Technology Metals (TM)

ELECTIO
Contents
The market for technology metals may double by the middle of the decade.
2011 report by Ernst & Young LLP
2 | Electio
Electio TM products
The opportunity
Why invest in TMs?
Client security
Electio Regulatory Framework
Delivery Vs Payment (DVP)
Tangible asset / Commodity
What is a bonded warehouse?
Bank / Custodian
Regulated Administrator
Opening your account
Managing your account
Introduction
O cial Partner of the PGA of South Africa
About us
Worlds rst TM trading platform
Worlds rst with liquidity
Worlds rst TM trading app
What are Technology Metals (TMs)?
What do we use TMs for? Almost Everything.
A global monopoly
Supply and Demand
In the News
Supply chain issues
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Introduction
China, supplier of 95 percent of the 17 elements known as TMs, has clamped down on mining and cut export quotas, boosting prices and
sparking concern among overseas users such as Japan about access to supplies. The government may further reduce export quotas, pushing
prices higher
(Goldman Sachs, Australia)
3 | Electio
While investor condence is generally considered to be at an all time low by most analysts and the
global economic outlook bleak, trading traditional asset classes can often be associated with far too
much risk. Time and time again, investors look to alternative investments when market condi-
tions are poor for traditional asset classes.
Historically, when stock markets crash, property markets usually suer a similar crash. In these
conditions, investors increasingly run to commodities as a safe haven.
Nothing demonstrates this better than oil and gold. Since 1997, the price of gold has rocketed
from $150 to its current levels of $1700. Similarly, oil has risen from $40 to $110 in just ve
years.
But has the ten-year gold rally come to an end? Many analysts say yes. The purchase of
commodities continues to be seen as a safer option by many professional investors, relying
as it does on the most basic of trading principles: supply and demand.
What if we could no longer build aeroplanes, satellites, wind turbines or mobile phones?
What if a monopoly over an entire industry was in place and this monopoly could dra-
matically aect the way we operate on a global scale?
The Technology Metals (TM) market is often described with many dierent names and
abbreviations, such as: Critical Materials; Critical Earth Elements; and; Rare Earth Ele-
ments to name a few. At Electio we believe in keeping things straight forward and clear
and for that reason you will see one name and abbreviation used consistently: Technol-
ogy Metals (TMs).
TMs are often described as the most valued commodities on earth. They are used to
build, create and manufacture almost everything we use and rely upon on a daily
basis.
4 | Electio
At Electio we understand the patience and strategic thinking behind lining up
the perfect golf shot . This is why we are delighted to announce that Electio
has been selected as the O cial Alternative Investment Partner of the Profes-
sional Golfers Association of South Africa (PGA).
In the same way that professional golfers always carry dierent clubs in prep-
aration for the shots they may have to take under any condition, a smart in-
vestor will always have diverse assets in his portfolio so that he is prepared
for any nancial climate.
OFFICIAL ALTERNATIVE
INVESTMENT PARTNER
Ocial Alternative
Invement Partner of the
PGA of South Africa
6 | Electio
7 | Electio
About us
Electio was founded by a group of like-minded high net worth investors as a niche
investment platform enabling judicious investors to diversify their portfolios into the
Alternative Investment Sector.
Aided by trade-on-the-move technology, Electio oers a leading-edge trading space,
backed by the necessary market knowledge and expertise to give investors what they
want and give credence to its ambition to become a world-leading alternative in-
vestment provider.
Fundamental to the Electio model is our use of technology in an online trading
space in which investors have:
the ability to monitor their investments on the move;
liquidity and an online platform facilitating 24/7 trading;
access to TM investments;
the means to diversify investments for an optimal portfolio and spread risk;
enhanced protection and safeguards for non-traditional asset classes.
Worlds r TM trading platform
At Electio we view technology as one of the most important aspects of our business. Our dedication to fostering
an aspirational brand has seen us develop the worlds rst TM trading platform. This creates a marketplace for
Electio customers to buy and sell TMs simply and e ciently within the same platform. *
This allows you to:
Buy and transfer TMs
View your trading account history
View the payment history for your account
Contact customer support
View todays trading price at the touch of a button
Request additional access for a representative or advisor to view your account
Restrict additional users permission levels as you wish
*All trades are subject to liquidity in markets.
8 | Electio
9 | Electio
Worlds r with
liquidity
Our global scale and reach allows us to connect buyers and sellers across all market jurisdictions. Our customers enjoy online access to their accounts
and all the information they need to make an informed decision. This is why Electio is proud to be in the unique position of being the rst to oer
liquidity. This exibility to buy and transfer TMs is an industry rst within the TM market*.
*Subject to trading volumes and liquidity
11 | Electio
Worlds r TM trading app
At Electio we understand a third of all internet access is mobile, which is why we have devel-
oped the worlds rst TM trading app.
The Electio TM trading app allows you to:
Buy and transfer TMs
View your trading account history
View the payment history for your account
Contact customer support
View todays trading price at the touch of a button
Request additional access for a representative or advisor to view your account
Restrict additional users permission levels as you wish
13 | Electio
What are
Technology
Metals (TM)s?
As dened by The International Union
of Pure and Applied Chemistry (IUPAC),
Technology Metals are a set of 17 chemical
elements in the periodic table, specically
the 15 lanthanides plus scandium and yt-
trium.
TMs have extraordinary properties and are
hence indispensable in the world of mod-
ern technology. They help increase e ciency,
productivity and accuracy of components.
They have been highlighted as critical by
the US government. They are vital to eve-
ryday life, scarce by their nature and very
di cult to extract.
The extraction and, in particular, the pro-
cessing of TMs is extremely capital inten-
sive, ranging from $100 million to $1 bil-
lion of capital expenditure depending on
the location and production capacity.
The estimated nancial investment needed
just to prove the resource (i.e exploration
and drilling) can be up to $50 million.
14 | Electio
What do we use TMs for?
Almo Everything.
In the modern world we now use TMs on a daily basis without even re-
alising it. They are now key in the technology industry and comprise the
key components of everything from mobile phones or laptop computers
to emulsion paints and medical implants. There is no doubt that some
of the worlds industries depend heavily on them.
Many of these TMs are also essential in the production of green en-
ergy alternatives such as wind turbines, electric cars and energy e -
cient light bulbs. As an industry set to expand exponentially over the
coming decades, it is easy to see why a secure supply of these metals
is of paramount importance
Also, with current population growth estimated to grow from 7.9bil-
lion to 11.9billion by 2025, TMs are paramount to sustainable, safe
growth and commercial evolution.
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Technology
Computer chips
LCD screens
Disk drive manufacturing
Medical implants
Aircraft turbines
Mobile phone batteries
Laptop computer chips
Renewable Energy
Electric car batteries
Solar cells
Wind turbines
Hybrid cars
Carbon capture storage pods
Geographical surveying equipment
National Security
Nuclear technology
Satellites
Missiles
Radars
Lasers
Night vision
Communication systems
Other uses
Dying of ceramic glass
Super alloys
Fuel catalytic convertors
X-ray lms
Fluorescent lighting
Fuel additives and catalysts
Doping agent for optical equipment
Paint
China eectively controls the current global supply of TMs, which is a well docu-
mented and major concern for Western economies.
Currently China:
Supplies over 95% of global TMs
Is expected to consume most of the supply
Has reduced export quotas by an average of 12% per year
since 2005
As an example, there is currently no known substitute for one of the 17 TMs known
as yttrium. Without yttrium, you cant make the refractory molds needed to
make jet-engine turbine blades. If you cant make jet-engine turbine blades, you
dont have jet engines or power turbines. The price points for TMs including the
likes of yttrium are predicted by most nancial analysts to rise in the face of unalterable
demand.
An act was recently tabled in the US to take all necessary initiatives to reintroduce
a domestic technology metals supply chain so as to ensure a secure source of these
vital metals. However, new mining set ups are prohibitively expensive and are likely
to push the prices up further.
A global monopoly
In the UK, a Science and Technology Committee report
warns: The UK will need to secure supplies of TMs or
future economic growth will be put at risk.
The Royal Society of Chemistry, which contributed to
the report, says: emissions targets could be missed
if the UK fails to formulate a plan for TMs.
As demand for technology metals increased, fol-
lowing the development of newer technologies re-
quiring them, China began to steadily reduce the
supply of these metals. In the second half of 2010
China suddenly announced they were cutting
their export quota by 72 percent, and announced
that they have only limited resources.
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Supply and Demand
Market share
Global demand and supply shifts are altering the dynamics within the
TM market, presenting both challenges and opportunities.

Global demand is expected to reach 200,000 MT by 2015,
(US Congressional research report, 2012)
To provide most of our power through renewables would take hundreds
of times the amount of technology metals that we are mining today,
(Thomas Graedel, Clifton R. Musser professor of Industrial Ecology and
professor of Geology and Geophysics at the Yale School of Forestry & En-
vironmental Studies)
Other Technology Metals are essential for solar cells, cell phones, com-
puter chips, medical imaging, jet engines, defence technology, and much
more.
Every megawatt of electricity needs 200 kilograms of neodymiumor 20
percent of one ton, he said. So if every big wind turbine produces one
megawatt, ve turbines will require one ton of neodymium. If wind is go-
ing to play a major part in replacing fossil fuels, we will need to increase
our supply of neodymium, (Peter Kelemen, Arthur D. Storke Memorial
professor of Geochemistry at the Earth Institutes Lamont-Doherty Earth
Observatory)
20 | Electio
A recent MIT study projected that neodymium demand could grow by as
much as 700 percent over the next 25 years; demand for dysprosium, also
needed for wind turbines, could increase by 2,600 percent.
China currently supplies 97 percent of global Technology Metal demand, and
100 percent of heavy technology metals such as terbium and dysprosium, used
in wind turbines.
In 2005, it began restricting exports to preserve resources and protect the environ-
ment, causing prices to soar. Today, the US is 100 percent dependent on imports for
TMs. However, from the mid-1960s through the 1980s, Molycorps Mountain Pass
mine in California was the worlds main source of TMs.
As the US share of TM production declined, China used government support,
research and development, training programmes, cheap labour and low prices to de-
velop its supply chain, increasing its share of TM production from 27 percent in 1990
to 97 percent in 2011. In March 2012, the US, Japan and the European Union lodged a
complaint with the World Trade Organization over Chinas limits on technology metal
exports.
The US, South Africa, Canada, Australia, Brazil, India, Russia, Malaysia, and Malawi
also have deposits of TMs, and while the US Geological Survey expects global reserves
and as yet undiscovered deposits of TMs will be able to meet future demand, new mines
may take up to ten years to develop, and resources in remote areas will likely be much
more di cult to extract.
21 | Electio
In the News
Dysprosium oxide, used in lasers, has jumped 338 per cent since January...
Even prices for the most common technology metals, such as lanthanum,
used in hybrid car batteries, have risen sharply (Investment Banking Times,
December 2011)
These ores, called TMs, can be rened into 17 technology metals, most of
which were of little interest until the past decade. In recent years, however,
demand has surged because the metals and their compounds are used in
almost every modern electronic device, from at-screen televisions to mobile
phones, as well as hybrid cars, wind turbines and even defence missiles
(Financial Mail on Sunday, April 2012)
TM shortages can threaten the growth of Western Europe, so the EU has now
launched a campaign against the shortage
(Spiegel online, February 2012)
Electric cars to be hit by supply disruptionsthats the verdict of a new report
from the US Department of Energy entitled 2011 Critical Materials Strategy,
which looks at supply challenges for ve technology metals. These met-
als were found to be near critical (US Department of Energy 2011 Critical
Materials Strategy)
Dysprosium, along with terbium, europium, neodymium and yttrium, have
been reported as already reaching critical levels of short-term supply
(2011 Critical Materials Strategy US DoE)
Theres no substitute for yttrium. Without it, you cant make the refractory
moulds needed to make jet-engine turbine blades. If you cant make jet-en-
gine turbine blades, you dont have jet engines or power turbines. The price
points for these TMs will reect true scarcity and unalterable demand. Peo-
ple will bite the bullet and pay what they have to in order to get the yttrium
(Financial Times, November 2011)
Industrial buyers are in shock after witnessing the price of TMs, such as ce-
rium oxide jumping 475 per cent in just ve months, amid falling supplies
(Financial Times, November 2011)
TMs are the economic and technological foundation of a safe and secure na-
tion. To possess them imparts independence, immunity to coercion, and
the tools to invoke scientic advancement
(James B. Hedrick, US government mineral resources advisor)
22 | Electio
Supply chain issues
The supply chain for Technology Metals generally consists of min-
ing, separation, rening, alloying, and manufacturing (devices and
component parts). A major issue for TM development in the United
States is the lack of rening, alloying, and fabricating capacity that
could process any future TM production.
An April 2010 Government Accountability O ce report illustrates
the lack of US presence in the TM global supply chain at each of the
ve stages of mining, separation, rening oxides into metal, fabri-
cation of alloys and the manufacturing of magnets and other com-
ponents. According to the GAO report, China produces about 95%
of the TM raw materials, about 97% of TM oxides, and is the only
exporter of commercial quantities of TMs. As an example, special
magnets that operate at the highest temperatures include small
amounts of TMs, which are currently only available from China.
Around 90% of the TM alloys are produced in China (with some
minor production in the US), thus, even if US TM production ramps
up, much of the processing and metal fabrication would still occur
in China.
*Please note the above brand names are used for illustrative purposes only.
Demand from companies
around the world
25 | Electio
Electio TM products
Before oering TMs to our clients, Electio conducted over 12 months of
market analysis both externally and internally through our large client
database to determine how and when professional investors would wish
to trade TMs.
We found clients considered diversication to be at the top of their wish
list and the general consensus was clients would feel more vulnera-
ble holding one type of TM. For this exact reason, Electio has designed
trades to be executed in baskets to diversify risk across a number of
dierent metals.
Holding more than one type of TM aims to spread your risk across the
market and is less focused on the individual performance of a specic
metal. As you will see below, Electio has also structured its baskets so
they have specic sector or industry focus. This allows clients to not only
diversify the types of TM but also diversify the sectors and industries
those TMs are used in.
26 | Electio
Smartphone basket
Europium Oxide
Terbium Oxide
Dysprosium Oxide
Erbium Oxide
Technology Basket
Erbium Oxide
Dysprosium Oxide
Praesodynium Oxide
Ytterbium Oxide
Green Energies Basket
Erbium Oxide
Lanthanum Oxide
Neodymium Oxide
Yttrium Oxide
Defence Basket
Ytterbium Oxide
Neodymium Oxide
Cerium Oxide
Gadolinium Oxide
28 | Electio
The opportunity
Electio has created a full service solution for private clients to:
Buy TMs
Hold TMs, and
Sell TMs
The below are some of the key attributes to purchasing TMs through Electio:
2-5 year recommended hold period
3 years bonded warehouse storage
Insured at full market value
Simple buying process
Security of a regulated administrator
Security of a regulated custodian (i.e a bank)
Simple exit option through Electio platform*1
Take physical ownership of your asset if desired*2
Global demand predicted to increase by 8-12% pa until 2015 (Houses of Parliament department
of Science and Technology research note, June 2011)
China controls 97% of world exports - export quotas will fall to 65% by 2014
(Chinese Government Export Quota, May 2011)
*1: Subject to market conditions and liquidity.
*2: Client would be responsible for any taxes due dependant on delivery jurisdiction.
Why inve in TMs?
The simple answer: supply and demand. Experts agree global de-
mand for TMs is set to soar in the next 5-10 years and worldwide,
exponential sales growth is forecast for consumer electronics and
electronic vehicles - all of which rely on TMs for production.
Demand for TMs is further enhanced by the looming deadlines
many nations have agreed to lower their carbon emissions by, as
they move to greener sources of energy production, such as wind
and solar - technologies heavily reliant on TMs.
These governmental pledges were further endorsed by a swathe of
new commitments made recently at a United Nations Conference
on Sustainable Development in Brazil (rio+20). In January 2012, the
US Energy Department warned limited supplies of the ve TMs used in
green technologies would pose a threat to production by 2015.
David Sandalow, assistant secretary for policy and international af-
fairs at the Department, said: Demand for technology metals has
grown more rapidly than that for commodity metals such as steel.
A unique phenomenon is occurring in the TM industry that experts
have described as the perfect storm for business. While TM de-
mand increases, uncertainty about the industrys ability to keep up
with supply continues to make headlines. China currently controls
over 95 percent of the worlds supply of TMs but has been restricting
export quotas.
30 | Electio
In July 2010 China reduced these quotas by 40 percent. In March,
the US, EU and Japan asked the World Trade Organization for a
review of Chinas policies, accusing it of attempting to give its own
high-tech industries a competitive edge over the rest of the world.
Although China only has about 40 percent of global estimated TM
deposits - and there are several projects worldwide underway to
extract the ore - it seems unlikely production will be able to satisfy
current demands any time soon. In fact, China itself could become
a net importer of TMs by 2014, according to Mark Smith, CEO of
Colorado-based TMs mining company Molycorp. Recent reports
in the media suggested China has begun buying and stockpiling
TMs, taking advantage of current low prices.
Experts believe TM shortages are likely in the coming years, The
Daily Telegraph recently reported. It also quoted Pricewaterhouse-
Coopers as likening the TM supply situation to a ticking timebomb. In
a recent Technology Metals report, TM expert, Jack Lifton, said The
critical TMs will maintain strong demand and associated pricing.
Certain TMs have oered staggering returns ... over the past four
years
31 | Electio
Client security
At Electio we believe we have developed the safest and
most secure trading and holding structure for TMs globally.
We are proud of the structure we have developed including:
Electio Regulatory Framework
Delivery vs Payment (DVP)
Tangible asset / commodity
Electio Platform
Regulated administrator
Bank / Custodian
Bonded warehouse
Insurance
38 | Electio Asset Management
Electio Regulatory Framework
Electio has incorporated many operational and man-
agement practices and principles akin to those found in
regulated markets in an eort to, among other things,
Distinguish itself from other market participants by
establishing itself as a more professional, secure and vi-
able business

Provide greater condence and security to its clients
and other stakeholders

Position itself for its long term expansion and growth
initiatives and aspirations
Delivery versus payment or DVP is a common form of set-
tlement for securities and commodities. The process in-
volves the simultaneous delivery of all documents neces-
sary to give eect to a transfer of securities in exchange
for the receipt of the stipulated payment amount. Ideally,
title to an asset and payment are exchanged simultane-
ously.
Electio has the resources and scale to oer clients the
ability to receive delivery / title of their purchased TMs
in exchange for payment. This means there is no order
period or waiting period.*
*Subject to banking hours, warehouse hours and Electios
Terms & Conditions.
Delivery Vs Payment (DVP)
40 | Electio Asset Management
Tangible asset / Commodity
While investor condence remains low, Electio believes you
should physically own what you are paying for. TMs are a
physical, tangible asset / commodity that can be physically
delivered to a warehouse of the clients choosing if required.
What is a bonded warehouse?
Given the physical nature of TMs, Electio stores clients purchased TMs
in secured bonded warehouse in reputable jurisdictions.

A bonded warehouse is a building or other secured area in which du-
tiable goods may be stored and managed or undergo manufacturing
operations without payment of duty. It may be managed by the state or
by private enterprise. In the latter case, a customs bond must be posted
with the government. This system exists in all developed countries of the
world.
Below are some of the key attributes of a bonded warehouse:
Delivery to and storage at load port
Ocean transportation if required
Discharge and storage at the destination port
Customs formalities
Delivery to nal destination if required
High security
Title certications
36 | Electio
43 | Electio Asset Management
Bank / Cuodian
Bermuda Commercial Bank (BCB) - a fully licensed and
regulated bank - provides global custody services to
funds, trusts, corporate entities and individuals through
its international correspondent network. BCB operates
in 85 countries and can hold equities, debt instruments,
commercial paper, commodities and metals, for or on be-
half of its clients.
Below are some key facts about BCB:
Established by an act of Parliament in 1969
Licensed and regulated by the Bermuda Monetary Au-
thority
Previously part owned by Barclays Bank
Listed on Bermuda Stock Exchange
One of only four licensed banks in Bermuda
BCB is a member of the SWIFT (Society of Worldwide
Interbank Financial Telecommunication) network

The TMs of Electios clients are under the custody of BCB.
This world-rst arrangement for custody of TMs oers en-
hanced service and security with investor peace-of-mind
as the fundamental cornerstone of our client relationships.
38 | Electio
Regulated Adminirator
Beacon Fund Services (Beacon) provides comprehensive and sophisticated management, consulting, administration, accounting and other related
services to a wide range of oshore and domestic hedge funds, and other international entities with over $10BN of assets under administra-
tion.
Below are some key facts on Beacon:
Beacon is licensed and regulated by the Bermuda Monetary Authority (BMA) under the Investment Funds Act 2006
Established in 1995
Over $10 billion USD of assets under administration
The TMs of Electios clients are under the custody of Bermuda Commercial Bank (BCB). The appointed authorized agent of BCB is Beacon
Fund Services, a regulated administrator, responsible for the management and administration of BCBs custody arrangements related to
TMs of Electios clients which includes conrmation of bar-codes, storage, insurance and custody in respect thereof.
This is another world rst and another important part of the service and security Electio prides itself on.
39 | Electio
Opening your account
We set-up an Electio account in your name and assign you a Electio account number.
Your platform access is granted once we have emailed you your login details for iPhone app, iPad and computer.
The trade price is locked down before payment is made.
We send you conrmation of payment and trade direction by way of the Trade Notication.
Complete application form and provide 2 forms of identication.
We email you the Contract Note which conrms the quantity and price of TMs purchased.
40 | Electio
Managing your account
We allocate you a broker to keep you updated as often as you request.
We will invite you to corporate days at major sporting and sponsored events.
We send you monthly TM news.
We will send you important announcements via Electios online platform and iPhone app.
The Electio Client Liaison Team is just a phone call or email away and ready to answer your queries.
You will receive general Electio electronic newsletter feed.
41 | Electio
balance your decision
This document is for professional inveors and advisors only and not
intended for diribution to the general public. There is no guarantee of
performance and/or price and pa or projected performance and/or price
is not necessarily indicative of future performance and/or price.

This document does not conitute a prospectus, oer, invitation or
solicitation for the sale of technology metals (TMs) nor should it be
conrued to conitute any invement advice. It is not intended to
provide the sole basis for any evaluation of TMs or any other inrument
or product which may be discussed in it. Purchase of TMs can only be
made by completing the order form of Electio and/or its aliates and/
or its agents and agreeing to Electios terms and conditions referenced
therein. Acopy of the Electio terms and conditions may be obtained
from Electio and/or from Electios website (www.electio-inve.com) at no
charge.

An invement in TMs involves a degree of risk. Prospective inveors
should consider carefully the risk factors described in the Electio terms
and conditions and their own circumances, before deciding to inve in
TMs. In making an invement decision, inveors mu rely on their own
examination of the TMs and Electios terms and conditions, including
the merits and risks involved. No assurance can be given that the
performance and/or price of TMs will be maintained or increase.

This document may not be used for the purpose of an oer or solicitation
for the sale of TMs by any person in any jurisdiction (i) in which such oer
or solicitation is not authorized, or (ii) in which the person making such
oer or solicitation is not qualied to do so, or (iii) to any person to whom
it is unlawful to make such oer or solicitation.

Inveors intereed in acquiring TMs should inform themselves as to: (i)
the legal requirements within the country of their nationality, residence,
ordinary residence or domicile for such acquisition; (ii) any foreign
exchange rerictions or exchange control requirements which they might
encounter on acquisition or disposal of the TMs; and (iii) the income
tax and other taxation consequences which might be relevant to the
acquisition, holding or disposal of the TMs.

Johannesburg
Unit 20, 1 Melrose Boulevard
Melrose Arch, Johannesburg
South Africa 2193
Telephone: +27 (0) 11 684 1747
email: info@electio-inve.com
Dubai
Oce #1702, One by Omniyat
One Business Bay, Fir Al Khail Street
Dubai, UAE
Telephone: +971 4447 0990
email: info@electio-inve.com
Qatar
Level 22, Tornada Tower
Al Funduq Street, We Bay
Doha, Qatar
Telephone: +974 4429 2554
email: info@electio-inve.com
ELECTIO
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