Investment Letter - June 2017

Dear Fellow Partners,

The performance of our Fund continues to display the volatility inherent in

our single largest equity exposure namely the gold mining equities. We have
been range-bound within the same wide range of volatility which has persisted
for this asset and therefore for our Fund since late January of between +25% to
-15%. April 2017 was a good example of this intra-month volatility, where gold
equities were bid at the start of the month, only to end the month lower then
where they began. As value investors, we continue to use this ephemeral
weakness as a buying opportunity to average our cost basis lower. A month like
April 2017 where the Fund returns approximately -11% is frustrating, but
subsequent mark to market portfolio gains in May, and the beginning of June,
have recouped these losses putting the Funds 2017 Year to Date,(YTD),
performance at approximately +28%.

While this range of volatility appears great it is merely the breadth of the
lowest quartile of price movement of our number one asset holding within the
last 12 months and most importantly, this volatility does not represent any
major changes within the portfolios composition, or from actual positions
opened and closed as the turnover of the Funds assets has been relatively low.
This volatility and performance represents the mark to market changes in the
prices of our gold mining equities that have been bouncing off or hovering near
their lows since January 2017. These low price levels in turn represent general
investor disdain for gold as an asset and in particular for gold mining equities
that are currently priced at levels that represent 50 year lows relative to gold

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bullion prices that are in themselves depressed. By now all of you as fellow
partners are well acquainted with our views of gold and this market. Rather
than repeat those views that remain unchanged, wed rather comment in this
letter on the issues reflecting timing and risks/reward potential moving
forward. As managing partners of this Fund we are ultimately paid on not what
we think should happen, but rather on what we see will actually happen and
this outlook is what we think is about to happen in the back half of 2017, and
in fact has already begun to happen beneath the complacent market surface.

The Here and Now What is About to Happen

Eight years of relentless and non-stop money printing along with

unprecedented new debt creation all designed to save the world from the last
debt meltdown in 2008 is about to be rewarded with a brand new round of debt
failure as the U.S. economy hits stall speed and has begun to tilt downward
rapidly. Recent emerging debt failure highlights include: Puerto Rico has just
effectively declared bankruptcy on $72 Billion in debt, and the State of Illinois
is about to become the very first state in the U.S. to have its debt junk rated
as the state has just revealed that it has $18 Billion in unpaid bills which
represent more than 40% of its annual budget. Not a week now goes by where
mainstream financial press has finally started to report on a surge of sub-prime
auto loan defaults, plateauing auto sales, increased consumer credit card loan
charge offs by banks, dismal sales from traditional retailers, and subsequent
pressure on the occupancy levels of shopping mall REITs, as they face a wave of
announced store closures from a contracting tenant base looking to pay less in
rent at fewer locations. (These are all signs of a struggling debt laden
consumer which is why we have re-initiated shorts in the various
aforementioned sectors to capitalize on this emerging economic weakness).
This prevailing economic softness in hard data is juxtaposed in stark contrast

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to the weakening narrative of economic recovery driving the stock market to
record highs.

All of this means that the FED will not be able to follow through on its
pledge to continue to hike rates in the weeks and months ahead, which in turn
means the U.S. Dollar will face a renewed bout of dollar selling which will
significantly buoy gold prices and even more significantly the share values of
our gold mining equities. An admission that our economy cannot withstand
modestly higher interest rates and instead needs a fresh round of monetary
easing would mean a complete reversal of investor sentiment in gold and gold
equities which we believe to be a likely near term outcome that compels us to
endure the recent downward portfolio volatility we have faced in order to
capture the upside reward that is highly likely multiples of the downward
action we have seen since November 2016. That is why we have remained
patient and resolute with our positions and risk profile. After this anticipated
change in investor sentiment towards gold and related precious metals mining
equities, we intend to monetize these expected returns as well as re-institute
aggressive downward portfolio hedges to follow this repricing. What we
anticipate happening is a major shift in investor perceptions. There will be a
complete investor rearrangement of risk appetite in terms of stocks, bonds, the
dollar and precious metals. Investors now are not positioned correctly for what
we anticipate will happen in the coming months. Our Fund is. The process of
investors rearranging their investment assets away from dollar-centric, debt
laden financial assets and instead toward real wealth assets of which gold sits
at the top of this wealth pyramid will be the mechanism in which our Funds
returns will see a dramatic and positive leap forward. All of our collective
patience through this frustrating period of waiting these past 7 months will be

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very well rewarded. We thank all of you as our partners for your confidence
and patience.

Sincerely,

John Scurci1

1Legal Disclaimer - Attention: The information contained herein is confidential and is intended
solely for the use of the intended recipient. Access, copying, distribution or re-use of this letter
by any other person is not authorized. If you are not the intended recipient please advise the
sender immediately and destroy all copies of this letter. Nothing presented herein should be
deemed to constitute a recommendation or an offer to sell any investment product. This letter
contains forward looking statements, as defined by SEC Regulation D, and the Investment Act
of 1940, which are the original ideas and best judgments of the authors. The conclusions
expressed herein are not guaranteed, and past performance is not predictive of future results.
Circular 230 Notice: Any written advice provided herein (and in any attachments) is not intended
or written to be used, and cannot be used, to avoid any penalty under the Internal Revenue
Code or to promote, market, or recommend to anyone, a transaction or matter addressed
herein.

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Silicon Valley | British Virgin Islands | www.CoronaCap.com