INVESTMENTS

CAPITAL PROJECT – GENERAL


1. Supplement Green Two LLC:  This project is budgeted at $5 million (see attached documents concerning this project). It is to purchase, and equip, an existing plant building and 240-acres located near Fallon, Nevada to be used for the extraction of gold and other valuable minerals in our ore. Besides creating a positive cash flow to the LCL, this project would also provide a Bank Feasibility Study for the overall Companies properties. The Companies have acquired the three (3) major State permits to operate this existing plant building, as an extraction plant. There are a few small improvements that have to be made to the plant prior to operations. These are cosmetic items.

2. Proposal for Supplement Green Two LLC and Three (3) additional LLC:  This project is budgeted at $20 million, being the $5 million for the existing SGT LLC and the creation of an additional three (3) LLC plants to increase production capabilities for future expansion. The three (3) additional plants are budgeted at the same cost as SGT LLC, as new plant buildings are required to be constructed. These new plant buildings will be enlarged to increase the production level of the plants. (See attached documents)

3. Main Business Plan:    This main Business Plan was designed to create a major mining facility with all the necessary infrastructure facilities to support such an endeavor. This Business Plan was budgeted at $356 million. When it became apparent to management that certain new Securities and Exchange rules instigated due to the BRE-X, Indonesia mining scandal, and the collapse of the USA and World financial industries, and keeping the Private Corporation status of the Companies in place, the Companies elected to proceed with items (1) and (2) above. (See attached parcel main Business Plan)

Management feels that once item (1) is completed, and successfully implemented, that major funding for the main Business Plan could acquired through various mineral financing options available to producing Companies.

Sale of Companies Prior to Production: The Companies’ properties have an intrinsic mineral value of greater than $1.2 billion prior to production. Once production is achieved from items (1) or (2) above, this value would increase to $12 billion. (see attached engineering reports on three (3) of the Companies’ privately owned, fee simple Mineral Estates). The Company, FMC, would sell its outstanding, and issued shares, and transfer the KFSG stock to the purchaser (FMC owns all the stock of KFSG).

Sale of Companies after Production: $12 billion. Same terms as item (4) above.

SUMMARY

The Companies have multiple data reports available on its computer files that can be transmitted other than those being attached with this letter. It also has the Geological and Coring Report with some ancillary data on two computer disks. I believe I have provided you with these two disks.

GENERAL NOTICE

The Companies feel that disclosure of other financial forays needs to be disclosed.

Over the years, the Companies have had many other companies, and private entities, contract with the Companies on all of the above option items. None of these contracts completed. Since then, the Companies have not sought to offer the sale of the Companies. 

The Companies have other groups, and entities, discussing the capitalizing of items (1) and (2) above. So far, none of these have performed. Seems everyone wants gold, but no one with any funds.

The Companies currently turn down interest from other mining companies. Until the item (1) plant is operating, discussions with majors is not advantageous to the Companies.

Supplement Green Two LLC

Approximate Ore Value Designated to LLC Plant

PROJECTED INTRENSIC ORE VALUE TO LLC(S)

The below approximate tonnage of ore to be delivered to the Extraction Plant has a value. While title to the property containing the ore is not transferred to the LLC(s), a “Right to the Ore” is given. This “Delivery Right” is a non-taxable event. In the event, the plant(s) are expanded to process additional ore amounts, the “Delivery Right” amount will increase accordingly.

10-tons x 7-days = 70-tons a week x 52-weeks = 3,640 tons

3,640-tons x 20-years ( can be greater than 20-years) = 72,800-tons

72,800-tons x approximately $6,000.00 per ton mineral value = $436,800,000.00

Assuming the SGT LLC plant becomes operational, then the “ORE VALUE” of the LLC over the life of each LLC(s) will be approximately: $436,800,000.00

NOTE: If FMC is purchased, the LLC(s) will have the right to sell its ore value, and production, along with FMC, OR the LLC(s) have the right NOT TO SELL and stay in production with their “Ore Rights” staying effective, as each LLC is a stand alone entity.

Supplement Green Two LLC:  This project is budgeted at $5 million (see attached documents concerning this project). It is to purchase, and equip, an existing plant building and 240-acres located near Fallon, Nevada to be used for the extraction of gold and other valuable minerals in our ore. Besides creating a positive cash flow to the LCL, this project would also provide a Bank Feasibility Study for the overall Companies properties. The Companies have acquired the three (3) major State permits to operate this existing plant building, as an extraction plant. There are a few small improvements that have to be made to the plant prior to operations. These are cosmetic items.

Proposal for Supplement Green Two LLC and Three (3) additional LLC:  This project is budgeted at $20 million, being the $5 million for the existing SGT LLC and the creation of an additional three (3) LLC plants to increase production capabilities for future expansion. The three (3) additional plants are budgeted at the same cost as SGT LLC, as new plant buildings are required to be constructed. These new plant buildings will be enlarged to increase the production level of the plants. (See attached documents)

Main Business Plan:    This main Business Plan was designed to create a major mining facility with all the necessary infrastructure facilities to support such an endeavor. This Business Plan was budgeted at $356 million. When it became apparent to management that certain new Securities and Exchange rules instigated due to the BRE-X, Indonesia mining scandal, and the collapse of the USA and World financial industries, and keeping the Private Corporation status of the Companies in place, the Companies elected to proceed with items (1) and (2) above. (See attached parcel main Business Plan)

Management feels that once item (1) is completed, and successfully implemented, that major funding for the main Business Plan could acquired through various mineral financing options available to producing Companies.

Sale of Companies Prior to Production: The Companies’ properties have an intrinsic mineral value of greater than $1.2 billion prior to production. Once production is achieved from items (1) or (2) above, this value would increase to $12 billion. (see attached engineering reports on three (3) of the Companies’ privately owned, fee simple Mineral Estates). The Company, FMC, would sell its outstanding, and issued shares, and transfer the KFSG stock to the purchaser (FMC owns all the stock of KFSG).

Sale of Companies after Production: $12 billion. Same terms as item (4) above.

SUMMARY

The Companies have multiple data reports available on its computer files that can be transmitted other than those being attached with this letter. It also has the Geological and Coring Report with some ancillary data on two computer disks. I believe I have provided you with these two disks.

GENERAL NOTICE

The Companies feel that disclosure of other financial forays needs to be disclosed.

Over the years, the Companies have had many other companies, and private entities, contract with the Companies on all of the above option items. None of these contracts completed. Since then, the Companies have not sought to offer the sale of the Companies. 

The Companies have other groups, and entities, discussing the capitalizing of items (1) and (2) above. So far, none of these have performed. Seems everyone wants gold, but no one with any funds.

The Companies currently turn down interest from other mining companies. Until the item (1) plant is operating, discussions with majors is not advantageous to the Companies.

Supplement Green Two LLC

Approximate Ore Value Designated to LLC Plant

PROJECTED INTRENSIC ORE VALUE TO LLC(S)

The below approximate tonnage of ore to be delivered to the Extraction Plant has a value. While title to the property containing the ore is not transferred to the LLC(s), a “Right to the Ore” is given. This “Delivery Right” is a non-taxable event. In the event, the plant(s) are expanded to process additional ore amounts, the “Delivery Right” amount will increase accordingly.

10-tons x 7-days = 70-tons a week x 52-weeks = 3,640 tons

3,640-tons x 20-years ( can be greater than 20-years) = 72,800-tons

72,800-tons x approximately $6,000.00 per ton mineral value = $436,800,000.00

Assuming the SGT LLC plant becomes operational, then the “ORE VALUE” of the LLC over the life of each LLC(s) will be approximately: $436,800,000.00

NOTE: If FMC is purchased, the LLC(s) will have the right to sell its ore value, and production, along with FMC, OR the LLC(s) have the right NOT TO SELL and stay in production with their “Ore Rights” staying effective, as each LLC is a stand alone entity.

PROJECT OVERVIEW