A CLASSIC CAR INVESTMENT OPPORTUNITY

EIS ELIGIBLE

Rarity creates value and appreciation“This year, vintage cars were the

best-performing alternative asset class tracked by Bloomberg...”

(Source: Bloomberg, November 2015)

Participation in this investment is only suitable for those persons who would qualify as either Professional or high net worth Clients or Eligible Counterparties under Financial Conduct Authority Rules; please see page 15 for more details. This document is not an invitation to invest; investors should refer to the pre-close Investment Memorandum prior to making any investment decisions.

EXECUTIVE SUMMARY

“Cars will be sourced globally, restored and then sold in the most appropriate market to maximise the return.”

Rare Metal is a specialist classic car trading and restoration business which expects to provide returns in excess of 10% per annum through opportunistically sourcing the rarest and most desirable classic cars, restoring and trading them at a profit.

Rare Metal’s team has well over 100 years of combined experience in classic cars and historic race cars. Through this experience, Rare Metal is able to utilise its network to locate the world’s most interesting and unique cars, restore them and sell to the most profitable market.

SUMMARY OF TERMS

Structure UK Ltd under EIS

Minimum Investment £ 100,000

Maximum Investment (per Tax Year) £ 1,000,000

Lockup 3 years

Overheads Charged at cost

Target return 10% per annum

Performance-Based Incentive Payable to Management Company 35% of profits

Income Tax Relief 30%

Capital Gains on Shares (after 3 years) Zero

An equivalent loss could reduce investor tax by up to 45%

Benefit of Investing via the Enterprise Investment Scheme (EIS) An Example:

EIS Scheme Non-EIS Scheme

Initial investment £ 100,000 £ 100,000

30% income tax relief at time of investment1 £ 30,000 -

Annual return (net) 10 % 10 %

Return on investment after 3 years2 £ 30,000 £ 30,000

Capital gain on disposal - (£ 8,400)

Net Return to the Investor After 3 Years3 £ 160,000 £ 121,600

Total Net Gain 60 % 22 %

1 assuming sufficient taxable income to absorb full relief2 assuming 10 % net growth p.a. no compounding3 includes tax relief at 30%Note, the above analysis excludes potential inheritence tax benefits.

$2,000,000

$1,800,000

$1,600,000

$1,400,000

$1,200,000

$1,000,000

$800,000

$600,000

$400,000

Year Average Value (USD)Source: Kidston K500

$200,000

$0

THE MARKET

We expect to outperform industry benchmarks by employing our insight and market knowledge to source the best-performing cars and invest in those which have yet to realise their full market value.

1995 2000 2005 2010 2015

Kidston K500

The Kidston K500 Index is a benchmark market data provider for the classic car sector. It maintains a list of 500 of the world’s most important classic cars and includes all major auction results for these since 1994 (over 30,000 results). The Index has shown a 68% growth in the average auction values over the last 5 years.

Knight Frank

“…a study published in March by property firm Knight Frank …

estimated that art pieces had risen by 252pc in a decade, beaten only by

classic car values, up by 487pc.”

(Source: The Telegraph, 2015)

HAGI

HAGI (Historic Automobile Group International) reported its Top 50 index of exceptional historic automobiles was

up 16.57% in 2015.

(Source: HAGI, 2016)

INVESTMENT STRATEGY

“We believe select cars currently valued between £100-250k have the greatest potential for growth.”

Current market conditions allow for above average returns to be made from selective rare, historically important or unique cars. The top end of the market has already achieved significant growth, which is in the process of stabilising. Two such examples are the 1973 Porsche 911 Carrera RS 2.7 and Mercedes 300SL ‘Gullwing’ from the mid-1950s.

Capital will be deployed to build a diverse portfolio of cars. We maintain a database of cars we have identified which we expect will perform well in the near term. In addition, we have access to several private collections which are not on the market.

We expect the majority of vehicles we source to require some level of restoration. Some will require minor remedial work to ensure originality and others will be ‘barn-finds’ requiring complete restoration.

All vehicles will be prepared to achieve maximum returns upon sale. All work and quality control will be overseen by our Technical Advisors to ensure the cars are the best on the market and thereby maximising the return.

“Our network contains some of the world’s top classic car restorers and race

car preparation specialists.”

INVESTMENT PROCESS

VEHICLE PURCHASING

Full market data analysis from multiple sources

Restoration work carried out where appropriate

Vehicle Acquired

Presentation made to the Advisory Board

Future value projected by analysis of market data and

model history

Presentation made to the Advisory Board

PR to increase market awareness before sale

Optimum sale method decided based upon market performance, for example:

• Auction

• Private sale

• Direct to trade

VEHICLE SELLING

Vehicle Sold

MANAGEMENT TEAM

Tristan Last – Managing Director

Tristan races vintage and classic cars and has his own private car collection. He has almost a decade’s experience in the alternative investment industry and is now fusing this with his passion for classic cars.

Tristan is managing the day-to-day operations.

Greg Thain – Chairman

Greg has 40 years’ commercial experience as an entrepreneur and fund raiser. He has built up and sold an extensive portfolio of companies in the UK and in emerging markets.

Greg is responsible for strategy and international markets.

Richard Last – Technical Director

Richard has almost 50 years’ experience as an engineer and built a business providing services to F1, World Rally and endurance race car teams and manufacturers. He also races vintage and historic sports cars.

Richard is responsible for overseeing all restoration work.

Thomas Rassmuson – Commercial Advisor

Thomas has over 22 years of business experience working in investment banking and fund management. His experience includes co-founding a specialist trading and investment firm, CF Partners, Merrill Lynch and AGA treasury.

Thomas is responsible for supporting the business on commercial-related issues.

Jonathan Navon – Risk Advisor

Jonathan has over 23 years of experience in financial markets and risk management. His experience includes co-founding a specialist trading and investment firm, CF Partners, Goldman Sachs, Deutsche Bank and Merrill Lynch.

Jonathan is responsible for supporting the business on risk management related issues.

ADVISORY BOARD

Julian Bronson: Multiple Monaco Historic Grand Prix and Goodwood Revival winner

Chris Clarkson: Collector and 18 years’ historic race car experience

Tony Ditheridge: Restorer of WWII fighter planes and classic racing cars

Chip Starr: US agent brokering classic cars to the UK and worldwide

James Mitchell: Classic car dealer, journalist and commentator

David Wenman: Retired Investment Banker and classic car collector.

CONTACT DETAILS

Email: info@raremetal.co.uk

Telephone: +44 20 7348 3500

Address: 80 Hammersmith Road LondonW14 8UDUnited Kingdom

DISCLAIMERThis document is issued by CF Partners (UK) LLP (‘CF Partners’), which is authorised and regulated by the Financial Conduct Authority ('FCA'), Firm Reference Number 463878. The contents are approved for publication to Professional Clients and Eligible Counterparties resident in the UK and as defined by FCA Rules. These types of clients have the knowledge and experience required in order to understand the investment risks applicable to the type of investment described in this document. As such, available protections under FCA Rules are greatly reduced.

If potential investors have any doubt as to whether they would be classified as either Professional Clients or Eligible Counterparties, or if they have any doubts that the type of investment described in this document is suitable for them, they should seek independent advice.

The performance information contained in this document reflects the most-up-to-date data available at the time of publication and is made on the basis of publicly available information or on sources believed by CF Partners to be reliable. However, CF Partners does not make any guarantee as to the accuracy or completeness of any such information and is not liable for any discrepancies or inaccuracies.

The shares in the investment described are not dealt in or on a recognised or designated investment exchange, nor is there a market maker in the shares. Liquidity is therefore limited and it may be difficult for an investor to dispose of shares otherwise than by way of redemption.

The investment described herein is speculative and performance may be volatile. Returns are estimated and subject to change. Past performance is not a reliable indicator of future performance. The value of the investment may go down as well as up, and investors may not get back all or any of the amount originally invested.