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BackGROUND

Smokey’s premium cured, wild Salmon and Tuna is obtained from only the finest

sashimi grade fillets and loins. Our fish have been bled, eviscerated, impeccably cleaned,

and then frozen immediately after being taken from the deep cold waters of the North

Pacific. In addition we also utilize and produce sashimi grade Big Eye and Yellow fin Tuna

loins at our fish facility located in the Marshall Islands within the Central Pacific. The loins

of these Tuna are specially cured and slow smoked with real Coconut Husk Chips, hand

packed with solid loin meat, and canned with fresh Virgin Coconut Water; providing a very

different, and exquisite taste treat. As much as possible, we utilize only those fish that have

been caught with Troll Lines from offshore fishing boats, and are at the peak of maturity,

and of a uniform sustainable size.

Smokey’s curing recipe has evolved over the past 35 years between our facility in the

Central Pacific, and in Corona, California. Through trial and error, and the tasting and fine

tuning of our secret ingredients, that together with our slow smoking methods using real

Alder and Hickory Wood, we have been successful in achieving a very unique, and smooth

smoked flavor that has no equal.

Smokey’s Real Smoked Seafood Products contain no preservatives, nor artificial

coloring. All of our fish are caught wild in the open ocean, and we never use a farmed or

cultured seafood product for Smoking or Canning. In addition, it would be intolerable for us

to even consider utilizing any Purse Seine (nets)caught Tuna. 2

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4 Fully Smoked Yellow Fin Tuna Ready For The Can & Retorting

5 Fully Smoked & Retorted 7oz. Can of Pacific Yellow Fin Tuna

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Smoking Wild Caught Sock Eye Salmon With Hickory Wood

7 Smoked Sock Eye Salmon Hand Packed Preparing for Retort

8 Smoked Yellow fin Tuna Ready to Eat with Crackers and Mayonnaise

9 Smokey & Jim Sealing Sample Smoked Salmon Cans For Retort

Three Sample 200g Cans of Smoked Tuna and Smoked Salmon 10

Funding Required to provide Pre-

Production Samples to viable

markets

1. Costs and Expenses to produce 3400 - 200g (7oz) Aluminum, Easy-Open cans of

Sockeye, Chinook, or Keta Salmon, and Albacore Tuna as marketing samples.

Costs

(a) 1000 lbs. of Raw Frozen Salmon ……… @$5.50 per lb. …………… $ 5,500

(b) 700 lbs. of Albacore Tuna Loins ………. @$6.50 per lb. …………… 4,550

(c) Shipping/Handling (to Corona, Ca) 1700 lbs. @ $.20 lb. ………….. 425

(d) Misc. Curing & Smoking supplies ……………………………………… 500

(e) 3 employees @ $2,000 each to cure, smoke & can 3400 samples ..$ 6,000

16,975

Total Investment Funding From Future Equity Partner…..(rnd to)….$20,000

Note:

We have sufficient supplies of cans to produce up to 10,000 cans of smoked product. We also have can sealing equipment, as well as smoking facilities to produce up to 100 to 150 cans of smoked product per day. It will take two to three weeks of curing, smoking, and canning to produce the 3400 sample cans.

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Costs to set-up smoked fish production

facilities in Rifle Colorado – 3 month Initial

start-up Period

1. Facility in Rifle, Colorado Costs

(a) Lease of land with one metal bldg., 80’ by 30’ … $850 per mon. X 12 = $ 2,550 (3 mon.)

(b) First & Last month rent with $1,000 deposit …. ……………………….. $ 2,700

(c) City Permit/License …….. Approximately ……………………………….. 300 yr.

(d) Water, Gas, Electric, Telephone, Liability Ins., etc., Approx. ………..…...$ 4,000 (3 mon.)

(e) Quarters for 6 employees – construction cost …………………………… 3,000

(f) Food supplies - $250 per mon., misc. utensils, blankets, etc. $800+750 1,550 (3 mon.)

(g) Walk-in Freezer/Reefer (used) Includes racks, shelves, etc. …………. 8,000

(h) Stainless Steel Fish Cutting Tables, (used) Misc. tools/knives, etc. ..... 6,000

(i) Two (used) Smokers with racks (500 lbs. cap. each) ……………………. 10,000

(j) Aprons, gloves, boots, etc., etc. …………………………………………….. 500

(k) Packing Boxes & shipping materials, includes “GiftPak” boxes ……… 5,000

(l ) Hand Trucks, one Forklift (used) ……………………………………………. 10,000

(m) One (used) Pick-up ……………………………………………………………. 15,000

2. Cost of Raw Frozen Fish Product

(a) Salmon (Sockeye, Chinook, Keta) @ av. $4.75 lb., 4,000 lbs …………… 19,000

(b) Albacore Tuna @ av. $4.50 lb., 5,000 lbs. ………………………………….. $ 18,000

3. (c) Reserves, Misc. ……………………………………………………… $10,000

Total Cost s for Facility & Intial Raw Product Supply (3 months) … $115,600

Start-up Capital Required (Includes Logistics & Personnel Costs

Of $52,350 for 3 mon. Period) …………………… $167, 950

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Logistics Marketing

personnel

1. Shipment of Raw Fish Product From Oregon, Washington, Vancouver

Costs

(a) First 3 months supply of Salmon ……… 4,000 lbs @ $.25 lb. .. $1.000

(b) “ “ “ Albacore Tuna . 5,000 lbs @ $.25 lb. .. 1,250

Truck Shipping Cost for Raw Frozen Fish ………………. $2,250

2. Personnel

(a) 3 Smoking/Canning Technicians @ $2,000 ea. Per mon. …. $6,000

(b) 1 Foreman @ $2,500 Per mon. …………………………………. $2,500

(c) 1 Office/Marketing Administrator @ $3,700 per mon. ……… $3,700

(d) 1 Overall Operations Manager @ $4,500 per mon. …………. $4,500

2A. Three Months Operations – Wages & Salaries … $16,700 x 3 = ..$50,100

Total Costs Logistics/personnel for initial 3 months …………$52,350

Cont. Next Slide

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Revenue Profit & Loss

1. Three Months Full Operations

( A. ) Gross Revenue From Sales Revenue

(a) Total of 18,000 200g cans (3 month)

(b) Sale of single cans in “high-End Markets”

(1) 5,000 cans of Smoked Sockeye Salmon @ $10.00 per can = $50,000

(2) 5,000 cans of Smoked Albacore Tuna @ $8.00 per can = $40,000

(c) Sale of Special SeaSnakPaks through Website/Custom Markets

(3) 4,000 single can Tuna or Salmon SeaSnakPak @ $15.00 ea. $60,000

(4) 4,000 cans for 2,000 double can SeaSnakPak @ $25.00 ea. $50,000

Total Gross Revenues Generated From Sales ……………… $200,000

Total Operating Costs & Expenses (not Including Taxes)… $167,550

3 Months Initial Net Profit (before Taxes) ………………. $37,450

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Three Year Revenue Assumption

We have a profound confidence in our Smoked Products that allows us to

forecast a continuous, intensified expansion, and the broadening of our

profitable revenue picture, over the next 3 years of operations.

We expect no downward level in the availability of our Raw Fish supplies for our

expanding markets. As a matter of fact we can expect a decided increase in the

supply of fish; especially Big Eye and Yellow Fin Tuna from the Central Pacific.

We will increase our use of more raw tuna from the Central Pacific as it is much

lower in overall costs then our Salmon or Albacore Tuna from the North Pacific

area.

It is also our sense that we must look to Asia for the “Upper Tiered Markets” that

will show-case the higher value-added quality of our premium, one of a kind,

smoked products. Once we gain a comfortable security, and a sound knowledge

of the upward predictability of our Asian Gourmet Markets; It is expected that we

will base the majority of our operations out of our processing facilities in the

Republic of the Marshall Islands.

For the interested Equity Partner Investor, it should be very plain that our

Smoked Seafood Products are not only a high profit commodity, but

extraordinarily expandable as well.

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Three year revenue profit &

loss

1. Final 9 months of 1st full year of Operations Costs

(a) 30,000 lbs of Raw Product purchased at an av. of $4.50 lb. …………….. $135,000

(b) Recurring Costs + 10% last 9 months of the year …………………………. 172,845

Total Costs during last 9 months of the year ……………………………. $307,845

(c) Gross Revenues on Sales of 60,000 cans – Revenues

(1) 40,000 cans of smoked Tuna & Salmon at av. $9.00 per can ………... $360,000

(2) 20,000 SeaSnakPaks at av. $20.00 per Pak ……………………………… 400,000

Total Gross Revenue during last 9 months of the year …………………. $760,000

Net Revenue at end of First Full Year of Operations (before taxes)

(Includes 1st three months Net Revenue of $37,450) … $797,450 Net Profit

2. Second Year of Operations (Rifle, Colorado) Revenues

(a) Gross Revenues on Sales of 180,000 cans of Tuna & Salmon (includes

35,000 SeaSnakPaks at av. of $25.00 per Pak (1,2,&3 can Paks) ………$ 875,000

(b) 125,000 single cans sold @ av. of $9.00 per can …………………………. 1,125,000

Total Gross Revenues 2nd full year of operations …………………… $2,880,000

(c) Recurring Costs + 10% during 2nd full year of operations ……………… $ 190,130

(d) Cost of 90,000 lbs of Salmon & Tuna @ av. of $4.50 lb. ………………… $ 405,000

$ 595,130

Total Net (before taxes) Revenues 2nd full year of operations $1,542,070 Net Profit

(Cont. On next slide)

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Third year profit & loss expanding

facilities in the Marshall Islands

1. Third Year of Smoked Seafood Production in Rifle, CO, and the Marshall Islands (RMI)

(a) Agenda Summary: begin partial operations during 3rd year, in RMI: $300,000 funding will be

advanced from 2nd year gross profits to start-up buying & processing facility in Majuro (RMI).

Sashimi grade Big Eye and Yellow Fin Tuna will be purchased from selected Japanese vessels when arriving in port to refuel, etc. These fish will be from 60 to 120 lb size (which is below the size desired by the fishing vessel). We would pay about $1.00 to $2.00 per lb. for these fish. Later we would expand our operation by providing our own vessel(s) to catch and transport fish purchased in the Outer Islands, and caught by the local fishermen.

(b) Combined Gross Revenue on Sales of 225,000cans of Tuna & Salmon (Includes 75,000 SeaSnakPaks @ av. of $25.00 per Pak (1,2,3 can Paks) Gross Revenue ….. $1,875,000

(c) Sales of 150,000 single cans sold at av. of $9.00 ea. Gross Revenue……..$1,350,000

Probable Sale of 30,000 cans Smoked Big Eye Tuna @ $10.00 ea. (RMI) …$ 300,000

Total Combined (Rifle & RMI) Gross Revenues 3rd year $3,525,000

(d) Recurring Costs + 10% in Rifle during 3rd year production …………………. $ 209,143

(e) Costs of 112,500 lbs. Raw Fish @ $4.50 per lb. ………………………………… $ 506,250

(e) Start-up costs in RMI – Implementing Facility + limited production costs… .$ 300,000

Total Combined Costs during 3nd year ………………………… $1,015,393

Total Combined Net Revenue 3nd year…………………………. $2,509,607

Note: Big Eye & Yellow Fin Tuna will be smoked with real Coconut Husk Chips and canned with pure Coconut water. In the RMI - Revenue Tax is only 3%, and wages/salary tax is only 12%.

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Fresh Big Eye Tuna Loin From The Marshall Islands on Sale In Sam’s Club – Corona, California

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