Falcon isle resources deck-team v6-final 5-4-20 (2nd round)

www.sertechexchange.com
High-grade Organic
Phosphate for
Agricultural and
Medical Cannabis
Industry
Certified Organic
by OMRI, WSDA,
and CDFA

Project Highlights
2
1. The highest grade (total and available P) phosphate deposits in USA – premium product
5. Fully permitted, and in full operations to mine 70,000t exposed outcropping
2. Achieved organic fertilizer certification by (OMRI, WSDA, CDFA) – High margin market growing at 10-15% p.a.
3. Excellent logistical position in Central Utah to serve the entire US (West Coast and Mid West, the key organic
fertilizer markets)
4. Low cost operation and very simple processing required (only fine grinding, drying and bagging)
6. Fully operational with orders processing and shipping started in May 2020

We develop and process the highest quality organic
phosphate fertilizer in the US, helping to meet the worlds
rising demand in organic fertilizer, high-welfare animal feed
and hydroponic organic nutrients
3

www.sertechexchange.com 4
Organic Phosphate Market Key Notes
The US organic food market is growing
at double digit rates annually (10% to
15%) with increase demand for organic
dry and liquid fertilizers required to
help meet this growth.
Organic agriculture/food
animal feed and hydroponic
markets markets provide a
significant sales premium.
Phosphate is one of three
primary crop nutrients
required for all plant
growth. There are no
substitutes for phosphate.
Falcon Isle’s high quality
organically certified phosphate is
an essential ingredient for the
Organic Agriculture Fertilizer
Market.
1
2 3

Sector Problems
USDA requires all
organic food to be
grown with organically
certified fertilizers.
Legalized cannabis will
require tighter quality
controls and greater
demand for organically
certified product.
A shortage of organic soil
inputs prevent farmers
from satisfying the rising
demand for organic food
and medical cannabis.
Existing US rock phosphate
suppliers only offer low grade
material- Available 3% P205.
Existing US rock phosphate
have heavy metal issues,
restricting their organic
certification.
High cost per P-value
(amount of Available
Phosphate per ton)
Higher demand for Micronized
Fertilizers required for
hydroponic farming.
5

Solution
Falcon Isle
PhosAgri Organic
Fertilizer
Total P205 percentage
averaging
28%
An Available
guaranteed P205
percentage of
14%
3x higher than any
other organic rock
phosphate in the
United States
6

Solution
Fine grinding and micronization of PhosAgri will allow
us to capitalize on both the regular organic markets and
the major growth in hydroponics.
PhosAgri, is the lowest price rock phosphate in North
America, per “P”.
Based in Utah, Falcon Isle is centrally located to distribute to
key organic markets in both the west coast and mid-west.
7

Solution
PhosAgri has very low heavy metal impurities, which has allowed it to be
organically certified by all three key certification agencies
8

Organic fertilizer manufactures create
custom fertilizer blends specific for
various crop and soil conditions. These
complex blends provide broad
utilization, allowing for a pricing
premium and attractive margins.
ORGANIC FERTILIZER
MANUFACTURERS
Target Markets and Customers
The high-grade, low impurities and
organic certification of the Falcon Isle
phosphate fertilizer allow for its use as
a direct to soil organic application in
bulk or 50 lb bags for smaller farmers
and retailers.
DIRECT APPLICATION
ORGANIC DISTRIBUTION
Amazon, Home Depot Garden
Supply and Lowes Garden Supply
LARGE RETAIL
9

PRICE
PER “P” LEVEL $.95 $2.55 $3.33 $1.55 $5.83
LOCATION/
PROXIMITY Utah Canada Tennessee Idaho Florida
QUALITY
AVAILABLE
P205%
14% 7% 3% 3% 3%
Competition
9

Logistical Position
9
Top 10 states
by farm sales
Sales
($bn)
CA 2.4
WA 0.6
PA 0.3
OR 0.3
WI 0.2
NY 0.2
TX 0.2
MI 0.2
CO 0.1
AZ 0.1
53% of
organic farm
sales

The Importance of Phosphate in Cannabis
Phosphate is a vital nutrient required by cannabis plants that fulfills many
important biological functions that results in:
Reduced growth cycle given the
explosive growth produced by a fast root
development. The grower can start the bloom
stage of plants much earlier, thus reducing the
total time required to harvest the cannabis crop
Improved yields and
quality of buds and
seeds
An essential nutrient for
cannabis plants to perform the
different metabolic processes –
such as photosynthesis
Improves Bloom for
better flower
development.
12

Historic Phosphate Resource Estimates:
Southern Section
11.0 million tons of indicated resources (1983)
 60,000 tons previously stripped /exposed
 3,887,500 tons surface mineable (1979)
 3,044,000 tons underground mineable (1953)
Northern Section
12.0 million tons of inferred resources (1983)
4.0 million tons surface mineable (1983)
13

Proposed Production
Falcon Isle began
production on the
Falcon Isle Phosphate
Project in the third
quarter of 2019 priced
at $260 p/t FOB
Initial production is
focused on the
exposed phosphate
material where there
is approximately
70,000 tons of
exposed organically
certified phosphate
rock.
Following the removal
of material from this
area, additional
production will focus
on near surface
estimated historic
resource of
approximately
7.0 million tons.

Process
Surface Mining
Extraction
Rough
Crushing
Fine Micro-
Grinding
Packaging in 1
Ton Tote Gags

Project Development and Production
Falcon Isle’s business plan involves the use
of third-party consultants, third party
mining contractors and third-party
processing facilities.
The use of outside contractors allows Falcon
Isle to move more quickly into operations
and minimize up front capital required to
expedite production and sales.
Falcon Isle’s contractors will provide and
maintain all the necessary equipment for the
operations including all of the heavy machinery
for the extraction, crushing, grinding and
transportation throughout the entire extraction,
processing and transportation operation.
16

Strengths and
Competitive Advantages Strong and experienced management,
and consultant team including Stantec
Engineering.
Near term cash flow from sales to top tier
organic fertilizer manufacturers and distributors,
including Scotts Miracle-Gro, Foster Farmers
Organic Fertilizer, Growers Secret, and more
Location – market and infrastructure
close, centrally located in Utah
Product well positioned for growth in rapidly
expanding organic agriculture/food and
medical cannabis market
14

Strengths and
Competitive Advantages Existing 70,000 tons of surface
exposed high-grade organic rock
phosphate material remaining from
prior operations
Strong double-digit growth in the
organic food and cannabis market,
10% to 15% annually
OMRI, WSDA and CDFA organic
certification for organic fertilizer.
Low capital and operating costs with
the use of third-party contractors and
consultants
70,000
tons
15

CEO - R. Shawn Hilda
is an experienced and seasoned executive who has launched and operated companies with
international expansion in the fields of Natural Resource Assets, Construction, Manufacturing,
Real Estate Development, Financial Management and Investment.
Serving as President and CEO of Falcon Isle Resources, Inc., Carlton Tate Group, LLC and
Caymus Capital International, LLC, Shawn Heldas’ diversified expertise has allowed these
companies to successfully expand into projects nationally and internationally.
Shawn is a licensed general contractor in 5 states plus Guam.
Shawn graduated with a Bachelor of Science Degree from the
Architecture School of Design at Arizona State University with
a minor in Marketing.
R. Shawn Helda

Stantec Engineering
Greg has over 20 years in the mining and process industry and has lived or worked
in Canada, Mongolia, Mexico, Germany, and India as well as the United States. He
has served in a variety of technical and operating positions during his industry
experience, including production engineering, project management, and field-level
project coordination, as well as working in coal, aggregate, and hard rock
processing facilities.
Greg Gillian
EDUCATION
• B.S., Mining Engineering,
Minerals Processing Option,
Pennsylvania State
University, University Park,
Pennsylvania, 1999
CERTIFICATIONS & TRAINING
CERTIFICATIONS
& TRAINING
• Qualified Professional,
Mining & Metallurgical
Society of America, Boulder,
Colorado, 2018 Engineer in
Training, 1999
• Certified Surface Foreman,
Virginia, 2004
MEMBERSHIPS
• Board of Directors,
National Mining
Association Board of
Directors, Utah Mining
Association
• Member, Society for
Mining, Metallurgy, and
Exploration
Certified Mining Engineer

Stantec Engineering
Larry Henchel brings 40 years of exploration, mine geology, mineral
property evaluation and project management expertise to his project
teams. He has worked in numerous positions throughout his career,
including field geologist, mine geologist, regional exploration manager,
project manager and consultant. His prior employment with mine
operators gives him the hands-on experience that provides an
understanding of geological considerations critical to successful mining
ventures. Larry’s significant international experience includes Canada,
India, Mongolia, Colombia, the Middle East and southern Africa, which
has brought insight into mine development environments throughout the
world. His multi-commodity base covers much of the mining industry’s
resources, including coal, oil shale, bituminous sand, phosphate, potash,
mineral brine, uranium and iron ore deposits. Larry has authored and co-
authored numerous Technical Reports on mineral properties for clients,
submitted to major international securities markets including the
Toronto, New York, Australian and Hong Kong exchanges.
Larry Henchel
EDUCATION
• B.Sc. Geology, Saint
Lawrence University,
Canton, New York, 1978
Certified Geologist
REGISTRATIONS
• Professional Geologist,
Association of Professional
Engineers and Geoscientists
of Alberta
• Professional Geologist,
State of Utah
MEMBERSHIPS
• Registered Member, Society
for Mining, Metallurgy, and
Exploration

Logan Simpson
Jim is a lawyer, certified environmental planner and public
administrator who has worked in state and local government,
as well as for private entities and clients. He has advised local
government clients on planning and land use matters,
managed federal environmental assessment and natural
resource planning projects, and provided staff support to a
non-profit, multi-interest corporation that conducts
performance reviews of state oil and gas regulatory programs.
Jim directed the Utah Division of Oil, Gas, and Mining and has
chaired and served on state and interstate natural resource
and regulatory boards and commissions. He was the City
Attorney of Park City, Utah for six years; has privately
practiced public lands, natural resources, and water law; and
has worked as a BLM land law examiner, minerals permitting
specialist, and exploration and engineering geologist.
James Carter
Boards and
Commissions:
• Past Chair of the Westminster
College Alumni Board, Chair of
the Henry's Fork Foundation
Board, Chair of the Holladay
Planning Commission, Member
of the Friends of Great Salt
Lake Advisory Board
• Past City Attorney of Park City,
minerals permitting specialist,
National Environmental Policy
Act (NEPA) planning and
documentation. Past Chair of
the Westminster College
Alumni Board, Chair of the
Henry's Fork Foundation Board.
Certified Environmental Planning Firm

Prepared for Falcon Isle Resources, Inc.
50 West Broadway Suite 150
Salt Lake City, UT 84101
801-337-1644
shawn.helda@falconisleresources.com
www.falconisleresources.com

Falcon isle resources deck-team v6-final 5-4-20 (2nd round)

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