Introduction & The Opportunity 3 The Diamond Market Today 12

2. Introduction & The Opportunity 3 • The Diamond Market Today 12 • Markets unlocked by the MONEDIAMTMUNiT 21 • The problem being solved 24 • Additional Market Insights 32 • Conclusion 38 This document is the property of MoneDiam LLC and contains proprietary information. All information presented is strictly confidential. No information as to the contents or subject matter of this document or any part thereof arising directly or indirectly there from shall be given orally, in writing or in any fashion whatsoever, communicated in any manner to any third party, being an individual, firm or company or any employee thereof without written prior consent from MoneDiam LLC

3. Introduction & The Opportunity Creating and exploiting a natural diamond standardised trading UNiT. Diamonds.....

4. MONEDIAMTM DEFINITION Pronounced: mo-nay-dee-am MONEDIAMTMis an alternative asset class that delivers an investment platform for global markets in the form of a paper currency • Until now, diamonds have been traded on a willing buyer, willing seller basis with no prevailing price to underpin the base standard. MONEDIAMTM is breaking frontiers by developing the first standard that will support an underpin or spot price.

5. WHAT IS MONEDIAMTM What The MONEDIAMUNiT is a fungible diamond investment instrument that contains 10 polished diamonds, a precise selection encased in a highly secure card, introducing a standard unit of value based on the intrinsic aggregate value of this selection of polished diamonds.

6. WHY MONEDIAMTM STARTED Why • The launch of the MONEDIAM instrument will facilitate international investment in polished diamonds as a new hard asset of choice to parallel other commodities such as gold and platinum, expanding the number of easily tradable asset-classes in which an investor can invest. • Until now, the possible permutations created by the four C’s of the diamond trade – clarity, colour, cut and carat weight – have made it near impossible to create a fungible instrument, whether in the retail or wholesale space. • The MONEDIAM instrument can be Quoted on a financial exchange or Traded in the same way as any security, and also allows for the creation of derivative instruments based on the underlying MONEDIAMUNiT.

7. HOW MONEDIAMTM WORKS How • MONEDIAM solves the key issue of standardization andvaluation through the incorporation of 10 polished natural diamonds (each of the “brilliant” cut) into a UNiTwhich enables the relative values of each diamond to be aggregated to produce an equal value across various selections of 10. • This aggregation has been made possible by the development of a sophisticated and patented algorithm and value-rating methodology • which ascribes a weighted value to each diamond that meets the general criteria for incorporation into a UNiT, • and which identifies and selects the 10 individual diamonds to be included into a UNiT as having the required aggregated value. • As each diamond, within a pre-selected range, is added to a selection, the algorithm determines the next diamond to be added in order to ensure each portfolio varies negligibly from another.

8. APPLICATION OF ALGORITHM The MONEDIAM system applies a mathematical value to the conventional value characteristics of diamonds, so that any given set of 10 diamonds inserted into a MONEDIAMUNiT will have an almost identical value (<0.003% variation) to an equivalent MONEDIAMUNiT. The secret lies in the process of determining which 10 diamonds from within the available stock (or available on a Just-in-Time basis via direct access to a third party supplier stock database) can be combined as having the required value for a particular nominal value and quality category. Classification and evaluation System is based on internationally recognized G.I.A. (Gemmological Institute of America) grading scale

9. STANDARDISATION OF VALUE • Each MONEDIAMTMUNiT contains 10 natural diamonds • All diamonds are GIA certified • All diamonds are of a round brilliant cut • 4 Quality ranges Alpha,Beta,Gamma, Delta • 4 Weight ranges 20, 10,5,3carats(total weight) • Market value is a factor of quality, weight & market conditions • The value of a given Alpha 20 carats UNiTwill always equal the value of any other Alpha 20 carats UNiT

10. SECURITY • The 10 diamonds are contained within a TiStranslucent container injection-moulded from a compound that has been developed exclusively for MONEDIAM. • A number of layered security features have been incorporated into the MONEDIAMUNiTto totally prevent substitution, replication and fraud. The UNiTincludes a readable contactless chip that contains detailed information about the genealogy of each individual diamond, its value characteristics, and time and place of packaging. • The onion effect - layer upon layer of security enhancements: • military-grade security features • translucent TiS protected plastic • serrated diamond security tape with invisible printing (seal) • bank card with leading-edge security printing Impossible to tamper with and go un-noticed!!

11. A TYPICAL MONEDIAMTMUNiT

12. The Diamond Market Today IDENTIFYING THE NICHE ADDRESSED BY MONEDIAMTM Bain & Company Inc.’s Diamond Industry Report from 2013 identified: • Diamond demand is driven by two main categories: fine jewellery and industrial applications. • Because diamond gemstones are a luxury item and not a commodity, the global diamond jewellery market moves in parallel with the broader market for luxury goods and jewellery. • The recent financial upheaval throughout the world, followed by a global recession, has shaken confidence in traditional financial instruments. • Banks no longer lend without in-depth scrutiny and thus investors and consumers alike seek to protect their assets by searching for valuable alternatives.

13. HOMOGENOUS HETEROGENOUS • The diamond market has expanded exponentially since the 1980s with many more diverse sources in both geography and suppliers, fewer monopoly influences and a large established retail market. • The market is sufficiently diverse and extensive for the introduction of a tool such as MONEDIAM capable of addressing the needs of a market sector where standardisation, transparency and liquidity are key. • MONEDIAM has now established a formal prospective market for standardised diamond trading.

14. DIAMOND CARTEL POWER WANING OTHERS • The De Beer’s distribution channel (CSO/DTC) has been waning in power, while growing demand for long-term contracts creates an environment favourable for large and numerous forward contracts. • More specifically, with so many players continuing to enter the market, demand continues to grow for standardised contracts which can be traded easily. • This establishes a need for futures markets – essentially standardised forward contracts – which require an underlying real asset which can be standardised. With the tradable asset, other derivatives markets such as options markets are now a possibility.

15. MONEDIAMTMTARGET GAP MONEDIAM’s target gap lies between the polishers, the manufacturers and the retailers. • The bulk of volume in dollar terms and in percentage margin lies between the polished producers and the retailers. • The margin allows more scope to pay for derivatives built around MONEDIAMto help reduce risk – much like insurance • The scale of the market and the large number of players who need to easily trade the underlying asset will fuel demand for the standardised MONEDIAMUNiT

16. VALUE ADDED INDICATORS There is room for a natural hedge between the polished diamond makers and jewellery manufacturers • MONEDIAMaddresses areas where there is a natural demand for a hedging product. • Indirectly, it will grow the market as it will create demand by creating a standardised diamond market which has not existed before • whether to help supply buyers to diversify portfolios, similar to existing buyers keeping bullion, or • from demand for the underlying fungible asset to support the derivative market developing around it.

17. Surprising though it seems from today’s perspective, the standardised trillion dollar derivatives markets that underlie every aspect of the financial services industry did not exist until the 1970’s, and standardised share derivatives took until the 1980’s to emerge: In 1972, the Chicago Mercantile Exchange established the International Monetary Market to trade the world’s first futures contracts for currency. The world’s first interest-rate futures contract was introduced shortly afterwards, at the Chicago Board of Trade, in 1975. In 1982, futures contracts on the Standard and Poor’s 500 index began to trade at the Chicago Mercantile Exchange. These radical new tools help businesses to manage their affairs in a volatile and unpredictable new world order. When futures markets do not exist or cannot be used, hedgers pay steeply for the protection they seek. Without MONEDIAM’s standardised diamond instruments, these markets have until now been unavailable to the diamond trade, making it difficult and costly to hedge price risk. FORWARDS, FUTURES AND OPTIONS

18. EXISTING PLAYERS There is an insignificant formal market due to current players not addressing the fundamental issues (such as standardisation) and dealing in individual diamonds, specifically limited to high-end specialist products which are unsuitable as underlying assets for risk hedging.

19. Existing players are trading diamonds in their current form - each diamond being unique and not easily interchangeable - in an opaque, over the counter, deal-by-deal market with little transparency and no clear method for fast and specific price discovery. The "Rap List", created in 1978, has been used by the industry as an indicative guideline for pricing diamonds. The Rapaport Report is the jewellery industry standard for the pricing of diamonds. The report is published weekly and given to jewellers and diamond merchants to set prices for consumers. The report is issued in the form of a table and prices diamonds based on the 5 C's of diamonds - carat, colour, clarity, cut and confidence. A similar ADTEC list and several others circulate globally. The Rap List, however, is an aggregated static list (prices lag) compiled from non-public data submitted by the various players in the market based on supposed arm’s length trades after the fact. Accordingly, its “best guess” pricing basis highlights the key issues the industry faces, namely (i) a lack of standardisation (ii) which does not allow for simple exchangeability (iii) which creates an opaque and imprecise market (iv) with limited liquidity and tradability and (v) therefore high costs and (vi) almost no method for accurate and speedy price-discovery, all of which are required for an efficient diamond commodity market. EXISTING PLAYERS cont…

20. DIAMONDS ARE RELATIVELY COMPLEX TO VALUE • Until now, diamonds have been too complex to value and trade. The MONEDIAMUNiT is the answer. MONEDIAM addresses each critical factor for commodity standardisation. MONEDIAM’s standardised diamond instruments now make diamonds (in the UNiT) easier to Trade, Store and Value similar to that of bullion.

21. Markets unlocked by the MONEDIAMTMUNiT 8 STAGES FROM MINE TO FINGER The area where financing is most needed and applied in the industry is the same area which lacks standardised instruments to help hedge or at least provide an offset for the security typically provided by these producers. • Bankers require assistance (risk hedging) to advance more investments funds Exploration Production Rough-Diamond Sales Cutting and Polishing Polished-Diamond sales Jewellery Manufacturing Retail Sales Consumer demands Financing - Consumption of jewellery and watches - Industrial demand - Exploration for diamond resources (kimberlites & lamproites) and evaluation of economic feasibility - Development and construction of new mines • - Diamond production and processing • Open pit • Underground mines • Alluvial • Offshore - Jewellery design and manufacturing - Jewellery sales to consumers • - Rough Diamond sorting into categories • - Sale of rough diamonds by producers - Cutting and polishing of rough diamonds to produce polished diamonds - Wholesale sales of polished diamonds to jewellery manufacturers

22. AFRICA - DIAMOND MINE LOCATIONS Diamond producing Mines – Africa Diamond Occurrences

23. THE MONEDIAMTM VALUE PROPOSITION TODAY MONEDIAM Diamond producing countries • Untapped Potential • Local Beneficiation in producing countries • In house traceability system New Financial Markets

24. The Problem being solved DIAMONDS AS A COMMON COMMODITY • Futures are standardised contracts that commit parties to buy or sell goods of a specific quality at a specific price, for delivery at a specific point in the future. This can now apply to diamonds in the target markets identified, since MONEDIAM addresses “standardisation” and “specific quality” • Banks have long offered their customers the opportunity to buy and sell currencies forward, with both the bank and the customer contracting today and settling their obligation in the future. The can also be done with standardised diamonds – MONEDIAMUNiT. • There has always been the demand for an organised venue in which producers and other suppliers of diamonds, such as warehouse owners, polishers, manufacturers and brokers, can remove the risk of price fluctuations from their business plans. • Until MONEDIAM created a fungible instrument, this was never a possibility. With MONEDIAM, these organised venues can very easily start the boards on any stock exchange.

25. MONEDIAMTMCREATES A NEW MARKET • MONEDIAM’s standardised UNiT can form the basis of a futures market. Key to a futures market is a clearinghouse – creating additional benefits the diamond industry sorely lacks: • With a diamond clearinghouse, the producers do not have to be concerned about the financial stability of the buyer of the futures contract, nor does the buyer need to be concerned about the progress of any particular producer’s mine production. • The zero-sum game of futures trading and the security created by a clearinghouse making payments to independent contracting parties by offsetting their “margins calls” can now be established in the diamond trade. • There is an additional security measure between the individual trader and the clearinghouse. Buyers and sellers of futures must do business through intermediaries who are exchange members. Instead of standing between two individual traders, therefore, the clearinghouse stands between two exchange member firms – elevating professionalism and credibility.

26. The punch line can be provided by the following example: A jewellery manufacturer or retailer can be likened to a chocolatier who might buy sugar and cocoa futures contracts to lock in a price for some portion of its requirement for these important ingredients. The contracts are as good as physically buying the commodities and storing them. If prices rise, the futures contracts will also be more valuable. The company can choose to sell the contracts and pocket the cash, then buy the commodities from its usual suppliers at market prices, or else accept delivery of the ingredients from the seller of the contract and buy less on the market. On the other hand, if prices fall, the company loses some money on its futures contracts. But the same price decrease that causes that loss also caused something good: the company pays less for its ingredients. For a buyer, the purpose of buying the futures contract is to protect against a price rise. If prices fall instead, the result is similar to buying fire insurance but not having a fire. One has locked in a price upfront. THE NATURAL HEDGE

27. Diamond miners or polished diamond producers seek to lock in a value on their supply and are willing to pay a price for certainty. They give up the chance of very high prices in return for protection against abysmally low prices. Mines that start producing today have no way of knowing what the price of these diamonds will be when they sell them months or years down the line. But producers who sold a futures contract committed to deliver for a definite price. Not only do they ultimately receive cash in return for their commitment, but they also receive the contract price even if the market price subsequently falls because of an unexpected glut of supply. In exchange the producer gives up the chance to get a higher price in the event of supply constraints; they receive the same fixed price for which they had contracted. Producing diamonds is risky enough. There is no need to add the risk of changes in market prices. GUARANTEED VALUE

28. MONEDIAM’s purpose is to create a new market and increase commodity trading by offering an additional portfolio play – the natural diamond standardised UNiT ‘s. The focus is on a formal market driven by institutions and the large players in the diamond market. The underlying instrument can be owned by individuals, but this is peripheral. The liquidity (lower costs) and speedy transparent price-discovery that can be provided by the MONEDIAMUNiT are beneficial across the market Physical ownership of the UNiT by individuals and institutions Indirect ownership via indices and unit trusts Advanced hedging via derivative markets: futures and options PROVIDING A REAL ALTERNATIVE ASSET TO INVESTORS

29. For the market to function, it cannot consist only of hedgers seeking to lay off risk. There must be someone who comes to market in order to take on that risk. These are the “speculators.” Speculators come to market to take risk, and to make money doing it. Speculators provide an important social good: liquidity. Without the presence of speculators in the market, producers, bankers, and business executives would have no easy and economical way to eliminate the risk of volatile prices and interest and exchange rates from their business plans. Speculators provide a ready and liquid market for these risks—at a price. Speculators who are willing to assume risks for a price make it possible for others to reduce their risks. Competition among speculators also makes hedging less expensive and ensures that the effect of all available information is swiftly calculated into the market price (price-discovery). SPECULATORS PROVIDE LIQUIDITY

30. MONEDIAMTMCOVERS THE OPTIONS MARKET • Whereas a futures contract commits one party to deliver, and another to pay for, a particular good at a particular future date, an option contract gives the holder the right, but not the obligation, to buy or sell. • Options are attractive to hedgers because they protect against loss in value but do not require the hedger to sacrifice potential gains. Therefore most exchanges that trade futures also trade options on futures. • The options market owes a good deal of its success to the development of the Black-Scholes option pricing model. Developed by economists Fischer Black, Robert C Merton, and Myron Scholes, it was first published in 1973. In 1997, Merton and Scholes received the Nobel Prize for this breakthrough. • The Nobel citation said: “Black, Merton and Scholes thus laid the foundation for the rapid growth of markets for derivatives in the last ten years. Their method has more general applicability, however, and has created new areas of research—inside as well as outside of financial economics. A similar method may be used to value insurance contracts and guarantees, or the flexibility of physical investment projects. • For this reason, MONEDIAMdeems it important to have Myron Scholes, one of the most notable brains in the derivatives market, champion its standardised diamond instrument.

31. Additional Market Insights VOLUME OF GLOBAL MARKET OF LUXURY GOODS Expansion Boom (Democratization) Consolidation Crisis Rebound CAGR -5% CAGR 8% CAGR 1995 – 2010 +5.5% CAGR 1.4% CAGR 11% Index 1995 – 100 100 = € 77billion +12% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Luxury Goods Worldwide Market Study

32. DEMAND SOURCES: DIAMONDS vs GOLD vs PLATINUM Jewellery Auto Catalyst Industrial Investment Source: Diamonds Briefing 2011

33. CONSUMER DEMAND FORECASTS (Nominal Polished Sales) 2011 USD 23bn 2016 USD 31bn +35% Source: Diamonds Briefing 2011

34. GLOBAL PRODUCTION IN CARATS Current Production Probable Production Committed Production Source: Diamonds Briefing 2011

35. “The MONEDIAMTMproduct is a global, decentralised currency. This means that there is no country to which MONEDIAMTMspecifically belongs, making it a viable currency to use all over the world. This makes international transactions simple: no longer does there need to be a discussion of whether the payment should be made in the buyer’s currency – or the seller’s, nor at which exchange rate the transaction should take place. Another big advantage that decentralised currencies have is that the Federal Reserve or any national bank does not manage the value of the currency. This means that the currency will retain its value regardless of the performance of the global economy, similar to the value of rare metal and commodities like oil. It has no single point of failure.” - Recent analysis by Julian Jessop, Chief Global Economist for London-based Capital Economics

36. Conclusion • MONEDIAMTM seeks to establish a whole new market opportunity in response to the ever-growing demand for alternative asset classes • MONEDIAMTM’s has the potential to satisfy the need for real value through the use of an asset that until now has had no place in the global market, thanks to the patents and standardisation encapsulated in the MONEDIAMUNiT. • Diamonds can now be owned and traded with confidence, thanks to MONEDIAMTM, by way of Exchange Traded Funds, Institutional uptakes and Instruments (Derivatives and Options, paper swaps) and the physical commodity itself. This will boost the diamond industry by injecting new liquidity and adding real value across all segments related to diamonds both in the ground and in jewellery... Thank you MoneDiam LLC (e) contact@monediam.com