TM2: Presentation...July 2019 MARKETING PLAN STRATEGY & OPTIONS DRAFT TM2: Presentation October 2019 Technology Metals Market – 21st Century Metals and Beyond Strictly Private &

July 2019

MARKETING PLAN STRATEGY & OPTIONS DRAFT

TM2: Presentation

October 2019 Technology Metals Market – 21st Century Metals and Beyond

Strictly Private & Con"dential

Strictly Private & Con"dential 2 TM2

21st Century Metals and Beyond The Technology Metals Market (TM2) is an issuing and trading pla-orm for technology metals connec5ng ins5tu5onal investors, proprietary traders and retail investors with digital metals issuers -‐ miners, refiners, recyclers and mints.

ü  Digital technology metals can be traded with the simplicity of a few clicks or held on the TM2 by anyone who has passed iden5fica5on verifica5on and registered on the TM2. ü  Direct Ownership: Investor has direct 5tle to physical

metal and controls investment through digital wallet.

ü  Trust: Digital metals are 100% backed by physical metal. ü  Demand: Technology metals are in high industry demand

crea5ng safety and upside at the same 5me.

ü  Liquidity: We access deep liquidity for large posi5ons. ü  No Red Tape: Clear, straigh-orward and simple

procedures and rules. ü  Provenance: Digi5za5on tracks the origin of the metal you

hold, the hands it has changed and what it was used for.

ü  Oversight: Digital metals fully compliant and follow strict KYC and AML onboarding and transac5on procedures.

ü  Transparency: All metal transac5ons and inventories viewable -‐ 24/hr. access. Fully audited.

TM2 FEATURES

ü  TM2 offers electronic trading and OTC services.


Technology Metals

Technology Metal Use Sector Technology Metal Use Sector

Vanadium (V) SuperConductor Magnet, High Speed Tool Lithium(Li) BaZeries, Dry Cells

Beryllium (Be) Space ShuZle Parts, Computers, lasers An5mony (Sb) BaZeries, Medical Applica5ons

Gallium (Ga) Semiconductors, Fuel Cells Manganese BaZeries

Germanium (Ge) Semiconductors, Transistors, Fiber Op5cs, Electronics Iridium (Ir) Computer Screens

Indium (In) LCD, LED Cobalt BaZeries

Rhodium (Rh) Catalysts Titanium (Ti) Aircra_ Engines, Aerospace, Mobiles

Tantalum (Ta) Capacitors, Metals Devices, Jet engines Niobium (Nb) High End technology capacitors

Tungsten (W) Superalloys, Hard Cubng Tools Rhenium Aerospace combus5on chambers. High end automo5ve industry.

Nickel BaZeries, Electronics Ruthenium (Ru) Sensors, Devices for memory and logic industry, magne5c use

ü  Technology Metals are o_en described as cri5cal strategic metals. ü  Technology metals are used in diverse end-‐use applica5ons: ü  Technology metals are cri5cal to the future growth of Electric

Vehicles, Energy Storage, Data transfer, robo5cs, space economy ü  TM2 researching over 30 technology metals for inclusion.

Also: Cadmium, Magnesium (Mg), Selenium, Molybdenum (Mo), Tellurium (Te), Rubidium, Zirconium (Zr), Bismuth (Bi), Graphite. We will also look into some of more high volume technology metals such as Gold, Tin, Silver, Palladium, PlaQnum with the intenQon to establish markets there as well.

Metal: Rhodium Name of Product: Baird Rhodium Digital (BRD) Unit Size: 1 BRD = 1 gram of rhodium 999 Physical Backing: 100% backed by Rhodium (999.0) in sponge form Title: Investor

Compliant: Yes ExecuQon: By electronic order via the TM2 or through TM2 OTC Clearing & SeUlement: Instant Digital Custody: Full control of their BRD through the TM2 wallet. Physical Custody: Singapore

ACTIVE

PIPELINE


Current Metals Market

•  A holding in a metal ETF is a form of indirect rather than direct legal ownership, as it is the intermediary, rather than individual, that owns the metal.

•  Some ETFs do not own all physical metal directly, but gain their exposure to metal prices in whole or part through futures, op5ons, swaps, leases or other deriva5ves, which have a combina5on of exchange, issuer and counterparty risk.

•  ETF prospectuses point to possible risks, like redemp5on may be suspended

temporarily or indefinitely at the discre5on of the management company and also men5on that your holding in metals can be redeemed in Fiat Currency.

The TM2 creates a market where there is close to none currently. Most of the metals on the TM2 have few or no direct investment opQons, yet are fundamental and irreplaceable inputs into the 21st century product supply chain. The TM2 is defined by powerful features: Direct Title, Fast Access TransacQons, Digital and Physical Custody and Physical Metals RedempQon

Physical Bullion

$300 Billion+

Value of the technology

metals industry

400+

Number of potenQal blue-‐chip issuers (Miners, Refiners, Mints) across the globe.

30 metals

Being considered for lisQng and trading

on the TM2.

Exchange Traded Funds

•  Most all technology metals can only be purchased physically and are not traded on any exchange.

•  Even the majors like pla5num and palladium are mainly only available through deriva5ves or physical bullion in vaults only.

•  Costs are very high, at least 7-‐10% addi5onal bullion

cost incurred from holding direct 5tle bars, coins. •  Holding physical bullion only offers the investor limited

op5ons.

100%

Transparency and trust required to create posiQve market impact


End User Market

Source: DeloiUe

•  The world is in the first phase of exponen5al demand growth for electric vehicles, energy storage systems, semiconductors, aerospace and robo5cs.

•  The scale of demand from new technologies will put the incumbent supply chain under severe stress for technology metals.

•  The TM2 focuses on technology metals that are expected to

see the largest supply/demand tension over the next 10 years.

Aircraa deliveries (2009 to 2034E)

Aircraa Units

0

500

1000

1500

2000

2500

3000

2017 UBS (2040 Forecast)

Morgan Stanley (2040 Forecast)

Goldman Sachs (2040 Forecast)

Bank of America Merrill Lynch (2040 Forecast)

20 Year Growth Forecasts – The Space Economy

$383.51 Billion

$926 Billion $1.1 Trillion

$2.5 Trillion $2.7 Trillion

Trillions of U

SD

Source: DeloiUe

0

500

1000

1500

2000

2500

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034 0

5

10

15

20

25

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Professional Personal

Global Service RoboQcs Market

Billion

s of U

SD

Source: Grand View Research


End User Market Global data traffic booming

Global 5G Smartphone Shipments Will Reach 1.5 Billion in 2025

0 10 20 30 40 50 60 70 80

2018 2019 2020 2021 2022 2023 2024 2025

Asia Oceania Europe North America RoW

CatalyQc Converter Market by Region ($Billion)

Source: Allied Research

$73 billion

•  The scale of technologically evolu5on is rapid, leading to new discoveries, uses and applica5ons of technology metals.

•  Growing consumer awareness of the environmental and social issues related to metals mining means greater pressure on manufacturers to prove their inputs are ethically sourced and ethically used.

•  Through the TM2, a market is created where investors can benefit from direct 5tle to metals which are defining the 21st century technology supply chain.

0 2 11 77 183

416

855

1500

0

200

400

600

800

1000

1200

1400

1600

2018 2019 2020 2021 2022 2023 2024 2025 Source: KPMG

0

2

4

6

8

10

12

14

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014 2015 2016 2017

Source: KPMG

Millions of U

nits

Total (up

link + do

wnlink) traffi

c (ExaBy

tes p

er m

onth)

Data traffic grew 55% between Q4 ‘16 and Q4 ‘17


TM2 Services

ü  Issuing Digital Metals ü  Back Office Technology ü  Growing Investor Base ü  LisQng & Market CreaQon

FOR ISSUERS

The TM2 offers mulQple services to Issuers, Investors and other industry parQcipants through a secure and reliable technology planorm.

Miners Smelters Refiners

Recyclers Mints Manufacturing

ü  Digital & Physical Custody ü  KYC & TransacQonal Compliance ü  Clearing & SeUlement

ü  Electronic Trading (InsQtuQonals can operate sub-‐accounts) ü  P2P TransacQons ü OTC Trading ü  Physical SeUlement & Delivery

FOR INVESTORS

InsQtuQons & Brokers

Industrial Companies

Merchants & Traders

Individual & Proprietary

ü  News & Analysis ü  Futures/OpQons (Secondary Market) ü  Swaps (Secondary Market) ü  Digital & Physical Custody


NOT JUST A TOOL, BUT ALL-IN-ONE KYC/KYB/AML ECOSYSTEM Custom bank-grade compliance environment, risk-based approach, simple customer onboarding workflow depending on your regulator requests, flexible verification steps, and more. All of these make you never worry about identity verification again.

AI-powered facial recognition, computer vision and fraud detection technologies make it easy for users to get started, while rendering all the processes easier and more efficient for you.

Flexible and scalable to meet your needs.

3

Onboarding & Transactional Compliance

The KYC check includes: ü  ID verifica5on, biometric proofing & cross valida5on of data; ü  Address check; Proof of Funds ü  Fraudulent paZerns check; ü  AML screening and ongoing monitoring. ü  Public & Private keys generated through TM2 wallet download

The KYB check includes: ü  Company's vitals and hierarchy, origin of funds ü  Verifica5on of UBOs, directors, key persons, end beneficiaries; ü  AML screening of the company and shareholders on ongoing basis. ü  Public & Private keys generated through TM2 wallet download

ü  The Minfinium Compliance technology has transfer() and transferFrom() valida5on calls occurring during the movement of every digital metal. It will check the sender and receiver address within the Registry and enforce any applicable restraints using the registry as an authority on iden5ty.

ü  The TM2 restricts digital metals holders from trading to any address that has not passed the required verifica5on process.

ü  The restricQons provide issuers assurance that their digital

metals will only be held by authorised investors in full compliance.

Onboarding

TransacQonal Compliance


ISSUERS

Miners Smelters Refiners Recyclers Mints

Listing on the TM2

Issuers

Digital Metals Issuance via TM2 Digital Metals Platform

Listing

Physical Custody

3rd Party Audit Warehouse

Digital Metals

Issuing

Vault

Placement

TM2 OTC

1 3 2 4

5 6

Product Structuring

4.  Digital metals transferred to the investor wallet on purchase and confirma5on of funds transfer.

5.  Instantaneous confirma5on of 1:1 physical backing. 6.  The en5re transac5on process and the exact digital to physical

metals posi5on is audited by regulated 3rd par5es.

Strictly Confidential

June 2018

Management Presentation

•  World class issuers – blue chip issuers with a vaulted, recurring stream of metals are the only issuers the TM2 works with. •  The TM2 offers issuers access via its prime brokers to a global market of investors (retail, insQtuQonal and industrial) •  Clearing, seUlement, digital and physical custody are core TM2 issuer services provided by the TM2. •  Independent Samplers and Assayers assure products conform to strict requirements on quality, shape and weight, as outlined by the TM2.

1.  Issuer agreements are signed and a prime broker nominated, sebng in mo5on the issuing process. Products Structured.

2.  Product Offering and terms and condi5ons are released. Digital metal(s) are created are on TM2 Pla-orm.

3.  The TM2 lists the digital metal(s) on the trading pla-orm. Registered and verified investors are able to transact and trade.


Electronic Trading The TM2 planorm and all interfaces are built for simplicity, safety and effecQve invesQng. ü  Trading is a one-‐click process. Each TM2 traded metal is described in full detail both in printed materials available from the issuer and TM2 and through the investment screens available for each product on the TM2 trading planorm. ü  Digital Metal Overview ü  Digital Metal Product informa5on ü  Digital Metal Purchasing Terms ü  Digital Metals news and analysis

The TM2 interface includes many tools and opQons for metal analysis: ü Mul5ple char5ng op5ons ü  Historical pricing and volumes ü  Independent Broker Reports MulQple payment and deposit opQons are available: ü Wire Transfer ü  Credit & Debit Cards ü  Other op5ons


OTC Services

ü  1-‐on-‐1 service by preferred communica5on method. ü  Global Coverage 24/7. ü  Private bespoke service for large, disrup5ve transac5ons. ü  Services to ins5tu5ons and HNMI for large order fulfillment. ü  Discrete, secure and effec5ve execu5on and seZlement services.

ü  Expert market insight. ü  The trade desk has deep market knowledge and connec5ons.

ü  TM2 OTC costs are lower than other forms of metal ownership.

OTC FEATURES OTC trading takes through the TM2 Trade desk •  To become an OTC client you must go through the standard TM2 onboarding compliance process, obtaining the highest level of verifica5on, to enable large transac5ons.

•  The investor’s digital metals are kept in special, highly secure OTC wallets operated by the TM2 OTC trade team.

•  Once you on-‐boarded, open up a line of communica5on, via chat, text or voice call with the trade-‐desk about your preferred trades and digital technology metals that interest you.

Terms and Eligibility The minimum order size is $50,000 but excep5ons can be discussed on a case-‐by-‐case basis.

The TM2 OTC executes customer’s instrucQons provided through preferred customer communicaQon channels with full transacQon reporQng.


Clearing & Settlement The TM2 network is a worldwide collecQon servers hosted and maintained by all the different verified parQes (vaults, issuers, banks, -‐any verified party who wants to host) to the TM2. The distributed nature is a primary security feature of the network and makes it reliable and safe. All these servers—the network of nodes—validate transacQons and exchanges of informaQon and data. •  Buy/Sell transacQons are cleared instantaneously •  SeUlement via physical delivery T+5 aaer redempQon noQce received

•  The TM2 distributed ledger is a private and permissioned database that is shared, replicated, and synchronized among the trusted members of the TM2, ensuring that the ledger is updated only with network-‐verified transac5ons by approved par5es.

•  The Registry Service holds the en5re register of all investors that have been

approved to transact on the TM2 and includes their trading status, permissions and KYC & AML manifesta5ons.

Registry

Compliance

CommunicaQons

Trust Services

KYC/AML– RegistraQon,Rules

Distributed Ledger (DL)

Data

Digital Security, Clearing & SeUlement

DL

DL DL

DL

DL

DL

TM2 NETWORK

TM2


Digital & Physical Custody

•  The investor has full direct 5tle to the digital products (and the underlying physical metals backing it) and controls its movement via a personal digital wallet.

•  The investor’s digital metals are kept in special, highly secure OTC wallets operated by the TM2 OTC team. The TM2 OTC team executes customer’s instruc5ons provided through preferred customer communica5on channels with full transac5on repor5ng.

•  The custodian is responsible for safekeeping physical metals backing the digital metals investments. Custodians (Vaults) are available to technology metals investors in Singapore, the U.S.A and U.K.

•  Investor’s metal is segregated and iden5fied. With the BRD for example-‐ in a weight list of boZles of rhodium sponge showing the unique boZle seal number, batch number, gross and net weights and the assay or fineness of each boZle. Other product specifica5ons could vary.

•  Custodial partners hold ulQmate beneficiary informaQon (via synchronized and distributed metals ownership ledger copies on their servers) and are last line providers of security and idenQty verificaQon.

Physical RedempQon •  In addi5on to cash redemp5on, investors can also order the redemp5on and delivery of metal in forms offered by each specific issuer such as

sponge, ingots, bars, coins or other.

OTC Digital Custody

Physical Custody

TM2 Digital Custody •  The investor has full direct 5tle to the digital metals (and the underlying physical metals backing it) and controls its movement via a personal

digital wallet. •  The investor can keep wallets both on his personal devices (Cold wallet – heightened security) and directly on the TM2 (Hot wallet –

standard security) as is most convenient. •  From the Wallet window, investor can see all metal balances and transac5ons. Investor can also deposit funds, withdraw funds and redeem

physical metals at any 5me.


Digital Ledger & Clearing Technology

ü  The distributed ledger is shared, replicated, and synchronized among trusted worldwide servers of the TM2 recording all transac5ons.

ü  Trusted TM2 servers validate and clear all BRD transac5ons.

Registry and Compliance Technology

ü  The Registry holds the list of all investors approved to transact the BRD on the TM2 and includes trading status, balance, permissions and status.

ü  Full KYC & AML onboarding compliance ü  Ongoing transac5onal compliance.

ü  The TM2 planorm was custom-‐built on proprietary technology called Minfinium.

ü  Minfinium is a financial technology and exchange engine built to enable the creaQon, transfer, trading and custody of digital backed by physical metals.

Digital & Physical Security

ü  The TM2 has powerful security features. ü  Only verified and registered users. ü  BRD is backed by vaulted physical metal ü  Intrusions can be blocked or rolled back ü  Ledger is synchronized and replicated ü  Full AES-‐256 encryp5on

NOT JUST A TOOL, BUT ALL-IN-ONE KYC/KYB/AML ECOSYSTEM Custom bank-grade compliance environment, risk-based approach, simple customer onboarding workflow depending on your regulator requests, flexible verification steps, and more. All of these make you never worry about identity verification again.

AI-powered facial recognition, computer vision and fraud detection technologies make it easy for users to get started, while rendering all the processes easier and more efficient for you.

Flexible and scalable to meet your needs.

3

ü  Clear and simple user interacQon ü  Lightning fast transacQonal capabiliQes ü  Onboarding and 24/7 transacQonal compliance ü  Streamlined clearing and seUlement ü  Distributed ledger for transacQons, data and info validaQons ü  Investor digital wallet controls physical metal

FEATURES

MINFINIUM™ - Our Financial & Technology Engine


Risk Mitigation and Security Risk name AcQviQes to minimize MiQgaQon Approaches

TM2 planorm Failure •  All investors insured. •  Copies of the distributed ledger are installed in the vaults and with

other registered members of the TM2 ensuring mul5ple synchronized back-‐up ledgers.

•  Users contact the vaults directly to retrieve their assets.

Stealing user website account password •  Using SSL on website •  Tips for the user to keep passwords in their own memory only •  2-‐Factor Authen5ca5on •  No5fica5ons about deals •  Flags about untypical trading

•  The user independently changes or recovers the password •  Rollback of all illegal transac5ons •  Blocking of the Intruder

Stealing user private key •  Private key encryp5on using AES-‐256 method •  Decryp5on of the private key only at the 5me of signing the transac5on •  Tips for the user to keep passwords in their own memory only •  No5fica5ons about deals •  Flags about untypical trading

•  Block Intruder •  In case of abduc5ng user digital coins, TM2 blocks user

wallet permanently and re-‐issues digital coins to the new wallet

•  Rollback of all illegal transac5ons Forgerng or losing the user account password •  -‐ •  The user independently changes or recovers the password

Unfair investor uses the system •  KYC/KYB procedures •  Permanently block user

Issuer trades unbacked product •  Vault/Issuer posi5on mirror-‐checks •  Burn unbacked product

Forgerng or losing the private key •  -‐ •  Permanently block user public key and re-‐issue digital metals to the user

Planorm infrastructure failure •  Regular backup of all data •  Using a failover cluster for the produc5on system

•  Restore system from backup •  Causes of failure inves5ga5on

Errors in code •  Regular regression tes5ng of the en5re system a_er updates •  Code review by team members

•  System update to fix bugs

Developers sabotage •  Using sta5c code analyzers •  Code review by team members

•  Backdoor removal •  Inves5ga5on and damage assessment

System administrators sabotage •  Regular backup of all data to a storage not available to the administrator

•  Control of administrator ac5ons by security service

•  Inves5ga5on and damage assessment •  System restore from backup

Losing systems administrators private key or account password

•  Private key encryp5on using AES-‐256 method •  Decryp5on of the private key only at the 5me of signing the transac5on •  Implemen5ng and following the policy of password storage and change

•  Temporarily stopping the system, changing administrator keys and restoring the system star5ng from an uncompromised block

AUempts to withdraw the money stolen from digital metals planorm as a result of hacker aUack

•  Manually check all transac5ons connected with the account in ques5on •  Spot check of the transac5ons between the account in ques5on and

other pla-orm users •  Account ac5vity history review

•  Making a legal claim against the perpetrator


TM2 Roadmap

Aug Sep Oct Nov Dec Jan Feb Mar Apr

2019 2020

•  First Metals Audit •  Target: 10 metals listed and

traded on primary and secondary market

•  Launch of Secondary Market •  Exchange Matching Engine

introduced and Adopted Rhodium Stage I Target £50 M

•  Aug 1 -‐Soa launch of the TM2 •  BRD Launched. More Issuers •  MulQple offerings prepared •  July-‐August TesQng

•  Build InsQtuQonal Liquidity for the BRD and more metals under TM2

•  Sep – Nov Issuer Roadshow

Fine-‐tune and bring to market first digital metals products InsQtuQonal Investors & Industry Partners Build Liquidity

STAGE I Retail Sales Development Focus Release Mobile Version of TM2 Updates and Increased FuncQonality

STAGE II Secondary Market launched Updates and Increased FuncQonality ConQnued Business Development

STAGE III

•  Mobile Planorm Launch (Android & IOS) •  Retail MarkeQng Launch

Target: 10+ Metals Products

Rh Au

Ag

Co

Ga

Pt

Pd

Te

Ru Re V


TM2 Fee Structure

FEE TYPE COMMENTARY FEE

ISSUING/REDEMPTION FEE BRD (Baird Rhodium Digital)-‐ Other Product issuing/redemp5on fees vary Physical redemp5on fees can incur other charges including transporta5on costs and min5ng fees if other than like for like redemp5on.

1.65%/.25%

OTC COSTS OTC Trade Services 2.45%

SEND/TRANSFER Wallet to Wallet Transfers .25%

CUSTODY BRD (Baird Rhodium Digital) All investors pay the administra5on fee (the fee includes administra5on, insurance and vault’s storage costs). Other Product issuing/redemp5on fees vary The fee is the specific percent of all digital metals amounts held in the investor wallet.. Fee is calculated on a daily basis based on the digital metals the investor holds.

.50

LISTING FEE Fees (per product) related to new issuers £65,000

SECONDARY MARKET FEES Secondary Market will go live in January 2020 and offer futures, op5ons and swaps in addi5on to a number more deriva5ves.

TBA

MEMBERSHIP FEE (Annual)

Individual Investor Member Ins5tu5onal Investor Member Industrial Member Broker Member (Market Maker/LP System) Prime Broker (+List and sponsor issuers) Issuer Member (with traded products) Founder Member (3 year membership, right to list 3 products) Custody Member

£0 £0 £0

£5500 £9500

£24,500 £100,000

£0 OTHER PRODUCT FEES Bespoke Coin & Bar Redemp5on Service

Specialised Orders – Products/Collec5bles

As of October 20, 2019


Thank You!

Petur Georgesson, Managing Partner [email protected]

Capital Sniper does not provide investment advice. It is presenQng informaQon on Digital Metals, TM2, current and historical markets for rhodium. Any decision to purchase or sell digital metals is ulQmately an investor’s own decision. Capital Sniper will not be liable for any loss suffered.

The principal-‐to-‐principal metals market is not in itself regulated by the United Kingdom Financial Services Authority (FSA), although some of the parQcipants may be regulated to the extent that they trade in rhodium derivaQve products or they need to be FSA regulated by virtue of other aspects of their business.

Technology Metals Market Ltd. 55 Loudoun Road , St. John's Wood, London, NW8 0DL, United Kingdom

Create account or call TM2 OTC.

2 3 4

Pass KYC and AML compliance

Deposit Mul5ple op5ons.

You’re ready to go. Trade, Hold, Redeem

1

Trade Desk

www.TM2.market +442036080605

Documents

TM2: Presentation...July 2019 MARKETING PLAN STRATEGY & OPTIONS DRAFT TM2: Presentation October 2019 Technology Metals Market – 21st Century Metals and Beyond Strictly Private &