OVERVIEW August 17, 2021
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OVERVIEW August 17, 2021 This booklet is not a prospectus. Apache Prospect Overview Page 1 Destination Resources Apache Prospect, LLC (The Company) is a minerals exploration company. It was cofounded by Jim Hicks, Shawn Martin, Todd Clow and John Bailey in January 2020. A US Bureau of Mines report from the 1950’s was located by Mr. Bailey, a geologist and geophysicist, and the geological data created by Mr. Bailey is now owned by the Company. Mr. Bailey now serves as the Chief Geophysicist of the Company. Keith Needham joined the Company in August, 2020 and serves as VP Land, A&D and Legal. Apache Prospect is primarily an ilmenite Titanium Dioxide (TiO2) feedstock resource. We have data from the 1950’s core samples and recently completed mineralogy reports from core samples we drilled in 1Q21. These reports were produced and analyzed by a major TiO2 pigment producer whom we are working with to verify and augment the 1950’s data. We will secure funding and then lease or purchase the land needed. Then we will work with our Chief Mining Engineer to produce a Mineral Resource Estimation Report (JORC Report), develop the mine, and sell the Ilmenite ore to buyers we have identified and contacted. Extensive planning will be done for land reclamation. The total value of Apache Prospect cannot be determined until we have completed our field exploration and begun mining operations. We have prepared estimates based on similar operations. We estimate Apache will produce 2,004,772 US Short Tons of Ilmenite, at $300 USD per US Short Ton or $601,431,600 USD. The cost to set up and operate the mine is estimated at $50 to $100 Million USD. The following dollar amounts are estimates in Millions. $0.1 Take options to purchase 600 acres at $100 per acre $2 Lease / purchase 600 acres. This land would typically sell for about $1200 per acre. The option used will dictate the price and terms. $0.2 Drill 7-9 60 ft deep sampling holes to verify the original core samples. $0.5 Setup Apache Prospect General and Administrative & etc. $50 Complete the Mining Plan shown on a following page. $47.2 Contengencies. $100 Million is the amount the Company will secure to complete the project. We are seeking $30 Million in equity investment and $70 Million in debt investment in the form of a line of credit. Risk of Loss is possible, as stated in the Company Operating Agreement: Subscriber can bear the economic risks of an investment in the Company and sustain a complete loss of the investment. Subscriber is aware of and understands all risks associated to the purchase of the Units. Subscriber has adequate means and net worth of providing for current needs, having no need for liquidity in this investment. This Overview and the supplemental materials associated with it will contain certain forward-looking statements, as will the Subscription Agreement. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions within the bounds of its knowledge of its business, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-Looking statements involve risks and uncertainties including, but not limited to, general economic trends, competitive factors, personnel and supply costs, and other risks common to the mining industry in general. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. This Booklet is not a Prospectus. August 17, 2021 - Rev 03 Apache Prospect Overview Page 2 An Operating Agreement has been prepared and signed. A Subscription Agreement has been prepared to accept Members by Subscription. The Company will allocate a total of 100 units for the Prospect. Company will retain a minimum of 52 units and Subscribers will have a maximum of 48 units. Units are non-dilutive. 1 unit = 1% of the prospect. Geology and Geophysics are under the direction of Chief Geophysicist John Bailey. Apache is on private land and the availability of leases and mining permits for the Apache area has been verified. Apache is not on Bureau of Land Management (BLM) land or Bureau of Indian Affairs (BIA) land. This is a high-volume deposit and has a much greater resource and equally greater rate of return than smaller, localized mines. These preferred bulk operations are suitable for strip mining, plus they are easier to restore and re-contour to near their original environment and terrain. The preferred bigger targets occur in close proximity to geophysically definable features. These geophysical leads will be augmented with comprehensive geology and confirmed with surface and shallow-depth sampling. Field Exploration will be described in “Project Schedule and Costs” to be prepared. Revenue will be generated when the Company sells the Ilmenite ore. The price of TiO2 has been rising, as shown in the “Titanium Dioxide FD America N Contract Price Assessment” chart later in this Overview. Our Chief Geophysicist created excellent geological data and we are the only company that has it. The Company can not estimate the value of Apache Prospect until we have completed several stages of field exploration. Parent and Subsidiary Companies have been established. On January 29, 2020, Destination Resources, LLC Management established a Subsidiary Company, Destination Resources Apache Prospect, LLC. The two companies have a business structure where Destination Resources, LLC is the Parent and Destination Resources Apache Prospect, LLC is the Subsidiary (Daughter). Parent and Daughter companies have separate assets, banking and tax reporting as described in the Operating Agreement. Timeline of events is shown later in this Overview. Apache Prospect Overview Page 3 Highlights Central US Location Less-competitive region yields attractive entry points. Private/fee land ownership (no Fed/State/Indian land in initial prospect area). Potential Scale Potential large & simple mining operation for ilmenite Titanium Dioxide (TiO2) feedstock and other minerals. Historical exploration by US Bureau of Mines and DuPont. Infrastructure Excellent utilities and logistics with low operating costs. Stillwater Central RR runs straight from Apache to Tulsa and the Port of Catoosa. Critical Minerals Titanium is on the list of 35 critical minerals in the US. On September 30, 2020 President Trump issued a Presidential Memorandum on Executive Order 13817. Accelerating Business Mid-continent area offers attractive mining economics. Low-cost entry into proven Opportunity resource areas with de-risked opportunities. Low-risk, high-reward potential in capital allocation strategy. Complete Management Technical expertise at each phase of the E&P business. Cohesive, battle-tested Team Intact and Ready management team. Strong network of high caliber US based personnel and consultants in geology, Ilmenite (TiO2) mining, permitting and mine operations. Proven Sponsorship Group Complementary sponsorship group provides expert financial and technical support. Market expertise to help evaluate strategic opportunities. Attractive Investment Terms Management proceeds only paid after a realized cash return to investors. Efficient team with low-cost G&A, discount compensation to market. Management team 100% committed to prospect upon capital raise. Apache Prospect Overview Page 4 The Apache Prospect Mine Area is shown in the trapezoid above. Apache Prospect Overview Page 5 View of the mining of a sand layer similar to Apache Prospect Core Samples have been taken and analyzed to determine the location, quality and quantity of the resource. Additional drilling will be done to verify the original cores and to delineate the resource, estimated at about 1,500 acres. At the end of the drilling program the Company plans to prepare a JORC, NI 43-101 or similar resource estimation report. Apache Prospect Overview Page 6 Overview of a potential mining method at Apache Prospect Overburden removal is very modest in early years, average depth life of mine is only about 25 feet. Ore mining is via a simple dozer push or excavator operation into a mining unit plant (MUP). The MUP rejects any oversize material >2mm (0.08 inch) via a series of vibrating screens. <2mm ore is then pumped via slurry pipeline to the Wet Concentrator Plant (WCP). It is estimated that 3-5 years from moving first dirt an area will be reclaimed and no longer a liability. Reclamation of mined areas is important to us. Mine reclamation is the process of restoring land that has been mined to a natural or economically usable state. These areas will be returned to their natural state, focusing on soil, vegetative, wildlife, and water management values. Planning of mine reclamation activities occurs prior to a mine being permitted or started. Reclamation is almost concurrent with mining. After removing the ore, the overburden from the next pass is used to fill the hole. Topsoil is returned and reseeded. This limits the reclamation liabilities and is expected to assist in attaining permits. It is important to note that mineral separation and concentration of the TiO2 ore does not use chemicals. Once processed the non-ore can be used to fill the void and undergo reclamation almost immediately. Apache Prospect Overview Page 7 Equipment for a potential mining method at Apache Prospect Mining Unit Plant Wet Concentrator Plant Mineral Separation Plant Apache Prospect Overview Page 8 The Product Titanium dioxide, also known as titanium (IV) oxide or Titania, is the naturally occurring oxide of titanium, chemical formula TiO2. When used as a pigment, it is called titanium white, Pigment White 6 (PW6), or CI 77891 and is a white powder. Generally, it is sourced from ilmenite, rutile, and anatase. (sources: Wikipedia, geology.com) About 95% of all titanium ore is destined for refinement into TiO2, an intensely white permanent pigment.