Silver Falls Share Offering Possession Point, British Columbia

•!Oceanfront property greater Victoria B.C.

•!RRSP-eligible

•!TFSA-eligible

•!Pre-approved investor financing

•!2,800 feet of spectacular waterfront

•!Priority Villa selection

Canada’s South Pacific

Canada’s South Pacific

•!Possession Point, the southwestern tip of Vancouver Island

•!3,500-acre Wilderness Park – 3 ! times the size of Stanley Park

•!45 min to downtown Victoria, the International Airport and ferries to Vancouver & Seattle

Possession Point

Possession Point

Property Features

•! Comprehensive zoning

•! 7 km+ municipal water line

•! 180,000 gallon water reservoir

•! Paved roads

•! Blasted, graded and prepared for development

Overall Market Trends •! Mortgage rates expected to

remain low

•! International buyers view the Canadian real estate market as a safe investment

•! Employment expected to improve with the economy in 2012 and 2013

•! Immigration expected to rise over the next two years due to improving economic and employment environment.

Local Market Trends

!!3.7 million Canadians approaching retirement –expected to double to 7 million Canadians within 20 years

•! Rapid continued growth projected for southern Vancouver Island

•! Fastest growth in BC occurring in Langford (19.2%), View Royal (20.6%) and Sooke (11.1%), immediately adjacent to Silver Falls

Investment Overview !!Investment partners acquire

Class A shares in Silver Falls Development Inc.

!!Purchase Possession Point and construct up to three Oceanfront Villa show-homes

!!Management own Class B shares, not entitled to profit sharing until after Class A shareholders have realized a profit

Investment Overview

•! Tax-free compounding until property sale

•! Pre-approved investor financing of up to 75%

•! Priority Villa selection •! Property discount of

up to $50,000 for investors purchasing a villa

•! RRSP, TFSA eligible

Profit Picture

•! Possession point secured at $9 million, $2.3 million below November 2010 appraisal, $6,150,000 below June 2007 appraisal

•! 80/20 profit distribution for investors on sale of land

•! 50/50 profit distribution for investors on construction

Pre-approved Investor Financing

•!25% Down-payment

•!Promissory Note

•!5.95% per annum

•!Standard 10-year Amortization

•!Tax-deductible

•!No Credit Score or Credit Application

Pre-approved Investor Financing

RRSP TFSA CASH Down-payment = $5,000*

Shares Promissory Note = $15,000

P-Note

Pre-authorized Debit = $166.15/mo.

+ Monthly Payments

*Example only, please refer to your Dealing Representative for recommended participation.

Pre-Approved Investor Financing

2012 2015 2018 2021

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Amortization Schedule

Principal Paid Down

How Pre-approved Investor Financing Works

•!Annual share valuation

•!Issuance of paid-up shares

•!Contribution to RRSP & tax deduction

•!Contribution to TFSA

Silver Falls

Shares

RRSP TFSA CASH

Expected Returns

•!5-year exit

•!Average lot sale of $399,000

•!Average construction profit of $100/s.f.

•!Lodge site sale $2,400,000

•!IRR = 10.97%

Expected Returns

•!4-year exit

•!Average lot sale of $478,000

•!Average construction profit of $120/s.f.

•!Lodge site sale $2,880,000

•!IRR = 17.12%

Track Record •! Experienced Management

by Home Equity Development Inc.

•! Over two dozen offerings managed through to completion since 1988

•! Management of diverse property types

•! Over 280 properties •! Profit-sharing plan

Exit Strategy

•! Construct Oceanfront Villas & Waterfront Suites as pre-sales are secured by non-refundable deposits

Why Invest in Silver Falls

•! 84.6% efficiency •! Immediate pay down of

property & construction •! Take advantage of low

property values secured by this offering

•! Professional management •! Historical success in past

offerings by Home Equity Development Inc.

For more information…

www.silverfalls.ca

www.youtube.com/silverfallsdev

www.twitter.com/silverfallsdev

www.facebook.com

Peter Jarman Telephone: 1-403-999-6888 Email: peter@silverfalls.ca

Michael Thornton Telephone: 1-604-921-5957 Email: michael@silverfalls.ca

Legal Disclaimer This presentation contains certain forward looking statements regarding Silver Falls Development Inc.’s strategies, market plans, future operating performance or financial performance, that are based upon the current expectations of the Company's management. As with any projection or forecast, these statements are subject to risks and uncertainties. Silver Falls Development Inc. (Silver Falls) operates in a competitive environment and its business results are dependent on numerous factors and risks, including, but not limited to, relationships with suppliers, regulatory requirements, ability to attract and retain key personnel and the economic, political and social conditions in which it operates. Silver Falls’ actual results could differ materially from management's expectations because of changes in these and other such factors.

Although the Company believes the expectations expressed in its forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.

This presentation does not constitute an offer to sell or a solicitation to buy a security. Such an offer may only be made by Offering Memorandum to eligible investors where qualified by applicable laws.