What’s your outlook for international exports? And what new developments do you foresee?

China, India, and Africa have a large focus on increasing their agricultural footprint, both from population growth, and an increase in the middle-class – which in turn increases the need for meat causing a shortage of grains for human use. We expect large exports of our products to be the norm in the next 5 years.

From the build standpoint, the world will continue pushing to solve environmental problems. Anything that helps, such as the new legislation taken in California, will be an indicator of more to follow internationally.

What are the prospects for growth capital expenditures over the next 12 – 24 months in the infrastructure of the business?

How do Standard & Poor’s ratings on companies in the sector incorporate government support?

How do agriculture infrastructure companies insulate themselves from the declining credit quality of their main customers?

Purebase’s intention will be to continue building longer-term relationships and/or contracts with its various partnerships.

How do you incorporate economic forecasts into your ratings on companies in the sector, especially its alternative scenarios?

Oil prices and interest rates have the most direct correlation to food costs and building stimulus.

How exposed are agriculture and construction infrastructure companies to economic slowdowns and volatility in commodities trade and prices in the countries and regions where they operate?

On the agriculture side, you have to eat, and even though more expensive, organic foods are on a huge uptrend due to health and the environment.
Construction side, infrastructure projects have huge budgets to stimulate the economy, so it looks to be on the increase unless interest rates climb.

What are the key economic indicators that drive ratings on agriculture and construction infrastructure companies?

Ratings all come from a stable economy, consistent unemployment rate, transportation costs, and customer base.

What is the outlook for agriculture companies in the coming years?

Markets and products have been coming off a low but are expected to continue an increase in demand world-wide with a growing population and increased natural disasters.

What was your revenue last year?

We are looking to begin sales in the third quarter, 2015.

Where and when do you do most of your business?

Arizona, Nevada, Southern and Northern California – March to December.

Who is your least profitable customer?

Too early to confirm.

What’s your most profitable product?

Too early to tell as product values are still being established and production rate is too varied at this point.

What do products cost to produce, and how much do you sell for?

The company is currently working on economy of scale to get the costs to a consistent level but expect it to be in the 30% margin range with products selling anywhere from $50 a ton to $1000 a ton depending on variables such as method of packaging, type of mixture, location of distribution, and volume of order.

What is the exit strategy?

The shareholders will be able to exit under Rule 144 when that becomes available, or in the open market if the company decides to register the stock.

What is the plan for future dilution?

The shares will be diluted by the number of shares from the $4.8 Million raise and then by the exercise of the warrants and then again by the $25 Million raise, and the associated warrant exchange if warrants are offered.

Unlike most resource companies, Purebase is not looking to continually raise capital to drill for larger and larger resources.

We have located and now control the resources needed for the near term future.

We have identified the need for these products and completed the testing and requirements for these products.

Studies have been completed, lab results completed and both of these will continue at a rate that is internally viable.

Large orders should be mostly financed (bank financing, no dilution).

What is the Series B offering?

The Series B Offering is a $6.00 per share offering with a warrant to purchase an additional share at $9.00 after the shares have traded above $_______________.

How to value the company right now?

The size of the various?resources?under company control?

How many years of supply presently, next year etc?

What volume of sales in 3 years. 5 years and 10 years would the company expect to do?

What are the profit margins?

What multiples are companies in the agriculture industry trading at?

What multiples are companies in the cement industry trading at?

What is your unique advantage in construction?

  • Better concrete
  • Better price
  • Better for the earth: Reduced Co2 and particulate matter
  • Strongly resists sulfate and corrosive attack
  • Improves durability and rebar seal
  • Excellent pumpability and finishability
  • Curtails efflorescence
  • Low permeability
  • Reduces segregation and bleeding
  • Compatible with all admixtures
  • Low heat of hydration
  • Increased strength
  • Lighter weight slurries

What is your unique advantage in agriculture?

  • Increases Arable (Farmable) Land
  • Reduces Water Use by
  • Promotes Regional Food Security
  • Synergistic Fit of Core Competencies for Vertical Market Integration
  • Genuinely Green Products
  • Environmentally Safe
  • Increases Agri-Yields

What type of money are you trying to raise in the short term? Next year? Next 3 years? Next 5 years?

The company expects to raise $25-50 million over the next year and continue to grow organically and through bank financing instruments unless further equity is need for aggressive positioning such as an acquisition.

What type of momentum / traction have you generated?

Purebase Grow products were developed to fulfill a need in the market to balance the ph levels and optimize nutrient uptake to naturally increase yields. Samples and tests have been sent and used by various tier one growers with great results, with the various certifications in the works this will allow for purchase orders to begin.

Purebase Build products have been developed and tested, and now meet the local requirements, which will initiate large and consistent orders locally.

Who uses these products and services?

Purebase Grow Products: Farmers, organic farmers, agriculture product suppliers, fertilizer companies, property managers, landscapers, golf courses, home owners, governments, NGO’s, World Bank, IMF.

Purebase Build Products: cement companies, ready mix companies, engineering companies, specialty cement products companies, governments, contractors, utilities, designers.

What are the profit margins like in the business?

Too hard to be accurate at this early stage of production, but expecting to be 30% plus at run state.

What is the long-term potential of the company?

  • Deep penetration into target markets
  • Wide span of new product development
  • Industry leadership in environmentally friendly products
  • Increased market share with new products and expanded customer base
  • Long-term sales viability
  • Long-term resource potential

Who is Purebase’s target investor?

Purebase’s target investors are high net worth individuals, and financial institutions that are interested in the company’s green message.

In other words, those who want to participate in an environmentally conscious company, like the potential size of our target industries, and feel this is where Purebase can excel, and dominate.

What is the next step for an Accredited Investor?

Do your own research on the industry, download from our website, call or email Purebase for an investor package. Once you have completed reviewing and speaking with an advisor, you can fill in a private placement form, and send in with your investment.

What is the use of proceeds from this raise?

Marketing of product, expansion of permits, further resource studies, closing costs for acquisitions, material testing, lab facilities and production of inventory, corporate infrastructure build-up, project/product development, staffing and facility resources, exploration, and tool up.

How much are you raising?

There are two capital raises planned (1) $4,830,000 and (2) $25,000.000 – an institutional round for expansion of production.

How to do you generate revenue?

Sales of two lines of product, one in agriculture and the other related to infrastructure and the build industry, as well as carbon credits.

What is the key to success for Purebase?

To be able to create long-term shareholder value through the acquisition, exploitation, and commercial development, of industrial minerals and natural resources. Through the successful implementation of a highly effective and efficient sales and marketing effort we will bring these scientifically developed and environmentally and biologically beneficial assets to consumers.

Describe the management team experience?

A. Scott Dockter | Director

Mr. Dockter, age 58, has been the CEO, President and a Director of the Company since September 24, 2014, and President and a Director of Purebase, Inc. since January 22, 2014. Mr. Dockter also serves as the CEO and a Director of US Mine Corp. from 2012 to the present. US Mine Corp. is a private company focusing on the development and contract mining of industrial mineral and metal projects.? Over the course of his 30-year career, Mr. Dockter has been responsible for the development of several large open pit and underground mines in the USA, having worked extensively in the states of Nevada, California, Idaho, and Montana. Mr. Dockter has had comprehensive involvement in all aspects of the mining business, including exploration, permitting, mine development, financing, operations, asset acquisitions, and marketing and sales. His experience covers a wide range of commodities including industrial minerals, gold, silver, copper and other precious metals. Mr. Dockter has over 18-years experience as a director in the public markets, and has broad experience in the debt and equity markets. He has personally owned mines, operated mines, constructed mine infrastructures (physical, production and process) and produced precious metals. Mr. Dockter holds a Class A Engineering License and a General Engineering License in the state of California. Mr. Dockter is not currently an officer or director of any other reporting company.

John Bremer | Director

John Bremer, age 64, will be appointed a Director of the Company as a result of the reorganization. Mr. Bremer is a seasoned executive, managing successful business’s for the past 35 years. He is a senior executive of U.S Mine Corp. and remains the current CEO of GroWest, Inc. a holding company with subsidiary companies in the heavy equipment rental and property development business in California. Mr. Bremer started his career teaching college level horticulture and soil science classes. When Mr. Bremer moved on from teaching, he opened and managed large mining operations for Riverside Cement, and California Portland Cement Company. During his time working with cement producers he was engaged in several cement solutions. An example was helping design material input methodologies to reduce the Nitrogen Oxide emissions from calcining cement. This interaction and knowledge of the cement industry has led to the creation of proprietary cement replacement products. Mr. Bremer also developed a large organic composting operation in Riverside County, which provided a successful management solution for bio solids from Los Angeles, Orange and Riverside Counties. Once that company completed its development and was well positioned, he successfully sold it to Synagro Technologies, the company continues today as a part of The Carlyle Group. Mr. Bremer has successfully developed several other properties in the Riverside County and Napa Valley, which included comprehensive experience in permitting processes. Mr. Bremer earned his Bachelor’s degree in Agri Business from California State Polytechnic University, Pomona, California.

Calvin Lim | Director

Calvin Lim, age 57, was appointed to the Board of Directors on October 27, 2014. Mr. Lim owned and operated two large Chinese restaurants in Sacramento from 1981 to 2003. From 1984 to 2006 he served as President of Hoi Sing Inc. – a company which invested in properties located in Hong Kong and China. He is co-owner of the Oriental Trading Company which is involved in the Chinese imports and exports business. Mr. Lim earned his bachelor’s degree in Business Administration from Sacramento State University. Mr. Lim is not currently an officer or director of any other reporting company.

Amy Clemens | Director

Amy Clemens, age 58, was appointed as the Chief Financial Officer and Corporate Secretary of the company on October 27, 2014. Ms. Clemens has over 30 years of experience in corporate finance, budget, internal audit, and business management. Before joining the company she served as the Chief Operations Officer for OPTEC Solutions, LLC, providing manned and unmanned aerial solutions to the Department of Defense. She also brings several years of experience working in the petrochemical industry. She is also President of an all-volunteer organization known as the Golden West Aviation Association. Ms. Clemens earned her bachelor’s degree in history, with a minor in business, and a master’s degree in history from the University of Texas at San Antonio. Currently, she is working on her degree in doctoral management from the University of Phoenix. Ms. Clemens is not currently an officer or director of any other reporting company.

What is the market opportunity?

Agriculture is a $775.8 billion a year industry in the U.S.

Agriculture and agriculture related industries contributed $775.8 billion to the U.S. GDP in 2012, a 4.8 percent share. The output of America’s farms contributed $166.9 billion of this sum – about 1 percent of GDP.

In 2012, 16.5 million full and part-time jobs were related to agriculture – about 9.2 percent of total U.S. employment.

Agriculture production is a major use of land, accounting for over half of the U.S. land base.

U.S. land area amounts to 2.3 billion acres with 1.2 billion acres in agricultural lands.

Fertilizer companies provide nitrogen, phosphorus and potassium that are used to help plants grow. In the U.S., corn crops use approximately 45% of the total available fertilizer. This is more than the combined 29% that wheat, soybeans, oilseeds, fruit, and vegetables use. The remaining 26% is used by other crops and uses other uses such as pesticides.

Crop production is concentrated in California and the Midwest.

California, Iowa, Illinois, Minnesota, and Nebraska are the five leading states in terms of value of crop sales.

With its large horticultural sector, California’s overall crop value is about three-quarters above that of Iowa, the second ranked state. In contrast to California, crop value in the next four leading states is based on grains and oilseeds, particularly corn and soybeans.

For other crops, Washington State typically leads the country in apple production, while Florida is the largest producer of oranges.

Agricultural production occurs in each of the 50 states and California leads the way.

California leads the country as the largest ag producer. In terms of sales value, California leads the country as the largest producer of agricultural products (crops and livestock), accounting for almost 11 percent of the national total, based on the 2012 Census of Agriculture.

Iowa, Texas, Nebraska, and Minnesota round out the top five agricultural producing states, with those five representing more than a third of U.S. agricultural output value.

Crops account for the largest share of the value of U.S. agricultural production.

Crops account for the largest share of the value of U.S. agricultural production. The value of production in the U.S. has risen over the past decade due to increases in production as well as higher prices. Yield gains for crops have been particularly important, although acreage has also risen recently in response to elevated prices since 2008. Falling prices led to a slight decline in value of crop production in 2013. While livestock production increased over the decade, prices were up more than 60 percent between 2003, and 2013, contributing to the rising value of livestock production.

Agriculture and fertilizer company ROI.

Despite a generally declining U.S. economy over the last decade, fertilizer companies generated massive excess returns. The following graph shows that the average fertilizer company outperformed the S&P 500 by over 750 percent over a 10-year period.

To put these numbers in perspective, that means the average fertilizer company has been growing 22.4 percent each year, giving them similar growth rates to celebrated tech stocks – Google (GOOG), and Apple (AAPL).

The cement market – a $250 billion dollar per year global industry.

In June 2013, The Economist Magazine estimated world cement makers annual revenue at $250 billion. It is estimated that about 60 percent of the market is mainly served by local firms, with six firms controlling 40 percent of the market – Buzzi, Cemex, Heidelberg, Holcim, Italcementi, and Lafarge.

According to the Portland Cement Association, the long-term U.S. cement consumption is expected to reach nearly 192 million metric tons by 2035, up from current levels of an estimated 86 million metric tons in 2014.

New opportunities could emerge for the cement industry as a result of a sustained and large improvement in paving costs, versus asphalt. As well, government policies aimed at energy independence, and green building suggest further opportunities for cement consumption growth.

The U.S. is the world’s third largest producer of cement, and California is the second largest in that market.

According to the PCA, given the expected growth in cement consumption, and considering the context of a potential reduction in domestic capacity, the potential for a 100 million metric ton supply gap may materialize. Decisions regarding how to source the U.S. market, domestically or through imports, may begin to re-emerge in the next decade.

Driven by healthy gains in the economy, and most construction segments, cement use will grow 7.9 percent in 2014 followed by increases of 8.4 percent in 2015, and 10.7 percent in 2016, according to the latest PCA forecast.

The U.S. is the world’s third largest producer. The increase will bring U.S. cement volume to 86.1 million tons for 2014, 93.3 million tons for 2015, and 103.2 million tons in 2016.

In the U.S., the top three producers by volume are Texas, California, and Missouri.

What does Purebase do?

Purebase is a diversified, environmentally friendly, natural resource and industrial mineral company. We provide better, and more ethically sound, and sustainable solutions to a wide range of markets, including the cornerstone markets of agriculture and construction.

Why should people invest in Purebase?

What we are doing is important, we’re uniquely positioned in the market, and we believe in it. We are tenacious in not wasting resources, and money. We believe in a culture of growth through ideas and science. And we have strong, steady, and experienced leadership. Apart from that good revenue, and massive market potential.

On a quantitative basis, resource is found and secured, products have been tested and proven viable to market, permitting allows for the immediate movement of product, marketing team working directly with company, management has extensive production experience, our contract mining company is in place, and there is a diversity of 2 vertically integrated businesses, both in big volume categories.

Speak to your investment advisor and have them look into the size of this market and the fact that Purebase is now going into the sales cycle, which is where cash flow begins.

What are Purebase’s long-term business goals?

  • Be recognized as the brand and company synonymous with working with the environment for the betterment of all.
  • Expand market share – Agriculture & Construction
  • Increased sales – new products
  • Increased sales – new customers
  • Expand production
  • Seek new asset opportunities that match our core business model
  • Improve profits and reduce production cost
  • Improve and refine logistic and distribution network

What are Purebase’s short-term business goals?

  • Get?Purebase’s?story and market understood by both investors, and clients who will be working with us.
  • Send out 500 samples of our?ag?products to potential customers over the next 6?months.
  • Begin supplying?SCM?product to one major cement company.
  • Resource expansion and development
  • Make sales and marketing a priority – add sales staffing, product white sheets, customer outreach
  • Develop customer base – distribute product cut sheets, market contacts
  • Unite corporate resources to improve and simplify workflows and productivity –
  • Attract and retain talented employees – technical staffing, top industry talent
  • Improved team collaboration – define administrative policies

What catalysts will affect the stock going forward?

The actual performance of the company in following its business plan and its success in meeting its sales projections. This includes estimated size of the various resources, purchase orders, and production timing.

Do you have any plans to advance or promote the stock?

The company will be starting a road show to meet with brokerages, banks, and funds in the 2nd quarter of 2015.

What part of the business do you think is being ignored that has more upside potential than Wall Street is giving it?

The company has really not had any public market exposure at this point but expects this to change over the next 6 months.

How close is Wall Street in terms of estimating Purebase’s earnings results?

Purebase is currently speaking with various firms on Wall Street and other good financing markets such as LA, Florida, Toronto, Germany and London. This is a 6-12 month process at which time Purebase feels it should have sales and new sales projects for the next 3-5 years.

What part or aspect of the business is giving you the most trouble now?

Limited funding, corporate resources, corporate infrastructure, corporate staffing, and no defined production schedule.

Who are the emerging competitors in the industry in which Purebase operates?

Small mom and pop specialty concrete companies. Though, concrete companies need to work together with companies such as Purebase to supply solutions to specific soil issues for the betterment of the industry and farmers.

Who are the Big Players and competitors in the construction and aggregate industry?

Lafarge, Holcim, Buzzi, Heidelberg Cement (Lehigh Hanson), Ash Grove Cement, Riverside, Cemex

Who are the Big Players and competitors in the agriculture industry?

Tiger Sol, Syngenta AG, Agrium Inc., Potash Corp, Helena, DuPont, Monsanto, BHP Billiton.

How does Purebase plan to raise capital in order to fund future growth?

Private placements of the company’s common shares, purchase order?financing.

What is the best use for the cash on Purebase’s balance sheet?

  • Marketing of product
  • Corporate Infrastructure build-up
  • Project/Product development
  • Staffing and facility resources
  • Exploration
  • Material testing laboratory services
  • Engineering and Permitting
  • Tool up

What are the risks associated with the sourcing of raw material, or holding the line on costs of services?

Identifying the exact location of source of product for the next 6 months, 12 months, 3 years is the best way to mitigate risk and this is done through the official mine plan submitted to the state.

Mobilizing the correct equipment for the most efficient time frame is also a huge factor to contain costs. Other factors include:

  • Project development delays – weather, environmental restrictions, water shortage, funding
  • Regulatory restrictions – agency approval foot dragging,
  • Permitting Pozzolan north – delays – exploration, engineering, design
  • Transportation/fuel cost – fluctuations daily, unknown process locations
  • Skilled labor shortage – remote site locations, training

Where do you see sales trending in the next 12 to 24 months?

In the short-term, we’re concentrating on getting samples out to accounts over the next 6 months, and then sending out small orders to clients who are following up on initial samples. In 18 months, production should be up and running at regular rates to fulfill orders. Sales are expected to accelerate at the 18-24 month mark as orders from all testing becomes consistent. Apart from that:

  • Course grade potassium sulfate
  • Milled potassium sulfate
  • Course Grade humate
  • Pit run Pozzolan south
  • Milled Pozzolan south