Portfolio Companies

Lead Hedge Fund -- Our lead hedge fund is a $16.9 Million conservative, long-short fund that has returned 22% per year compounded for the seven years ending December 2007. Generally, no leverage is applied and the fund is not involved in the sub-prime, financial or real estate sectors.

Management finds the fund manager to be an intelligent, ethical, analytical, focused professional whose life is immersed in researching, identifying and executing superior investments. We could not be happier in entrusting our investment funds into the hands of this rare financial talent.

Mentor Capital, Inc. will invest a minimum of $125 Million into the fund over time. Until MNTR shares trade at $8 per share or more, the Company will receive 80% of the net management fees (1% to 2% per year on all assets) and performance fees (20% of all returns). After the shares trade at $8 per share, Mentor Capital will receive 20% of the combined net fees on assets under management (AUM) beyond those needed to reach the $8 trading threshold. The fee sharing applies to the existing $16.9 Million in AUM, Mentor Capital funds and future investments by others in the hedge fund.

(Note: Because of the prohibition on hedge funds advertising to the public, the identity of the hedge fund will not be displayed and "advertised" here).

Waste Consolidators, Inc. -- WCI provides services to apartment complexes, office parks, residential communities and other properties to cost effectively manage their trash, refuse and clean-up needs. WCI is Phoenix based and has approximately $1.2 Million in revenue. Their web site is www.WasteConsolidators.com.

Mr. Kyle Thomas is the founder and owner of Waste Consolidators, Inc. He could well be the prototype of the ideal small business owner. Over the years, he has built the business to be a solid moneymaker, overcoming obstacles along the way. Today, he is completely in command of all aspects of his business and business model. His outstanding trait is the quality of his character. I do not think he would mind me saying that he exemplifies the best of a Christian business and family man. We respect him, his values, his work and his business.

Mentor Capital has had an investment in Waste Consolidators, Inc. since 2003. With the onset of trading in MNTR stock, we expect that WCI will have additional capital with which to expand its operations. Consistent with the general Owners' Fund model, Mr. Thomas withdraws an upward adjusting salary he has selected. He pays a regular, but modest, administrative fee to Mentor Capital based upon his financing.

Since his is a 50% financing program, when, as owner, Mr. Thomas wishes to withdraw additional or surplus funds from the business, those are split 50% - 50%.