The Deep Water Recovery Funds

Deep Water Recoveries Opportunity Fund

The Deep Water Recoveries Opportunity Fund, which is phase 4 of the Igara Wreck Salvage operation, carries an opportunity for investors to return 40% on their original investment over the next 6-12 months. This is not a profit share scenario but a fixed return; the company running this, who have had over 30 successful years in the salvage business, have already recovered half the cargo as the wreck is only 42 meters down with good visibility, with this being the last phase.

This is a fantastic opportunity to realise an excellent return over what is a fairly short period of time. And of course, as the wreck has already been located and worked on previously, then you should be strongly considering this as a part of your short term investment strategy.

In 1973 the IGARA, a massive 134,000dwt, 300m long and 40m wide bulk carrier, sank, setting a record for being the largest marine insurance loss ever in the world at that time, filled with 90,000mt of iron ore. At the time the ore was not worth salvaging but by 2005 its price had risen to an attractive level. ICRL (International Cargo Recoveries Limited), a BVI-based salvage management company recognized this value and contacted the insurers and acquired the legal rights to the ore and the salvage rights to the hull. In 2005/2006 ICRL contracted Deep Water Recoveries (S) Pte Ltd (“DWR”) to recover the ore. DWR recovered all the ore accessible to big grabs (60,000mt) and the operation grossed US$2.5m.

ICRL has recently recontracted DWR to revisit the wreck and recover the hull and the remaining ore. Due to spillage during the hull cutting, not all the theoretical 30,000mt remaining can be recovered. DWR expects to retrieve 15,000mt. This has a current market value of approximately US$645,000.

The hull contains an estimated 11,000mt of steel and DWR plans to refloat it, tow it ashore, cut it up and sell it for scrap, realizing around US$200/mt or US$2.2 million for the entire hull. The anticipated gross income of the six-month Project is thus US$2.8m but as they already know the location of the wreck, the hardest part of any salvage operation, this last opportunity is not profit-share based but fixed return; this is unique.

In order to raise capital for this project, DWR is now making available a limited number of shares on a first come-first served basis. The terms for investment in this project are as follows:

• Total number of shares on offer for sale: 30
• Price per share: USD20,000
• Return per share on successful completion of the salvage: USD28,000
• Estimated time period to completion: 6-12 months
• Return on investment: 40%
• Equivalent annualised return on investment: 40-80%

The Managing Director of DWR has had extensive ship wreck search and salvage experience, having participated in two major international headline grabbing recovery operations, one in 1986 in the South China Sea, being the recovery of gold and porcelain from the 1746 Dutch ship, the Geldermalsen, and the second in 1993 when he personally located the British ship, Diana, which sank in March 1817 in the Straits of Malacca. She was carrying 24,000 pieces of blue and white Cheng dynasty porcelain from Canton to Madras when she hit an uncharted rock. He coordinated the salvage of 16 tons of porcelain in 1994 and oversaw the successful sale of the porcelain in 1995 by Christies at auction in Amsterdam. Information about the book, 'The Diana Adventure' can be found at the following website:

http://classicdivebooks.customer.netspace.net.au/oeclassics-treasure.html

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