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2. LOW COST BARGE ACCESS AND TRANSPORTATION The source is 200 miles north of Vancouver and easily accessible by water in a deep inlet. This allows us to harvest and transport water directly by barge. 3. EXCLUSIVE BULK WATER EXPORT LICENSE The only bulk export license in Canada allows us to transport water in containers larger than 18L across international boundaries, we are the only company in Canada permitted to do so. 1. PREMIUM “VIRGIN” GLACIER WATER OF PROVEN QUALITY This premium glacier water source is “PURE” or “VIRGIN”. It is superior to all other waters because it contains no nitrates - the signature of virgin waters.

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Page 1: GLACIER 3. EXCLUSIVE BULK WATERgoldallianceimm.com/wp-content/uploads/2016/03/... · - Emerson Groundwater Consulting Inc. Coastal Mountain Range of BC Hat Mountain Glacier Alpine

2. LOW COST BARGE ACCESS

AND TRANSPORTATION

The source is 200 miles north of

Vancouver and easily accessible

by water in a deep inlet. This

allows us to harvest and

transport water directly by barge.

3. EXCLUSIVE BULK WATER

EXPORT LICENSE

The only bulk export license in Canada

allows us to transport water in

containers larger than 18L across

international boundaries, we are the only

company in Canada permitted to do so.

1. PREMIUM “VIRGIN” GLACIER

WATER OF PROVEN QUALITY

This premium glacier water source

is “PURE” or “VIRGIN”. It is

superior to all other waters

because it contains no nitrates -

the signature of virgin waters.

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EXECUTIVE SUMMARYAlpine Creek has the only bulk water export license in Canada. The purpose of this teaser is to solicit interest from; a) potential investors , and b) end users.

Glacier water is considered to be the healthiest water in the world to drink but is often

very difficult to access. Unlike other heavily processed water, (i.e., reverse osmosis,

distillation etc.) glacier water remains untouched, uncontaminated and especially pure.

This premium source comes from the melting ice of Hat Glacier and flows down a steep

granite decline and into the ocean. Located 200 miles from Vancouver in a deep inlet

accessible by barge, this represents an economic opportunity to export premium water in

bulk, as well as a unique source-to-bottling factory cost advantage; in terms of both

dollars and environmental impact.

GLACIAL WATER RIGHTS

SOURCE WATER HYDROLOGY REPORT FOR THE US FDA“The water quality of the water is excellent, with a total dissolved solids content of less

than 10 PPM. This sort of purity is only achievable through the melting of snow or ice. The

process of freezing water vapor into snow is a purification mechanism. Modern water

vapor will commonly contain organic molecules and/or sulfurous compounds picked up

from the atmosphere. When the water vapor is frozen, the regular atomic structure of the

ice cannot accommodate these molecules and they drop out of the solution … the

opportunity to develop acid rain and the concomitant metals is eliminated resulting in very

pure water.” - Emerson Groundwater Consulting Inc

Coastal Mountain Range of BCHat Mountain Glacier

Alpine Creek, Toba Inlet65M USG per annum

(228M liters)<10PPM

“Already, water connoisseurs …- rank the emerging brand among the market’s most prestigious, and pricey bottles.”

MACLEAN’S MAGAZINE

HISTORY

“Clear, pure appearance and similarly pure nose. Clean taste, and soft texture. Attractive.”

DECANTER MAGAZINE

“[10 Thousand BC®] is positioned as high-end bottled water- inside and out”

FOOD IN CANADA MAGAZINE

The former owners attempted to build the business through larger size premium glass-bottled water at luxury prices however they were never able to

achieve successful sales volume. They were severely undercapitalized and were ultimately forced to shut down operations after suffering consecutive

issues with damage during shipping and quality difficulties with suppliers of their frosted glass bottles. However, the brand stood out amongst the

premium bottled water market and connoisseur’s for its taste and absolute purity.

THE BULK EXPORT PORTION OF THE LICENSE HAS NOT BEEN UTILIZED TO DATE.

TABLE OF CONTENTS

3. THE SOURCE

4. THE MARKET

1. COVER PAGE

2. OVERVIEW

7. BULK WATER TO CALIFORNIA

8. BULK BARGE EXPORTS

5. PREMIUM BOTTLED WATER TO CHINA

6. BOTTLING OPERATIONS

2

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Alpine Creek is located on the south shore of Toba Inlet, a fjord in the Coast Mountains of British Columbia.

The fjord was formed during the last glaciation approximately 10,000 years ago. Several glaciers remain in the

coast mountains of British Columbia, ranging in area from hundreds of square kilometers to a few square

kilometers. The largest sub-watershed is approximately 11.3 square kilometers in area and contains a series of

small unnamed lakes. These lakes are formed in glacial cirques and range in elevation from 1,185 meters at

the lowest lake to approximately 1,380 meters at the upper lake. The entire length of the stream is very steep,

losing approximately 1,200 meters of elevation in just three kilometers.

GLACIAL WATER SOURCELocked in an icy vault for thousands of years, this ultra–

premium glacier water comes from the Coastal Glacier Range

in British Columbia. This pure water source is ideally located

200 miles north of Vancouver in the Toba Inlet and boasts a

6,000 foot vertical drop which makes it completely isolated

and untouched by humans or animals.

200 miles From Canada’s

Largest Port

DIRECT BARGE ACCESS2. Hoses can be attached to a stainless steel pipe and bridge systemrunning from the barge and placed in the natural granite basin at the baseof the glacier waterfall.

1. The barge has the capability to travel directly to the source where

a steep drop off to an approximate depth of 30 meters allows closeproximity to the shoreline.

3. The barge can fill 10 million liter holding tanks within less than aday and dependent upon the pumps utilized, the timing could beconsiderably shortened.

4. The barge can travel directly to its next destination whether that bebulk shipments direct to California or a bottling facility near theinternational port of Vancouver.

3

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MARKET OVERVIEW

Even though the global per capita consumption figure obscures

pronounced regional disparities, bottled water’s international growth

signals demand for it in diverse markets. Consumers have demonstrated

a thirst for it in highly developed markets, in less developed ones, and in

economies in transition. Bottled water has tapped into the different

consumer trends around the globe.

BULK EXPORT

California

India

Saudi Arabia

UAE

PREMUIM BOTTLED

China

South Korea

Japan

Saudi Arabia

TARGET MARKETS

During the 20th century, the world’s population increased fourfold, but

the amount of freshwater used increased nine times over. Under an

average economic growth scenario and if no efficiency gains are

assumed, by 2030, global water requirements will grow from 4,500

billion m3 today to 6,900 billion m3. This is a full 40 percent above the

volume of water that is currently accessible, reliable and environmentally

sustainable. The market for bottled water is developing rapidly in Asia

due to understandable consumer demand for purity, hygiene and

convenience.

The earth has a finite stock of water. There is precisely the same amount

of water on the planet now – as the world’s population approaches

seven billion people – as when there were 300 million global inhabitants

during Roman times. This same amount of water will also meet the

demands of the world’s growing population which is expected to

increase by approximately 50 percent to more than nine billion by 2050.

GLOBAL FRESH WATER SUPPLIES

According to industry experts and data:

• The world bottled water market is estimated to be worth US $100

billion by 2014.

• The luxury bottled water market is 6.3% of the total market and is

worth an estimated $4 Billion.

• The large companies such as Coke, Pepsi and Nestles are not in the

high-end market because it is too small which has left it open for

companies who have a unique source like Alpine Creek.

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

ADVERTISING EXPENDITURES FOR BEVERAGE CATEGORIES

MILLIONS $ SPENT

Still water accounts for the majority of bottled water sales in much ofthe world. On a global level, sparkling water accounts for an estimated10 percent of the total volume, with still water accounting for theremaining 90 percent. Advertising dollars spent on bottled water isespecially low compared to other beverages.

BOTTLED WATER INDUSTRY OVERVIEW

0

50

100

150

200

250

300

350

400

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

PROJECTED ANNUAL SALES GROWTH THROUGH 2018

MARKET SIZE IN BILLIONS OF DOLLARS

4

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AVENUE I: PREMIUM BOTTLED WATER, CHINA(Seeking Distribution Partners)

In 2013 thousands of rotting pigs’ carcasses were found in the Huangpu river,

which supplies four-fifths of tap water to Shanghai, China’s most populous city.

Last April, in the industrial city of Lanzhou in the north-west, a leak from an oil

company’s pipeline poisoned tap water for 2.4m locals with carcinogenic

benzene. And even if water meets drinking standards at source, it can be

harmful by the time it reaches the tap after coursing through decaying pipelines.

Shenzhen-based consulting firm Askci said the retail market for high-end bottled

water in China topped 500,000 tonnes last year, with sales reaching 10.8 billion

yuan (US$1.8 billion). The market also continues to grow as the retail sales of

high-end water accounted for 42.6% of the total bottled water sales for 2012,

which was nearly three times higher than the percentage of sales for the low-

and middle-end water markets.

Some of the largest brands have come under scrutiny: last December the

authorities in Shanghai found that a quarter of bottled water sold locally was

contaminated with bacteria. National regulators have raised concerns about

bottlers complying with laxer local standards (which allow higher levels of such

contaminants as arsenic and cadmium) rather than their own, stricter standards.

According to CI

Consulting, the profit

margin of China's mineral

water was merely 3.85%

but that of high-end

bottled water is up to

seven times higher than

regular water.

China was the only country that could claim a double-digit

share of global volume with 11.5 billion gallons and a

percentage of total market higher than that held by the

United States. Chinese bottled water volume enjoyed double-

digit percentage growth rates for several consecutive years,

registering a 15% CAGR for the period from 2009 to 2014 – the

highest rate among the five biggest bottled water markets.

POLLUTION FEARS DRIVING CONSUMERS TO PREMIUM WATERS

Hygiene and health concerns among China’s rising middle class have stoked

demand for premium bottled water

In 2009 the World Bank said water problems cost the country over 2% of GDP

every year

mostly due to damage to health

HIGH END BOTTLED WATER MARGINS

5

WATER IN CHINA: TEN FACTS

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LOW COST SOURCE WATER EXTRACTION LOW COST TRANSPORTATION VIA BARGE RARE GLACIER WATER

TOP PERCENTILE OF VIRGIN WATERS CLOSE PROXIMITY TO CANADA’S LARGEST PORT LOW COST SHIPPING COSTS TO INTERNATIONAL MARKETS

BOTTLING OPERATIONS

Barge Extraction (Source to Plant) $0.001 per liter

Bottle Costs $0.036 (per 375ml bottle)

Bottling Costs $0.045 (per 375ml bottle)

Transportation Costs $0.019 (per 375ml bottle)

Shipping Costs (China) $0.09 (per 375ml bottle)

= Low Operating Costs

COST ANALYSIS

Machine Specifications(FULLY AUTOMATED)

Capacity – Bottles Per Hour (600ml)

35,000-40,000

# Washing & Filling Heads

80 each

# Capping heads 40

WEIGHT 15,000kg

Suitable Bottle Specification (ml)

330-2250ml

Overall Dimensions (cm)

7680x6640x285

Motor power(kw) 19kw

Frances’ BADOIT Natural Spring Water

US$5.17/ Bottle

Hawaiian WaiakeaNatural Mineral Water

US$3.00/ Bottle

U.S.’s Mountain Valley Natural Spring Water

US$5.60/ Bottle

France’s Saint GéronNatural Mineral Water

US$3.00/ Bottle

France’s Volvic Natural Spring Water

US$3.67/ Bottle

Norway’s VOSS Natural Artesian Water

US$2.00/ Bottle

UK’s Hildon Natural Mineral Water

US$2.00/ Bottle

RETAIL PRICING ANALYSISRetail margins for bottled water are generally very high across the industry. With the cost of bulk water decreasing to a level where it can now competewith processed water, many suppliers are looking to the benefits of a higher quality product without the traditional costs associated with premiumsources

The advantage of low-cost barge access and close proximity to the international port of Vancouver is perhaps most apparent allows us to achieve a low cost from source to final destinations in China.

BOTTLING PLANT SPECIFICATIONS

COMPETITIVE ADVANTAGES

6

• Bottles will come in multipacks of 4 bottles and cases of 6packs (24 bottles)

• Pallets will contain 65 cases (1560 bottles)

• Up to 88 pallets can be accommodated via tractor truck bystacking two 40 ft HQ containers (137,280 bottles)

330ml to 350ml are theleading sizes for bottledwater sales in China

Smaller size reinforcespremium image of waterquality

Few premium waterscompeting in the 330ml to350ml size categories

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As difficult as it may be to face, the simple fact is that California is running out

of water. NASA data reveal that total water storage in California has been in

steady decline since at least 2002, when satellite-based monitoring began,

although groundwater depletion has been going on since the early 20th

century.

Right now the state has only about one year of water supply left in its

reservoirs, and its strategic backup supply, groundwater, is rapidly

disappearing. Data from NASA satellites show that the total amount of water

stored in the Sacramento and San Joaquin river basins — that is, all of the

snow, river and reservoir water, water in soils and groundwater combined —

was 34 million acre-feet below normal in 2014. That loss is nearly 1.5 times

the capacity of Lake Mead, America's largest reservoir.

-James Famiglietti, NASA Senior Water Cycle Scientist and leader of the JPL Water Initiative.

AVENUE ll: BULK EXPORT, CALIFORNIA(Seeking Bottlers in California)

THERE ARE MORE THAN 100 WATER BOTTLING PLANTS IN CALIFORNIA

Data from the NASA Gravity Recovery and Climate Experiment (GRACE)

mission has shown us that since 2011, water losses in California have been

catastrophic. In each of the last 3 years, California has lost more than 8

trillion gallons of water, which is more than all 39 million Californians use

each year in their homes, and for industrial and municipal use.

The National Weather Service in Sacramento says it would take

200 to 270 percent of average precipitation to make up for the

past three years of drought in California.

"This is now the fourth consecutive water year that Northern

California has not received its normal amount of rain and

mountain snow," said Michelle Mead, Warning Coordination

Meteorologist with the National Weather Service in Sacramento.

The April 1 snow survey showed the Sierra Nevada snowpack was

the lowest on record for that date at only 5 percent.

Water cannot be transferred in bulk from state to state.

Nestlé’s facility buys millions of gallons of Sacramento municipal

water and also bottles spring water shipped in from Northern

California counties. A grassroots group called the Crunch Nestlé

Alliance has been organizing to shut down the plant.

More Californians are questioning why giant bottled-water sellers

continue to tap the state’s dwindling water supply during the

worst drought in state history and are pressuring big retailers to

stop using the scarce resource.

MORE THAN 80% OF WATER BOTTLED IN CALIFORNIA IS CONSUMED WITHIN THE STATE

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OPERATING METRIC SAN FRANCISCO HUMBOLDT BAY

DISTANCE ( source CA)

~ 840 nautical miles (1555km)

~ 610 nautical miles (1135km)

VOYAGE TIME (round trip)

~ 6.1 days travel ~1 day unloading~1 day loading

=Total of 8.1 days

~ 4.3 days travel~1 day unloading~1 day loading

=Total of 6.3 days

FUEL COSTS (round trip)

= $86,785 ($0.0084/L)

= $60,590 ($0.0059/L)

CREW COST (round trip)

= $13,680 (Captain, Engineer, Tug crew x 6)

= $10,260 (Captain, Engineer, Tug crew x 6)

OTHER COSTS (round trip)

=$35,000 (Demurrage, anchorage fees, dockage, wharf fees, loading)

= $30,000 (Demurrage, anchorage fees, dockage, wharf fees, loading)

SUSTAINING OPERATING COST

~ $0.013 per liter ~ $0.0098 per liter

Barges are the most efficient method of transportation for transportation of bulk

commodities. Direct barge access and the license to export water in bulk tank

barges creates an economically viable opportunity that is extremely rare.

To illustrate this idea, we have provided the by-the-liter cost to deliver our water in

bulk to two popular California ports of varying distance.

TANK BARGE TRANSPORTATION

514ton miles

per gallon of fuel

202ton miles

per gallon of fuel

59ton miles

per gallon of fuel

TRUCKBARGE RAIL

We will have the capability to internationally distribute 65M USG (246M Liters) of high-end glacier water annually utilizing the only bulk water export license in Canada. As of 2008, the Canadian government has ruled that NO MORE LICENSES OR PERMITS will be granted to any NEW water enterprise effectively immediately. This applies to both surface and/or spring water sources. Additionally, with the exception of this glacier water license, no other Canadian company can export water internationally in individual containers larger than 18 liters. Water from this source will be collected by tank barge directly at the source and can cross international boundaries; it is the only Canadian water license permitted to do so.

EXCLUSIVE BULK WATER EXPORT LICENSE

BULK BARGE METRICS

VESSEL SPEED = 11 knots full/ 12 knots empty @ 10.8 t fuel consumption/ day

VESSEL CAPACITY = 10.335M liters (11,392 tons)

VESSEL WEIGHT (net tonnage)

= 2910 tons

ANNUAL CAPACITY =24 trips to reach our max annual license capacity of 65M US gallons (246,052,000 liters)

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