0VERVIEW Magnum Building Products

roserob

INVESTOR

PROSPECTUS

Magnum

Building

Products


A FUTURE

BUILDING

PRODUCT

FOR TODAY’S

DESIGN

STANDARDS

SUSTAINABILITY

The building services industry is today interested in the application and

creation of long lasting and true to form sustainable design. From asset

value creation to LEED Certification, Magnesium Oxide Panels (Magnum

Boards) are the next building product for environmentally concious and

cost efficient design.

The use of Magnum Boards is sustainable in

many ways for both builders and end users.

Here are a few ways in which Magnum Boards

will be used and marketed as a superior

building product:

• Cost Saving - The use of Magnum

boards as an OSB and drywall substitute in

interior construction and framing has been

shown to lower cost of construction by over

40%

• Water/Mold Resistant - Due to

an increase in worldwide exposure to the

effects of global warming, flooding has

been happening at an alarming rate across

the globe. Building officials in many of tese

locales (including Alberta) have required that

replacement buildings be constructed with

water resistant materials.

• Multi Uses - The use of Magnesium

Oxide in construction is not limited to drywall

replacement, but also cladding, backer board

and subflooring.

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MARKET SIZE

The worldwide gypsum market includes sales of

over $10 Billion annually.

Due to environmental considerations, cost

increases in source materials, and an increase in

flood resistant building requirements we expect

the market for alternative building materials to

capture 20% of this market by 2020.

Magnum Boards provide:

• Non-Toxic internal and external sheathing and

flooring

• Less maintenance due to wear and tear

• Protection from toxic mold and moisture

buildup

FURTHER INFORMATION

Magnum Boards provide Fire Protection

standards which are equivalent to two

layers of competing products - this

provides cost savings to the builder of 40%

of more. Depending on the application,

Magnum Board may offer savings of 50%

to 200% over competing products. EG: A

Single12mm Magnum Board product offers

-/120/120 fire protection. This example

uses 200% less material than competing

products.

Magnum Boards are non-nutrient to

mould or fungus and do not support insect

life. Providing superior moisture resistance

in high humidity areas and combats the

growth of mould and mildew.

Magnum will not disintegrate when

immersed in water or exposed to freeze/

thaw cycles for prolonged periods of time.

Magnum Boards can be finished with

any traditional drywall construction

compounds, materials and finishes.

• Standard production material is very

smooth one side and sand textured on the

other allowing instant finishing by the hired

contractors

• Either solvent based oil paint or water

based latex paint can be used. If the panels

are to be directly exposed to rain and

weather, apply a prime coat of acrylicsiloxane

waterproofing sealer, followed by

oil based paint.

• Standard edges are square and tapered.

Special edges and sizes are available.

Interior / Exterior:

• Where MgO Corp Board is to be used as a

mounting surface for ceramic tile, such as in

a bath or shower enclosure, solvent mastic

is recommended.

• Magnnum Board recommended

assemblies consist of exterior wall, interior

wall, shaft wall, steel column, staircase,

ceiling, floor and roofing.

Applications Include:

• Residential homes & Apartment

Complexes

• High Density Commercial & High rise

buildings

• Office Buildings

•Educational Facilities

• Hotels & Hospitality

• Airports

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GOALS

Our 2013/2014 goals are easily attainable based

on our current trajectory. These include:

Capturing Alberta Flood Reclamation Projects

Over $5 Billion dollars of damage was done to

Calgary during the flooding of May 2013. The

building officials association, with which we are

actively engaged, has demanded that rebuilding

projects use materials other than gypsum in the

40,000 homes which were damaged during the

flooding. This represents a potential market,

for which we have an exclusive distribution

agreement, of over 100 Million Dollars. We are in

direct contact with Alberta Min of Municipal Affairs

Safety Services div who manage all building code

issues for Alberta. Director James Orr has samples

and full test data that his staff are analysing for

approval as a reccomended building material.

Finishing Development of Magnumclad

One architect made us aware of the decision

made by Panasonic to pull their quite successful

integral rainscreen commercial grade fiber

cement cladding from the NA market. We have

been able to reverse engineer Ceraclad using

15mm Magnum board providing a product

with superior characteristics and similar pricing.

Depending on when we can supply the finished

product, November 2013 is the target, we

may assume part of $2 million in orders for

projects that included Ceraclad as part of the

Development Permit application.

Creating Multi Level Retail Distribution

Through a partnership with Mitten, a 26 store

retail outlets for building supplies, we look to

create retail distribution and increase direct

education of architects and engineers of our

Magnumclad offering.


STEPS TO MARKET

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3

4

5

6

Finish Development of Magnumclad

Provide fire testing results to BC and

Alberta building officials for conditional

approval.

Fulfill existing orders and increase

supply to meet increase in volume and

frequency of expected orders

Develop Relationships with Mitten

and Timbremart, a combined 800+

store locations, to provide customer

education and market awareness of our

line of products and their many uses.

Continue Trade Show presentations,

these include Buildex, BCBOA, and IBS

in Las Vegas.

Make strategic hire of the head of

North American Ceraclad distribution

in Seattle. This would provide Magnum

the oportunity to develop upon

existing relationships with Ceraclad

users and introduce our new product.

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