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Strategic Capital Finance Mike R. Drotar, MBA, CIM, DMS, CCE Chief Executive and Investment Officer

Description of the Service Clients receive a detailed listing of the personal equity portfolio of the Chief Executive and Investment Officer (M. Drotar) of Strategic Capital Finance (SCF) on a quarterly basis. As part of the dynamic investment process clients also receive real time updates on equity security transactions as they occur. Periodically, a newsletter is sent to clients including a performance update on the equity portfolio which encompasses a yield comparison to the S&P500 and TSX indexes. The current equity portfolio of M. Drotar is well diversified amongst several industries and North American companies, and also includes exposure to emerging and European markets. Clients conduct their own transactions, usually via a discount brokerage firm. Clients can mirror exactly the equity portfolio of SCF but have the flexibility to further customize including purchasing other company equities if they wish. The client at all times has control over their own funds so there is absolutely no risk of fraud taking place.

Value to the Client In essence the client is obtaining active, professional equity investment research services for a heavily discounted fee. The process is both cost effective and easy for the client. SCF is able to follow this business model because of extremely low overhead expenses compared to competitors in the market place. This is a unique, innovative, and cost effective approach in investment services. Recently, the return on the SCF equity portfolio effective June 9, 2014 was estimated at +12.00% and in calendar 2013 +24.45% but stock market average returns will likely be significantly less going forward. While future returns cannot be guaranteed by SCF, or any other competitor, the portfolio has been recently performing above the indexes. As well, SCF maintains a very long term approach to equity investing given the potential, normal, short term high volatility. Ideally, an investor has a 10+ year time horizon in which equities have proven to be very successful as investments based on historic empirical evidence. Note the investing time horizon should be ‘life expectancy’, and not ‘retirement age’ as many individuals make this mistake. SCF has developed a proprietary, sophisticated software model that calculates an estimated fair value for individual stocks, the valuation methodology is based on objective data. This valuation model provides the basis to determine whether the price of a stock is either too high or presents an opportunity. The information that clients receive represents the personal equity portfolio of M. Drotar, so the client is guaranteed that SCF is always attempting to optimize the risk and reward relationship. Many competitors sell product to customers that maximize their salesperson’s commission, not the clients’ wealth. With the investment management methodology implemented the performance of the SCF equity portfolio has been very successful on average over the years. All SCF client information is strictly confidential and never shared. No sales pressure at any time. A major benefit to SCF clients involves the savings in investment fees. As well SCF has implemented a referral program which can reduce the fees up to 60%. The fees charged by competitors can be staggering but a lot of individual investors don’t have the time to calculate the impact on their individual long term wealth. An example illustrates the financial implications over a 10 year time period:

SCF fees are extremely low versus the competition. Over a 10 year time period the savings in fees could easily be $100,000+ on a $500,000 portfolio, and $200,000+ on a $1 million portfolio. Email Strategic Capital Finance scfinc@telus.net for more details.

Profile of Chief Executive and Investment Officer Twenty+ years financial simulation software development and investment management experience, positions held at major financial institutions at the Vice President, Treasury and CFO senior executive leadership level. MBA (With Distinction) – specialization in finance (Scotland), Derivative Market Specialist (Honours), Pacific Coast Banking School Graduate (Honours), Certified Investment Manager designation. Executive Management development programs attended – Harvard Business School, Stanford University, Wharton School, INSEAD University (France), New York University, Kellogg School of Management, New York Institute of Finance, Ivey Executive program, and Certified Chief Executive designation. Focused and intense study on financial market history and best practices related to long term investment management. SCF is a Christian based firm, strives to adhere to biblical principles in financial management.

A Typical SCF Client Sophisticated with a strong financial acumen. High net worth affluent investors, typically with $500,000+ to invest but $200,000 is still very viable. Comfortable with technology including conducting equity transactions through a discount broker. Understands the significant impact of investment fees on wealth creation and has a long term time horizon. Typically holds equity securities for the long term, and does not trade frequently

Equity Portfolio June 2014 Well diversified, 17 industries / sectors plus indexes. Top 3 industries / sectors represent 46.09% of the portfolio. Canadian stocks 58%, U.S. stocks 38%, European/Emerging markets 4%. Number of stocks = 50. Number of stocks > 1% of portfolio = 30. Top 10 holdings represent 47.34% of portfolio. Top holding represents 6.93% of portfolio. Gross average dividend yield 2.47%. Canadian stocks 58%, U.S. stocks 38%, European/Emerging markets 4%.

Contact: Mike Drotar, Chief Executive and Investment Officer	scfinc@telus.net