3/30/18

Regarding the Fund’s Performance in February 2018

I want to take this opportunity to add more detail regarding the Fund’s February
2018 performance. First of all while I am obviously disappointed in how February
ended I am not discouraged. As the Fund's largest stakeholder,(directly and
through our family’s charitable trust), no one wants a big investment return more
than I do. The frustrating part is the waiting and that wait becomes even more
excruciating when you see the whole panoply of catalysts swirling about.
One part that is important to understand is that the Fund's largest holding now
is a gold mining ETF,(exchange traded fund), that has been particularly volatile as
it has bounced now several times from its recent lows. The Fund owns more than
130,000 shares of this security. Here are some price points that will give you some
color on the nature of how the Fund's results have been jumping all over the map:

• Dec 12, 2017 $24.55

• Dec 29, 2017 $31.79
• Jan 16, 2018 $36.15
• Jan 24, 2018 $37.00
• Jan 31, 2018 $31.36
• Feb 9, 2018 $23.01
• Feb 15, 2018 $29.00
• Feb 28, 2018 $22.75

The Fund’s performance is measured on the last day of each month, so

how our numbers stack up is literally a function right now of largely the gyrations of
that one security. That volatility is very hard to stomach but we do so because we

1 Silicon Valley | British Virgin Islands | www.CoronaCap.com

are convinced that this is the security that will deliver the kind of epic return we are
striving for. In August of 2016, this same security traded at $170 and we rode it all
the way from January of that year when it was $19 all the way to $150 when we
sold every share we had. When it came back down that fall we initiated a brand
new position, slowly at first but then as it kept coming down lower and lower and
lower we kept of buying until it became the very out-sized position that it is today.
This ETF is a leveraged play on a whole basket of publicly traded gold miners so
the price changes in the security represents a leveraged expression of the price
changes in the aggregate of that whole basket of gold mining stocks that
comprises it. We chose that vehicle because we wanted to diversify out the
specific operating or business risk of any one company plus we wanted the
leverage of capturing the next upswing in that group which we believe is now at
hand.
The reason I am so convinced about what is coming is two fold: firstly gold
and gold stocks are negatively correlated to the general market. As the general
market went to absurd heights last year, the gold and gold mining equities were
disgorged by the public at large in the most aggressive manner ever which created
these historically low prices we see. The tables now are turning and I believe we
are at the very beginning of a historic rout for stocks and as this money flees it will
seek both safety and anything that has upward momentum. The reality of human
nature is that people buy most when things are going up and they sell most when
things go down, so the rotation from every bubble asset into gold is only now
beginning as this rout gathers momentum. Meanwhile the miners themselves are
doing extremely well in the business of mining,(low energy input costs and a rising
gold price have doubled the operating margins for this group to on average more
than $400 per ounce of gold mined);imagine how well they will do as gold breaks
out of the narrow range it has been in for almost three years and starts to head
back to its 2011 highs of $1900. This too will happen and the result will be an

2 Silicon Valley | British Virgin Islands | www.CoronaCap.com

explosive move in the gold miners akin to what happened in 2016 and perhaps
even better. The best moves are always those that occur from the bottom and to
catch that you need to stomach the volatility which is what we are doing and
enduring. I firmly believe our patience and frustration will be amply rewarded and
this week I am taking steps to personally add an additional $100,000 to the Fund.

We are in this to win and I wanted to give you this more detailed explanation
of what February's numbers were all about. My beliefs and enthusiasm for the
opportunity at hand has not changed1.

Best wishes,

John Scurci

Partner and Chief Investment Officer

Corona Associates Capital Management, LLC

1Legal Disclaimer - Attention: The information contained herein is confidential and is intended
solely for the use of the intended recipient. Access, copying, distribution or re-use of this letter
by any other person is not authorized. If you are not the intended recipient please advise the
sender immediately and destroy all copies of this letter. Nothing presented herein should be
deemed to constitute a recommendation or an offer to sell any investment product. This letter
contains forward looking statements, as defined by SEC Regulation D, and the Investment Act
of 1940, which are the original ideas and best judgments of the authors. The conclusions
expressed herein are not guaranteed, and past performance is not predictive of future results.
Circular 230 Notice: Any written advice provided herein (and in any attachments) is not intended
or written to be used, and cannot be used, to avoid any penalty under the Internal Revenue
Code or to promote, market, or recommend to anyone, a transaction or matter addressed

3 Silicon Valley | British Virgin Islands | www.CoronaCap.com