BUSINESS PLAN

CRYSTAL MINING CORPORATION

20380 Stevens Creek Blvd. Suite 108, Cupertino, CA 95014 Tel. #: 386-479-5823 Email: crystalminingcorp@gmail.com

Web: www.crystalminingcorp.com

I. TABLE OF CONTENTS

I II III IV V VI VII VIII IX X XI XII

Table of Contents.. Forward Looking Statements Executive Summary. General Company Description.. Products and Services. Marketing Plan Operational Plan Management and Organization. Personal Finances.. Start Up Expenses and Capitalization.. Financial Planning. Appendices..
Table 1. Estimated Gold Ore Production.. Figure 1. Pictures of Machines and Equipment to be used. Figure 2. Typical Flow Chart of Gold Ore Process.. Table 2. List of Machines and Equipment Needed (Conversion rate 1 USD = PhP 45).. Table 3. Chamber of Mines of the Philippines operating in Mindanao.. Figure 3. Map of Davao Province. Table 4. Mining Industry Statistics>> Table 5. Metallic Mineral Production. Table 6. Philippine Gold Production Comparison

2 3 4 4 7 8 13 15 17 18 18 25 25 25 27 27 28 29 30 31 32

II. FORWARD - LOOKING STATEMENTS This presentation contains certain statements that may constitute forward-looking statements within the meaning of Section 21E of the United States Securities and Exchange Commission Act of 1934 and a forward looking information within the meaning applicable securities legislation. All statement in this presentation, other than the statement of historical fact, that address events or developments that the Company expect to occur, are forward looking statements. Forward looking statements that are not historical facts and are generally, but not always, identified by words expects, plans, anticipates, believes, intends, estimates, projects, potential, suggests, and similar expressions, or that events or conditions will, would, may, could, or should, occur. Forward-looking statement in this presentation includes statements regarding the timing and nature of future exploration programs and projections, which are, in part, dependent on results from those exploration programs. Forward looking statements involved known and unknown risks, uncertainties, assumptions, and other factors, that may cause the actual results, performance or achievements express or implied by the forward-looking statements. These statements are based on a number of assumptions based on the general market conditions, timing and receipts of regulatory approvals, the ability of the Company and other relevant parties to satisfy regulatory requirements, the availability of financing for proposed transactions and programs on reasonable terms, and the ability of third-party service providers to deliver services in a timely manner. Factors that could cause the actual result to differ materially from those in forward-looking statements include market prices, results of exploration, availability of capital and financing on acceptable terms, inability to obtain required regulatory approvals, and market conditions and general business, economic, competitive, political and social conditions. Although the Company has attempted to identify important factors that could cause actual results to differ from those express or implied in forward-looking statements, there maybe other factors which cause actual results to differ. Accordingly, readers should not place undue reliance on forward-looking statements. Forward-looking statements contained herein are made as of the date of this presentation, and the Company disclaims any obligation to update these forward-looking statements, whether as a result of new information, future event or results, or otherwise, except as required by applicable securities laws. The description of this presentation zone does not intend to imply that any economically estimates of reserves or resources exist on the proposal. Similarly, although projected features of the presentation are interpreted to show similarities of nearby processing plant owned by third parties, this should not be interpreted to mean that the processing plant has, or that it will, generate similar outcome. Significant steps have to be undertaken to fully understand before any meaningful resource calculation can be completed.

III. THE EXECUTIVE SUMMARY When I wrote down this summary in the middle of September, gold then was valued at $1,270.00 per troy ounce (31.10gms). With gold prices trending up, there has never been a much exciting time for me and CRYSTAL MINING CORPORATION to invest in the gold industry business. Gold for the past decades has remained the most stable investment EVER; dating back more than 10 years ago when gold was only $300.00 per ounce. With the current recession in the United States and around the globe, there is only one projection for gold to follow and that is UP. It has been projected that starting next year gold prices will be valued at $1,500.00 per troy ounce and will eventually go up as high as $2000/troy ounces by year end 2012. And that is why we, at CRYSTAL MINING CORPORATION has fully committed ourselves to succeed in making this company a leader in gold mining industry in the next 5 years. We will cautiously start the construction of our first gold ore processing plant starting March 2011 with a target completion date by June 30, 2011. Region 11 (Davao and Compostela Valley), Philippines has been chosen due to the fact that gold mining has been ongoing since the 1980s and has been known as the gold center in the country. To date more than 326,084.68 kilos has been mined with aggregate total of more than 13 trillion dollars in todays value. This organization is seeking a financial investment of $500,000.00 from various private entities who are interested in the Gold Mining Industry. It is expected and projected that Capitalization would be paid back in 15 months or less from initial operation of the plant and that companys debt would be nil by then. Sales revenue would reach more than $ 1,000,000.00 by December 2012. Profits are presented below to further understand the business opportunity and how as an investor generally able to capitalize and capture a higher Return on Investment (ROI). IV. GENERAL COMPANY DESCRIPTION

The Philippines is situated along a well-defined belt of volcanoes called the Circum-Pacific Rim of Fire where the process of volcanism and plate convergence resulted in the formation of abundant and important metallic mineral deposits of gold, copper, iron, chromite, nickel, cobalt and platinum. The Philippines is considered as one of the countries most endowed with metallic resources in the world with over $1 Trillion untapped mineral deposits; once fully developed would be ten times its annual Gross Domestic Product (GDP). The country has overwhelming trilliondollar resources. The Philippines ranks in the top 6 for gold, nickel, copper and chromite and has the potential to be top 10 largest mining power in the world. While the country has enormous untapped resources, only 1.4% of about 9 million hectares of land, identifies as having rich mineral deposits, have been explored and covered by mining permits.

Common metallic minerals extracted in the Philippines: CATEGORY Precious Metals Base Metals Iron & Ferro-Alloy Metals MINERALS Gold Silver Copper Nickel Chromite % OF TOTAL VALUE** 48.07 0.26 6.78 16.36 0.12

** based on 2008 Gross Production Value of USD 1.84 Billion

Market Opportunities 2008 total exports of minerals & mineral products: $2,482 million Export destination countries: Hong Kong, China, Australia, Japan and other trading partners in Asia, North America and Europe Concentrate off-take negotiations Philippine Advantages
Natural Resources

9 million hectares are high potential sites for copper, gold, nickel and chromite Only 1.4% covered by mining permits Ore reserves: ORE Gold Copper Nickel Chromite Iron Aluminum 2005 RESERVES MT 3,056,947,159 2,968,064,616 953,670,162 18,744,685 410,637,010 292,010,410

CRYSTAL MINING CORPORATION is a newly established venture company whose main objective is to process, explore, and mine valuable gold. Incorporated in the United States on October 07, 2010, the company is set to launch in the Philippines its first gold mining processing plant by March 2011. Negotiations and dialogues at the moment have been ongoing with a Chinese counterpart to supply needed machineries in processing these gold ores.

Our mission is simple: To be a leader in the exploration, production and processing of gold by providing the highest quality of service using the most advance technology, with high grade of efficiency at the most competitive price. Our Goal is straightforward: Phase I Project a. To build CRYSTAL MINING PROCESSING PLANT for the processing of gold ore by March 2011 within 20 to 30 km radius of Tagum City, Philippines, known as the center of gold trading. b. To be able to process a minimum but not limited to 10,000MT (metric tons=1000kg) of gold ore during the first year of operation beginning upon completion of Crystal Mining Processing Plant by June 2011. Phase II Project a. Increase company gold ore processing capacity rate to a minimum but not limited to 15,000 MT (metric tons) by the first quarter of 2012. b. Explore additional 1 to 2 tenement sites for gold production within the second and third quarter of 2011 at Region 11, Philippines. Phase III Project a. To be able to secure, extract and process its own gold by July 2012 to at least 2 tenement sites with minimum but not limited to an annual gold production capacity of 5000 troy ounces (1 troy oz=31.1034gms). b. Expand gold exploration drilling sites to achieve minable gold reserves of more than 30,000 troy ounces and be able to increase gold production but not limited to 7,50010,000 troy ounces starting January 2013. c. Double extraction capacity of gold ore to 30,000MT per annum by 2013.

CRYSTAL MINING CORPORATION believes that customer satisfaction is a valuable tool in providing small scale miners the needed extraction rate for gold ore. In region 11, roughly 40,000 small scale miners have been accounted with 26,876 registered at the provincial capitol of Davao. Of the 40,000 small scale miners, fourteen thousand (14,000+) plus unregistered are unaccounted and beyond the guise of the governments detection. According to the report, 322,512MT daily productions in gold ore is being mined from registered miners alone not accounting the bulk of production produced by the unregistered small scale miners. Previous year registered a total of 117,716,880MT annual gold ore production had been mined within Region 11 (Table 1).

The demand in processing these gold ores is so high that according to small scale miners themselves, they have to wait more than a month before processing their ore into pure gold. The amount of gold ores to process are in abundance and the backlog is long enough, that small scale miners are willing to pay additional fee ranging from 15% to 30% on top of the actual processing cost to speed up its production time. With the introduction of highly sophisticated machineries, Crystal Mining Corporation will be positioned better against local competition that currently manufactures gold mining equipment with 70-80% extraction rate. With Mr. Marlove F. Socorros skills and experience with these machineries, plus his invaluable presence in the area, would greatly serve as an important asset in stirring the company towards the right direction in fulfilling our visions and goals to the fullest. CRYSTAL MINING CORPORATION has chosen Nevada as its primary base due to its friendly atmosphere for investors. Among which are the following:

No Corporate Income Tax No Taxes on Corporate Shares No Franchise Tax No Personal Income Tax No I.R.S. Information Sharing Agreement Nominal Annual Fees Minimal Reporting and Disclosure Requirements Stockholders are not Public Record

V. PRODUCT AND SERVICES

Extraction of gold from an ore is of vital importance for business especially when you are classified as small scale miners (miners with investment less than $1M and do not use detonations, and large machineries). The higher the extraction rate is, the higher the likelihood that they will avail services from gold processing plant that have the highest extraction capacity rate. For them, building a processing plant is somewhat a surmountable project to accomplish. Recent survey in the region has shown that majority of the processing plants in nearby towns of Tagum City, Davao Oriental, Compostela Valley, Davao del Norte have an extraction capacity rate of only 70-80% for 95% of the 11,287 existing plants. Majority of the miners are using locally manufactured products and machineries that use less sophisticated technology. Crystal Mining Corporation machineries will address this need and will be able to offer small scale miners an alternative extraction capacity rate far superior than what the current trend is. With current extraction capacity rate of 98% efficiency, and minimal wastage, Crystal Mining Plant will set a new trend in becoming the new force in gold

ore processing in the area and beyond. Competition will be present without a doubt, but with the existing waiting period time of one (1) month or more before any gold ore from small scale miners can be processed, Crystal Mining Corporation has more than enough to process and will definitely be a better alternative than majority of the existing players. The demand is so high that our annual production goal of 10,000MT minimum would hardly touch the current backlog time and overall market in general. Crystal Mining Plant will consist of the following: Jaw Crusher, Cone Ball Mill, Conveyor, Vibration Feeder, Ore Bins, Cyclone, DSM, Leaching tanks, Slurry pump, Steel balls, Structure (office/laboratory) and a GenSet

VI. MARKETING PLAN

According to the data released by Davao Provincial Government Mining Bureau; Region 11, Davao, Philippines annual gold ore processing accounts for 117,716,880 metric tons for large and small scale miners. The data also included 11,287 existing processing plant with a total of 26,876 registered small scale miners with about 14,000 plus unregistered and unaccounted. Philippine Metallic Mineral Production as from January to June of 2010 produced a total of 18,865 kilos of gold amounting to almost $700M. The data further compare previous year production of 16,875 kilos which is about 12% growth rate year to year bi-annual report.

MGB Metallic Mineral Production Of the 117,716,880 metric tons gold ore mined in 2009, CRYSTAL MINING CORPORATION will aggressively grab less than 1.5% of the small miners market which is around 65 million metric tons with a minimum targeted annual production capacity rate of 10,000 metric tons. For the last six (6) years since former president Gloria Macapagal Arroyo opened Philippines as mining haven, the Department of Environment and Natural Resources (DENR) data has shown that production in gold ore has steadily grown an average of 10-15% per year. It has been projected that in the next 5 years an average of 10-15% will be experienced as more and more gold mining companies are signing up for gold mining activity. Apex Mining (28% owned by Canadian firm), North Davao Mining Corporation, Cadan Resources Corporation (40% Canadian owned), Philsaga Mining Corporation and Asiaticus Management Corporations are among the companies operating within the region. Table 3 shows the Chamber of Mines in the Philippines operating in Mindanao. This is a huge opportunity to pass, hence CRYSTAL MINING CORPORATION was formed to address the growing needs and demand in the Region and beyond. Even though initial capital cost is quiet substantial in terms during the start up phase, projections has been made to turn the company into profitability within 15 months or less. Marketing the company as a new force in gold ore processing would not be a big problem considering that small scale miners will always look for a much better extraction rate and therefore clientele acceptance and company recognition would be easy.

CRYSTAL MINING CORPORATION has adopted the latest technology in gold ore extraction and is poised to capture the needed 30 ton per day minimum goal. The Jaw crusher alone will be able to crush gold ore in a rapid sequence with immense crushing power devouring anything into pieces. With average 10 tons per hour capacity, it will ensure the CRYSTAL MINING PLANTS ability to catch up production under downtime circumstances and other need to basis. To date Marlove F. Socorro is trying to secure a contract from small scale miners who will be interested in processing their gold ore at the highest extraction rate. On the other hand, our Chinese counterpart has already submitted their price quotations for the machineries to be delivered at CIF prices. Once financing is funded we will then proceed with the procurement of the listed machineries. Skilled and experienced chemist, expert engineers whose competency in their own field is without question would be hired during the operation with the rest of the employees to be at least high school graduates as their credentials. Government taxation mandates that all company involve in mining will be charge a value added tax of fifteen (15%) percent on all gold mining activities. These percentages will then be charged to the miners which will be added to the $70.00 processing fee per metric tons of gold ore.
PRODUCT

CRYSTAL MINING PLANT will offer excellent services to the small scale miners continuously, day to day, year round according to the contract. The product itself involves architecturally designed, structured plant to make sure that work flow is free from discrepancies, inadequacies and anomalies. Once a customer realized that Crystal Mining Processing Plant has one of the highest extraction rate capacity, a paradigm shift will be experienced in which small scale miners themselves will be lining up to have their gold process at our processing plant. They would understand the value of having a higher extraction rate i.e., higher return on their investment and more money in their pockets.

CRYSTAL MINING PLANT ADVANTAGES AND BENEFITS

FEATURES 98% Extraction Capacity Rate for Gold Ore Jaw crusher capacity 10 ton/hr 24/7 working plant

ADVANTAGE Beats majority of the competition

BENEFITS More monetary unit for the miners.

Enables to speed up Guaranteed production will production when necessary be finish as scheduled Continued job performance Guaranteed delivery of gold on time

Security Driven Imported and sophisticated machineries

Stable working environment High level of customer with minimal disruption satisfaction and assurances Minimal down time Continued production and services

CUSTOMERS Small scale miners shall be our main target groups of clientele. These miners will be the one responsible with the mining of gold ore themselves. Our job is to facilitate faster production of their gold ore. Once their gold ore arrives at our facility, a coordinator will assist them in an orderly manner beginning with right receiving up to disposal and markings of their gold ores. Deliveries will be in 20 tonnage size trucks with proper coordination ahead of time to lessen and minimize traffic congestion within the perimeter. Customers usually send their own security to watch over their gold ore and making sure that in the end, there will be no gold anomalies. As part of our companys service of transparency, video cameras and cctv monitors will be installed around the vicinity during processing period to enhance fair and balance at all levels with our core customers. In addition a laboratory assay will be conducted prior to processing the gold ores, this is done to ensure a fair and square processing results.

COMPETITION

Large groups of gold mining industry process their own mine; therefore our major competition would be small scale miners themselves who already have existing plants in the area. Since the major breakthrough in gold ore extraction has been rated at 98%; only less than 2% of the small scale miners have upgraded using this advance technology. This will be a great opportunity for Crystal Mining Corporation to seize these favorable circumstances and the timing has never been this precise and more exact. Delivery of gold ore to our sites would be a challenge and the company has proposed of up to fifteen (15) days backlog job processing shall be accepted. Contracts from small scale miners would be needed to secure the continuous processing of gold ore on a daily bases. Roads to our site must be accessible and large enough to accommodate traffic for heavy trucks during delivery. A center for customers shall be established for waiting time with television and drinks readily available. For all services rendered, there would be a no refund policy. A thorough prepayment agreement will be printed and agreed upon before any services can be started.

10

NICHE

Without a doubt the 98% extraction capacity rate would be the driving force for CRYSTAL MINING CORPORATION. This feature will serve as a beacon for small miners to harvest their labor using the highest quality of gold extractor there is. The rarity of this idiosyncrasy or feature within the area, will serve immensely advantageous for CRYSTAL MINING PLANT and its machineries in pivoting and positioning our company as the NEW FORCE and LEADER in the extraction of gold ore industry.

STRATEGY AND PROMOTION Prior to building and completion of CRYSTAL MINING PLANT, contracts for securing the 30MT/day capacity would be signed before its first foundation is even laid. This will be accomplished by spreading the information through direct meeting with the small scale mining owners themselves and at the same time dissemination of information through leaflet sampling. Rough terrain and mountainous site will be encountered while conducting and scouting our clienteles and it is a must that a reliable 4x4 vehicle shall be leased/purchased. Advertising using the local paper and media will be a need be process. A logo design will be made after the incorporation. Business cards and letterhead will follow thereafter. Upon signing a 2 to 5 year contract with our clients, a tour to the plant will be offered after the completion of CRYSTAL MINING PLANT to make sure that our clienteles will feel secure and protected for their vested interest and that their business is ours as well. We want to project an image of business professionals who look after their own success. CRYSTAL MINING CORPORATION will further serve its clients as a trusted ally, providing them with excellent service reliably and with utmost transparency.

Promotional Budget:

Transportation/Gas Leaflets Business Cards/Letterheads Total Promotional Expenses

$ 33,333.00 500.00 300.00 $ 34,133.00

PRICING

In gold ore production, current processing fee is standard; however, several miners or investors who does not operate or have their own processing plant are willing and

11

prepared to add up additional 15 to 30% on top of the existing processing fee. Proposed pricing shall be $ 70.00 per MT with $ 80.00 per MT as secondary price depending on the demand and needs of clienteles. Such steps and/or decisions of the miners are done to ensure that there would be continued liquidity of finances for operational purposes. This is also done internally with the processing plant for certainty that ores are processed on time. Services and extraction rate capability will play as the most important aspect in our plant. Miners at times doesnt mind high processing fee as long as their ores are processed on time and with highest extraction rate possible.

PROPOSED LOCATION

Location for Crystal Mining Plant shall be chosen according to proximity location from small scale miners. Viability of transportation roads and electricity as well as water utilities shall be considered in order to run the company with ease. The plan is to have this site within proximity of competition thereby increasing its visibility to would be customers. Convenient parking spaces shall be provided to accommodate large and small vehicle enough for the operation. DISTRIBUTION CHANNELS CRYSTAL MINING CORPORATION has set to operate one mining site for now contingent to the needs of the area. Mr. Marlove F. Socorro and the upcoming Assistant Manager shall be in charge of the direct acquisition of clienteles. Our services shall be available for small scale miners within and in nearby areas . Contracts shall be signed accordingly per our companys by laws and regulations in agreement with our clienteles.

SALES FORECAST

Sales of CRYSTAL MINING CORPORATION for the first year of operation shall be from the Contract between the company and the Small Scale Miners. It is expected and targeted that 30Metric tons a day of Gold Ore shall be processed with $70-$80 dollar shall be charged as service fee.

12

QUARTERLY SALES PROJECTION (July 2011-September, 2011)

Month of Operation

At $70.00 per Metric Ton $58,380 $58,380 $58,380 $175,140.00

At $80.00 per Metric Ton $66,720 $66,720 $66,720 $200,160.00

Sales Ranges

1. July 2. August 3. September Quarter Total:

$58,380-66,720 $58,380-66,720 $58,380-66,720 $175,140-$200,160

ANNUAL SALES PROJECTION (July 01, 2011 - June 30, 2012) Description At $70.00 per Metric Ton $700,000.00 At $80.00 per Metric Ton $800,000.00 Sales Ranges

Annual operation

$700,000-$800,000

VII. OPERATIONAL PLAN Once CRYSTAL MINING PLANT is completed before June 30, 2011, we will conduct a series of test of its machineries for optimal functioning before any services from our clienteles shall be accepted. Operation and dry run shall begin July 01, 2011 and shall operate 24/7, Sunday to Saturday, 365 days, with two allotted days reserve every month for maintenance and downtime. Production: Products will be delivered to the plant using a 20 tonner capacity truck in a 40 to 50kg used sack container. Processing will be done on a first come first served basis.

13

Prior and before processing is done, assay analysis will be conducted (for a fee) to ensure clients of fair processing and give them idea of how much amount of gold is to be expected. As mentioned above, we can make the operation 5 days a week 24hrs operation or an option to operate during weekends as the need and circumstances dictates. Location: Site location will be established near the center of trading for customers convenience. An area not less than 1 hectare and no more than 2 hectares will be leased approximately 20 to 30 km radius of Tagum City. Electricity should be readily available and roads should be passable to big trucks. The plant will consist of the processing plant itself with minimum of 3 CIP tanks, mini laboratory for assay analysis, firing area, mini office, provision for canteen and the large portion will be allotted for stockyard. Perimeter fence will cover the whole plant for security purposes using tin sheets roofing.

Legal Environment: Barangay permits, municipal permits, Building permits (for plant construction) and ECC (Environmental Compliance Certificate from DENR) are the basic documents needed before construction approval. Other business permits will be needed upon application of the above mentioned requirements. We will out-source the preparation of the above mentioned requirements. Normally, and based on our interview and research, it will take 30 to 60 days processing of these requirements MONTHLY PERSONNEL SALARY Manpower General Worker Supervisor Asst. Mgr Engineer Chemist Security General Manager Qty 12 6 1 1 1 4 1 Unit Price 178.00 267.00 667.00 556.00 667.00 178.00 1,000.00 Total Price 2,136.00 1,602.00 667.00 556.00 667.00 712.00 1,000.00

Total

26

3,513.00

7,340.00

14

QUARTERLY PERSONNEL SALARY PROJECTION

Total Number of Personnel 26

Amount in Dollar $22,020

ANNUAL PERSONNEL SALARY PROJECTION

Total Number of Personnel 26

Amount in Dollar $88,080.00

General workers need not be graduates. All of them will engage in manual labor so they need to be strong and physically fit Supervisor- should have at least experience in the processing of ore or have worked in a processing plant before Asst Manager College grad and loyalty should be unquestionable Engineer Electrical is the competence Chemist Knowledge in basic assay and routine analysis

VIII. MANAGEMENT AND ORGANIZATION SYLVESTRE C. YGAY IV President and Board Member

Graduated at University of Perpetual as Bachelors Degree and consistent Deans Lister in 1993, President senior batch. Joined Bristol Myers Squibb in 1996 as Territory Manager and an awardee of Rookie of the Year having achieved more than 150% YTD performance during his first year stint with the company. As a pharmaceutical representative and territory manager, he was a consistent performer that made him become a member of Elite Performers within Bristol Myers Squibb known as Presidential Awardee for having consistently achieved a Year to Date performance of more than 100% for more than 3 consecutive years. Former Owner and General Store Manager of La Pharmacia 1999. A small company involved in buying and selling of pharmaceutical products both wholesale and retail merchandise.

15

Currently a Registered nurse with Charge Nurse Position at Kaiser Permanente, Santa Clara. Superintendent and Head representative of The Church of God (7th day) Salinas, CA. Married to a devoted and lovely wife Josephine with three (3) beautiful children namely Matt, Sophia, and Sam. MARLOVE F. SOCORRO Country Manager/Plant Manager and Chairman of the Board

Graduated at the University of the Philippines Los Banos with a Degree of Bachelor of Science in Agriculture in 1996 Currently handles the position of a Business Development Officer for a local company engaged in the sales of various Mining equipment and design and construction of Processing Plant in Mindanao Area. Hired by the Petbowe Group of Companies in 2007 in the capacity of Sales Manager. As the head of the newly established business unit, was expected to develop and design methods and systems to increase product line thereby opening new opportunities for the company and the business unit. He is likewise responsible for the formulation, development, execution and maintenance of marketing strategies, organizational planning strategies and market research. He identified and developed other farm input products thus, increasing company product line and creating new market opportunities to various areas and territory. Further, he developed and executed creative marketing ideas that ultimately meet company objectives and/or goals. Revised company guidelines regarding credit policies and implemented thru gradual conversion of credit-terms to cash basis for all new customers. Also joined Ajinomoto Philippines Corporation in 1999 as the Chief Agriculturist of the company. Developed and implemented strategic promotional activities both shortterm and long-term propaganda for product awareness in the market. He was consistently awarded an annual evaluation of a VERY SATISFACTORY rating from the first year of service until closure of the company. Awarded and granted by Ajinomoto Philippines Corporation through the Japan International Cooperation Agency (JICA) a technical training in Japan regarding EXPERIMENTAL CULTIVATION AND FERTILIZER APPLICATION TECHNIQUES FOR SUGARCANE. A record holder in the company having a 1,400+% increase in sales in the assigned territory during the first year of service. Member in good standing of the National Range Officers Institute in the Philippines as Chief Range Officer and the Philippine Practical Shooting Association Married to Weng with only 1 child Clarissa Denise

16

ADONIS T. ALAGASI Asst Manager Graduated at the University of the Philippines at Los Banos with the Degree of Bachelor of Science in Agriculture in 1996 Currently holds a position of Business Manager- South Luzon Area at Bioseed AgroChemicals. Vacant Electrical Engineer Competence in Electrical Vacant Chemist Competence in Assay and routine Analysis

IX. PERSONAL FINANCES

SYLVESTRE C. YGAY IV As of ending 2009 W-4, Mr. Sylvestre C. Ygay IV has filled a joint annual gross income of $165,000.00 with his wife Josephine R. Ygay. He currently owns GMC Yukon 2003 and Honda Odyssey 2001. His wife currently in school for Associate degree in nursing and is expected to finish by 2013. The rest of personal finance shall be divulged upon request. MARLOVE F. SOCORRO Spouses Marlove F. Socorro and Lowena N. Socorro registered an annual income for 2009 amounting to $ 73,989.34. They were both then engage in the operation of a convenience store in Dasmarinas City Cavite where a separate house and lot is also located. Currently, his spouse is managing and operating a restaurant in Davao City. All relevant and pertinent information such as other properties and bank finances shall be divulged upon request

17

X. START UP EXPENSES AND CAPITALIZATION CRYSTAL MINING CORPORATION is at the Pre-Construction Phase of its financial project preposition. Since planning this strategic concept, the following expenses had been incurred as listed below and it is expected that half of the allotted $500,000 investment capitalization would be needed before any operation would be started. Financial Meetings for potential investors will be conducted in a series of business presentations and meetings. Capitalization shall be a very important aspect in raising the first half, if not all of its needed projection amount. PRE-CONSTRUCTION PHASE (October-December 2010)

Registration and Paper works Financial Statement and Bookkeeping Survey and On-site view Transportation Procurement Land Lease (6 months advance payment) Leaflets/Ads Miscellaneous/Contingency (20%) TOTAL EXPENSES YTD EXPENSES ENDING DEC 2010 XI. FINANCIAL PLANNING

3,500.00 500.00 5,000.00 33,333.00 2,000.00 500.00 8,300.00 53,133.00 53,133.00

$ $

CRYSTAL MINING CORPORATIONS goal financially is to settle its debt as quickly as possible in record time and provide a positive cash flow. Keeping a healthy and strong financial balance to its shareholders is of utmost importance. The following data below illustrates how we are going to meticulously accomplish this. All processing services as explained previously would not be process unless payment is made ahead of time. Any advance payment of services provided by the company shall be accepted within specified time frame as stipulated in the contract between Crystal Mining Corporation and its clienteles. Machineries will be paid half ahead as well as construction with the rest of the outstanding balances be paid upon completion or delivery.

18

ACQUISITION PHASE (January 2011-March 2011) Equipment and Machineries Down payment/(+Electrical
Transformer)

Construction Planning and Design /Structure Leaflets Business Cards Miscellaneous /Contingency (20%) TOTAL EXPENSES PLUS: CARRY OVER EXPENSES FROM YTD 2010 TOTAL EXPENSES TO DATE $ $

76,889.00 22,222.00 500.00 300.00 19,982.00 119,893.00 53,133.00 173,026.00

CONSTRUCTION PHASE (April 2011-June 2011)

Construction Process Manpower Orientation & Training Financial Report Expenses Miscellaneous Expenses TOTAL EXPENSES TOTAL YTD EXPENSES

22,222.00 7,338.00 500.00 6,912.00 36,972.00 209,998.00

$ $

OPERATIONAL PHASE (July 2011-September 2011)

Equipment and Machineries other half payment Materials Expenses (Chemicals,Maint,Electricity, Comm,
Food/Entertainment, Diesel)

76,889.00 32,235.00 22,014.00 1,000.00 900.00

Manpower Expenses Transportation Expenses Rental Expenses TOTAL EXPENSES YTD EXPENSES $ $

133,038.00 343,036.00

19

RUNNING PHASE (October-December 2011)

Material Expenses (Monthly budget x 3) Manpower Expenses Exploration Expenses Transportation Expenses Rental Expenses TOTAL EXPENSES YTD EXPENSES

32,235.00 22,014.00 20,000.00 1,000.00 900.00 76,149.00 419,185.00

$ $

MONTHLY BREAKDOWN OF EXPENSES DURING THE OPERATION (EXCLUSIVE OF MONTHLY TAXES)

Manpower General Worker Supervisor Asst. Mgr Engineer Chemist Security General Manager Subtotal Materials, Maintenance Expenses Diesel Gas (liters) Electricity Communication Chemicals Maintenance Food/Entertainment Subtotal Transportation Rental Expenses TOTAL MONTHLY EXPENSES

Qty 12 6 1 1 1 4 1 26

Unit Price 178.00 267.00 667.00 556.00 667.00 178.00 1,000.00 3,513.00 $

Total Price 2,136.00 1,602.00 667.00 556.00 667.00 712.00 1,000.00 7,340.00

650 1 1 1 1 1 $

520.00 3,334.00 445.00 2,667.00 2,223.00 1,556.00 10,745.00 1,000.00 300.00

19,385.00

20

SALES FORECAST VS EXPENDITURES MONTHLY SALES FORECAST VS EXPENDITURES TARGET: 834MT $70.00 SALES EXPENSES(Monthly Expenses + 12% Tax from Sales) POTENTIAL INCOME 58,380.00 26,391.00 31,989.00 $80.00 66,720.00 27,391.00 39,329.00

QUARTERLY SALES FORECAST VS EXPENDITURES TARGET: 2500MT $70.00 SALES EXPENSES (Monthly Expenses + 12% Tax from Sales) POTENTIAL INCOME 175,000.00 79,155.00 95,845.00 $80.00 200,000.00 82,155.00 117,845.00

ANNUAL SALES FORECAST VS. EXPENDITURES TARGET: 10,000 MT $70.00 SALES EXPENSES (Monthly Expenses + 12% Tax from Sales) POTENTIAL INCOME 700,000.00 316,620.00 383,380.00 $80.00 800,000.00 328,620.00 471,380.00

Above data has shown that CRYSTAL MINING CORPORATION projected sales forecast vs. expenditures enables the company to pay capital investment by record breaking of (15) months using the $70/MT valuation for sales revenue commencing July 2011. Its expansion plan to increase processing capacity rate to 15,000MT by January 2012, would decrease its liabilities settlement by less than 12 months. Financial assistance is needed at this point to

21

extend terms of agreement into a 3-5 year period or more in order to maximize its ability to expand and grow into multi-million dollar revenue generating company by 2012 and beyond.

CRYSTAL MINING CORPORATION has aggressively plan to increase its gold ore processing capacity to a minimum of 15,000MT per annum starting January 2012, a 50% increase capacity. Considering the enormousity of the market, this future production is only peg at 2% fraction of the total market share. The following data below would be the potential generating income and expenditure projections. Material expenditures would increase by about 50% amounting to $16,118.00 per month, however, manpower will only increased by 20% or less amounting to $8,808.00 per month. Upgrade on the continuous ball mill and acquisition of 2 additional CIP tanks will be of prime priority in order to achieve a 50MT capacity rate or more per day with. This will allow the company to accept more contracts in a more harmonious fashion with ability to function at 72MT/day at full capacity. This will ensure CRYSTAL MINING PLANT to finish its contract in record time all the time.

2012 MONTHLY SALES FORECAST VS EXPENDITURE TARGET:1250MT $70.00 SALES EXPENSES (Monthly Expenses + 12% Tax from Sales) POTENTIAL INCOME 87,500.00 36,726.00 50,774.00 $80.00 100,000.00 38,226.00 61,774.00

2012 QUARTERLY SALES FORECAST VS. EXPENDITURES TARGET: 3,750 MT $70.00 SALES EXPENSES (Monthly Expenses + 12% Tax from Sales) POTENTIAL INCOME 262,500.00 110,177.00 152,323.00 $80.00 300,000.00 114,677.00 185,323.00

22

ANNUAL SALES FORECAST VS EXPENDITURES ENDING DECEMBER 31,2012 TARGET: 15,000MT $70.00 SALES EXPENSES (Monthly Expenses + 12% Tax from Sales) POTENTIAL INCOME 1,050,000.00 440,706.00 609,294.00 $80.00 1,200,000.00 458,706.00 741,294.00

THE BREAK EVEN ANALYSIS DATA

The following data analysis below depicts a picture of CRYSTAL MINING CORPORATIONS ability to reach a break even point. Considering that initial production will commence July 2011, it is expected that by the end of March 2012, the company will be able to provide a positive cash flow amounting to $83,128.00 quarter ending by then. Payments for loan shall be dependent upon the amount of interest we will incur during the process. BREAK EVEN DATA ANALYSIS JULY 2011-SEPT.2011 SALES REVENUE LESS: YTD EXPENSES YTD PROFIT LOSS (YPL) BREAK EVEN DATA ANALYSIS OCT.2011-DEC.2011 SALES REVENUE LESS: YPL JULY-SEPT.11 + YTD EXPENSES (OCT-DEC. 11) 244,195.00 YTD PROFIT LOSS (YPL) (69,195.00) 175,000.00 175,000.00

343,046.00 (168,046.00)

23

BREAK EVEN DATA ANALYSIS JAN- MARCH 2012 SALES REVENUE LESS: YPL OCT-DEC 11 + YTD EXPENSES PER QTR 2012 179,372.00 YTD PROFIT (POSITIVE CASH FLOW) 83,128.00 262,500.00

BREAK EVEN ANALYSIS APRIL-JUNE 2012 SALES REVENUE CASH FLOW LESS: YTD EXPENSES ANNUAL INTEREST AT 10% YTD Profit 110,177.00 50,000.00 160,177.00 185,451.00 262,500.00 83,128.00 345,628.00

These break even analyses data shows that CRYSTAL MINING CORPORATION will definitely able to post a positive profit within fifteen (15) months or less from the day of operation. It is expected that $185,451.00 will be achieved from henceforth as positive cash flow and it is expected that by the end December 2012 profit of $490,097.00 or more ($185,451.00+$152,323.00 3Q12+$152,323.00 4Q12) will be realized and that company will be debt free

Legend: Sales Expenses/Loss Profit/Income

24

XI. APPENDICES Table 1. Estimated Gold Ore Production

Area Coverage No of small miners Ave Daily Ore Production (tons) Total Daily Production Existing Processing Plant Potential Client Miners

Ore

Region 11

26,876

12

322,512

11,287

15,589

187,068

Total Annual Ore Production Available Ore

117,716,880 68,279,820

tons of ore tons of ore

Figure 1. Pictures of Machines and Equipment to be used

Jaw Crusher model PE 200x300 (10tons/hour)

Cone Ball Mill YMQ 900x2100 (1 1.5tons/hour)

Conveyor with Belt TD 500x9000

Vibration Feeder GZ3

25

Cyclone

CIP/Leaching Tanks (12x16)

GenSet (Cummins 100 Kva)

26

Figure 2. Typical Flow Chart of Gold Ore Process

Table 2. List of Machines and Equipment Needed (Conversion rate 1 USD = PhP 45)

Description Ball mill Jaw Crusher Conveyor Compressor Vibration Feeder Ore Bins Cyclone DSM Leaching Tank Slurry Pump Steel Ball Generator Structure Electrical (100 KVA Transformer) Service Vehicle (brand new) Contingency

Model YMQ900x2100 PE200x300 TD500x9000 90CFM SZ300 30 ton local local

100 kva

Quantity 1 1 2 1 1 2 1 1 3 1 4000 1 1 1 1 1

Unit Price 31,111.11 6,222.22 3,111.11 2,333.33 3,555.56 2,000.00 1,555.56 1,222.22 12,222.22 3,555.56 1.56 17,777.78 subtotal 44,444.44 33,333.33 33,333.33 22,222.22 subtotal TOTAL

Amount USD 31,111.11 6,222.22 6,222.22 2,333.33 3,555.56 4,000.00 1,555.56 1,222.22 36,666.67 3,555.56 6,222.22 17,777.78 $ 120,444.44 44,444.44 33,333.33 33,333.33 22,222.22 133,333.33 253,777.78

4x4

$ $

27

Table 3. Chamber of Mines of the Philippines operating in Mindanao

CHAMBER OF MINES OF THE PHILIPPINES

Room 809 Ortigas Bldg., Ortigas Avenue, Pasig City 1605 Philippines * Tel.Nos. (632) 635-4123 to 24; 635-4159*Fax No.:(632) 635-4160 * E-mail:comp@pldtdsl.net * Website: http://www.chamberofmines.com.ph
DIRECTORY OF MEMBERS Company and Minesite Location Address Tel. No(s). 812-9784 892-6611 892-9401 816-1346 812-1380 752-0717 E-Mail Address Products Copper, gold, silver and nickel Copper, gold, silver, nickel

REGULAR MEMBERS
1 Asiaticus Management Corp. (Davao Oriental) (Australia) 255 Chino Roces Avenue, Makati City

Benguet Corporation (Baguio, Zambales, Bataan, Davao & Apayao)

7/F Universal Re Bldg., corner Perea St., 106 Paseo De Roxas, Makati City

Philsaga Mining Corp. (Davao and Agusan Del Sur)

Duratrak Compound, JP Laurel Ave. Bajada, Davao City

(082) 222-8046 (082) 221-0121 (082) 222-1096 867-8086 810-0111 848-2199 706-2803 to 06 706-2804

saga@philsagamining.com

Gold

ASSOCIATE MEMBERS - METALLIC (Exploration Companies)

1 Apex Mining Co., Inc. (Compostela Valley, Davao)(UK) Indophil Services International Pty. Ltd. (Leyte, Camarines Norte, Davao, Dumaguete) (Australia) Unit 1704 17th Flr. Prestige Tower Condominium, Emerald Ave. Ortigas Center, Pasig City 3rd Level, L&F Bldg. ,107 Aguirre St., Legaspi Village, Makati City Gold & Silver

752-1440 to 43 752-1446

Gold, copper & all other minerals

Philippine Mining Development Corporation (Davao)

Unit 2904-B, West Tower, Philippine Stock Exchange Centre, Ortigas Center, Pasig City

706-1630 to 38 706-1630 to 31

info@pmdc.com.ph

Gold & copper

PROFESSIONAL MEMBERS
1 Mindanao Assn. of Mining Engineers (MAEM) Lybird St., Del Rosario Heights Subd., Lanang, Davao City (082) 233-2859 (082) 233-2859

28

Figure 3. Map of Davao Province

29

Table 4. Mining Industry Statistics as of March 2010 (Source: Mines and Geosciences Bureau official website at http://www.mgb.gov.ph/

30

Table 5. Metallic Mineral Production Comparison (Jan June 2009 vs. Jan June 2010)

PHILIPPINE METALLIC MINERAL PRODUCTION

January-June 2010 vs. January-June 2009
As of August 2010
Mineral Commodity Unit Used JAN-JUN, 2010 Quantity Value 31,287,345,738 30,773,119,719 514,226,019 18,539,443,792 7,385,933,297 3,947,626,000 JAN-JUN, 2009 Quantity Value 22,565,646,716 22,288,764,680 276,882,036 10,360,183,456 4,332,028,724 3,618,895,000 % Change Qty Value 39 38 86 79 70 9

PRECIOUS METALS Gold Silver BASE METALS Copper Concentrate Copper Metal Equivalent Nickel Concentrate Nickel Content of Concentrate Nickel Direct Shipping Ore Nickel Content of Ore *Total Nickel Content of Ore & Concentrate Chromite Zinc TOTAL

KGS. KGS.

18,865 20,192

16,875 14,644

12 38

DMT MT DMT MT DMT MT MT DMT DMT

110,532 27,397 14,444 8,203 5,435,162 69,889 78,091 5,882 8,992

87,687 21,362 12,890 7,119 2,984,793 59,966 67,085

26 28 12 15 82 17

6,963,215,207

2,237,931,201

211

49,674,105 192,995,182 49,826,789,530

5,528 10,659

49,029,039 122,299,492 32,925,830,172

6 (16)

1 58 51

Source: Website: www.denr.gov.ph Department of Natural Resources- Mines and Geosciences Bureau http://www.mgb.gov.ph

31

Table 6. Philippine Gold Production (Jan June 2009 vs. Jan June 2010) PHILIPPINE GOLD PRODUCTION
Quantity: In kilograms Value: In Philippine Peso Name Of Producer PRIMARY PRODUCERS Philippine Gold Processing & Refining Corporation/FILMINER A Philsaga Mining Corp Lepanto Cons. Mining Corporation APEX Mining Comp Inc. Benguet Corporation Johnson Gold Mining Corporation Lepanto Cons. Mining Corporation Various Small Scale Mines (SSM) based on Purchases of Bangko Sentral Ng Pilipinas SECONDARY PRODUCERS Philex Mining Corp. Rapu-Rapu Processing Inc./Rapu Rapu Minerals Inc. TVI Resources Dev't Phil. Inc. Carmen Copper Corporation TOTAL Project Name Qty JAN-JUN, 2010 Value 27,424,683,159 4,107,668,303 Qty JAN - JUN, 2009 Value 19,112,693,754 470,764,236 % Change Qty Value 17 657 43 773

Masbate Gold Project

16,731 2,479

14,342 327

Banahaw Gold Project Victoria Gold Project APEX Maco Operation Acupan Contract Mining Project Paracale Gold Project Teresa Gold Project Gold Purchases of BSP from SSM*

1,559 358 353 41 13 0 11,929

2,728,478,891 607,650,859 594,830,516 68,899,491 16,592,286 0 19,300,562,813

896 460 265 31 15 56 12,293

1,284,493,342 649,301,043 374,800,375 43,199,554 17,170,703 79,109,514 16,193,854,987

74 (22) 33 32 (14)

112 (6) 59 59 (3)

(3)

19

2,134 Padcal Copper Project Rapu-Rapu Polymetallic Project Canatuan Mining Project Toledo Copper Project 1,590 326

3,348,436,560 2,454,926,462 523,227,084

2,533 2,030 292

3,176,070,926 2,584,201,421 292,791,874

(16) (22) 12

5 (5) 79

111 107 18,865

191,224,973 179,058,040 30,773,119,719

82 129 16,875

113,043,743 186,033,889 22,288,764,680

36 (18) 12

69 (4) 38

*Less purchases from Acupan SSM Project, Banahaw Gold Project and Diwalwal Projects

Source: Website: www.denr.gov.ph Department of Natural Resources- Mines and Geosciences Bureau http://www.mgb.gov.ph

32