INVESTMENT SUMMARY ⎜ TERRA 2020 Short-Term Flow-Through Limited Partnership

A Tax-Advantaged Investment Redeemable in 2021

ABOUT TERRA Since 2005, Terra has provided investors substantial tax savings through tax-advantaged flow-through partnerships, offering low fees, expert management, early liquidity and potential for attractive investment returns. Since inception Terra LPs have:

๏ provided investors over $270 million in tax benefits ๏ invested in over 530 mining and energy companies ๏ an average maturity of less than 10 months ๏ delivered attractive after-tax returns

This document is a summary only and must be read in conjunction with the Offering Memorandum. This document does not provide disclosure of all information required for an investor to make an informed investment decision. Investors should read the offering memorandum, especially the risk factors relating to the securities offered, before making an investment decision. By acceptance hereof, the reader agrees that they will not transmit, reproduce or make available this summary or any information contained herein to the public or press. Securities legislation in all provinces and territories prohibit such distribution. The information contained herein, while obtained from sources that are believed to be reliable, is not guaranteed as to accuracy or completeness. This summary is for information purposes only and does not constitute an offer to sell nor a solicitation to buy the securities referred to herein. Investors must receive a confidential Offering Memorandum prior to subscribing for Units. Last update: April 15, 2020.

TerraFundsTax-Smart

Tax & Legal Counsel Stikeman Elliott LLP

Auditor Ernst & Young LLP

Custodian NBIN Inc., National Bank Financial

Administrator SGGG Fund Services

Service Providers:

Minimum Purchase $2,500

Early Maturity June 2021

Sector Focus Primary: Mining Secondary: Energy

Investor Eligibility Accredited - ALL PROVINCES

Eligible - BC,AB,SK,MB,NS

Investor Closings Monthly subject to availability

FundSERV Codes FE: TER 320 NL: TER 420

SPEED READ

PORTFOLIO MANAGEMENT TEAM The portfolio investments are managed by Greg Bay, Jeff Bay and Brad Bay of Cypress Capital Management Ltd. The portfolio management team have a particularly strong capability in the junior and intermediate resource sectors where the majority of flow-through investments occur.

WHY A TERRA LP Investors seeking to substantially reduce 2020 taxes through an investment that can be redeemed early should invest in the Terra 2020 Short-Term Flow-Through LP (“LP”). The LP invests in a portfolio of primarily Super Flow-Through shares of public mining firms; provides over 122% in total deductions (see page 3); and is redeemable in 2021. In addition to the attractive tax savings, Terra LPs have also consistently outperformed their peer group (see “Peer Group Comparison” below).

PEER GROUP COMPARISON per $25 investment Terra no-load units have outperformed its peer group in 4 of the past 5 years by an average of 24%.

———–––– NAV per $25 invested ––––———

Year Terra Peer Group Terra Outperformance2019 $24.62 $22.32 10%

2018 $19.40 $15.49 25%

2017 $17.65 $10.87 62%

2016 $18.61 $20.51 -9%

2015 $27.42 $21.01 30%

Average $21.54 $18.04 24%

Peer group includes multiple competing offerings. NAV on rollover, December 31, 2019 or January 10, 2020. Source: Company websites & regulatory filings. Hypothetical and for illustrative purposes only. Past performance does not guarantee future results.

Greg Bay, CFA is Senior Portfolio Manager and has over 30 years experience investing in producers, explorers and service companies and

brings established relationships in the industry, which will assist the partnership in sourcing quality investments. Mr. Bay is a director of Mullen Group (TSX:MTL)

and Gear Energy (TSX:GXE).

Jeff Bay, CFA is Portfolio Manager and previously worked with the Energy

Investment Banking Group at GMP Securities advising on transactions

and financings for intermediate and junior oil & gas companies. Mr. Bay holds a B.Comm from the Peter B. Gustavson School of Business at the University of Victoria.

Brad Bay, CFA is Portfolio Manager and previously worked as an Analyst at Haywood Securities and Priviti Capital where he was

involved in mergers & acquisitions, advisory and financings for public resource companies. Mr. Bay holds a B.Comm from the Haskayne School of

Business at the University of Calgary.

1-888-449-4645 402 - 517 Wellington St. W., Toronto, ON M5V 1G1 terrafunds.ca

INVESTMENTS: GOLD & RESOURCE FOCUSED The LP will invest in a portfolio of primarily Super Flow-Through shares of public mining firms. The majority of investments are expected to be in the gold sector followed by uranium, diamonds, zinc and energy. At current bullion prices, junior gold companies offer substantial potential performance. Currently, a decline in production output is the biggest problem for major gold producers and the need to replenish reserves will lead to growing interest in, and takeovers of, junior gold miners. Gold juniors will subsequently outperform both bullion and senior gold firms because higher gold prices will provide major gold producers larger cashflows and a new ability to invest in and acquire junior explorers to replenish their reserves.

The Dow/Gold ratio shows how many ounces of gold it takes to buy the Dow Jones Industrial Average. The ratio currently sits at approximately 14:1, down from 22:1 in November 2019. In January 1980 the ratio reached 1:1 when gold was $800 per ounce and the Dow at 800. On at least three other occasions the ratio peaked at 6:1 in 1974, 1989 and more recently in 2011. We expect the Dow/Gold ratio will retest 6:1 or approach 1:1 because of a number of factors favourable to gold, including the growth in money supply (M2). Currently, M2 growth is running over 12% on a year-on-year basis, which is the fastest in two decades and is likely headed higher with the economic fallout from Covid-19. In times when money supply has surged, gold prices have followed. The last time M2 soared above 10 percent year-over-year was in 2011 when gold reached its all-time high of $1,900 and the ratio peaked at 6:1.

FINANCIAL ASPECTS: TAX DEDUCTIONS, TAX SAVINGS & BREAKEVEN - PER $1,000 INVESTMENT The LP provides mining Investment Tax Credits (ITC), Canadian Exploration Expenses (CEE) and other deductions in 2020 and beyond. Additional provincial tax credits have not been included but will also be provided to residents in BC, Saskatchewan, Manitoba, Ontario and Québec for qualified investments made by the partnership.

The tax deductions and tax savings received from an initial $1,000 investment are shown in the table below. The net cost of an investment, after deducting net tax savings, is commonly referred to as the “money at-risk” or “cash outlay.” The “break-even value” represents the amount an investor must receive on redemption to pay capital gains tax and recover the money at-risk. Downside protection is the amount a $1,000 investment can decline in percentage terms before it reaches its break-even value.

BC AB ON QC

Investment $1,000 $1,000 $1,000 $1,000

A. Total Tax Deductions ($1,228) ($1,243) ($1,228) ($1,229)

B. Marginal tax rate 53.50% 48.0% 53.53% 53.31%

C. Tax savings ( A x B ) ($657) ($596) ($657) ($655)

D. Capital gains tax $45 $41 $46 $45

E. Net Tax Savings ( C + D ) ($612) ($556) ($612) ($610)

F. Initial Investment $1,000 $1,000 $1,000 $1,000

G. Money at-risk / Cash outlay ( E + F ) $388 $444 $388 $390

H. Break-even value $530 $585 $530 $532

I. Downside protection to breakeven (%) 47% 42% 47% 47%

Investors should refer to the Offering Memorandum for a more detailed description. Figures are for illustrative purposes only and are not intended as a forecast of future events. Actual tax deductions & investment tax credits may be more or less. Tax rates are subject to change.

Dow / Gold ratio since 1900

1929Nixon Shock

Dot-com bubble

Dow

/Gol

d Ra

tio

1900 1920 1930 1950 1970 1980 1990 2000 2010 20201940 1960

0.4

1

2

4

10

20

40

1:1 ratio?

M2 >10%

Gold peaks

Gold peaks

Gold peaks?

Covid19

Gold peaks

(40%)

(20%)

0%

20%

40%

60%

80%

100%

120%

140%

23-Oct-15 23-Dec-15 23-Feb-16 23-Apr-16 23-Jun-16

Rel

ative

Ret

urn

(%)

GLD Junior Index GLD Senior Index GLD Bullion

Gold juniors return 115% more than

bullion

Oct 15 Feb 16 Dec 15 Apr 16 Jun 16

Source: Bloomberg, March 30, 2020

40%

20%

-20%

-40%

140%

0%

80%

100%

60%

120%

Rela

tive

Retu

rn %

Gold juniors outperform

Oct 2015 ~ June 2016

GDXJ: Junior Index

GDX: Senior Index

GLD: Gold Bullion

Source: Bloomberg, April 15, 2020