June Lake

Resort Development Analysis

Presented by: Peter Denniston MMSA President of Real Estate & Land Use

August 2, 2006

June Mountain
1. 2. Approximately 95,000 annual skier visits today Minimum on mountain improvements include Chair 1 and Chair 2 replacement, Chalet addition and renovation, wastewater improvements and snowmaking Estimated capital cost of $18-20 million Current yield per skier visit of $48.19 Resort Operating Income estimated to ultimately be 50% of Revenue (15% currently) 117,326 additional incremental skier visits required to support minimum on mountain capital improvements.

3. 4. 5.

6.

June Mountain - Improvements

Monthly Payment Annual Debt Service Additional Revenue Required Incremental visits

Project

Cost

Chair 1 Replacement Chair 2 Replacement Chalet Expansion Wastewater Improvements Snowmaking Total

$8,000,000 $4,000,000 $4,000,000 $400,000 $2,000,000 $18,400,000

$102,426 $51,213 $51,213 $5,121 $25,606 $235,581

$1,229,121 $614,557 $614,557 $61,453 $307,278 $2,826,968

$2,458,243 $1,229,114 $1,229,114 $122,907 $614,556 $5,653,936

51,011 25,506 25,506 2,550 12,753 117,326

10 year amortization-Prime +1% (9.25%)

Mammoth Mountain Incremental Skier Visit Analysis

Mammoth Occupancy Model Season Days Average Occupancy Ski Factor Heads Per Hotel Room Equivalent Skier Visits Per Hotel Room Equivalent Mountain 150 68.00% 70.00% 1.6 114.24

June Mountain Incremental Skier Visit Analysis

Additional Skier Visits required to support $18.4 million Phase I on mountain improvements (Per Carl William's Presentation on May 24, 2006 to the June Lake Coalition) Mammoth Occupancy Model Season Days Average Occupancy Ski Factor Heads Per Hotel Room Equivalent Skier Visits Per Hotel Room Equivalent Additional Hotel Room Equivalents Required Mountain 150 68.00% 70.00% 1.6 114.24 1,027 June Mountain 120 68.00% 70.00% 1.6 91.392 1,284

117,326

Real Estate Development Fundamentals

1. Project Feasibility market demand analysis, property constraints & opportunities and feasibility analysis Planning & Entitlements product programming, preliminary planning, community ascertainment, design, community & government approvals Design conceptual design, schematic design, design development and construction documents Sales & Marketing marketing team, marketing program & budget, public relations, advertising & promotion campaigns, sales office, sales launch & conversion Financing Equity raise, A & D financing, construction financing and take out financing Construction bid & award, off site and on site construction, punch list, turnover and warranty work Closings certificate of occupancy and unit closings Operations & Management homeowners association formation and operations

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5. 6.

7. 8.

Condo-Hotel Proforma Analysis

Item REVENUE Number of Units Average Sales Price NET SALES REVENUE COSTS Total Construction Costs Total Indirect Costs Contingency SUBTOTAL COSTS Total Land Costs Total Other Costs TOTAL COSTS NET PROFIT $427 $109 6.16% $563 $73 $141 $776 14.23% $256,245 $65,493 $15,783 $337,521 $43,588 $84,621 $465,729 $86,333 $58,936,316 $15,063,478 $3,630,000 $77,629,794 $10,025,265 $19,462,716 $107,117,775 $19,856,575 600 $1,011 $920 $552,062 230 $606,500 $126,974,350 sf or % Per unit Total

Condo-Hotel Proforma Analysis

Item COSTS Construction Costs Residential (net saleable/rentable) Parking Garage (400 square feet) Decks & Walkways Hospitality Commercial (net leaseable) Total Construction Costs 27,600 2,000 5,000 $427 138,000 included allocation included not included not included $256,245 $58,936,316 sf or % unit Total

Condo-Hotel Proforma Analysis

Item COSTS Indirect Costs Consultants Development Charges Marketing Costs Overhead & Fees Miscellaneous Total Indirect Costs $31.77 $27.66 $18.15 $31.58 $0.00 $109.16 $19,060 $16,596 $10,890 4.07% $0 $65,493 $4,383,862 $3,817,097 $2,504,773 $4,357,746 $0 $15,063,478 sf or % unit Total

Condo-Hotel Proforma Analysis

Item sf or % unit Total

COSTS Construction Cost Contingency

6.16%

$15,783

$3,630,000

SUBTOTAL COSTS

$562.53

$337,521

$77,629,794

Land Costs

allocated

$20,470

$4,708,046

Land Development Costs

allocated

$23,118

$5,317,219

Total Land Costs

$72.65

$43,588

$10,025,265

Condo-Hotel Proforma Analysis

Item COSTS Other Costs Financing costs Holding costs & Property Taxes Warranty Furnishings, Fixtures & Equipment Total Other Costs TOTAL COSTS NET PROFIT 7.58% 0.35% 0.25% $58.33 $141.03 $776.22 14.23% $45,968 $2,152 $1,500 $35,000 $84,621 $465,729 $86,333 $10,572,716 $495,000 $345,000 $8,050,000 $19,462,716 $107,117,775 $19,856,575 sf or % unit Total

Condo-Hotel Proforma Analysis

Item REVENUE Number of Units Average Sales Price NET SALES REVENUE COSTS Total Construction Costs Total Indirect Costs Contingency SUBTOTAL COSTS Total Land Costs Total Other Costs TOTAL COSTS NET PROFIT $427 $109 6.16% $563 $73 $141 $776 14.23% $256,245 $65,493 $15,783 $337,521 $43,588 $84,621 $465,729 $86,333 $58,936,316 $15,063,478 $3,630,000 $77,629,794 $10,025,265 $19,462,716 $107,117,775 $19,856,575 600 $1,011 $920 $552,062 230 $606,500 $126,974,350 sf or % unit Total