MTAX 2013 Mineral Limited Partnership

A Canadian mining flow-through share fund with optional charitable giving benefits

Minimum investment: $25,000

Total offering: $10,000,000

For further information:
Jim Kerr, C.A.
604-760-8355
jamesdkerr@shaw.ca

> Request a call

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• ATTRACTIVE 2013 INCOME TAX DEDUCTIONS UP TO 142% OF YOUR INVESTMENT AMOUNT

  Canadian income tax law permits you to write off your entire investment in qualifying flow through shares in the year of investment. Deductions and tax credits include 100% Canadian Exploration Expense (CEE) a 15% Federal Tax credit and where available a 20% B.C. Provincial tax credit. These are equivalent to a 142% deduction in 2013. For example in MTAX 2012 investors received over $14,000 in tax savings (at 43.7% tax rate) per $25,000 investment.

• LIQUIDITY

  Investors can expect to receive free trading shares, of each Canadian mining exploration company invested in by MTAX 2013 mineral limited partnership in late spring 2013. These shares can then be DEPOSITED DIRECTLY INTO YOUR BROKER ACCOUNT OR SOLD. There is no rolling over into a mutual fund one or two years later like all other funds.

• MTAX TRACK RECORD

  Since 2000 MTAX has undertaken 18 MTAX offerings with an average portfolio of 3-5 Canadian public mining exploration companies. The average tax refund per $25,000 investment has been over $13,000. For the years 2000 to 2010 the average value at the date of distribution for all MTAX offerings was 90% of the gross investment, and when combined with substantial tax savings resulted in an after tax return of over 50% on average over a four month period. However, the last three years have been a disaster for junior mining shares in the stock market. The flow through shares in MTAX funds over these last three years have no escaped the carnage and like all other funds found the value of the Fund on distribution significantly less than cost. Tax refunds in excess of 50% of the gross investment of course mitigated these losses. Many now think that junior mining market is at or near the bottom of the cycle and thus we are optimistic that 2014 will show far better performance than the last three years and be more like our performance over the years 2000 to 2010.

• OPTIONAL CHARITABLE GIVING BENEFITS

  Investors have the option of donating their shares directly to a charity of their choice and receive the equivalent of an additional 100% deduction. IF THE VALUE OF THE DONATION EQUALS 90% OF THE ORIGINAL MTAX INVESTMENT CHARITABLE INVESTORS WILL RECEIVE $74,000 TAX BACK ON A $100,000 MTAX INVESTMENT.

• MTAX EXPERIENCED GENERAL PARTNER

  Lou Duarte, MBA, BASC, has over 30 years experience in the Canadian Mining industry. Jim Kerr, CA, former senior partner KPMG for over 25 years.

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WHAT IS A FLOW-THROUGH SHARE?

Flow-Through Shares are a tax-advantaged investment in the Canadian natural resource sector. Taxpayers in the highest marginal tax rate can reduce their taxable income and receive refundable or non-refundable tax-credits depending on their province of residency.

Essentially, exploration or mining companies who issue flow-through shares renounce the deductions that would normally be available to the company and provide the deduction to the investor. In order for the investor to benefit from the flow-through shares the company must spend the flow-through dollars on exploration in Canada. This includes most non-development stages of mining, including ground sampling, geophysics, drilling, etc.

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ATTRACTIVE 2013 INCOME TAX DEDUCTIONS

An investor must be a Limited Partner as at December 31, 2013 to qualify for income tax deductions associated with the flow-through shares. The estimates and assumptions set forth below assume an Investor who is resident in British Columbia is not subject to any additional tax under the alternative minimum tax. The following table sets forth the estimated income tax savings for an Investor who is an individual holding as at December 31, 2013, either investing $25,000 or $100,000.

	Investment Amount

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Flow-through Share Investment	$25,000	$100,000

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Estimated total deductions from income in: Canadian Exploration Expense (CEE) (2013)	$22,500	$90,000
Offering costs (2013 - 2016)	$2,500	$10,000
Less: Estimated total tax savings (B.C. 43.7%)	$10,925	$43,700
Flow-through Share non-refundable 15% Federal Investment Tax Credit	$3,375	$13,500

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Total NET AFTER-TAX COST of MTAX 2013 Mineral LP Investment

$10,700

$42,800

The breakeven calculation is $624 per $1000 investment amount (after payment of all taxes from capital gains and tax credit recapture in 2014). This assumes only Canadian Exploration Expense and Federal tax credits. It does not include any B.C. or Ontario tax credits, which if received would lower the breakeven calculation.

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OPTIONAL CHARITABLE GIVING BENEFITS

Investors may donate some or all of the publicly traded shares distributed by MTAX directly to a registered charity or private foundation. By doing this, investors do not have to include any portion of the resulting capital gain in their income and receive the equivalent of an additional 100% deduction for the share value at the date of the donation.

This assumes that the value of the MTAX 2013 Mineral LP shares in 2014 on the date given is 90% of the investor's original cost.

For each $100,000 donated there is a tax savings of approximately $40,800 over a cash donation.

Investors will get the equivalent of an additional 100% deduction for the share value at the date of the donation but will, due to changes in tax law in 2011, be required to pay capital gains tax on the amount of the donation. When the price of a flow through donated is more than the original cost there is no capital gains on the excess amount. For example, if one of the flow through shares in the MTAX portfolio has a cost base of say 1.00 and at the date of the donation the stock is trading at 1.75, then there is no capital gains tax on the 75 cent gain for donations of this stock.

Disclaimer: Investment funds are not guaranteed. Their value change frequently and past performance may not be repeated. This communication does not constitute an offer to sell or solicitation to purchase securities of the funds. This is sold only to accredited investors through the offering memorandum dated November, 2013. Commissions and other fees will be paid to the general partner.

EXPERIENCED GENERAL PARTNER

MTAX TRACK RECORD

Recent examples of significant gains from shares in MTAX portfolios. These gains were subsequent to the date the shares became free trading and thus not included in the average value of the portfolio.

Richfield was part of the MTAX 2009 (No. 2) portfolio and its shares were free trading in late spring of 2010. The cost of Richfield shares was $1.20 a share. In addition investors in MTAX received additional warrants in Richfield at an excursive price of $1.50. On April 4, 2011 New Gold made an offer to buy all of the shares of Richfield at an equivalent price of $10.38 per share. Prior to that date the shares of Richfield were more than 500% above cost.

Eagle Plains was part of the MTAX 2009 portfolio. The cost of shares was 25 cents with warrants at 30 cents. In December 2010 Eagle Plains hit a high of $1.09 a share, an increase of over 400%. Investors were also able to excursive warrants at a cost of 30 cents for a considerable gain.

Romios has been included in a number of MTAX funds. In 2009 Romios was purchased by MTAX at a cost of 14 cents plus a warrant exercisable at 20 cents. In 2010 Romios was purchased at 15 cents plus a warrant at 25 cents.

During the period of April 2011 to mid Sept 2011 Romios traded in a range from 40 cents to a high of 65 cents resulting in a considerable gain to investors of 400% or more including the gain on the warrants.

FAQs

1. It seems too good to be true - there must be risks to this that I can't see.
   

   The tax deductions and tax credits are tax law - not an interpretation. No investor in eighteen MTAX funds has ever been reassessed for their tax deductions. We don't see any tax risk. However, all flow-through shares are subject to a four-month hold. This means that you can't sell your stock for at least four months, and share prices can go down over those four months. You are still further ahead if stocks go down by 35%. This has not happened in the last three years. However, on a number of MTAX funds, the value of the flow-through shares after four months was worth more than the original investment.

2. I don't want to be audited by Canada Revenue Agency - why are the tax risks so low?
   

   Some of our best clients are tax partners of national accounting firms as they see little tax risk in flow-through investments compared to the other products in the market that do have, in some cases, substantial tax risk. The deduction for a flow-through share is very similar to the deduction of an RRSP. Both are written into the Act. Further, the new rules allowing you to avoid capital gains tax on a donation of flow-through shares is again written into the Act, and tax rulings have confirmed it applies to flow-through shares.

3. This sounds complicated - I want things simple.
   

   The process is very simple. You write one check and fill out two forms to subscribe for the MTAX flow-through fund. You will be sent the tax form, which is documentation for your tax deductions. After four or five months, your flow-through shares are delivered to you and you can sell them at that time. We can help you sell the shares through a broker and take care of your shares as part of our service. If you are donating, then you deliver the shares to the charity - again, we can help you with this process. It is very straight-forward and simple.

4. Why MTAX and not the other major funds I see advertised?
   

   The advantages of MTAX are:

   • You get liquidity in four months - not two years like almost all other funds
   • You receive tax credits which, are like cash. These tax credits are not available on oil and gas flow-through shares - only mining. For BC residents there is an extra 20% tax credit on BC mining shares, which is like cash
   • The fund is small, and MTAX has been doing this for over ten years. You can trust MTAX to find the best flow-through shares they can find for their fund at a fair price

REQUEST A CALL

To discuss this with MTAX and to receive an Offering Memorandum, simply fill out the form below, and we'll get back to you as soon as possible. Alternatively, you may call us at one of the numbers below.