2016.07.21 summary kona gold mining v1 no number

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KONA GOLD MINING CORPORATION A NEVADA MINING COMPANY LOCATED IN THE HISTORIC COMSTOCK MINING DISTRICT KONA Disclaimer: Not an Offer to Purchase or Sell Securities. This overview is for informational purposes and is not an offer to sell or solicitation of an offer to buy any securities in Kona Gold Mining Corporation. or its subsidiaries (Kona Gold LLC) and may not be relied upon in connection with the purchase or sale of any security. Shares in Kona Gold Mining Corporation, if offered, will only be available to parties who are “accredited investors” (as defined in Rule 501 promulgated pursuant to the Securities Act of 1933, as amended) and who are interested in investing in Kona Gold Mining Corporation on their own behalf. Any offering or solicitation will be made only to qualified prospective investors pursuant to a confidential offering memorandum, and the subscription documents, all of which should be read in their entirety.

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Page 1: 2016.07.21 SUMMARY Kona Gold Mining v1 no number

KONA GOLD MINING CORPORATIONA NEVADA MINING COMPANY

LOCATED IN THE HISTORIC COMSTOCK MINING DISTRICT

KONA

Disclaimer: Not an Offer to Purchase or Sell Securities. This overview is for informational purposes and is not an offer to sell or solicitation of an offer to buyany securities in Kona Gold Mining Corporation. or its subsidiaries (Kona Gold LLC) and may not be relied upon in connection with the purchase or sale of anysecurity. Shares in Kona Gold Mining Corporation, if offered, will only be available to parties who are “accredited investors” (as defined in Rule 501promulgated pursuant to the Securities Act of 1933, as amended) and who are interested in investing in Kona Gold Mining Corporation on their ownbehalf. Any offering or solicitation will be made only to qualified prospective investors pursuant to a confidential offering memorandum, and the subscriptiondocuments, all of which should be read in their entirety.

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WEAREREADY!

KONA GOLD MINING CORP

Kona Gold, LLC owns or controls mining claims for over 600 contiguous acres of mineable land in Lyon County, Nevada. We are fully permitted to commence mining operations utilizing the proceeds of the proposed loan. Management anticipates achieving a rigorous production rate in the Spring of 2016 pursuant to the financial projection depicted in this presentation.

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WEAREREADY!

COMPANY HIGHLIGHTS – KONA GOLD

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• Kona Gold, LLC was originally formed in June 2011.

• Kona Gold’s assets & operations are located in the historic Comstock Mining District, Mound House, Nevada; patented claims are located on the Columbia and Columbia South

• After 4 years of validation and planning, full Permitting was completed December 9, 2015 with local commitments to best in class environmentally-friendly mining practices:

o On October 2, 2014 the Company received approval for a Special Use Permit (SUP) from the Lyon County, Nevada Board of Commissioners.

o On December 9, 2015, the Water Pollution Control Permit (WPCP) was granted by the Nevada Department of Environmental Protection (NDEP).

• The Company has invested more than $4,000,000 to identify, test/validate and acquire valid mining properties and claims

o Geological reports confirm an average minimum of .10 ounces of gold per ton of ore

o Current Pilot Mill site is set-up to process 40-100 tons per day, 30 days per month with expansion plans to process up to at a minimum of 400 tons per day commencing in year 2.

o All machinery for processing is on hold and ready to be moved into the Pilot Mill Site, which is currently under a long term lease by Kona Gold

• 3,000 tons of Kona owned ore was previously excavated and will quickly begin processing 40 tons per day the existing ore at our operational Pilot Mill Site with funding

o The 3,000 tons will be processed at the Pilot Mill Site upon commencement of operations.

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WEAREREADY!

INVESTMENT HIGHLIGHTS – KONA GOLD

• Kona seeks a senior secured loan of $3,500,000 backed by UCC filings in specified equipment and property of Kona Gold, LLC (uses are specified in Kona Financials on Cap Ex Mill 2 tab)

• Loan Proceeds will be used to acquire:

o $1.4mm of equipment to commence mining operations.

o $1.3 mm for accretive acquisitions of specific assets and claims

o $800k will be used for working capital in the effort to commence operations.

• Within 90 days (or less) of funding, a 2000 sq. ft. Pilot Mill will be ready to commence currently excavated ore owned by Kona. A 2nd 4000 sq. ft. mill circuit will be built (both Mill Circuits to be within an existing 6000 sq. ft. facility) and online within 180 days or less post funding and ready to commence production of ore mined from the Columbia

• Kona Gold’s team is ready to move into completing infrastructure & excavation following funding, in synch with all permitting approvals

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WEAREREADY!

2016 OUTLOOK FOR THE GOLD MARKET

Gold Year-End Forecast $1,200/oz., $1,400 For 2016 – Capital Economics 10/8/15

**Gold price as of March 28, 2016: $1,221 per oz.

“Although gold now seems to be on its way to end the year below its January high of $1,300, having backed off from recent gains, analysts from one U.K.-based research firm say it may see some relief ahead. Gold should benefit further from a recovery in other commodity prices – notably copper and oil, consistent with a revival in demand from emerging markets and a pick-up in inflation expectations,” says Julian Jessop, head of commodities research for Capital Economics, in a January, 2016 report.

"A major headwind for the yellow metal has been concerns about a sharp slowdown in China, which would undermine gold demand", he explains. “However, we expect the news from China to improve in the coming months, lifting the prices of both copper and gold. Another factor weighing on gold has been the lack of demand for inflation hedges. Correspondingly, if we are also right that oil prices are set for a gradual recovery, gold should benefit too. Overall, we remain very comfortable with our relatively upbeat view on the medium-term prospects for the gold price, reflected in our end-2015 and end-2016 forecasts of $1,200 and $1,400.”

Source: Allen Sykora, Kitco News

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WEAREREADY!

MINING CLAIMS CONTROLLED BY KONA

Kona Gold Mining controls over 600 acres of contiguous mining claims in Lyon County, Nevada. The Company believes the density of gold verses silver along our claims is validated as superior to surrounding properties. The Columbia site is located 4 miles south of Virginia City and 1 mile south of Silver City. The Company believes deposit levels are such that it will take 30 plus years to deplete our current claim holdings.

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WEAREREADY!

KONA CONCENTRATION

PROJECTIONS VS. REALITY

Our financial projections are based on a conservative case of .10 ounces of gold per ton processed. However, our actual assay-drill reports show much higher concentrations.

Gold Concentration Yields: #1: .205 (+46%) #2: .262 (+87%) #3: .222 (+58%). The Company utilizes this conservative yield case to de-risk any timely pay back of principal, interest and bonus payments to our investor.

#1 #2 #3

* See Appendix for close up images7

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WEAREREADY!

FINANCIAL ASSUMPTIONS

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WEAREREADY!

MINING SITE(S) PLAN – ON SITE

Initial Pilot site for processing 40 tons a day of extracted ore (3000 tons existing ore pile) within 60–90 days.

Full scale processing plant will be constructedand assembled within 180 days of funding. Production will be ramped to 400 tons per day commencing in year 2, with full productioncapacity of up to 600 tons per day.

Phase 1 Phase 2

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WEAREREADY!

SCALE TO PRODUCTION – ROAD MAP

A key component for ramping production beyond 100 tons a day to 400 tons a day is to rely only on Kona Gold’s own infrastructure (vs. public roads). Kona intends to transport our mined ore via a direct Kona controlled dirt “Haul Road” with an Exclusive Use Right of Way (ROW) grant issued by the Bureau of Land Management (BLM). The .6 mile Haul Road will connect Kona Gold’s mining operations directly to our processing mill site. Kona owns all assets involved, and has received support from BLM for this plan. The ROW grant will virtually negate Kona’s use of public roads in total.

Kona Proposed Haul Road

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WEAREREADY!

JOHNSON MATTHEY

- GOLD REFINERY REVENUE

• Johnson Matthey Plc, a specialty chemicals company that focuses on catalysts, precious metals, and fine chemicals, has its international headquarters in London. The company, whose origins date back to 1817, operates in over 30 countries and employs around 10,000 people. Johnson Matthey undertakes gold refining and the manufacture of bars at two large refineries in the USA and Canada.

• Johnson Matthey Gold & Silver Refining Inc., the leading refiner of newly- mined gold in the United States, is located in Salt Lake City, Utah.

• OWNERSHIP: Johnson Matthey Gold & Silver Refining Inc. is a subsidiary of Johnson Matthey Gold & Silver Refining Holdings Limited, which is a subsidiary of Johnson Matthey Plc.

• ACCREDITATION: 1989 London Bullion Market Association (LBMA) 1983 CME Group – Market Contract: COMEX 1994 Tokyo Commodity Exchange (TOCOM)

Johnson Matthey is a major gold refiner and bar manufacturer in the USA.

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WEAREREADY!

BACKGROUND• The gold refinery of Johnson Matthey Gold & Silver Refining Inc. was established in Salt Lake City in 1983 in

response to the resurgence of gold mining in the United States, particularly in Nevada, the state adjacent to Utah.

• The Johnson Matthey Group has been operating in the United States for more than 100 years, under several names: Bishop & Co (1909), Matthey Bishop Inc. (1967), Johnson Matthey Inc. (1980) and Johnson Matthey Gold & Silver Refining Inc. (since 2013).

• In addition to gold, the refinery in Salt Lake City also refines silver. The Johnson Matthey Group in North America, also refines platinum group metals, manufacturing an extensive range of products for the platinum group metals industry.

• Number of employees: 175 (Salt Lake City), 1,900 (USA).

JOHNSON MATTHEY- GOLD REFINERY

REVENUE

• Gold refining methods include pyrometallurgical chlorination and electrolysis.

• Annual gold refining capacity is around 250 tons.

• GOLD BARS: Cast bars: 400 oz., 100 oz., 1000 g, 10 oz. 12

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WEAREREADY!

KONA GOLD MINING CORP

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Kona Gold LLCRevenues

Kona Gold Mining Corp and Kona Gold, LLC Exclusive

Economic Agreement

Kona Gold, LLC Expenses &

Equity Distributions

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KONA GOLD, LLC - OPERATION STRUCTURE

Managing PartnerSteve Davis

ControllerGarret Weyand

VP OperationsChris Peterson

Mining Supervisor E.Mason Paugh

Executive SecretaryAndrea Moore

Mining Labor

Consulting Geologists: Steve Sutherland, Robert Cuffney,

Tim Jefferson

Legal

Consulting Engineers: Summit Engineering, Enviroscientists Inc.

Craig Demetras Demetras & O’Neill

Dane AndersonWoodburn & Wedge

CPACasey Neilon

Advisors

Retained or Consulting Experts

Full or Part-time Employees

Mill Labor

AccountingMining EngineerRichard LaPriairie

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Administrative Manager

Darcy McMillin

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WEAREREADY!

KONA GOLD, LLC - TEAM BIOS

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• Steve Davis, Managing Partner: Mr. Davis’ experience with government permitting and licensing entities, coupled with his negotiationskills and business acumen, led to where Kona Gold is today. His leadership focus continues to be transaction management, legal,general management and structuring complex buy and sell side transactions. Mr. Davis is a proud graduate of the University ofCalifornia at Berkeley and now resides in the Comstock Mining District in Nevada.

• Darcy McMillin, Administrative Manager: With over 25 years of experience in management and administration, Ms. McMillin'sbackground includes the fields of retail, banking, medical and dental finance, government, and mining. She studied at Ithaca Collegein New York, and graduated with a Bachelor's degree in English Literature from the University of Nevada, Reno. In addition to herprofessional experience, she's owned and operated two small businesses, and founded the non-profit Nevada Outdoorsmen inWheelchairs with her husband, Rob. Darcy comes to us with a high level of business management acumen, and has been a residentof Virginia City since 2004.

• Garret Weyand, Controller: With over 25 years real estate experience, Garret specializes in residential, land, multi-family,developments and real-estate based investment projects. He brings expertise in land acquisitions and management of residential andbusiness developments. Garret is a graduate of University of Southern California where he received a Bachelor of Science degree inFinance and Real Estate.

• Chris Peterson, VP Operations: Mr. Peterson hold a Master’s Degree in Geology from the University of Nevada, Reno, and brings asolid working knowledge of the Comstock Mining District after working as the Senior Project Manager and Director of Mining and MineDevelopment with Comstock Mining. As Senior Grade Control Geologist he organized open pit production activities. Hisresponsibilities there quickly expanded to overseeing all aspects of the organization from exploration, operations, processing, contractnegotiation, vendor selection, environmental permitting and compliance, consultant and contractor management, personnel selectionand senior project management. Chris comes to us with a prodigious understanding of the region’s geology, as well as abundantmining operations expertise.

• Andrea Moore, Executive Secretary: With over seven years of experience in data integration, fiscal management, advertisementmanagement and planning, Ms. Moore's background includes transportation and event planning in addition to media advertising andsales. She studied online at Arizona State University and graduated with a Bachelor's degree in Communications. She is the mother ofthree beautiful children, resides in Dayton and her leisure time is spent enjoying the outdoors.

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WEAREREADY!

KONA GOLD, LLC - TEAM BIOS

• Richard LaPriairie, Professional Mining Engineer/Civil Engineer: With over 39 years of international industry experience, Mr. LaPrairie’s professional skills include Project Management for both underground and surface mines, mineral exploration and evaluation of exploration results, civil engineering, mine development, mill construction and startup. He is very experienced at setting budgets and managing staff. Commodities expertise includes: gold, silver, copper, uranium, lead, zinc, antimony, fluorspar, bauxite, talc and coal. Mr. LaPrairie possesses dual citizenship in both the USA and Canada. Mr. LaPrairie possesses a B.S in Mining Engineering from the Colorado School of Mines and attended Graduate School at the University of Nevada, Reno completing course work in civil engineering. His professional credentials include: Registered Professional Engineer, Nevada (Mining and Civil), North Dakota, California, Illinois. Quebec Canada. Member SME. MSHA and OSHA certification.

• Edmund (Mason) Paugh, Manager of Mining Operations: Mr. Paugh has been in the mining business for over thirty years as a certified underground miner and supervisor. He was a supervisor for 15 years with numerous large underground coal mining companies in West Virginia including: Metkie Coal & Mastellars Coal. Mr. Paugh is MHSA certified and a seasoned pro having been employed with gold mine operations in Arizona, Alaska and Nevada. His experience includes serving as Mine and Mill General Manager for Midas Gold Recoveries. He is an expert heavy equipment operator and mechanic. Mr. Paugh and his wife (a registerednurse) will be residing in the house (Watchman’s Quarter’s on the Columbia South).

• Robert G. Cuffney, Exploration Geologist: Mr. Cuffney has more than 35 years of diverse experience designing, organizing, implementing and managing exploration and development programs for precious metals, base metals, uranium, coal, and industrial minerals in the western United States. He has served in numerous like roles in operations located in: Alaska, Mexico, Indonesia, Fiji, Republic of Philippines, China, Mongolia and Australia. Mr. Cuffney is experienced in all phases of geological, geochemical, geophysical exploration programs; from grass-roots exploration through discovery to development and mine/ore control geology. Mr. Cuffney earned his Master of Science (Geology) and his Bachelor of Science degree in Geological Engineering from the Colorado School of Mines from the Colorado School of Mines. His professional affiliations/credentials include: Geological Society of Nevada (President), Chairman – Great Basin Symposium, Society of Economic Geologists, and the American Institute of Professional Geologists.

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WEAREREADY!

KONA GOLD, LLC - TEAM BIOS

• Tim Jefferson, Senior Geologist – Newmont Exploration, Ltd: Mr. Jefferson is a staff geologist in charge of Newmont’s explorationprogram for sediment-hosted (Carlin-type) gold deposits in the Great Basin outside of the Carlin Trend; Project Geologist for BootstrapDistrict, Carlin Trend. He designed, managed and conducted delineation drilling of Tara gold deposit, bringing projects from discoverystage through pre-development; ore-control/mine geologist at the Bluestar/Genesis gold mine. Tim earned both his Masters and B.S.degrees in Geology from Colorado State University – Fort Collins, Colorado. His professional credentials include; Certified ProfessionalGeologist – AIPG, Registered Professional Geologist – Minnesota, and Erosion Control Storm Water Pollution Prevention Plan Designerand Installer certifications – Minnesota.

• Joe Pursel, Civil Engineer, Summit Engineering: Mr. Pursel has worked at Summit Engineering in various capacities for roughly 10 years.Joe has been involved in the design and engineering of multiple commercial projects. He is certified by Nevada Alliance for QualityTransportation Construction (NAQTC) and American Concrete Institute (ACI). Joe has been responsible for testing and inspection of manymining projects located in Nevada, including Round Mountain Gold, Barrick Goldstrike, and the Marigold Mine.

• Rich DeLong, President, EnviroScientists: Rich DeLong is an expert in regulatory and permitting issues related to the Nevada Division ofEnvironmental Protection (NDEP) and Bureau of Land Management (BLM). He manages all of Kona Gold’s Federal/State Permitting andplans. His firm, Enviroscientists Inc., is a leading property development and permit acquisition firm that specializes in assisting naturalresource development industries with ever-changing regulations.

• Steve Sutherland, Geologist: Mr. Sutherland has been a licensed Geologist working in the Comstock region for over thirty years. Heconsults on all of the mining claims and authored the report regarding our Columbia Claim.

• Craig Demetras, General Counsel/Partner Demetras & O’Neill: Demetras & O’Neill has a thriving minerals practice that includesrepresentation and other legal services in the areas of administrative and regulatory matters; mergers and acquisitions; claim staking andlocation; leasing, joint ventures, and like kind exchanges of mineral properties; mineral patenting and permits; and royalty disputeresolution. Mr. Demetras will be providing assistance to the Columbia Mine in all aspects of the mining operation, regulatoryrequirements and the permitting process including current and future applications.

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KONA GOLD is FULLY Permitted and Commissioned

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