CM_CaseForSupport_Community

COMMUNITY CASE FOR SUPPORT

Crabbe Mountain Current Shareholders ● ● ● ● ● ● ● ● ● ●

Mary Jane Logan George Peppin Mike Davis Jim & Anna Marie Gorham Chris Ramsey Ron Reeves Dr. Janice Wilson Cindy MacDougall Debbie Northrup Dr. Martin Bélanger

Crabbe Mountain Board Members ● ● ● ● ● ●

Cindy MacDougall (President) George Peppin (Vice-President) Tristan Hovey (Secretary) Bryan Burgess Ron Reeves Two Board Position in process of being filled

THROUGHOUT OUR 60-YEAR HISTORY, Crabbe Mountain has been supported by the many families and friends who have made this mountain their winter playground.

OUR MISSION IS SIMPLE To be East of Ordinary and establish Crabbe Mountain as Atlantic Canada’s destination for skiing and riding.

We understand that improvements need to be made in key areas to accommodate growing demand while preserving a memorable Crabbe experience and ensuring long-term viability.

WHY NOW?

Our last major investments date back to the 1980s and between 2015 and 2021, our annual skier visits grew from 35,000 to 50,000..

This growth serves as the catalyst to think a little bigger and develop a long-term Hill Master Plan that builds on our 60-year story and provides a framework for our next 60 years.

AT OUR OPEN HOUSE, WE UNVEILED THE DRAFT HILL MASTER PLAN THAT PROVIDES AN OUTLINE FOR OUR FUTURE GROWTH.

WE LISTENED

to your feedback and priorities.

WE ENGAGED

the broader community to ensure our priorities are aligned.

WE INCORPORATED

this feedback into the overall plan.

WE ARE READY

WE PRIORITIZED

where to focus our efforts first.

to implement phase 1 of this multi-phased Capital Investment Campaign.

WE ARE STOKED TO ANNOUNCE…

2025 CAMPAIGN COMMITTEE ● ● ● ● ● ● ● ● ● ●

Tristan Hovey Cheney Jacqueline Murray Scott Dubreuil Mary Jane Logan Steph Fox Misty Wade Hovey Marla Pisegna Adam Mix Travis Bergin

CRABBE MOUNTAIN 2025 $5.5M CAPITAL INVESTMENT CAMPAIGN To truly become East of Ordinary, we need to: ● replace aging infrastructure ● improve your skier and rider experience, and ● ensure long-term sustainability for generations to come.

Capital Investment Campaign Breakdown

$3.5M

Funding that will come from business operations and other financing sources

$2M

Additional funding that is necessary to go beyond our current standard of care and service

OUR INVITATION

CRABBE MOUNTAIN 2025 CAMPAIGN FOCUS

LODGE EXPANSION • Improved experience, function, and flow, with a focused approach eliminating friction points and increasing likelihood of creating new life-long skiers and riders.

• Accessibility.

• Over 80% increase in guest seating - approx. 200 additional seats • Over 100% increase in changing area space.

• 30% increase in locker space - approx. 65 more lockers • Larger, more efficient kitchen and restaurant work space.

• Doubled washroom facilities.

LIFT IMPROVEMENTS • Magic Carpet • Improved experience and retention potential = more future skiers and riders • Increase in capacity from 320 to 1450 people per hour • Complete TBar overhaul • Improved reliability • Increase uphill capacity by 30% - approx. 288 more people per hour

N

With COVID loading restrictions easing, we expect to move from approx. 60% loading efficiency to 80% next year, an increase of 371 people/hr which will reduce the significant lineups we’ve seen the past 2 COVID years

SNOWMAKING • 50% increased capacity = 100% increase in productivity potential.

• Open for season sooner.

• Open more terrain - faster.

What does this get us?

Dave’s Dream done in 5 days of snowmaking vs 10.

Added bonus of Flume in same 5 day window.

15-20 days of snowmaking being compressed to 5-10 to start the season.

LAND DEVELOPMENT • Reconfiguration of lodge area for future development.

• Increase parking capacity.

• Beginner route connecting Dave’s Dream to mid-point Greg’s Way. • Evaluate potential for continued real-estate development.

FOUR - SEASON • Event Hosting leveraging new lodge space.

• Continued exploration of summer/fall recreation: • Mountain Bike • Camping • Hiking • ATV destination

NEXT GENERATION • Increased rental fleet by 100 sets • New groomer for freestyle development • Improved access to beginner terrain • Magic Carpet benefits • Preserving the tradition for the next generation of lifelong skiers and riders

CRABBE 2025 INVESTMENT OVERVIEW

Investment Item Lodge Expansion

Expected Cost

Notes

$4,000,000

Project cost is $3.5M with an additional $500K contingency amount

Lift Improvements

$425,000

T-Bar upgrades and Magic Carpet

Snowmaking

$747,000

Includes equipment and additional piping needed

Land Development

$130,000

Lodge and parking area reconfiguration

Four-Season Next Generation Total

$0 $187,000 $5,489,000

Evaluation of options Rental fleet, groomer (freestyle) & Dave’s beginner access to chairlift

THE GOOD NEWS?

WE’VE ALREADY STARTED! 2017 - our longer term vision for 2025 included a lodge expansion plan.

2020 - our lodge expansion plan quickly pivoted and shifted to 2023 with increased skier visits and Crabbe Mountain being selected to host the freestyle moguls, alpine and para-alpine ski events for the 2023 PEI Canada Winter Games.

2021 - Canada Winter Games’ financial contribution kick-started our investment campaign with approximately 3% of the funding needed for Crabbe 2025

CRABBE IS OUR COMMUNITY MOUNTAIN Crabbe is our Community Mountain. To this day, our shareholders have been instrumental in keeping the hill from closing in 2015 and supporting its continued place as a key employer and recreation destination for families in our local area.

● ●

Crabbe is the second largest employer in the immediate area next to AV Nackawic, with about 125 full and part time seasonal employees.

The hill currently operates as a for profit corporation, however the shareholder focus is on using proceeds from the hill for continued operations and renewal & expansion of the hill’s capacity for the benefit of the community - not profit taking.

Between 2015 and 2022, with their support, we’ve reinvested 100% of profit back into the mountain. Over $2M has been reinvested in lifts, grooming, buildings, snowmaking, rental equipment and more.

Crabbe is in a solid financial position to continuing offering the current standard of care and service that our community and visitors expect.

NOW IS THE TIME TO RAISE THE (CHAIRLIFT) BAR.

OUR $2M INVITATION This is a big step since our last major investments in the 1980s and our more recent reinvestments to maintain what we have. In order for Community Mountains like ours to take this next step, additional capital is required. We need YOU to help us raise $2M towards this $5.5M capital investment plan and help make CRABBE MOUNTAIN 2025 a reality.

VIDEO

Crabbe 2025 Investment and Funding Campaign $5.5M Investment over 2-3 Years $2.0M to Raise

New Shareholders

Local Business Partners

Community

COMMUNITY CONTRIBUTIONS

○ Members of the Crabbe Community can help to bring Crabbe 2025 to life through a limited number of packages being made available Benefit/Perk Special Edition FOUR-year pass . Lock in 2022/23 pass pricing until 2025/26 Crabbe Mountain gift cards (Cannot be used against pass) Transferable lift tickets Limited Edition Crabbe 2025 Swag

$2.5K

$5K

$7.5K

$10K

$15K

One Individual Season Pass

Two Individual Season Pass

One Family Season Pass

One Family or Three Individual Season Passes

One Family or Three Individual Season Passes

$75 per year for 4 years

$250 per year for 4 years

$200 per year for 4 years

$700 per year for 4 years

$1,200 per year for 4 years

1 ticket per year for 4 years

2 tickets per year for 4 years

5 tickets per year for 4 years

5 tickets per year for 4 years

10 tickets per year for 4 years

One Hat or One Toque

One Hat and One Toque

Two Hats and Two Toques

Two Hats and Two Toques

Two Hats and Two Toques

25

15

10

20

10

Name included on community builders locations on fireplace, at main entrance, and on website.

Crabbe 2025 Wood Sign by Atlantic Laser Works/Ridge Cedar in Keswick Ridge Reservable table in lodge # of Packages Available (subject to change)

FINANCIAL CONSIDERATIONS ●

A detailed 10 year financial plan has been developed incorporating Crabbe 2025 capital investments, operating costs and benefits over the longer term ○

The plan has been developed using conservative estimates and includes a margin of safety to ensure that the Hill can weather negative financial impacts

○

Crabbe is in a solid financial position to maintain what we have and the current standard, which we know can be improved

For those interested in becoming a shareholder - We would be happy to share financial information after signing a non-disclosure agreement

CRABBE 2025 NEEDS YOU ●

Our Big Little Mountain is about to get a little Bigger. It can, but only with your support. Investments can only be made as funding commitments are secured ○

Without additional funding from New Shareholders, Local Business Partners and Community Contributions, we simply cannot deliver the focus areas of Crabbe 2025 (Lodge, Snowmaking, Lift Improvements, etc.)

○

If we raise < $2M - not all investments can be made in the next few years

○

If we raise > $2M - we will be able to accelerate Phase 2 of the Hill Master Plan

JOIN US IN BRINGING CRABBE 2025 TO LIFE! Interested in helping the effort as a new shareholder or local business partner?

Connect with us to learn more and book a meeting Interested in helping as an active community member? Please check out crabbemountain2025.com or reach out to us below.

Who else could be interested in Crabbe 2025 and how they can help? Please let us know.

Jacqueline marketing@crabbemountain.com Cheney

gm@crabbemountain.com

OUR EAST OF ORDINARY IS JUST GETTING STARTED!

WWW.CRABBEMOUNTAIN2025.COM