1. Got Gold? Houston Investors Association April 9, 2016

2. Intro My journey into metal commodities investing began in 2003 Today’s presentation will focus on Gold Video presented at the Mines & Money conference in London in early December The purpose of Gold and other PMs in my portfolio Possible ways to invest in Gold (and other PMs)

3. Video by Grant Williams Portfolio and strategy advisor to Vulpes Investment Management 30 years of experience in finance Writes the popular investment letter “Things That Make You Go Hmmm.....”

5. Why Gold (and other PMs)? Gold and silver have been money for 1000’s of years, etc. PMs as “wealth insurance” – Unprecedented global debt with very low economic growth: currency debasement, loss in CB faith, negative interest rates, war on cash – Ray Dalio, Bridgewater: “If you don’t own gold, you don’t understand history or economics” – Stanley Druckenmiller: 3Q15 purchased $300M Gold – Alan Greenspan: “I haven't been optimistic for quite a while and I won't be until we can resolve the entitlement programs. Nobody wants to touch it, but it's gradually crowding out capital investment, and that's crowding out productivity, and that's crowding out the standards of living… and you get an extraordinary demand for entitlements and all sorts of programs which are not funded. Why? Because why do they need to be funded? We just print the money.” Speculation for profit, especially from leveraged PM plays

6. Gold Demand Strong and increasing investment demand from Asia CBs have been net buyers, particularly Russia and China Historically very low investment allocations in the US, far below the mean by a factor of 6 Starting in 2H15, US investment demand for gold started increasing substantially Yet, supply only increases at about 1.5% year historically, and forecast to be flat this year and declining in the future

8. Increasing Production Requires Higher Gold Prices Ore grades continue declining – 1.1g/mt avg Ex-China, Produce about 90M oz/yr, but only finding 50M oz/yr Mining business much more difficult than O/G At anywhere near current prices, supply is very constrained Constraints: Talent, Capital, Geopolitical/Legal, Environmental, Labor, Topography, Metallurgy, Infrastructure, Luck

9. I Like Silver Better I think silver has more upside than gold – Consumed, growing PV demand – Cheap: Silver is mined at a rate of 10 times gold, only 17.5 times greater concentration in the earth’s crust, but gold price is currently 81 times silver

10. Investment Options Bullion coins, bars, rounds “Junk” silver coins Commodity ETFs (caution) Unallocated Gold Accounts (NO!!!) BitGold Stocks of mining and royalty companies Mining ETFs Mutual Funds

11. Where I Purchase Bullion American Precious Metals Exchange: apmex.com SD Bullion: sdbullion.com Texas Precious Metals: texmetals.com

12. If You Want Physical... Don’t wait too long to begin acquiring Sharp demand increase could make it difficult to find Resulting in rapid increases in both spot prices and premiums

13. So.... Do You Care Now?

14. Questions and Discussion

15. Supplemental Slides

16. Some Gold Facts Nearly all the gold ever mined, about 188,000 mt, still exists unlike other commodities which are “consumed” Production 2015: 3100 mt – Asia: 25% (China 17%) – Africa: 21% – Central and South America: 18% – Russian Federation: 16% – North America: 15% – Europe: 4% Demand in 2015: – Jewelry: 57% – Investment: 21% – Central Banks 14% – Technology: 8%

17. Some Silver Facts Most conductive metal (both heat and electricity) Most reflective metal 98% of industrial usage not recycled Production 2015: 31,000 mt Only 30% of supply comes from primary silver mines. The rest is a by-product of gold, copper, zinc, and lead mining Holdings in silver-backed exchange-traded products jumped 845.6 mt to 19,500 mt in March Mine production expected to drop in 2016 for the first time in over a decade and demand is set to outstrip supply for a fourth straight year

19. Many Uses for Silver Jewelry and Silverware Coins and Bars Electronics, Batteries Mirrors and Glass Coatings Solar Energy Chemical production Engine bearings Anti-bacterial: Medicines, Surgical Equip, Water Purification, Food Packaging, Clothing

20. Source of New Supply Majors haven’t been funding discovery projects Rely on the junior exploration companies to find and de-risk potential mines May then partner with or acquire the junior Small juniors don’t typically have access to the capital and the talent needed to bring a mine into production Exploration juniors much more risky to invest in, but offer much higher upside potential if they make a significant discovery

21. Stocks of mining or royalty companies (examples) Major Mining Companies – Agnico Eagle, Newmont, Barrick, Goldcorp, etc – Avoid South African miners Junior Mining Companies – New Gold, Yamana, B2Gold, Pan American Silver, etc. Royalty Companies – Franco-Nevada, Royal Gold, Osisko Gold Royalties, Silver Wheaton

22. More Speculative Stocks (examples) Junior Exploration – Kaminak, Canasil, Pretium, Dalradian, Amara, Northair, Orezone, Ausquest, Sarama, Kilo Goldmines, Ivanhoe Mines, West Kirkland Mining, Perseus Mining Prospect Generators – Mirasol, Reservoir Minerals, Riverside Resources, Midland Exploration, Millrock Resources, Evrim Resources