Seeking Investment in:Seeking Investment in:Univertical International Univertical International

(Suzhou) Co. Ltd(Suzhou) Co. Ltd

PRI Partnership with:

Who are Univertical Corporation?Who are Univertical Corporation? Univertical Corporation (UC) is the 70% majority Univertical Corporation (UC) is the 70% majority

investor in Univertical International (Suzhou) Co. investor in Univertical International (Suzhou) Co. Ltd.Ltd.

Univertical Corporation is privately-held USA Univertical Corporation is privately-held USA company Univertical Corp., started in 1938. company Univertical Corp., started in 1938. Univertical currently has one factory based in Univertical currently has one factory based in northeast Indiana, and they are the worldwide northeast Indiana, and they are the worldwide market-share leader in the supply of specialty market-share leader in the supply of specialty chemicals and copper anodes to the printed chemicals and copper anodes to the printed circuit board (PCB) and metal plating industries. circuit board (PCB) and metal plating industries.

The President of Univertical Corporation is Chuck The President of Univertical Corporation is Chuck Walker, son of founder, Charlie Walker.Walker, son of founder, Charlie Walker.

Who is PRI?Who is PRI? Privately held USA Company “Pacific Resources International LLC”.Privately held USA Company “Pacific Resources International LLC”. Headquartered in BeijingHeadquartered in Beijing 12 China locations12 China locations Manufacturing and ConsultingManufacturing and Consulting

• Primarily foreign high-tech companies.Primarily foreign high-tech companies.

Formation of the New VentureFormation of the New Venture• Univertical International is a new Univertical International is a new

company established in Suzhou, company established in Suzhou, China, and owned offshore by China, and owned offshore by Univertical International Univertical International (Mauritius). (Mauritius).

• It is a partnership between It is a partnership between Univertical Corporation (70%) and Univertical Corporation (70%) and Pacific Resources International Pacific Resources International LLC (30%).LLC (30%).

What is the Business?What is the Business? Copper AnodesCopper Anodes Solder and Tin BallsSolder and Tin Balls Solder and Tin Bar & BallsSolder and Tin Bar & Balls

Sold to:Sold to:

Plating CompaniesPlating Companies Printed Circuit Board Printed Circuit Board

ManufacturersManufacturers Distributors & End UsersDistributors & End Users

Milestones to June 04Milestones to June 04 November 2002 – Purchased land & completed November 2002 – Purchased land & completed

design for new factorydesign for new factory December 2002 - Temporary office and sales December 2002 - Temporary office and sales

team established in Suzhouteam established in Suzhou January to September 2003 – Hired General January to September 2003 – Hired General

Manager, management team and technical staffManager, management team and technical staff September to November 2003 – Imported September to November 2003 – Imported

production equipmentproduction equipment November 2003 – Relocated to new custom-November 2003 – Relocated to new custom-

designed factory (60,000 sq. ft.)designed factory (60,000 sq. ft.) December 2003 – Commenced production December 2003 – Commenced production June 2004 – Reached 60 tons per month in June 2004 – Reached 60 tons per month in

specialty chemical salesspecialty chemical sales

Company Successes for Company Successes for 2003-20042003-2004

Commenced Production of 1Commenced Production of 1stst product product (nickel sulfamate). Generated a profit (nickel sulfamate). Generated a profit on first product line in May 2004.on first product line in May 2004.

Increased customer base from 18 in Increased customer base from 18 in 2003 to 39 in 2004.2003 to 39 in 2004.

Initiated production of second product Initiated production of second product (tumbled rolled copper).(tumbled rolled copper).

Company Successes continuedCompany Successes continued

Initiated production of third product Initiated production of third product (copper sulfate).(copper sulfate).Calendar year 2004 estimated sales Calendar year 2004 estimated sales at 20 million RMB. at 20 million RMB.

Milestones Planned for Next YearMilestones Planned for Next Year

Copper Casting by March 05Copper Casting by March 05 Nickel Sulfate Production by March Nickel Sulfate Production by March

0505 Nickel Chloride Production by Sep 05Nickel Chloride Production by Sep 05

Key Learnings over Last YearKey Learnings over Last Year

Univertical branding gives us a key Univertical branding gives us a key advantage over competition. advantage over competition.

We do not try to match competitor’s We do not try to match competitor’s pricing, but position ourselves as the high-pricing, but position ourselves as the high-quality, high-priced market leader. Focus quality, high-priced market leader. Focus on positioning rather than just volume.on positioning rather than just volume.

To sell copper in China, we need to go To sell copper in China, we need to go direct to end-users, as well as distributors.direct to end-users, as well as distributors.

What will it take to Win/What will it take to Win/What are the RisksWhat are the Risks

Winning FactorsWinning Factors• Maintain Univertical Reputation for High Maintain Univertical Reputation for High

QualityQuality• Start Production of new products on timeStart Production of new products on time• Do not enter price warsDo not enter price wars

RisksRisks• Not achieving sales targetsNot achieving sales targets• New players entering the market affecting New players entering the market affecting

short term sales growth.short term sales growth.

Sales & MarketingSales & Marketing

Invoiced Sales by ProductInvoiced Sales by Product

Productsyear 2003 to Aug 2004

Kg RMB Kg RMB

Nickel Sulfamate 105,671.04 2,295,303.94 427,690 10,237,882.27

Rolled Copper Ball 18,800 495,545 44,300 1,671,538

Electroless Nickel Sulfate

0.00 0.00 2,311.40 45,135.80

Nickel Chloride 0.00 0.00 50.80 1,181.10

Copper Sulfate 0.00 0.00 16.70 96.86

Total 124,561.04 2,790,848.94 474,368.9 11,955,834.03

Invoiced Sales by ProductInvoiced Sales by ProductBy RMB:

2295303. 94

495545. 000. 000. 000. 00

10237882. 27

1671538. 00

45135. 801181. 10

96. 860. 00

2000000. 00

4000000. 00

6000000. 00

8000000. 00

10000000. 00

12000000. 00

year 2003

Ni ckelSul famate

Rol l CopperBal l

El ectrol essNi ckel Sul fate

Ni ckelChl ori de

Copper Sul fate

to Aug 2004

Invoiced Sales by Sales PersonInvoiced Sales by Sales PersonSales Person

year 2003 to Aug 2004

Kg RMB Kg RMB

John Li 34,945.3 826,,776.43 159,598.9 4,385,897.17

Michael Deng 17,042.5 42,7693.27 56,643.6 1,688,993.34

Joseph Seah 72,573.24 1,536,379.24 258,126.40 5,880,943.52

Total 124,561.04 2,790,848.94 474,368.9 11,955,834.03

0.00

50000.00

100000.00

150000.00

200000.00

250000.00

300000.00

year 2003

John Li

Michael Deng

Joseph Seah

to Aug 2004

By Kg:

0.00

1000000.00

2000000.00

3000000.00

4000000.00

5000000.00

6000000.00

7000000.00

year 2003

John Li

Michael Deng

Joseph Seah

to Aug 2004

By RMB:

Number of Customers by Number of Customers by ClassificationClassification

47

11

21

13 2

8

0

5

10

15

20

25

year 2003year 2004

G 1 G 2 G 3 G 3 (Copper only)

G1:big distributor

G2:small dealer

G3:end user

Customer CategoriesCustomer Categories G1:big distributor = Large Multinational

or Chinese Distributors. G2:small distributor = Small Chinese

Distributor G3:end user

Investment TermsInvestment Terms

Univertical International is currently valued at $13.2 Univertical International is currently valued at $13.2 million. This is worked out on:million. This is worked out on:

Discounted Cashflow 17% over 7 yearsDiscounted Cashflow 17% over 7 yearsOr Or 2.5 mulitiplier of 2006 forecast after-tax cashflow. 2.5 mulitiplier of 2006 forecast after-tax cashflow.

PRI owns 30% of UI. PRI will sell you all dividend PRI owns 30% of UI. PRI will sell you all dividend and related equity-associated rights at a rate of and related equity-associated rights at a rate of $130,000 for each 1% of Univertical International. $130,000 for each 1% of Univertical International.

Use of ProceedsUse of Proceeds Working Capital ($2.465 million)Working Capital ($2.465 million)

Purchase of inventory to support forecast sales Purchase of inventory to support forecast sales of $5 million per month by 2007. Inventory of $5 million per month by 2007. Inventory (mainly copper) retains full value if not sold.(mainly copper) retains full value if not sold.

Capital Projects ($735,000)Capital Projects ($735,000)______________________________________________________________________________PRI portion of this is: PRI portion of this is:

30% of 3.2 million = $960,00030% of 3.2 million = $960,000To be raised by Aug 05 ($145,000 paid in since To be raised by Aug 05 ($145,000 paid in since July)July)

PRI and PRI’s Management has PRI and PRI’s Management has personally investedpersonally invested

PRI has two seats on the Univertical PRI has two seats on the Univertical International Board of Directors.International Board of Directors.

Both of PRI’s assigned directors have invested Both of PRI’s assigned directors have invested personal funds into UI.personal funds into UI.

PRI’s Assigned Managers:PRI’s Assigned Managers: Dwight Nordstrom & Graeme WinthropDwight Nordstrom & Graeme Winthrop

Estimated Costs for 2004-2005 Estimated Costs for 2004-2005 Capital ProjectsCapital Projects

Project Description

Estimated Cost

Production Start Date

Casting Machine $ 185,000.00 1/3/2005

Spectrometer $ 75,000.00 11/1/2004

Heading Machine $ 90,000.00 12/1/2004

Large shear $ 60,000.00 2/1/2005

Small shear $ 50,000.00 3/1/2005

Nickel sulfate $ 60,000.00 7/1/2005

Nickel chloride $ 50,000.00 9/1/2005

Forklifts (2) $ 40,000.00 12/1/04 and 4/1/05

Wastewater $ 10,000.00 ASAP

ISO implementation

$ 5,000.00 1/1/2005

Generator $ 110,000.00 1/1/2005

Total Expenditures

$ 735,000.00

HeadcountHeadcount

3

22 24

50

0

10

20

30

40

50

60

2002 2003 2004 2005

Note that this company has a lean head-count for a high sales volume.

Manufacturing StaffManufacturing Staff

0

7 8

29

0

5

10

15

20

25

30

35

2002 2003 2004 2005

Sales, Engineering, Mgmt StaffSales, Engineering, Mgmt Staff

3

15 16

21

0

5

10

15

20

25

2002 2003 2004 2005

Sales and Marketing GoalsSales and Marketing Goals Expand sales beyond China.Expand sales beyond China. Continue to upgrade sales team’s Continue to upgrade sales team’s

abilityability Increase customer base to 50 - 60.Increase customer base to 50 - 60.

QuestionsQuestions