Disclaimer These are all Reg D programs offered only to accredited investors through retail broker dealers The following presentation involves security-related products offered through the Broker-Dealer platform. This is intended for educational purposes only and should not be construed as a recommendation to purchase any security, including any that are discussed in this presentation. Always read a product prospectus before investing. Investors should understand that investing in strategies that are non-correlated to the stock and bond markets are not without risk. There can be no assurance that alternative investments will be profitable and will even outperform asset classes correlated to the stock and bond markets. These strategies are not suitable for all investors. Investors should be aware that alternative investments may be subject to certain fees, create taxable events, may be illiquid as well as the fact that no secondary market may exist. Products may not be available in all regions, or to all investors. All investments involve risk. There can be no assurance that investment objectives will be met. Past performance is not a guarantee of future results. Certain strategies may require a minimum investment. Individual situations can vary. The information presented should only be relied upon when coordinated with individual professional advice.

TrueNorth is a Real Estate Developer with a Tax-Savings Option As the developer, we underwrite three investment strategies for each property Develop to ‘Highest and Best Use’ The deals we specialize in focus on land sitting atop granite reserves – The Highest and Best use is to mine this granite Landbank for Appreciation and Future Growth The benefits of preserving the Land with a Conservation Easement

Keep in mind… Our experience with the tax code has allowed us to offer a conservation easement as an option The benefits of a conservation easement rely heavily on the establishment of the highest and best use of a piece of land This is the source of our deduction Our deduction comes from the profit given up by forfeiting rights to mine/develop a property, not from the property itself

TrueNorth buys the property from the owner Then underwrites three investment strategies for the partnership to vote on Mining Buy and Hold Conservation Members Vote

Conservation Option What is a conservation easement? The agreement between property owners and a land trust or government agency to preserve the conservation values. The IRS has four broad qualification categories: Relatively Natural Habitat: Fish, wildlife, or plants Open space for scenic enjoyment: Open space or park Public Goods: Municipality forest system Historical or Façade Easement: Historical Buildings To qualify as a deduction, the easement must be maintained in perpetuity in order to preserve the environmental aspects and characteristics and conservation values that exists on that property.

Why Vote for Conservation Easement? The answer is simple - To get a large tax deduction based on the sacrificed entrepreneurial profit; not the hard cost of the land. This deduction is allowed all in the first year As stated by the IRS code, up to 50% of your Adjusted Gross Income (AGI) can be reduced by this ‘Non-Cash Charitable Deduction”

Why would the Government incentivize this? To make sure that lands like these…

Don’t become like these

Our Process As any program that gives its benefit through a federal tax deduction would, conservation easements have attracted the attention of firms that unrealistically push the envelope in regard to these benefits (bad actors). TrueNorth purposefully constructs the project file with anticipation of an IRS audit. Technical aspects as well as the property appraisal are checked multiple times by third party accredited sources. The conservation easement option involves a level of complexity that takes years of planning. Conservation Easement Audit Techniques Guide

Using the published IRS examiners guide to conservation easements TrueNorth ensures Our projects start with IRS requirements in mind The property is held for at least a year and one day (long term hold) An in-depth, detailed business plan is developed MAI-certified appraisals are conducted and reviewed by a third party A land trust is identified and agrees to steward the property The environmental baseline study is performed Our biologist/ecologist has been known to spend up to 2 weeks on property

This value is based on the “highest and best economic use” Valuation of the Land Original tract of the land Potential Net Profit determined Test Holes & Geological Evaluation $20,250,000 Granite This value is based on the “highest and best economic use”

This is a Non-Cash Charitable Deduction, just like donating your Boat. Both require a certified appraisal and form 8283 However… Your boat is a $1:$1 deduction A Conservation Easement is a $4.50:$1 deduction $100,000 donation = $100,000 deduction $100,000 investment = $450,000 deduction This is because the government values the contribution based on the land’s “highest and best economic use”

Example of a Conservative Easement Investment* Non-Corporate Investor Development Budget for a typical Program = $4,500,000 Lost Economic Value of Donation to Conservation Easement= $20,250,000 Possible Federal Tax Savings = $7,492,500 (37%) Possible State Tax Savings = $1,660,500 (8.5%) If the conservation proposal is selected during the investor vote after the project is funded. The above examples are provided for illustrative purposes only. There can be no guarantees that any particular investment will generate similar returns. Furthermore, the effective tax rates will depend on an individual’s personal circumstances. The information contained herein is for informational purposes only and should not be construed as investment advice or as a recommendation or advice on legal or regulatory matters, accounting treatments, or tax consequences.

Who would invest $4,500,000 for $9,153,000 in Tax Savings? Example of a Conservative Easement Investment* Non-Corporate Investor Who would invest $4,500,000 for $9,153,000 in Tax Savings? Doctor/Lawyer/High-earning W2 employee Hedge Fund Manager/CEO/Executive Professional Athlete Entertainer (Actor/TV Personality/Internet Sensation) Any other High-Income Earning Individual If the conservation proposal is selected during the investor vote after the project is funded. The above examples are provided for illustrative purposes only. There can be no guarantees that any particular investment will generate similar returns. Furthermore, the effective tax rates will depend on an individual’s personal circumstances. The information contained herein is for informational purposes only and should not be construed as investment advice or as a recommendation or advice on legal or regulatory matters, accounting treatments, or tax consequences.

What are the limits? Example of a Conservative Easement Investment* Non-Corporate Investor What are the limits? The Tax Code allows for a maximum of 50% of AGI to be deducted for this type of charitable donation. (Exception: Farmer or Rancher can deduct 100% of AGI) Any unused deduction can carry forward until used- for up to 15 Years If the conservation proposal is selected during the investor vote after the project is funded. The above examples are provided for illustrative purposes only. There can be no guarantees that any particular investment will generate similar returns. Furthermore, the effective tax rates will depend on an individual’s personal circumstances. The information contained herein is for informational purposes only and should not be construed as investment advice or as a recommendation or advice on legal or regulatory matters, accounting treatments, or tax consequences.

How the Funding Amount is Calculated for an Individual $900,000 x50% $450,000 /4.5 $100,000 AGI Ratio Funding Amount If the conservation proposal is selected during the investor vote after the project is funded. The above examples are provided for illustrative purposes only. There can be no guarantees that any particular investment will generate similar returns. Furthermore, the effective tax rates will depend on an individual’s personal circumstances. The information contained herein is for informational purposes only and should not be construed as investment advice or as a recommendation or advice on legal or regulatory matters, accounting treatments, or tax consequences.

Non-cash Charitable Deduction “How do I benefit?” Non-cash Charitable Deduction In your pocket     Investment Due to the IRS Only Your tax liability goes from $271,141 to $107,887 while keeping $63,254 in your pocket due to the IRS If the conservation proposal is selected during the investor vote after the project is funded. The above examples are provided for illustrative purposes only. There can be no guarantees that any particular investment will generate similar returns. Furthermore, the effective tax rates will depend on an individual’s personal circumstances. The information contained herein is for informational purposes only and should not be construed as investment advice or as a recommendation or advice on legal or regulatory matters, accounting treatments, or tax consequences.

Most Beneficial to Highest Tax Brackets OR States with High Taxes Conservative Easement Most Beneficial to Highest Tax Brackets OR States with High Taxes If the conservation proposal is selected during the investor vote after the project is funded. The above examples are provided for illustrative purposes only. There can be no guarantees that any particular investment will generate similar returns. Furthermore, the effective tax rates will depend on an individual’s personal circumstances. The information contained herein is for informational purposes only and should not be construed as investment advice or as a recommendation or advice on legal or regulatory matters, accounting treatments, or tax consequences.

State with High Taxes (CA) Example - Conservative Easement Investment* State with High Taxes (CA) State Taxation of Income: 9 States Have No Income Tax at All 10 State that Collect Income Taxes DO NOT Allow Charitable Deductions 31 States Allow Charitable Deductions against Income (as well as Washington D.C.) Example: High Income Earner in California If the conservation proposal is selected during the investor vote after the project is funded. The above examples are provided for illustrative purposes only. There can be no guarantees that any particular investment will generate similar returns. Furthermore, the effective tax rates will depend on an individual’s personal circumstances. The information contained herein is for informational purposes only and should not be construed as investment advice or as a recommendation or advice on legal or regulatory matters, accounting treatments, or tax consequences.

Example - Conservative Easement Investment* If the conservation proposal is selected during the investor vote after the project is funded. The above examples are provided for illustrative purposes only. There can be no guarantees that any particular investment will generate similar returns. Furthermore, the effective tax rates will depend on an individual’s personal circumstances. The information contained herein is for informational purposes only and should not be construed as investment advice or as a recommendation or advice on legal or regulatory matters, accounting treatments, or tax consequences.

State with High Taxes (CA) Example - Conservative Easement Investment* State with High Taxes (CA) If the conservation proposal is selected during the investor vote after the project is funded. The above examples are provided for illustrative purposes only. There can be no guarantees that any particular investment will generate similar returns. Furthermore, the effective tax rates will depend on an individual’s personal circumstances. The information contained herein is for informational purposes only and should not be construed as investment advice or as a recommendation or advice on legal or regulatory matters, accounting treatments, or tax consequences.

State with High Taxes (CA) Example - Conservative Easement Investment* State with High Taxes (CA) If the conservation proposal is selected during the investor vote after the project is funded. The above examples are provided for illustrative purposes only. There can be no guarantees that any particular investment will generate similar returns. Furthermore, the effective tax rates will depend on an individual’s personal circumstances. The information contained herein is for informational purposes only and should not be construed as investment advice or as a recommendation or advice on legal or regulatory matters, accounting treatments, or tax consequences.

State with High Taxes (CA) Example - Conservative Easement Investment* State with High Taxes (CA) If the conservation proposal is selected during the investor vote after the project is funded. The above examples are provided for illustrative purposes only. There can be no guarantees that any particular investment will generate similar returns. Furthermore, the effective tax rates will depend on an individual’s personal circumstances. The information contained herein is for informational purposes only and should not be construed as investment advice or as a recommendation or advice on legal or regulatory matters, accounting treatments, or tax consequences.

State with High Taxes (CA) Example - Conservative Easement Investment* State with High Taxes (CA) If the conservation proposal is selected during the investor vote after the project is funded. The above examples are provided for illustrative purposes only. There can be no guarantees that any particular investment will generate similar returns. Furthermore, the effective tax rates will depend on an individual’s personal circumstances. The information contained herein is for informational purposes only and should not be construed as investment advice or as a recommendation or advice on legal or regulatory matters, accounting treatments, or tax consequences.

State with High Taxes (CA) Example - Conservative Easement Investment* State with High Taxes (CA) Would you invest $163,222 for a potential $347,410 REFUND? Invest $163,222 GPP Tax Deduction Refunded $347,410 If the conservation proposal is selected during the investor vote after the project is funded. The above examples are provided for illustrative purposes only. There can be no guarantees that any particular investment will generate similar returns. Furthermore, the effective tax rates will depend on an individual’s personal circumstances. The information contained herein is for informational purposes only and should not be construed as investment advice or as a recommendation or advice on legal or regulatory matters, accounting treatments, or tax consequences.

Roth Conversion Example - Conservative Easement Investment* If the conservation proposal is selected during the investor vote after the project is funded. The above examples are provided for illustrative purposes only. There can be no guarantees that any particular investment will generate similar returns. Furthermore, the effective tax rates will depend on an individual’s personal circumstances. The information contained herein is for informational purposes only and should not be construed as investment advice or as a recommendation or advice on legal or regulatory matters, accounting treatments, or tax consequences.

Example - Conservative Easement Investment* Roth Conversion Convert Roth If the conservation proposal is selected during the investor vote after the project is funded. The above examples are provided for illustrative purposes only. There can be no guarantees that any particular investment will generate similar returns. Furthermore, the effective tax rates will depend on an individual’s personal circumstances. The information contained herein is for informational purposes only and should not be construed as investment advice or as a recommendation or advice on legal or regulatory matters, accounting treatments, or tax consequences.

Example - Conservative Easement Investment* Roth Conversion Client can CONVERT $700,000 of IRA to ROTH for $155,556 Investment. 22% Effective Cost to Convert If the conservation proposal is selected during the investor vote after the project is funded. The above examples are provided for illustrative purposes only. There can be no guarantees that any particular investment will generate similar returns. Furthermore, the effective tax rates will depend on an individual’s personal circumstances. The information contained herein is for informational purposes only and should not be construed as investment advice or as a recommendation or advice on legal or regulatory matters, accounting treatments, or tax consequences.

Example - Conservative Easement Investment* Roth Conversion Client can CONVERT $700,000 of IRA to ROTH for $155,556 Investment. Do You have ANY Clients that would Convert to ROTH for 22 CENTS on the Dollar? If the conservation proposal is selected during the investor vote after the project is funded. The above examples are provided for illustrative purposes only. There can be no guarantees that any particular investment will generate similar returns. Furthermore, the effective tax rates will depend on an individual’s personal circumstances. The information contained herein is for informational purposes only and should not be construed as investment advice or as a recommendation or advice on legal or regulatory matters, accounting treatments, or tax consequences.

Example - Conservative Easement Investment* Roth Conversion Client can CONVERT $700,000 of IRA to ROTH for $155,556 Investment. Do You have ANY Clients that would Convert to ROTH for 22 CENTS on the Dollar? Could you GROW Your Business using ADVANCED ROTH CONVERTION Strategies? If the conservation proposal is selected during the investor vote after the project is funded. The above examples are provided for illustrative purposes only. There can be no guarantees that any particular investment will generate similar returns. Furthermore, the effective tax rates will depend on an individual’s personal circumstances. The information contained herein is for informational purposes only and should not be construed as investment advice or as a recommendation or advice on legal or regulatory matters, accounting treatments, or tax consequences.

Example - Conservative Easement Investment* Roth Conversion Client can CONVERT $700,000 of IRA to ROTH for $155,556 Investment. Do You have ANY Clients that would Convert to ROTH for 22 CENTS on the Dollar? Could you GROW Your Business using ADVANCED ROTH CONVERTION Strategies? Be the EXPERT in Your Niche. Differentiate yourself from the Crowd! If the conservation proposal is selected during the investor vote after the project is funded. The above examples are provided for illustrative purposes only. There can be no guarantees that any particular investment will generate similar returns. Furthermore, the effective tax rates will depend on an individual’s personal circumstances. The information contained herein is for informational purposes only and should not be construed as investment advice or as a recommendation or advice on legal or regulatory matters, accounting treatments, or tax consequences.

In summary Our real estate programs offer a conservation easement option Our members vote and if a conservation easement is chosen it results in a substantial current year tax deduction TrueNorth in 2018 provided $140,000,000 in tax deductions for our investors

Questions?

David Babinski Call or Text - 321-594-1040 DavidBabinski@TrueNorthResources.net