LODE Business Plan 3.6

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LODE PROJECT BUSINESS PLAN V3.7 / December 2020 / lode.one

Constructing the digital money of the future. Welcome to the LODE Community, the birthplace of the honest money revolution. A global system built with real money, created by the people, for the people.


LODE IS A TRUE COMMUNITY LODE PROJECT 04 OVERVIEW 07 DIGITAL ASSETS 09 LODE PILLARS 12 CORPORATE STRUCTURE 14 STEERING COMMITTEE 16 LODE OPERATIONS 18 SPA MEMBERS 20 GOVERNANCE 24 SPAC MEMBERS 26 PROJECT ETHOS 32 COMMUNITY & COMMUNICATION 34 MARKET RESEARCH 36 MEDIA & COMMUNICATION 40 TECHNICAL OVERVIEW 42 THE BULLION ENGINE 43 SYSTEM LEDGER & MINTING 45 WALLET TECHNOLOGY 52 RENENUE ENGINES 54 PAYMENTS & MONETIZATION 56 FINANCIAL MODEL 60 BENEFITS FOR INVESTORS 64 VALUATION 65

LODE PROJECT BUSINESS PLAN Version 3.7 / December 2020 We invite you to visit www.LODE.one and watch the “IMAGINE” and the EXPERIENCE AGX SILVER-MONEY” videos.

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A global system built with real money, created by the people, for the people.

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V3.7

LODE IS ABOUT THE PEOPLE This business plan serves as the framework for a unique blockchain project comprising an asset-backed monetary system where silver and gold are once again utilized to settle trade, leverage commerce, and build wealth.

The LODE Project’s goal is to restore Silver and Gold to historic prominence as sound money. The LODE System enables the creation of two assetbacked digital utilities that serve users globally as borderless, low cost, universal mediums of exchange, an alternative store of value and divisible, fungible, units of account, the three functions and core attributes of sound money. We invite you to visit www.lode.one and watch the “IMAGINE” and the EXPERIENCE AGX SILVERMONEY” videos. LODE is a transparent, precious metal-backed monetary system. The LODE financial infrastructure will enable people around the globe to save, spend, and send digital money as they see fit. The LODE Project has worked with regulators, lawyers, industry expert partners, banks, and various other stakeholders around the globe to determine the best practices for blockchain technologies and accepted regulatory frameworks.

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The LODE Project’s goal was never to emulate other systems, but rather to leverage the innovation of blockchain and the value of precious metals to create an open and trustworthy financial system for everyone. By undertaking the difficult work of developing a financial system that is transparent, interoperable, and upgradeable, the mandate is to allow for others around the globe to benefit from these efforts providing easy to use, compliant financial applications that can serve the financial needs of every person. The critical vision for the LODE Project is that these assets will be used wherever fiat money is used. Whether you are a financial professional, precious metals enthusiast, crypto trader, merchant, miner, entrepreneur, or an everyday individual looking for a better financial system, you are invited to consider the information presented in this document and learn about this unique blockchain ecosystem that brings the sound properties of investment-grade bullion to an exciting new form of asset-backed digital money.


LODE Project Business Plan

Whether you are a financial professional, precious metals enthusiast, crypto trader, merchant, miner, entrepreneur, or an everyday individual looking for a better financial system.

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OVERVIEW OVERVIEW OVERVIEW OVERVIEW OVERVIEW OVERVIEW OVERVIEW OVERVIEW OVERVIEW OVERVIEW OVERVIEW OVERVIEW OVERVIEW OVERVIEW


LODE Project Business Plan

The LODE Project puts silver and gold assets to work as money by harnessing the power of blockchain. The LODE System provides freedom, speed, innovation, and access to much sought after financial services which most of the modern world take for granted. The LODE Project will ensure that a supply of investment-grade bullion is made transparent and verifiable to all LODE Token Holders, at all times. This will be done by utilizing blockchain, as well as, key system infrastructures that include, a member’s portal, dashboard, digital wallets and much more.

The accountability architecture for the LODE System Ledger is built utilizing a Hyperledger Fabric and is designed to provide the maximum level of transparency, accountability, security, and speed. Hyperledger Fabric ensures the LODE Project remains legally compliant and can more readily react to evolving regulatory and compliance requirements.

The LODE Project will ensure that a supply of investment-grade bullion is made transparent and verifiable to all LODE Token Holders, at all times.

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DIGITAL ASSETS 99.99% 99.99%

AGX and AUX are backed by vaulted, audited, and insured 99.99% investment-grade silver and gold.

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LODE VIRTUAL EQUITY

DIGITAL SILVER BACKED

DIGITAL GOLD BACKED

TOKEN

MEDIUM OF EXCHANGE

MEDIUM OF EXCHANGE


Business Plan

DIGITAL ASSETS The LODE Project has constructed a novel token economic system comprised of the LODE Token (system asset) and the AGX (one-silver gram) and AUX (one-gold milligram) Coin(s). Together, the LODE Token, AGX, and AUX Coins form a global, digital, asset-backed money system. LODE Community Members will be able to send, spend, and build wealth using digital bullionbacked money, enabling a more accessible global financial system. LODE TOKEN The LODE Token is a security token and it serves as a form of virtual equity, providing a digital bond that represents the receipt for the metal added to the LODE Vaults. LODE Token Holders are considered holders of Virtual Equity in the LODE1 Anstalt (“LODE1�). LODE Token Holders will receive full rewards and 100% of all declared profits of the LODE Platform. VIRTUAL EQUITY Virtual Equity provides LODE Token Holders with the financial benefits associated with regular equity structures. The only difference is that the tokens currently hold no voting rights. By excluding voting rights, LODE Tokens become more easily transferable and exchangeable around the globe and still rewards the stakeholder with all the financial rights and returns that traditional equity entails.

LODE Community Members will be able to send, spend, and build wealth using digital bullion-backed money, enabling a more accessible global financial system.

100% of all profit distributions will be paid to LODE Token Holders, no third parties or other investors will receive any distributions. If LODE1 is sold, 100% of the net proceeds after payment of debts and taxes will be paid to LODE Token Holders. AGX COIN AGX Coin is a stable asset designed for commerce and backed by physically vaulted silver. Designed to be an easy part of everyday commerce, each AGX Coin is backed by one gram of vaulted, audited, and insured 99.99% investment-grade silver. AUX COIN AUX Coin is a stable asset designed for commerce and backed by physically vaulted gold. Also designed to be an easy part of everyday commerce, each AUX Coin is backed by a one-milligram of vaulted, audited, and insured 99.99% pure gold. COIN REDEMPTION, MINTING, DISTRIBUTION The two coins will initially be issued on Hyperledger but will be available to move to additional chains, beginning with Syscoin. The design of the coins has been structured to ensure that it is not considered a security under an EU law (MIFID 2), where the LODE Project has legal jurisdiction. LODE will not accept, process, or facilitate the redemption of AGX for silver and AUX for gold prior to an individual completing their KYC. LODE will follow regulatory compliance. Any LODE facilitated transfers of assets between chains, persons, or exchanges will require both parties to provide proof they have gone through the appropriate KYC and agreed to the terms of the investment contract. Both AGX and AUX may be transferred off of the LODE centrally controlled blockchain to a public decentralized network, and vice versa. No Money Service Brokers, Custodians, or Broker/Dealers responsibilities are considered at this time for these transfers.

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Similar to LODE Tokens, LODE records AGX/AUX Coin balances in a Hyperledger Fabric-based blockchain. LODE or affiliated vaulting partners are capable of minting AGX/AUX Coins for circulation. Each minting event of AGX/AUX Coins will be backed by a signed attestation that the equivalent value of silver and/or gold is held in reserve. The system will verify the cryptographic signature and offline audits are required to confirm the correct amount of physical metal that is held. When AGX/AUX Coins are issued, they represent a bearer claim to the value of the appropriate metal backing the coins. Transfers of coins are permitted between members holding a balance of native AGX or AUX Coins on the Hyperledger Fabric chain, or on public ledgers. LODE may block transfers to comply with jurisdictional requirements and will not transfer tokens on the owners’ behalf. A blockchain-based audit trail will be maintained to offer proof to auditors and regulators that LODE has not moved tokens on someone else’s behalf.

LODE Community Members will be able to send, spend, and build wealth using digital bullion-backed money, enabling a more accessible global financial system.

REWARDS & MICRO PAYOUTS REWARDS LODE Token Holders are entitled, by way of contractual rights, to 100% of any profit distributions, and all proceeds from mergers or acquisitions. Once there is a steady profit flow, the profits will be distributed on a 52day cycle. The beginning of this cycle is yet to be determined. Once LODE believes that the profits are equal to or larger than Interim Payments, there will be a permanent switch from Interim Payments to payments based on profits. INTERIM PAYMENTS While the LODE Project is in its growth phase, small payments will still be made each cycle to LODE Token Holders, so as to fulfill the promise of passive income that was made to early investors. The funds for these payments will come from the invested capital until such a time that the LODE Project is fully profitable. This does shorten the capital runway and increase the burn rate for the LODE Project, but the board of directors believes that it’s essential to maintain the goodwill of the community that has raised the initial funds. MICRO-PAYOUTS EVERY 52 DAYS: Every LODE Token which remains on the LODE System ledger will be entitled to receive micro-payouts every 52 days. All payouts are based on the net spread (ie cost of silver and gold vs. the selling price). The payouts will be calculated and paid out at a rate of 5.25% of the net spread. The payouts will be paid into the LODE Token Holders system wallet on Hyperledger and paid with AGX Coins. In the future, AGX Coins may be converted into AUX and/or LODE Tokens. KYC and exemption qualifications will be required.

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LODE Project Business Plan

REWARDS AND MICRO PAYOUTS MAKE YOU HAPPY

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LODE ECOSYSTEM PILLARS

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The LODE Project is building an ecosystem that establishes the value and usage of AGX and AUX Coins globally. This ecosystem consists of many corporate, financial and technical services that require various integrations, development and support. As such, the LODE Project is founded on seven (7) key pillars that fall into two (2) systematic categories. These seven pillars comprise the operations technical infrastructure, intellectual property, and monetization for LODE. These pillars are as follows:

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OPERATIONAL 1. Corporate Structure 2. SPA & Governance & Community 3. Media & Communications TECHNOLOGICAL 4. Bullion Engine 5. System Ledger & Minting 6. Wallets & Payment Platforms 7. Monetization

582,441+ oz

6,640+

1,318+

70+

TOTAL SILVER VAULTED

MEMBERS

CONTRIBUTORS

SPA MEMBERS

125

14,756,580

551,556

148,138

COUNTRIES SERVED

LODE TOKENS ISSUED

AGX TOKENS ISSUED

AUX TOKENS ISSUED


LODE Project Business Plan

TOKEN OPERATIONS

LODE

EQUITY

COMMUNITY

BOD / COMMUNITY / SPAC

INVESTOR / OPERATIONS

LODE

INTERFIX

(Switzerland) AG

CORP (Cayman Islands)

LODE

LODE PAYMENTS

AG & Co. KG (Austria)

LODE1 ANSTALT LIECHTENSTEIN

LODE U.K. LTD

International LLC (Delaware)

LODE

(Ireland) LTD

CORPORATE OVERVIEW In collaboration with a global legal team, LODE has developed a corporate strategy and structure that supports regulatory compliance for the project in North America, South America, Europe, Asia, and Africa. Contributors who deliver investmentgrade bullion into the LODE System are secure in the knowledge that their precious metal is vaulted in one of eight separate, Class 3 rated vaults located in Toronto, Delaware, Cayman Islands, Frankfurt, Zurich, Liechtenstein, London, and Singapore.

The successful execution of the LODE Project depends on the expertise and guidance of a wide variety of professionals which comprise the LODE Service Provider’s Alliance (SPA). Governance, administration, communication, and community management are all key service areas provided by members of the SPA. A Service Provider Advisory Committee, Community Advisory Committee, Steering Committee, and Vault Master ensure that the LODE Project receives clear, unbiased guidance as part of the governance process. Experienced SPA members carry out extensive and far-reaching media and communication activities. Overall administration and project oversight is delivered by the LODE Steering Committee which is made up of experienced Ambassadors from the LODE SPA.

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CORPORATE STRUCTURE LODE1 is governed by the LODE Board of Directors with direct input and guidance from the Steering Committee. As well, LODE1 governs the participation of the LODE Community Advisory Committee (LCAC), the Service Provider Advisory Committee (SPAC), and the Service Providers Alliance (SPA). LODE1 ANSTALT

LODE (Switzerland) AG

Owned by: (FL-0002.634.556-9) Legally established and registered in Liechtenstein, LODE1 Anstalt (LODE1) is the parent company and administrative body of the LODE Project. An Anstalt entity is also commonly known as an Association and/or Establishment, those terms are used interchangeably throughout various LODE documentation. LODE1 is a legally and economically independent entity. Unlike a typical operating corporation, LODE1 has no owners or shareholders and it does not issue any equity to stakeholders. LODE1 is governed by the LODE Board of Directors with direct input and guidance from the Steering Committee. Also, LODE1 governs the participation of the LODE Community Advisory Committee, the LODE Service Provider’s Advisory Committee (SPAC), and the Service Providers Alliance (SPA).

100% LODE1 ANSTALT Owned by: (CHE-386.915.113) LODE (Switzerland) AG has been mandated by LODE1 Anstalt to act as the capital management entity over all fiat transactions which are essential to bridging the current financial system in line with the new tokenized currency economy presently being constructed.

Activities/Responsibilities: • Worldwide Holdings Parent • Head of the Community • Manages Assets • Oversees the activities of LODE Switzerland AG • Oversees Interfix Corporation

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LODE (Switzerland) AG will work with investors with capital to migrate from fiat currency over to digital silver and gold money. The fiat will be utilized to purchase pure physical investmentgrade silver and gold which is the basis for the monetary mass. This monetary mass is then tokenized to become digital silver and gold. Operations are funded by utilizing up to 20% of the vaulted precious metal, and 80% of the monetary mass remains vaulted and secured for the creation of tokenized silver (AGX) and gold (AUX) Coins. LODE (Switzerland) AG is the issuing body for LODE Tokens, which are the virtual equity tokens within the LODE System.

Responsibilities: • Operational Parent to LODE Project • LODE Token Issuer - Financial Token - Fiat to digital currency management - Capital Development - Monetization • Coin Issuer • Oversee activities of LODE (Austria), LODE U.K. Ltd, Administration & Operational Activities: • Reporting • Banking • Precious Metals Asset Oversight/ Vaulting • Auditing • Corporate Financial Management, • Investor Relations • Token/Coin Issuing Oversight • Securities Regulation/ E-money Licensing • Exchanges/Gateways • Processors/Issuers • KYC

LODE1 Anstalt is the parent company and administrative body of the LODE Project.


LODE Project Business Plan

LODE (Austria) AG & Co. KG

LODE U.K. LTD (UK)

100% LODE (Switzerland) AG Owned by: (FN541689) As a result of legal and jurisdictional requirements, LODE (Austria) AG & Co.KG has been mandated to act as the issuing body and for all digital assets. This arm of the organization will enable the creation of AGX, and AUX Coin for distribution globally.

100% LODE (Switzerland) AG Owned by: (12486152) LODE U.K. Ltd will serve as the world headquarters for the LODE Project and will have administrative oversight of LODE Payments International LLC, FCA regulations, and all legal requirements. LODE U.K. Ltd will be the operational headquarters for regulated securities and electronic money related activities, it is a wholly-owned subsidiary of LODE (Switzerland) AG. The LODE U.K. Ltd entity will be the lead on financial, banking and monetization (distribution) for the LODE Project. It will also provide administration for the global operations and is the seat of activities for the Steering Committee, SPAC, SPA Members and LCAC.

Administration & Operational Activities: • Issuing body for AGX/AUX • Vaulting • Precious Metals Asset Oversight • Vault Master Oversight • BCoin - Transaction Monitoring - Exchanges - AML5/Compliance

INTERFIX CORPORATION (Cayman Islands) 100% LODE (Switzerland) AG Interfix is LODE1’s distribution partner. Operating transparently and in a disciplined manner, Interfix acts as the bullion management and secures vaulting for the project. Cayman is well known for its strong laws which protect private physical assets. The vaulted silver and gold bullion assets which form the monetary mass/reserves are utilized by LODE (Austria) for the enabling of AGX/ AUX Coins. Interfix is currently the general contractor for the founding group and in the future will be contracted by LODE1 Anstalt to provide Vault Master services for the community. Administration & Operational Activities: • Bullion Management • Vault Master (Vault Management Services) • Financial & Auditing Reporting

Administration & Operational Activities: • Operational Headquarters for LODE Project • Payments and Monetization Distribution • Technical • Marketing • Legal • Payment functions of wallets & payments systems • FCA Regulations and legal requirements

LODE PAYMENTS INTERNATIONAL LLC 100% LODE (Switzerland) AG Owned by: (3372264) LODE Payments International LLC (LPI) is contracted as a Service Provider through LODE (Switzerland) AG and has been mandated to build a world class, challenger payments platform. Administrative oversight for this contract will be conducted by LODE U.K. Ltd. LPI’s goal is to build a fully integrated technical platform for connecting merchants, card issuers, payment gateways, processors, telcos, and banks to the LODE Platform. The focus is on financial inclusion to provide greater options for the global

underbanked. As well, LPI will finance its activities through traditional equity/ debt offerings through either Reg. A/ Reg. D filings in the US. LPI is seeking all required licences and regulatory requirements to be fully compliant in all its activities. Administration & Operational Activities: • Capital Raise (Debt Instrument) • Payments Platform • Asset Monetization & Distribution • Merchant Integration Services • US Regulatory Compliance • Broker-Dealer Management (REG D, REG A+) • Banking Management - PrimeTrust/ Fund America, Signature Bank • Gateway (Master Switch), Processors, Issuers, MSB License

LODE (Ireland) LTD 100% LODE U.K. Ltd. LODE Ireland will be a fully owned subsidiary of LODE U.K. Ltd and for tax and labour law purposes will function as the human resources and hiring hub for the LODE Project. In the future, all SPA contracts will be managed by LODE Ireland, providing consistency and ease of mandate management for the project. Administration & Operational Activities: • Human Resources Hub for all Corporate Entities • Hiring • KPI & Service Delivery Management • Contracting for SPA • Payroll • Benefits • Distribution of SPA Bonus Allocations of AGX

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WHO ARE THE STEERING COMMITTEE? IAN RICHARD TOEWS

SANDRA WRIGHT

CHIEF VISIONARY,

VAULTING, FINANCIAL

MISSION, MESSAGING,

MANAGEMENT,

PRODUCT, PAYMENT &

ADMINISTRATION, LEGAL

BANK INTEGRATION

Ian’s experience with private and non-private business

Sandra has operated and owned Intellectual Property firms for over 30

start-ups began in 1996. He worked as an advisor to assist

years. She is a specialist in the field of Brand Creation and Brand Reg-

venture businesses to set up legal and corporate structure,

istration. Her experience crosses a large spectrum of business sectors.

product/service offerings, and administrative processes. His

She has represented and managed intellectual property portfolios

role always has been to get the projects off the ground and

worldwide for companies in the food & beverage, consumer products,

transition them to senior management to operate.

retail, manufacturing, medical and pharmaceutical, finance, technology, resource, agriculture, communications, and education sectors.

Ian’s core competency is to assemble the team, hone and focus the vision for the product or service and to support the

Over the past decade, Sandra has expanded her service offering

Investor Relations team to raise seed capital to achieve the

to include Business Advisory Consulting Services to start-ups and

objectives of the project. He collaborates with administration,

existing businesses by providing a focused and strategic approach to

operations, and management teams to accomplish all

corporate administration and operations, corporate communications,

business objectives.

and corporate governance.

KAREN OLSSON

MARTIN LAMB

COMMUNITY, SPA,

INVESTOR RELATIONS,

COMMUNICATION,

FUNDING, LEGAL GUIDANCE,

MARKETING, ETHOS,

MONETIZATION

HUMAN RESOURCES

Karen is a serial, technology entrepreneur and is passionate about

Over the last 30 years, Martin has worked as an investment

the intersection of people and innovation. Over the course of her

banker in Canada, USA, Latin America, and Europe. In 2013, he

career, she has run a non-profit aimed at engaging more women in

was introduced to blockchain technologies and cryptocurrencies

technology, done award-winning work in digital media production,

and believed that these technologies provide a foundational

established a thriving technology recruitment practice, and grown

change to the concept of a financial model.

multiple companies from the ground up. As an executive leader, she has extensive experience in both early and growth-stage

Martin has assisted in the building of the infrastructure of a

startups requiring a strategic focus on recruitment, operations

variety of companies in both the fiat and crypto worlds and

management, revenue, and investment.

marries traditional financial business needs with the blockchain solutions.

Karen enjoys: Building teams to bring products to life. Helping to develop skills in individuals, so they can make a difference. Raising funds to provide business expansion and growth opportunities. Providing leadership and strategic guidance to all of the above.

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His goal is to unlock the full potential of the cryptocurrency markets for traditional and non-traditional businesses alike, regardless of jurisdiction.


LODE Project Business Plan

Overall responsibilities of the LODE Steering Committee: IDENTIFY MARKET OPPORTUNITIES Before a LODE Product can enter the market, the SC needs to identify opportunities or areas where consumers/members may want or need a product that fits LODE’s mandate such as: • • • •

Card Programs Liquidity Options & Exchanges Equity Formats Wallets

MANAGE PRODUCT DEVELOPMENT The SC plays a key role in product development and implementation; determining specifications, and bringing each feature of LODE into production. This aspect of the SC role is hands-on and critical, as successful product development can determine whether or not LODE will ultimately be successful.

DIRECT MARKETING AND PROMOTION The SC is also responsible for conducting marketing and promotion for all LODE products. Well before a product arrives on the market, the SC needs to work with the Marketing, Communication, and Community teams to build anticipation to ensure that there is demand once a LODE Product moves from production to release. This may include telegram and other social media posts, crafting press releases, and attending industry events (once they resume) to build word-of-mouth.

FINANCE The SC is in charge of creating budgets, and setting milestones and timelines, developing business and financial plans to determine breakeven points and ensure long-term solvency as the organization grows. The SC manages the vaulted silver, the minting of tokens, and the use of funds to develop the LODE Project mandate. This also involves seeking out additional funding, new funding structures and investors as the LODE Project expands.

LEGAL OPERATIONS The SC is responsible for developing and maintaining a viable and sustainable legal and jurisdictional structure for the LODE Project, as well as, creating the supporting materials such as business plans and organizational structure documents, budgets, hiring/contractor documents, and business registration materials. The SC works together with legal experts to structure LODE and create legal documents that outline the responsibilities of each involved entity and ensure regulatory compliance.

BUILD AND LEAD TEAMS As LODE grows, the SC will need to build and lead effective teams including Service Providers, the SPA, the Non-Executive Committee, and the Community Advisory Board. This aspect of the SC role involves high-level decision-making, as well as, the ability to identify areas where it benefits the organization to bring in new personnel. The ability to inspire and lead teams helps LODE scale up as market share increases and helps hire the right businesses and individuals who are dedicated to LODE’s success.

The SC needs to identify opportunities or areas where consumers/members may want or need a product that fits LODES’ mandate.

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LODE OPERATIONS ia al Med Soci

PR

d an Br

Co nte nt

Event s

Report ing

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&

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Vaulting Bullion Dealers

llian

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LIECHTENSTEIN

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Pr ov i d e r s A

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LODE1 ANSTALT

Accounting

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nd Fianace Admin a

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Back End / Data

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Te ch no lo gy

t uc od Pr

/

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Tokanization Miniting Transactability

a XS

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an

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Lu

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ound Sales

Exchability

i at ti v Ac

on

Mideast North America

EU

Partners/ Enabling

UK Merchants and MaaS

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Trade/ Commerce


PA

LODE Project Business Plan

SERVICE PROVIDERS ALLIANCE (SPA)

The LODE Project is powered by a professional Service Providers Alliance (SPA) composed of world-class talent from around the globe. Currently, there are approximately 71 individuals, across 31 entities, in nine (9) different jurisdictions providing services to the LODE Project with services in seven (7) main areas. Members of the Service Provider Alliance may be single contractors while others are operating corporations. In some cases, Service Providers may offer services across a variety of project areas. It is through the work of these individuals and groups, in collaboration with Interfix Corporation that the LODE Project is fully enabled.

In order to achieve the mandate and objectives, the LODE Project relies upon community members (investors) to build the monetary mass through the purchase and vaulting of silver and gold bullion into the LODE System. At this time, the development of the monetary mass is the primary inflow to the system. 80% of this inflow is vaulted and the remaining 20% is utilized for LODE operations, including technology development, marketing and communications, and legal and administration. As the LODE Project expands, further inflows from system fees and utilization will drastically reduce the need to draw on the bullion reserves for operating costs.

SERVICE AREAS & CURRENT SPA MEMBERS *see Appendix “A� for SPA member biographies.

SERVICE AREA

SERVICE PROVIDER

Product Development

UX/UI, Business Analysis, Data & Financial Modelling, Exchangeability, Transactability, Compliance

Technical Development

System Design & Development, Technical Operation, Front end - web development, Back end - system development, Mobile wallet development, Blockchain, API Integration, Asset Tokenization (Minting), Security

Sales

Revenue & Growth, Merchant Engagement, LODE Sales, AGX & AUX Sales

Marketing

Brand Creation/Management, Content Creation, Campaign Development, Communications, Public Relations, Social Media, Webinars, LODEMedia, Events

Administration

Financial Management, Banking, Legal, Governance, KYC/AML, Policies, Reporting

Bullion Management

Vaulting, Treasury, Remittance, Bullion Sales & Purchasing

Community

Development, Engagement, Management

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WHO IS THE SPA? ADAM ATLAS ATTORNEY AT LAW adamatlas.com Licensed to practice law in NY and QC, Adam Atlas Attorney at Law advises companies on a wide variety financerelated business requirements such as payment and crypto business seeking support for credit cards, debit cards, gift cards, ACH, EFT, ATM, prepaid, PIN, e-wallet, exchanges, wallets and other payment and virtual currency models. Atlas also advises on e-health law issues and biometrics models. ___ AGILE DATA SERVICES agiledatasecurity.com Agile Data Services is owned and operated by Chris Hanlon, a security consultant with experience in Cloud Security, Risk Analysis, Intrusion Prevention, Intrusion Detection, and Security Architecture. Chris’s security work builds on his extensive experience in System Administration and Software Development. ___

SERVICE PROVIDERS ALLIANCE MEMBERS

AGLIFE ENTERPRISES INC. Aglife provides business, financial and legal administration services to businesses that wish to focus on their core strengths. From start-up to fully operational, Aglife works with its clients to provide administrative infrastructure and process support. For LODE, Aglife acts as a contract administrator and payment coordinator. It collaborates with and administrates around the LODE legal teams, financial and banking service providers. Additionally, Aglife provides vault management services for the project. Working in conjunction with Interfix Corporation, Aglife manages and maintains the contributions made to the LODE Vaults. ___

ATOMIC 47 LABS INC. atomic47.co A47 Labs is a privately held, fullservice technology development consulting firm focused on bringing emerging technology products to market. In collaboration with Interfix Corporation and the SPA, A47 Labs provides LODE with the product analysis, strategy support, marketing and development as it relates to LODE, AGX and AUX Products. A47 Labs’ primary goal is to ensure there is a successful product-market fit for all LODE Products. ___

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BLOCKCHAIN FOUNDRY blockchainfoundry.co BCF is a public blockchain development corporation, currently in charge of developing the core protocol for the Syscoin platform and was originally founded by the co-founders of Syscoin. Implementing the experience they’ve acquired in the industry, BCF is spearheading core development, blockchain-based token creation, decentralized marketplaces, decentralized identity, DAPPs, and more. ___

CM-EQUITY cm-equity.de CM-Equity is a 100%, fully compliant, licensed financial institution, and crypto asset management firm. CMEquity’s team of experts manages active trading strategies which are risk and position-size adjusted for each client. As well, they provide financial services licensing in the EU through the German Federal Financial Supervisory Authority (BaFin), providing their clients with a compliant, legally-secure, and stable platform for transaction processing. ___ COSMIA CAPITAL linkedin.com/in/brandonwilliams-7876059 Headed by Brandon Williams, Cosmia Capital is a digital asset and cryptocurrency advisory and trading firm based on the eastern seaboard of North America. ___


LODE Project Business Plan

CROWDCHECK LAW crowdcheck.com CrowdCheck Law is an affiliated law firm of CrowdCheck, Inc. CrowdCheck provides due diligence, disclosure, and compliance services for online capital formation. CrowdCheck Law’s primary focus is on online capital formation activities, including offerings made pursuant to Regulation A, Regulation CF, and Rule 506 of Regulation D under US federal securities laws. They are experienced corporate and securities attorneys with a deep background in all types of securities offerings. Their team’s prior positions include service at the US Securities and Exchange Commission and some of the world’s most prestigious law firms. ___

CRYPTO LAWYERS GMBH crypto-lawyers.ch A world-class team of lawyers, tax experts, and economists with a deep level of experience in asset and operational structuring for blockchain organizations and cryptocurrency products. Crypto Lawyers GmbH develops solutions that are tailored to the requirements of private and corporate clients in a variety of different jurisdictions in Europe (particularly Switzerland, Liechtenstein, Germany, U.K.) as well as, the United States, Hong Kong, and many others. They provide the LODE Association with sound legal advice in the areas of legal and operational token structure, jurisdictional operation and investor development. ___

THE DALMORE GROUP dalmorefg.com The Dalmore Group is an independent investment bank that provides investment banking services to small and middle-market companies, aiming to provide their clients with the highest quality execution of private capital placements and merger and acquisition engagements. They offer a range of financial advisory services to management, directors, and business owners in a variety of situations. These services typically address critical strategic issues impacting shareholder value. ___

DEGUSSA GOLDHANDEL AG degussa-goldhandel.ch Degussa’s origins date back to the mid 19th century. The business did very well but transitioned into a chemical company in the 1990’s when gold plummeted and the business decided to sell off the precious metals division. The business was largely dormant until 2010 – when it was purchased by the von Finck family. Today, Degussa is Europe’s leading independent precious metals retailer. Degussa has 12 stores in Germany and one store each in Geneva, Madrid and London. ___

FISHER BROYLES fisherbroyles.com Founded in 2002, FisherBroyles is the world’s first and largest distributed, full-service law firm partnership. Their hundreds of partners in 23 global offices are veterans of the largest and most sophisticated law firms, corporate departments, and government agencies. They seek to cultivate the brightest legal minds and to provide their clients with exceptional service, tailored advice, and practical, efficient solutions for their most complex transactions, disputes, and legal issues. ___

FREESORA MEDIA fressoramedia.com Founded in 2017, Fressora Media is a full service digital marketing firm specializing in content creation and management, social media marketing, corporate promotion and business development. With the understanding that every company and project is unique, Fressora Media works closely with its clients to create and tell compelling stories that increase brand awareness and drive positive business outcomes. ___

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V3.7

SPA MEMBERS Continued

HITMAN CREATIVE MEDIA INC. hitmanmedia.com Hitman Creative is a full-service digital and print agency that does really big work for a select group of international companies and creative entrepreneurial thinkers. Services include Brand Development / Print Design / Web Development / App Design / UX/UI Design / Marketing Strategies + Environmental Graphics. ___

IDS OF CANADA idsofcanada.com IDS of Canada safeguards precious metal assets in a secure facility and offers a physical marketplace for buyers and sellers. In-house transfers increase speed and accuracy while eliminating exorbitant shipping and insurance costs. IDS is staffed by professionals who have extensive precious metals, depository, security and banking experience. IDS of Canada is an Associate of the London Bullion Market Association (LBMA). The LBMA’s membership includes banks, dealers, fabricators, refiners, shippers and brokers. Also, the Investment Industry Regulatory Organization of Canada (IIROC) approved IDS of Canada as an entity suitable to hold LBMA gold and silver delivery bars. ___

INTERNATIONAL GOLD VAULT LTD. internationalgoldvault.com IGV is a world leader in the wholesale precious metals business. IGV provides service to the LODE Community to buy and/or deliver silver into the Loomis vaults. IGV specializes in the acquisition of precious metals for individuals, companies, trusts and wealth management professionals. They offer global acquisition services for Cayman Islands, Toronto, New York, Miami, London, Frankfurt, Zurich, Lichtenstein, Hong Kong, Singapore, Mexico City and Australia. ___

PRECIOUS METALS INTERNATIONAL, LTD. pmi.ky Precious Metals International, Ltd. (PMI) is a leading wholesale provider of physical precious metals bullion products including silver, gold, platinum and palladium. All products are of Hallmark refineries and exchange approved to trade in all worldwide markets. PMI offers the ability to trade and store precious metals or use them as a collateral guarantee for financing while the bullion remains liquid in all markets. PMI currently has access to physical precious metals markets and depositories in Canada, United States, Switzerland, Australia, Singapore, China and the Caribbean. ___

INTERTRADE CAPITAL GROUP intertradecapital.com Intertrade Capital Group is a global alliance organization set to enable barter, trade, countertrade, asset management, alternative capital and financial transactions for companies and barter exchanges. The company enables execution of traditional and online trade transactions that greatly expand liquidity and bottom line profitability. ___

RATIO SOFTWARE linkedin.com/in/noahmarconi Ratio Software is a software development firm, owned and operated by Noah Marconi. Ratio specializes in emergent technology; services range from hands on training and course design, to software design, architecture, and implementation. Ratio’s involvement with LODE includes high level strategy as well as implementation of system level components. ___

LOOMIS INTERNATIONAL loomis-international.com Loomis is a LODE Service Provider used for vaulting operations. They offer global vaulting solutions in the Cayman Islands, Toronto, New York, Miami, London, Frankfurt, Zurich, Lichtenstein, Hong Kong, Singapore, Mexico City and Australia. ___

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LODE Project Business Plan

SHARPS PIXLEY sharpspixley.com Dating back to 1778, Sharps Pixley was originally founded through the merger of two London bullion businesses. After the company name expired in 1995, Deutsche Bank purchased the company name and trademarks. This provided a link to the original firm. Today, the company is owned by one of the wealthiest families in Germany and sits within the Degussa group of businesses, which is said to be one of the largest sellers of retail physical gold in Europe. Sharps Pixley leverages the capabilities of group by holding a very extensive, diverse stock of bullion. It also combines innovative logistical/inventory management techniques at its Rodermark logistics centre which allows for efficient, secure and cost-effective product delivery to UK investors. ___ SILVERROCK HOLDINGS linkedin.com/in/ianrichardtoews SilverRock is an experienced Project Developer. The SilverRock team combines carefully created project plans with strong management in an effort to maximize stakeholder interests. With expertise with early stage projects located in Canada, USA, Latin America and Europe, SilverRock was first introduced to Bitcoin in 2013, which is where an appreciation for the power of blockchain technology and cryptocurrency began. Blockchain and distributed ledger technology have the power to disrupt. Monumental change to the current financial system is certain to come and blockchain is playing a central and important role in restoring trust, reducing third party and counterparty risk, whilst lowering cost for users and improving access to financial tools for the billions of unbanked and inflation oppressed. SilverRock is assisting LODE to accomplish and deliver on the project objectives, converging blockchain with real world assets, constructing the digital money of the future. ___

STACKIGNITOR TECHNOLOGIES LTD. (Previously Adanacs Software) linkedin.com/in/david-glason848b41156 StackIgnitor Technologies Ltd. is a privately held, full-service cloud infrastructure and, software design and implementation company. For LODE, StackIgnitor provides technical leadership for the project, as well as, services to design and implement the critical infrastructure needed to support the project including: cloud service configuration, backup and security systems, developer tools, IT services for company-wide tools, deployment pipelines and process configuration. ___

SUM & SUBSTANCE sumsub.com Sum and Substance provides a complete toolkit for customer onboarding and KYC & AML compliance All-in-one platform to onboard and verify customers. Reliable Know Your Customer (KYC) and Antimoney laundering (AML) procedures, proper personal data handled, friendly UX and scalability are their key focus. They provide legally equipped customer-focused AML automation in line with FATF and FinCEN requirements. Their easy to use system, is a customizable environment that provides regulatory compliance, creates a solid risk management framework and ensures customer onboarding as friendly as possible. ___

TISSCO ENTERPRISES linkedin.com/in/hmorales5150 Established in 2012, Tissco Enterprises is owned and operated by Humberto Morales. Tissco Enterprises Ltd. is a group of companies that provides omnimedia, technology and e-commerce consulting services. Since its inception, Tissco has successfully run operations in North, Central and South America. ___

WEST BAY FINANCIAL GROUP wbfinancial.tc The LODE Association has engaged WB Financial Group as a Financial Services and Auditor service provider. It ensures that operations and governance remain compliant. WB Financial Group was formed in 2009 to provide professional financial services to a diverse client base. The key services that WB provides are Financial Advisory, Corporate Management, Captive Insurance, and Corporate Finance. ___ THE WRITE DOCTOR, INC. linkedin.com/in/david-hsmith-73954618 Owned and operated by David Smith, a Senior Analyst for the Morgan Report, The Write Doctor, Inc. suggests and participates in the development of brand-strengthening information and adwork for the LODE project. David reviews any and all written work submitted on behalf of LODE to the Morgan Report, with the purposes of engaging precious metals enthusiasts as contributors to the project. In a variety of written posts and conference venues, David seeks to provide a wide audience with actionable information about the value proposition offered by the LODE Project, most specifically to the large precious metal community following the Morgan Report. ___

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V3.7

GOVERNANCE The governance of the LODE System is set up in three phases to ensure the project’s mandate is met with the intention that LODE Community Members ultimately govern the entire system. The key parties highlighted in this section include LODE and its Board of Directors, Steering Committee, LODE Service Providers Advisory Committee, and the LODE Community Advisory Committee. Below is a listing of each board’s and Committee’s area of responsibility:

LODE - BOARD OF DIRECTORA The requirements of the LODE Board of Directors is to: • Act honestly and in good faith; • Perform due diligence and safeguard the interests of the LODE Project including the obligation of secrecy and, if required, be obliged to refrain from involvement in handling matters affecting personal interest; • Determine the mission, vision, values for the organizations’ current operations and future development; • Determine and review the organizations’ goals, objectives, and policies; • Select, appoint and support Advisory Board, Non-Executive Committee, CEO and CFO; • Develop and delegate the implementation of business strategy/plan and organizations’ structure; • Review and evaluate present and future opportunities, threats, and risks; • Delegate authority to manage, monitor and evaluate the implementation of policies, goals, strategies and business plans; • Establish monitoring criteria to be used by the board; • Communicate, collaborate, delegate and monitor success of senior management and executives; • Approve annual budgets; • Monitor, track and challenge LODE’s performance and provide feedback for improvement and Provide financial performance reporting.

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STEERING COMMITTEE The Steering Committee’s role is to act as the de facto CEO for the LODE Project; When requested, provide input and approval on budget expenditures; Set compensation packages of the SPA and create, communicate, collaborate, delegate, and monitor activities of the SPA. SERVICE PROVIDERS ADVISORY COMMITTEE the SPAC provide non-binding, unbiased counsel, advice and opinions on initiatives proposed by BOD; Develop an understanding of LODE, its markets, and industry trends; When requested, give advice on governance consistent with the goal of sustainable growth of LODE; Support and explore new business initiatives and●Provide contacts for networking the LODE Platform for the BOD.


LODE Project Business Plan

The governance of the LODE System is set up in three phases to ensure the project’s mandate is met with the intention that LODE Community Members ultimately govern the entire system.

LODE COMMUNITY ADVISORY COMMITTEE The LCAC provide non-binding, unbiased counsel, advice and opinions on initiatives of the SPA and Provide feedback, and support, and explore new business initiatives. VAULT MASTER The vault master will track physically deposited silver and gold and initiate the allocation of LODE Tokens, as well as, AGX and AUX Coins. Once the LODE Vault Master has confirmed the vaulting of the bullion, the transaction will be immutably recorded. A third-party blockchain analysis service provider will be selected to validate vault declarations and transaction records.

In the future, silver and gold will be reported to the LODE System via an API and then written to the coin contracts for either minting or burning of tokens based on the transaction. At the moment, auditing of physical silver is being done manually by vaulting partners and supported by third parties to audit their vaults, such as Bureau Veritas.

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V3.7

WHO IS THE SPAC? LODE SERVICE PROVIDERS ALLIANCE COMMITTEE

CHRIS MARSH

Chris Marsh is the President of Blockchain Foundry. Previously, Chris spent 8 years at Richardson GMP and GMP Securities in Toronto, Canada, as an investment banker and corporate development executive. He also spent 4 years in London, England where he worked in corporate finance and asset management. Chris is a CFA charterholder and holds a Masters in Finance degree from London Business School and a Bachelor of Commerce from Queen’s University in Kingston, Canada.

DAN WASYLUK

Dan Wasyluk is the CEO of Blockchain Foundry and co-founder of the Syscoin project, a decentralized cryptocurrency. With over 15 years of enterprise software development experience, Dan first became involved with blockchain technology in 2013. In August 2014, he helped launch the Syscoin public blockchain. Dan holds a Bachelor of Science from the Rochester Institute of Technology.

DANA KUSICK

DAVE GLASON

Dave holds a Bachelor’s degree in Computer Science from the University of British Columbia, Okanagan and has 20+ years experience in system design, programming, implementation and support. He’s worked in a variety of technology sectors including: Internet Service Providers, Web Hosting, Website Development, Employee Scheduling, Library Management, Education, Online Marketing and Cryptocurrency. Currently, Dave is focused on building scalable, automated, cloud based infrastructure supporting micro-service based applications for world-class FinTech products.

HABIB AKUDI

Over the last twenty years, Habib has focussed his career on stock and currency trading, and Islamic banking in the United Kingdom, Middle East and India. He assists clients in structuring downstream blockchain products to be compliant for the Islamic banking world. Habib creates hybrid strategies by merging innovative banking that provide solutions to the significant and growing population of the unbanked. Currently, Habib is a private banking, fintech banking and payments consultant. From 2007 to the present, he has worked with UHNI/HNI.

JAG SIDHU

With over 12 years experience in the legal field, Dana now works closely with the LODE UK Investor Relations team and is also responsible for managing all of the creative departments projects, planning, workflows and deadlines for the team and all sub contractors. Dana also hosts LODE’s monthly cafe chat where she interviews different service providers that offer updates to all LODE members.

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Jag Sidhu is the CTO of Blockchain Foundry and a co-founder of the Syscoin project, a decentralized cryptocurrency, as well as its current lead developer. As an expert in blockchain technology, Jag also specializes in machine learning, artificial intelligence, client/server development and distributed systems with nearly 20 years of software development experience. Jag holds a Bachelor of Technology, Computer Science, from the British Columbia Institute of Technology.


LODE Project Business Plan

JARRET KUSICK

As LODE’s creative director, Jarret is responsable for all creative projects and visual guidance for the LODE brand. Prior to working with LODE, Jarret started Hitman Creative Media in 2000 and currently works with large scale national and international companies and creative entrepreneurial thinkers. Jarret lives and works by the moto “Think then design” and he applies this strategy to all his creative work.

MARC NICHOLSON

MICHAEL HARRIS

Michael studied mathematics and computer science in university and has a keen interest in how things work, especially economics, finances, and data-driven decision making. During university, he worked on bioinformatics, using machine learning for lung cancer research. He also worked with big data in the online child safety space. His most recent focus has been blockchain and emerging markets and has taken on more in the way of business and product analysis, concentrating on data-driven decision making and token economics. Michael holds a BSc in Computer Science, and a BA in Mathematics, with a minor in Physics from Sonoma State University in California.

BRUCE KAMM Marc Nicholson heads up sales for Blockchain Foundry and has worked in and around the LODE project since 2018. During this time, Marc has contributed to the LODE project in various capacities that include sales consulting and advisory and developing partnerships with industry participants to help further the LODE Ecosystem. His sales experience goes back nearly 20 years with experience in industries such as promotions, financial services, consumer packaged goods, and enterprise business systems consulting.

MATTHEW TAUB

Matthew Taub brings over a decade of precious metals and markets experience to the LODE Project. In 2017, Matthew Co-Founded Fressora Media LLC., a full-service digital marketing firm specializing in content creation and management, social media marketing, and business development for the precious metals industry. Matthew was also the Director of Business Development and Corporate & Institutional Sales at CPM Group in New York. During his tenure at CPM Group, Matthew worked across markets and industry participants from buy-side and sell-side analysts and institutions, to Governments, Banks, and individuals. Matthew holds an MBA in Finance and Accounting from Fordham University in New York City and a B.A. from Clark University in Massachusetts.

conomics.

Bruce Kamm is the Founder of Intertrade, VirtualBarter, TradeBanc, Mutiplii Club and MerchantRewards. As an expert in digital payments, and trade commerce, Bruce also specializes in barter, reciprocal trade, countertrade, asset management, and alternative currency financial transactions to enable traditional and online transactions that greatly expand liquidity and bottom line profitability. Bruce is reinventing non-cash payments, rewards, and digital trade commerce. Merging domain expertise in the reciprocal trade industry with extensive knowledge of commerce technology, payment systems, media and information services, Bruce’s role as a digital commerce payments strategist and ambassador for the LODE Project fosters a vast array of partnerships and use cases for Lodepay.

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V3.7

SPAC MEMBERS Continued

NICHOLAS PROUTEN

With over 9 years of experience in the tech sector, Nick’s skill-sets are sharpest in connecting vision and direction to a path for execution that exceeds goals and promotes project growth. He is a veteran public speaker and team leader able to pitch projects, ideas, and solutions concisely and effectively while motivating and driving on target, measured results. As a firm believer that diversity is strength, Nicholas has been fortunate to have worked in a wide array of industries ranging from Cybersecurity, Gaming and Real Estate, to Entertainment and Blockchain.

PATRICK GRUHN

Patrick founded his first IT Startup at the age of 18, that operated its own data center in Germany. He is a cofounder of a power supply company with more than 150,000 customers. Also, he is the CEO and owner of the catholic TV network - K-TV. As a consultant, Mr. Gruhn has supported leading European companies such as Deutsche Bahn, Postbank Gruppe, Arvato Bertelsmann, SAP, E.ON, Trelleborg and many others. Patrick is a Partner of K&G Lawyers, a Swiss law firm specialized in digital asset transactions.

PAUL TALBOT

Paul Talbot has over 40 years’ experience working in Business Development, Advertising and Sales. The first 12 years of his career were spent working in Advertising Agencies in both England and Canada where he gained a diverse knowledge of the Advertising, Branding and Marketing industry. For the past 28 years, Paul has worked in the print industry in Senior Management roles overseeing executive teams of 100+ employees. He has worked extensively to develop and implement plans to increase productivity, decrease costs and propel sales. Over the span of his career, Paul has worked with clients on small local projects to International product launches for large worldwide corporations.

STEVEN SOKOHL

Steven has over 25 years of professional accounting and management experience, having worked in a range of businesses from large multinational banks to privately held family office structures. He jointly manages WB Financial Group’s financial advisory business in the Cayman Islands and has a particular focus on clients in the funds industry, including investment managers and funds in the hedge, private equity and venture capital sectors. He is primarily focused on directorships, financial and management accounting and the regulatory aspects of these businesses. Steven formerly worked for Arthur Andersen and Ernst & Young in their U.S. audit and tax practices, particularly for financial services clients. Subsequently, he worked primarily within the financial services sector in major money centre jurisdictions such as New York, Paris, Hong Kong and the Cayman Islands. Steven has a BS (Hons) from the American University, and is a Certified Public Accountant and a member of the Cayman Islands Institute of Professional Accountants.

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LODE Project Business Plan

LODE COMMUNITY ADVISORY COMMITTEE HUMBERTO MORALES

Humberto has been an entrepreneur and business developer for over 20 years, his background in electronics and communication engineering has allowed him to design and develop forward thinking technology business models. After moving to Canada from Mexico in 2001, Humberto designed and implemented the first portals for internet video delivery, video editing apps for iPhone and Community based internet tv stations for local and regional markets. Later, he combined mobile video editing tools with online delivery platforms which were implemented in several universities and private corporations. Humberto has been a LODE Ambassador since late 2017, and currently supporting Media, Communications and Community Support for the project.

JOSE MARCOS

Residing in the South of France, Jose is a self-taught entrepreneur. He created his first company at the age of twenty and after ten years of operation, he changed business sectors and created his second commercial company, which prospered in parallel with real estate investments. Jose is passionate about precious metals and related investments with a particular focus on the emerging blockchain opportunities. He brings together a community of investors who appreciate his expertise and his acute knowledge in the field.

DON GRANT

SARAH BENALI

Sarah Benali is a professional copywriter and content creation specialist with a background in communications, PR and marketing consultancy services for precious metals, blockchain, cryptocurrency, and digital transformation-related projects. She holds a Bachelor of Commerce from Concordia University, an dual MBA in Digital Media from IE Business School. Sarah was a Senior Media Producer for Kitco News.

Don is currently retired from a significant career in banking and entrepreneurship. He is a long time silver stacker and advocate for sound money. Don holds the honour of being the first contributor to the LODE Project, and his insights and guidance helped shape the efforts during the early days of the project. He remains a staunch and impactful member of the LODE SPA team by supporting efforts on the front lines as Communications Ambassador for the LODE Community.

SEBASTIEN DIMICHELE

Sébastien DiMichele is Co-Founder and Director of Marketing & Public Relations at Blockchain Foundry and co-founder of the Syscoin cryptocurrency. Sébastien has 19 years of experience in the Telecommunications industry, from Service and Quality assurance to his last role as Project Manager, specializing in Service Delivery Carrier Relations. Sébastien was first involved in blockchain projects in 2013 and in August 2014, he helped launch the Syscoin public blockchain and has since been contributing efforts to the success of the project.

LODE is the birthplace of the honest money revolution. A global system built with real money, created by the people, for the people.

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V3.7

GOVERNANCE PHASES

PHASE ONE PHASE TWO PHASE THREE

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3

LODE Project Business Plan

THE GOVERNANCE OF THE LODE SYSTEM IS SET UP IN THREE PHASES TO ENSURE THE PROJECT’S MANDATE IS MET WITH THE INTENTION THAT LODE COMMUNITY MEMBERS ULTIMATELY GOVERN THE ENTIRE SYSTEM.

PHASE 1 CREATORS AS CURATORS (Past 2017-2019)

The network was managed by Interfix on behalf of LODE, and the LODE SPA was developing and building the system architecture to ensure enterpriselevel readiness for market release. This protocol maximized efficiency and reduced the time required for upgrades.

PHASE 2 SERVICE PROVIDERS AS ADVISORS (2019 - Current) LODE and the SPA are running the ecosystem. The LODE Project will begin relying on the expertise of Service Providers and Community Ambassadors to influence decisions for the community. While Interfix continues to guide the project, decisions are increasingly based on input from the LODE SPAC and Community Board.

PHASE 3

COMMUNITY-BASED GOVERNANCE (Future)

The third phase of governance will pass control entirely to the LODE Community. With LODE Tokens being the governance token, LODE Token Holders wishing to participate in the governance of LODE will be given voting and decision making rights. There will still be some controls and safeguards in place, but the central organization will have significantly less control or influence. By this point, it is expected that almost everything will be done by community vote. While Interfix might step up occasionally to prevent accidental disasters (like voting to set all fees to zero), for the most part, it will be hands-off and participate just like other LODE Token Holders.

LODE community members ultimately govern the entire system.

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V3.7

LODE PROJECT ETHOS The LODE Project has guiding principles or an operational ethos that provide a behavioral framework for the Service Providers that act as the stewards of the LODE Community. It is the responsibility of each Service Provider to uphold the LODE Ethos in their interactions with the LODE Project. Service Providers create a type of Meritocracy Governance - meaning an influential group of people selected for their abilities. As a Service Provider to the LODE Project, each provider commits to being humble, diligent, cooperative, and helpful to fellow SPA members across the organization. The goals of the LODE Project are large and it is part of the SPA’s service requirement to accept challenges as they arise, to pursue objectives, and to uphold the highest standards of service to the Project through this framework, the LODE Project will achieve its goals. The LODE Ethos has five key pillars on which services are provided to the project: Authenticity, Discipline, Autonomy, Security, and Fellowship. Service providers must act with the following mindset as they deliver services to the LODE Project: AUTHENTICITY • Using their true skills to their greatest capability; • Be radically open with communication; • Allow for constructive disagreement, utilize conflict to solve problems; • Create a system and features that the community wants; • Add real value & create efficiencies; • Work fast, but not hurried; • Don’t waste time/money and Fail quickly, learn, and iterate and move forward.

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Each provider commits to being humble, diligent, cooperative, and helpful to fellow SPA members across the organization.

DISCIPLINE Work on core products & services with an undiluted straight line to accomplish objectives; Commit and submit, be efficient with time and resources; Perfect is the enemy of the good; Find and solve problems - share results and ideas and Brainstorm solutions – be open to other’s ideas. AUTONOMY Envision and build for a system that employs self-sustaining practices; Being data-driven is a core practice; Embrace a starfish model for Service Providers that creates a platform for redundancy and Any individual in the system can fall away and another can enter the system to assist or replace.


LODE Project Business Plan

SECURITY Have security as the first priority in building technology and developing LODE business relationships; Security is practiced at every level of the ecosystem; KYC/AML best practices where required are a must; Authentication of technology, service providers, users, ambassadors, affiliates and members is required and Be mindful and aware of possible threats to the community and its systems.

FELLOWSHIP LODE is an ecosystem of equals; Leverage relationships & create functional partnerships; Expand the community & ecosystem; Work together and collaborate to achieve objectives; Do what it takes to help others in the ecosystem; Every Service Provider plays an important role; Our efforts are united by a common mandate and focus on our objectives; We build and practice trust across the ecosystem; Be mindful and supportive of other service providers, members, and users within the Community and Continue to learn and share knowledge so that we may strengthen our ecosystem.

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V3.7

COMMUNITY AND COMMUNICATION

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LODE Project Business Plan

The LODE Community has made tremendous strides in establishing itself on a global scale. It is with great pride that LODE has spread it’s community across 62 countries, which illustrates the unified desire for a return to a sound money standard. As the community has grown, so too has LODE’s curation and management of it’s community as outlined below. CURATION LODE’s commitment to providing weekly media content is just one avenue that it uses to engage with its community. Through community channels on Telegram, LODE Ambassadors help the community engage around the project and provides members with a place to have their voices heard and questions answered. To keep users apprised of the advancements, the LODE Team created a weekly series of webinars to engage with members and build enthusiasm for the LODE Project’s future. Any and all major updates are always circulated by email containing a link to an article appearing in the LODE Platform’s internal “news” section.

SUPPORT AND MANAGEMENT LODE has a dedicated team of Community Ambassadors that have built robust integrations and policies around engaging with community members who require assistance. Using the LODE System integrated chat support, members can engage with community ambassadors seven days a week, and discuss any issues in a timely manner. To accommodate it’s diverse base of users, language support is another key component which continues to be developed. Choosing to approach the community from a languages based perspective, LODE offers all its regular communications in English, French, and Spanish, with a plan in place to integrate with over 10 additional languages in the near future.

LODE Ambassadors help the community engage around the project and provides members with a place to have their voices heard and questions answered.

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V3.7

MARKET RESEARCH AGX (AUX) Consumer Market Research. In the early part of 2019, as part of its brand development strategy for the AGX Coin, the LODE Project commissioned the Lana Porter Group (lanaportergroup.com) to conduct qualitative research with target consumers in Vancouver, BC, Canada. The Lana Porter Group Inc. (LPG) was established in 2004 by Dr. Lana E. Porter. Dr. Porter and her team of researchers focus on consumer dynamics research offering an agile working style of a boutique firm alongside the global reach and capabilities of a multinational company. They have been focused on product market research for nearly two decades and provided LODE with key insights for future marketing of AGX and considerations for further product development efforts. While some of the material is now outdated, at the time, the primary objectives of the research included: • An exploration into consumers’ current relationship with money, as well as, financial institutions, products, and services. • A gauge of the level of consumer familiarity with asset-backed currencies and cryptocurrencies in general.

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• An assessment of the reactions to the overall AGX Currency proposition and identification of trial motivators and barriers. • An evaluation of written marketing materials to identify compelling hot buttons that prompt consumer interest, and consideration, as well as any sticking-points or negative triggers that should be avoided. • A side-by-side comparison of two creative directions, to identify the most compelling visual identity for the AGX brand.


LODE Project Business Plan

THE RESEARCH PROJECT FOCUSED ON THREE CORE GROUPS GROUP 1 – Younger Consumers • Men and women aged 25-39 (mix of ages). • Employed full-time. • Single income household of $25K+ / Duo-income household of $60K+. • Actively participate in a loyalty program where they earn and redeem points. • Open to learning about new types of currencies. • Open to learning more about a cryptocurrency that is backed by silver reserves.

LPG... provided LODE with key insights for future marketing of AGX and considerations for further product development efforts.

GROUP 2 – Older Consumers • Men and women aged 40-55 (mix of ages). • Employed full-time. • Single income household of $25K+ / Duo-income household of $60K+. • Actively participate in a loyalty program where they earn and redeem points. • Open to learning about new types of currencies. • Open to learning more about a cryptocurrency that is backed by silver reserves. GROUP 3 – Ethnic Consumers • Men and women aged 25-55 (mix of ages). • Mix of Filipino, Mexican/Latin American, Asian, Indian/South Asian participants – reside in Canada on a Work Visa or are a Permanent Resident or Citizen. • Employed part-time or full-time (if not a Canadian Citizen, must have a work visa). • Must send/receive money to/from family members back home 1+ times per month. • Open to learning more about alternative ways to send money across borders.

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V3.7

The following is an excerpt of the conclusions provided by the team at LPG. Overall Reaction to the AGX Currency Concept & Written Concept Guidelines • Overall, AGX currency has potential among these target consumers. After reading the written concept description, they are intrigued and compelled by the concept and many would like to find out more. • That said, their enthusiasm for this new currency is mitigated by a lack of understanding about cryptocurrencies and how they work. As such, consumers must have a basic understanding of cryptocurrencies and related concepts (e.g., blockchain) before they will be willing to adopt this new currency. In particular, consumers want more information on the practical application and usage of AGX currency, including how they would use it (channels), where they could use it, and how widely accepted it would be. • The most compelling feature of AGX currency is that it is an asset-backed currency. Consumers believe that assetbacked cryptocurrencies are less volatile and boast a more stable value than other cryptocurrencies (however, this benefit must be properly explained to them). • The most significant barrier to trial for AGX currency is safety and security concerns. Consumers’ lack of understanding of cryptocurrencies is further confounded by a lack of history and proven track record for AGX currency. They need to know that this alternative currency is a tried-and-tested, safe, and secure mode of exchange.

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Given these questions and concerns, AGX should consider the following “Written Concept Guidelines” in future marketing: • Use simple and easy-to-understand language about cryptocurrencies and related concepts (e.g., blockchain); otherwise, the many benefits of this alternative currency are lost on consumers. • Outline the safety and security measures that are in place (and inherent to cryptocurrencies) in order to assure consumers that their money would be safe. • Emphasize that AGX is backed by silver reserves and, as such, is more stable and less volatile relative to other cryptocurrencies (i.e., non-assetbacked cryptocurrencies). • Present evidence of solid financial performance to build consumer trust in AGX’s track record. • Outline where and how AGX can be used and what consumers can purchase using this currency (including available payment methods and purchase outlets as well as account management information). • Communicate the unique benefits of AGX currency beyond what is offered by other financial institutions, services, and products (“Why should I use AGX over the payment methods I use now?”). For example, no exchange rates or wire transfer fees.

The result of the research conducted by Dr. Porter and her team has helped to significantly shape the path for bringing AGX, and subsequently AUX, to market. The full research report can be found at AGX Consumer Research or through an email request sent to info@lode.one.


LODE Project Business Plan

The result of the research conducted by Dr. Porter and her team has helped to significantly shape the path for bringing AGX, and subsequently AUX, to market. 39


V3.7

MEDIA & COMMUNICATIONS CAMPAIGNS INFLUENCERS Since its inception, LODE has strongly had its roots in Influencer Marketing. Most notably the endorsement by precious metals expert David Morgan which has led to great strides in LODE Platform adoption. As LODE continues to grow, the project will continue to connect and receive endorsements from larger and diverse influencers effectively tapping into broader and broader markets. Using the networks from its existing ambassadors, LODE believes that it will have the potential to tap into audiences reaching into the hundreds’ of millions.

AFFILIATE PROGRAM Similar to influencer campaigns, LODE has undergone the effort of developing a comprehensive affiliate program to drive its existing community to become active promoters of the platform. This program allows members to be rewarded not just for bringing in new members that fund their accounts but, also for having users subscribe to silver/ gold card subscriptions on a recurring basis. To make the earning potential even greater, affiliates receive rewards 3 tiers deep, which is to say they are compensated for any new members that the initial “children” (people who join through the affiliate link) bring in, two times over. Emulating successful strategies executed by similar entities, LODE firmly believes that the success of this program will play a key role in giving LODE a viral component of its marketing.

40

PAID PROMOTIONS AND ADVERTISING When LODE is ready to activate on paid promotions, there are many avenues to explore. It is important to note that due to the ban on crypto asset advertising, many social media platforms are unavailable. Because of this, advertising requires a great deal of strategy and creativity. Opportunities to showcase advertisements via YouTube, web browsers, commercials, as well as, top ranking websites such as Coinmarket Cap are viable options. Additionally, many traditional advertising routes in print media and product placement in cinema exist, with the right targeting, massive audiences can be exposed to the LODE Project with great velocity. LODE has set the foundation for these opportunities and they will be activated when the timing is right.

MEDIA AND PR Similar to advertising and influencer marketing, there are more traditional media and PR opportunities. LODE has gained visibility in the media through interviews and coverage by various media outlets and publications. Additionally when ready, LODE will activate news coverage in major platforms and outlets, and syndications to become a leader on the financial market.

SOCIAL MEDIA As with almost all organizations, a presence on social media is an important part of the marketing funnel. With a financial operation such as LODE, it is best noted that Social Media serves an equally important role as a vehicle for customer retention as much as a tool for customer acquisition. Each platform plays a different role in engaging with the community in different ways.


LODE Project Business Plan

AGGREGATES: LINKEDIN, TWITTER, FACEBOOK AND INSTAGRAM Aggregates play an important role in pushing out content created by the marketing team. Its primary purpose is to keep its existing communities apprised of developments and gain further reach of generating new traffic through people’s social spheres. The higher the engagement on these platforms the more likely it will garner a larger reach. In 2021 LODE will expanding reach through emerging social media platforms. New platforms being considered include: - MeWe - ParlerVideo - BitChute and Rumble - Signal - Clouthub.com

LODE.one is the largest tool the platform has for capturing new users. CONTENT HOSTING: YOUTUBE, MEDIUM AND EMAIL Content hosting platforms such as the ones listed above are the ones where high value thought leadership and content is largely produced. These platforms serve as the “go to” locations for information on the project, as well as, have the highest conversion rate of acquisition and engagement. Over the course of 2 years, LODE has increased its YouTube over 200% with the help of influencer marketing, and video has become the most popular format for getting new information. Because of this, the largest portion of high quality media produced is done in-house with LODE’s Media and Marketing service providers to always meet the high calibre required of the program.

WEBSITES The repertoire of the LODE websites serve as important pieces of the LODE conversion funnel. Outlined below are a brief description of the purpose and advantages of each website.

LODE.ONE The core site, LODE.one is the largest tool the platform has for capturing new users. Looking over the Q1 of 2020, the LODE. one website has demonstrated itself to be an above average performer with a conversion rate of 7.7% (compared to industry averages of 2.5%).

AGXPAY.COM (Migrating to LODEPAY.COM) AGXPAY.com is the landing page for the LODE first utility asset - the AGX Coin. Labelled as “Modern Silver-Money”, the page’s purpose is to educate a global community to the advantages of backing their money with a sound asset. LODEPAY. com will include both the AGX and AUX Coin assets.

AGXMARKETS.COM (Migrating to LODEMARKETS.COM) Acquiring sound money is only one part of LODE’s mission to restore sound money. The other key component is to enable the world to spend and send money as each member sees fit. The AGXMARKETS.com website serves as a one-stop shop for merchants looking to retail their goods and services in exchange for one of the LODE Projects utility assets (AGX or AUX Coins).

41


V3.7

TECHNICAL OVERVIEW From a technology standpoint, an interoperability strategy drives the technology design and stack for the project.

The utilization of multiple chains ensures the project has relevance to a broad community. Additionally, the integration with financial services requires the development of a complex system that addresses multiple technology pillars. The LODE Platform is based on the five key technologies systems: The Bullion Engine, System Ledger & Minting, Payments Platforms, and Monetization. These systems work in harmony with one another to provide a complete monetary system.

The LODE Platform is based on the five key technologies systems.

42

DEVELOPMENT PHILOSOPHY • Cloud agnostic (as far as possible); • Secure by design (access management, limit access, traceable actions); • Reliable, Scalable, Repeatable and Recoverable (updates, backups, logging, alerting, infrastructure as code); • Automate where possible (testing, documentation, release notes); • Compliant (data access, gov’t compliance, record keeping); • Reduce risk; • Be cost-effective and • Improve transparency and visibility.


LODE Project Business Plan

THE BULLION ENGINE CRYPTO

FIAT

rd

erCa Silv

rd

erCa Silv

Silver Card

Merchant

Transaction Monitoring / Compliance

Marketing / Sales Sites

BULLION

Credit Cards

Bank

Transaction Monitoring / Compliance

Relay / Exchanges

Banking Gateway Fiat MasterSwitch

Transaction Monitoring / Compliance

Price Oracle

Bullion Dealers

AGX

AUX

LODE

AGUX

Vault Distributor / Affiliate

AGX Markets

Hy Account / Operational Data

Customer (AGX)

per

Ledger Fab

ric

Core API (aka Portal API)

LODE ADMIN REG AT L ISTER ODE .ON E

Investor (LODE)

KYC/Accreditation

LODEpay Wallet (Mobile and Desktop)

Back Office / Admin Portal

Vault Manager

LODE Admins

The Bullion Engine is the core of the LODE Project Technology platform and consists of the following components: MEMBERS PORTAL & BACK OFFICE ADMINISTRATION LODE Members Portal allows community members to register their accounts, verify their information, and submit an order for LODE Tokens and/or AGX or AUX Coins. The members portal includes reporting functionality that identifies the current status of the LODE Ecosystem including system updates, the current LODE and AGX or AUX Coin rates, terms and conditions, affiliate tracking, and the total silver bullion committed to the project in real-time.

The LODE BackOffice is a series of services designed to maintain the integrity and reportability of the LODE Ecosystem. These services enable the management of the network, accountability, resource management, and member support. It is the central hub for the community.

43


V3.7

The Bullion Engine is the core of the LODE Project Technology platform. SERVERS, NETWORKS & DATABASES LODE’s infrastructure has a number of independent components that work together to provide a secure and stable service. The LODE System currently uses AWS Lightsail and RDS to support our members’ portal, wallet backend, and aspects of the relay systems. LODE also uses Google Cloud Services and a containerization technology (Kubernetes/GKE) to support the private blockchain, Hyperledger-fabric, that keeps a ledger of members’ tokens and transactions. The current goal is to move more systems to the containerization solution as it allows for easy scalability, simplifies security, and provides services closer to the end-users, taking advantage of economies of scale. All systems use HTTPS to communicate with each other on a protected network and are protected by a VPN and Firewalls.

The published data for the LODE Price Oracle will eventually be verified by the smart contract on the blockchain. The Price Oracle™ will query a list of sources for the spot prices of silver, fiat currencies, cryptos, as well as, additional pricing elements. This pricing data will then be amalgamated into a conversion table for AGX and AUX Coins, all of which will be cryptographically signed against the current block number of the chosen blockchain main-net.

BULLPEN™ (BULLION DEALER API) A bullion dealer API would allow any interested bullion dealers to bid on selling LODE Project bullion. If there are multiple bullion dealers, they will each present their bid, and the lowest total cost will get the order. Bidding on orders of silver and gold is essentially what the futures market does but in a broader and more general sense.

BULLETIN BOARD The Bulletin Board is one option for liquidity for LODE Members, where they can freely buy and sell their tokens amongst the membership, without the regulatory requirements of a traditional cryptocurrency exchange. The Bulletin Board is similar to Craigslist or Facebook Marketplace, where buyers and sellers interact and set pricing directly. The interaction is entirely P2P with no third party compliance required.

VAULT SIGNER™ The Vault Signer™ provides both vault partners and auditors with the ability to input information about LODE specific precious metals into the system. The LODE System ledger records how many grams or milligrams of precious metals are digitized on the platform. By recording both the amount of precious metals held in the vault on the same ledger as recorded token holding, additional integrity and transparency are built into the system.

PRICE ORACLE™ The Price Oracle™ connects to multiple retail prices feeds and averages the results to give a true reflection of the current market rate for retail priced precious metals. Initially, the Price Oracle™ output will be represented as a live ticker on www.lode.one providing the community with a current sales price for AGX and AUX Coins, as well as, LODE Tokens. It provides a stable reference to the spot price of grams of precious metals alongside a near real-time price for fiat and crypto pairings.

44

COMPLIANCE TRANSACTION MONITORING In order to comply with the 5th AML directive from the European Union, the LODE1 Anstalt will be required to implement transaction monitoring software to ensure that it is not accidentally facilitating any transactions that are contradictory to the law. LODE1 Anstalt will either onboard third party providers for this service, or possibly consider building it internally depending on the governance requirements. Once transaction monitoring is in place, larger sales can transition from being a white-glove experience to a seamless automated experience.

KYC (Know Your Customer) LODE currently uses a trusted third party KYC provider. It provides the required checks for members against international databases which includes identity verification. This ensures that all transactions are completed by verified authentic individuals (ie. no blacklisted individuals in the system). This streamlines the sales process and ensures that the workflow can be done with no manual intervention.


LODE Project Business Plan

SYSTEM LEDGER & MINTING BLOCKCHAIN TECHNOLOGIES To provide broad exposure for the AGX and AUX Coins, the LODE System will be enabled across high-value blockchain networks including Hyperledger and Syscoin. Other potential options include, but not limited to, blockchains such as Ethereum, TRON, and EOS. As the LODE Project matures, additional blockchains will be considered. Utilizing multiple blockchains is the foundation for the project’s interoperability strategy. The project also employs a permissioned distributed ledger, Hyperledger Fabric, as the ledger of record and accountability. Hyperledger Fabric is the network for “native” AGX and AUX Coins and LODE Tokens. The stable and backed nature of AGX and AUX Coins ensures the project is not restricted to a coin on a single technology platform and network. AGX and AUX Coins are available as a Syscoin asset on the Syscoin blockchain and is key to introducing these coins to the world as modern, secure, fast money. The innovation in Sys 4.0 allows for AGX and AUX Coins to be experienced at the speed of tap and pay. It is the first public chain for AGX and AUX Coins to expose themselves to the world of commerce and trade.

LODE LEDGER™ POWERED BY HYPERLEDGER FABRIC PERMISSIONED The LODE Project employs a permissionbased distributed ledger: Hyperledger Fabric. Hyperledger Fabric is an open-source project supported strongly by industry veterans such as IBM. Hyperledger differs from a public blockchain network in one significant way: permissions.

Hyperledger offers the ability to restrict both read and write permissions, allowing enterprises to comply with security and privacy obligations. Further, smart contract upgrades are supported by Hyperledger. This feature permits enterprises to do things like improving security, correct errors, add features and respond to changing regulatory requirements.

BATON™ RELAY/MASTER SWITCH The LODE Hyperledger Fabric is a ledger of account that records all transactions and utilization of BATON™. It is the relay that enables the movement of AGX and AUX native coins to a public chain such as Syscoin. BATON™ is a clearinghouse for the community and it is a centralized facility to swap assets between chains. While minting takes place on the Hyperledger Fabric, AGX and AUX Coin holders will have the ability to trade on public decentralized networks, where supported. As such, a relay is required between the Hyperledger Fabric and the public networks that support AGX and AUX Coins.

EXCHANGE OFFER LODE is intending to launch a private exchange room, enabling buyback purchasing of AGX and AUX Coins back from members who wish to sell. To protect LODE System integrity, the price offered will be 2.5% below spot price, so as to encourage users to find other buyers willing to pay a higher rate. Encouraging users to sell to external buyers will keep AGX and AUX Coins in circulation, reducing our costs and increasing transaction fees. Acting as a buyer of last resort is helpful for when there is not enough liquidity in the secondary market.

45


V3.7

LODE HYPERLEDGER Public networks supporting AGX and AUX Coins can be considered a form of sidechain to the LODE1 Anstalt’s Hyperledger Fabric. Sidechain models use a concept of locking (i.e. escrow) on the main chain coupled with mint and burn on the sidechain.

LODE Hyperledger based network

Members include LODE, Auditors, and Vault/Forge Partners.

Relay Service

Ethereum Public Network

46

Syscoin Public Network

EOS Public Network

Stellar Public Network

Other Public Networks


LODE Project Business Plan

SYSCOIN ETHEREUM BRIDGE Ethereum is one of the most advanced blockchain ecosystems available today, and is certainly the most proven decentralized smart contract platform.

Ethereum is one of the most advanced blockchain ecosystems available today, and is certainly the most proven decentralized smart contract platform; however, ERC-20 projects face noticeable bandwidth limitations and high costs. Syscoin Bridge solves some of these problems. Rather than build a competing platform, the Syscoin developers chose to develop a scaling solution for Ethereum by which ERC-20 tokens gain a key property of money they are presently lacking - fast and scalable transactions. ERC-20 projects can use Syscoin Bridge today to effectively offload simple value transfers to Syscoin’s network while retaining all of the existing capabilities, smart contracts, and tools on the Ethereum mainnet.

Key Benefits: • Negligible fees - Transaction fees can add up quickly on the Ethereum network. Syscoin fees are a fraction of the cost of Ethereum’s. At the time of writing 5000 Ethereum transactions cost $790 USD, the same number on the Syscoin Platform cost $0.02. • Permissionless - The blockchain interoperability offered by Syscoin Bridge does not require counterparties or thirdparty liquidity providers. Any individual can transfer tokens both ways between Ethereum and Syscoin. There are no third-party risks or market limitations. • Proven Performance - Ethereum can currently handle around 15 transactions per second. Various plasma-based and sidechain solutions quote throughput at between 1000 to 9000 TPS. The performance of the Syscoin Platform has been rigorously tested and verified by a reputable third party testing service provider, Whiteblock. Their analysis shows that the Syscoin token layer can reasonably reach average throughput between 15000 and 60,200 TPS, with the zero-latency control group reaching above 140,000TPS.

TOKEN PLATFORM COMPARISON

OMG Syscoin

Stellar

EOS

Tron

Bitcoin

OMG Network

Ethereum

Security

AUXPOW SHA256 (Bitcoin merge-mined)

SCP

DPOS

DPOS

POW SHA 256

POA

POW Ethash

Validators

~2,500

40

21

27

~1,250

1

~8,000

T/PS

Average 8,000 - 15,000 Burst 60,000*

1,000*

4,000*

2,000*

213**

4,000*

15

Recent Operability

$0.000004

$0.000001

Stake-based priority

$0.009 $0.027

$0.25 $0.60

$0.68

$10.00

ERC-20 interoperability

Two-way exit 3 hours

None

One-way ETH to EOS

None

None

Two-way exit 2 weeks

SYS SPT, OMG

Compliance

SIP-0002 Network-enforced Rulesets

SEP-0003 Compliance Protocol

None

None

None

None

Via Contracts

Decentralization

All nodes verify then trust

Validator model

Validator model

Validator model

All nodes verify then trust

Authority + Validator model

All nodes verify then trust

47


V3.7

AGX/AUX AND THE SYSCOIN - ETHEREUM BRIDGE AGX and AUX will be able to benefit from the tooling, large community, and extended functionality that the Ethereum blockchain provides. The Syscoin Ethereum Bridge allows tokens to move between Syscoin and Ethereum blockchains and leverage their individual feature sets. The bridge is completely decentralized so it is the users choice to take advantage of Ethereum features. Things like DeFi become possible as they are extended to AGX/AUX users through the Syscoin bridge. Interoperability is the key to success for projects in the digital asset space giving users the convenience of choosing platforms and letting them decide their own tradeoffs of convenience of Ethereum and security and transactability of Syscoin.

48


LODE Project Business Plan

BLOCKCHAIN RECORDKEEPING Through this process, LODE is certain that AGX and AUX Coins created on public network chains still correspond to the same equivalent value in silver or gold. Blockchain-based recordkeeping may be given to auditors and regulators as part of the mandate for project transparency. LOCK asset in escrow

UNLOCK asset

Peg-out

Peg-out

MINT asset

BURN asset

Mainchain

Sidechain

1.

Asset is locked on the main

4.

Asset may be held,

chain in escrow;

transferred, or otherwise

2.

A locking event is emitted;

utilized in the sidechain;

3.

Asset is minted on the sidechain;

5.

Asset is burned on the

6.

BURN asset

A burn event is emitted, and

7.

Asset is unlocked on the main chain.

sidechain;

49


V3.7

SYSTEM LEDGER & MINTING When AGX and/or AUX Coins are on a public blockchain network, LODE offers no transfer restrictions and does not maintain KYC/ AML records for each transfer.

LODE does ensure that KYC/AML checks are completed for: • • •

Each identity on Hyperledger Fabric; Each time AGX and/or AUX Coins are transferred to Hyperledger Fabric, and Each time AGX and/or AUX Coins are transferred from Hyperledger Fabric to another public network.

LODE WILL: 1. 2. 3.

4. 5.

6.

50

store LODE Token balances on the LODE Hyperledger Fabric; issue revocable identities to LODE Token Holders; associate Public/Private ECDSA key pairs (or other unique identifiers) with each identity; record LODE Token balances for each identity on a LODE Hyperledger; not retain the ability to edit LODE Token balances directly and can provide proof to regulators and auditors that LODE did not change balances post-issuance, and retain the ability to freeze accounts, revoke identities, or otherwise update the business logic/rules associated with the LODE Token transfers on the LODE Hyperledger.

INTERNAL GATEWAY The LODE Internal Gateway manages all of the connections to any provider, partner, merchant, or user and it allows monitoring of all of the LODE System transactions fiat, digital, or otherwise.

SYSCOIN – PERMISSIONLESS NETWORK ACCESS Syscoin is the base Proof-of-Work (PoW) layer managing the AGX-S and AUX-S Coins. There are three unique core competencies of Syscoin that are offered to the industry: 1. Merge mined with Bitcoin (hash rate is shared with Bitcoin as the parent, thus secure from 51% attacks, unlike most other chains.) 2. The token platform where businesses can create tokens and leverage Z-DAG for micro-transaction settlements within seconds, for a fraction of fees because of the new fee market Z-DAG presents. The option of using Z-DAG is fully compliant with Bitcoin security and thus does not open new security concerns. 3. Interoperability with other chains presents a solution to users of other chains to come to Syscoin to leverage speed/cost savings as well as PoW security of Bitcoin. It also presents a solution to users of Syscoin to move to other chains that have utility value without trust. This shows that first-time supply can be fractionalized across multiple blockchains.


LODE Project Business Plan

With LODE’s interoperability strategy and design, Syscoin can implement new ways to interoperate across chains including using Zero-Knowledge Proofs (ZKP) to avoid costly integrations that require interactivity between multiple actors. Recursive ZKP such as Halo will offer new scalable ways to enable multichain interoperability. Syscoin is engaged in further research to ultimately enable a mechanism to fractionalize supply across any number of secure chains. Syscoin introduces a novel implementation of an asset infrastructure using master nodes to provide algorithmic validators for a PoW/PoS hybrid consensus model and instant pseudointeractive, zero-confirmation cryptocurrency transactions with double-spend protection through Z-DAG (Zero-Confirmation Directed Acyclic Graph) -- an instant settlement protocol functioning across all asset-related transactions.

Thanks to the innovations present in Syscoin, these coins will also have the capability to transition between Syscoin Assets and Ethereum ERC20 tokens. The Z-DAG protocol is used as a complementary system to PoW in the confirmation of Syscoin service transactions. In essence, a Z-DAG is simply a directed acyclic graph (DAG) where validating nodes verify the sequential ordering of transactions received in their memory pools. Z-DAG is used by the validating nodes across the network to ensure there is absolute consensus on the ordering of transactions with no double-spends. By doing zero-confirmation settlements with probabilistically detected double-spends, a unique fee market ensues. This mechanism is fully compatible with Bitcoin to avoid game-theoretical attacks that may arrive in the form of DoS/spam attacks. Merchants simply have the choice to accept transactions as settled with Z-DAG or to wait for confirmation of blocks. The functionality of Z-DAG is completely opt-in and allows users to make a choice unlike other zero-confirmation strategies.

AGX and AUX Coin assets will be available on Syscoin. Thanks to the innovations present in Syscoin, these coins will also have the capability to transition between Syscoin Assets and Ethereum ERC20 tokens, and vice versa. Syscoin also introduces full segwit support which paves the way for additional innovations such as lightning networks, atomic swaps, and more.

LODEPAY WALLET GAS STATION™ Many potential customers are unfamiliar with how blockchains work and aren’t familiar with the concept of gas. It essentially refers to the execution fee for every operation made on the blockchain. The Gas Station™ tab in the mobile wallet is designed to abstract that out of buying transactions, so as to make AGX and AUX Coins easier to use for crypto novices. A low volume one-directional exchange will allow people to convert AGX or AUX Coins into the platform token for the platform they are on, and cover the costs for these transactions. Each platform has different gas requirements, and the gas station tab is designed to handle that on the user’s behalf.

5

The LODE Gas Station™ is not a true exchange. As such, it is expected that users will purchase small amounts at a time. To users familiar with bank service charges offering 12 transactions for $5 or more, the low cost of the LODE Gas Station fees are a much less expensive offering for the convenience of using the App.

MINTING MULTI-SIG™ MINTING The private system ledger makes use of multi-signature transactions to further secure blockchain state changes. Whereas typical blockchain transactions require one cryptographic signature to execute, as the name implies, multi-signature transactions require multiple signatures before the transaction will execute. Using this approach, mission-critical transactions such as minting and transferring from the treasury will only execute if all relevant team members or executives first sign off.

51


WALLET TECHNOLOGY A hot wallet refers to an asset wallet that is online and connected in some way to the Internet. It is a term that refers to assets that are not being kept in cold storage. Asset-related services and exchanges that are able to pay out withdrawals

MW instantly can be said to be paying them from a “hot wallet�.


W

One wallet bridging a world of opportunities. Buy, sell, and store AGX and AUX instantly on our easy-to-use, peer-to-peer digital wallet.

LODEPAY MOBILE WALLET

COLD STORAGE WALLETS

The LODEPAY Mobile Wallet is a hot wallet designed for commerce and convenience -- lightweight and transacts at the speed of modern money. The LODEPAY Wallet is a non-custodial, multi-asset, multinetworked wallet unlike any other, enabling the movement of AGX and AUX Coins from one blockchain to another, calling upon BATON™ to do the heavy lifting. It also enables peer-to-peer transfers and functions as a simple POS.

For the highest level of security, AGX and AUX Coins deployed on public ledgers can be secured using cold storage through a variety of hardware wallets and paper wallet options. Users can secure their assets using Ledger or Trezor hardware wallets via the Electrum platform. Users can also store tokens entirely nonelectronically using a paper wallet.

LODEPAY Wallet is a native application for dominant mobile platforms (iOS & Android), providing members with a means of utilizing their AGX and AUX Coins for commerce and financial transactions. The LODEPAY Wallet relies on fast, trustless, off-chain transactions, which will be secured with on-chain settlements through the Syscoin Z-DAG protocol.

LODE is implementing Payment Gateways in order to connect to Payment Processors in multiple jurisdictions that will allow LODE to offer its wallet services as a local or regional entity for each of its markets. As well, it will allow for the connection to local merchants networks, ISOs, and resellers that offer LODE products to these merchants. This will also allow for the issuing of virtual and physical cards to LODE Members, as well as, offering virtual IBAN accounts.

LODEPAY WEB WALLET LODEPAY Web Wallet mirrors the functionality of the mobile wallet and is accessible through any web browser on a desktop or mobile device with no download or installation required. The LODEPAY Web Wallet offers users the same bank-grade security as the LODEPAY Mobile Wallet.

PAYMENT PLATFORMS


V3.7

REVENUE ENGINES The MotherLODE: There are two main revenue engines in the LODE Financial Model that provide the go-to-market strategy for the ecosystem:

BULLION ENGINE that processes and ledgers transactions in AGX and AUX and charges a markup on the spot price.

54

54

PAYMENTS PLATFORM includes eMoney Services along with merchant networks and retail/end-user networks which contain a mix of fee-based and transactional revenue.


LODE Project Business Plan

INFLOWS FROM THE BULLION ENGINE Estimated Year

Current

Current

Current

2021

2021

2021

2021

2022

Overall Total

AGX Sales

Monthly Subscriptions

Silver Cards

Futures contracts - buying AG at/under spot

Buying silver directly from miners/ smelters

Staining Fees

Bleaching Fees

Demurrage

Fiat or Crypto

Both

Both

Both

Fiat

Fiat

Crypto

Crypto

Crypto

Importance to the vision of silver money

High

Medium

Medium

High

High

Low

Low

Low

Importance to Revenue

High

High

Low

High

High

Medium

Low

Medium

Overall Importance

High

High

Low

High

High

MediumLow

Low

Mediumlow

INFLOWS FROM THE PAYMENT PLATFORM Estimated Year

2020

2020

2020

2021

2021

2021

2021

2021

2022

2022

2022

2022

Overall Total

Transaction Fees (P2P)

Debit Card Loading

Debit Card Spending

Interchange Fees

AGX Powered Marketplaces

LODEPAY Marketplace fees

Partner Rev Share and affiliate program

% of Merchant Sales

Corporate Trade

White label Wallet

White label AGX Markets

Relay Fees (Baton)

Fiat or Crypto

Crypto

Both

Both

Fiat

Crypto/ Both

Crypto/ Both

Unknown

Crypto/ Both

Both

Crypto

Crypto/ Both

Crypto

Importance to the vision of silver money

High

MediumHigh

MediumHigh

Low

High

Medium

Mediumlow

Mediumlow

Low

Medium

Medium

Low

Importance to Revenue

High

Low

Low

Low

Low

Low

Low

Low

Low

Low

Low

Medium

Overall Importance

High

Medium

MediumLow

Low

Medium

MediumLow

Low

Low

Low

MediumLow

MediumLow

MediumLow

BULLION ENGINE inputs include: • AGX/AUX Sales • Monthly Subscriptions • Transaction Fees (P2P) • Demurrage • Futures contracts - buying AG at/under spot • Buying silver directly from miners/ smelters • Partner Rev Share and affiliate program • Silver Cards (Giftcards) • Premium Account fees for Hyperledger • Relay Fees (Baton) % micropayment reinvestments • Staining Fees • Bleaching Fees

PAYMENT PLATFORM inputs include: • Fees for the premium version of the app • In-app Purchases fees • In-app Advertising fees • Processing fees • Payment Rail Usage fees • Other security tokens traded for AGX • Regulated exchange revenues • % of Merchant Sales • Transaction processing fees • AGX Powered Marketplaces • LODEPay Marketplace fees • White label AGX Markets

Specifically for the Payment Platform aspect, LODE has based its financial model on a transaction model basis using metrics from the payment platform industry and companies such as VISA, MasterCard, and American Express.

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V3.7

PAYMENTS & MONETIZATION INFLOWS FROM OTHER AREAS Estimated Year

2021

2021

2021

2021

2021

2022

2022

2023

Overall Total

In-app Purchases (other than LODE Assets)

In-app Advertising

Advertising Merchants

Premium Account fees for Hyperledger

Fee for premium version of app

Other security tokens traded for AGX

Regulated exchange revenues

Percent micropayment reinvestments

Fiat or Crypto

Both

Both

Both

Crypto/ Both

Both

Crypto

Crypto

Crypto/ Both

Importance to the vision of silver money

Low

Low

Low

Low

Low

Medium

Medium

Low

Importance to Revenue

Low

Low

Low

Low

Low

Medium

MediumLow

Low

Overall Importance

Low

Low

Low

Low

Low

Medium

Medium

Low

LODE SYSTEM REVENUE INFLOWS There are a large number of potential inflows to the LODE System, the chart highlights the main expected inflows along with the projected release timelines of the products and services associated with these inflows.

BULLION ENGINE The LODE Tokens are the virtual equity of the group. LODE Tokens are purchased with fiat capital, or physical private silver or gold assets. The inflows are utilized to construct a silver and gold monetary mass which is utilized for the tokenization and minting of the systems products - AGX and AUX Coins. As the LODE Silver or Gold Reserves grow, new silver and/or gold inflows allow for the minting of new AGX or AUX Coins, to be sold to members for use in daily trade and commerce. The intention is to limit the number of LODE Tokens to a maximum of 77 Million.

LODEMarkets is a trade and commerce marketplace that enables sales and purchases using AGX and AUX Coins. 56

SYSTEM LEDGER & MINTING The LODE System Ledger operates on Hyperledger Fabric. LODE Tokens and AGX/ AUX Coins are minted from the vaulted silver and gold monetary mass via a multi-signature minting protocol. SYSTEM FEES There is a markup on the sale price of retail coins vs the underlying silver, as well as, transaction fees when users send their tokens P2P. Tiered Transaction Fee: a progressively smaller percentage is taken from transactions until it caps out. Demurrage: a small, time-based fee paid daily or hourly, based on the number of coins held, and is not affected by transactions. This fee is not currently implemented and is held in reserve for public blockchains where transaction fees are not able to be implemented. For non-crypto systems, LODE requires a “fees per transaction� like any other payment system.

7


LODE Project Business Plan

TOKEN STAINING & WHITE LABELLING PATINA™ is a white label and collectable coin program that allows AGX and AUX Coins to be rebranded and used by third parties, or used as promotional coins. They are still backed by the same underlying metal, and the branded money will still be accepted by merchants just the same as unbranded coins. Corporations and non-profit organizations can pay a small fee to create branded coins that they can use for promotional purposes, or to be able to more easily track what happens to specific money after it’s been donated or spent.

There will be a small fee to apply a stain to coins, which will be made non-fungible, essentially turning them into the digital equivalent of a fifty-cent coin or five-cent coin. User’s wallets will automatically use the change from their regular AGX/AUX to make up the difference in transactions or can break a stained coin into the base currency for a small fee.

77M As the LODE Silver or Gold Reserves grow, new silver and/or gold inflows allow for the minting of new AGX or AUX Coins

PAYMENTS PLATFORM

LODE Payments International (LPI) powers the distribution and processing of “digital representations of real-world assets” globally, using trustless technology as its foundation to sending, receiving, and storing money simply. The current primary product offered by LPI is the LODEPay Wallet: A noncustodial universal multi-currency wallet that enables holders to gain access to LODE’s “digital representations of real-world assets” and use them in a fee-reduced environment for commerce, banking, and business. Trustless liquidity features will allow individuals to instantly settle, manage, and hold assets in whatever currency or capacity they choose. LODE also has a small but growing marketplace “LODEMarkets” featuring goods and services that can be purchased using AGX and AUX Coins.

CURRENT PRODUCTS & SERVICES

LODEPay Wallet LODEPay Wallet (LPW) (Current Release Version 1.4.2) - a native application for dominant mobile platforms (iOS & Android), providing members with a means of utilizing their AGX and AUX Coins for commerce and financial transactions. The LPW relies on fast, trustless, off-chain transactions, which are secured with on-chain settlements through the Syscoin Z-DAG™ protocol. The LPW is a non-custodial, multi-asset, multinetworked wallet unlike any other, enabling the movement of AGX and AUX Coins from one blockchain to another, calling upon BATON™ to do the heavy lifting. It also enables peer-topeer transfers and functions as a simple POS. The LPW is currently available on both iOS and Android through the applicable stores.

57


V3.7

LODEPay Web Wallet (LPWW) This wallet mirrors the functionality of the mobile wallet and is accessible through any web browser on a desktop or mobile device with no download or installation required. The LPWW offers users the same bank-grade security as the LODEPay Mobile Wallet. LODEPay Gas Station LODEPay Gas Station - Many potential customers are unfamiliar with how blockchains work and aren’t familiar with the concept of gas. It essentially refers to the execution fee for every operation made on the blockchain. The Gas Station tab in the mobile wallet is designed to simplify buying transactions, so as to make AGX and AUX Coins easier to use for crypto novices. A low volume one-directional exchange will allow people to convert AGX or AUX Coins into the platform token for the platform they are on, and cover the costs for these transactions. Each platform has different gas requirements, and the gas station tab is designed to handle that on the user’s behalf.

The LODE Gas Station is not a true exchange. As such, it is expected that users will purchase small amounts at a time. To users familiar with bank service charges offering 12 transactions for $5 or more, the low cost of the LODE Gas Station fees is a much less expensive offering for the convenience of using the App. For example, sending $100 USD will cost approximately $0.03 to send on the LPW, through the Gas Station. This will enable people to do microtransactions at a considerably lower cost. LODEMarkets Currently, LODEMarkets is a trade and commerce marketplace that enables sales and purchases using AGX and AUX Coins. Unlike usual card payments, businesses that accept AGX and AUX Coins for payment of their products and services will pay almost $0 cash fees for the sales costs. LODE intends to extend the services for large trade organizations as a way to mitigate their losses in heavy foreign exchange fees and the cost of transactions. LODEMarkets enable merchants to pay for the products and services with new revenue streams from new sales to new customers.

LPI will look to provide an affordable, borderless merchant service offering available to all merchants.

58


LODE Project Business Plan

FUTURE PRODUCTS & SERVICES LPI is intending to develop Payment Gateways in order to connect to Payment Processors in multiple jurisdictions that will allow LPI to offer its wallet services as a local or regional entity for each of its markets. As well, it will allow for the connection to local merchants networks, ISOs, and resellers that offer LPI products to these merchants. This will also allow for the issuing of virtual and physical cards to LODE Project Members, as well as, offering virtual IBAN accounts. The list of products below outlines the current development plans but are only in the planning stages; each product is undergoing a process of road mapping and scope development. No code or product outcomes have yet been completed. Third-party Payment Platform Integration Through integrations with other thirdparty payment platforms, LPI is able to access users of wallet providers around the world. Transaction Monitoring - AML5 Transaction monitoring and KYC/AML services required by regulators is a complex and expensive undertaking. Adherence to AML5 regulated processes that will be required by everyone, from end users to commercial buyers of the LPI System. As such, the LPI System customers and users will be required to run through scanning with their transaction networks supporting industry-leading forensics solutions that ensure token traceability and wallet risk scoring. This service will be integrated across other monetization inflow channels.

Bulletin Board - Fiat To AGX/AUX, Crypto To AGX/AUX Exchange Through the custom development of exchange trading pairs between AGX/AUX Coins and other digital and fiat assets, the LODE Project via LPI can offer AGX/AUX Coin Holders with liquidity services and can offer investors the ability to trade against digital assets. In time, the development of further exchange services will continue to drive monetization opportunities. Users can also access services such as prepaid cards or ACH payment transfers to off-ramp from the exchange providing additional monetization opportunities for the LODE Project through LPI. Merchant Networks Integration Through the development of payment network integrations, shopping cart plugins, ATM integration, and custom wallet integrations, LPI will look to provide an affordable, borderless merchant service offering available to all merchants. LPI provides this channel the ability to leverage the LPW as is or for larger clients, the ability to leverage the wallet APIs and development services team to provide ancillary wallet services on top of the platform. Trade Networks There are many reasons to connect Barter Exchanges, Networks of Exchanges, and Corporate Barter to the LODE Project via LPI, but the most compelling reasons are the benefits it provides to all participants. Barter, also known as Reciprocal Trade, provides liquidity, a massive array of product and service availability from hundreds of thousands of suppliers that can be purchased with AGX/AUX Coins, new distribution channels for LODEMarkets merchants, and bottom-line cost savings and profit for all participants. Connecting the $85 Billion Reciprocal Trade Industry to the LODE Project via LPI also creates a network effect for LPI via interconnected marketplaces and merchant directories between exchanges worldwide, which enhances transaction velocity.

LPI for SME’s & Corporations Expanding the ecosystem to support ancillary products “bolt-on” offerings will allow companies the ability to customize the LODEPay Application. By offering APIs and dynamic settings and workflow support, organizations will have the ability to customize the LODEPay experience for their unique business process to service the needs of their customer communities and internal departments. Part of the LPI for Enterprises initiative will include the targeting of B2C and B2B organizations looking to provide their customer communities with wallet technologies tailored for their organization. Products on SME & Corporate Roadmap include: • Staining Services • Bleaching Services • Restaining Services • White Labelling of the LODEPay Wallet • KYC/AML • Advertising • Maps & Notifications • Analytics • Merchant Processing • Loyalty Tokens • Event Ticketing • Post-Paid Credit Solutions • Premium Support Services • Payroll • Distributor Gateway • LODEPay Switch • Merchant Terminal Solution (“Zero”)

59

Organizations will have the ability to customize the LODEPay experience for their unique business process to service the needs of their customer communities and internal departments.

59


V3.7

FINANCIAL MODEL LODE has based its financial model on a transaction model basis using metrics from the payment platform industry and companies such as VISA, MasterCard and American Express. Their metrics include market penetration from the user perspective and merchant usage along with other factors inclusive within the payments platform industry. The platform along with our LODEpay Wallet is particularly suited for the emerging markets of South America, Africa, Indian Subcontinent and S.E. Asia. This marketplace constitutes 3.6 Billion people who are under banked and are natural candidates for operating their own personal financial application such as the LODEPAY Wallet on their Smartphone. Our data and research gives us a very conservative market penetration rate of 72 Million users by year 5 of operations. As of the end of Q4 2020, we are in negotiations with affiliate networks from the areas named above that represent over 500 Million users.

The LODE Token value will be driven from profits of the entire LODE Ecosystem, this will include sales transactions of the AGX/AUX Coins along with incomes from resellers, affiliates network, profit sharing and the LODE Marketplace. Using the payment platform industry metrics, this will give us an estimated market value of $1.2-1.5B with revenues of $3.4B which translates to LODE Token values (token issue of 77,000,000 tokens) between $21 - $27 USD per LODE Token in year 5 of operations.

REVENUE DRIVERS AND ASSUMPTIONS

1.

There are three main revenue drivers in the LODE financial model: 60

Part of the LODE for Enterprises initiative will include the targeting of B2C and B2B organizations.

2.

3.

The bullion engine that processes and ledgers transactions in AGX and AUX and charges a markup on the spot price; The merchant network described above, which contains a mix of fee based and transactional revenue; and Retail/end user networks, which charges a transactional fee of 1% to users and a fixed fee to card issuers for each retail user in the system.


LODE Project Business Plan

BULLION ENGINE REVENUE PROJECTIONS Bullion Engine Economics (Millions) 2021 2022 2023 2024 2025 Bullion Engine Gross Revenue $7,859,569 $16,442,985 $60,262,396 $162,562,022 $424,144,947 Bullion Engine Expenses Bullion Engine - Cost of Sales $6,912,433 $14,298,248 $53,805,711 $144,827,983 $381,341,329 Bullion Engine - Incentives $149,363 $338,225 $1,018,219 $2,796,658 $6,750,131 Total Bullion Engine Expenses $7,061,796 $14,636,473 $54,823,930 $147,624,641 $388,091,459 Bullion Engine Net Margin $797,772.81 $1,806,512.09 $5,438,466.00 $14,937,380.83 $36,053,487.89

PAYMENT PLATFORM REVENUE PROJECTIONS LPI Transaction Revenue

2021

2022

2023

2024

2025

Retail Users Transaction Revenue - Cards $52,155 $897,491 $5,438,069 $24,431,633 $86,240,158 Fixed Revenue - Cards $164,046 $1,113,271 $4,531,724 $20,359,694 $71,866,798 Transaction Revenue - Network $105,615 $1,817,420 $11,012,089 $49,474,056 $174,636,319 Total Retail User Revenue $321,816 $3,828,182 $20,981,882 $94,265,383 $332,743,275 SME/Merchants Transaction Revenue - Network $45,689 $1,791,281 $15,398,438 $63,281,250 $147,234,375 Total SME/Merchant Revenue $45,689 $1,791,281 $15,398,438 $63,281,250 $147,234,375 Commercial Clients Transaction Revenue - Network - $180,000 $540,000 $1,020,000 $1,500,000 Total Commercial Client Revenue - $180,000 $540,000 $1,020,000 $1,500,000 LPI Gross Revenue $367,505 $5,799,463 $36,920,319 $158,566,633 $481,477,650 LPI Expenses Other Costs of Sales1 $110,251 $1,739,839 $11,076,096 $47,569,990 $144,443,295 LPI Net Margin $257,253 $4,059,624 $25,844,223 $110,996,643 $337,034,355

(1) Forecast as 30% of Transactional and Fixed Revenue.

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V3.7

GENERAL EXPENSES

2021 2022 2023 2024 2025 Sales & Marketing Employee Costs $716,527 $3,480,207 $12,469,067 $27,365,400 $48,697,133 Other Direct Sales & Marketing Costs $32,000 $390,000 $2,044,000 $4,844,000 $8,844,000 G&A Employee Costs $6,146,750 $9,418,500 $11,804,750 $14,961,500 $18,129,750 Rent Expense $467,307 $1,034,027 $2,690,667 $5,360,000 $9,069,333 Travel Expenses $29,207 $64,627 $168,167 $335,000 $566,833 Telephony $29,207 $64,627 $168,167 $335,000 $566,833 PCs & Maintenance $29,207 $64,627 $168,167 $335,000 $566,833 Other Office Expenses $14,603 $32,313 $84,083 $167,500 $283,417 Fixed Fiduciary/Audit Costs $100,000 $200,000 $500,000 $1,000,000 $1,000,000 R&D Expenses Total Expenses

$500,000 $8,064,806.67

$1,000,000 $15,748,926.67

$1,500,000 $2,000,000 $2,500,000 $31,597,066.67 $56,703,400.00 $90,224,133.33

NET TOTAL

2021 2022 2023 2024 2025 Combined Gross Revenue $8,227,074 $22,242,448 $97,182,715 $321,128,655 $905,622,598 Combined compartmented expenses $7,172,047 $16,376,312 $65,900,026 $195,194,631 $532,534,754 Bullion Engine Net Margin $797,773 $1,806,512 $5,438,466 $14,937,381 $36,053,488 LPI Net Margin $257,253 $4,059,624 $25,844,223 $110,996,643 $337,034,355 General Overhead $8,064,807 $15,748,927 $31,597,067 $56,703,400 $90,224,133 EBITDA -$7,009,780.48 -$9,882,790.47 -$314,377.34 $69,230,624.08 $282,863,709.78

62


LODE Project Business Plan

COST ASSUMPTIONS Rolling out LODE to a large user base will require buy-in and promotion from channel partners including merchant networks, card issuers, etc. We assume that all merchant and retail networks are subject to a partner revenue share of 10% of the revenue generated from the associated channel.

The following cost of goods sold assumptions are incorporated into the modelling: 1. 2.

3.

Bullion Engine: the cost of bullion. Merchant Networks: merchant MAS fees, per item authentication and settlement fees, interchange costs and loss provisions. Retail/End User Networks: 30% commission/ referral cost on both fixed (per user charge) revenue and transactional revenue.

The majority of the remaining costs in the financial model are related to employee and personnel costs which are anticipated to scale up as the network grows. The table below summarizes the growth in number of employees and total personnel costs over the seven year forecast period.

Direct marketing/acquisition costs for merchant portfolios were assumed to be 15x the monthly revenue on those portfolios.

Additional sales, marketing, general and administrative costs include allocations for additional marketing spend, office and rent expenses, travel, telephony and technology expenses, and legal and audit costs.

Direct marketing/acquisition costs for retail users were assumed to be $5 per user in years 1 and 2, $4 in year 3, and $3 thereafter.

Finally, we have allocated an initial R&D budget of 3% of revenue for the first two years, declining to 2% for the remainder of the forecast period.

Employees Personnel Costs (USD m)

Year 1

Year 2

Year 3

Year 4

Year 5

65 110 174 262 372 $ 8.1 $ 15.7 $ 31.6 $ 56.7 $ 90.2

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V3.7

BENEFITS FOR INVESTORS LODE is a multifaceted platform that consists of proprietary technology, payment platforms, media communications, and multi-jurisdictional corporate structures. All of this is represented by the LODE Token which is virtual equity and represents a stakeholder’s position in the entire global operations of the LODE1 Anstalt which is the parent holding company of all LODE operations in the Principality of Liechtenstein. LODE’s goal for market penetration with its AGX/AUX Coins is focused on large “underbanked” markets such as Africa, South American, India, Pakistan, Bangladesh, and Indonesia. These countries alone represent over 3 Billion people with an average of over 43% being in the underbanked category. These people do have one common denominator that links them together, a smartphone, and the ability to utilize the LODEPAY Wallet to achieve their own financial freedom. LODE is currently in negotiations with several groups from these countries who have affiliate-networks of clients such as micro-savings and other financial products being offered to their user base. The scale of their operations and number of users is extremely large compared to North American and European operations of a similar nature. The four primary groups in negotiations have over 500M registered users.

64

LODE is primarily a payments platform allowing the storing and transfer of value. Therefore, LODE uses evaluation metrics of the payments industry such as VISA and MasterCard to measure the LODE System value prediction for forward-looking projections. Conservative growth over 5 years shows, LODE reaching a 13.1 M person user base. All values created in the system flow back to the parent LODE1 Anstalt. The LODE Token represents a stakeholding of virtual equity in that entity. In our opinion, this means the current value of LODE Tokens will increase by multiple amounts over the coming 5-year period using the aforementioned payment platform metrics of evaluation.

LODE is primarily a payments platform allowing the storing and transfer of value.


LODE Project Business Plan

VALUATION SUMMARY & CONCLUSION

The LODE Project undertook an independent valuation from *Evans & Evans. The purpose of the independent valuation is to give the LODE Community an unbiased review of the LODE Offering. The results of the valuation are as follows. ESTIMATED VALUES: IN USD LODE TOKENS

AGX COINS

AUX COINS

High $21.58

High $1.50

High $0.11

Low $15.88

Low $1.26

Low $0.09

Given the nature of the LODE System, the increase in the value of the LODE Token is not linear, it is exponential. It’s important to note that in the LODE System, LODE Tokens function as the virtual equity and AGX and AUX as the global medium of exchange. As more silver and gold is added, more AGX and AUX Coins are circulated, more trading occurs, and more merchants join the LODE System, the profit generated by LODE1 is expected to increase. Accordingly, there is the potential for the LODE Token to see significant price increases over its operating lifecycle. Based on the LODE’s operating model and the appreciation of existing non-asset backed cryptocurrencies, significant increases in value are achievable in the market. It is important for readers to note that the LODE Price Oracle acts as the pricing mechanism that provides users with realtime values for retail silver and gold. This key element of the LODE Project directly influences the value of LODE Tokens, along with AGX and AUX Coins. Over the long-term as the LODE System continues to operate and more transactions occur, the potential returns to LODE Token holders can increase as the value of retail precious metals fluctuates.

Over the past three years, the LODE Project has gone from concept to global operations with 70+ SPA members worldwide assisting in the development of this ambitious project. Currently, there are 6200+ active members in 125 countries, and over 582K oz of precious metals vaulted. As world economies rapidly shift, the LODE Project is poised to be the true challenger of fiat currencies and global payment systems currently in use. Thank you for your interest in the LODE Project, further questions may be directed to: info@lode.one.

Currently, there are 6200+ active members in 125 countries, and over 582K oz of precious metals vaulted.

*Evans & Evans, Inc. is a leading Canadian boutique Investment Banking firm with offices and affiliates in Canada, the U.S., and Asia. They offer a range of independent and advocate services to their clients including valuation and fairness opinions, business due diligence, business planning, market and competitive research, capital formation assistance, and mergers and acquisitions advice. This is the fourth valuation provided by Evans & Evans throughout the LODE Project’s lifetime.

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V3.7

FORWARD-LOOKING STATEMENT AND DISCLAIMER

The information, opinions and views contained herein have not been tailored to the investment objectives of any one individual, are current only as of the date hereof and may be subject to change at any time without prior notice. LODE does not have any obligation to provide revised opinions in the event of changed circumstances. All investment strategies and investments involve risk of loss. Nothing contained in this document should be construed as investment advice. Any reference to an investment’s past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.

66

Any ideas or strategies discussed herein should not be undertaken by any individual without prior consultation with a financial professional for the purpose of assessing whether the ideas or strategies that are discussed are suitable to you based on your own personal financial objectives, needs and risk tolerance. LODE expressly disclaims any liability or loss incurred by any person who acts on the information, ideas or strategies discussed herein. The information contained herein is not, and shall not constitute an offer to sell, a solicitation of an offer to buy or an offer to purchase any securities, nor should it be deemed to be an offer, or a solicitation of an offer, to purchase or sell any investment product or service.


LODE1 ANSTALT Zweistäpfle 6 Postfach 441 9496 Balzers Principality of Liechtenstein