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 to loosen sediments underground, 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. 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). 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, positioning us for optimal public market valuation at IPO, as mining companies trade on resource economics, not technology concepts.

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 20-50x return potential within 12-18 months just from the public listing—before we've even demonstrated large-scale production works. By the time we demonstrate consistent extraction at scale, the valuation will be significantly higher and the asymmetric opportunity is gone. You're investing at $8M pre-money in a company that could be worth $200-500M within a year. Early investors take the operational risk but get exponential returns if it works.

The business case has extraordinary margin of safety. Because we concentrate from large three-dimensional volumes (thousands of cubic feet per well) and only process concentrates at surface, the economics work at extraordinarily low average grades. Even if the resource is 1/10th of our conservative estimate (1.6M oz instead of 16M oz), that's still a $6.4 billion gross resource. At our 80% net revenue share, that's $5.1 billion over 20 years, or $255M/year. Even significant downside scenarios result in a highly valuable company. The conservative estimate (16M oz = $64B gross) is based on limited resource modeling and doesn't account for multiple mineralized zones or full geographic extent—initial drilling will refine these estimates.

Targeted public listing Q2 2026 (9-12 months after seed funding) provides liquidity opportunity. Once trading on NASDAQ under ticker LOST, seed investors can sell shares in the public market. However, there may be lock-up provisions (typically 6-12 months) to prevent immediate mass selling that would impact stock price. Most sophisticated investors will hold through initial drilling program (Months 10-24) to participate in value creation as extraction is validated and scaled. The 20-50x return at public listing is just the beginning—longer-term holds could deliver significantly higher returns if operational validation proceeds as planned.