May 1, 2015 “Gold should not be viewed as the means to make you rich, but rather, as a means to avoid the debts that can make you poor” -BitGold Inc. Caution Regarding Forward-Looking Information These Slides contain certain “forward-looking information” within the meaning of applicable Canadian securities laws that are based on expectations, estimates and projections as at the date of these Slides. The information in these Slides about the future plans and objectives of the Company are forward-looking information. Other forward-looking information includes but is not limited to information concerning the intentions, plans and future actions of the Company. Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information. This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others: the Corporation’s limited operating history; future capital needs and uncertainty of additional financing; the competitive nature of the industry; currency exchange risks; the need for the Corporation to manage its planned growth and expansion; the effects of product development and need for continued technology change; protection of proprietary rights; the effect of government regulation and compliance on the Corporation and the industry; network security risks; the ability of the Corporation to maintain properly working systems; theft and risk of physical harm to personnel; reliance on key personnel; global economic and financial market deterioration impeding access to capital or increasing the cost of capital; global economic climate; dilution; and volatile securities markets impacting security pricing unrelated to operating performance. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to revise or update any forward-looking information other than as required by law. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. The Slides and the accompanying verbal presentation are confidential and are being supplied to you solely for your information and may not be reproduced or distributed to any other person or published, in whole or in part, for any other purpose. Important Notice These presentation slides (the “Slides”) do not comprise a prospectus or other form of offering document relating to BitGold Inc. (the “Company”), and do not constitute an offer or invitation to purchase or subscribe for any securities of the Company or any other company and should not be relied on in connection with a decision to purchase or subscribe for any such securities. The Slides and the accompanying verbal presentation do not constitute a recommendation regarding any decision to sell or purchase securities of the Company or any other company. Your attention is drawn to the risk factors set out below. 2 A New Global Operating System for Gold BitGold is an internet software service that makes vaulted gold accessible for savings and mobile payments; the first full-reserve ‘online bank’ like platform with e-payments and debit card for sending & spending gold • Modernizing and mobilizing a trillion dollar market • • • Gold is a significant percentage of base money with no “payment apps”; strong use case for EM & cross boarder • • • 3 BitGold can revolutionize access to gold for retail & commercial accounts just as the ETF did for institutions Technology, UX/UI and scale can make BitGold cheaper and more accessible than ETF or existing vault services BitGold can be relevant in every country and to every income segment ideally positioned for secular growth in EM mobile payments, cross border service invoicing, global micro-transactions, remittance services A powerful financial-network growth-case to be made by connecting the global gold markets with leadership, software innovation, and new payment-market use cases 4 Business Highlights • Trusted, Limited Third Party internet financial platform • • BitGold is not a bitcoin or an IOU/ETF linked to gold • • • BitGold is pursuing an internet growth strategy that leverages global sales channels, and the global nature of gold as an unmatched store of value, for a service relevant to anyone on the planet using money and a smart phone Over CAD $10mm raised pre-launch (see page 17 for capital structure) • • 5 BitGold’s patent-pending “Aurum” technology solves the key settlement cycle impediment that made allocated, vaulted gold difficult for high-velocity payments Globally relevant, internet-scalable business model (see slides 13) • • BitGold is a transactional software service for fully-allocated, redeemable gold Benefits similar to bitcoin in mobile & micro transactions, but without bitcoin volatility or anonymity (BitGold is proudly on-shore, tax compliant and KYC/AML compliant) Innovative technology (see slide 15) • • BitGold is not a bank and does not custody client money, BitGold is an internet software service that links a user’s securely-vaulted gold to global payment networks; ensuring minimal counterparty, FX, and banking credit risk for savings and payments Public funding syndicated led by Dundee, Clarus, GMP and Canaccord Genuity Backed by Soros Brothers, Sprott Inc., PowerOne Capital, and Sandstorm Gold Platform Features Secure Gold Savings: • • • • • • Purchase or redeem gold at within 1% of official spot price Free gold storage in vaults operated by BRINKS and insured by Lloyds of London Five deposit/redemption Methods from any global currency: 1. Direct Bank Deposit – INTERAC, SEPA 2. Bank Transfer – SWIFT, Wire 3. Credit/Debit Cards – VISA, MasterCard, China UnionPay 4. Virtual Currencies – Bitcoin (Ripple coming soon) 5. Cash via BitGold ATM Machine All gold vaulted under customer’s name under allocated storage in separate legal entity BitGold has zero rights to customer gold (bailment Law) Gold is redeemable as 10g GoldCubes or 1kg Bullion Bars Best Practices in Compliance and KYC/AML: • • 6 Every customer required to provide valid government-issued identification and email + mobile phone verification Proprietary technology flags suspicious activity & screens AML risk Payment Features Gold for Payments: • • • • • Spend vaulted gold at traditional points of sale or withdraw local currency from traditional ATM machines with BitGold MasterCard Send or receive gold payments to any BitGold user Send gold to anyone with an email address or mobile phone Convert to digital currency such as Bitcoin for global transfers Tax tool for end of year gains & loss accounting in local currency Empowering Global Merchants with Payment Processing for Gold: • • • • Earn Gold by invoicing time, labor, goods or services – Only 1% of invoice value + processing fees Accept VISA, MasterCard, ChinaUnionPay, Bitcoin from anyone around the world, resulting in credit of gold grams, kilograms or tonnes in Vault Email an invoice or request payment Collect payments via tablet or mobile device ATM Machine: • • • • 7 Converts up to 100 different currencies into gold, credited instantly to the customer’s Vault Account Full account features: make/receive payments Customer acquisition tool: encourages long-term savings in gold Functions as a branch for BitGold service allowing for a physical consumer-facing relationship Mobile App in Development – Summer 2015 • 8 Mobile onboarding, tap and pay, social/contacts integration, push notifications and more BitGold Plastic MasterCard (feature launching in May 2015) BitGold 24K Gold Visa Signature Card (feature in development) 9 BitGold ATM Machine (launching soon): On-boards customers in minutes, accepts deposits of local currency funding mobile Vault Account Platform Features (Screenshots) Revolutionary On-Boarding, KYC/AML technology Government ID Verification in Seconds (160 Countries); screens for Sanctions, Black List 10 Platform Features (Screenshots) 6 Instant Deposit Methods to Physical Gold via Patent-Pending Aurum Technology Chinese deposit processing Credit Card Deposit Screenshot Over 100 Live Reference Currencies 160 live reference currencies, relevant globally 11 Platform Features (Screenshots) Four ways to redeem gold Redeem Gold – Cubes or Bars Selection 12 Redeem Gold – Vault Balance View Redeem Gold – BitGold 10g Cubes Revenue Model BitGold’s revenue model is driven by internet-scalable transaction velocity and pricing automation. BitGold makes small gold/currency conversion fees through an embedded markup on the “best bid or offer” quoted on the Aurum exchange every time gold is bought and sold (account funding, withdrawals, debit card purchases, ATM deposits), and through merchant fees. • Targeted markets for early growth: • • • • • Online and third-party gold vaulting business (and alternative to ETF for retail ) Crypto currency market E-gaming community Cross border payments and remittances Invoicing and merchant business Network Value Proposition The BitGold Investor Proposition is to deliver strong growth in our user base, building a global network for both savings and transactions. Maximizing shareholder value in the long term, achieved through growth in our users and revenues to scale, requires investment in our users, and investment in the user experience and security of the platform. • • 13 Powerful Business Model – High ratio of Customer Lifetime Value (CLV) to Customer Acquisition Cost (CAC) Key Performance Indicators to be published in Real-Time Pre-Launch Press Coverage and Media Buzz • • • • 14 Early media coverage and interest for the platform (as evidenced on Twitter) have greatly exceeded expectations prior to an official PR campaign BitGold funding and pre-launch articles appeared in multiple media outlets BitGold has built a strong social media following – Over 15,000 Twitter followers – 14,000 Facebook – 1,700 Instagram Over 20,000 pre-launch sign ups recorded BitGold “Aurum” Patent-Pending Technology – Gold Trading and Settlement Reinvented Aurum Pricing Engine Customers access one global platform over the internet using PC, Mobile, ATM’s •Consolidated feed from Counterparties quoting Bid/Ask Spreads in each Vault Location 24/7. Matches orders from Digital Value processors against price at order book. Vault Operators Digital Value Processors Legal, Compliance, Audit 15 •Third Party Audit •Bank-Level AML/KYC Onboarding •Tax Lot Accounting •Provide Settlement, Security, Storage,Transportation, Insurance, Accounting, Redemption • ePayments - Bitcoin, Paypal, Dwolla •Credit/Debit Cards •Bank API, ACH, SEPA, Interac •Swift, Bank Wire Transfers Multi-Disciplinary Team The BitGold team builds on decades of experience in financial services, investment management, software engineering, UX/UI design, cryptography, digital security, financial service compliance, consumer marketing, commodity market trading & macro economics Roy Sebag – Director CoFounder - CEO Former Portfolio Manager Long/Short Equity, Essentia Equity • • • • • • • • • 16 Josh Crumb – Director Co-Founder – CSO For purpose Businesses, Former Sr. Metals Strategist, Goldman Sachs Alessandro Premoli Chief Technology Officer Decade+ experience in encryption, cryptography, digital signatures James Eaton Independent Director Weatons Holdings Inc, Denis Peterson Director Peterson & Company, John David and Signy 25+ years experience in Eaton Foundation corporate securities law Daniel Crandall – Chief Financial Officer – CFO to TSX Companies Jason Loewe – V.P. Operations & Compliance – Former Regional Compliance at Assante Alex Potichnyj – V.P. Marketing & Strategy – Former head of global marketing at OANDA Karman Lee – Operations – Former PwC, UBS, Trafigura, Vodafone Emily Cornelius – Marketing and Public Relations – Former AOL Canada, Huffington Post Benjamin Smith – V.P. Customer Success – Former customer service lead Ecobee, Agora, Swiftrade Stanley Chen – V.P. Customer Success APAC – Former head of Chinese Accounts at OANDA. Amanda Hamilton –Brand Strategy – Former Marketing and Brand Management at Unilever 8 Software Engineers working under CTO Alessandro Premoli in Milan, Italy Capital Structure & Recent Financings 35.8mm shares O/S of following completion of Subscription Receipt Amalgamation – 4.4mm warrants & options (warrants forceable at C$1.35 strike) Founders own and control over 20mm shares and continue to invest in BitGold (and continue to work without salary/compensation - both founders are independently successful from previous ventures and are extremely passionate about BitGold potential) ~$3mm raised privately during 2014, December Series-A Round led by PortVesta Holdings, Soros Brothers Investments, Sandstorm Gold, leading financial services professionals Go Public Transaction Announced on January 28, 2015: raised $7.5mm led by Sprott Inc. ($2mm) & Roy Sebag ($1mm), Co-Book Leads: Dundee, Clarus, GMP, CanaccordGenuity • • • • Capital and Liquidity as of March 30, 2015 and Consolidated Amalgamation • • • 17 ~$9.2 million liquidity + inventory of ATM Machines and Gold Cubes • ~$5.0mm additional cash from warrant exercise Current cash burn of $170k per month can service first 30,000 customers due to scalable infrastructure No material liabilities, obligations or encumbrances Gold as a commodity, an ideal “commodity money” Gold needs to be reinvented for its commodity value in a new technological age • We do not support the traditional gold money narrative of the gold bugs – pulling away from society or selling fear or greed is inconsistent with our human values and isn’t relevant for younger generations to embrace gold • Consider a different Narrative: Gold is the only logical offline, globally neutral form-factor for securing digital values with non-bank like risk or regulatory requirements - $11K per Cubic Inch stored inexpensively and maintaining purchasing power over time. Gold as a physical commodity that holds value globally is superior to local systems of debt for cross border micro transactions • Gold as physical element Au – cubes, not coins – – – – – 18 Gold’s commodity value (for jewelry and heirlooms) held over millenniums due to its low marginal transaction cost (due to it’s density and tarnish-proof properties over many exchanges), coupled with its opportunity cost structure (gold’s commodity cost is composed of basic labor and energy, just like food) Gold as money was highly politicized during the centralized gold standard and ever-changing sovereign currency regimes Gold as money broke down as it became an inferior medium of exchange in an inter-connected world needing high velocity transactions in more complex economies However, gold’s value as a commodity will hold and grow, making it useful as a decentralized and secure store of value New and superior digital money for transactions still need links to natural systems, and natural systems of account: fiat and crypto were superior monies as a medium of exchange, but physically unanchored as a unit of account – which negatively leads to illogical inequality and an unanchored sense of environmental cost to growth The internet is transforming from an internet of communication to an internet of value, or “internet of money”. This transformation will have profound effects on the financial services industry by democratizing access to the global economy, potentially integrating up to 4 billion un-banked and under-banked over the next 25 years. This transformation provides opportunity for leadership in linking the growing market for digital-transactions to gold, a globally neutral asset uniquely positioned to secure digital values and empower individuals. - Roy and Josh “Bitcoin has burst, but could still revolutionize banking” -Financial Times, Oct 2014 “Bitcoin is exciting because it shows how cheap it can be to transfer money.” -Bill Gates, Oct 2014 “We find that while bitcoin is unlikely to displace gold as a commodity store of value, focusing on the value of bitcoin as a commodity, which bitcoin with a lower case “b” clearly is, misses what Bitcoin with a capital “B” is – a technology” -Jeff Currie, Goldman Sachs, 2014 “Call it bitgold…” -Bloomberg, July 2014 19 A New Global Operating System for Gold BitGold Inc. 334 Adelaide St. West 3rd Floor Toronto, Ontario M5V 1R4 Canada Investors [email protected] 1-800-854-7418 ir.bitgold.com