XRI | Fountain Quail

September 30, 2020

Chilean Mining Opportunity

Information Packet

September 30, 2020

xrifq.com

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Chili Mining Project – Introduction September 30, 2020

Opportunity Treat Chilean mining water and tailings deposition for the purposes of recycling it for mining
Synopsis operations. Currently, the mining industry sources its water from rivers or the ocean and
then “disposes” of the wastewater in large pits. There may also be an opportunity for
building and operating pipelines.

Opportunity Cypress Global Partners LLC (“CGP”). is an Oklahoma LLC that focuses on developing
Originator attractive projects throughout the world with a special interest in the development,
processing, recycling, and repurposing of water.

XRI’s Role Provide capital, technical, and operational support for a “design, build, own, and operate”
(DBOO) water treatment project in the country of Chile.

CGP’s Role Provide Chilean business entity. Provide customer contacts and introduction. Offer advisory
services on Chilean regulatory and cultural nuances. Stay with the deal once operational and
provide ongoing account management assistance.

Customer The customer and counter party to a DBOO contract would be a partnership between
AngloAmerican and Pucobre.

AngloAmerican (www.angloamerican.com) is a South African multinational mining company

based in Johannesburg, South Africa and London, United Kingdom. It is the world's largest
producer of platinum, with around 40% of world output, as well as being a major producer
of diamonds, copper, nickel, iron ore and metallurgical and thermal coal.

Pucobre (www.pucobre.cl) is a Chile-based mining company engaged in the exploration and

exploitation of mineral resources, primarily copper in the Ill Chilean Region of Atacama.

Location The area in which the operations would take place is near a mining town called Copiapo,
located in northern Chile’s Atacama Desert. Copiapo is in UTC-4 time zone, or one hour
ahead of the US Eastern time zone. The population is 129,091, most of which are Roman
Catholic. The area receives 19 inches of rain per year, roughly equivalent to Sacramento, CA
or Salt Lake City, UT.

Pilot CGP’s current dialogue with the Customers lends us to believe that a paid pilot may be
required prior to commercially-scale operations.

Treatment We are awaiting information from the Customer regarding the water quality analysis and key
Details performance indicators for treatment.

Treatment We are awaiting information about treatment volumes. Anecdotal statements suggest that
Volume the treatment demands might be “millions of liters per day.” 1 million liters equals 6,289 bbl.

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Chili Mining Project – Introduction September 30, 2020

Current Water Most mining water in the area is sourced from a local river through the municipality. Some
Sourcing water is also sourced from the ocean, which is approximately 40 miles away. As far as we
Solution know, companies have not recycled wastewater as mining water simply because they have
not had to. Significant constraints on local freshwater supplies in addition to changing
environmental regulations are forcing mining companies to consider recycled mine water as
a replacement for fresh water.

There have been recent investments in 100 to 300 km long 3-meter diameter pipelines to
get the required water to the mining companies. Nevertheless, some mining water is still
trucked in at high cost.

Local Wages Mining jobs generally pay better than other skilled labor workers in Chile. According to CGP,
workers make 12% to 25% of what an equivalent US worker would make.

Chile – Country According to Wikipedia:

Considerations “Chile is a World Bank high-income economy with high living standards. It is among South
America's most economically and socially stable and prosperous nations and it leads Latin
American nations in rankings of competitiveness, income per capita, globalization, state of
peace, economic freedom, and low perception of corruption. It also ranks high regionally
in sustainability of the state, and democratic development. Currently it also has the lowest
homicide rate in the Americas after Canada. Chile is a founding member of the United
Nations, the Community of Latin American and Caribbean States (CELAC) and the Pacific
Alliance, and joined the OECD in 2010.”

Chile is Spanish-speaking and predominantly Christian with a population of 18 million.

Currency is the Peso (CLP)

763 Peso = 1 USD

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Copiapo Chile September 30, 2020

Copiapo, Atacama, Chile (420 miles north of Santiago)

Silver and copper mining town

Population: 129,091

Elevation: 1,280 feet

Precipitation: 18.8 inches per year

Climate: Desert with moderate temperatures like coastal California

A one-stop trip from Dallas to Santiago takes 15 to 20 hours of travel time

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Diligence Questions for CGP September 30, 2020

Administration • Where is the nearest airport?

• What is the strength of the local industrial supply chain?
• How far are the mines from Copiapo?
• What is the legal name of the in-country Cypress entity and what is the ownership
structure?
• What is the organization and ownership structure of the customer(s)? What are the legal
names of the customer counterparties to any recycling operation?
• What is the name of the Environmental Minister? What is her position on the topic of
mining wastewater recycling?
• What other key political players should we know and study?
• What is the governmental legislation/regulation that is driving changes to recycling?

Mining For each mine:

Information • Names and locations?
• Ownership?
• Minerals extracted?
• Expected life?
• Are these mines proven or are they “exploratory”?

Water • What is the water quality of the mining water to be treated?

Treatment • What are the problem constituents for recycling?
Information • What are the key performance indicators for recycling?
• Where would separated solids from the treatment process be disposed, and at what cost?
• What treatment rate would be required for the pilot?
• What would be the expected treatment rate for a commercial facility?
• How close are the holding pits to the point at which the mining water is needed? In other
words, is the untreated water stored near where the treated water will be needed?
• What is power availability like in the area? Is 480 V / 3-phase electric available?

Recycling • Where have companies typically sourced water and disposed of wastewater?
Information • Why haven’t companies traditionally recycled?
• What do companies pay to source mining water?
• What do companies pay to dispose of wastewater?
• Is wastewater actively disposed or just stored and allowed to evaporate?
• Are there expectations that we will treat only what is being produced and recycle it, or is
the expectation that we’ll also deplete currently stored wastewater?
• Is there any water lost in the mining operation? For example, during fracs it is not
uncommon to lose half or more of the water to the reservoir. Is there such loss in mining?
• Does the amount of water consumption and wastewater generation for a mine change
over time?
• Who makes the buying decision to move forward with our team and what does “winning”
look like for that person/team?

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