mof presentation 110727

Commodity Capital MidasLetter Opportunity Fund

Early Investments in Emerging Resource Companies

PORTFOLIO ADVISORS LIMITED

Investment Philosophie

Investment in Commodity Companies All Commodities Focus on Precious Metals

Main Focus: 30 % Majors 50 % Junior Companies 20 % Exploration Companies

Seasonality Consistent Money-/ Risk Management Currency Hedge

Investment Objective

Superior returns through investment in early stage and advanced exploration companies with management that consistently delivers shareholder value through project acquisition and exploration.

•Primarily TSX and TSX Venture Listed Companies; •Emphasis is on Precious Metals •Active portfolio management to manage against risk due to increasing volatility; •Seed, Secondary, and Pre-IPO Private Placment Financings

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Investment PhilosophieInvestment decisions due to the mine life cycle

Source: Newmont; Minefinders, own Illustration

Exploration Focus• High Risk• Potentially High Value

Corporate Focus• Joint Venture Opportunities• Lower Risk

Greenfields Pre-Discovery

1 – 2 Years Discovery

2 – 3 YearsFeasibility &Permitting

Depletion2 Years Development

1 Year Start-Up

Speculative StockAhead Of Known Value

SpeculatorsLeave

Full Value

Institutional Investing Begins

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Early Mover Advantage:- Limited Information- Portfolio Approach

Development Projects:- Permitting Issues- Lack of Operating/

Technical Skills- Capital Constraints

Mergers & Acquisitions:- Strategic- Synergistic

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Investment Strategy

Focus on Precious Metals Explorers/Producers Listed on Cana-da’s TSX and TSX Venture Exchanges

•Up to 30% Into Pre-IPO Companies with Proven Management; •Up to 60% Into Secondary Offerings in Advanced Companies; •Up to 20% Into Free Trading Shares Where Market Mis-pricing creates value opportunity; •Up to 100% Into Precious Metals in the Event of a Crisis

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Example for an investment

Nevsun – From explorer to producer

Succes in explorationOn the way to productionDevelopment





Investment Strategy

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Example of an investment

Uranium Energy – The new Uranium producer

Start of Production in October

Exploration success

Moment of Investment

Development





Typical Investment: Publicly Listed Company

MidasLetter Invited into private placement

MidasLetter exits investment

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ATAC Resources – Successful exploration company in the Yukon

Site visit and investment





TypicalInvestment:Pre-IPOfinancing

MidasLetter invited to participate in pre-IPO financing.

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Golden Minerals – Successful silver exploration company in Mexico / Argentina

Investment





Investment Strategy: Private company, CPC or Inactive Shell

MidasLetter first invited into ReMac Zinc at $0.20 prior to name change. (Inactive Shell)

Second MidasLetter investment participation at $0.67 on March 21, 2011

Thanks to our site visit and subsequent relationship with drillers, we were aware ahead of the market that the drilling results were not looking good.

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Investment Process

Fundamental AnalysisStock-picking

Quantitative (NPV, Mcap/oz., in-situ value)Qualitative (Management, local visits)Geology

Mine life cycle

Technical analysis

Sector- and Country rotation

Seasonal trend model

Exclusion of political instable Countries





Investment Strategy: The MidasLetter Advantage

• Due to the high level of exposure brought to public companies by James West’s visibility and audience, public company entrepreneurs seek his early participation to assure an audience when the company goes public.

• Eager to maintain a favourable impression with the MidasLetter audience, companies invite us to attend site visits with analysts and/or privately with our own geologists.

• We focus on building relationships on such site visits with the people on the ground so we have a direct pipeline of information into all levels of the company: Investor relations, senior management, institutional investors, and technical staff on the ground.

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Explorer and Junior Mines are coming producers New discoveries are solely from small cap and junior mines Majors have a lack of qualified experts and qualified exploration

targets Majors have to replace produced gold Junior Mines and Explorer are takeover targets Explorer and Junior Mines do outperform in a bull market

Majors vs. Junior or Explorer?Investment Philosophie




MidasLetter Opportunity Fund: Why Invest Now?

The spread of sovereign debt deterioration due to excessive borrowing versus dimnishing tax base means opportunity for precious metals investors:

•Central Banks are net buyers of gold; •Gold and silver investment by small individual investors is on the rise. •Major companies are unable to replenish produced ounces without buying junior companies at increasing valuations; •Majorinvestmentbanksareholdingrecordprofits,willingtofinanceadiminishingqualityofprojectflow; •Global rates of discovery are going down.

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Controlling

Money Management Buy and sell pyramidRisk controlling by “stop loss techniques”

Permanent controlling of the Value at risk through a mathematical model





Advantage of MOF over other funds

•Solid relationships with companies and C-suite staff; •MidasLetter’s repuation as authoritative information source means we are able to drive retail and institutional investors towards our investments as they mature; •We get the pick of the crop when it comes to start-up vehicles; •We have an insider’s view of the companies as they progress ; •We pay an average lower cost of entry in line with founders and stage investors. •Both the fund manager and the portfolio advisor have focused experience in the emerging resource company space.

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Investment body of arguments

In the following body of arguments, gold is used as a synonym for the perspective and devellopment of precious and basic metals.

Increasing Demand Decreasing Supply Physical Gold vs. Gold Mines





The Fund Manager: Tobias Tretter

Tobias Tretter has been active in capital markets for 14 years and focused on investment in emerg-ing commodity companies since 2000.

Tobias got his first practical experience as a trainee of Credit Suisse AssetManagement. Later he worked for the Dr. Jens Ehrhard Group – an asset management group with ~US$14 billion assets under management. He supported the management of the DJE Gold and Resources Fund and re-ceived the award for best performing Gold Fund in 2003.

From 2005 to 2008 he co-founded and co-managed the Stabilitas commodities funds, which re-ceived the distinction “Best Performing Gold Fund” in 2006.

In addition to this, he founded his first own fund (LBLux Sicav Fis Junion Mining). Since 2009 Tobias is the CIO and CEO of Commodity Capital AG, Zurich. He is responsible for the Commodity Capital Global Mining Fund and the Set up and supervision of Commodity Capital’s indices.

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Extreme underweighting in commodities

Source: own illustration, McKinsey & Company, IMF, Barclays





The Portfolio Advisor: James West

James West has been a capital markets entrepreneur in Canada and the United States since 1990. He founded Elgrande.com Inc., and early competitor to Amazon.com, which achieved a US$200 mil-lion market capitalization. He established boutique Corporate Finance company Resourcex Financial Group in 2004 and before founding the newsletter, Midas Letter.

He established the MidasLetter in 2008, which in three short years became Canada’s most authorita-tive independent voice in the emerging resource sector with a reputation for impartiality and objectiv-ity. MidasLetter’s 6,000 global subscribers include investment advisors, fund managers, investment bankers, public company CEO’s, geologists, mining engineers, and individual high net worth inves-tors.

James West is a frequent guest on Canada’s Business News Network, where he is a recognized expert on gold, silver, commodities and emerging public companies on the TSX and TSX Venture Exchanges.

His relationships within the global emerging resource sector stem from his roles in the last twenty years as CEO, corporate development, financial marketing advisor, investor relations services com-panies, and relationships with the global institutional investment community.

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Fund Structure

SICAV Fis (UCI) : A Fund Vehicle under the Luxemburg law of 13th February of 2007RegulatorilysupervisedbyCSSF(Luxemburgfinancialauthority)

Capital structure:The share capital structure can be very flexible. The minimum capital required for a SIF amounts to EUR 1.250.000. This amount must be reached within twelve months of receiving approval from the CSSF. Every subscriber needs to be a sophisticated or institutional investor and needs to invest a minimum of 125.000 € or equivalent.

AuthorisationA SIF may start its activities before approval by the CSSF, provided that within a period of one month fol-lowing the creation of the SIF an application for approval is filed with the CSSF.

Custodian: The custodian’s role is restricted to the safekeeping and general supervisory functions and has to be done by a bank supervised from Luxemburg financial authorities (CSSF)

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Fund Structure

Valuation, accounting and reportingThe terms and conditions applicable to the subscription and/or redemption of shares or units of a SIF will be the ones described in its Issuing Document, implying a softening of the regulation and supervision by the CSSF relating thereto. As regards the valuation of the assets of a SIF, the SIF Act requires that this valuation be made in accordance with the accounting principle of “fair value”.

InvestmentsThe SIF Act grants increased flexibility in terms of eligible assets. A SIF may invest in transferable secu-rities, money market instruments, real estate, hedge funds, funds of funds, private equity, commodities, financial derivative instruments, debt instruments, microfinance, etc. SIFs will remain subject to the prin-ciple of risk spreading.

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Goldmines vs. Dow Jones Industrial

Outperformance of Gold Mines vs. DJ Index in deflationary and inflationary trends.





Fund Structure

Name

TypeAdministratorInvestment AdvisorCurrencyMaturityUpfront FeeManagement FeePerformance FeeMaintenance FeeCustodian FeeMinimum InvestmentDistribution markets

Commodity Capital Sicav Fis Midas Letter Opportunity FundSICAV Fis (Luxemburg law)Hauck & AufhäuserMidasLetter Portfolio Advisors Ltd.EUR, CADOpen EndUp to 5%Up to 1% Annually20% with HWM1%0.08 % annually€125,000 or Equivalent $CADLuxembourg, Germany, Canada


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Shrinking Gold production

Source: GFMS





Contact Information

Commodity Capital AG Talacker 35 PO Box 2435 8022 Zürich Tel.: 0041 71 9111 811 Fax.: 0041 71 9111 831 Mobil: 0049 178 450 9022

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