April 2020 Disclaimer The value of the investment may fluctuate. - - PowerPoint PPT Presentation

April 2020

Disclaimer

The value of the investment may fluctuate. Past performance is no guarantee of future results. Investors may not get back the amount they have invested in the fund.

2 ATTENTION! THIS INVESTMENT FALLS OUTSIDE AFM SUPERVISION. NO LICENSE AND NO PROSPECTUS REQUIRED FOR THIS ACTIVITY.

Te a m P l e t h o r a P r i v a t e E q u i t y

Douwe van Hees

Fund Manager

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• 2008-2013: Private investor in junior

exploration companies

• 2010: Working for a junior exploration

company in Canada

• 2013-2014: Advisor PPM Fund
• 2014-now: Manager PPM Fund
• 2018-now: Manager PPE Fund

Peter Vermeulen

Advisor

• 2007: Master of Economics – Finance

& Investments (University of Groningen, The Netherlands)

• 2012-2014: Founder & manager

PPM Fund

• 2014-now: Advisor PPM Fund
• 2018-now: Advisor PPE Fund

Thomas Kwant

Corporate Secretary

• 2012-2013: Consultant KP&T
• 2013-2014: Consultant A&P Support
• 2014-2017: Accountmanager MVGM
• 2018-now: Corporate Secretary PPE

Investments

P l e t h o r a P r i v a t e E q u i t y

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Launched in January 2018 with C$ 1.7M of capital by the founders Building on the success of Plethora Precious Metals Fund (CAGR: +14.0% vs. -8.2% for the GDXJ*) Focus on early stage mineral exploration Return since launch: +34.0% as of end of 2019 Current assets under management: C$ 12.5M Return of capital to investors: 50% of net realized profits

*GDXJ – Junior Gold Miners ETF. CAGR = Compound Annualized Growth Rate. Figures as of April 10, 2020

F o c u s o n e a r l y s t a g e m i n e r a l e x p l o r a t i o n

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W h y m i n e r a l e x p l o r a t i o n ?

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Lack of capital for grassroots mineral exploration

• First mover advantage

Lack of new discoveries and decreasing mine reserves

• Perpetual demand for new discoveries by miners

Vast majority of public exploration companies is highly inefficient with limited available capital

• Decreasing odds of success

Large revaluations with IPOs of prospective exploration projects

• Liquidity and visibility premium

Observations

Incorporate private exploration companies → monetize after exploration success

Opportunity

L a c k o f c a p i t a l f o r m i n e r a l e x p l o r a t i o n

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L a c k o f n e w d i s c o v e r i e s

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D e c r e a s i n g m i n e r e s e r v e s

E x a m p l e : g o l d

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D e m a n d f o r n e w d i s c o v e r i e s ( b y m i n e r s )

E x a m p l e : n i c k e l

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Both nickel discoveries are comparable to a nickel discovery by Sirius Resources in 2012 Sirius Resources was acquired in 2015 by Independence Group for A$ 1.8 Bn

C o m p e t i t i v e e d g e P l e t h o r a P r i v a t e E q u i t y

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C$ 20,000 C$ 0 C$ 20,000 Public listing costs C$ 12,000 Legal and accountancy Office C$ 0 C$ 50,000 C$ 0 C$ 20,000 C$ 300,000 C$ 100,000 Management Marketing PPE company (16% G&A) Average public listed company (±50% G&A)

R e v a l u a t i o n o f p u b l i c c o m p a n i e s

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Dataset of 849 publicly traded junior exploration companies* Average market capitalization: C$ 18.9M Median valuation: C$ 5.6M Average book value PPE companies: C$ 1.2M *Listed on the Toronto Venture Exchange or the Canadian Securities Exchange as of 10th of April 2020

O u r p r o c e s s

Opportunistic: no specific focus on a single natural resource as we are commodity price agnostic

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Choose strong and stable mining jurisdictions Conduct fieldwork as soon as possible, focus on collecting hard data Incentivize the leading geologists (“Rock Stars”) with a significant share position Risk management: kill projects as soon as possible Hire world renowned field specific experts whenever needed. Upfront costs outweigh possible future misallocation of capital

R i s k M a n a g e m e n t : P h a s e d I n v e s t m e n t A p p r o a c h

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Phase 3 : Systematic field work relying heavily on geochemistry – Estimated costs C$100,000 Phase 4 : Anomalies identified, follow-up fieldwork to zoom in on target – Estimated costs C$400,000 Phase 2 : Incorporation and field “fatal flaw” testing concept – Estimated costs C$50,000 Phase 1 : Concept generation – Estimated costs C$10,000 Phase 5 : Possible geophysics and further fieldwork to refine target – Estimated costs C$400,000

R o c k S t a r s

Daniel James

Chief Operating Officer

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Exploration Geologist

• 2011-2018: President of Medgold

Resources leading an exciting new gold-silver discovery in Serbia (May 2018)

• 15+ years of experience in gold

exploration in Africa, Asia and Europe

Quinton Hennigh

Technical Advisor

Exploration Geologist (Ph.D)

• Currently chairman of Novo

Resources: Instrumental in the growth of the company to a market capitalization of >C$ 1 Billion

• 25 years of experience in worldwide

gold exploration for companies such as; Homestake Mining, Newcrest Mining & Newmont Mining

David Clark

Technical Advisor

Exploration Geologist

• Currently president of Bonavista

Resources

• 20 years of experience in mineral
• exploration. He has explored for Ni-

Cu-PGE magmatic sulphide, intrusion-hosted PGE, and orogenic and epithermal precious metals on projects in Canada, Mexico & Central America, USA, and Europe.

G l o b a l E x p l o r a t i o n

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Sweden

• Magmatic Ni (Co-Cu) sulphides
• Multiple occurrences staked and 3

projects optioned from third-parties

• SkyTEM survey identified > 25 possible

conductors

Newfoundland, Canada

• Epithermal Au in the Burin Peninsula
• Au-Cu discovery at Hickey’s Pond
• Attracted investment mid-tier mining

company

Ireland

• Irish- and SedEx-type Pb-Zn
• Two lead projects; Tallow & Castleblaney
• Drill-ready

Nevada US (Ubica)

• Optioned Au-Ag project
• Very high-grade mineralization
• CSAMT survey pending

Nevada, US (Da Venda)

• Epithermal Au-Ag
• Large-scale target generation

with 2 lead projects emerging

• Two project drill ready

Arizona, US

• Epithermal Au-Ag
• Multiple targets generated
• On-going early-stage fieldwork

Nova Scotia / New Brunswick, Canada

• Epithermal Au in the Avalon Belt
• Project killed after phased

exploration in 2019

• New project generation ongoing

Montenegro / Romania

• Epithermal Au, porphyry Cu & Pb-Zn skarn
• Early-stage targets generated
• Prime polymetallic exploration target

discovered after first pass exploration

I n s u m m a r y

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Generate concepts Incubate Explore Monetize

Return of capital to investors: 50%

• f net realized

profits

Write

• ff

Currently raising up to € 1M Closing date: May 1st, 2020 Subscription Price: -5/+5%

• vs. Year End 2019

F u n d S t r u c t u r e

Stichting Legal Owner Plethora Private Equity € 100,000 2 years 1 year 50% of net realized profits* 1% annually 20% of realized profits 0% 0%

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Custodian Minimum investment Initial lock-up Redemption notice Distribution policy Management fee Performance fee Entry fee Exit fee

* After deduction of performance fees. Please refer to the Information Memorandum for further information.

Douwe van Hees Fund Manager www.plethora-pe.com vanhees@plethora-pe.com +31 (30) 20 777 20 +31 (6) 14 514 692