,255,468m3
PMR + MMR +IMR = 59,043,114.26m3

PMR + MMR PROCESSED IN SIX YEARS

USD %TAGE
REVENUE 100%
1,370,444,861
COGS 168,423,073 12%
OPERATING EXPENSES 64,220,282 5%
EBITDA 83%
1,137,801,507
EBIT 80%
1,096,755,539
NET INCOME 818,944,299 60%
FREE CASH FLOWS 817,248,526 60%
BUSINESS VALUE (USD) 412,057,826 30%
VOLUME PROCESSED (cubic meters) 38,147,376 100%
MODIFIED INTERNAL RATE OF RETURN (MIRR) 82%

PMR + MMR + IMR PROCESSED IN SIX YEARS

USD %TAGE
REVENUE 100%
2,093,361,122
COGS 10%
214,318,372
OPERATING EXPENSES 5%
95,560,330
EBITDA 85%
1,783,482,420
EBIT 83%
1,739,474,570
NET INCOME 62%
1,300,695,550
FREE CASH FLOWS 62%
1,290,435,117
BUSINESS VALUE (NPV) 30%
624,283,309
VOLUME PROCESSED (cubic meters) 59,043,114 100%
MODIFIED INTERNAL RATE OF RETURN 98%
(MIRR)

PMR stands for Probable Mineral Reserve

MMR stands for Measured Mineral Resource
IMR stands for Inferred Mineral Resource

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 MAJOR DCF ASSUMPTIONS:

o Average grade of 0.867g/m3 in-situ

o Processed @ 172m3/hour/machine in-situ
o The workday consists of twenty (20) hours
o CAPEX / OPEX of US$15.61M
o Gold price assumed at US$1,200/toz and hiked @ 2.5%PA, with a 6-year average of 1,304/toz)
o Operating expenses hiked @ 15%PA
o WACC @ 16.79%
o Income tax @ 25%
o Royalty @ 3% on the export value of gold

NOTE: All the above disclosures based on documentation, e.g., lease license, Capex/Opex, and DCF
schedules.

Figure 1. Krugold Organization

BOARD OF
DIRECTORS

PRESIDENT

MANAGER
EXTERNAL AUDITOR VICE PRESIDENT SR GEOLOGIST MANAGER
QA / QC
CONSULTANT OPERATIONS CONSULTANT HR / ADMIN
ISO

MANAGER
FINANCIAL OFFICER PROJECT MANAGER
MINING ENGINEER MANAGER SECURITY
INTERNAL AUDITOR GEOLOGIST MBA
PLACER

ASST. ENGINEER ASST. ENGINEER MINING DUBO CAMP

MINERAL RECOVERY (3 SHIFTS) MANAGER GEOLOGIST GEOLOGIST MANAGER
MANAGER LOGISTICS MINE SITE
GOLD ROOM ACCOUNTS PLACER LODE TESTING LABS

DU STATION
DREDGE MINING DUBO CAMP ASST. MANAGER
MINE SITE ASST. MANAGER
PURCHASES
Main Accounts
IMPORTS SAFETY / HEALTH
EXPORTS
MONROVIA OFFICE
FIELD STAFF DU STATION
3 SHIFTS Ledger Keeping ASST. MANAGER
TRANSPORT
TRANSIT
INVENTORIES MINERAL EXPORT
AIR / SEA / INLAND
MONROVIA
LAND MINING Ledger Keeping

PURCHASES
CESSNA PLANE LANDING CRAFT ALL OTHER VEHICLES
FIELD STAFF
3 SHIFTS

ASST. ENGINEER
MACHINE SHOP
MAINTENANCE

NOTE: Positions to be filled gradually

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