Investment Objective:

Achieve long term capital appreciation through investing in companies that operate within the natural resource sector.

Investment Rationale:

Natural resources sector is expected to offer long term above average performance.

• Economic growth is the most important driver of oil demand and the rapidly expanding non-OECD consumption, particularly in Asia, implies an increasingly important role in incremental global oil demand growth.

• The United States and the United Kingdom's peak oil and gas production were events that were predictable and inevitable.

• All new resource discoveries are smaller and more expensive to find and develop.

Investment Process:

The Millennium Global Natural Resources Fund (MGNR) intends to make investments based on a fundamental valuation approach that incorporates value gaps, event related catalysts and technical trading parameters with the intention of reducing risk exposure, limiting volatility and maximizing capital growth.

The main selection criteria for long value buying with event catalysts can be summarized as follows:

• Companies' equities and other instruments, funds and royalty trusts with quality management.

• Substantial discounts (or premiums) to companies' intrinsic values based on earnings or net asset values.

• Anticipated capital gains within 6 to 18 months of original investment.