LOST HORIZON INC.

We're a mining company with proprietary extraction technology. The primary business is extracting gold and rare earths from documented North Dakota deposits. The technology is the competitive moat that makes it possible—it's patent-protected and gives us 20 years of exclusivity. But we're not in the business of selling technology; we're in the business of producing minerals from deposits that nobody else can access. Think of us as an oil company that owns the only drill bit that can reach a specific oil field. The technology matters, but the oil field is what makes it valuable.

Expansion strategy: Once we demonstrate it works in ND and establish production, we'll replicate the model in Alaska and license globally. But ND is the foundation—the deposits, the operational validation, and the initial cash flow generator.

We're NOT mining rock. We're processing sediments in place. Conventional mining moves millions of tons to surface for processing. We create engineered drainage networks in confining layers beneath mineral-bearing sediments, use cyclic mobilization and electrokinetic treatment to loosen sediments and attract conductive metals toward collection points, let gravity separate heavy minerals into our drainage system, then extract only pre-concentrated material.

The key difference: We treat the subsurface as a giant processing plant. Each well processes thousands of cubic feet of sediment across multiple cycles. The formation does the gravity separation work. Electrokinetics actively pulls gold and platinum group metals toward our collection wells. We extract only concentrates—not millions of tons of low-grade material. This fundamentally changes the economics and is why we can operate profitably where conventional mining failed.

Each component is proven: USGS documented the gold, horizontal drilling works (Bakken proves it - same rigs, same operators), hydraulic fracturing works (Bakken proves it right here in North Dakota), airlift recovery works (used successfully in underwater mining operations), gravity separation works (standard method since the 1800s), electrokinetics works (proven in soil remediation and mineral processing). What we're demonstrating with initial production wells is the economic parameters at scale—recovery rates, processing costs, and extraction efficiency. The first 2-3 production wells will generate this operational data within 90 days, validating the business model.

Three reasons: (1) Technology didn't exist - Hydraulic fracturing became economically viable and widely adopted only in the past 15-20 years. (2) Commodity prices - At gold prices below $1,500/oz, extraction wasn't profitable. At $4,000/oz, the economics completely change. (3) Knowledge gap - It takes specific geological knowledge of both the Canadian Shield source regions AND glacial transport patterns to understand where/how these deposits formed. We spent 5+ years compiling historical USGS data that most people don't know exists.

Biggest risk: The extraction technology doesn't work at commercial scale. We might successfully drill wells and fracture the formation, but the heavy minerals don't concentrate efficiently or the recovery rate is too low for profitable operation. Mitigation: Each component is proven separately, we're just combining them. Initial production wells will validate operational feasibility before major capital commitment. Even if North Dakota doesn't work as projected, the patent and technology still have value for other applications (Alaska, Atlantic Coastal Plain, global licensing).

Other risks: Resource estimates are lower than projected, permitting delays, commodity price decline, competition (though patent protects against direct replication). All mining ventures have geological risk—we mitigate with extensive historical USGS data confirming gold presence.

Risk/reward asymmetry. Seed investors get in at $5M pre-money valuation on a company that could generate billions in production value. Once the pilot proves extraction works, the company value increases dramatically. Early investors get the best terms because they're taking the technology risk. Once we demonstrate consistent extraction, future investors will pay much higher valuations. You're buying a stake in a cash-generating asset before it's proven—that's where the asymmetric returns come from.

The business case has extraordinary margin of safety. Our breakeven grade is ~1.0 g/ton, but documented regional grades are 3-6 g/ton—a 3-6x buffer before we lose money. Because we concentrate from large three-dimensional volumes (thousands of cubic feet per well) and only process concentrates at surface, the economics work even if grades are lower than expected. Even if the resource is 1/10th of our estimates, that's still 5-55 million ounces—a $20-220 billion gross resource. The pilot is designed to prove actual grades before we scale, so we'll know exactly what we're working with before committing major capital.

We're building a cash-generating business, not a flip. Lost Horizon intends to remain private and pay dividends from production proceeds. Once pilot extraction demonstrates profitability, investors receive quarterly distributions proportional to their ownership stake. At expected production rates, early investors could receive their full investment back within 2-3 years, then continue receiving dividends indefinitely.

Future liquidity options: If we eventually go public or spin off assets, your equity participates fully. But the primary return mechanism is ongoing dividends from profitable operations—similar to how private oil companies or family businesses operate. You're buying a stake in a cash-generating asset, not betting on a future exit event.