EFTA02234947.pdf

To: From: Sent: Thur 1/18/2018 12:37:27 PM Subject: Re: LSO investment opportunity Thanks. Sent from my iPhone On Jan 17, 2018, at 9:06 PM, rote: Wanted to pass this to Jeffrey to gauge interest. Belzberg and Livermore are large investors in Jadestone and this is the most interesting energy companies today given valuation. We're moving on this block next week and it's an immed 20- 30perc gain. With potential to double or more given the value proposition. Belzberg own 1perc and Livermore now 13perc. And with Tyrus Capital, the free float is less than lOperc. This would be a great first step if he has interest. David Sent from my BlackBerry 10 smartphone on the Verizon Wireless 4G LTE network. From: Sent: Thursday, January 11, 2018 2:31 PM To: David Neuhauser Subject: LSO investment opportunity To Partners: We now seemed well positioned to prosper in 2018. With that, we arc looking to complete our final overhang on Jadestone Energy next week. The deal will be back stopped by Jadestone's largest holder(S2B hedge fund Tyrus Capital) and we expect mgmt to take part. The value is so compelling, so I'm very confident we will sec a re- rate. I am offering any current LP's the chance to invest further in the fund. Monies would be required next week to take part. EFTA_R1_00994743 EFTA02234947 My view on JSE's upside is, once this overhang is finally lifted, and based on forward cash flows and free cash flows, the opportunity is great(30perc FCF yield today). So I suspect we will witness a nice move once completed. And even more for those that add. Always looking to provide insight and value to you all. This remains my most compelling investment for us. It will further prove out in the next few years and along with a strong valuation. Let me know if interested. Again, it's a total of $4mm of equity. Fully back stopped. We will be limited on our involved but trying to gain more expose to the block. This legacy seller was 90perc of the stocks selling volume in 2017. Which is amazing enough. At current values, and massive leverage to Brent, Jadestone has a run rate of $30+mm of cash flows and free cash flow and zero net debt($80mm EV). The company just hedge some of their 2018 production at 64+. Additionally, and per the company's previous press release, they have engaged bankers BMO and Stifel for a listing move to London. All best, David EFTA_R1_00994744 EFTA02234948