W.Merchant · W.Merchant Mining & Commodity Associates The Business Buy for 97% of value Sell for 99% of value We sell to buyers all around the world between 98.9% and 99.5% of market

W.MerchantMining & Commodity Associates

Fixed income opportunities in physical gold tradingAbu Dhabi - 12 february 2013


The Business

Buy for 97% of value

Sell for 99% of value We sell to buyers all around the world between 98.9% and 99.5% of market price. For the sake of simplicity and caution, we represent an average rate of 99%

Make a spread of 2% We achieve spreads between 0.5% - 9.5% of market value.For the sake of simplicity caution, we represent an average rate of 2%

24 - 30 trades per year Depending on the buyer, we take between 3 and 12 days to complete a transaction. For the sake of simplicity caution, we represent an average of 10 days.

Cost of operations are 0.3%Cost of management & administration are 0.2%

Efficient cost structure

Costs for capital are covered with 0.5% secured interest payments

We buy gold and doré between 90% and 99% of market priceFor the sake of simplicity and caution, we represent an average rate of 97%.


Key Investment Highlights

Fixed Income Bond

Value Backed Investment(little capital exposure)

The funds are limited to purchase gold. The company always either holds gold, or money. The loan is limited for gold purchases. The loan is covered in physical gold.

Individual Investment Period(flexible liquidity)

Investment periods between 6 months and several years can be structured individually. Quarterly, semi-annual or annual interest payments are possible.

Commodity Stock Complement An asset backed bond could be complement to common exploration and gold stocks. The bond structures allows rapid liquidity and above average interests.

The current owners and management are open to discuss the consumption of debts and equity as well. An equity investment however is subject to different risks than the bonds.

Equity(if desired)

According to our understanding and the information provided by several experts and lawyers the financing of commodity trades could be structured sharia compliant.

Sharia compliant(if requested)

An asset backed bond paying 13.5% annually is offered by W.Merchant, a gold and silver trading company located in Peru, one of the largest gold and silver producer


Exemplary illustration

Local mines in Peru

W.Merchantin Peru

Monday until Friday:collecting, procurement and settlement with suppliers,at same time sale of gold through existing end buyer contracts

Saturday & Sunday:delivery to the client (logistics takes place on non-banking days)

Friday afternoon:local customs export

Monday morning:local customs import

Monday afternoon:delivery to refinery for first assay

Tuesday afternoon:final assay by refinery & price fixing

Wednesday: transfer of moneyThursday: money booked on W.Merchant’s account

Assessment through international recognized experts

Business banking account of W.Merchant


Market

Peru

Competition

5th largest gold producer in the world

Mining & Commodity trading friendly environment

2nd best country in south america to do business (FORBES)

Metalor, UMT...

Mines, Plants, Trader & Refineries

purchasing power the bottleneck for most traders in Peru


Strategy

Lima

Brazil

Columbia

Bolivia

Chile

Ecuador

Trujillo

Piura

Juliaca

Puerto Maldonado

- Standing Network of suppliers

- Increase of suppliers through satellite network

- Fast & efficient settlement with suppliers

- Fast paying buyers in several jurisdictions

- Short cash cycles - many transactions

- Well connected in peruvian mining industry

- Value backed financing

- Debts limited to value backed loans- outsourced operations

- Managing Partners - success dependent compensation


Strength & Opportunities

Group Strength

Opportunities

Local & flexible structure

Supplier network

Purchasing power

Ensure market share

Formalization of mines

Value backed InvestmentDoré bar (gold silver alloy)


Achievements

Suppliers

Buyers Demand of 2500 - 3000 per month guaranteed

Trade & export License Trade & Export license were granted in 2012

Capital The company is currently financed by its owners and partners and is debts free

An enthusiastic and well experienced team that has worked together for years engaged a new strategy.

Team

We have established a network of suppliers that within days provides the desired amounts of gold.

Network

Supply of 200 - 300 kg. per month guaranteedSupply of 1000 kg. per month possible within monthsoutperformed supply discount by 1%


Outlook

2013

2014

2015

2016

• 5 - 15 Mil. USD• 15 suppliers• 1 Supply Satellite• 2500 - 3000 Kg.

• 15 - 30 Mil. USD• 30 suppliers• 2 - 3 Supply Satellite• 6000 - 12000 Kg.

• 30 - 50 Mil. USD Loan• 50 suppliers• 3 - 5 Supply Satellite• 15000 - 25000 Kg.

Own refining facilities

TODAY

• Feb. 2013 - 30 Kg. / week - guaranteed • Apr. 2013 - 75 Kg. / week - guaranteed• May 2013 - 100 Kg. / week - guaranteed• plus 600 Kg. / month in negation


Organization

Sebastian Wahl

Director

Klaus Wahl

Director

Sergio Sequeiros

Director

Stephen Spencer

MIS / IT

Saverio Carella

Business Development & Financing

Eugene Fideyke

Accounting

Directors

Management

Sebastian Wahl

Business Development

Klaus Wahl

Supply & Procurement

Sergio Sequeiros

Legal & Compliance

Irving Oropeza Garay

President

* Gerente General: Martha Mauny Irala


Management

Klaus WahlDirector

Sergio Sequeiros PenaDirector

Legal & Compliance, Strategy, supplier relations

Sebastian WahlDirector

Investor Relations, Business Development, Strategy & Sales

Saverio CarellaBusiness Development & Financing

Costumer and Investor Relations, Business Development, Marketing & Sales

Management Information Systems, IT and AccountingStephen SpencerMIS / IT

AccountingEugene FedeykoAccounting

Supplier relations, general management


Financial Forecast

CYCLE 1 in % in USD year

Purchase Price 97.00 % 9'000'000 USD 234'000'000 USDAdministration & Management 0.200 % 18'000 USD 468'000 USDOperations 0.300 % 27'000 USD 702'000 USDBuyers Discount 1.000 % 90'000 USD 2'340'000 USD

EBIT 1.500 % 135'000 USD 3'510'000 USD

Interests 0.577 % 51'923 USD 1'350'000 USDtaxes 30.00 % 40'500 USD 1'053'000 USDNet Profit 0.473 % 42'577 USD 1'107'000 USD

Capital 20'000'000 USD

Capital exposure 90.00 %

Trades per Period 26

Profit per period $ 2'214'000

weight per cycle 180 Kg.weight per year 9'360 Kg.utilization of the delivery capacity 72 %

CYCLE 2 in % in USD year

Purchase Price 97.00 % 9'000'000 USD 234'000'000 USDAdministration & Management 0.200 % 18'000 USD 468'000 USDOperations 0.300 % 27'000 USD 702'000 USDBuyers Discount 1.000 % 90'000 USD 2'340'000 USD

EBIT 1.500 % 135'000 USD 3'510'000 USD

Interests 0.577 % 51'923 USD 1'350'000 USDtaxes 30.00 % 40'500 USD 1'053'000 USDNet Profit 0.473 % 42'577 USD 1'107'000 USD


Shares & profit distribution

Shareholders

Profit distribution Company profits are distributed through dividends or will be reinvested in the company.

W.Merchant is a private and owner managed company. There are currently 5 shareholders.The trading success has significant influence on the income for the owners.

6 %

20 %

20 %

20 %34 %

Klaus Wah lSebas t ian Wah lSerg io Seque i ros PenaSaver io Care l l aS tephen Spencer


Control & Risk Management

Legal & formal suppliers All suppliers are formal, legal and registered companies.Suppliers are screened thoroughly (KYC, AML, PEP and CFT) before business will be engaged.

World wide recognized Laboratories

Analyses are done in cooperation with world wide recognized laborites such as Alex Stewart. These procedures provides security and easy handling for the buyers side as well as the supplier.

Logistics & Insurance Internationally recognized logistic company such as Brinks, Hermes or Prosecure are transporting the company’s gold. The cargo is at all time insured to 100% of its value.

Payments after assaying Settlement with suppliers only take place after the gold has been melted, homogenized and assayed by recognized laboratories. Payments take place in a secured environment only by cheque.

KPMG or PwC does not only audit the company books but also confirms on a regular base the proper use of the funds (AuP) provided through the loan.

Auditing by KPMG / PwC


The Investment Opportunity

5 - 40 Mil. USD

1 - 5 years Bonds can be structured individually with a minimum of one year period.The investment period depends on the investors desire and the market in Peru.

13.5% p.a. With 13.5% p.a. interest on the U.S Dollar W.Merchant offers an attractive alternative to other bonds.

Low Risk The capital is limited and earmarked to purchase gold. If the company has no gold to buy, the capital will not be used. Unlike mining, we do not need to invest in equipment or finance a large overhead.

The bonds are issued with no extra fees, commissions or costs for the client.No Commission

If Investors desire to participate in the company’s equity, that is something that can be discussed with the current owner and management. Please address your request to Mr. Saverio Carella or Mr. Sebastian Wahl.

Equity if desired

W.Merchant is seeking the capital to purchase up to 20 tones of gold per year of the peruvian market.


Contact

Calle Codornices 285Surquillo, LimatamboLima, Peru

DisclaimerThis presentation contains certain forward-looking statements regarding operational information,future exploration and development plans and anticipated future production. Words such as, “potential”, “building” “inferred”, “if”, “will”, “expect”, “forecast”, “estimate”, “consider”, “may”, “possible” and similar expressions have been used to identify these forward-looking statements. These statements represent management’s current beliefs and are based on information currently available. Forward-looking statements involve significant risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including, but not limited to, changes in general economic, political and market conditions and other risk factors. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place under reliance forward-looking statements..Forward-looking statements and other information contained herein concerning the metals and mining industry and the W.Merchant`s general expectations concerning the industry are based on estimates prepared by management using data from publicly available industry sources as well as from private sources, industry analysis, and assumptions based on data and knowledge of the this industry which the Company believes to be reasonable. However, this data is inherently imprecise. While the W.Merchant is not aware of any misstatements regarding any industry data presented herein, the industry involves risks and uncertainties and is subject to change based on various factors. There is no certainty the projections will be met.

Investment inquiries:

Saverio Carella: [email protected] +41 79 327 91 31 (Europe)

Sebastian Wahl: [email protected] +41.79 527 00 81 (Europe) +51 99 474 58 41 (South America)

W.Merchant

President: Irving Oropeza GarayDirector: Sergio Sequeiros PeñaDirector: Klaus WahlDirector: Sebastian Wahl

General Manager: Martha Mauny Irala Licenciada en Ciencias Administrativas

mailto:[email protected]




Documents

W.Merchant · W.Merchant Mining & Commodity Associates The Business Buy for 97% of value Sell for 99% of value We sell to buyers all around the world between 98.9% and 99.5% of market