Financial Strategy

Fast Cash Conversion

A investment strategy is focused on M&A of all businesses we invest in or grow them to undertake a public offering underwritten by a major institution. We focus on a “cash-and-carry” business with virtually no receivables that can cause un-expected losses within our portfolio of companies. Inventory to cash cycles can be completed in 36 to 48 months depending on the deployment life-cycle of each company or project within our portfolio of companies. While this is a positive factor, all contracting and distribution processes should minimize cash turnaround to improve operating cash flows for each business that we have within our portfolio.

Fast to Positive Operating Cash Flow

Projections show that the initial $500 million capital raised will yield positive returns for investors by Q3 2014. However, we must continue to manage cash tightly, as the compensation structure for SIDE members is tied to free cash available for distribution to Members from the sale or M&A activities of the portfolio companies that we invest capital towards. Each SIDE member will select investments of interest within our portfolio to target their capital for precision returns. A diversified percentage of earnings will be distributed across the board for all investors within SIDE to participate and enjoy if a liquidity event occurs with any of our portfolio companies.

High Value of Capacity

Each 40 tons of mine capacity adds an estimated monthly profit of $185,000 to Yendzi per month. Estimated payback period on capacity expansion is less than 8 months. Early reinvestment of operating cash flow will cause an enormous increase to the expected equity value of our portfolio companies over the minimum 3-5 year period Projected herein and should be a primary goal of the Company and all its investor limited partners.

High-margins vs. Large Fixed Costs

Open-pit extraction is largely based on up-front capital expenditures plus fixed and semi-fixed operating cost structures. These significant fixed costs are offset by outstanding operating cash contributions of each ounce of Gold produced; high margins quickly cover the overhead.

As such, cash flow is predominantly tied to the revenue factors (capacity, yield, sales price) and those must be managed closely. “Dry powder” cash management will be implemented during all production stages to manage operating liquidity and mitigate financial risks related to unanticipated disruptions to production or other revenue factors.

Low Depletion Rate Creates High Residual Value

Even by expanding throughput capacity to 145 tons per hour (a mid-sized operation), estimates show that we will deplete less than 55% of the Projected reserves through the end of 2012. Thus the property would have a residual value to Yendzi beyond the Projected $27 million in capital distributions to Yendzi members. Maximizing proven value of our reserve must remain a priority in our staffing and communications plans.

Business Sale a Possibilit:

High yield properties with proven returns may have significant sale/merger opportunities that allow earlier cash out for SIDE members. This means capital investments management and fund raising must be a continuous effort in 2011, 2012, and 2013 even in periods of high investment capital, in order to facilitate growth for our portfolio companies.

ROI vision and goals

We intend to deliver ROI that is attractive to our limited partners to help facilitate more capital commitments to present and future projects worldwide.

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