Arch Grants PresentationPartners:

Doug Ford, Chuck Lee, Michael Rohrbacker & Mark F. Mueller

April 27, 2013

Business Overview• Rockhound Boring Products, LLC currently manufactures and sells patented Directional

Underground Boring Bits and has plans for many other related products.

• Our VISION is to become a key player in the construction services industry by providing a complete line of quality underground boring products that will enable users to be as efficient as possible and have minimal impact on the environment.

• Our MISSION is to become THE go to resource for underground boring products and services to each and every Utility Contractor. We want to help them become more productive and efficient in their drilling operations.

• Birth of the IDEA: One of the partners, Doug Ford, was in the construction business when an associate expressed his frustration of not having a quality drilling bit that would bore through all materials. Doug took that as a challenge and set out to develop a boring bit that would help all utility contractors and construction companies complete jobs quicker and less expensively. The result of his efforts is the patented Rockhound Directional Underground Boring Bit.

Market Need • Currently, Utility Contractors have to either trench and blast to remove solid rock from a

drilling site or they pound away with a bit not designed for that task, which not only destroys the bit, but eventually the expensive trenchless machine as well.

• These efforts result in enormous overruns on many construction sites, both in terms of employee time and equipment rental/usage. They can be planned for, but having the Utility Contractor bore through solid rock with inefficient equipment in order to lay utility lines underground drives up the overall project cost.

• Using the Rockhound Boring Bit will enable Utility Contractors to bore the hole for a site’s utility lines much quicker, using fewer labor hours and fewer bits. And since the bore is performed at a lower RPM and less PSI their equipment lasts longer and requires fewer repairs. There is also much less of an environmental impact when using a Rockhound bit.

• Using a Rockhound Boring bit will enable all parties to earn revenue. Rockhound makes money through the sale of products, their services and/or consultations on how to approach and quickly complete tough boring projects. Contractors will be able to bid on jobs they have been unable to handle before and earn additional revenue.

Management Team • The Rockhound Management Team consists of four partners:

– Doug Ford – President and inventor of the Rockhound Boring Bit and its proprietary manufacturing process.– Michael Rohrbacker – Executive Vice President, Sales.– Chuck Lee – Secretary & Treasurer.– Mark F. Mueller – General Counsel.

• Relevant Background– Doug – Owned a construction company for 5 years and worked as a millright at Chrysler for 13 years.– Michael – Independent Insurance Broker with Carillon Group for 10 years.– Chuck – MBA in Marketing and Account Team Director for numerous multi-million dollar Fortune 500

marketing/performance improvement projects. Owns own company, Intelliformance, LLC Business Writing Services. Has been a writer and project manager for 20+ years.

– Mark – JD from St. Louis University. Owner of The Law Office of Mark F. Mueller, LLC. Practicing Lawyer for 15 years.

• Responsibilities @ Rockhound– Doug – Responsible for all Production and Quality Control.– Michael – Responsible for Sales and Customer Service.– Chuck – Responsible for Marketing and Finance. – Mark – Responsible for all Legal issues and Government Relations.

Industry & Market Opportunity• Rockhounds’ Target Markets include:

– Primary – Utility Contractors and General Construction Companies. – Secondary – Construction Equipment Manufacturers, Construction Supply Houses and Internet Stores.

• Market Statistics– NAICS categories Heavy & Civil Engineering Construction (237) and the Utility subset (2371) is where most of our

targeted customers are classified. The latest US Census shows there are 700,831 construction companies and 5,749 utility construction companies in operation throughout the United States.

– Manta lists 45,246 construction companies in the state of Missouri alone with 1,641 being Excavation Contractors and 1,213 being General Contractors.

– Reference USA shows that there are a total 427 Utility Contractors having sales from $10 million to $1 billion and 2,070 having sales of from $2.5 to 10 million in the US.

– These numbers show that the potential market for all Rockhound Boring products is sizable.– In terms of growth, the construction industry is coming out of a downturn and is forecast by First Research, a Division

of Hoover’s, to grow at an annual compounded rate of 7% between 2011 and 2016.– Therefore, our targeted customers are now starting to make money, are growing and will be investing in new

equipment and technologies like the Rockhound Boring Bit.

• Rockhound Sales Projections– Conservatively, Rockhound expects to sell 82 bits for $328,000 in 2013, 186 bits for $744,000 in 2014 and 300 bits for

$1,200,000 in 2015.

Product Offerings • Rockhound’s initial product line will include a patented Directional Underground Boring Bit for

each of the two largest trenchless machine companies, Ditch Witch* and Vermeer*. The primary difference, from our perspective, is each company’s machines have a different hole pattern where the bit bolts to the trenchless machine’s drill stem.

• There are several unique features of this Rockhound Directional Boring Bit including:– It will bore through solid rock. No other bit that we know of on the market today can make that claim.– Each bit has 38 cutting tips, all made from the finest US made tungsten carbide steel, which is more points than any other

bit.– All tips are anchored into the base using a positive-lock design. They won’t come loose or fall out.– The bit is designed to drill on center.– A water-jet is incorporated into the design. This allows the bit to be steered to avoid existing underground pipes.– The Rockhound bit has been awarded three design patents and a utility patent for the manufacturing process has been

filed.– Finally, all Rockhound Boring Products have been and will continue to be completely designed, tested and manufactured in

the USA.

• Other products that we plan on adding to our product line include beacon housings, sonde housings, drill stems, reamers and an electronics package.

* “Vermeer” is a registered trademark of Vermeer Corporation. “Ditch Witch” is a registered trademark of Charles Machine Works, Inc..

• Specifications:– Dimensions: 9 ¾” Long X 4 ¼” Wide X 2 ½” High– Weight: 18.5 pounds

The Rockhound Boring Bit

Marketing • Introduction by referral is the primary method Rockhound will use to meet and acquire

customers. Since every partner has significant business relationships, each will be asking all connections for a warm introduction to Utility Contractors and Construction Company executives, or anyone else who may have a connection to our target audiences.

• The primary marketing tool that will be used to promote Rockhound will be the website, www.rockhoundboring.com. This site features a video showing the Rockhound bit in use at an actual job site.

• Rockhound will also attend and display our products at numerous industry trade shows.

• Rockhound will create and implement a follow-up information and loyalty program to keep our customers engaged, informed and a true partner in our success.

• We will, of course, produce a general information brochure and a technical specification/product description sheet for each item in our product line.

• Finally, we will produce a series of videos showing interested parties how to install and use our boring bits. These will all be available free of charge on our web site.

Production Partners• Rockhound has partnered with the following exceptional US vendors in our quest to produce

and sell the best possible Directional Underground Boring Bit.

– ATI Firth Sterling Engineered Products – Provided tungsten carbide points.

– MetalTek International – Produced production molds and will be the foundry for all pours.

– K-D Machine & Tool – Machine shop that will drill all needed holes and finish bit surface.

– Binding Solutions – Supplied product packaging.

– CN-Video – Created demonstration video and will shoot/edit field installation videos.

– A Skeetz Productions – Graphic Designer responsible for graphics and print production.

– Stadio Studio – Website design and hosting.

– CreatiVenture Law, LLC – Provided patent assistance.

Summary• Rockhound Boring Products, LLC has patented and is manufacturing a Directional

Underground Boring Bit that is unlike anything else in the construction industry today.

• It allows Utility Contractors to be more productive, make more money and bid on jobs they have not been able to bid on before.

• Rockhound has a well-rounded and experienced management team who will lead the business into a promising future.

• Sales will begin immediately and are conservatively expected to reach $1,200,000 by the end of year three.

• Rockhound has numerous other construction industry related products under consideration that will result in an entire line of Underground Boring Products.

• Obtaining Arch Grant Funding will enable Rockhound to expand it’s marketing efforts – particularly trade show attendance, manufacture sufficient product to be able to meet customer demand immediately and ramp up R&D on the additional product offerings mentioned.