Cryptogaz Ventures Ltd. P r i v a t e a n d C o n f i d e n t i a - - PowerPoint PPT Presentation

P r i v a t e a n d C o n f i d e n t i a l / A u g u s t 1 5 , 2 0 1 9

Cryptogaz Ventures Ltd.

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Confidential Information & Assumptions

Cryptogaz Ventures Ltd.

Strictly Private and Confidential

While the information contained herein is believed to be accurate and reliable by CRYPTOGAZ VENTURES LTD. (“the Company” or “Crypto”),

• r its agents, employees, officers, directors, shareholders or associated entities makes no representations or warranties, expressed or

implied, as to the accuracy or completeness of such information. This document is not an offer, recommendation or solicitation to buy or sell securities, nor is it an official confirmation of terms. This document is not meant to be and should not be distributed to any other parties. In furnishing this document, the Company reserves the right to amend or replace the document at any time and undertake no obligation to provide the recipient with access to any additional information. In all cases, prospective investors should conduct their own investigation and analysis of the Company and the data described herein. By accepting this document, the recipient hereof agrees to treat the information contained herein as strictly confidential. 2

Confidential Information & Assumptions

Cryptogaz Ventures Ltd.

Strictly Private and Confidential Assumptions: Unless otherwise stated in this Presentation, the models herein contained are based on the following:

• US$1 = CAD$1.25
• 1 Bitcoin = US$10,000
• All dollar amounts stated in this Presentation are Canadian dollars unless otherwise indicated.
• Bitcoin: The Company’s current focus is on the Bitcoin cryptocurrency. The models herein contained relate to Bitcoin

and not other crypto-currencies. Presentation Contents: If you new to Crypto-currency you are directed to review the Appendix first, which should give you the basics in order to move forward in your review of the CryptoGaz business model. 3

Business Summary

CryptoGaz Ventures Ltd.

Environmental and Economic Interests Protected The Problem Uneconomic & Not Environmental The Solution Bitcoin Mining Pilot Project; Complete Mining Contract Revenue $2.01 Million

CryptoGaz is on a mission to help the oil industry reduce routine flaring of natural gas. We are passionate about creating solutions that benefit the environment, local communities and energy

• producers. Our goal is to decrease the uneconomic and anti-environmental flaring and venting of

the natural gas and see the natural gas utilized for a purpose. Our company will use that natural gas to generate electric power at the well site and “mine” for crypto-currency (i.e. Bitcoin) using that electricity.

• It is uneconomic to produce natural gas at current prices.
• Provincial regulations often requiring the conservation (sale) of natural gas or the shut-in of the

well.

• Shutting-in a well exposes the oil and gas company to provincially regulated environmental
• bligations.
• On some occasions oil and gas companies are permitted to flare their gas production—releasing

green-house gases into the environment.

• CryptoGaz constructs power generators and Bitcoin miner operations on the well site. Thereby

turning an un-useable product (natural gas) into a valuable product (Bitcoins).

• CryptoGaz provides oil and gas companies with a fast, low cost and simple solution to natural gas

flaring or uneconomic natural gas production. Our service lets operators preserve or regain regulatory compliance, maintain existing production and facilitate future development. In turn through our use of the natural gas we are able to generate returns by “mining” for crypto currencies.

• CryptoGaz has completed its pilot project for a capital cost of $29,888. It has “mined”

CAD$17,954 worth of Bitcoin from one Natural Gas well over 60 days. Total forecast 12 month revenues from CryptoGaz’s current contracts is $2.01 million and EBITDA

• f $852,907.

4

Share Offering and Capital Structure

CryptoGaz Ventures Ltd.

Offering Capital Structure Exit Strategy Dividend / Go Public Management Compensation

CryptoGaz is offering common shares by way of private placement:

• Price per share:

$1.00

• Number of shares being offered:

500,000

• Percentage interest in CryptoGaz offered:

50%

• Closing date:

September 30, 2019 All funds to be utilized to complete “mines”

• n existing sites. No funds will be used to

compensate management.

• Go forward return to the investors is contemplated to be either a potential transaction to

take the Company public or pay dividends to the shareholders. Forecast cash flow shows available cash on deposit with the company of $500,000 as of June 1, 2020.

• Employees and consultants are not entitled to compensation unless and until the Company

has cash flow of over $50,000 per month. Shareholders Number of Current Current Percentage Shares/warrants Percentage Percentage after Offering Founder 400,000 shares 100% 80% 40% Employees & 100,000 warrants* N/A 20% 10% Consultants Offered Shares 500,000 shares N/A N/A 50%

*Employees and consultants are entitled to 100,000 common shares (currently represented by the warrants) upon

the Company having cash flow of $75,000 for 2 consecutive months. This is forecast to occur in December 2019.

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T h e P r o b l e m :

Natural Gas Crisis

CryptoGaz Ventures Ltd.

Environmental Damage Alberta Gas Companies lose money at this price

6

T h e P r o b l e m :

Natural Gas Crisis

CryptoGaz Ventures Ltd. 7

How precarious is the state of Alberta’s natural gas industry these days?

Just take a look at the City of Medicine Hat, proudly known as the Gas City, which has owned its own petroleum production arm for more than a century. Today, it’s producing about 6,500 barrels of oil equivalent (boe) per day from shallow natural gas and oil fields in southern Alberta and Saskatchewan. The average cost of its gas production is about $2.78 per thousand cubic feet (mcf). The spot price for gas at the AECO hub closed Thursday at 80 cents per mcf, about $2 below U.S. benchmark prices. You don’t need a sophisticated computer model to understand this gap means the city-owned utility has been hemorrhaging money. Facing such economics — and an expected cash loss of $35 million this year from its natural gas and petroleum resources division — the city is throwing in the towel on the lion’s share of its producing gas wells. Medicine Hat officials announced Wednesday the division will abandon more than 2,000 of its 2,600 active wells over the next three years and accelerate abandonment and remediation work. The city’s natural gas and petroleum resources division will eventually shrink from about 105 field and office employees to around 25 to 40 staff, although some may be redeployed by the city. The decision wasn’t made lightly, said Brad Maynes, the city’s commissioner of energy and utilities. “We are very proud of our gas history and our legacy . . . The city has benefited so much from gas over the years,” Maynes said in an interview. “We said to our residents, you should be very, very proud of this history, but we have to evolve to a new reality.” Natural gas has long provided energy, created jobs and generated wealth in Medicine Hat. Its petroleum assets have contributed more than $600 million to Medicine Hat’s treasury

• ver the past four decades, the city said.

But part of the industry is facing a fiery test these days. Following the failure of Trident Exploration Corp. last April, Medicine Hat’s decision should serve as a wake-up call to the acute issues facing the sector, particularly shallow gas producers. By the time the 2,000 wells are abandoned, the city unit’s total production is expected to fall to about 2,500 boe per day, only a quarter of the level seen four years ago. “We have been producing for over 100 years and we’ve had a great experience in the gas business, but the last three, four, five years have been very difficult for us,” said Maynes. “We could just not see ourselves returning to profitability.” The decision comes as larger trends are swirling about the

• industry. With the shale gas revolution in the United States

in the past decade, production in North America continues to rise. On Thursday, the U.S. Energy Information Administration reported natural gas production south of the border set a new monthly record in August of more than 91 billion cubic feet per day, up eight per cent from a year ago. Production has risen even as benchmark U.S. gas prices have dropped this summer, averaging US$2.37 per million British thermal units in July. In Canada, development of the massive Montney natural gas and liquids formation has also had an effect, bringing on large supplies of low-cost production. (Continued)

T h e P r o b l e m :

Natural Gas Crisis

CryptoGaz Ventures Ltd. 8

With pipeline constraints and seasonal maintenance issues on the Nova Gas Transmission Ltd. (NGTL) system, Alberta gas prices at the AECO hub have been volatile in recent years, even dropping briefly into negative territory. Industry veteran Hal Kvisle, who chaired the province’s natural gas advisory committee last year, said the situation in Medicine Hat underscores the fact shallow gas wells are challenged in today’s environment. “It’s also symbolic, in a way, of the bigger issue of mature, lower productivity gas producers trying to compete in a world where shale gas is swamping the system,” he said. Some producers have responded by shutting in production or abandoning wells. A report by Peters & Co. estimated natural gas production from Western Canada will fall this year for the first time in seven years. While gas prices in Alberta have been improving recently, they are still below the break-even point for Medicine Hat. Analyst Jeremy McCrea of Raymond James expects AECO gas prices will average $1.80 per thousand cubic feet in the fourth quarter — as the winter weather kicks in — and then $1.50 per mcf next year. Phil Hodge, CEO of Pine Cliff Energy, said all these changes are constructive, and the pricing outlook for AECO gas has been strengthening in recent weeks. “There is hopefully some sunlight on the horizon, but it’s still tough sledding,” Hodge said. “As we saw by the announcement in Medicine Hat, it may be too little too late (for some). There are a lot of companies struggling at current prices and each one is different . . . but if they’re losing money, they are only going to be able to do that for so long.” For Medicine Hat, three years of low prices and big losses were too much to ignore. It’s still Gas City, but unless something changes dramatically, it’s going to be producing a lot less gas in the coming years. Chris Varcoe is a Calgary Herald columnist.

Our Solution

CryptoGaz is on a mission to help oil & gas companies utilize their uneconomic natural gas.

We are passionate about creating solutions that benefit the environment, local communities and energy producers. Our goal is to decrease the uneconomic and anti-environmental flaring and venting of the natural gas and see the natural gas utilized for a purpose. Our company will use that natural gas to generate electric power at the well site and “mine” for crypto-currency (i.e. Bitcoin) using that electricity. CryptoGaz Ventures Ltd. 9

The Return

( f r o m o n e 5 0 m c f / d w e l l )

CryptoGaz Ventures Ltd.

This is Reality: WE HAVE DONE THIS

CryptoGaz has contracts resulting in:

• 765mcf/d production
• 1,418 miners
• $215,000 revenue per month
• $121,000 cash flow per month

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Proof of Concept

SUCCESS

CryptoGaz Ventures Ltd.

CryptoGaz 60 Day Trial:

Commencing May 2019 we put our theory to the test. Through an agreement with a private oil and gas company we installed a 80 kWh generator on an oil well which also included gas production of approximately 50 mcf/d. 61 miners were made

• perational. Total capital spent was $29,800 (Miners were

provided for free based on an agreed split of income).

CONCEPT TRIAL RESULTS (May 14 to July 14) Trial Concept Return / 30 days

Miners Activated 61 Total THash/s (30 day average) 24,936.27 Return Per THash/s During Period US$0.288 US$ Revenue $7,115 CAD Revenue (exchange $1.25) $8,854 Return on Capital will be:

• Capital Spent:

($29,888)

• Op Ex/mo:

($2,459)

• Revenue per mo (assuming a US$10,000BC):

$8,854

• Cash Flow

$6,435

• Return on Capital:

4.6 month

Results:

The first 30 days included repairs to the acquired generator and “other glitches”.

Return on Capital

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CONCEPT SUCCESSFUL IN THE U.S

CryptoGaz Ventures Ltd. 12

Contracts: Financial Forecast

CryptoGaz Ventures Ltd.

Contracts

Under the two contracts already entered into, CryptoGaz will have access to 765 mcf/d natural gas. This gas can be converted to 2,057 kW/h. Each Bitcoin miner requires 1.35 kW/h to run. Therefore, we can install 1,418 miners. Each miner generates $145 of revenue a month. Contracts Financial Forecast: $500,000 Private Placement

Accumulated Cash of $852,907. $352,907 if full $500,000 investment is returned

Contracts Complete After CapEx EBITDA of $121,000 per month

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Forecast Financial Returns From Contracts

CryptoGaz Ventures Ltd.

Financial Forecast From Contracts Performance: Contract Completion Date: April 2020 Financial Performance per Miner

Contracts Financial Forecast Contract Completion Monthly September 2020 (April 2020)) Thereafter (assuming no additional contracts) Gas (mcf/d) 795 765 765 Number of Wells 9 9 9 Miners 1,418 1,418 1,418 Revenue $1,154,376 $215,609 $215,609 Op Exp.

• $377,589
• $(59,630)
• $675,739

Lease Expense

• $125,000

Nil

• $125,000

(5 month lease to own) Capital Costs

• $632,546

Nil

• $632,546

G & A

• $178,250

$34,250

• $349,500

Total Cash Flow $598,537 $121,725 ç (Excluding CapEx) EBITDA

• $159,009

$121,725 $449,616 Share Issuances $500,000 $500,000 Cash on Hand $365,991 $949,616 Revenue / Expenses Per Month Revenue $145.80 Cap Ex/ Miner $(509.78) Op Ex & G&A/Miner

• $(63.16)

Cash Flow (excluding CapEx) $82.64 Payout On Each Miner 6.17 months

If we had to pay for the power (at $0.06/kWh) the return would be $35,703.

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Contract Plan

CryptoGaz Ventures Ltd.

Production Miners Revenue/Mo Op Ex Capital Cost Cash Flow/Mo 55 mcf/d 102 $14,862 $3,014 $139,750 $11,801 Production Miners Revenue/Mo Op Ex Capital Cost Cash Flow/Mo 400 mcf/d 741 $108,086 $4,554 $257,708 $103,532 Production Miners Revenue/Mo Op Ex Capital Cost Cash Flow/Mo 40 mcf/d 75 $10,809 $2,030 $64,033 $8,779 Production Miners Revenue/Mo Op Ex Capital Cost Cash Flow/Mo 200 mcf/d 370 $54,043 $3,381 $136,167 $50,662 Production Miners Revenue/Mo Op Ex Capital Cost Cash Flow/Mo 70 mcf/d 69 $18,915 $2,662 $60,000 $16,253 Production Miners Revenue/Mo Op Ex Capital Cost Cash Flow/Mo 50 mcf/d 611 $8,894 $2,459 Mining $29,888 $6,435 March 2020: Alliance January 2020: Grande Prairie #1, 2, & 3 November 201: 9 Parkland October 2019: Hanna September 2019: Veteran 21 August 2019: Veteran #1 Total Miners Total Cash Flow/Mo

1,418 1,316 675 560 130 61

$197,462 $185,661 $82,129 $73,350 $22,688 $6,435

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Contract Well Locations

CryptoGaz Ventures Ltd. 16

Financial Forecast 5 years

CryptoGaz Ventures Ltd. Annual Forecast

2019 2020 2021 2022 2023 MCF/D (Year End) (75 mcf/d per Month added) 310 1179 1548 1881 2180 Miners End of Period 575 2183 3629 4931 6103 Miners Added 575 1608 1447 1302 1172 Miners (Average During Period) 280 1419 2866 4168 5340 Revenue $321,664 $2,446,088 $4,939,354 $7,183,292 $9,202,837 OpEx

• $149,636 $($207,115) -$418,225 -$608,224

$(779,223) Capital Expenditures $(235,088) $(1,190,419) $(1,190,419) $(1,190,419) $(1,190,419) G & A $(41,250) $(411,000) $(461,000) $ (511,000) $(561,000) Financing (Debt or Equity) $500,000 Nil Nil Nil Nil Net Income (Prior to Cap Ex) $130,778 $1,827,973 $4,060,129 $6,064,069 $7,862,615 EBITDA (including Priv. Placement Funds) $395,690 $637,554 $2,869,710 $4,873,650 $6,672,196 Cash On Hand $395,690 $1,033,245 $3,902,954 $8,776,604 $15,448,800

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Bitcoin Mining and Value

CryptoGaz Ventures Ltd.

Bitcoin Mining Returns: The average return for each THash/s

generated by Bitcoin miners over the last 60 days is US$0.288. The mining return has been stable for over one year.

Future Bitcoin Price of US$20,000 is in correlation with previous Bitcoin pricing: As stated by Canaccord the

Bitcoin price action from 2011-2015 continues to provide a reasonably good road map for 2015-2019. This framework suggests a long-term recovery beginning in the April to May time frame, followed by a very slow climb back to old heights in March 2021”.

Bitcoin three fold increase in value in 2019: Bitcoin’s

value on December 31, 2018 was US$3,804. Its value on August 15, 2019 was $10,335.

Bitcoin is likely going to further increase in value:

Cannaccord Genuity stated in its spring 2019 Blockchain report that “we note that Bitcoin does operate on a four year cycle of sorts, as the halving of bitcoin’s mining reward occurs approximate every four years.…Looking ahead if Bitcoin were to continue following the same trend,, the implication is a slow climb back toward its all-time high of $20,000, theoretically reaching that level in March 2021”. Mining Profitability US$/day per THash vs. Average Bitcoin price per day (US$) Bitcoin value US$/day per THash

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Competitive Advantage

CryptoGaz Ventures Ltd.

• RETURN PER THash/s = Between US$0.25 and US$0.35 (Bitcoin miners earn money based on their “hashes” (think of a Hash being

a search for a coin) a Tera Hash (THash) is 1,000,000,000,000 Hashes). Currently the return is between US$0.25 to US$0.35 per

• THash. To determine the return please visit the following website: https://www.cryptocompare.com/mining/calculator
• S9 Miners: Our Miners (S9 Miners) produce 13.5 THashes per second (“TH/s”). Therefore, given the above metrics they create

revenue of CAD$145/month. They use 1.35 kW/h power. CryptoGaz’s pilot project confirms same.

• Return per Day of one S9 Miner: Given current Hashing rates and Bitcoin difficulty the S9 Miner will earn CAD$145/month.
• Our Competitive Advantage: The largest cost in the operating of a Bitcoin miner is the electric power it requires.

CryptoGaz will not face this cost. Currently a miner using electric power will have a return as follows:

COMPETITIVE ADVANTAGE Electric Power User CryptoGaz Hashes 13.5 THashes 13.5 THashes Power Consumption 1,350 w 1,350 w Power Cost CAD$0.06/kWh Nil Revenue (Monthly) CAD$145.80 CAD$145.80 Power Cost (Monthly) CAD$58.33 Nil Net Income (Monthly) CAD$87.47 CAD$145.80 CryptoGaz’s return will be 166% greater than the return of others.

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Management and G&A

CryptoGaz Ventures Ltd.

Management of CryptoGaz G & A

• Sabrina Tremblay: Director and CEO
• Keith Erickson: Director and VP Operations
• Malcolm Bukenberger: VP Technology
• Trevor Davidson: Manager, Engineering
• Mark Jenkins: Manager, Accounting
• Stacy Bilodeau: Corporate Administrator

Monthly General & Administrative Expense

Revenue Less Than Revenue over $150,000 $150,000 Employment & Consulting Nil $33,000 Office Lease $700 $700 Website and Phone $50 $50 Insurance $500 $500 Total $1,200 $34,250

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Contact Information

CRYPTOGAZ VENTURES LTD.

1150, 707 7th Avenue SW Calgary, Alberta T2P 3P8 Attention: Sabrina Tremblay Email: sabrina.tremblay@nrgdivestitures.com Phone: 403.869.7100 21

Appendix

CryptoGaz Ventures Ltd. 22

Crypto Currency And Mining

CryptoGaz Ventures Ltd.

What Is Cryptocurrency? What is Mining for Crypto Currencies What Is A “Miner’ Barriers to Entry

• Knowledge
• Cheap Power
• Facilities
• A miner is similar in size and shape as your desk computer.
• The miner is the key to Crypto mining. Its power to mine and the electric power it uses are

the key variables.

• New more efficient miners enter the market on a regular basis, making older miners less

efficient and available at a reduced price. As discussed below, the old miners are inefficient based on the electric power they use. CryptoGaz will not have an electric concern, so the old miners do not materially impact their performance.

• Given the available cash flow and the capital cost to equip a 50 mcf/d well ($68,500), cash

flow can be used to add revenue.

• Electric power at a low cost: Under the CryptoGaz model electric power is essentially free.
• Facilities: CryptoGaz has developed sea cans to contain their miners and which are placed on

well sites for a small ($3,000/yr.) rent. Miner’s generate heat. Canada (with its climate) solves much of that problem.

• Cryptocurrency is a digital or virtual currency that uses cryptography for security.

Cryptocurrency is difficult to counterfeit because of this security feature. Many cryptocurrencies are decentralized systems based on block chain technology, a distributed ledger enforced by a disparate network of computers. A defining feature of a cryptocurrency, and arguably its biggest allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or

• manipulation. The first block chain based cryptocurrency was Bitcoin, which still remains the

most popular and most valuable. Today, there are thousands of alternate cryptocurrencies with various functions or specifications.

• Crypto mining is a validation of transactions within cryptocurrency networks. For this effort,

successful miners receive a reward in the cryptocurrency being mined. The rewards are directly related to the number of other miners operating.

• The largest cost to mining is the electric power each miner uses.

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Why Bitcoin

CryptoGaz Ventures Ltd.

Bitcoin market capitalization is US$184,607,136,486 Minimal Mining Pool Costs: To mine for

Bitcoin we join a mining “pool”. The Bitcoin mining pool

• nly charges us 1% of our earnings.

Minimal Currency Conversion Costs: There is a small fee to convert Bitcoin to US

• dollars. This fee is only 0.5% of the amount to be

converted.

Preference for Mine for Bitcoin:

Although there are numerous cryptocurrency created, we have elected to mine for Bitcoin. This was largely because it appears to be the stable most utilized crypto-currency. Our mining can shift to mine for any

• ther currency at any time. As a result, if the Facebook

cryptocurrency begins to take on more transactions we can shift to it.

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Bitcoin Mining and Value

CryptoGaz Ventures Ltd.

Breakeven price for Mining:

Mining Breakeven: Canaccord estimated in May, 2019 that the breakeven for mining was a Bitcoin price of US$8,000 for miners incurring electric costs of $0.05/kWh.

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Natural Gas Crisis

CryptoGaz Ventures Ltd. 26

Natural Gas – Not Economic

CryptoGaz Ventures Ltd.

Alberta Energy Regulator Natural Gas Price Forecast does not see gas price exceeding $2.50 until 2022. Current Alberta Natural Gas Price (AECO Price): MINUS $0.10 per mcf Alberta Gas Price has been low and uneconomic for years. At a price below $2.50/mcf natural producers are losing money: A low case cost estimate for each mcf produced is:

Processing and Transportation: $1.22/mcf Compression (if required): $0.70/mcf Operating and Land Costs: 0.50/mcf Royalties: $0.18/mcf Total: $2.60 The above does not include any capital costs associated with bringing the gas to market (such as building pipelines to the Gas plant).

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Natural Gas: Industry Requirements to Produce

CryptoGaz Ventures Ltd.

Environmental Liabilities Need to Produce Natural Gas Natural Gas wells by regulation are required to incur a $55,000 loss The Alberta regulations have strict requirements as to when gas can be flared (or not conserved): Directive 60 requires

and gas over 32 mcf/d by conserved unless strict requirements are met. A well of over 106 mcf/d must be conserved.

Large Capital Cost to Conserve Natural Gas

• Natural Gas is an usual commodity to come with any oil well. That is, it is not uncommon to

find an oil well that also produces natural gas. It is not rare to find 1/3 of the production from a well being natural gas.

• In order to conserve natural gas, unlike oil (which can be trucked to the sales location),

Natural Gas requires a pipeline to the sales location. That pipeline may have to travel a great distance. The cost to build a pipeline is usually approximately $45,000/km.

• An oil and gas producer is subject to strict requirements to maintain an environmental asset

ratio above 1. A shut-in well, reduces that ratio. Our system avoids having to shut-in the well. 2.6 General Conservation Requirements at all Condensate Producing Sites and Crude Oil and Crude Bitumen Batteries These requirements apply to all condensate producing sites and crude oil and crude bitumen batteries unless otherwise specified.

1) The licensee or operator must conserve solution gas at all sites where a) The combined flaring and venting volume od greater than 900m/day per site and decision

tree process and economic evaluation (see section 2.8) result in a net present value (NPV) greater than Cdn$55,00;

b) The gas: oil ratio (GOR) is greater than 3000m3/m3. All wells producing with a GOR

greater than 3000m3/m3 at any time during the life of the well must be shut in until the gas is conserved;

c) Flared or incinerated volumes are greater than 900m3/day per site and the flare or

incinerator is within 500 m of a residence, regardless of economics; or

d) The AER directs the licensee, operator, or approval holder to conserve solution gas,

regardless of economics.

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Solution for the Gas Producer Problem

CryptoGaz Ventures Ltd.

Natural Gas Producers Negative Returns Choices for Oil & Gas Producer Large Solution for Small Production

• At a price below $2.60/mcf natural gas producers are losing money. A low case cost

estimate (not including the capital costs) to produce natural gas is as follows:

• Processing and Transportation: $1.22/mcf
• Compression: $0.70/mcf
• Operating and Land Costs: $0.50/mcf
• Royalties (7%): $0.18/mcf
• TOTAL COSTS: $2.60/mcfWe have developed various models to meet the goals of

the gas producer.

• Our Bitcoin mining operation is set-up at the well site. Avoiding the capital costs of taking

the gas production to market and avoiding the processing and transportation fees associated with the natural gas.

• We have developed various models to meet the goals of the gas producer:
• For a straight gas well, we will pay the costs to operate the well, including the land

lease costs, the insurance costs, and the operating costs. These costs normally are in the $10,000/yr range. Essentially the goal is make the producer break-even and remove the environmental exposure.

• For an oil well where the producer will receive oil revenue but to get that revenue

it needs to find a solution for its natural gas, we provide two options (1) our taking the gas and all capital costs for the mining the operation; or (2) a joint venture which sees the oil company receive a portion of the mining income in exchange for it taking

• n

an equivalent portion

• f

the mining capital costs.

• Pursuant to the Alberta Utilities Commission electric generation of less than 1 mWh requires

very little approvals. Electric generation over 1 mWh requires substantial time consuming

• approvals. As such, our initial focus is on projects of less than 1 mWh.

Conserve the Gas at the Well Site

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Safe Harbour

CryptoGaz Ventures Ltd. Cautionary Note Regarding Forward-Looking Information

This presentation includes certain statements that may be deemed "forward-looking statements". Forward-looking information is generally identifiable by use of the words “believes,” “may,” “plans,” “will,” “anticipates,” “intends,” “budgets”, “could”, “estimates”, “expects”, “forecasts”, “projects” and similar expressions, and the negative of such expressions. Forward-looking information in this presentation includes statements about the formation, terms and future activities at the Company’s property. All statements in this presentation, other than statements of historical facts, that address permitting, exploration drilling, exploitation activities and events or developments that the company expects are forward-looking statements. CryptoGaz has made numerous assumptions, while CryptoGaz considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Although CryptoGaz believes the expectations expressed in the forward-looking statements herein contained to based on reasonable assumptions, such statements are not guarantees

• f future performance and actual results or developments may differ materially from those in the forward-looking statements. Additionally, there are known and

unknown risk factors which could cause CryptoGaz’s actual results, performance or achievements to be materially different from any future results, performance

• r achievements expressed or implied by the forward-looking information contained herein. Factors that could cause actual results to differ materially from those

in forward-looking statements include market prices, exploitation and exploration successes, continuity of mineralization, potential environmental issues and liabilities associated with exploration, development and mining activities, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, continued availability of capital and financing, and general economic, market or business conditions. All forward-looking information herein is qualified in its entirety by this cautionary statement, and CryptoGaz disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law. All figures are in Canadian Dollars unless otherwise indicated. The Company undertakes no obligation to update or advise in the event of any change, addition, or alteration to the information catered in this Presentation including such forward-looking statements. This Presentation does not constitute an offer of the securities described herein.

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