Purpose Cash Management Fund Class A V.MNY

Ian's response to Scam (I forwarded the post to him)

[goldenone1]

Hello Paul, cc: Montan Board, CFO

Firstly Paul, I would like to thank you and congratulate you for reaching out to me for comment in a direct manner: I do greatly appreciate the opportunity you have provided me to respond on behalf of our committed board, company management, employees and loyal shareholders. I hope I can do justice to this collective group’s efforts to build a real company via my response.

I cannot comment on what Luis said at the meeting in question because I wasn’t present. However, I am with Luis in New York right now negotiating the financing of our Kairos SAC acquisition, and I have been in numerous investor and fund meetings with Luis over the last 5 months, and neither of us hasever said we won’t raise money while I have been present. We need US $3M to close our acquisition of the cash-flowing Kairos SAC, and we have clearly stated our estimate of needs to bring Cerro Dorado into production.

So we are presently raising a bridge financing (this has been presented in ALL meetings I have been party to) and the further acquisition and working cap funds will be raised in addition – likely in a mix of structured finance and equity. So the idea that Luis would have said we wouldn’t finance seems most improbable. Luis is my partner, and he has high ethical standards. I am inclined to suggest that the assertion is a distinct misunderstanding, at best. Our News Releases and public presentations clearly outline our acquisition needs, and the market is clearly – and in my experience of engagement with potential capital partners ‘keenly’- aware of our capital requirements.

Luis and I have indeed sold our free-trading shares. These funds have been returned to the company as part of the current PP financing. This participation will be a matter of public record as soon as we close the financing, which will occur imminently. For more certainty I anticipate this will be public before the Easter long weekend.

We are looking to take MNY to a $5M EBITDA on a run-rate basis by December of 2017. This projected cash-flow requires that we close on the Kairos acquisition, and that we finance Cerro Dorado into operation. We may proceed with this plan on an ‘as stated’ basis, or on a reduced growth rate basis, depending upon capitalization financing: this statement assumes we finance the Kairos acquisition and that we close that transaction on schedule – as such these statements are clearly ‘forward looking statements’ and I trust you will interpret these comments in that manner and spirit. If we achieve this projected EBITDA we are of the firm belief that the market will significantly re-rate the company.

Our challenge today Paul is that we are trying to finance a company that would cash flow at in excess of its present market cap in < 9 months. This is a significant ask as you might imagine. We certainly have been showing to prospective investors and existing shareholders our modeled metrics of success, and seeking their active purchasing participation in the market. But as I have done in the above, we are basing our positive outlook on the acquisition & operation of compelling assets – one cash flowing and the other with very near term cash-flow if financed – and on the strength of our team in Peru. The calibre of the team, in our estimation, is not readily over-stated: Luis is Lima based, and our GM Commercial and Logistics Manager were formerly lead personnel at Peru’s largest private gold miller – a company they assisted in growing to a plus-$30M per annum EBITDA operator.

We firmly believe that we can recapitulate that business, albeit on a smaller scale, to the benefit of our loyal shareholders over a period of 3 to 4 quarters. So both Luis and I are content to be on record – verbal and written – where we encourage shareholders to remain positioned or to look to acquire positions if they like our business plan. We never promise any particular future share performance – I certainly have never witnessed Luis to do so – but we are engaging groups known to be effective in market communications with immediate and near term effect. In our presentation we are always at pains to show comparable companies that have achieved EBITDA in the sector, and highlight their market caps. We leave market participants to draw their own conclusions on the potential and capacity of the Montan team to achieve comparable market cap to EBITDA ratios….

Again Paul, thank you for providing the Company with an opportunity to respond in a fair and direct manner. We believe that full, fair and open dialogue works to the benefit of all participants in our venture.

All the best to you, I hope you will choose to remain a shareholder.

Sincerely,

Ian

Ian Graham CEO, Director
M: [phone] SKYPE: ian.graham.kex
TSXv:MNY / FSE: S5GM - www.montanmining.ca
1400 – 1111 W. Georgia St., Vancouver, BC V6E 4M3