CNSX:SQC

Opportuni)es


in
Real
Property

Stoneset
Equity
Development
Corp.

 CNSX:SQC

Real
Estate
Investment

There
are
4
basic
divisions
of
real
estate
ownership:
Private
equity,

Public
Equity,
Private
debt
and
Public
Debt


Real
estate
investments
can
increase
porColio
diversificaEon
and

hedge
inflaEon


Some
real
estate
investments
mimic
the
structure,
income
and
risks

provided
by
fixed‐income
securiEes
while
others
resemble
equiEes


Real
Estate
provides
an
important
component
in
PorColio

ConstrucEon


Real
estate
investments
can
also
act
as
an
appropriate
bridge
from
a

greater
reliance
on
equiEes
to
a
larger
exposure
to
fixed
income
as

one
ages
or
considers
reErement


Page  2
 CNSX:SQC

Company
Profile

  Stoneset
Equity
Development
Corp.
is
a
leading
edge
real
estate
investment

company
and
property
developer.

We
specialize
in
recreaEonal,
residenEal
and

commercial
properEes
located
in
high
demand
locaEons
in
Western
Canada.


  Stoneset
is
listed
on
the
CANADIAN
NATIONAL
STOCK
EXCHANGE
(CNSX:SQC)


  With
a
significant
background
in
sustainable
architecture
and
design,
we
focus
on

environmentally
low
impact
projects.

What
differenEates
from
other
development

companies
is
that
we
take
properEes
beyond
low‐energy
consumpEon
to
an
Eco‐
Plus
standard
where
individual
buildings
generate
more
energy
then
they
use;

contribuEng
excess
energy
back
to
the
local
uElity
grid.



Page  3
 CNSX:SQC

Principal
Management

Tony
Argento,
B.A.,
B.E.D.S.,
M.Arch
‐
C.E.O.
–
Director

•  31
years
of
commercial
real
estate
experience
with
a
strong
background
in

urban
planning
and
architecture.

•  Has
overseen
over
$47
million
in
commercial
real
estate
development

•  InternaEonal
experience
includes
product
research
and
development,

building
design,
product
detailing,
construcEon
management,
project

scheduling
and
subdivision
planning

•  worked
on
numerous
environmentally‐
responsible
projects
including
the

design
and
construcEon
of
the
award‐winning
Alberta
EcoHome

•  Resume
includes:


  President
of
Walton
Development
(Asia)
Ltd
‐
1988‐1995

‐
opened
Asian
inv.
office

  Land
Development
–
1995‐2003
(CEO)

  Chief
OperaEng

Officer
of
Crown
ProperEes
InternaEonal
––
2003‐2006

  Helped
to
form
Stoneset
in
2006
and
conEnues
to
manage
acEviEes


Page  4
 CNSX:SQC

Principal
Management

Peter
Jarman,

B.Sc.
‐
President
&
Director

•  Over
9
years
of
experience
in
the
real
estate
investment
business

•  Experienced
in
private
debt
and
equity,
property
acquisiEon,

mortgage
investment
management
and
corporate
development

•  Raised
over
$40M
for
real
estate
development

•  Developed
Canada‐wide
investment
distribuEon
network

•  AcEve
speaker
at
road
shows
and
conferences

Stephen
Yuen
‐
C.F.O.

•  Bachelor
of
Business
degree
(1976)

•  Admiied
to
the
InsEtute
of
Chartered
General
Accountants
of

Alberta
in
1985

•  Over
20
years
of
accounEng
and
financial
management
experience
in

oil
and
gas,
manufacturing,
merchant
banking
and
real
estate


Page  5
 CNSX:SQC

Team
Accomplishments

•  Stoneset
Team
has
over
350
man
years
of
experience
in
real

estate
development

•  Over
$23M
capital
raised
on
3
properEes
in
2
years

•  Total
of
7
Private
Exempt
Market
Offerings
successfully
completed

•  Took
company
public
on
the
CNSX
March
31st,
2010

•  Have
increased
the
property
porColio
to
a
total
of
7
properEes
–

4
in
Alberta,
and
3
in
BriEsh
Columbia
in
the
last
year

•  Successful
CompleEon
of
design,
architecture
and
development

permit
process
for
Vista
Del
Lago,
in
Invermere,
B.C.


Page  6
 CNSX:SQC

What
We
See

  3.7
million
Canadians
are
approaching
re)rement
–expected
to
double
to
7
million

Canadians
within
20
years

•  Luxury
condominiums,
golf
and
adult
communiEes,
secondary
residences
and

smaller
homes
in
beier
areas
are
airacEng
this
age
group

•  Aging
baby
boomers
are
moving
into
communiEes
near
city
centers
and

recreaEonal
acEviEes

•  Mortgage
rates
are
expected
remain
low
in
a
historic
context

•  InternaEonal
buyers
view
the
Canadian
real
estate
market
as
a
safe
investment

•  Employment
is
expected
to
improve
with
the
economy
in
2010
and
2011


•  ImmigraEon
is
expected
to
rise
over
the
next
two
years
due
to
an
improving

economic
and
employment
environment.



Page  7
 CNSX:SQC

The
Stoneset
Difference

With
current
market
condiEons
we
are
prepared
grow
and
provide
shareholder

value.

 Stoneset
is
a
real
estate
investment
company
that
provides
shareholders
access
to

large
scale
development
projects
combined
with
management
income
streams

 The
company
is
currently
a
Canadian
publicly
listed
company
on
the
CNSX


 Stoneset
offers
investors
access
to
real
property
with
professional,
experienced

management

 A
focus
on
environmentally
low
impact
projects
creates
a
unique
opportunity
for

both

investors
and
communiEes

 Revenues
are
generated
from
both
development
and
commercial
property

management
and
encompass
income
from:

1.
Planning
and
design

2.
Project
management

3.
Rental
and
lease
revenues

4.
Profit
from
construcEon
and
sale
of
projects

5.
Brokerage
and
consulEng
revenues


Page  8
 CNSX:SQC

Core
Managed
Services

With
many
years
of
combined

experience
in
real
estate
investment

we
provide
:


•  Property
&
Project
EvaluaEon

•  Planning
&
Design

•  Eco‐Development
&
ConsulEng

•  Management
&
Investor
RelaEons

•  Appraisal‐based
Models


Page  9
 CNSX:SQC

Green
at
a
Glance

Building
with
design
principles
in
mind:
Sustainable
Architecture,
Low‐energy

ConsumpEon
and
Use
of
AlternaEve
Energy
Sources.


This
“Eco
Plus”
Focus
captures:
 The
Benefits
of
this
focus
include:


• Sustainable
architecture
 •  Future
cost
savings
on
uEliEes

• Renewable
energy
sources

 •  Contribute
excess
energy
to
uElity
grid

• Resource
and
water
conservaEon
 •  Increase
the
value
of
the
property

• Micro
uElity
systems

 •  Enhance
the
marketability

• Sustainable
building
technology

 •  Leading
edge
over
the
compeEEon

• Scalable
–
from
single
family
home
to

retro‐fit
of
Calgary’s
42‐story
Canterra

Tower


Page  10
 CNSX:SQC

Where It Started Alberta Sustainable House

•  Off the Grid

•  Built 1990 -1994
•  Continuously occupied .
•  $143 in net utility cost in
2009
•  Over 150,000 visitors to
date
•  Low-E windows
•  Non-conducting wall
system
•  Passive solar heating
•  Waterless toilets
•  Grey water management Educating Children @ The Sustainable House

Page  11
 CNSX:SQC

Diverse
Capital
Sources

Development
Financing:
 Exempt
Market:

ConvenEonal
Lenders
 Direct
equity
parEcipaEon

in
real
estate
projects

Direct
parEcipaEon
in
funding

mortgages
 Capital
Gains


Private
Lenders:

Common
Shares:

Focus
on
development

Direct
equity
parEcipaEon

Short‐term
 in
real
estate
companies

Capital
Gains


YOUR LOGO
Page  12
 CNSX:SQC

Understanding
Development


Page  13
 CNSX:SQC

Investment
Highlights

 We
are
an
investment
company
focused
on
Real
Estate

 We
provide
investors
access
to
real,
large
scale
development

properEes
and
commercial
lease
revenue

 We
have
diversified
revenue
streams
through
all
phases
of

development

 MulEple
capital
sources
are
available
to
reduce
shareholder

diluEon

 Environmental
experience
and
focus
is
leading
edge


 AcEve
experienced
Management
team


Page  14
 CNSX:SQC

Feature
Development

Downtown



Invermere,
B.C.

12.34
acres,

Undeveloped

Waterfront


Page  15
 CNSX:SQC

Year‐Round
RecreaEonal
DesEnaEon

•  Golf

•  Skiing

•  Water‐sports

•  Waterfront
Parks

•  Restaurants

•  Hospital

•  Resorts

•  Rocky
Mountain

InternaEonal
Airport


1. Journal of Real Estate Portfolio Management, Vol. 9, No. 3, 2003, pp. 193-203.
Page  16
 CNSX:SQC

Vista
Del
Lago


  
 
 
 

•  45,000
s.f.
Commercial
Space

•  Land
Zoning
and
Phasing
Approved

•  10
Phases
over
7
years

•  Development
Permits
Achieved
for
First
3
Phases


Page  17
 CNSX:SQC

Vista
Del
Lago


Sustainable
Architecture


• Energy
Efficient
Building
Envelopes
&
Wall
Systems

• Low‐E
Glass

• Micro‐UElity
CogeneraEon
Facility


• Grey
Water
Management

• Storm
Water
Treatment


Page  18
 CNSX:SQC

Development
Plan

•  Phasing
allows
conservaEve

development
plan:
10
phases

over
7
years

•  Recent
MLS
lisEng
info:
current

prices
down
only
7%

•  Strong
fundamentals
in
Columbia

Valley

•  Costs
of
labour
and
materials

have
dropped
25%,


•  Building
into
a
rising
market


Page  19
 CNSX:SQC

Project
AssumpEons

Project
AssumpEons
Include:


•  Vista
Del
Lago
building
cost
$180

per
square
foot
Planning
&
Design

•  Current
average
residenEal
unit

selling
at
$400
per
square

Management
&
Investor
RelaEons

•  Project
Management
Fees

•  Total
profit
over
10
phases

•  Retain
commercial
space
for
lease

revenue


Page  20
 CNSX:SQC

Stoneset Equity development corp.

Portfolio

Calgary, AB.

Invermere, B.C.

Page

21

Sechelt, B.C.
 CNSX:SQC

Vista
Del
Lago
–
Invermere
BC


Page

22

 CNSX:SQC

VISTA
DEL
LAGO

Invermere
B.C.

PROJECT
VALUATION

Loca)on
 Invermere
B.C.

Distance
 Approx.
2
1/2
Hours
from
Calgary

Size
 12.3
Acres

Purchase
Price
 $23,000,000


Appraised
Value
 $25,000,000
(At
Purchase)
 Building
 EsEmated
 EsEmated

sq.v.
 Cost
 Market
Value
 Gross
Total

Zoning
 Bylaw
No.
1274,
2005

(Approved)
 144
Room
Hotel
 75,350
sq.v.
 $28,800,000
 $36,665,000
 $7,865,000

Commercial
 50,260
sq.v.
 $19,208,000
 $24,463,000
 $5,255,000

570
Condominiums
 555,610
sq.v.
 $212,350,000
 $289,855,000
 $57,505,000


10
Phases
‐
EsEmated
Profit
 $70,625,000


Current
Debt
 $5,500,000


Current
Equity
 $19,500,000


Start
Development
of
Phase
2
&
3

Phase
One/Two/Three
 86
Condominiums
&
11,000
sq.v.

(Development
permits)
 commercial
 September
2010


Phase
Comple)on
 Commercial
/
ResidenEal
 September
2010
‐
Complete
December
2017


This
page
contains
forward‐looking
statements
that


Page  23 could
differ
with
future
actual
results.

 CNSX:SQC

Symons
Valley
Ranch
Calgary


Page

24

 CNSX:SQC

SYMONS
VALLEY
RANCH

Calgary,
AB.

PROJECT
VALUATION


Loca)on
 144
Ave.
&
Symons
Valley
Rd.
N.W.

Distance
 Approx.
1/2
Hour
to
City
Centre

Size
 30
Acres

Purchase
Price
 $11,072,000


Appraised
Value
 $11,640,000
(Distressed
See
Note
Below)
 Building
 EsEmated
 EsEmated

sq.v.
 Cost
 Market
Value
 Gross
Total

Zoning
 Commercial

EsEmated

Proposed
 Commercial
 300,000
sq.v.
 $60,000,000
 $86,000,000
 $26,000,000

1,000,000

Development
 1000
Condominiums
 sq.v.
 $250,000,000
 $350,000,000
 $100,000,000

10
Phases
‐
EsEmated
Profit
 $126,000,000


Stage
One
 Design
Development
–
June
2011

Development
Permit
 March.
2012


Phase
Comple)on
 Commercial
/
ResidenEal
 September
2012
‐
Complete
December
2017


Current
Debt
 $6,300,000

Current
Equity
 $5,340,000


Annual
Income
 $780,000


NOTE:

Feb.
2008
Appraisal
 $20,680,000

This
page
contains
forward‐looking
statements
that


Page  25 could
differ
with
future
actual
results.

 CNSX:SQC

Eco
Development


Project
Calgary


Page

26

 CNSX:SQC

ECO
‐
DEVELOPMENT

Calgary,
AB.

PROJECT
VALUATION


Loca)on
 27
AVE.
&
19
ST.
N.W.

Distance
 15
Minutes
from
City
Centre

Size
 .@0.96
Acre

Purchase
Price
 $1,500,000

(3
Lots)

Es)mated
Value
 $1,500,000
(Pre
‐
Development
Permits)
 Building
 EsEmated

sq.v.
 Cost
 Market
Value
 Gross
Total

Zoning
 R‐2
&
Commercial
‐
Church

Re‐Zoning
 RM‐4
+
Commercial
Church
&
Daycare

33780
sq.v.

24
Market
Condominiums
 $8,750,000
 $15,750,000
 $7,000,000

15735
sq.v.

18
Seniors
Condos
(Affordable)
 $4,150,000
 $5,000,000
 $850,000

5150
sq.v.

Day
Care
Facility
 $1,500,000
 $1,650,000
 $150,000

7430
sq.v.

Church
‐
300
Seats
 $2,600,000
 $2,600,000
 $0

$8,000,000


Development
Permits
 June
2011


Construc)on
Start
 September
2011


Current
Debt
 $1,000,000

Current
Equity
 $500,000


This
page
contains
forward‐looking
statements
that


Page  27 could
differ
with
future
actual
results.

 CNSX:SQC

Stoneset
Office
‐
Calgary


Page

28

 CNSX:SQC

CORPORATE
HEADQUARTERS

Calgary,
AB.

PROJECT
VALUATION


Loca)on
 3915
‐
8
St.
S.E.

Distance
 5
Minutes
from
City
Centre

Size
 .@0.8
Acre

Purchase
Price
 $1,910,000


Appraised
Value
 $5,700,000
(Pre
‐
Development
Permits)
 Building
 Appraised

sq.v.
 Purchase
 Market
Value

Zoning
 I‐G

Light
Industrial
/
Commercial
 7,800
sq.v.
 $1,910,000
 $2,650,000


sq.v.
 Cost
 Market
Value


ADDITION

Development
Permit
 Second
Floor
+
Main
Level
Warehouse
 12,050
sq.v.
 $1,800,000
 $3,460,000

ExisEng
 7,800
sq.v.
 $1,910,000
 $2,240,000

$5,700,000

Construc)on
Start
 October
2010

Comple)on
 October
2011


Current
Debt
 $1,300,000


Equity
aeer
Addi)on
 $2,700,000


Annual
Income
 $340,000

(Aver
AddiEon)

This
page
contains
forward‐looking
statements
that

Page  29
could
differ
with
future
actual
results.

 CNSX:SQC

The
Falls
–
Chilliwack
BC


Page  30
 CNSX:SQC

The
Falls
–
Chilliwack
BC


Condominium Hotel on Golf Course

Page  31
 CNSX:SQC

THE
FALLS

Chilliwack,
B.C..

PROJECT
VALUATION


Loca)on
 The
Falls
Golf
&
Country
Club
–
Chilliwack
BC


Size
 8
Acres

Purchase
Price
 $7,100,000


Appraised
Value
 $9,800,000
 Building
 EsEmated
 EsEmated

Sq.v.
 Cost
 Market
Value
 Gross
Total

Zoning
 ResidenEal
–
Approved
Zoning
&
Permits

110
Condominium
‐
HOTEL
 132,000
sq.v.
 $27,500,000
 $52,500,000
 $25,000,000


50
Townhomes
 60,600
sq.v.
 $12,500,000
 $24,950,000
 $12,450,000


$37,450,000


Construc)on
Start
 April.
2011

Comple)on
 December.
2014


Current
Debt
 $5,610,000

0%
VTB
Mortgage

To
be
Paid
Out
by
March
31,
2012


Equity
 $4,190,000


This
page
contains
forward‐looking
statements
that


Page  32 could
differ
with
future
actual
results.

 CNSX:SQC

Possession
Point
–
Sooke
BC

(Silverspray)


Page

33

 CNSX:SQC

Possession
Point
–
Sooke
BC

(Silverspray)


Eco-Lodge Hotel

Page

34

 CNSX:SQC

POSSESSION
POINT
(Silverspray)

Sooke,
B.C..

PROJECT
VALUATION


Loca)on
 Possession
Point
Resort
Lands
–
Sooke
BC


Size
 14.6
Acres

Purchase
Price
 $9,900,000


Appraised
Value
 $15,150,000
 Building
 EsEmated
 EsEmated

Sq.v.
 Cost
 Market
Value
 Gross
Total

Coiages
&
Eco‐Lodge

Zoning
 Approved
Zoning
&
Permits

39
Duplex
Coiages
 195,000
sq.v.
 $48,750,000
 $92,750,000
 $44,000,000


200
Room
Eco‐lodge
HOTEL
 80,000
sq.v.
 $28,000,000
 $40,000,000
 $12,000,000


$56,000,000


Construc)on
Start
 June
2011

Comple)on
 December
2015


Current
Debt
 $7,650,000

0%
VTB
Mortgage

To
be
Paid
Out
by
March
31,
2012


Equity
 $7,500,000


This
page
contains
forward‐looking
statements
that


Page  35 could
differ
with
future
actual
results.

 CNSX:SQC

Green
Tech
Centre
‐
Calgary


Page

36

 CNSX:SQC

GREEN
TECH
CENTRE

Calgary,
AB.

PROJECT
VALUATION


Location 17 AVE. & 60 ST. S.E. (International Ave.)

Distance 15 Minutes from City Centre
Size 4.1 Acres
Purchase Price $3,000,000
Appraised Value $4,000,000 (Pre - Development Permits)

Zoning Industrial
Re-Zoning I-G - Light Industrial / Commercial Building Estimated
(Approved) Sq.ft. Cost Market Value Gross Total

Proposed Business & Technology Centre 72,000 sq.ft. $18,530,000 $23,700,000 $5,170,000
Commercial 13,500 sq.ft. $3,470,000 $5,300,000 $1,830,000

$7,000,000
Development Permits June 2011

Type of Project Project is intended to accommodate an "incubator" style business & technology centre.

Lease or Sale Units & Space can be sold or Leased at a rate of $30 per sq.ft.

Current Debt $2,975,000

Current Equity $1,025,000

Development Timeline June 2011-December 2014

This
page
contains
forward‐looking
statements
that


Page  37 could
differ
with
future
actual
results.

 CNSX:SQC

Silverback‐
Sechelt
BC


Page

38

 CNSX:SQC

Silverback‐
Sechelt
BC


Page

39

 CNSX:SQC

PENDING
‐
SILVERBACK

SECHELT,
B.C.

PROJECT
VALUATION
SUMMARY

Loca)on
 SECHELT
B.C.

Distance
 Approx.
45
Min.
from
Vancouver
by
Ferry

Size
 400
Acres

Purchase
Price
 $70,000,000


Appraised
Value
 $71,234,000
(Pre
‐
Development
Permits)
 EsEmated
 EsEmated

Cost
 Market
Value
 Gross
Total

Zoning
 Bylaw
No.
435‐7,
2006

(Approved)
 18
Hole,
66Ha
Golf
Course
(Fred
Couples)

Commercial
(3,000
sq.m.)

1123
Condominiums

477
Single
Family
Villas

120
Room
Hotel

300
Person
Conference
Centre

2.5
Ha
site
for
Affordable
Housing

23
Ha
Park
&
Public
Trails
 $566,000,000
 $812,000,000
 $244,000,000


Current
Debt
 $35,595,000


Current
Equity
 $35,639,000


Phase
One/Two
 Infrastructure
/
Golf
Course
 2012


Phase
Three
to
 ConstrucEon
of
Hotel,
Commercial,

Phase
Seven
 Condominiums
&
Villa
Lots
 2013
‐
2020


This
page
contains
forward‐looking
statements
that


Page  40 could
differ
with
future
actual
results.

 CNSX:SQC

Lumiere
‐
Calgary


Page

41

 CNSX:SQC

PENDING
‐
LUMIERE
CONDOMINIUMS

Calgary,
AB.

PROJECT
VALUATION
SUMMARY


Loca)on
 327
–
20
Ave.
S.W.

Distance
 3
Minutes
from
City
Centre

Size
 0.709
Acre

Purchase
Price
 $8,364,000

Es)mated
Value
 $8,364,000
(Pre
‐
Development
Permits)
 Building
 EsEmated

Sq.v.
 Cost
 Market
Value
 Gross
Total

Zoning
 DC/RM6
Mission

Project
 Seniors
Condo
Development

108
Condominiums
 94,340
 $16,570,000
 $25,625,000
 $7,775,000

Parking
 25,565
 $1,280,000
 (above)
 (above)

$7,775,000


Development
Permits
 June
2011


Construc)on
Start
 Summer.
2011


Construc)on
Comple)on
December
2013

Current
Debt
 $8,364,000

Current
Equity
 $0


This
page
contains
forward‐looking
statements
that


Page  42 could
differ
with
future
actual
results.

 CNSX:SQC

SUMMARY

Appraisal
 Purchase
 Debt
 Equity
 Cost
 Value
 Gross
Profit

RECREATIONAL

VISTA
DEL
LAGO
‐
Invermere
B.C.
 $25,000,000
 $23,000,000
 $5,500,000
 $19,500,000
 $260,358,000
 $330,983,000
 $70,625,000


POSSESSION
POINT
‐
Sooke
B.C.
 $15,150,000
 $9,900,000
 $7,650,000
 $7,500,000
 $76,750,000
 $132,750,000
 $56,000,000


THE
FALLS
‐
Chilliwack
B.C.
 $9,800,000
 $7,100,000
 $5,610,000
 $4,190,000
 $40,000,000
 $77,450,000
 $37,450,000


PENDING‐SILVERBACK
‐
Sechelt
B.C.
 $71,234,000
 $70,000,000
 $35,595,000
 $35,639,000
 $566,000,000
 $812,000,000
 $244,000,000


COMMERCIAL

CORPORATE
OFFICE
‐
Calgary
AB.
 $5,700,000
 $1,910,000
 $3,000,000
 $2,700,000
 $3,000,000
 $5,700,000
 $2,700,000


GREEN‐TECH
CENTRE
‐
Calgary
AB.
 $4,000,000
 $3,000,000
 $2,975,000
 $1,025,000
 $22,000,000
 $29,000,000
 $7,000,000


COMMERCIAL/RESIDENTIAL

SYMONS
VALLEY
RANCH
‐
Calgary
AB.
 $11,640,000
 $11,072,000
 $6,300,000
 $5,340,000
 $310,000,000
 $436,000,000
 $126,000,000


RESIDENTIAL

ECO‐DEVELOPMENT
‐
Calgary
AB.
 $1,500,000
 $1,500,000
 $1,000,000
 $500,000
 $17,000,000
 $25,000,000
 $8,000,000


PENDING‐LUMIERE
‐
Calgary
AB.
 $8,364,000
 $8,364,000
 $8,364,000
 $0
 $17,850,000
 $25,625,000
 $7,775,000


TOTAL
 $152,388,000
 $135,846,000
 $75,994,000
 $76,394,000
 $1,314,958,000
 $1,874,508,000
 $559,550,000


This
page
contains
forward‐looking
statements
that

Page  43 
could
differ
with
future
actual
results.