MATERIAL GOLD NORTH AMERICA INC.

THE COMPANY’S MISSION IS TO BECOME A MAJOR GOLD

PRODUCER, BY DEVELOPING OUR REVERSE NET STREAMING

ROYALITY MODEL AND IMPLEMENT OUR LICENSED THERMAL

FRAGMENTATION MINING PROCESS WITHIN THE MINING INDUSTRY

May 2018

GOLD RUSH COIN

Page 2

EXECUTIVE SUMMARY

WHERE THERMAL FRAGMENTATION GETS REAL

Material Gold North America Inc. (MGNA) will become a hybrid mining & technology company

planned to work with a revolutionary precious metal extraction process. We are a worldwide

licensee of a proprietary technology for the extraction of high grade narrow-vein ore bodies

called ‘Thermal Fragmentation’ (aka Dragon), developed by Nippon Dragon Resources Inc, a

public Canadian mining company. The process was developed to economically extract

precious metals from narrow geological structures.

CONTEXT

Throughout the globe, proven reserves are being depleted faster than the new discoveries are

found. The total annual world gold production currently stands at 3000 tonnes and is projected

to fall as much as 50% within the next 10 years. The costs to produce ounces are increasing

and it is also quite challenging to obtain permits in many countries. Similar to old oil wells,

many old mining sites still contain significant amounts of precious metals. Since the early

days of mining, the industry has used and continues to use the drill and blast extraction

method. This method is economically used within ore bodies that contain large ore structures

(+2 metres). Most of the remaining resources in old mines are encased in ore structures of

less than 2 metres. Also, most high grade narrow vein surface deposits are not valued. It

actually takes 3000 exploration projects to produce one mine and because it takes a minimum

of 10 years to bring a new discovery into production, the coming years will be challenging to

maintain their production levels. Additionally, over the past 5 years, most of the larger mining

companies have cut their exploration budgets and the pipeline of new projects has never been

so scarce. Exploration companies are struggling to fund their drilling programmes, making

the future of mining more challenging.

OPPORTUNITY

There is an inevitable forward decline in production of precious metals in the near future. The

dwindling of reserves will force mining companies to lower their grades even lower than 1g/t,

increasing pressure on their profit margins. The mining industry is in a critical stage where

they will be forced into bankruptcy and no clear solutions are found yet. MGNA is therefore

very well positioned to address a clearly untapped market need.

MGNA’S MISSION

MGNA’s mission is to offer a more efficient, safer and greener technology that will replace the

use of heavy explosives in hard rock mining and civil engineering.

MANAGEMENT’S VISION

Our goal is to reopen closed mines and also bring undeveloped exploration projects into

production, based on a thermal decline production model. These mine sites will also host a

‘technological showcase’ for investors and potential clients and also be used for training and

development of new applications.

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The company intends to implement its R-NSR ‘Reverse Net Streaming Royalty’ model as an

innovative way to increase cash flow and position itself in a new ‘niche’ market. The first is the

numerous neglected and untapped high grade narrow vein structures in operating mines. The

second is exploration companies that possess well defined high grade narrow vein surface

structures that could be developed into small scale cash flow generating projects. In both

cases MGNA would assume 100% of all expenses and manage the complete production

process and in return, would pay NSR to the owners.

The R-NSR ‘Reverse Net Streaming Royalty’ business model was specifically developed to

allow for the exploitation of high grade narrow vein structures on undervalued ore bodies with

the thermal fragmentation mining process. Acquiring and converting undervalued mining

assets into high return cash flow generators is also important part of the company’s growth

strategy.

MGNA will establish a joint-venture with Nippon Dragon in Canada to develop and operate

pilot projects to produce gold, based on the R-NSR ‘Reverse Net Streaming Royalty’ business

model. After the pilot project phase, MGNA will expand worldwide with an ongoing support

from Nippon Dragon.

OFFERING

Thermal fragmentation is an extraction process that has multiple benefits that aid mining

companies in solving many of the challenges they are confronted with today. The process

allows to quickly extract up to 110 cm wide veins with any type of hard rock within an accuracy

of 2cm. With such precision, high grade precious and base metal veins can now be extracted

virtually without dilution. It will significantly reduce costs, completely mechanises the operation

and reduce work related accidents, lessens the impact on the environment and extends mine

life and strengthens sustainability and project acceptance. The technology can also be

implemented in the civil engineering industry for developing tunnels and other underground

developments where the use of explosives are heavy.

PRESENT STATUS

The process of the technology was tested and produced ore in countries such as Australia,

Canada, Japan, Mexico, Peru, South Africa and the USA. It has successfully fragmented all

kind of hard rock and have the performance information that confirms the readiness of the

technology.

STRATEGY

a) Penetration

From an established network we wish to expand our presence in a variety of markets

globally. As such, we will employ the cash flow generated from gold production to

customise our approach and adapt it to the specifics of the respective mines and

territories.

b) Target Selection

We intend to invest up to $5M (USD) annually to research and explore targets

worldwide to select our future projects.

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c) R&D

The focus of making contributions to Nippon Dragon’s R&D department will be to

ensure that the company maintains its competitive edge and develop new applications.

d) Vault Secured and Trading Platform

Produced gold will be stored in secure vaults, managed under a blockchain system

where information & data will be open. Our value is will be proved by the amount of

physical gold we hold. A trading platform will be launched and placed, dedicated for

users to trade gold through our platforms and other platforms of third parties where the

services are offered.

FORECAST

a) Base scenario

Mining operations:

- Our aim is to bring as many projects into production as we can.

- Our plan for the first year is to bring 5 projects into production in Canada under a

join-venture we will form with Nippon Dragon.

- In our second year we will expand to develop 10 additional projects.

- In our third year our goal is to develop 10 additional projects across the world,

totalling up to 25 operating mines worldwide.

- An average of 3 dragons will be operating per project (mine). With 25 operating

mines, we will have a total of 75 dragons in operation.

- We have a set of certain requirements in which the potential project (the property)

must fulfill in order for us to consider mobilizing into the property to engage in

development and production.

• Requirements

o Significant amount of exploration work has been completed.

o Potential of producing over 20,000 gold ounces annually.

o Production Cost calculation of less than $600(USD) per ounce of gold

on average using the thermal unit.

FORWARD-LOOKING INFORMATION

This document contains forward-looking information. There can be no assurance that forward-

looking information will prove to be accurate, as actual results and future events could differ

marginally from those anticipated in these statements.

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TABLE OF CONTENTS

EXECUTIVE SUMMARY……...…………………………………………………….2

TABLE OF CONTENTS…...…………………………………………...……………5

BACKGROUND….……………………...…………………………………….………6

a) Mining has seen few changes since the invention of explosives………………6

b) Ever lower grades due to dilution and depletion of resources…………………7

c) Left over Resources are impressive………………………………………………7

d) Drill and blast mining method……………………………………………………...8

e) MGNA’s solutions…………..…………………………………………………9

UNMET MARKET NEED……….……………………………………………..10

VISION & MISSION……………………………………………………………10

OFFERING……………………………………………………………………..11

a) R-NSR (REVERSE NET STREAMING ROYALTY) MODEL…………………11

b) EXPERTISE………………………………………………………………………..12

STRATEGY……………………………………………………………………..12

a) PENETRATION STRATEGY……………………………………………..12

1. Establish acceptance and secure endorsement from mining specialists such as

engineers and geologists

2. Secure endorsement by various nation’s Natural Resources & Mining Ministries

3. Establish trials with influential partners

4. Meet jurisdictional specifics

5. Head office interaction to set targets and help to meet targets with jurisdictional

staff

6. Evaluate field-staff feedback and adjust offering

b) EXPANSION STRATEGY………………………………………………...13

1. Promote presence and visibility

2. Solicit referral business

3. Online presence

4. Demonstrations

5. Video in augmented and virtual reality

c) RESEARCH & DEVELOPMENT STRATEGY…………………………..14

d) HUMAN RESOURCES STRATEGY……………………………………..14

e) REGULATORY STRATEGY……………………………………………...14

f) VAULT SECURED AND TRADING PLATFORM ..…………………………….14

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FORECAST…………………………………………………………………….14

a) Base Scenario……………………………………………………………………..15

b) Projected Production……………………………………………………………...15

c) Use of Funds……………………………………………………………………….15

ACTION PLAN………………………………………………………………….16

a) What do we focus on and how we do it ………………………………………...16

b) Short-Medium Term Actions……………………………………………………...16

BACKGROUND

a) Mining has seen few changes since the invention of explosives

A hard rock mining operation is basically a business of creating openings of different sizes to

recover and/or access valued resources such as precious metals.

Most if not all the ‘easy gold/easy ore’ has been mined, the remaining high-grade ore is

situated within narrow-vein ore bodies that are difficult to mine profitably. Considering the

potential for huge cost overruns, mining companies tend to avoid these types of deposits.

Many mines are being shut down, leaving behind vast quantities of the much sought after

material. The ability to efficiently and profitably extract the mineralized ore will weigh heavily

in the capacity for several publicly trading mining companies to remain listed on their

respective stock exchanges.

Adding to this issue, the drill and blast method is the most widely used mining method and it

has been so for centuries. While other industries rapidly adapt with innovation and technology,

the mining industry seriously lags behind, which might just turn out to be the cause of their

early demise.

Innovation in the mining industry has been characterized by low R&D spending, antagonistic

supplier relationships, inward industry focus and a continuing trend towards fewer, larger,

longer-lived components. Even though the industry may have been able to continue

experiencing efficiency and productivity gains in the past, we seem to have reached the

pinnacle of current technologies. Indeed, bigger trucks and shovels represent an improvement

over smaller versions and deliver marginal cost and production benefits, but they still depend

on grossly wasteful energy conversion and human supervision at every stage.

Although technology can certainly improve operations in the mining field, its true benefits can

be realized when it is applied to a ‘’platform’’ approach that encompass all major phases of

the operation such as mine development, drilling and extracting, processing, transportation,

as well as the provision of utilities.

The depletion of known and renewable resources can no longer be extracted economically.

Experts estimate that the depletion of economical viable gold deposits around the globe will

happen in within the next 20 years.

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b) Ever lower grades due to dilution and depletion of resources

Precious metal mining is very challenging. Since the beginning of humanity, more than 70%

of all the gold and silver has been mined within the last 100 year alone. For many analysts

we have reached peak production in gold and already in decline with silver. As a good

example of how the resources are getting scarce, 1/3 of all the gold in the world has been

mined in South Africa. In the 70’s the country was producing over 1000 tonnes per year and

now that production has decreased to only 125 tonnes.

Approximately 90 million gold ounces are produced per year in the world and only 40 million

gold ounces are renewed, mostly in smaller deposits, with poor economical geology and often

located in risky political countries. The grade per tonne has fallen from 33g/t in 1890 to 8g/t

in 1980 and today stands at just under 1g/t. This trend has little place to go.

Transformation of the grades

20gr over 1meter30gr over 30cm

10gr over 2meter5gr over 2meter

6.7gr/tonne3.3gr/tonne

Reality Adjusted Reality At the Mill *

Drill & Blasting

Grades with the Thermal Fragmentation

Reality

20gr over 1meter30gr over 30cm

At the Mill

20gr/tonne30gr/tonne

* With drill and blast method 3 meter is the width they will extract

Grades are calculated on a width that agrees with the industry requirements and hides the

reality because the method employed produces too much dilution. Grades are the Holy Grail

in mining and it’s the main reason why the industry is struggling. Most of the exploration

discoveries in the past have been from surface without overburden which has made them

easier to find. Today, even if the exploration industry uses new technology, very few deposits

are discovered. The very risky nature of this business has significantly reduced the amount

of available capital needed to renew and maintain these finite resources. At this pace, fewer

mines will be in production within 20 years from now.

c) Left over resources are impressive

The world is not running out of precious metal resources, however that is not the case for

proven reserves that are only economical with drill and blast mining methods. For example,

one of the leading gold producer (name of the company undisclosed) with 64 million proven

ounces and 88 million ounces in other resource categories have plenty of gold. At a certain

gold price, with stable production costs and using drill and blast mining method, if we look at

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this company purely financially, it’s an annuity of maybe 6% for the next 20 years, then they

might have to close the company doors when they run out of proven reserves or be rescued

with much higher gold prices or produce something else. Their case is not unique as all major

producers face the same challenges. New discoveries are not going to make a difference, it

will simply extend their decline and pain.

With this perspective and their struggle to maintain small margins on their proven reserves,

the main philosophy in the industry over the last 30 years has been to mine larger deposits at

lower grades. Open-pit minded mentality has replaced underground mining for many reasons.

It’s the best way to achieve large production numbers in terms of ounces and it’s technically

easier to manage. But this business approach faces even greater challenges considering that

more and more countries, people and communities are against open-pit operations because

of issues like noise, pollution and the destruction of the environment.

The life of an open-pit operation is much shorter than underground operations and many large

open-pit operations will eventually need to go underground and will face bigger operational

risks. China is actually the biggest gold producer in the world and most of their gold mines are

open-pit and they will also need to go underground in the future, where our technology’s

demand should rise in the region.

d) Drill and blast mining method

The drill and blast mining method is the most wide spread ore extraction practice and is has

been so for centuries. The use of explosives is undoubtedly the most effective tool to exploit

large bulk-tonnage deposits and will remain so. With the use of electronic detonators and

computer modeling and assistance to increase control, large blasting has become a little more

efficient. Innovations for large scale mining operations are numerous and it explains why

open-pit is so desired.

Drill and blast mining method does not have the same appeal for underground mining

operations because the challenges are numerous and much bigger. The planning and the

development of an underground mine must often deal with dilution problems. The cut-off

grade is much more challenging in an underground operation versus an open pit because of

the dilution. The complexity of the geology such as pitch and swell, nugget effect and other

factors like seismic problems make the drill and blast mining method much more complex to

manage. Dilution is difficult to control, safety is compromised and development planning and

access to resources is problematic. That is the reason why they mine too many tonnes and

get lower grades at the mill, translating into lower returns on investment.

The mining industry has top-down thinking. Because they favor and value large tonnage

production to get as much precious metal production numbers as possible, they build bigger

mills and infrastructure to be able to reduce their costs to a minimum because of the dilution.

The fact that most of mine managers have their bonus correlated to the number of tonnes

produced keeps this vicious circle turning. For all these reasons, it is why today the only

valued deposits are those who can produce at least 100,000 ounces/year with a minimum of

1,000,000oz resource. Deposits that do not meet these trigger points have very low value and

for small surface deposits often seen in early stage exploration projects have almost no value

at all.

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e) MGNA’s solution

At MGNA, we envision a different approach in terms of the exploitation and management of

precious metal mining operations, more of a bottom-up thinking. The reason for this is

because the thermal fragmentation mining process is a useful tool for mining and transforms

the entire process. The premise is that if the technology could successfully extract a

predetermined width (vein) by fragmenting the rock it would reduce dilution and by reducing

dilution it would be possible to also significantly reduce mining costs. This process will

dislocate many well-held norms of the industry.

The process uses heat to extract ore. All hard rock has numerous micro fissures invisible to

the eye, by expanding these fissures with heat, the rock transforms into small fragments. The

fragments are recovered with the help of air pressure. We don’t burn, melt or modify the rock

with our process. A 15cm hole is enlarged to 110cm in few minutes. Over 80% of known

precious metal resources available are in mineralized structures of under 2 metres. With an

accuracy within 2cm, the process makes these remaining resources more attractive on

economic level. The thermal-effect fragments the hardest material first resulting in an oval

hole in the vein.

The thermal fragmentation is a tool to create precise openings faster, cheaper and without or

little use of explosives. Our technology reduces and controls costs in any hard rock

underground operation with any type of ore body and any dip angle. The results is that we

are able to track and retrieve 100% of the mineralized zone with very little dilution.

The thermal fragmentation process replaces:

- Room &Pillar method (flat or reef)

- Shrinkage method (manpower intensive)

- Small long hole method (dilution problems)

- Drop raising - Blind raising - Ventilation raising (primary and secondary)

- Drainage holes of 30 cm and more

- Vibration blasting control

- Perimeter blasting and stress reduction

- Drift cuts

- Ore recovery in drifting

- Ore pass/waste pass

- Emergency exits

Key benefits:

- Major dilution reduction (5:1 ratio approx.)

- Little or no wall damage caused by blast vibrations

- Significant cost savings related to ore handling and ore treatment (1-13 mm size

fragments)

- 2 person team per unit (efficiency)

- Green technology (500 tpd vs. 2,500 tpd)

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- Cash cost reduction (30%-60% approx.)

- Selective mining

- Mining permits obtained faster and easier

- Resources converted to reserves

- Extends mine life

- Safe working environment

- Strengthens Sustainability & Project Acceptance

Positive Green Impacts:

- Massive reduction in energy consumption and greenhouse gas emissions

- Significantly decreases environmental footprint

- Reduces the risk of environmental disasters

The thermal fragmentation mining process will appeal to all environmentalists, investors,

companies, governments, unions, employees and concerned citizens.

UNMET MARKET NEED

Comprehensive solutions to recover the remaining precious metal resources in high grade

narrow vein because of dilution control are quite rare because a consensus among geologists

and mining engineers is that drill and blast mining methods is the way to go. Our experience

confirms that the mining industry is interested in finding efficient & cost-effective methods that

are environmentally friendly to extract these remaining resources.

VISION & MISSION

MGNA’s mission is to offer a more efficient, safer and greener technology that will

replace the use of heavy explosives in hard rock mining and civil engineering. We are

here to save the industry, human lives and the environment.

The company intends to implement its R-NSR ‘Reverse Net Streaming Royalty’ model as an

innovative way to increase cash flow and positioning itself in a new ‘Niche’ market. The first

focuses on the numerous untapped high-grade narrow vein sections in current mining

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operations. The second focuses on exploration companies that own well defined high grade

narrow veins on surface. In both cases, MGNA would assume 100% of the costs and manage

the complete production process in return of a NSR.

The thermal fragmentation mining process allows micro surgical vein mining and is a

fast track way to low cost production on small undervalued ore bodies.

Acquiring and converting undervalued mining assets into high return cash flow generators is

also important part of the company’s growth strategy.

OFFERING

The Thermal Fragmentation Technology is a perfect tool to complement conventional hard

rock mining operations. Accurately and economically creating small or large openings quickly

without explosives is unique. Its numerous applications and flexibility makes it look like the

Swiss Knife of mining equipment.

a) R-NSR (REVERSE NET STREAMING ROYALTY) MODEL

In the mining world, one of the most valued business model is the one based on Royalties and

Streaming. Considering that these types of companies solely focus on resources that are

economical with drill and blast mining methods, a new ‘’niche’’ market is available to MGNA.

Our R-NSR model is a perfect complement to their business. The technology has no

competition because of our exclusive and patented mining process. We can even foresee

synergic and strategic alliances with all of the Royalty/Streaming Companies.

This business model is like a breath of fresh air for many exploration companies, closed mining

sites and it will help increase cash flow of many actual mining operations. With so many

possibilities, MGNA would select only the best projects to generate the highest cash flow.

The 5 steps of our R-NSR business model:

STEP 1 TARGET: High-grade surface deposits or underground mine amenable to our

mining process are leased (or sold) from the mine owner.

STEP 2 FUNDING: MGNA supplies the working capital and manages the ore extraction.

STEP 3 OPEX: MGNA pays for services and milling costs related to the operation.

STEP 4 EXTRACTION: The extracted ore is shipped to the mill.

STEP 5 PAYMENT: MGNA pays to the mine owner a net Royalty on ounces produced,

usually only 5% average. (*no royalty if the mine is sold to us)

b) EXPERTISE

MGNA’s team has closely worked with Nippon Dragon for many years and has developed and

accumulated an unquestionable level of expertise in fragmenting hard rock. The Company

has also developed a sizeable network of contacts internationally.

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STRATEGY

Our production operations and R-NSR model is the main part of our strategy as it will generate

significant cash flow, that will in turn, enable the company to become financially self-sufficient.

The creation of a technological showcase based on the R-NSR business model will clearly

demonstrate the impact of implementing the thermal fragmentation in low valued mining

assets that will surely lead many mining and exploration companies to rethink their operational

methods. We believe that the new generation of engineers and geologists will be excited by

the possibilities that our process has to offer to the mining industry.

a) PENETRATION STRATEGY

Considering that MGNA and Nippon Dragon together has partners in different parts of the

globe and its desire to pursue markets globally, the company needs to adhere to various types

of tactics:

1. Establish acceptance and secure endorsements from mining specialists such

as engineers and geologists

Mining engineers, are critically important to the approach and future success. Their

satisfaction has the potential to accelerate our expansion efforts.

2. Secure endorsement by various nation’s Natural Resources and Mining

Ministries

Government support will help our ability to receive acceptance in the industry of the country

we operate in. Significantly reducing environmental impacts; creating jobs; giving a safer

working environment for staffs; boosting the local economy; all of these are factors that

give us confidence in receiving great support from governments.

3. Establish trials with influential partners

In each region, an influential partner needs to be developed and kept extremely satisfied

in order for them to be viewed as a reference to increase acceptance.

4. Meet jurisdictional specifics

Each jurisdiction has its own fiduciary requirements to exist as an ongoing concern with

regulatory requirements and safety rules. It is important to understand the jurisdictional

context and to navigate within it successfully.

5. Head office interaction to set targets and help to meet targets with jurisdictional

staff

Managers and operators in each jurisdiction need to be trained and head office must take

an active role to support the operation. Partners and employees respond very positively to

having people from head office coming to visit and promote local efforts.

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6. Evaluate field staff feedback and adjust offering

Head office must have a clear picture of field staff feedback in order to make adjustments

to the offerings and maintain R&D so that MGNA and Nippon Dragon’s technology can

stay current and innovate effectively.

b) EXPANSION STRATEGY

Generally, expansion efforts centers on:

1. Promote presence and visibility

Presence and visibility includes attending and/or exhibiting at conferences and trade

shows, visiting prospect sites to update on efforts in other jurisdictions. ‘’Walking and

talking’’ is important and on continents such as Asia, it is critical. In America, presence

at mining trade show such as the PDAC, CIM and others is critical. Presence and

visibility leads to an increase in brand awareness and referral business.

2. Solicit referral business

The best promotion is to be recommended to a prospect through a trusted relationship.

3. Online presence

Our online presence will be revitalized with the creation of a new website and

reinforcement of our presence on social media. The new website will present a distinct

image of MGNA, with up-to-date information. The corporate website is the first place

a prospect will look for a visual of the company and to further investigate the offering.

It is thus strategically important for it to be current and representative of the message

we wish to disseminate. The site will also have some level of social media feed (blog)

which will give it life.

4. Demonstrations

The technological showcase, as experienced in the past is an extremely powerful

marketing tool for the company. It allows potential partners to attend a ‘live’

demonstration of the technology.

5. Video in augmented and virtual reality

The company plans to produce a series of augmented reality videos that will enable

investors and mining industry decision makers to view how the thermal fragmentation

process works. The reality of these AR/VR videos are incredible, they will immerse the

viewer into a virtual reality world that will include the design of a mine, production with

the thermal units, safety aspects and positive impacts the technology has on the

environment.

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c) RESEARCH & DEVELOPMENT STRATEGY

The primary focus within the R&D department is to assure that a competitive edge is

maintained. Hence the main priority is to increase effectiveness of the existing process

(lower fuel consumption, increased performance, etc.), the second priority is to develop

new applications for the civil engineering & construction industry.

Management is committed to delivering trouble free solutions for the technology and

assuring that that units are current in their functionality and appearance.

d) HUMAN RESOURCES STRATEGY

The company needs to invest to sustain production sales and operational efforts and

employ skilled employees to support, train and conduct follow ups for our operations.

This can also be achieved by partnering with local mining servicing companies and

contractors and mining equipment manufacturers & distributors to make sure we have all

the resources we need for our operations in each territory.

e) REGULATORY STRATEGY

Stringent mining laws and regulations are of key importance both for mine operators and

employees. The thermal units are CSA certified, it is of the upmost importance that the

company be proactive with regards to maintaining such certification.

f) VAULT SECURED & TRADING PLATFORM

Produced gold will be stored in secure vaults, managed under a blockchain system where

information & data will be open. Our value is will be proved by the amount of physical gold

we hold. A trading platform will be launched and placed, dedicated for users to trade gold

through our platforms and other platforms of third parties where the services are offered.

FORECAST

a) Base Scenario

Mining operations:

- Our aim is to bring as many projects into production as we can.

- Our plan for the first year is to bring 5 projects into production in Canada under a

join-venture we will form with Nippon Dragon.

- In our second year we will expand to develop 10 additional projects.

- In our third year our goal is to develop 10 additional projects across the world,

totalling up to 25 operating mines worldwide.

- An average of 3 dragons will be operating per project (mine). With 25 operating

mines, we will have a total of 75 dragons in operation.

- We have a set of certain requirements in which the potential project (the property)

must fulfill in order for us to consider mobilizing into the property to engage in

development and production.

• Requirements

o Significant amount of exploration work has been completed.

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o Potential of producing over 20,000 gold ounces annually.

o Production Cost calculation of less than $600(USD) per ounce of gold

on average using the thermal unit.

- Up to 20% of the produced gold will be stocked, kept as physical gold in a vault,

to secure company-value. Our goal is to secure the amount of physical gold with

the total value equivalent to the funds raised by the end of our 3rd year.

YEAR PRODUCTION PER DRAGON (ounces) PRODUCTION PHASE

1 9,000 1st Phase Production

2 20,000 Semi-Full Production

3 20,000 Semi-Full Production

4 25,000 Full Production

5 25,000 Full Production

Production

Phase↓

Ounces produced

per Dragon↓ YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

1st Phase 9,000 15 30 30 15 30

Semi-Full 20,000 15 45 60 30

Full 25,000 15 45

135,000 570,000 1,170,000 1,710,000 1,995,000

180,900,000$ 763,800,000$ 1,567,800,000$ 2,291,400,000$ 2,673,300,000$

$1,340

20% 27,000 114,000 234,000 342,000 399,000

36,180,000$ 152,760,000$ 313,560,000$ 458,280,000$ 534,660,000$

27,000 141,000 375,000 717,000 1,116,000

36,180,000$ 188,940,000$ 502,500,000$ 960,780,000$ 1,495,440,000$

TOTAL Gold Ounces Stocked:

TOTAL Value of Stocked Physical Gold:

Value of Stocked Physical Gold (of the year):

Number of

Dragons

Operating→

Total Ounces Produced:

Percentage of Ounces Stocked:

*USD Gold Price/Oz - April, 2018:

Total Value in USD:

Fund Raise – Target Number: 500,000,000 USD

Budget of 3 years to develop 25 gold mines and operate 75 Dragons within 3 years.

18M x25 mines 450M

300k x75 units 22.5M

5M/yr x3 years 15M

12.5M

500 Million USD

Use of Funds (USD)

Total:

Development Budget per Mine (project)

Dragon Manufacturing Cost

Target Selection Research Budget

Reserve Funds

Projected Annual Gold Production Per Dragon (Thermal Unit)

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ACTION PLAN

a) What do we focus on and how do we do it

Produce, Expand, Excel, Innovate, Sustain

• Production: It is imperative to meet the above stated base scenario forecasts

to generate strong cash flow using our technology and increase confidence

within the investment community by expanding our experienced management

team with regards to production. Micro management of multiple project tasks

will include an engineer, geologist and production manager experienced in

mining methods within high grade narrow vein structures will allow MGNA to

maintain tight controls over costs and other risks.

• Account Management: Success with our partners is critical since it leads to

repeat and referral business. As volume grows, we need to have internal

processes to monitor performance and be proactive in resolving any issues. A

more formalized approach to each operation’s geological database is

desirable.

• Business Development: The base scenario forecast calls for growth and this

must be achieved through sustained activities in business development.

MGNA will increase the revenue by continuously finding new targets. We intend

to target markets worldwide, starting with the Americas and Asia. MGNA will

continue to participate in strategically chosen trade show conferences.

• Project Investment: While our initial projects will grow the pipeline and

increase the top line, financial backing is necessary to generate additional

revenues in certain areas.

• Innovation & Creativity: The advancements in R&D and our ability to deliver

innovative failure-free products, is critically important to the survival, growth

and future competitive advantage of our business. The Company needs to

continue to find creative ways to finance projects, drive brand awareness and

develop targeted markets.

b) Short-Medium Term Actions

Within 4 months

• Revisit Roles and Responsibilities and adjust as necessary

• Brainstorm business plan

• Launch new website

• Select our targets for our pilot joint-venture project with Nippon Dragon.

• Mobilize into our first project and start development

• Determine viability of existing countries

• Select new production targets

Within 9 months

• Mobilize into 4 more projects and start development

• Start producing gold and generate revenue from our first project

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• Implement internal adjustments subsequent to Business Plan internal

consensus

• Continue to push ‘’scale-up’’ initiatives

• Determine viability of new country requirements

• Select new targets for our next expansion phase

• Open dialogue with mining engineers and geology universities

• Improve pro activeness in internal reporting

12-18 months

• 5 projects in production phase, generating revenue

• Expansion: Mobilize into 10 new projects and start development

• Continue to deliver on production projections

• Hire staffs worldwide

• Start selecting new targets worldwide to start planning our mobilization into 10

new projects as our global expansion plan

• Continue with business development and expansion activities