CRAFT BEER & CIDER AT THE NEXT LEVEL

Craft Brewer In < 5 Years TOP 50

A ROUND

INTRODUCTION  This  document  will  offer  an  introduc3on  to  Mine  Sha6  Brewing,  

including  our  plan,  beers,  ciders,  growth,  facili3es,  team,  and  mission.  

       

DEAL  SUMMARY  

Team– Ours is a team of pioneers and master brewers who helped forge the art of craft beer in America by producing beloved brews of award-winning quality that have stood the test of time and become part of the landscape.

Market–Craft Beer is up 22% from $14.4B in 2013 to $19.6B in 2014, with long-term, double-digit growth forecast for years to come. Cider is projected to quadruple by 2017.

Products– Expert Craftsmanship, Extraordinary Beer & Cider. Through an unwavering commitment to quality and consistency, we strive to produce outstanding beer & cider that reflects the rich heritage of our region and meets the highest expectations.

Source: Demeter Group, Farlie Turner, Mintel, BA

Brand– The Mine Shaft brand is resonating locally and nationally with consumers as well as distributors. Distributors and brokers are cold calling now to get MSB product.

Consumers– Craft beer and cider drinkers are consuming more, exploring the category, and choosing craft beer and cider over value beers and wine.

Investors– Investors will be investing $9.4M in A Round equity. Investors receive 8% Annual Preferred Interest. In recent recorded transactions, strategic investors have paid multiples of 12X to 20X in the Craft & Cider industry.

Goal– To become the fastest growing brewery by 2016 and a nationally recognized Top 50 brewery in under 5 years.

Exit– Have investors out in five to six years. Private Equity, Acquisition/Strategic Partnership with Major Players, Regional Players, and IPO.

TOP 50

Mine Shaft Brewing’s Black Card Club Membership offers exclusive access and opportunities like no other beer or wine clubs, including: First access to limited production beers and ciders at the brewery. Special opportunities to purchase exclusive releases. Advance notice and special pricing on brewery events, including head brewer dinners. Pre-sale all-access purchase opportunities for our Summer Concert Series and other events. Discounts on dining and merchandise. Dedicated Concierge Service to assist with purchases, event information, dinner reservations and information about our beers and ciders. Exclusive opportunities for dinner along with game/event tickets with our athlete ambassadors: NHL, MLB, MLS, PGA, Olympic Medalist. This is exclusive access meant to create lifelong memories.

WHAT  MSB  INVESTORS  ARE  SAYING    ABOUT  THE  OPPORUNITY  

“After drilling into the concept and plan with Tim and his team and helping in drafting the deal structure I decided to invest and even got my family to invest too. This is an outstanding team with substantial relevant operating experience and a differentiated plan for entering the craft beer/cider space. The craft beer/cider market continues to grow rapidly with plenty of opportunity remaining for new brands like MSB.”

Alan, Investment Professional, NYC Private Equity Firm “MSB has really stood out to me as a best-in-class opportunity. From a management team with deep, relevant experience to a comprehensive marketing and business plan, and a product that is already in high demand, this is as close to can't miss as you can get. I can't wait to see this come on-line and let the numbers support what I'm confident will be the successful byproduct of a well-vetted strategy.”

Dan, CFO of Global Bulk Raw Materials Trading and Logistics

 MSB  TEAM’S  LONG  HISTORY  IN  CRAFT  BEER  

Mine Shaft Brewing's passionate team has worked in the beer category, specifically the craft space, since the 70's. Leveraging our experience in the super premium, premium, premium light, sub-premium, malt liquor and flavored malt beverage categories, our brew crew has been involved in the development and introduction of both specialty and seasonal brews, including brewing, packaging, marketing and sales. To this day our team continues to brew world class, award- winning beers. Below are some of the craft brands and beer brands with which our group has been involved.

THE  HUGE  MARKET  OPPORTUNITY  

“The whole (U.S.) cider category is only 0.2% of the beer market and in England and Ireland, it’s 15 to 20%. There is so much upward traction

for the category, it’s almost mind numbing.”

$1B+ Rapid craft facility expansion is needed By 2020

Craft beer jumps 22% from $14.4B in 2013 to $19.6B+ in 2014

Beer is a $100-billion-a-year industry (based on U.S. sales).

U.S. hard cider sales are projected to quadruple by 2017.

Source: Farlie, Turner & Co., Demeter Group, Forbes

LANDSCAPE  -­‐  BIGGER  IS  BETTER  

“If you’re not a top 50 craft brand, you’re less than a $10MM business. The Real fight in this industry is on-shelf. You need to get as big as possible now, but you need to do it prudently.” -Craig Farlie, Farlie, Turner & Co.

60K BARREL (BBL) CAPACITY DAY ONE

MARKET SHARE EXAMPLE COMPETITIVE LANDSCAPE

MSB 60K BBL

70%  

25%  

5%  

Multinationals - Craft beers continue to erode legacy share

National and Regionals - Aggressively investing in future

market share

3000+ Small Brewers- Will be left behind and will continue fighting for an ever smaller share of the pie as larger

Craft brewers take market share

IT  IS  All  ABOUT  PERSPECTIVE    

All in a day’s work for the seasoned MSB team!  

DISTRIBUTORS  WANT  MSB  NOW    

Scott Stiltz Craft Brand Manger for M & M Distribution, UT / Coors Brands …

“If MSB was producing now M & M would want you in UT, WY, NM

We do not see anything like MSB from other new craft players let alone existing craft players”

Dane Carlson, President of Carlson Distribution of UT / Miller, Sam Adams…

“MSB can take 35 to 45% of the local market in year one with Carlson.

MSB Ales alone could do 200k cases the first year ”

John Sadowsky CEO of Atlas Distribution, MA

Miller, Sam Adams…

“Love everything about MSB, Team, Branding, Packaging, Lines”

200K Cases = 14K BBLS

A  Majority  If  Not  All  IniDal  Capacity  Will  be  Accounted  for  By  the  Time  MSB  Opens  

MSB  BRANDING  

While CRAFT sells product, the BRAND creates an acquisition target.

We are building a brand, not just a craft.

“An eye-catching label that makes a brand instantly  recognizable from 10 to 20 feet away is a plus, while one  with too many tiny details might appear as nothing more than a colorful blob.”

Curtis Mann, Craft Buyer Raley’s Bel Air Nob Hill Foods NorCal

“Beyond the quality of the liquid inside the bottle, strong packaging and labeling, the eye-catching face of a brand, is becoming paramount as a means of standing out on shelves tasked with propping up more and more craft SKUs than ever before. If you’re not seen, you don’t exist.”

Ian McLean, Founder and Creative Director McLean Design BevNET FBU (Food and Beverage University)

DIFFERENTIATION SETS MSB APART

GOOD DESIGN IS GOOD BUSINESS  

MSB CREATES AN ASPIRATIONAL PLACE IN CONSUMER’S LIVES AND HEARTS

 BRANDS  THAT  OUTPERFORM  COMPETITION  ON  

THE  PRODUCT  INTRINSIC  LEVEL  WIN  THE  CATEGORY    

Southeast Perspective View - Open Space Side of Building

Northeast Perspective View - Parking Side of Building Entrance Perspective Close Up

Southwest Perspective View - Open Space Side of Building

MARKETING  FOCUS  

Brand Development: Packaging Design

Website Development: CMS, SEO, Email Club

and SMS

Social Media: Facebook, Twitter, Pinterest, LinkedIn,

Tumblr

Public Relations: Press Kits, News Releases,

Story Shopping, Blog Postings, Investor Relations

Promotional Products: For purchase Online and at the

Restaurant store Consumer Give-a-ways

Promotion At Events: Beer Festivals, Community

Activities, On- and Off-premise Tastings, Industry

Competitions, Trade Shows, Partner Promotions

Merchandising Support: banners, posters, taps, price

cards, neck ringers, glassware, wearable's, coasters, static clings, distributor incentives &

samples

Traditional Advertising: (limited) - Focus on

organic brand growth through Social Media and

brewery visitors

SALES  STRUCTURE  Communicate Emotion & Trust, The Only Way to Win is to be Talked About

ONE NATIONAL DIRECTOR NINE REGIONAL MANAGERS

Regional Sales Managers and State Sales Managers maintain national and key customer

relationships directly.

STATE AND MULTI-STATE SALES MANAGERS Vary by region from 3 to 9 State Sales Managers

depending on density or population in region.

INSIDE SALES AND SALES SUPPORT TEAMS Reports to National Sales Director and assist

Regional Sales Managers & State Sales Managers with adding new accounts, servicing existing accounts and appointment scheduling and

confirmation.

SALES TARGETS Distributors / Retailers / Consumers

Sales people are value added consultants.

PAC ALASKA

ROCKY MOUNTAIN PACIFIC

SOUTHWEST SOUTHEAST

CENTRAL PLAINS

GREAT LAKES

NORTH-ATLANTIC

MID-ATL

ATHLETE  AMBASSADORS  Athletes provide distributors, retailers, and consumers brand awareness through

Autograph Signings, Social Media, Contests, and Give-A-Ways

NHL George Paros - Montreal Canadians Victor Stalberg - Nashville Predators Devin Setoguchi - Winnipeg Jets Zach Parise - Minnesota Wild Torrey Mitchell - Minnesota Wild Ryan Malone - Tampa Bay Lightning Drew Stafford - Buffalo Sabers Trevor Lewis - LA Kings Pavel Datsyuk - Detroit Red Wings Chris Draper - Detroit Red Wings Dylan Olsen - Chicago Black Hawks Joseph Pavelski - San Jose Sharks Jamie McBain - Buffalo Sabers * Athletes comp is part of the option pool. ** Players may be traded. *** May add NFL, MLS, PGA, Ironman & NBA Athletes. **** This page is a sampling of MSB Athletes.

U.S. Olympic Athletes Valerie Fleming & Shauna Rohbock - 2006 Silver Olympic Medalists, 19 World Cup Medals, 3 World Championship Medals, 7 Track Records Billy Demong - Nordic combined skier & Olympic Gold Medalist. Demong is a four-time Olympian competing in Nagano, Salt Lake City, Torino and Vancouver. National Women’s Soccer League Leslie Osborne - Pro Athlete at Puma, TV Analyst at Pac-12. Network and Player at National Women's Soccer League Chicago Red Stars.

FOUNDING  TEAM  Tim  Nemeckay  Managing  Member  -­‐  Tim  brings  to  Mine  Sha6  Brewery  vast  experience  in  the  cra6  beer  space  in  diverse  domains  like  finance,  sales,  and  consul3ng.  Tim  has  been  an  entrepreneur,  advisor,  consultant,  investor,  and  execu3ve  of  companies  in  Beverage,  Auto,  Banking,  Green  Energy,  and  Consumer  Goods.    Tim  has  had  extensive  involvement  in  successful  new  businesses,  including  capitaliza3on,  business  development,  sales,  marke3ng,  branding  and  PR.  Tim  also  brings  a  substan3al  network  of  business  rela3onships,  vision,  and  execu3ve  management.  Ray  Klimovitz  Senior  Advisor  -­‐  Ray  is  currently  the  President  of  Klimovitz  Brewing  Consultants,  Inc.  doing  business  in  the  Wisconsin  area,  where  he  acts  as  Alterna3ng  Proprietor  (AP)  Brewmaster  for  various  beverage  clients.  His  past  clients  include  Sleeman  Brewing  &  Mal3ng  (Guelph,  Ontario,  Canada),  City  Brewery  (LaCrosse,  WI),  Harpoon  Brewery  (Boston,  MA),  Allagash  Brewing  (Portland,  ME),  New  Century  Brewing  (Boston,  MA),  and  Slammin’  Sam  Beer  Co.  (Pinehurst,  NC).    Ray’s  beverage  experience  extends  into  new  product  development,  as  he  co-­‐founded  IZZE  Beverage  Co.  in  Boulder  (CO),  where  he  was  responsible  for  product  development  and  produc3on.  Ray’s  40+  years  of  experience  in  the  beverage  industry  started  at  Four  Roses  Dis3lling  Company  in  Bal3more,  where  he  held  the  posi3on  of  Whiskey  Chemist.    From  there,  Ray  moved  to  Carling  Brewing  Co.  in  Bal3more  where  he  was  Brewing  Chemist,  QA  Manager,  Asst.  Brewmaster  and  Brewmaster.    Ray’s  professional  experience  includes  tenure  at  Joseph  Schlitz  Brewing  Co  (Milwaukee)  and  finally,  The  Stroh  Brewery  Company  (Detroit)  where  he  was  Corporate  Master  Brewer.  

John  Logan  CFO  -­‐  John  brings  a  seasoned  career  as  a  CPA,  CEO  and  CFO.  John  started  an  outsourcing  company  in  1992  that  grew  to  $12MM  in  five  years,  and  was  one  of  the  Inc.  Magazine’s  Fastest  Growing  Companies  in  1997.  John  merged  the  company  and  became  CEO  in  2001,  and  sold  his  share  in  2004.    John  graduated  with  a  degree  in  Accoun3ng  and  spent  six  years  with  one  of  the  "Big  8"  CPA  firms.  Post  that,  he  spent  ten  years  with  two  large  organiza3ons  as  CFO,  and  became  experienced  in  opera3ons,  mergers  and  new  business  crea3on.    ScoS  Rozek  Marke3ng  &  Research  -­‐  Scoe  has  over  30  years  of  experience  in  marke3ng,  market  research,  new  product  development,  and  adver3sing,  including  12  years  of  experience  with  the  Stroh  Brewery  Company.  He  was  directly  involved  with  coordina3ng  the  expansion  of  the  Stroh  Brand  into  20  western  states  a6er  the  acquisi3on  of  Schlitz.  Scoe  was  also  heavily  involved  in  the  brewery’s  new  product  efforts.  As  brand  director  for  the  Stroh’s  brand  family  for  three  years,  he  managed  annual  marke3ng  budgets  of  $15-­‐20  MM,  and  was  responsible  for  all  marke3ng  func3ons,  such  as  -­‐  brand  planning,  adver3sing,  packaging,  promo3ons,  pricing,  and  research.    Since  1994,  Scoe  has  been  the  co-­‐owner  of  Unisearch  Partners,  Inc.,  a  custom  market  research  company  specializing  in  integrated  quant-­‐qual  techniques  and  qualita3ve  studies.  The  firm  has  been  an  industry  leader  in  Super  Bowl  ad  tes3ng  for  over  15  years,  tes3ng  SB  ads  for  clients  like  Frito-­‐Lay  (Doritos),  Anheuser-­‐Busch,  and  PepsiCo  among  others.    

*Pseudonym, more detailed Info Available upon request  

James  Weinberg  Opera3ons  -­‐  James  brings  13  years  of  materials  /  purchasing  manager  experience  from  The  Stroh  Brewery  Company.  He  purchased  over  $600  MM  annually  in  packaging  materials  for  eight  domes3c  breweries.    He  brings  procurement,  inventory  control,  package  development,  and  service  levels  with  25  major  suppliers.  He  was  responsible  for  the  total  logis3cs  of  all  packaging  materials  including  price  nego3a3on,  produc3on  quan33es,  inventory  control,  warehousing,  and  graphics  coordina3on.  Carson  Jackson*  Head  Brewer  -­‐  Carson  has  been  professionally  brewing  as  Brewmaster  for  one  of  the  na3on’s  top  cra6  breweries,  and  has  been  awarded  several  medals  at  the  Great  American  Beer  Fes3val  for  his  outstanding  work  in  the  field.    Carson  currently  leads  a  team  overseeing  all  aspects  of  cra6  products,  and  acts  as  technical  manager  and  project  manager  for  a  canning  opera3on  and  an  automated  brew  house,  with  mul3ple  fermenta3on  vessels.  Carson  is  responsible  for  the  integrity,  quality  and  3mely  produc3on  of  all  MSB:  Beers,  Ales  &  Ciders.  Diego  Rivera*  Area  Sales  Manager  -­‐  With  over  6  years  of  account  management,  marke3ng,  promo3ons,  and  sales  experience  in  the  beer  and  outdoor  industries,  Diego  brings  immediate  access  and  an  established  rela3onship  with  the  big  six  AB  wholesale  distributors  here  in  Utah  and  several  outdoor  sports  rela3onships.    Diego  currently  manages  a  revenue  base  of  over  $5M.      

FOUNDING  TEAM  Bernie Pekor Overseas Sales Advisor - Bernie brings in 16 years of Stroh Brewery experience including Project and Pricing Analyst, National Retail Sales Administration (Puerto Rico), and International Sales and Marketing. Bernie developed and executed sales strategies in Asia, Europe, Australia/New Zealand, Middle East Asia, Africa, Latin America, and the Caribbean. He’s managed international sales reps, and planned, directed and coordinated marketing efforts. He expanded private label products in Japan, Taiwan, South Korea, and Brazil, and established a joint venture with Rajasthan Breweries, resulting in the first foreign beer to be sold in India. Martin “Marty” Ruffalo Packaging Advisor - Marty’s career has spanned over 30 years in the beverage packaging sector. He held several senior management positions for over 18 years with Ball Corporation - North America’s largest producer of aluminum beverage packaging. These roles included Senior VP - Sales and Marketing for both Ball Beverage can and plastic bottle divisions. Prior to Ball Corp., Marty was the Operations Controller for the Stroh Brewery Can Division in Detroit for 8 years, where he was responsible for the planning of both the financial and manufacturing functions of this multi-plant operation.  

Leslie Burnes Brand Management Advisor - Leslie brings in vast experience with New Product and Branding, including 10 years with Stroh Brewery and 4 years with Walt Disney. Leslie started her career with Stroh Brewery in pricing and worked her way up as Corporate Pricing Analyst, Field Pricing Analyst, Associate New Products Manager, and then Senior Associate Brand Manager, where she was responsible for marketing functions for all the new products.

She supervised new product introductions from initial concept through to the market launch. She developed and implemented brand advertising, creative and media plans, national consumer promotion plans, and regional refund programs. She managed design and production of package graphics and merchandising materials.

Dan Jankowski National Sales / Distributer Relations Sales Advisor - Dan brings over 30 years of outstanding industry management experience to Mine Shaft Brewing. Dan worked for over 17 years for Stroh, Schlitz, and Miller Coors as a district, zone, and unit sales manager.

In addition, Dan also worked on the distributor side of the business for 18+ years in positions ranging from Sales Manager, Director of Sales/Operations, and General Manager.

Ed Benfield Consumer Research Advisor - Ed has over 30 years of experience as a professional market researcher on both the client and the supplier sides of the business. He is an expert in consumer research and an accomplished focus group moderator. Ed has been the co-owner and president of Unisearch Partners, a custom marketing research and consulting company since 1994. He has 13 years of direct beer research experience as the manager and director of market research at the Olympia Brewing Company in Washington, and the Stroh Brewery Company in Michigan, and has served major clients in the beer industry during his entire 20 years with Unisearch. Jay Stevens Athlete Liaison / Marketing, Event Management Advisor - Jay brings on pro athletes as product ambassadors into retail, distributor, and club channels. He is also a Firefighter Paramedic for Unified Fire Authority, and the goalie for the Utah Grizzlies. Charlie Whittington Key Accounts / Business Development Advisor - Charlie brings in multiple years of experience in the regional and territory sales, and has been a top achiever in all his previous sales management roles. In addition two Charlie's 7+years on professional golf tours. Richard Burnes Brand Management Advisor - Richard brings over eight years of experience with Stroh Brewery. He spent four years as Pricing Analyst (Corporate Pricing), an additional two years as Associate New Product Manager (New Product Development), plus three more years as Associate Brand Manager for the Stroh’s brand.    

LEGAL  &  ACCOUNTING  

Karl Israelsen Carman Lehnhof Israelsen LLP Salt Lake City, UT http://www.clilaw.com Steven Bowers Welzien / Bowers Certified Public Accounts Park City, UT http://www.wb-cpas.com

For more information, please contact: Tim Nemeckay

tim@mineshaftbrewingpc.com 954-295-5032