Regulatory & Compliance
Martial Capital Ltd. has been granted an Investment Business License and Martial Funds Ltd. have been approved by the Bermuda Monetary Authority. For more details visit their website at www.bma.bm

Tax Reporting
Our funds do not report the investment activities of its clients to any tax authority. There are no Bermuda taxes due on your investing in either of our funds.

Audits
Our funds are audited by KPMG (Bermuda). The first audit will be for the 13 months ending September 30, 2008.

Withholding
Both the IRS and Revenue Canada will withhold 30% of the interest and dividends earned by the funds in lieu of taxes. Since virtually all of our gains come from capital gains, this withholding should not be material.

United States and Canadian Residents
It is perfectly legal for a resident of the US or Canada to buy units in our Bermuda-based funds. What is not legal is for Martial Funds Ltd. to market to US or Canadian residents. Therefore, in an abundance of caution, we have voluntarily decided not to accept US or Canadian residents in any of the Bermuda funds.

To accommodate US residents, we intend to establish separate US-based funds. These US-based funds will have their own website which will be password protected to ensure it is not available to the US public at large. These funds will give each unit holder at the end of each calendar year the appropriate IRS forms to report their income as would any US based mutual fund or hedge fund. We hope these US funds will be up and running before the end of 2007.

We are hoping to have a similar Canadian entity, registered in at least BC and Alberta, established in 2008.