American Alliance Financial & Funding Group

Corporate Summary

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Legal THIS CORPORATE SUMMARY DOES NOT CONSTITUTE AN OFFER TO SELL OR SOLICITATION OF AN

OFFER TO BUY FROM ANY PERSON IN ANY STATE OR OTHER JURISDICTION IN WHICH SUCH OFFER

OR SOLICITATION WOULD BE UNLAWFUL, OR IN WHICH THE PERSON MAKING SUCH OFFER OR

SOLICITATION IS NOT QUALIFIED TO DO SO, OR TO A PERSON TO WHOM IT IS UNLAWFUL TO MAKE

SUCH AN OFFER OR SOLICITATION. THERE IS NO PUBLIC MARKET FOR THE SECURITIES, AND NONE

IS EXPECTED TO DEVELOP IN THE FUTURE. THEREFORE, INVESTORS SHOULD BE AWARE THAT THEY

MIGHT BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE

PERIOD OF TIME.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS. This Executive Summary

contains “forward-looking statements” within the meaning of the federal securities laws. Forward-

looking statements are those that predict or describe future events or trends and that do not relate

solely to historical matters. For example, forward-looking statements may predict future economic

performance, describe plans and objectives of management for future operations and make

projections of revenue and other financial items. Prospective investors should not rely on such

forward-looking statements because the matters they describe are subject to known (and unknown)

risks, uncertainties and other unpredictable factors, many of which are beyond our control.

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AAFFG Company Profile A financial services institution with its vast assets

under management, unique approach, dynamic relationships, and core expertise. Leading global conduit focused on the following sectors:

• Banking• Energy• Mining and Minerals• Government• Technology

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AAFFG Mission

AAFFG is dedicated to creating value for its stakeholders and operating under the premise to:

Reinvest a significant portion of its net proceeds into the betterment of communities of the world it engages.

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Corporate Structure

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AAFFG Key ManagementSteven V. Cross – Chairman & Chief Executive Officer

 Phillip Long – Chief Financial Officer

CD Rowsell – Senior Executive Vice President, Investments

Gary Wiess – Senior Vice President, Commodities

Alexander Chang – Executive Vice President, Legal Counsel – Asia

Thomas L. Woodall – Senior Vice President, Chief Legal – Americas

William C. Brannan – Senior Vice President, Economics & International Planning

Richard Scales – Senior Vice President, Financial Management

Jim Lewis – Chief Geologist

Paul Pomp – Chief Silica Engineer

Gordon Pomp – Silica Production Manager

Steven Hopkins – Project Lifeguard Supervisor (EDCU – Utah Governors Office)

Stacy Hopkins – Chief EDCU Coordinator

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Balance SheetASSETS LIABILITIES

Cash $50,000   Accounts payable

$2,444,577

Accounts receivable $0   Short-term notes $0

Short Term Investments  $0   Taxes payable $0

Prepaid expenses $0   Accrued payroll $ 4,477,083

Total Current Assets $50,000   Total Current Liabilities $ 6,921,660

         

Investments – LP (Non Minerals and Mining) $ 1,969,730   Long Term Notes Payable

$ 7,578,000

Investments - LP Mining and Minerals

(Valuation * Rev Share) $3,214,355,000,000  

Total Long Term Assets $3,214,357,019,730   Total Long Term Liabilities $7,578,000

     

      STOCKHOLDERS EQUITY  

      Paid in Capital $0 

      Retained earnings $3,214,342,520,070

Total Shareholders' Equity $3,214,342,520,070

       

TOTAL ASSETS $3,214,357,019,730   TOTAL LIABILITIES & EQUITY $3,214,357,019,730

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Summary of Silica Leases• The 3 distinct mineral leases on 40,000+ acres contain an estimated 50 billion tons of quartz silica rock of very high purity, as well as an abundance of quartz crystals of gemstone and fiber optic quality.

• The British Columbia sites are located near rail facilities connected to port facilities at Vancouver, BC or Prince Rupert, BC. The Idaho site is also close proximity to rail facilities.

• Geologic sampling has revealed exceedingly pure samples of silica comprised of 97.7% to 99.3% silica, with iron oxide contents ranging from 0.02% to 0.05%. Majority of prospect is covered with only 2-4 inches of overburden consisting of moss and light soils.

• Underlying the main silica deposit, there is an inferred gold deposit varying from 600-800 feet in depth from the surface.

• AAFFG is General Partner owning 51% of the limited partnership and 40% of net revenues.

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Location of British Columbia and Idaho Silica Sites

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Silica Diverse Uses• Glass (a colorless, high-purity form is called fused silica)

• Silica gel (used as desiccants in new clothes, leather goods, electronics)

• Raw material for ceramics such as earthenware, stoneware and porcelain.

• Raw material for the production of Portland cement.

• Food additive in powdered foods or to absorb water

• Electronic insulator as the natural oxide coating grows on silicon is a electric insulator, possessing high chemical stability.

• Raw material for aerogel for spacecraft, defense.

• Extraction of DNA due to its ability to bind to the nucleic acids.

• Added to medicinal anti-foaming agent

• As hydrated silica in toothpaste (abrasive to fight away plaque.)

• As fumed silica as pharmaceutical excipients. Improving flow properties of materials required for modern tablet and capsule

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Pure Silica Hi-Tech Uses• Solar Panels created from Silicon Wafers

• Optical Components - lenses, prisms, reflectors, mirrors, filters, optical flats.

• Analytical Instruments - UV spectrophotometer cells, fire control devices, reticle substrates,interferometer plates

• Semiconductor Electronic - Microcircuit substrates, microwave devices, photomasks, sputter plates, excimer lasers

• Lasers - beam splitters, brewster windows, medical/industrial systems, Q-switches, UV excimers

• Energy - Laser fusion research, isotope separation, solar cell covers.

• Spacecraft/Aircraft - Docking light covers, windows, re-entry heat shields, ring laser gyros.

• Fiber optics

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Potential Silica Buyers/Partners

• Chemical Manufactures (DuPont, Dow, BASF, Pharmaceuticals)

• Petro-chemical Processors

• Solar Industry

• Electronics Industry

• Glass Industry

• Construction Industry

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Initial Silica - Production and Pricing

• 10,000 metric tons per month mined in Year 1 from each of the 3 North American mines.

Overview of pricing of silica production:

• Raw decorative silica stone = $120 per ton.

• OR crush and grind silica stone into granular silica = $6,000 a ton.

• OR grind granular into powder = $7,500 a ton.

• OR by heat in a refinery furnace into a gel = $6,500 an ounce ($208,000,000 a ton)

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Risk Factors – Silica Production

• No customers to purchase the commodities, inadequate demand.

• Change in Technology

• Environmental, Local Permits

• Production Health Risks – Silicosis

• Delays due to weather, equipment failure, staffing

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Risk Mitigations – Silica Production

• Company actively pursuing silica buyers from diverse industries

• Company plan to ramp up production and refineries as demand and technology evolves

• Company working closely with local and national governments to secure permits and partnerships

• Company outsourcing production to experienced mining producers to reduce injury, equipment misuse, and staff training

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Silica Financial Projections

• 5 Year Net Present Value = $1.3 billion (8% discount rate)

• Based on Investment of $69 million over 14 months

• Investment Recovery (Cumulative Break‑even) in Q3 2009

• Cash Flow Positive Q2 2009 (Peak Cumulative Loss ~ $22 million)

  2008 2009 2010 2011 2012 5 Year

Total Silica Revenue $ 53,100,000 $ 699,840,000 $ 1,465,920,000 $ 2,669,760,000 $ 5,508,000,000 $10,396,620,000

Total Operating Expenses $ 39,825,000 $ 454,896,000 $ 879,552,000 $ 1,468,368,000 $ 2,754,000,000 $ 5,596,641,000

Total Profit $ 13,275,000 $ 244,944,000 $ 586,368,000 $ 1,201,392,000 $ 2,754,000,000 $ 4,799,979,000

Cumulative Total Profit $ 13,275,000 $ 258,219,000 $ 844,587,000 $ 2,045,979,000 $ 4,799,979,000 $ 4,799,979,000

AAFFG Profit $ 5,088,750 $ 93,895,200 $ 224,774,400 $ 460,533,600 $ 1,055,700,000 $ 1,839,991,950

AAFFG Cumulative Profit $ 5,088,750 $ 98,983,950 $ 323,758,350 $ 784,291,950 $ 1,839,991,950 $ 1,839,991,950

AAFFG Total Investment $ 27,000,000 $ 42,000,000 $ - $ - $ - $ 69,000,000

AAFFG Cumulative Investment $ 27,000,000 $ 69,000,000 $ 69,000,000 $ 69,000,000 $ 69,000,000 $ 69,000,000

AAFFG Net Cash Flows $ (21,911,250) $ 51,895,200 $ 224,774,400 $ 460,533,600 $ 1,055,700,000 $ 1,770,991,950

Cumulative Net Cash Flows $ (21,911,250) $ 29,983,950 $ 254,758,350 $ 715,291,950 $ 1,770,991,950 $ 1,770,991,950

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Metals and Mining Overview

• AAFFG receives 40% of gross profit from Appleman LP, Card LP, and Composite Corp JV

• Total Reserve Value > $300 billion

• Appleman LP owns mineral deposits of 50 million tons on 1,280 acres in Colorado

− Value of reserves in 2005 ~ $851 billion, today’s value > $2 trillion

54,300,000 oz. gold 704,700,000 oz. silver 61,100,000 oz. platinum 86,900,000 oz. palladium

− Economic life of mine = 20 years

− 5 Year estimate gross revenue = $13.6 billion

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Card LP Gold Overview

• Card LP includes inferred 7 million ounces of Gold at 600-800 feet (below the Silica)

• Market value of gold reserves ~ $7 billion

• Economic life is 20 years

• 5 Year estimated gross revenue = $803 million

• Initial investment capital = $69 million (included in silica investment)

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Precious Metals Projections

• 5 Year Net Present Value = $2.6 billion (8% discount rate)

• Investment Recovery (Cumulative Break‑even) in Q1 2010

• Based on Investment of $125 million over next 27 months

• Cash Flow Positive Q1 2009 (Peak Cumulative Loss ~ $50 million)

  2008 2009 2010 2011 2012 5 Year Total

Total Metals Revenue $ 45,695,658 $ 1,200,724,583 $ 3,587,259,879 $ 7,099,533,516 $ 8,186,454,796 $ 20,119,668,432

Total Operating Expenses $ 36,556,520 $ 952,675,017 $ 2,421,964,126 $ 3,233,779,880 $ 4,077,465,248 $ 10,722,440,791

Total Profit $ 9,139,138 $ 248,049,566 $ 1,165,295,753 $ 3,787,003,636 $ 4,003,989,548 $ 9,213,477,641

Cumulative Total Profit $ 9,139,138 $ 257,188,704 $ 1,422,484,458 $ 5,209,488,093 $ 9,213,477,641 $ 9,213,477,641

AAFFG Profit $ 3,655,655 $ 99,219,827 $ 466,118,301 $ 1,546,301,454 $ 1,643,595,819 $ 3,758,891,056

AAFFG Cumulative Profit $ 3,655,655 $ 102,875,482 $ 568,993,783 $ 2,115,295,237 $ 3,758,891,056 $ 3,758,891,056

Total Investment $ 54,000,000 $ 56,000,000 $ 15,000,000 $ - $ - $ 125,000,000

Cumulative Investment $ 54,000,000 $ 110,000,000 $ 125,000,000 $ 125,000,000 $ 125,000,000 $ 125,000,000

AAFFG Cash Flows $ (50,344,345) $ 43,219,827 $ 451,118,301 $ 1,546,301,454 $ 1,643,595,819 $ 3,633,891,056

AAFFG Cumulative Cash Flows $ (50,344,345) $ (7,124,518) $ 443,993,783 $ 1,990,295,237 $ 3,633,891,056 $ 3,633,891,056

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Investment Opportunities

• Strategic, Equity, Diversified Position in AAFFG Corporation (Parent/Holding Co.)

• Investment in AAFFG LLC Limited Partnerships & Joint Ventures:

− Pure Silica (USA, Canada, China)

− Metals Mining and Tailings (USA)

− Oil Exploration and Drilling (USA)