An ounce of NatGold is not physically different from a traditional ounce of gold; both are essentially the same element, gold. The distinction lies in their extraction and storage methods. NatGold leverages a digital mining process that is ESG-friendly, allowing the gold to remain securely in the earth. This process unlocks the monetary value of gold without physical extraction, preserving the environmental, social, and economic landscape.

In contrast, a traditional ounce of gold is physically mined, requiring it to be dug out of the ground and brought to the surface. This conventional method captures the value of gold but often comes with significant environmental, social, and financial costs.

The roles of the Canadian Securities Administrators (CSA) and the Canadian Institute of Mining, Metallurgy, and Petroleum (CIM) in the context of National Instrument 43-101 (NI 43-101) are distinct yet complementary:

1. Canadian Securities Administrators (CSA):

Regulatory Role: The CSA is responsible for regulating securities laws in Canada, including the enforcement of NI 43-101. Its primary function is to ensure compliance with the rules and standards set for the public disclosure of scientific and technical information on mineral projects.

Investor Protection: The CSA aims to protect investors by ensuring that the disclosures about mineral projects are truthful, complete, and comply with the regulations, thus helping investors make informed decisions.

2. Canadian Institute of Mining, Metallurgy, and Petroleum (CIM):

Standards Development: The CIM is instrumental in developing the definitions and standards that are incorporated into NI 43-101. They provide the framework and guidelines used to report on mineral resources and reserves.

Expertise and Guidance: CIM offers guidance based on the expertise of professionals in the mining industry. This includes best practices in documentation and reporting that companies must follow to align with NI 43-101 standards.Essentially, while the CIM provides the technical definitions and standards, the CSA enforces these standards within the legal framework of the Canadian securities market, ensuring that all public disclosures meet these established criteria. This system ensures that both the technical accuracy and regulatory compliance are maintained in the reporting of mineral projects.

The NatGold Integrity Trust, established by the International NatGold Council and incorporated in Delaware, plays a critical role in the NatGold ecosystem. As the pivotal entity overseeing the tokenization of NatGold mining titles into NatGold coins, the Trust also holds custody of these titles, ensuring the integrity and transparency of the process.

The Trust’s operation involves a meticulous approval process for tokenizing NatGold mining titles, managed by three independent trustees appointed by the International NatGold Council. These trustees, experts in securities law and NI 43-101 resource reporting, conduct their roles without direct financial interests in the industry participants, underscoring the Trust’s commitment to unbiased and ethical governance.

Upon approval, the NatGold Integrity Trust deposits the mining titles, corresponding NI 43-101 Technical Reports, and accompanying due diligence materials into the NatGold Digital Vault. Here, the certified gold resources are digitally tokenized into NatGold coins based on standardized ratios set by the International NatGold Council. This ensures that every NatGold coin is backed by verified gold resources, maintaining the system’s integrity and offering a transparent digital asset backed by tangible value.

U.S. Patented Land Claims typically include both surface and subsurface rights, granting the owner full control over the entire property. However, it is possible for these rights to be severed, meaning that the surface rights and subsurface mineral rights can be owned separately. This process involves legally separating the ownership of the surface land from the mineral rights beneath it.

Once severed, the subsurface mineral rights can be sold, leased, or retained independently of the surface rights. This allows different parties to own and manage these distinct interests separately. Severing rights is a legal process that must comply with state and federal laws, and it often involves formal agreements and registrations to clearly define the split in ownership.

Severing the subsurface rights from the surface rights can be particularly advantageous for several reasons. For one, it allows the owner to retain the valuable subsurface mineral rights while potentially selling or leasing the surface land. More importantly, from a financial perspective, separating these rights can significantly impact the financial obligations associated with the property. In the context of U.S. Patented Land Claims, the only financial obligation typically tied to unified ownership is property taxes, which, though often minimal, still represent a recurring cost.

For tokenization purposes in the NatGold ecosystem, where no ongoing fees are acceptable to avoid devaluation of the NatGold coins from their 100% certified gold resource backing, it is imperative for owners to sever the subsurface rights containing the certified gold resources. By doing so, they effectively separate these rights from the surface rights, thus severing the title from any ongoing property taxes. This separation ensures that the subsurface rights, now free from the burden of property taxes, remain a pure asset backed solely by the certified resources they contain, ideal for use within the NatGold framework.

The NatGold Public Accountability Vault, operated by OroEx Corp., is an innovative transparency initiative within the NatGold ecosystem. Designed as a fully visible and inspectable online resource, this public vault houses all key due diligence documents supporting the NatGold tokenization process. It serves as a cornerstone for accountability and public trust in the NatGold coin system. The vault includes digital copies of critical documents such as the mining title registered in the name of the NatGold Integrity Trust, NI 43-101 Technical Reports, and other important due diligence materials. These documents are made publicly available to ensure that any interested parties can inspect and verify the accuracy and authenticity of the information provided during the tokenization process.

Key features of the Public Vault include real-time data on the total number of NatGold coins minted, distribution statistics, and the verification that all minted coins are 100% backed by NI 43-101 certified gold resources. Utilizing the NatGold Bilateral Bridge between the NatGold Digital Vault and the NatGold Multichain, the vault updates an ecosystem audit every 24 hours. This audit verifies that the total amounts of NatGold coins in circulation on the NatGold MultiChain are equivalent to the amount historically distributed from the NatGold Digital Vault, enhancing security and trust in the system.

The primary goal of the NatGold Public Accountability Vault is to foster unparalleled transparency and trust across all aspects of the tokenization and distribution processes. By providing open access to critical documentation and real-time data, the system ensures that stakeholders can continually verify the integrity and backing of the NatGold coins. This open vault allows for ongoing public oversight, inviting users, investors, and regulators to engage directly with the operational and financial details of the NatGold ecosystem. It empowers them to conduct independent verifications, promoting an inclusive and transparent digital asset environment.