Information

Memorandum

www.openwaters.biz
www.rsoperations.com
Information Memorandum
Restrictions on the Distribution of this Memorandum:

Laws may restrict the distribution of this Memorandum;

Consequently this Memorandum is not intended to and does not constitute an offer of securities in any jurisdiction in
which, or to any person to whom, the making of such an offer would not be lawful under the laws of that jurisdiction. Each
Recipient accepts and receives this Memorandum on the strict understanding that he or she is a person whose principal
business is the investment of money and qualifies as a sophisticated investor within the meaning of Chapter 6D of the
Corporations Act.

Sophisticated Investor:

The person to whom this Information Memorandum is issued, as named below, believes and represents that he/she is a
“Sophisticated Investor” as defined in chapter 6D of the Corporations Act, and undertakes to supply the necessary proof
and status as required by the Act, prior to making any investment.

Disclaimer:

The statements made in this Memorandum are believed to be wholly true and correct at the time of publication and are
based on research carried out by Open Waters Trading Limited and RS Operations. Recovered Cargos Ltd has made
every effort to verify and validate every aspect of these salvage projects and Open Waters Trading Limited and RS
Operations have committed personal funds and a very significant amount of unpaid time in their belief in the validity of
research into the salvage projects. However, it is not possible to guarantee the success of the project, so all investors
must regard the venture as one which carries financial risk and one which is essentially of a speculative nature. Further,
neither Recovered Cargos Ltd itself nor any manager or any employees or associates of any of them (each a "Provider")
make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the information
contained in this Memorandum, or subsequently provided to the Recipient by any of the Providers including, without
limitation, any historical financial information, the estimates and projections and any other financial information derived
therefrom, and nothing contained in this Memorandum is, or will be relied upon as, a promise or representation, whether
as to the past or the future.

Errors or Omissions:

Except insofar as liability under any law cannot be excluded, the Providers shall have no responsibility arising in respect
of the information contained in this Memorandum or in any way for errors or omissions (including responsibility to any
person by reason of negligence).

Not Part of Contract and No Recommendation:

This Memorandum including any update or supplement to this document does not and will not form part of any contract of
sale that may result from the review, investigation and analysis of Recovered Cargos Ltd by the Recipient and their
respective advisors. The information in this Memorandum is provided to the Recipient as a matter of interest only. It does
not amount to a recommendation, either expressly or by implication, with respect to the business of Recovered Cargos
Ltd.

Confidentiality:

The Recipient expressly agrees to keep the contents of this Memorandum confidential to the Recipient and the Recipient
will not disclose either its contents or its existence to any third party, other than his/her Accountant and/or Legal Advisor.

Date of Issue:

This Memorandum has been issued on: August, 2007

This Memorandum has been issued to:

NAME of RECIPIENT
2
Table of Contents

Introduction......................................................................................................................6
Historical Background......................................................................................................7
A Typical Salvage Project................................................................................................9
Personnel OWTL ...........................................................................................................10
Personnel RSOPS.........................................................................................................11
Robert F. Marx...............................................................................................................12
Statement of the Company ............................................................................................14
Solicitor’s Statement......................................................................................................16
Accountant’s Statement.................................................................................................17
History of the Spanish Treasure Fleet ...........................................................................18
Projects .........................................................................................................................20
Shipwrecks in Ecuadorian Waters .................................................................................22
The South Sea Expeditions ...................................................................................24
Clarius ...................................................................................................................26
Banks of Sardinas .................................................................................................28
St Nicholas – Atacames Shallows .........................................................................29
Galera....................................................................................................................30
Cabo San Francisco ..............................................................................................31
Capitana ................................................................................................................32
1722 Galleon .........................................................................................................34
The Hack Atlas ..............................................................................................................35
Examples of Previous Returns ......................................................................................38
Treasure ........................................................................................................................39
Archaeological Survey...................................................................................................44
Research Vessel ...........................................................................................................45
Anticipated Financial Return..........................................................................................46
RS Operations, LLC Statement .....................................................................................47
Recovered Cargos Ltd – Basis of the Offer ...................................................................49
Highlights.......................................................................................................................50
Summary .......................................................................................................................51
Recovered Cargos Declaration of Trust ........................................................................52
Frequently Asked Questions..........................................................................................62
Making of the Offer ........................................................................................................65
Application Information ..................................................................................................66
Application to Subscribe ................................................................................................67
Recommended Reading................................................................................................68
Notes .............................................................................................................................69

3
Glossary
GlossaryofofTerms
Terms

In this Information Memorandum the following expressions have the following meanings:

Glossary of Terms ......................................................................................................

Introduction.................................................................................................................
Company
Directorymeans Recovered Cargos Ltd, a company incorporated in Malta.
.....................................................................................................................
Historical Background.................................................................................................
Declaration
A Typicalof Trust means
Salvage the document described in this Information Memorandum under the
Project...........................................................................................
Statement
heading of Trustee
"Recovered Cargos ..................................................................................................
Declaration of Trust".
Objective ....................................................................................................................
The Nature
ESSCAR means OfEstudios
The Opportunity
Cientificos..................................................................................
Del Mar, SA. This is a registered Ecuadorian corporation
Investment
which is owned Plan..........................................................................................................
by RSOPS.
Conclusion..................................................................................................................
Projects
INCIAR ......................................................................................................................
means Investigaciones Cientificos Del Mar, SA. This is a registered Ecuadorian
corporation which isEcuadorian
Shipwrecks in owned by RSOPS. Waters ..............................................................................
Spanish Galleon Clarius .............................................................................................
Many Other
Dividend Ships Of
Entitlement meansValue........................................................................................
an entitlement to share in the dividends that the Company receives
Isla
from OWTLDe Laas Plata
a result..........................................................................................................
of profit from the Projects. This arises pursuant to the Declaration of Trust.
Atacames Shallows ....................................................................................................
Galera.........................................................................................................................
Investor means an investor who accepts the offer to invest contained in this Information
Port Of Manta .............................................................................................................
Memorandum.
Rock Of Colanche ......................................................................................................
Marine
PuntaSalvage Funding Agreement means the Marine Salvage Agreement entered into
Santa Elena......................................................................................................
between
Ancient OWTL and RSOPS
Navigation Maps in And
relation
thetoHack
The Projects.
Atlas ............................................................
Shipwrecks in the Philippines .....................................................................................
OWTL means Open Waters Trading Limited, a company incorporated in Malta.
Partners......................................................................................................................
Preliminary Survey Report..........................................................................................
RSOPS means
Treasure RS Operations LLC.
.....................................................................................................................
Examples of Previous Returns ...................................................................................
Project Partners
Anticipated means ESSCAR
Financial and INCIAR
Return.......................................................................................
Highlights....................................................................................................................
Projects
Recoveredmeans the salvage
Cargos Unit Trustprojects in Ecuador which are the subject of the Marine Salvage
.....................................................................................
Funding
SummaryAgreement.
....................................................................................................................
Archaeological Survey................................................................................................
Salvors means
Frequently the companies
Asked Questionsresponsible under the Marine Salvage Funding Agreement for
......................................................................................
Application
carrying out the Information
salvage as part ...............................................................................................
of the Projects. These are RSOPS and the Project Partners.
Application to Subscribe for Units...............................................................................
Wrecks means the historic shipwrecks which will be salvaged under the Marine Salvage Funding
Agreement.

4
Directory Directory
• Open Waters Limited • Open Waters Limited
60/2 Melita Street, Valletta VLT12, 60/2 Melita Street, Valletta VLT12,
MALTA MALTA
Telephone: (+356) 2205 6885 Telephone: (+356) 2205 6885
Facsimile: (+356) 2205 6886 Facsimile: (+356) 2205 6886
Email: info@openwaters.biz Email: info@openwaters.biz
Web: www.openwaters.biz Web: www.openwaters.biz

• Recovered Cargos Limited • Recovered Cargos Limited

60/2 Melita Street, Valletta VLT12, 60/2 Melita Street, Valletta VLT12,
MALTA MALTA
Telephone: (+356) 2205 6885 Telephone: (+356) 2205 6885
Facsimile: (+356) 2205 6886 Facsimile: (+356) 2205 6886
Email: info@recoveredcargos.biz Email: info@recoveredcargos.biz

• Lawyers • Lawyers
Bennett & Philp Bennett & Philp
15 Adelaide Street, Brisbane QLD 4000 15 Adelaide Street, Brisbane QLD 4000
AUSTRALIA AUSTRALIA
Telephone: (+61) 7 3001 2999 Telephone: (+61) 7 3001 2999
Facsimile: (+61) 7 3001 2989 Facsimile: (+61) 7 3001 2989
Email: mbigg@bennettphilp.com.au Email: mbigg@bennettphilp.com.au
Web: www.bennettphilp.com.au Web: www.bennettphilp.com.au

• Accountants • Accountants
Quest Investment Services Ltd Quest Investment Services Ltd
64B Regent House, Bisazza Street, 64B Regent House, Bisazza Street,
Silema SLM 16412 Silema SLM 16412
MALTA MALTA
Telephone: (+356) 2134 3500 Telephone: (+356) 2134 3500
Facsimile: (+356) 2131 3733 Facsimile: (+356) 2131 3733
Web: www.questinvestments.eu Web: www.questinvestments.eu

• Auditor • Auditor
Chris Baldacchino (CPAA) Chris Baldacchino (CPAA)
2 Merill Court, Fuxa Street, 2 Merill Court, Fuxa Street,
San Gwann.SGN04, San Gwann.SGN04,
MALTA MALTA
Telephone: (+356) 2138 3481 Telephone: (+356) 2138 3481
Facsimile: (+356) 2138 3482 Facsimile: (+356) 2138 3482
Email: christopher.baldacchino@pentasia.com Email: christopher.baldacchino@pentasia.com

• Bankers • Bankers
Bennett & Philp Solicitors Trust Account Bennett & Philp Solicitors Trust Account
Commonwealth Bank Commonwealth Bank
240 Queen Street, Brisbane QLD 4000 240 Queen Street, Brisbane QLD 4000
AUSTRALIA AUSTRALIA

5 5
Introduction
Recovered Cargos Ltd (“The Company”) is a company established in accordance with Malta Law. The
Company’s registered office is 60/2 Melita Street, Valletta, VLT12, Malta and its registered number is C37427.
The Company is the largest shareholder in Open Waters Trading Ltd (“OWTL”), a company set up in Malta
specifically to be commercially involved in the recovery of historically valuable marine salvage.
OWTL does this through a Marine Salvage Funding Agreement (“the Marine Salvage Funding Agreement”) with
RS Operations LLC (“RSOPS”) and the Project Partners in respect of salvage operations in Ecuador, South
America.
The Marine Salvage Funding Agreement covers permit areas in Ecuador in which there lie a number of target
wrecks (“the Wrecks”) which the Salvors have either confirmed or strongly suspect will yield valuable salvage
(“the Projects”).
Recovered Cargos Limited has the opportunity of further involvement in marine salvage recovery by participating
in a salvage operation in the Philippines. This requires that Recovered Cargos Limited realise a portion of its
interest in Open Waters Trading Limited to pursue this opportunity to assist in the Philippine project.
Whilst the manifests of targeted shipwrecks are generally known and in some instances are valued at billions of
dollars in today's terms, it is difficult to put a value on the net worth of the Company’s interest in the Projects. On
the basis of RSOPS’s research of the targeted shipwrecks and their manifests, the Company conservatively
forecasts an excellent return to Investors even in the event that only a few of the Wrecks are successfully
salvaged.
This is a sophisticated salvage project with expert international advisory groups including Archaeologists,
Historians, and Researchers providing details of the relevant cargo manifests, routes, circumstances of the ship
wrecks and their location. The records have been obtained from archives in Seville, Portugal, Singapore, South
America and every relevant record repository in the world.
Recipients of this Memorandum may invest in the Projects by purchasing a Dividend Entitlement in accordance
with this Memorandum. By doing so an Investor indirectly benefits from the Marine Salvage Funding Agreement
and the skill, experience and expertise that Open Waters Trading Limited and the Project Partners bring to the
Projects.
6 6
Introduction
Recovered Cargos Ltd (“The Company”) is a company established in accordance with Malta Law. The
Company’s registered office is 60/2 Melita Street, Valletta, VLT12, Malta and its registered number is C37427.
The Company is the largest shareholder in Open Waters Trading Ltd (“OWTL”), a company set up in Malta
specifically to be commercially involved in the recovery of historically valuable marine salvage.
OWTL does this through a Marine Salvage Funding Agreement (“the Marine Salvage Funding Agreement”) with
RS Operations LLC (“RSOPS”) and the Project Partners in respect of salvage operations in Ecuador, South
America.
The Marine Salvage Funding Agreement covers permit areas in Ecuador in which there lie a number of target
wrecks (“the Wrecks”) which the Salvors have either confirmed or strongly suspect will yield valuable salvage
(“the Projects”).
Recovered Cargos Limited has the opportunity of further involvement in marine salvage recovery by participating
in a salvage operation in the Philippines. This requires that Recovered Cargos Limited realise a portion of its
interest in Open Waters Trading Limited to pursue this opportunity to assist in the Philippine project.
Whilst the manifests of targeted shipwrecks are generally known and in some instances are valued at billions of
dollars in today's terms, it is difficult to put a value on the net worth of the Company’s interest in the Projects. On
the basis of RSOPS’s research of the targeted shipwrecks and their manifests, the Company conservatively
forecasts an excellent return to Investors even in the event that only a few of the Wrecks are successfully
salvaged.
This is a sophisticated salvage project with expert international advisory groups including Archaeologists,
Historians, and Researchers providing details of the relevant cargo manifests, routes, circumstances of the ship
wrecks and their location. The records have been obtained from archives in Seville, Portugal, Singapore, South
America and every relevant record repository in the world.
Recipients of this Memorandum may invest in the Projects by purchasing a Dividend Entitlement in accordance
with this Memorandum. By doing so an Investor indirectly benefits from the Marine Salvage Funding Agreement
and the skill, experience and expertise that Open Waters Trading Limited and the Project Partners bring to the
Projects.
Historical Background
Scattered throughout the world lie many thousands of shipwrecks, some long since buried by moving sands
and some like the Titanic peacefully intact miles beneath the ocean surface. Others have long ago
completely disappeared through both natural and man-induced processes.
Since ships have started sinking, man has tried to recover them, or more particularly their cargo,
attachments and personal effects. The mystery and fantasy of these “treasures” increases with the passing
of time and over the last few centuries there have been many books written on “treasure hunters” retrieving
vast fortunes of gold, silver, coins and the like. There are probably just as many, if not more, stories of
shipwreck recoveries that will remain untold forever.
The study of human history provides an understanding and appreciation of the events and factors that have
brought about the present state of our world. Maritime history is a particularly interesting field of study and
interest as it was the explorers and traders of the European powers of the past few centuries whose
immense accomplishments and clever innovations, as much as any other single group, laid the foundations
of our current global civilisation.
th th
Among these powers, few empires in history rival that of Spain from the 16 to the early 19 century. At its
peak, the Spanish Empire encompassed vast land holdings on five Continents. Most of the world`s silver and
gold up to that time was mined in its colonies in Central and South America. The result was that the Spanish
“piece of eight” became the de facto currency of many countries outside the Spanish Empire.
Over four billion pesos, one peso being a monetary unit equivalent to eleven eighths of an ounce of silver,
reached Spain from the New World. Hundreds of millions more pesos sunk to the bottom of the sea
representing tens of billions of dollars in modern terms. The Portuguese, Dutch, English and other European
powers also became heavily involved in colonial trade and many treasure ships of these nations also sank
over the centuries.
Within a short time of the discovery of the New World by Christopher Columbus the Spanish had built up a
sophisticated network of trade, centered around its possessions in South America.
The trade routes are relevant for the Projects.
SOUTH SEAS ARMADA
Because Spain owned virtually all of the west coast of Central and South America it was necessary for
regular supply ships to move down the west coast transporting personnel and delivering cargo much of
which came from Europe. On the return trip north these ships would collect gold, silver and gemstones from
the mines and refineries dotted along the coast and deliver them to Panama in New Mexico where they were
stored.
The ships that plied this route were known as the South Seas Armada since “South Seas” was the name
given by the Spanish navigators of the Eastern portion of the Pacific Ocean in this area.
Much of the navigation is hazardous and severe storms are common. Over the centuries a great many ships
of the South Seas Armada were lost along the coast of South America travelling in both directions.
7 7
Historical Background
Scattered throughout the world lie many thousands of shipwrecks, some long since buried by moving sands
and some like the Titanic peacefully intact miles beneath the ocean surface. Others have long ago
completely disappeared through both natural and man-induced processes.
Since ships have started sinking, man has tried to recover them, or more particularly their cargo,
attachments and personal effects. The mystery and fantasy of these “treasures” increases with the passing
of time and over the last few centuries there have been many books written on “treasure hunters” retrieving
vast fortunes of gold, silver, coins and the like. There are probably just as many, if not more, stories of
shipwreck recoveries that will remain untold forever.
The study of human history provides an understanding and appreciation of the events and factors that have
brought about the present state of our world. Maritime history is a particularly interesting field of study and
interest as it was the explorers and traders of the European powers of the past few centuries whose
immense accomplishments and clever innovations, as much as any other single group, laid the foundations
of our current global civilisation.
th th
Among these powers, few empires in history rival that of Spain from the 16 to the early 19 century. At its
peak, the Spanish Empire encompassed vast land holdings on five Continents. Most of the world`s silver and
gold up to that time was mined in its colonies in Central and South America. The result was that the Spanish
“piece of eight” became the de facto currency of many countries outside the Spanish Empire.
Over four billion pesos, one peso being a monetary unit equivalent to eleven eighths of an ounce of silver,
reached Spain from the New World. Hundreds of millions more pesos sunk to the bottom of the sea
representing tens of billions of dollars in modern terms. The Portuguese, Dutch, English and other European
powers also became heavily involved in colonial trade and many treasure ships of these nations also sank
over the centuries.
Within a short time of the discovery of the New World by Christopher Columbus the Spanish had built up a
sophisticated network of trade, centered around its possessions in South America.
The trade routes are relevant for the Projects.
SOUTH SEAS ARMADA
Because Spain owned virtually all of the west coast of Central and South America it was necessary for
regular supply ships to move down the west coast transporting personnel and delivering cargo much of
which came from Europe. On the return trip north these ships would collect gold, silver and gemstones from
the mines and refineries dotted along the coast and deliver them to Panama in New Mexico where they were
stored.
The ships that plied this route were known as the South Seas Armada since “South Seas” was the name
given by the Spanish navigators of the Eastern portion of the Pacific Ocean in this area.
Much of the navigation is hazardous and severe storms are common. Over the centuries a great many ships
of the South Seas Armada were lost along the coast of South America travelling in both directions.
Historical Background
After storage in Panama the bullion and other valuables were transported by mule train across the isthmus to
the east coast of South America where they were picked up by Spanish fleets and transported across the
Atlantic to Spain.
The South Seas Armada stayed close to the coast and while that provided security from the fierce storms of
the mid southern Pacific it also presented the greatest hazard these ships faced – the reefs and shoals off
the south and central American coastline.
Navigation was not precise, squalls are severe and come on with little warning and sailing these waters at
night even today is demanding.
Many ships were lost over the years. In particular we are interested in those lost off the coastline of Ecuador
where there are particularly hazardous shoals and where, because the ships were near the end of their
northerly journey, they were likely to have rich cargos. These wrecks are the target of our Ecuadorian
Project.
Despite fervent interest in Spanish colonial shipwrecks among scholars and salvage companies, few have
been discovered to date. Prior to the Second World War, the accepted wisdom was that most sunken cargo
was irretrievably lost. However, modern technology is rapidly changing the field of salvage and it is now
more likely that at least some of these hidden treasures will be found in the next ten to fifteen years. With
the tools available to salvors today, it is possible to map and recover almost anything that lies at the bottom
of the sea. It is merely a question of cost. It has been estimated there are over three million shipwrecks
lying on the bottom of the oceans and seas. We are in the midst of very exciting times for marine
archaeology. Those that become involved in solid opportunities with the right people stand to be richly
rewarded, both financially and personally.
Open Waters Trading Limited specializes in the organization and finance of shipwreck salvage projects. The
shareholders invest their own money during the initial stages of viable projects that pass rigorous due
diligence requirements. They then assist in the development of the Projects to an advanced stage, at which
time outside investors may be invited to participate. OWTL works in conjunction with other reputable
individuals and organizations to achieve superior financial returns while maintaining the highest standard of
integrity in marine archaeology. The preservation and growth of investors’ capital is paramount to our
mission.
Areas in which OWTL has knowledge and experience include:
• Identification and evaluation of salvage projects
• Historical research
• Equipment and personnel procurement
• Project supervision and management
• Project finance
• Marketing and sale of recovered artifacts
The Ecuador Projects are managed by RS Operations, a US-based salvage company working in conjunction
with its Partners in Ecuador.
8 8
Historical Background
After storage in Panama the bullion and other valuables were transported by mule train across the isthmus to
the east coast of South America where they were picked up by Spanish fleets and transported across the
Atlantic to Spain.
The South Seas Armada stayed close to the coast and while that provided security from the fierce storms of
the mid southern Pacific it also presented the greatest hazard these ships faced – the reefs and shoals off
the south and central American coastline.
Navigation was not precise, squalls are severe and come on with little warning and sailing these waters at
night even today is demanding.
Many ships were lost over the years. In particular we are interested in those lost off the coastline of Ecuador
where there are particularly hazardous shoals and where, because the ships were near the end of their
northerly journey, they were likely to have rich cargos. These wrecks are the target of our Ecuadorian
Project.
Despite fervent interest in Spanish colonial shipwrecks among scholars and salvage companies, few have
been discovered to date. Prior to the Second World War, the accepted wisdom was that most sunken cargo
was irretrievably lost. However, modern technology is rapidly changing the field of salvage and it is now
more likely that at least some of these hidden treasures will be found in the next ten to fifteen years. With
the tools available to salvors today, it is possible to map and recover almost anything that lies at the bottom
of the sea. It is merely a question of cost. It has been estimated there are over three million shipwrecks
lying on the bottom of the oceans and seas. We are in the midst of very exciting times for marine
archaeology. Those that become involved in solid opportunities with the right people stand to be richly
rewarded, both financially and personally.
Open Waters Trading Limited specializes in the organization and finance of shipwreck salvage projects. The
shareholders invest their own money during the initial stages of viable projects that pass rigorous due
diligence requirements. They then assist in the development of the Projects to an advanced stage, at which
time outside investors may be invited to participate. OWTL works in conjunction with other reputable
individuals and organizations to achieve superior financial returns while maintaining the highest standard of
integrity in marine archaeology. The preservation and growth of investors’ capital is paramount to our
mission.
Areas in which OWTL has knowledge and experience include:
• Identification and evaluation of salvage projects
• Historical research
• Equipment and personnel procurement
• Project supervision and management
• Project finance
• Marketing and sale of recovered artifacts
The Ecuador Projects are managed by RS Operations, a US-based salvage company working in conjunction
with its Partners in Ecuador.
A Typical Salvage Project
There have been hundreds of shipwreck salvage projects throughout history. The first recorded mention of an
attempt to retrieve sunken treasure is by the Greek historian Herodotus who lived in the fifth century B.C. He
writes that Xerxes, the king of Persia, used Greek divers in the excavation of several Persian galleys sunk in a
battle. The Greeks became famed for their treasure diving skills and many accounts of successful undertakings
survive today. Alexander the Great is credited with the first descent in a diving bell in 332 B.C.
From the 16th Century, the Spanish used local pearl divers from the Caribbean to salvage sunken cargos. It is
said these divers could hold their breath for five minutes while submerged. Such crude techniques were only
useful for shallow wrecks and had to be done within a short time after sinking as currents usually buried wrecks
and it was sometimes difficult to relocate wreck sites with contemporary technology. The vast majority of
shipwrecks remained hidden until the latter half of 20th Century when new underwater diving technologies were
developed. To this day it is still not easy to locate wrecks but modern technological advances are making this
process less haphazard. Most have yet to be discovered.
Each salvage project will obviously have many aspects peculiar to itself but all typically have three phases.
Phase I involves the initial land-based research. This stage includes the evaluation of the project and the initial
preparations and logistics such as:
• Historical research
• Study of the legal issues effecting the project
• Equipment and personnel acquisition
• Evaluation of local climate conditions
• Procurement of Financial Backing
• Procurement of all visas, permits and other government documents required
Phase II is the search and identification phase. Much of the preparations of this phase will depend on the
historical research. A search pattern in the permit area must be drafted. A crew is then mobilized using the
equipment acquired during the first phase. Typically this will involve at least one ship, a global positioning
system, side and sector scanning sonars, magnetometers, various types of diving equipment and transponders
and other advanced communication equipment. Deeper wrecks require decompression tanks and remotely
operated underwater vehicles. Hopefully one or more targets can be identified. These areas are then scoured
for any surface artifacts which would indicate the viability of an excavation. The process may be repeated
several times.
Phase III is the excavation phase. This involves the raising of the cargo from the wreck site in an archeological
acceptable manner. This phase may be completed in only a few days or it may take several return trips over
months or even years. It all depends on the prevailing conditions. All items are meticulously documented and
photographed as they come to the surface. Once the wreck site is abandoned, the items must then be
dispersed in whatever manner has been agreed upon by the salvage personnel and the government. Typically
this will involve some artifacts going to the Museum of the governing nation as well as a split of profits of sold
items. Items are usually sold by auction or to private dealers. Proceeds are then split between all parties
concerned.
9 9
A Typical Salvage Project
There have been hundreds of shipwreck salvage projects throughout history. The first recorded mention of an
attempt to retrieve sunken treasure is by the Greek historian Herodotus who lived in the fifth century B.C. He
writes that Xerxes, the king of Persia, used Greek divers in the excavation of several Persian galleys sunk in a
battle. The Greeks became famed for their treasure diving skills and many accounts of successful undertakings
survive today. Alexander the Great is credited with the first descent in a diving bell in 332 B.C.
From the 16th Century, the Spanish used local pearl divers from the Caribbean to salvage sunken cargos. It is
said these divers could hold their breath for five minutes while submerged. Such crude techniques were only
useful for shallow wrecks and had to be done within a short time after sinking as currents usually buried wrecks
and it was sometimes difficult to relocate wreck sites with contemporary technology. The vast majority of
shipwrecks remained hidden until the latter half of 20th Century when new underwater diving technologies were
developed. To this day it is still not easy to locate wrecks but modern technological advances are making this
process less haphazard. Most have yet to be discovered.
Each salvage project will obviously have many aspects peculiar to itself but all typically have three phases.
Phase I involves the initial land-based research. This stage includes the evaluation of the project and the initial
preparations and logistics such as:
• Historical research
• Study of the legal issues effecting the project
• Equipment and personnel acquisition
• Evaluation of local climate conditions
• Procurement of Financial Backing
• Procurement of all visas, permits and other government documents required
Phase II is the search and identification phase. Much of the preparations of this phase will depend on the
historical research. A search pattern in the permit area must be drafted. A crew is then mobilized using the
equipment acquired during the first phase. Typically this will involve at least one ship, a global positioning
system, side and sector scanning sonars, magnetometers, various types of diving equipment and transponders
and other advanced communication equipment. Deeper wrecks require decompression tanks and remotely
operated underwater vehicles. Hopefully one or more targets can be identified. These areas are then scoured
for any surface artifacts which would indicate the viability of an excavation. The process may be repeated
several times.
Phase III is the excavation phase. This involves the raising of the cargo from the wreck site in an archeological
acceptable manner. This phase may be completed in only a few days or it may take several return trips over
months or even years. It all depends on the prevailing conditions. All items are meticulously documented and
photographed as they come to the surface. Once the wreck site is abandoned, the items must then be
dispersed in whatever manner has been agreed upon by the salvage personnel and the government. Typically
this will involve some artifacts going to the Museum of the governing nation as well as a split of profits of sold
items. Items are usually sold by auction or to private dealers. Proceeds are then split between all parties
concerned.
Open Waters
Trading Ltd
PERSONNEL – Executive Team
DIRECTOR – Michael Bigg
Michael Bigg was admitted as a Solicitor of the Supreme Court, Queensland in 1982 and is qualified to practise and
be admitted as solicitor in all courts and in all states of Australia. He has been a Partner at Bennett & Philp since
1989. Michael initially practised in the Commercial Litigation field taking two cases to the High Court of Australia on
appeal. For the last 15 years he has practised in Commercial Law with particular emphasis on Corporate Law, Trusts,
Structuring, Corporate startups, Business mergers and Acquisitions. He has been involved with scuba diving,
particularly wreck diving since 1973 and has completed specialist courses in wreck diving, deep water diving,
decompression diving and nitrox diving.
OPERATIONS MANAGER – Scott Heimdal
Scott Heimdal is President of RS Operations, a partner of Open Waters Trading Limited, and is the Operations
Manager of all Projects financed or underwritten by Open Waters Trading Limited or its subsidiaries. Scott is directly
responsible for all survey, recovery, preservation activities and overall project management. He also manages the
other four departments of RS Operations, coordinating overall efforts throughout various phases of exploration,
recovery and preservation. Scott brings a broad range of field operations planning and management expertise to this
venture. He has extensive knowledge of survey technology, field survey procedures and operational planning. His
extensive field experience includes operations in the Middle East, Mediterranean, Central and South America. Scott is
well-known throughout the field and has been the subject of numerous media articles.
CONSULTANTS
Robert F. Marx
Robert F. Marx will provide advice and guidance in the areas of business structure and fiscal policy, as well as fund
raising efforts, historical research initiatives, documentary production and field operations. A pioneer in the field of
underwater archaeology, Robert is one of a handful of experts that have truly written the book on underwater
exploration and searching for shipwrecks. Throughout his career he has contributed to the advancement of deep-sea
exploration by authoring over 800 scientific reports/articles and 63 books on history, archaeology, shipwrecks and
exploration.
Robert Richter Q.C.
Robert Richter is the former Chairman of the Criminal Bar Association, former President of the Victorian Council for
Civil Liberties, former part-time Law Reform Commissioner for Victoria and former member of the Bar Council. Robert
is retained as legal counsel for Open Waters Trading Limited.
Recovered Cargos Limited
DIRECTOR – Douglas Grahame
Douglas Grahame was born in England and joined the Royal Navy at the age of 16 where he became a Navy Diver.
He used the advanced training and knowledge gained from these years to embark on a career in commercial diving.
He has been involved in various projects around the world in the fishing and tourism industry. Well known in the
salvage industry, Doug has vast experience in archival research, electronic surveys and mobilization of vessels and
crews. Doug has acted as Marine Archaeologist on many salvage recoveries on behalf of the National Museum of the
Philippines and private groups. Douglas moved to the Philippines in 1988 where he has been involved in the recovery
of several historical and World War II wrecks including the recent recovery of thousands of pieces of 15th century
porcelain from a Chinese Junk. Douglas will be aboard the vessel at all times during the salvage operation. He will
monitor the diving operations and record all artifacts recovered. He will write regular updates to all investors. Douglas
is confident of success for all those involved in Recovered Cargos Limited.
10
Open Waters
Trading Ltd
PERSONNEL – Executive Team
DIRECTOR – Michael Bigg
Michael Bigg was admitted as a Solicitor of the Supreme Court, Queensland in 1982 and is qualified to practise and
be admitted as solicitor in all courts and in all states of Australia. He has been a Partner at Bennett & Philp since
1989. Michael initially practised in the Commercial Litigation field taking two cases to the High Court of Australia on
appeal. For the last 15 years he has practised in Commercial Law with particular emphasis on Corporate Law, Trusts,
Structuring, Corporate startups, Business mergers and Acquisitions. He has been involved with scuba diving,
particularly wreck diving since 1973 and has completed specialist courses in wreck diving, deep water diving,
decompression diving and nitrox diving.
OPERATIONS MANAGER – Scott Heimdal
Scott Heimdal is President of RS Operations, a partner of Open Waters Trading Limited, and is the Operations
Manager of all Projects financed or underwritten by Open Waters Trading Limited or its subsidiaries. Scott is directly
responsible for all survey, recovery, preservation activities and overall project management. He also manages the
other four departments of RS Operations, coordinating overall efforts throughout various phases of exploration,
recovery and preservation. Scott brings a broad range of field operations planning and management expertise to this
venture. He has extensive knowledge of survey technology, field survey procedures and operational planning. His
extensive field experience includes operations in the Middle East, Mediterranean, Central and South America. Scott is
well-known throughout the field and has been the subject of numerous media articles.
CONSULTANTS
Robert F. Marx
Robert F. Marx will provide advice and guidance in the areas of business structure and fiscal policy, as well as fund
raising efforts, historical research initiatives, documentary production and field operations. A pioneer in the field of
underwater archaeology, Robert is one of a handful of experts that have truly written the book on underwater
exploration and searching for shipwrecks. Throughout his career he has contributed to the advancement of deep-sea
exploration by authoring over 800 scientific reports/articles and 63 books on history, archaeology, shipwrecks and
exploration.
Robert Richter Q.C.
Robert Richter is the former Chairman of the Criminal Bar Association, former President of the Victorian Council for
Civil Liberties, former part-time Law Reform Commissioner for Victoria and former member of the Bar Council. Robert
is retained as legal counsel for Open Waters Trading Limited.
Recovered Cargos Limited
DIRECTOR – Douglas Grahame
Douglas Grahame was born in England and joined the Royal Navy at the age of 16 where he became a Navy Diver.
He used the advanced training and knowledge gained from these years to embark on a career in commercial diving.
He has been involved in various projects around the world in the fishing and tourism industry. Well known in the
salvage industry, Doug has vast experience in archival research, electronic surveys and mobilization of vessels and
crews. Doug has acted as Marine Archaeologist on many salvage recoveries on behalf of the National Museum of the
Philippines and private groups. Douglas moved to the Philippines in 1988 where he has been involved in the recovery
of several historical and World War II wrecks including the recent recovery of thousands of pieces of 15th century
porcelain from a Chinese Junk. Douglas will be aboard the vessel at all times during the salvage operation. He will
monitor the diving operations and record all artifacts recovered. He will write regular updates to all investors. Douglas
is confident of success for all those involved in Recovered Cargos Limited.
10
 PERSONNEL – Executive Team
PRESIDENT
OPERATIONS – Scott Heimdal
Scott Heimdal is president of RS Operations and manages overall operations. See ‘Personnel’ Open Waters
Trading Ltd.
VICE-PRESIDENT
SUPPORT SERVICES – Dennis Davis
Dennis Davis heads the support services department. Logistics support of field operations is a critical
component and crucial to the success of any project. The function of this department extends beyond the initial
exploration stage of any project and includes ongoing support of Phase III recovery efforts, as well as support of
subcontracted organizations, industry partners and government agencies. Dennis brings extensive
management experience from a broad range of industries. He will oversee all support services and sub-
contractors, ensuring that support activities meet operational needs and conform to contractual requirements.
VICE-PRESIDENT
COMMUNICATIONS – Terry Towery
Terry Towery heads our communications department. We recognize the value and inherent importance of
media coverage of our company and its activities. Effective, ongoing media relations will elevate our status
within the international community.
This department will continuously provide story material to various news outlets and magazine publications as
well as coordinate production of books concerning company activities. An award-winning journalist, Terry
serves as the Assignment Editor for the Journal Star, the third largest newspaper in the State of Illinois.
OPERATIONS – Robert F. Marx
Robert F. Marx has been described as the ‘true father of underwater archaeology’. He was a founding member
of the ‘Council of Underwater Archaeology’ and the ‘Sea Research Society’. Robert’s remarkable skills and
talents provide significant benefits for the company, business partners, and investors.
ENGINEERING – Greg Asbury
Greg Asbury, vice president of Mactec-ESE, one of the United States’ largest environmental engineering firms,
has over two decades of environmental engineering and project management experience. His skills will be
utilised to coordinate the various engineering disciplines that will be required to fulfill project requirements.
Effective environment impact management during field operations is an important component of our operational
model.
11
PERSONNEL – Executive Team
PRESIDENT
OPERATIONS – Scott Heimdal
Scott Heimdal is president of RS Operations and manages overall operations. See ‘Personnel’ Open Waters
Trading Ltd.
VICE-PRESIDENT
SUPPORT SERVICES – Dennis Davis
Dennis Davis heads the support services department. Logistics support of field operations is a critical
component and crucial to the success of any project. The function of this department extends beyond the initial
exploration stage of any project and includes ongoing support of Phase III recovery efforts, as well as support of
subcontracted organizations, industry partners and government agencies. Dennis brings extensive
management experience from a broad range of industries. He will oversee all support services and sub-
contractors, ensuring that support activities meet operational needs and conform to contractual requirements.
VICE-PRESIDENT
COMMUNICATIONS – Terry Towery
Terry Towery heads our communications department. We recognize the value and inherent importance of
media coverage of our company and its activities. Effective, ongoing media relations will elevate our status
within the international community.
This department will continuously provide story material to various news outlets and magazine publications as
well as coordinate production of books concerning company activities. An award-winning journalist, Terry
serves as the Assignment Editor for the Journal Star, the third largest newspaper in the State of Illinois.
OPERATIONS – Robert F. Marx
Robert F. Marx has been described as the ‘true father of underwater archaeology’. He was a founding member
of the ‘Council of Underwater Archaeology’ and the ‘Sea Research Society’. Robert’s remarkable skills and
talents provide significant benefits for the company, business partners, and investors.
ENGINEERING – Greg Asbury
Greg Asbury, vice president of Mactec-ESE, one of the United States’ largest environmental engineering firms,
has over two decades of environmental engineering and project management experience. His skills will be
utilised to coordinate the various engineering disciplines that will be required to fulfill project requirements.
Effective environment impact management during field operations is an important component of our operational
model.
11
Personnel
Robert F. Marx
A successful search for a shipwreck begins with extensive historical
research. A prolific researcher and author, Mr. Marx has spent countless
hours researching archives from Kuala Lumpur in Malaysia and the National
Archives of Singapore, to Portuguese archives in Lisbon and Spanish
archives in Seville, Spain. His exhaustive efforts over the last 50 years
have taken him to almost every record repository in the world.
A pioneer in the field of underwater archaeology, Mr. Marx is one of a
handful of experts that have truly written the book on underwater exploration
and searching for shipwrecks. Throughout his career he has contributed to
the advancement of deep-sea exploration by authoring over 800 scientific
reports/articles and 63 books on history, archaeology, shipwrecks and
exploration. He literally wrote the “how-to” book on the subject, including his
recently published autobiography, “In the Wake of the Galleons.” An
accomplished shipwreck historian and archaeologist, Marx began his career
in the military as a director of the U.S. Marine Corps Diving School.
His extensive field experience includes expeditions in almost every ocean and sea in the world. His
discoveries have included, two shipwrecks of Christopher Columbus lost in 1504 in St. Anne’s Bay,
Jamaica, one of which was the Nuestra Senora de la Maravilla, dozens of ships from the Spanish
nd
Treasure Fleets, as well as hundreds of others. Amongst his most notable discoveries is that of a 2
Century BC Roman shipwreck in Brazil, which predated Columbus’s discovery by 1,700 years. Marx, of
Indiatlantic, Fla., has a career resume that lists 3,000 historic shipwrecks discovered worldwide over five
decades, including several of the richest treasure finds in the modern era of underwater exploration.
Most notable among the many honors bestowed on Mr. Marx was being made a Knight-Commander in
the Order of Isabel the Catholic for his duplication of an authentic voyage of Columbus’ first voyage of
exploration in the Nina II.
His depth and breadth of knowledge in the field has also led him to consult on many Hollywood
productions and television documentaries. These consultations have been for such organizations as the
Learning Channel, Arts and Entertainment Network, The History Channel, NOVA, Forty-Eight Hours,
Andrew Solt Productions, Greystone Productions, BBC 2, Dateline NBC.
Having worked world-wide in the exploration and discovery of historic ships in almost every ocean and
sea in the world, Mr. Marx has few equals in the annuls of modern-day exploration.
His role as an active collaborator with RS Operations, LLC (RSOPS) adds a boatload of skills and talents
to the venture.
“The addition of Robert Marx to the South Sea Expeditions Project is an important step forward for our
company. He brings five decades of experience in many key areas including historical research,
archaeology and field operations. We’re very fortunate to have the benefit of his experience and
expertise”, commented Scott Heimdal, President of RS Operations, LLC. “As we enter the next phase in
the implementation of our business plan, the skills and talents he brings will provide significant benefits
for our company, business partners and investors”.
Mr. Marx said he joined RSOPS because he’s “real confident” of Heimdal’s research and of the
investment company’s legitimacy. He will add his own research and discovery expertise to the venture.
12
Personnel
Robert F. Marx
A successful search for a shipwreck begins with extensive historical
research. A prolific researcher and author, Mr. Marx has spent countless
hours researching archives from Kuala Lumpur in Malaysia and the National
Archives of Singapore, to Portuguese archives in Lisbon and Spanish
archives in Seville, Spain. His exhaustive efforts over the last 50 years
have taken him to almost every record repository in the world.
A pioneer in the field of underwater archaeology, Mr. Marx is one of a
handful of experts that have truly written the book on underwater exploration
and searching for shipwrecks. Throughout his career he has contributed to
the advancement of deep-sea exploration by authoring over 800 scientific
reports/articles and 63 books on history, archaeology, shipwrecks and
exploration. He literally wrote the “how-to” book on the subject, including his
recently published autobiography, “In the Wake of the Galleons.” An
accomplished shipwreck historian and archaeologist, Marx began his career
in the military as a director of the U.S. Marine Corps Diving School.
His extensive field experience includes expeditions in almost every ocean and sea in the world. His
discoveries have included, two shipwrecks of Christopher Columbus lost in 1504 in St. Anne’s Bay,
Jamaica, one of which was the Nuestra Senora de la Maravilla, dozens of ships from the Spanish
nd
Treasure Fleets, as well as hundreds of others. Amongst his most notable discoveries is that of a 2
Century BC Roman shipwreck in Brazil, which predated Columbus’s discovery by 1,700 years. Marx, of
Indiatlantic, Fla., has a career resume that lists 3,000 historic shipwrecks discovered worldwide over five
decades, including several of the richest treasure finds in the modern era of underwater exploration.
Most notable among the many honors bestowed on Mr. Marx was being made a Knight-Commander in
the Order of Isabel the Catholic for his duplication of an authentic voyage of Columbus’ first voyage of
exploration in the Nina II.
His depth and breadth of knowledge in the field has also led him to consult on many Hollywood
productions and television documentaries. These consultations have been for such organizations as the
Learning Channel, Arts and Entertainment Network, The History Channel, NOVA, Forty-Eight Hours,
Andrew Solt Productions, Greystone Productions, BBC 2, Dateline NBC.
Having worked world-wide in the exploration and discovery of historic ships in almost every ocean and
sea in the world, Mr. Marx has few equals in the annuls of modern-day exploration.
His role as an active collaborator with RS Operations, LLC (RSOPS) adds a boatload of skills and talents
to the venture.
“The addition of Robert Marx to the South Sea Expeditions Project is an important step forward for our
company. He brings five decades of experience in many key areas including historical research,
archaeology and field operations. We’re very fortunate to have the benefit of his experience and
expertise”, commented Scott Heimdal, President of RS Operations, LLC. “As we enter the next phase in
the implementation of our business plan, the skills and talents he brings will provide significant benefits
for our company, business partners and investors”.
Mr. Marx said he joined RSOPS because he’s “real confident” of Heimdal’s research and of the
investment company’s legitimacy. He will add his own research and discovery expertise to the venture.
12
13 13
Statement of The Company
Advanced technology has created potentially lucrative salvage opportunities for the recovery of gold,
silver, precious stones, ceramics and historical artifacts from ancient shipwrecks.
The Management of Open Waters Trading Limited and RS Operations LLC has considered all aspects of
the Projects and one of the major factors has been the need to define an emphasis and a philosophy for
its operations. The importance of history to all cultures that make up the present world and the excellent
work done by land archaeologists in providing an insight into how ancient cultures lived in the past, do not
need to be restated. The lessons of history provide us all with guidance and can help us see the value of
our own contribution to the future. During the last few years, pioneers have been developing methods of
organizing underwater archaeology, so that our maritime heritage can be recovered and restored with
greater efficiency than in the past.
They have had many problems to solve both in technology and in coping with the special hazards of the
underwater environment. But success has been achieved and no doubt everyone has heard of the
recovery of historically important ships. These vessels have been recovered by governments or private
sponsors who saw their immense significance to present and future generations and the archaeologists
who have worked on these vessels are rightly proud of their achievements.
OWTL’s philosophy in its ventures is to continually maintain the highest possible archaeological
standards which are consistent with a commercially attractive return for shareholders.
In this way OWTL believes that: -
• all shareholders will find satisfaction in each salvage;
• lost culture and history will be recovered and preserved;
• each relevant government will have a right to significant items of historical value being an agreed
percentage of each salvage;
• the Projects will be undertaken without being a drain on local taxpayers;
• RS Operations and Open Waters Trading Limited and its shareholders are afforded the
opportunity to make a satisfying commercial gain.
Research evidence available shows that there is immense underwater wealth in many parts of the
oceans. The Company believes that, although the Salvors they are involved with have enjoyed
tremendous success in the past resulting in significant financial returns, because of more sophisticated
technology and techniques now being utilised, the current Projects will produce higher than expected
returns and provide its Investors with the satisfaction of participating in a modern high adventure.
Objective
RS Ops and the Project Partners have exclusive rights to undertake expeditions to exploit the Wrecks
and salvage their cargos. Through the Marine Salvage Funding Agreement OWTL is entitled to share in
the profits of these expeditions. It is anticipated these expeditions will prove successful with shareholders
to benefit in financial returns that ensue. A profile of Open Waters Trading Limited and RS Operations,
LLC is contained in this Memorandum.
In summary, salvage operations will take place in Ecuadorian Waters in the south Pacific, of many historic
and highly valuable Wrecks in the permit areas.
A complete profile of the Wrecks and personnel involved is contained in this Memorandum.
14
Statement of The Company
Advanced technology has created potentially lucrative salvage opportunities for the recovery of gold,
silver, precious stones, ceramics and historical artifacts from ancient shipwrecks.
The Management of Open Waters Trading Limited and RS Operations LLC has considered all aspects of
the Projects and one of the major factors has been the need to define an emphasis and a philosophy for
its operations. The importance of history to all cultures that make up the present world and the excellent
work done by land archaeologists in providing an insight into how ancient cultures lived in the past, do not
need to be restated. The lessons of history provide us all with guidance and can help us see the value of
our own contribution to the future. During the last few years, pioneers have been developing methods of
organizing underwater archaeology, so that our maritime heritage can be recovered and restored with
greater efficiency than in the past.
They have had many problems to solve both in technology and in coping with the special hazards of the
underwater environment. But success has been achieved and no doubt everyone has heard of the
recovery of historically important ships. These vessels have been recovered by governments or private
sponsors who saw their immense significance to present and future generations and the archaeologists
who have worked on these vessels are rightly proud of their achievements.
OWTL’s philosophy in its ventures is to continually maintain the highest possible archaeological
standards which are consistent with a commercially attractive return for shareholders.
In this way OWTL believes that: -
• all shareholders will find satisfaction in each salvage;
• lost culture and history will be recovered and preserved;
• each relevant government will have a right to significant items of historical value being an agreed
percentage of each salvage;
• the Projects will be undertaken without being a drain on local taxpayers;
• RS Operations and Open Waters Trading Limited and its shareholders are afforded the
opportunity to make a satisfying commercial gain.
Research evidence available shows that there is immense underwater wealth in many parts of the
oceans. The Company believes that, although the Salvors they are involved with have enjoyed
tremendous success in the past resulting in significant financial returns, because of more sophisticated
technology and techniques now being utilised, the current Projects will produce higher than expected
returns and provide its Investors with the satisfaction of participating in a modern high adventure.
Objective
RS Ops and the Project Partners have exclusive rights to undertake expeditions to exploit the Wrecks
and salvage their cargos. Through the Marine Salvage Funding Agreement OWTL is entitled to share in
the profits of these expeditions. It is anticipated these expeditions will prove successful with shareholders
to benefit in financial returns that ensue. A profile of Open Waters Trading Limited and RS Operations,
LLC is contained in this Memorandum.
In summary, salvage operations will take place in Ecuadorian Waters in the south Pacific, of many historic
and highly valuable Wrecks in the permit areas.
A complete profile of the Wrecks and personnel involved is contained in this Memorandum.
14
OWTL has a Marine Salvage Agreement in place with RS Ops and through that company with the Project
Partners (which are 100% owned by RS Ops) which requires OWTL to provide funding for the Projects in
return for a share of profits from them.
These profits are distributed as dividends by OWTL to its shareholders, including the Company.
The Nature of the Opportunity
The current shareholders in the Company have other opportunities available to them and want to realise
a percentage (40%) of the Company’s entitlement to dividends from OWTL to achieve this.
The Company is the largest shareholder in OWTL, holding 85% of its shares.
OWTL is, pursuant to the Marine Salvage Funding Agreement, entitled to 7.13% of the net profits arising
from the Projects.
Therefore the majority of the profits earned by OWTL (85%) will flow to the Company as dividends.
Investors are being offered the opportunity to buy an entitlement to some of the dividends paid on these
shares in OWTL which gives them the opportunity to share in the dividend stream from OWTL, which
comes from the profits of the Projects.
The diagram.below sets out the flow of profits which will reach the Investor through the Investor’s right to
receive some of the dividends which the Company recieves from OWTL.
PROJECTS
profits
Open Waters Trading Limited
dividends dividends dividends
Recovered Cargos Ltd Investors Other Shareholders
Conclusion
The explorations being undertaken are sophisticated and not dissimilar to mineral exploration, based on
known but approximate locations combined with the benefit of research, experience, knowledge and local
contacts. The explorations are based on extensive world wide research by RS Ops and the Project
Partners and the enterprises that they are associated with. Their philosophy, when carrying out marine
salvage operations, is to maintain the highest possible archaeological standards in a way that is
commercially attractive to investors.
Both the science of underwater archaeology and the industry of shipwreck salvage have been driven by
the continual evolution in technology. New types of equipment and procedures have helped make the
location and excavation of shipwrecks more efficient and cost effective, while greatly increasing the safety
of personnel involved.
Today, it is widely accepted that there is no shipwreck anywhere in the world that cannot be located and
recovered using modern technology.
Your investment will give you the opportunity to share in the financial rewards that may flow from these
exciting ventures.
The Company is confident of the Company’s success and therefore recommends it to investors.
15
OWTL has a Marine Salvage Agreement in place with RS Ops and through that company with the Project
Partners (which are 100% owned by RS Ops) which requires OWTL to provide funding for the Projects in
return for a share of profits from them.
These profits are distributed as dividends by OWTL to its shareholders, including the Company.
The Nature of the Opportunity
The current shareholders in the Company have other opportunities available to them and want to realise
a percentage (40%) of the Company’s entitlement to dividends from OWTL to achieve this.
The Company is the largest shareholder in OWTL, holding 85% of its shares.
OWTL is, pursuant to the Marine Salvage Funding Agreement, entitled to 7.13% of the net profits arising
from the Projects.
Therefore the majority of the profits earned by OWTL (85%) will flow to the Company as dividends.
Investors are being offered the opportunity to buy an entitlement to some of the dividends paid on these
shares in OWTL which gives them the opportunity to share in the dividend stream from OWTL, which
comes from the profits of the Projects.
The diagram.below sets out the flow of profits which will reach the Investor through the Investor’s right to
receive some of the dividends which the Company recieves from OWTL.
PROJECTS
profits
Open Waters Trading Limited
dividends dividends dividends
Recovered Cargos Ltd Investors Other Shareholders
Conclusion
The explorations being undertaken are sophisticated and not dissimilar to mineral exploration, based on
known but approximate locations combined with the benefit of research, experience, knowledge and local
contacts. The explorations are based on extensive world wide research by RS Ops and the Project
Partners and the enterprises that they are associated with. Their philosophy, when carrying out marine
salvage operations, is to maintain the highest possible archaeological standards in a way that is
commercially attractive to investors.
Both the science of underwater archaeology and the industry of shipwreck salvage have been driven by
the continual evolution in technology. New types of equipment and procedures have helped make the
location and excavation of shipwrecks more efficient and cost effective, while greatly increasing the safety
of personnel involved.
Today, it is widely accepted that there is no shipwreck anywhere in the world that cannot be located and
recovered using modern technology.
Your investment will give you the opportunity to share in the financial rewards that may flow from these
exciting ventures.
The Company is confident of the Company’s success and therefore recommends it to investors.
15
16 16
17 17
 History of the Spanish Treasure Fleets
Spain rose to the status of the most powerful nation in Europe after
the voyage of Columbus in 1492. The New World provided the
wealth necessary to attain and maintain this position for over a
century. During this time, Spain established global trade routes with
ports from Manila to Peru, and all over the West Indies. Such power
did not come without a price; however, as the Spanish treasure fleets
became the favorite targets of unfriendly nations and the privateers
they spawned. Spain’s hold over the West Indies became a bone of
contention with other European nations, and the wars that ensued
created a huge financial demand that depended on the flow of gold and silver coming from the New World.
Armed galleons were sent to accompany every treasure fleet, but Spain could not hope to maintain control
over this area for long. The financial demands were too much, and the loss of numerous fleets to storms
and battles eventually took its toll. The Treaty of Utrecht in 1713 brought to an end Spain’s exclusive hold
over the West Indies.
A pattern of trade, controlled strictly by the Spanish crown, had evolved based on the economic policies of
the day. Spain’s policy was to establish a monopoly, keeping her colonies dependent upon her – typical
of colonial powers. This monopoly was eventually challenged successfully by English and Dutch traders,
but by law, Spanish colonials could trade only with the authorized Spanish merchant flotas. As early as
th
the 16 Century, a law was passed by the Casa de Contratacion, or “House of Trade”, which called for the
periodic sailing of fleets from Spain to the Caribbean twice a year (though they hardly ever sailed on
schedule). The fleets carried manufactured goods for sale to the citizens of the New World, and were
then filled with the rich treasures of the Americas for transport back to Spain.
The Spanish made elaborate plans to minimize losses from their treasure fleets by carefully planning their
routes to take advantage of favorable winds and currents and by scheduling departures to avoid seasonal
storms. Two great convoys were organized to transport the treasure. The Tierra Firme fleet would visit
Cartagena and Nombre de Dios. The Nueva Espana fleet would go to Vera Cruz. These fleets would
depart Spain, every year, loaded with supplies needed by the colonies. These trips were scheduled to
take the maximum advantage of winds, currents, and avoid the seasonal hurricanes. Each fleet travelled
separately, just in case they lost one fleet to pirates or storms, they would not lose everything.
The typical fleet consisted of several types of ships. Heavily armed galleons served as protection for the
bulk of the fleet, merchant, naos. (The only difference between the nao and galleon was the amount of
armament carried.) Several pataches, small reconnaissance vessels, also accompanied the fleet, as well
as resfuerzos or supply ships. The fleet was led by the Capitana, or flagship, and the Almiranta, or vice-
flagship.
The America bound fleets, first sailed to the Canary Islands to take on supplies. From there, they sailed
west, using the trade winds. Each fleet left at a different time, to keep them spaced apart from one
another. When the officials at Mexico City learned that the fleet was arriving in Vera Cruz they would
transport all of the silver by wagons to Vera Cruz. When the fleet arrived, there would be a large fair,
where the Spanish merchants who were part of the fleet, would trade their goods for silver. These fairs
18
History of the Spanish Treasure Fleets
Spain rose to the status of the most powerful nation in Europe after
the voyage of Columbus in 1492. The New World provided the
wealth necessary to attain and maintain this position for over a
century. During this time, Spain established global trade routes with
ports from Manila to Peru, and all over the West Indies. Such power
did not come without a price; however, as the Spanish treasure fleets
became the favorite targets of unfriendly nations and the privateers
they spawned. Spain’s hold over the West Indies became a bone of
contention with other European nations, and the wars that ensued
created a huge financial demand that depended on the flow of gold and silver coming from the New World.
Armed galleons were sent to accompany every treasure fleet, but Spain could not hope to maintain control
over this area for long. The financial demands were too much, and the loss of numerous fleets to storms
and battles eventually took its toll. The Treaty of Utrecht in 1713 brought to an end Spain’s exclusive hold
over the West Indies.
A pattern of trade, controlled strictly by the Spanish crown, had evolved based on the economic policies of
the day. Spain’s policy was to establish a monopoly, keeping her colonies dependent upon her – typical
of colonial powers. This monopoly was eventually challenged successfully by English and Dutch traders,
but by law, Spanish colonials could trade only with the authorized Spanish merchant flotas. As early as
th
the 16 Century, a law was passed by the Casa de Contratacion, or “House of Trade”, which called for the
periodic sailing of fleets from Spain to the Caribbean twice a year (though they hardly ever sailed on
schedule). The fleets carried manufactured goods for sale to the citizens of the New World, and were
then filled with the rich treasures of the Americas for transport back to Spain.
The Spanish made elaborate plans to minimize losses from their treasure fleets by carefully planning their
routes to take advantage of favorable winds and currents and by scheduling departures to avoid seasonal
storms. Two great convoys were organized to transport the treasure. The Tierra Firme fleet would visit
Cartagena and Nombre de Dios. The Nueva Espana fleet would go to Vera Cruz. These fleets would
depart Spain, every year, loaded with supplies needed by the colonies. These trips were scheduled to
take the maximum advantage of winds, currents, and avoid the seasonal hurricanes. Each fleet travelled
separately, just in case they lost one fleet to pirates or storms, they would not lose everything.
The typical fleet consisted of several types of ships. Heavily armed galleons served as protection for the
bulk of the fleet, merchant, naos. (The only difference between the nao and galleon was the amount of
armament carried.) Several pataches, small reconnaissance vessels, also accompanied the fleet, as well
as resfuerzos or supply ships. The fleet was led by the Capitana, or flagship, and the Almiranta, or vice-
flagship.
The America bound fleets, first sailed to the Canary Islands to take on supplies. From there, they sailed
west, using the trade winds. Each fleet left at a different time, to keep them spaced apart from one
another. When the officials at Mexico City learned that the fleet was arriving in Vera Cruz they would
transport all of the silver by wagons to Vera Cruz. When the fleet arrived, there would be a large fair,
where the Spanish merchants who were part of the fleet, would trade their goods for silver. These fairs
18
generally lasted from one to two months. After the fair was over, all of the silver was loaded onto the
ships for the return trip to Spain.

The other fleet that was bound to Tierra Firme left Spain in the late summer. They sailed from Sevilla to
Cartagena. This trip took them from 4 to 6 weeks and was assigned to pick up the gold and silver from
the southern colonies. When the fleet arrived in Cartagena, word was sent to Panama City, advising
officials to start sending the treasure, which went by riverboats and mule trains over the Kings Highway to
Nombre de Dios. The silver from Peru, was sent to Panama City, on the South Sea Fleet. This fleet was
smaller and not as heavily armed as the Atlantic Fleet. This was because the Spanish believed that it was
much more difficult for pirates to transverse the Straits of Magellan, and prey on the South Sea Fleet. It
would take about two months, to move the silver from the Ports of Arica (Chile and Callao (Peru) to
Panama, for storage.

Nombre de Dios like Vera Cruz, was very unhealthy forcing the inhabitants to abandon the cities, which
would only come to life when the Treasure Fleets came to port. Once the fleet arrived, there was a great
fair, just like in Vera Cruz, for the merchants to exchange silver and gold for merchandise from Europe. In
these ports, the ships traded manufactured goods for the wealth of the Indies, such items as gold, silver,
emeralds and other gemstones, hides, exotic woods, copper, tobacco, sugar, cochineal, indigo and other
valuables. In addition to these goods, another Spanish fleet, called the Manila Galleons, crossed the
Pacific and sent treasures from the Orient to Acapulco and then to the Caribbean flotas. These
commodities included such materials as ginger, cowrie shells, porcelains, silks, velvets, damasks, drugs,
pearls and ivory.

After a month or so of bartering at the trade fairs, the fleets were loaded for the return voyage. The two
flotas rendezvoused at Havana for the voyage home to Spain. In Havana, the Spanish had a large
shipyard, for repairing ships in need of repair, and preparing them for the longest part of the journey back
to Europe. From Havana, the fleet sailed north using the Gulf Stream, along the coast of Florida, all the
way to Cape Hatteras, where they turned east, and sailed to Spain. The Florida coast was one of the
most dangerous parts of the trip, because of the large number of reef, shoals and hurricanes, along the
coast. The ships would pass dangerously close to Bermuda, where they would fix their positions, before
the trip across the Atlantic.

Once the fleet reached the open water of the Atlantic, it was on its own because it lacked the protection of
the local protective squadrons the Spanish had established in the Caribbean and Spanish home waters.
Once close to Europe, it was easier for Spain’s enemies to attack the Treasure Fleet. In response to this
threat, Spanish authorities would send the Armada of the Ocean Sea, to rendezvous with the fleet to
escort it to Spain.

The great flota system reached its height between 1590 and 1600. Then, over the next century, the
system began to slowly decline. Spain’s leadership weakened and her debts increased, colonial mines
produced less precious metals, privateer attacks increased, and other European powers began to colonize
th
the Caribbean and break the Spanish trading monopoly. At the end of the 16 Century, the average
number of ships in the flota was 100; this was to degrade to 55 by 1610 and to 25 by 1640. At home,
Spain suffered general economic and industrial decline and began to lose its shipbuilding industry, as
attested to by the fact that by 1650 more than two thirds of the fleet ships were of foreign construction.
th
The Spanish navy was so weak by the end of the 17 Century that often foreign warships (usually
belonging to the nation that Spain owed the most money to) escorted the flota home. The loss of the 1715
th
and 1733 treasure flotas was a tremendous blow to Spain in the early 18 Century. The last flota to make
the transatlantic run sailed in 1778, and Spain officially declared free trade among its colonies.

19
All exclusive licences, permits and Authorities
are in place for salvage rights in Ecuadorian
Waters.

Ecuadorian government officials and authorities are required

to be in attendance at all times during salvage operations to
monitor and record all salvaged items recovered.

20
 THIS DOCUMENT CONTAINS PROPRIETARY
INFORMATION OF A CLASSIFIED NATURE

Open Waters Trading Limited/RS Operations LLC

MARINE ARCHAEOLOGICAL
RECOVERY OF:

Wreck of the Spanish Galleon named Clarius

ECUADORIAN WATERS

Various Shipwrecks – Banks of Sardinas

Wreck of the Spanish Galleon named St Nicholas

ECUADORIAN WATERS

Wreck of the Spanish Galleon named Galera

ECUADORIAN WATERS

Wreck of the Spanish Galleon named Cabo San Francisco

ECUADORIAN WATERS

Wreck of the Spanish Galleon named Capitana

ECUADORIAN WATERS

Wreck of an unidentified 1722 Galleon

Plus
any further wrecks located in the Licensed Dive Areas.
www.openwaters.biz
www.rsoperations.com
21
 Shipwrecks in
Ecuadorian Waters

RS OPERATIONS, LLC
ESSCAR, S.A.
INCIAR, S.A.
909 Mossville Road
Peoria, IL 61615
Tel: (309)-683-3796
Email: inquiries@rsoperations.com
Web: http://www.rsoperations.com

22
 Map of Ecuador Shipwrecks Map of Ecuador Shipwrecks

1. CLARIUS 1. CLARIUS
2. BANKS of SARDINAS – Various Wrecks 2. BANKS of SARDINAS – Various Wrecks
3. ST NICHOLAS 3. ST NICHOLAS
4. GALERA 4. GALERA
5. CABO SAN FRANCISCO 5. CABO SAN FRANCISCO
6. CAPITANA 6. CAPITANA
7. UNIDENTIFIED 1722 GALLEON 7. UNIDENTIFIED 1722 GALLEON

23 23
 The South Sea Expeditions
The discovery of the New World by Christopher Columbus was a
turning point in world history. His discovery ushered in an age of
exploration and conquest that made Spain the most powerful
country in the world. The flow of silver, gold and precious stones
that started out as a trickle, became a torrent that brought about an
economic revival throughout all of Europe.
The west coast of South America was one of Spain’s richest
possessions. What was once the Vice-Royalty of Peru is today the
countries of Chile, Bolivia, Peru, Ecuador, Colombia and Venezuela.
Throughout the colonial period the Spaniards located and exploited
rich silver and gold mines throughout the Andes Mountains. These
sources were so rich that various mints were established over the
centuries for the production of coinage. Mints at Lima, Cuzco and
Potosi produced coinage that became the national currency for
many nations of the world, including the American colonies and
eventually the early United States.
As these sources of precious metals were mined, the treasure, in coin, ingot and jewellery form, was
loaded aboard ships of the “South Seas Armada”. These ships would travel the western coast of
South America to pick up and deliver goods to ports along the coast. The principal route taken by
these galleons would see them start at the south and stop at ports along the coast while making their
way to Panama for final delivery of all the treasure that had been collected form the mints and mines.
From there the treasure would be transported across the isthmus by mule train where it would be
picked up by the Tierra Firme Armada and shipped across the Atlantic to Spain.
Over the centuries hundreds of ships were lost along the west coast of South America as they sailed
the coast laden with treasure and other merchandise. The South Sea Expeditions project, working in
cooperation with the Government of Ecuador, will seek to locate and recover the treasure from a
number of these lost Spanish galleons.
24
The South Sea Expeditions
The discovery of the New World by Christopher Columbus was a
turning point in world history. His discovery ushered in an age of
exploration and conquest that made Spain the most powerful
country in the world. The flow of silver, gold and precious stones
that started out as a trickle, became a torrent that brought about an
economic revival throughout all of Europe.
The west coast of South America was one of Spain’s richest
possessions. What was once the Vice-Royalty of Peru is today the
countries of Chile, Bolivia, Peru, Ecuador, Colombia and Venezuela.
Throughout the colonial period the Spaniards located and exploited
rich silver and gold mines throughout the Andes Mountains. These
sources were so rich that various mints were established over the
centuries for the production of coinage. Mints at Lima, Cuzco and
Potosi produced coinage that became the national currency for
many nations of the world, including the American colonies and
eventually the early United States.
As these sources of precious metals were mined, the treasure, in coin, ingot and jewellery form, was
loaded aboard ships of the “South Seas Armada”. These ships would travel the western coast of
South America to pick up and deliver goods to ports along the coast. The principal route taken by
these galleons would see them start at the south and stop at ports along the coast while making their
way to Panama for final delivery of all the treasure that had been collected form the mints and mines.
From there the treasure would be transported across the isthmus by mule train where it would be
picked up by the Tierra Firme Armada and shipped across the Atlantic to Spain.
Over the centuries hundreds of ships were lost along the west coast of South America as they sailed
the coast laden with treasure and other merchandise. The South Sea Expeditions project, working in
cooperation with the Government of Ecuador, will seek to locate and recover the treasure from a
number of these lost Spanish galleons.
24
 Map showing the route taken by the galleons. Map showing the route taken by the galleons.

RS Operations, LLC working in cooperation with ESSCAR, INCIAR and the RS Operations, LLC working in cooperation with ESSCAR, INCIAR and the
government of Ecuador will seek to locate and recover the treasure from government of Ecuador will seek to locate and recover the treasure from
shipwrecks of the South Sea Armada that were lost along the coast. shipwrecks of the South Sea Armada that were lost along the coast.

In May 2004, the Government granted ESSCAR, SA an exclusive salvage permit covering In May 2004, the Government granted ESSCAR, SA an exclusive salvage permit covering
approximately 100 square nautical miles of ocean along the coast of the Esmeraldas province. Under approximately 100 square nautical miles of ocean along the coast of the Esmeraldas province. Under
the terms of this contract ESSCAR will be entitled to 50% of any and all materials that are found within the terms of this contract ESSCAR will be entitled to 50% of any and all materials that are found within
the concession area. the concession area.

Since then, similar permits have been granted to INCIAR. Since then, similar permits have been granted to INCIAR.

Throughout the course of this project RS Ops and the Project Partners will be working closely with a Throughout the course of this project RS Ops and the Project Partners will be working closely with a
number of different government ministries and institutions, including: number of different government ministries and institutions, including:
• Ministry of Culture • Ministry of Culture
• Ministry of Defense • Ministry of Defense
• Ecuadorian Army • Ecuadorian Army
• Ecuadorian Navy/Marines • Ecuadorian Navy/Marines
• Merchant Marine • Merchant Marine

RS Ops and the Project Partners look forward to working with these organizations and believe that RS Ops and the Project Partners look forward to working with these organizations and believe that
the South Sea Expeditions Project will serve as a model of cooperation between government the South Sea Expeditions Project will serve as a model of cooperation between government
agencies, academic institutions and a commercial enterprise. agencies, academic institutions and a commercial enterprise.

25 25
Spanish Galleon - Clarius Spanish Galleon - Clarius
Year Lost: 1594 Year Lost: 1594
Area of sinking: Esmeraldas, Ecuador Area of sinking: Esmeraldas, Ecuador
Cargo: Silver coins and gold bullion Cargo: Silver coins and gold bullion
Estimated Value: US$200,000,000 Estimated Value: US$200,000,000
Priority: HIGH Priority: HIGH
Under Contract: ESSCAR Under Contract: ESSCAR

The Spanish Galleon Clarius was a major ship in the South Sea Armada which operated for over 300
years along the west coast of South America. The principal route taken by the galleons of this fleet
would see them start at the south and stop at ports along the coast while making their way to Panama
for final delivery of all the treasure that had been collected from the mints and mines. From there the
treasure would be transported across the isthmus by mule train where it would be picked up by the
Tierra Firme Armada and shipped back to Spain.
The Spanish Galleon Clarius was a major ship in the South Sea Armada which operated for over 300
years along the west coast of South America. The principal route taken by the galleons of this fleet
would see them start at the south and stop at ports along the coast while making their way to Panama
for final delivery of all the treasure that had been collected from the mints and mines. From there the
treasure would be transported across the isthmus by mule train where it would be picked up by the
Tierra Firme Armada and shipped back to Spain.

The Clarius was lost in 1594 due to a navigational error and was quickly broken up and covered over The Clarius was lost in 1594 due to a navigational error and was quickly broken up and covered over
by the shifting sands of the Banks of Sardinas. The conditions found in this area prevented any kind by the shifting sands of the Banks of Sardinas. The conditions found in this area prevented any kind
of contemporary salvage efforts from taking place. of contemporary salvage efforts from taking place.

Modern map of the coast of Ecuador. Modern map of the coast of Ecuador.
The wreck of the Clarius lies within the boundaries of this map. The wreck of the Clarius lies within the boundaries of this map.

26 26
Ancient navigation chart from the “Hack Atlas” showing where the Ancient navigation chart from the “Hack Atlas” showing where the
Spanish Galleon Clarius was lost along the coast of Ecuador. Spanish Galleon Clarius was lost along the coast of Ecuador.

27 27
Banks of Sardinas
Year Lost: Various
Area of sinking: Esmeraldas, Ecuador
Cargo: Silver and gold coins and bullion
Number of Ships: 3-5
Estimated Value: US$700,000,000
Priority: HIGH
Under Contract: ESSCAR
This particular project also takes place in the Banks of Sardinas along the northern coast of Ecuador
and will coincide with the search for the Clarius. This project is based upon extensive historical
research. Below is an image from a map from an ancient navigation chart. This chart is one of
hundreds from a document called the Hack Atlas. This particular one mentions the loss of the Clarius
and references other ships lost in the same area.
One of the paragraphs states; “about the middle of this bay lyes another finale river that you
cannot see til you come near it, from the mouth of which comes shoals about 2 leagues into
the sea, which are very dangerous, on the which was cast away Phillipo Casto, a great pilot of
this sea in the ship Clarius in whome was aboundance of coined money & Plate in the year
1594, & many other ships of value have been lost since on these shoals”.
The Banks of Sardinas is a very treacherous area that has claimed many ships over the years. The
banks shift with each storm and the lunar tides can be especially strong. During winter months,
smaller fishermen who must handle nets manually, avoid this area due to the strong currents that
result from the outflow of these large rivers converging with the ocean. Currents during winter months
can be so strong that they’re unable to haul in nets full of fish and sometimes have their nets torn
away from them. Even during summer months these currents can occur and the fishermen have
learned to test the currents using a weighted line before deploying their nets.
One of the unidentified ships lost in this area is one of the “Naos de Oro” or Gold Ships. During
colonial times regular shipments of silver were made aboard the ships of the “Armada del Sur” or
Southern Fleet. These ships hauled huge quantities of silver and some gold from the immense silver
mine in Potosi to Panama. However, Ecuador did not produce much silver. The main metal mined
and shipped out of the port of Guayaquil was gold. As an added security precaution, this gold was
put on a separate ship that did not sail with the regular fleet from Peru; it sailed by itself at irregular
intervals to lessen the chance that pirates would learn of the shipment and try to intercept it. Locating
this Gold Ship is the primary objective of this phase of the project, however, as we methodically map
this area using advanced technology we will discover one or more valuable shipwrecks that are
known to have been lost in this area.
28
Banks of Sardinas
Year Lost: Various
Area of sinking: Esmeraldas, Ecuador
Cargo: Silver and gold coins and bullion
Number of Ships: 3-5
Estimated Value: US$700,000,000
Priority: HIGH
Under Contract: ESSCAR
This particular project also takes place in the Banks of Sardinas along the northern coast of Ecuador
and will coincide with the search for the Clarius. This project is based upon extensive historical
research. Below is an image from a map from an ancient navigation chart. This chart is one of
hundreds from a document called the Hack Atlas. This particular one mentions the loss of the Clarius
and references other ships lost in the same area.
One of the paragraphs states; “about the middle of this bay lyes another finale river that you
cannot see til you come near it, from the mouth of which comes shoals about 2 leagues into
the sea, which are very dangerous, on the which was cast away Phillipo Casto, a great pilot of
this sea in the ship Clarius in whome was aboundance of coined money & Plate in the year
1594, & many other ships of value have been lost since on these shoals”.
The Banks of Sardinas is a very treacherous area that has claimed many ships over the years. The
banks shift with each storm and the lunar tides can be especially strong. During winter months,
smaller fishermen who must handle nets manually, avoid this area due to the strong currents that
result from the outflow of these large rivers converging with the ocean. Currents during winter months
can be so strong that they’re unable to haul in nets full of fish and sometimes have their nets torn
away from them. Even during summer months these currents can occur and the fishermen have
learned to test the currents using a weighted line before deploying their nets.
One of the unidentified ships lost in this area is one of the “Naos de Oro” or Gold Ships. During
colonial times regular shipments of silver were made aboard the ships of the “Armada del Sur” or
Southern Fleet. These ships hauled huge quantities of silver and some gold from the immense silver
mine in Potosi to Panama. However, Ecuador did not produce much silver. The main metal mined
and shipped out of the port of Guayaquil was gold. As an added security precaution, this gold was
put on a separate ship that did not sail with the regular fleet from Peru; it sailed by itself at irregular
intervals to lessen the chance that pirates would learn of the shipment and try to intercept it. Locating
this Gold Ship is the primary objective of this phase of the project, however, as we methodically map
this area using advanced technology we will discover one or more valuable shipwrecks that are
known to have been lost in this area.
28
Spanish Galleon - St Nicholas Spanish Galleon - St Nicholas
Year Lost: 1681 Year Lost: 1681
Area of sinking: Esmeraldas, Ecuador Area of sinking: Esmeraldas, Ecuador
Cargo: Silver and gold coins and bullion Cargo: Silver and gold coins and bullion
Estimated Value: US$100,000,000 Estimated Value: US$100,000,000
Priority: MEDIUM Priority: MEDIUM
Under Contract: ESSCAR Under Contract: ESSCAR

In the year 1681 a fleet of pirates attacked and sacked the city of Guayaquil, Ecuador. At that time a Gold
Ship was being loaded when word came that pirates were on their way. The gold was immediately taken
ashore and stored in a nearby fort. The pirates then captured this fort and the gold during the attack. Once
the pirates had departed the area the Spanish sent a small fleet of ships to capture the pirates and recover
the treasure taken from Guayaquil.
In the year 1681 a fleet of pirates attacked and sacked the city of Guayaquil, Ecuador. At that time a Gold
Ship was being loaded when word came that pirates were on their way. The gold was immediately taken
ashore and stored in a nearby fort. The pirates then captured this fort and the gold during the attack. Once
the pirates had departed the area the Spanish sent a small fleet of ships to capture the pirates and recover
the treasure taken from Guayaquil.

The pirate fleet was located in the area of Esmeraldas and a battle ensued. During the battle a Spanish The pirate fleet was located in the area of Esmeraldas and a battle ensued. During the battle a Spanish
warship called the St. Nicholas, and two pirate ships were lost in the area of the Atacames Shallows. warship called the St. Nicholas, and two pirate ships were lost in the area of the Atacames Shallows.
Efforts will focus on recovering treasure from the pirate ships lost during that battle. Efforts will focus on recovering treasure from the pirate ships lost during that battle.

The Atacames Shallows where the battle took place. The Atacames Shallows where the battle took place.

29 29
Spanish Galleon - Galera Spanish Galleon - Galera
Year Lost: 1543 Year Lost: 1543
Area of sinking: Esmeraldas, Ecuador Area of sinking: Esmeraldas, Ecuador
Cargo: Gold and silver bullion, Indian artifacts Cargo: Gold and silver bullion, Indian artifacts
Estimated Value: US$150,000,000 Estimated Value: US$150,000,000
Priority: HIGH Priority: HIGH
Under Contract: ESSCAR Under Contract: ESSCAR

During the years after Pizzaro’s conquest of South America the Spaniards relentlessly exploited the Indian
population and enslaved them to work the silver and gold deposits in the Andes Mountains. Throughout this
period the “conquistadores” regularly sent shipments of treasure to Panama as payment to the King of Spain.
One of the ships from this early period was lost in the Esmeraldas area. Historical research performed by
Robert Marx indicates that this particular ship was lost off Punta Galera, which is shown on the map below
and was the first ship lost by Pizzaro around 1543.
During the years after Pizzaro’s conquest of South America the Spaniards relentlessly exploited the Indian
population and enslaved them to work the silver and gold deposits in the Andes Mountains. Throughout this
period the “conquistadores” regularly sent shipments of treasure to Panama as payment to the King of Spain.
One of the ships from this early period was lost in the Esmeraldas area. Historical research performed by
Robert Marx indicates that this particular ship was lost off Punta Galera, which is shown on the map below
and was the first ship lost by Pizzaro around 1543.

Navigation chart showing the area where Navigation chart showing the area where
one of Pizzaro’s ships was lost. one of Pizzaro’s ships was lost.

The name of the point of land, Galera, is used on the earliest maps of this area that pre-date 1600. A galera The name of the point of land, Galera, is used on the earliest maps of this area that pre-date 1600. A galera
was a type of medium sized ship that was used before 1580 and was the type of ship used by Pizzaro during was a type of medium sized ship that was used before 1580 and was the type of ship used by Pizzaro during
his conquest of South America. The point is believed to be named for the ship lost off it in 1543 as discussed his conquest of South America. The point is believed to be named for the ship lost off it in 1543 as discussed
above. above.

Additional evidence that one of Pizzaro’s ships was lost at Punta Galera comes from artifacts already
recovered by fishermen. The silver and gold objects brought up in a net are strong evidence of an important
wreck in that area; evidence that supports the historical and geographical information that has been gathered
to date. RS Ops has already conducted magnetometer and side scan sonar searches of this area and have
located targets for excavation.
30
Additional evidence that one of Pizzaro’s ships was lost at Punta Galera comes from artifacts already
recovered by fishermen. The silver and gold objects brought up in a net are strong evidence of an important
wreck in that area; evidence that supports the historical and geographical information that has been gathered
to date. RS Ops has already conducted magnetometer and side scan sonar searches of this area and have
located targets for excavation.
30
Spanish Galleon - Cabo San Francisco Spanish Galleon - Cabo San Francisco
Year Lost: 1690 Year Lost: 1690
Area of sinking: Esmeraldas, Ecuador Area of sinking: Esmeraldas, Ecuador
Cargo: Silver and gold coins and bullion Cargo: Silver and gold coins and bullion
Estimated Value: US$200,000,000 Estimated Value: US$200,000,000
Priority: HIGH Priority: HIGH
Under Contract: INCIAR Under Contract: INCIAR

Based upon research provided by Robert Marx, a Spanish galleon named San Francisco was lost while
sailing north to Panama with a large shipment of treasure. Due to a navigational error and poor visibility she
sailed into Cabo San Francisco and was broken to pieces against the cliffs. Historical records indicate the
San Francisco was a 1,200 ton ship and armed with 48 bronze cannons. That is, she was an important and
significant ship. Records also indicate that she was lost with treasure valued at 40,000,000 pesos.
Based upon research provided by Robert Marx, a Spanish galleon named San Francisco was lost while
sailing north to Panama with a large shipment of treasure. Due to a navigational error and poor visibility she
sailed into Cabo San Francisco and was broken to pieces against the cliffs. Historical records indicate the
San Francisco was a 1,200 ton ship and armed with 48 bronze cannons. That is, she was an important and
significant ship. Records also indicate that she was lost with treasure valued at 40,000,000 pesos.

Slightly south of this point is also the San Francisco River and the small fishing village of San Francisco.
After questioning the local people of this town, representatives of RS Ops believe that survivors of the
shipwreck founded the town. They believe that the fact that this ship was wrecked against Cape San
Francisco gave this particular landmark its name. Local fishermen have reportedly brought up ceramics in
their nets while coins and other artifacts are occasionally found on the beach.
Slightly south of this point is also the San Francisco River and the small fishing village of San Francisco.
After questioning the local people of this town, representatives of RS Ops believe that survivors of the
shipwreck founded the town. They believe that the fact that this ship was wrecked against Cape San
Francisco gave this particular landmark its name. Local fishermen have reportedly brought up ceramics in
their nets while coins and other artifacts are occasionally found on the beach.

Nautical chart of Cape San Francisco. Nautical chart of Cape San Francisco.

31 31
Spanish Galleon - Capitana
Year Lost: 1654
Area of sinking: Chanduy, Ecuador
Cargo: Silver and gold bullion
Estimated Value: US$75,000,000
Priority: MEDIUM
Under Contract: INCIAR
In 1644 the largest galleon built up until this time was launched from a shipyard in Guayaquil and little did
anyone realize at that time that she would end her career ten years later wrecked on a reef with one of the
biggest treasures ever lost in South America. She was the 1,150 ton galleon Jesus Maria de la Pura y Limpia
Concepcion de Nuestra Senora. At the time of her loss she was called the CAPITANA as she was the
flagship of the Armada of the South Seas.
On 12 October 1654 four galleons comprising the Armada of the South Seas set sail from Callao for Panama
with several years' accumulation of treasure from the mines of South America. Captain General Don
Francisco de Sosa commanded the CAPITANA, carrying more treasure than the other three galleons
th
combined. During a moonless rainy night on the 27 of October, the CAPITANA wrecked on Chanduy Reef,
near the mouth of Ecuador's Guayaquil River. After leaving Callao she passed Cabo Blanco, Peru and set a
direct course for Isla de Plata, the normal route taken by these armadas. Due to faulty navigation or currents,
she struck bottom and went to pieces quickly with almost everyone aboard perishing. Within days of the
disaster divers were busy salvaging what they could before shifting sands covered the site. By January 1655
it is estimated they had recovered around 2,600,000 pesos in treasure and other cargo.
Confusion and controversy dominated the loss of this vessel from the beginning until the end. Two days
before she sailed from Callao, the Viceroy of Peru wrote to the King of Spain claiming the CAPITANA had
3,122,000 pesos (a PESO was the equivalent of an ounce of silver) and on this same day the head of
Customs in Callao also writing to the King stated that she carried 3,985,000 pesos. Keep in mind that this
was registered treasure. It was later determined during a long drawn out investigation conducted in Lima
that she carried at least 10,000,000 pesos in registered and contraband treasure. Of the first 386 silver bars
(each weighing 80-pounds) recovered during the first week after the disaster, only 68 were on the ship’s
cargo manifest, which means the rest were contraband. No one can ever say just how much treasure was on
this ship. Considering that the ATOCHA of Mel Fisher fame lost in 1622 in the Florida Keys only carried
750,000 pesos, one can easily see how rich this ship was.
The divers had great success in recovering 40 of the 44 bronze cannon on the CAPITANA. (She normally
carried 66 to 70 bronze cannon but on this voyage she was so heavily burdened with treasure she carried
fewer guns.) The wreck site was in four and a half fathoms at low tide and six at high tide and the underwater
visibility was excellent which made the diving easy compared with other wrecks. However the shifting sands
covered over the site before the salvage could be completed. Notwithstanding this a letter written in 1661
from the President of the Audencia of Quito states that he believes that between six and seven million pesos
still lies inside the CAPITANA.
An expedition sent to the site the following year failed to find any part of the wreck. The same fate occurred
again in 1696 and 1714 when salvors met the same fate. The general location was never lost, as, over the
years, storms threw coins and other objects from the CAPITANA on nearby beaches and the locals knew
they were coming from a nearby wreck.
32
Spanish Galleon - Capitana
Year Lost: 1654
Area of sinking: Chanduy, Ecuador
Cargo: Silver and gold bullion
Estimated Value: US$75,000,000
Priority: MEDIUM
Under Contract: INCIAR
In 1644 the largest galleon built up until this time was launched from a shipyard in Guayaquil and little did
anyone realize at that time that she would end her career ten years later wrecked on a reef with one of the
biggest treasures ever lost in South America. She was the 1,150 ton galleon Jesus Maria de la Pura y Limpia
Concepcion de Nuestra Senora. At the time of her loss she was called the CAPITANA as she was the
flagship of the Armada of the South Seas.
On 12 October 1654 four galleons comprising the Armada of the South Seas set sail from Callao for Panama
with several years' accumulation of treasure from the mines of South America. Captain General Don
Francisco de Sosa commanded the CAPITANA, carrying more treasure than the other three galleons
th
combined. During a moonless rainy night on the 27 of October, the CAPITANA wrecked on Chanduy Reef,
near the mouth of Ecuador's Guayaquil River. After leaving Callao she passed Cabo Blanco, Peru and set a
direct course for Isla de Plata, the normal route taken by these armadas. Due to faulty navigation or currents,
she struck bottom and went to pieces quickly with almost everyone aboard perishing. Within days of the
disaster divers were busy salvaging what they could before shifting sands covered the site. By January 1655
it is estimated they had recovered around 2,600,000 pesos in treasure and other cargo.
Confusion and controversy dominated the loss of this vessel from the beginning until the end. Two days
before she sailed from Callao, the Viceroy of Peru wrote to the King of Spain claiming the CAPITANA had
3,122,000 pesos (a PESO was the equivalent of an ounce of silver) and on this same day the head of
Customs in Callao also writing to the King stated that she carried 3,985,000 pesos. Keep in mind that this
was registered treasure. It was later determined during a long drawn out investigation conducted in Lima
that she carried at least 10,000,000 pesos in registered and contraband treasure. Of the first 386 silver bars
(each weighing 80-pounds) recovered during the first week after the disaster, only 68 were on the ship’s
cargo manifest, which means the rest were contraband. No one can ever say just how much treasure was on
this ship. Considering that the ATOCHA of Mel Fisher fame lost in 1622 in the Florida Keys only carried
750,000 pesos, one can easily see how rich this ship was.
The divers had great success in recovering 40 of the 44 bronze cannon on the CAPITANA. (She normally
carried 66 to 70 bronze cannon but on this voyage she was so heavily burdened with treasure she carried
fewer guns.) The wreck site was in four and a half fathoms at low tide and six at high tide and the underwater
visibility was excellent which made the diving easy compared with other wrecks. However the shifting sands
covered over the site before the salvage could be completed. Notwithstanding this a letter written in 1661
from the President of the Audencia of Quito states that he believes that between six and seven million pesos
still lies inside the CAPITANA.
An expedition sent to the site the following year failed to find any part of the wreck. The same fate occurred
again in 1696 and 1714 when salvors met the same fate. The general location was never lost, as, over the
years, storms threw coins and other objects from the CAPITANA on nearby beaches and the locals knew
they were coming from a nearby wreck.
32
In 1995 two rival salvage companies worked on a part of the CAPITANA after it was uncovered by a storm
and located by local spear fishermen. Accounts vary but it is believed they recovered around 25,000 to
35,000 silver pieces of eight and an unknown number of large silver bars and gold disks and ingots before
the Ecuadorian Government shut down the operations due to accusations that the company was stealing
treasure. Since that time some local divers using hand-held metal detectors have located small numbers of
coins and other treasure – one of which divers worked with the salvors in 1997 and will work with us when
we start work on the site.
What treasure is left on the site is the question we all would like to know. The only reasonable answer is that
we believe that there is enough still on the site to warrant the financial expenditure and have a very good
chance of making a big find. This is the feeling of Robert Marx who has been working on shipwrecks for over
55 years in more than 60 nations worldwide.
Nautical chart of Chanduy where the CAPITANA is located.
33
In 1995 two rival salvage companies worked on a part of the CAPITANA after it was uncovered by a storm
and located by local spear fishermen. Accounts vary but it is believed they recovered around 25,000 to
35,000 silver pieces of eight and an unknown number of large silver bars and gold disks and ingots before
the Ecuadorian Government shut down the operations due to accusations that the company was stealing
treasure. Since that time some local divers using hand-held metal detectors have located small numbers of
coins and other treasure – one of which divers worked with the salvors in 1997 and will work with us when
we start work on the site.
What treasure is left on the site is the question we all would like to know. The only reasonable answer is that
we believe that there is enough still on the site to warrant the financial expenditure and have a very good
chance of making a big find. This is the feeling of Robert Marx who has been working on shipwrecks for over
55 years in more than 60 nations worldwide.
Nautical chart of Chanduy where the CAPITANA is located.
33
1722 Galleon 1722 Galleon
Year Lost: 1722 Year Lost: 1722
Area of sinking: Chanduy, Ecuador Area of sinking: Chanduy, Ecuador
Cargo: Silver and gold coins and bullion Cargo: Silver and gold coins and bullion
Estimated Value: US$100,000,000 Estimated Value: US$100,000,000
Priority: MEDIUM Priority: MEDIUM
Under Contract: INCIAR Under Contract: INCIAR

Robert Marx has been doing extensive research on wrecks in this area of the Ecuadorian coast. At this time
there is a specific reference that another galleon of the Armada of the South Seas was lost “in the same
place as the 1654 CAPITANA” and although this rich ship has not been found to date, this event is confirmed
by coins and artifacts from that period being found on the beach in the vicinity of Chanduy. RS Ops believes
there is a strong possibility of locating this ship during work on the Capitana site.
Robert Marx has been doing extensive research on wrecks in this area of the Ecuadorian coast. At this time
there is a specific reference that another galleon of the Armada of the South Seas was lost “in the same
place as the 1654 CAPITANA” and although this rich ship has not been found to date, this event is confirmed
by coins and artifacts from that period being found on the beach in the vicinity of Chanduy. RS Ops believes
there is a strong possibility of locating this ship during work on the Capitana site.

Historical reports of this wreck state that when a salvage team arrived to begin recovering the treasure they Historical reports of this wreck state that when a salvage team arrived to begin recovering the treasure they
had little success because the ship had broken up and been mostly swallowed by the sand. We believe that had little success because the ship had broken up and been mostly swallowed by the sand. We believe that
most of the treasure is still waiting to be recovered. most of the treasure is still waiting to be recovered.

We also have vague references of one other rich galleon lost in this same general area. At this time the We also have vague references of one other rich galleon lost in this same general area. At this time the
information discovered to date is not conclusive but our research team is continuing its investigations in the information discovered to date is not conclusive but our research team is continuing its investigations in the
archives. archives.

Gold and silver Inca artifacts recovered from Punta Galera. Gold and silver Inca artifacts recovered from Punta Galera.
These artifacts are currently in the possession of RSOPS. These artifacts are currently in the possession of RSOPS.

34 34
 The Hack Atlas
The Hack Atlas is a fascinating document with a very interesting history. It is essentially a large book
comprised of navigation charts of the “South Sea”. This was the name given to the southern Pacific Ocean
off the west coast of Central and South America by the early Spanish explorers.
The history of the Hack Atlas begins in 1680. It was in that year that the English Captain Bartholomew
Sharpe and a band of privateers landed on the Caribbean side of Panama. Upon their landing they
immediately set off across the isthmus of Panama to the Pacific side of the continent.
After their arrival on the coast, they immediately sought to seize 5 ships that were at anchor in the bay. A
fierce battle ensued which saw Captain Sharpe and his men end up victorious and in command of all five
vessels.
For the next year Captain Sharpe and his men sailed up and down the coast plundering towns and capturing
numerous ships. One of the first ships that they captured, the San Rosario, yielded an unexpected prize. It
was a “great book” of sea charts and maps with precise descriptions of the ports, rivers, shoals, capes and
coasts of the South Sea. It had been developed by the Spanish over many years to help them navigate the
western coast of central and south America and was regarded by them as top secret. It was a very valuable
navigation aid that greatly helped Sharpe and his men in their plundering.
Upon the return of Captain Sharpe to England, this “great book” was presented to His Majesty, King Charles
II. Recognizing its value King Charles II ordered that the entire document be translated to English. The
atlases were eventually translated to English by William Hack and became known as the Hack Atlas.
However, only a few translations were made, the Hack Atlas was never published commercially.
The Hack Atlas is a very large document with many different maps and charts. The majority of the charts
show details of the coasts or contain sailing instructions for entering various ports along the coast. It also
details such things as locations for taking on fresh water or places for careening a ship for cleaning. Also
found in the Atlas are numerous warning charts that describe the locations where ships were lost.
Today there are only four known copies of this document in English. The original Spanish version is still
preserved in the records of the British Admiralty in the British Museum.
Spanish Derroteros
From the earliest days of the Spanish conquest of the New World navigators on board ships at sea were
required to keep records of their observations during each voyage. Over time these records were compiled
to build a map of the New World including its coastlines, harbors, sailing routes and any other relevant
information. Known as “Derroteros”, these documents were essentially atlases with hand drawn charts of
various sections of coastline. Different Derroteros covered different oceans and areas of the world.
For the South Sea Expeditions project we’re using not only the Hack Atlas, but also Derroteros that cover the
entire west coast of North and South America from Southern California in the north to Chile in the south. We
have also acquired numerous different Derroteros produced by different authors over the centuries. The
Derroteros in our possession range from 1601 to 1768 and provide a wealth of shipwreck information that
we’re using for this project.
35
The Hack Atlas
The Hack Atlas is a fascinating document with a very interesting history. It is essentially a large book
comprised of navigation charts of the “South Sea”. This was the name given to the southern Pacific Ocean
off the west coast of Central and South America by the early Spanish explorers.
The history of the Hack Atlas begins in 1680. It was in that year that the English Captain Bartholomew
Sharpe and a band of privateers landed on the Caribbean side of Panama. Upon their landing they
immediately set off across the isthmus of Panama to the Pacific side of the continent.
After their arrival on the coast, they immediately sought to seize 5 ships that were at anchor in the bay. A
fierce battle ensued which saw Captain Sharpe and his men end up victorious and in command of all five
vessels.
For the next year Captain Sharpe and his men sailed up and down the coast plundering towns and capturing
numerous ships. One of the first ships that they captured, the San Rosario, yielded an unexpected prize. It
was a “great book” of sea charts and maps with precise descriptions of the ports, rivers, shoals, capes and
coasts of the South Sea. It had been developed by the Spanish over many years to help them navigate the
western coast of central and south America and was regarded by them as top secret. It was a very valuable
navigation aid that greatly helped Sharpe and his men in their plundering.
Upon the return of Captain Sharpe to England, this “great book” was presented to His Majesty, King Charles
II. Recognizing its value King Charles II ordered that the entire document be translated to English. The
atlases were eventually translated to English by William Hack and became known as the Hack Atlas.
However, only a few translations were made, the Hack Atlas was never published commercially.
The Hack Atlas is a very large document with many different maps and charts. The majority of the charts
show details of the coasts or contain sailing instructions for entering various ports along the coast. It also
details such things as locations for taking on fresh water or places for careening a ship for cleaning. Also
found in the Atlas are numerous warning charts that describe the locations where ships were lost.
Today there are only four known copies of this document in English. The original Spanish version is still
preserved in the records of the British Admiralty in the British Museum.
Spanish Derroteros
From the earliest days of the Spanish conquest of the New World navigators on board ships at sea were
required to keep records of their observations during each voyage. Over time these records were compiled
to build a map of the New World including its coastlines, harbors, sailing routes and any other relevant
information. Known as “Derroteros”, these documents were essentially atlases with hand drawn charts of
various sections of coastline. Different Derroteros covered different oceans and areas of the world.
For the South Sea Expeditions project we’re using not only the Hack Atlas, but also Derroteros that cover the
entire west coast of North and South America from Southern California in the north to Chile in the south. We
have also acquired numerous different Derroteros produced by different authors over the centuries. The
Derroteros in our possession range from 1601 to 1768 and provide a wealth of shipwreck information that
we’re using for this project.
35
 Sample charts from the Hack Atlas
This is an example of the numerous towns and ports The notation at the bottom of the map reads; "On this
shoald was cast away the Admiral of the King of Spain in
depicted in the Hack Atlas.
the year 1631. In her was aboundance of Treasure, thee
was lost on her voyage from Lima to Panama."
This map is an enlarged view of the previous map. You This map describes two separate ships, the Rosario and
will notice that it has the same notation about the ship the Gonzalo Beltran. Both of these ships carried treasure
lost in 1631. and were lost close to shore.
Showing the port of Manta on the coast of Ecuador, it The Rock of Colanche; "On which was cast away in the
also mentions a ship that was lost which carried 30 year 1644 a very rich ship having many millions of
millions in Royals and 37 cannons. It also states that money on board and several copper guns."
many more ships have been lost in the same area.
"In the year 1681 Captain Sharpe gave chase to a ship "Take notice that on these shoulds of the River Zana
in this sea and thee was lost on the fowle ground near S. Hernando Gallegos was cast away in the ship Diego of
Clara in her 100,000 pieces of eight besides Plate and the Cappan Malchor of Segura in the year 1599 and in
other goods of value." the ship was aboundance of treasure."
Today there are only four known copies of this document in English. The original Spanish
version is still preserved in the records of the British Admiralty in the British Museum.
RS Operations, LLC has a copy of the entire atlas on microfilm.
Sample charts from the Hack Atlas
This is an example of the numerous towns and ports The notation at the bottom of the map reads; "On this
shoald was cast away the Admiral of the King of Spain in
depicted in the Hack Atlas.
the year 1631. In her was aboundance of Treasure, thee
was lost on her voyage from Lima to Panama."
This map is an enlarged view of the previous map. You This map describes two separate ships, the Rosario and
will notice that it has the same notation about the ship the Gonzalo Beltran. Both of these ships carried treasure
lost in 1631. and were lost close to shore.
Showing the port of Manta on the coast of Ecuador, it The Rock of Colanche; "On which was cast away in the
also mentions a ship that was lost which carried 30 year 1644 a very rich ship having many millions of
millions in Royals and 37 cannons. It also states that money on board and several copper guns."
many more ships have been lost in the same area.
"In the year 1681 Captain Sharpe gave chase to a ship "Take notice that on these shoulds of the River Zana
in this sea and thee was lost on the fowle ground near S. Hernando Gallegos was cast away in the ship Diego of
Clara in her 100,000 pieces of eight besides Plate and the Cappan Malchor of Segura in the year 1599 and in
other goods of value." the ship was aboundance of treasure."
Today there are only four known copies of this document in English. The original Spanish
version is still preserved in the records of the British Admiralty in the British Museum.
36 RS Operations, LLC has a copy of the entire atlas on microfilm. 36
Below is an example of one chart and its references to shipwrecks and treasure. The most important Below is an example of one chart and its references to shipwrecks and treasure. The most important
reference on this map states; “In this ship was 30 millions of Royals & 37 pieces of ordinance & on the reference on this map states; “In this ship was 30 millions of Royals & 37 pieces of ordinance & on the
same rocks hath been lost many more ships.” same rocks hath been lost many more ships.”

Ancient navigation chart showing the port of Manta Ancient navigation chart showing the port of Manta
and locations of shipwrecks and treasure. and locations of shipwrecks and treasure.

Ancient charts, such as the one shown below mention the shipwreck lost in this area “which was cast away Ancient charts, such as the one shown below mention the shipwreck lost in this area “which was cast away
in the year 1644, a very rich ship having many millions of money on board & several copper guns”. in the year 1644, a very rich ship having many millions of money on board & several copper guns”.

Ancient navigation chart which references to the shipwreck located in this area. Ancient navigation chart which references to the shipwreck located in this area.

37 37
Examples of Previous Returns Examples of Previous Returns

There have been countless dozens of successful salvage operations around the world. There have been countless dozens of successful salvage operations around the world.
Unfortunately, in most cases, specific details relating to financial returns where reference sources Unfortunately, in most cases, specific details relating to financial returns where reference sources
are able to be quoted, are limited. This is owing to confidentiality agreements in place with those are able to be quoted, are limited. This is owing to confidentiality agreements in place with those
concerned. concerned.

Below are some examples of modern day shipwreck discoveries as a result of treasure hunters Below are some examples of modern day shipwreck discoveries as a result of treasure hunters
setting out to salvage specific wreck sites. setting out to salvage specific wreck sites.

NEUSTRA SENORA DE ATOCHA NEUSTRA SENORA DE ATOCHA

(Sept 5,1622) (Sept 5,1622)
Spanish Galleon - 600 tons Spanish Galleon - 600 tons
Location: off Marquesas Keys, Florida U.S. Location: off Marquesas Keys, Florida U.S.
Cargo: gold and silver in excess of 1 million pesos Cargo: gold and silver in excess of 1 million pesos
Cargo valued today in excess of US$500 million Cargo valued today in excess of US$500 million
Source: “Encyclopedia of Sunken Treasure” Source: “Encyclopedia of Sunken Treasure”

HAITI WRECK HAITI WRECK

(C.1600) (C.1600)
Location: Off Wahoo Beach/ Haiti Location: Off Wahoo Beach/ Haiti
Cargo: suggested gold valued at approx US$1.5 billion Cargo: suggested gold valued at approx US$1.5 billion

CENTRAL AMERICA CENTRAL AMERICA

(Sept 12,1857) (Sept 12,1857)
Paddle Steamer - 2141 Tons Paddle Steamer - 2141 Tons
Location: off the coast of Cuba Location: off the coast of Cuba
Cargo: gold bars and coins valued at approx US$750 million Cargo: gold bars and coins valued at approx US$750 million
Source: “Atlas of Shipwrecks & Treasure” – Nigel Pickford Source: “Atlas of Shipwrecks & Treasure” – Nigel Pickford

SAN JOSE SAN JOSE

(June 8,1708) (June 8,1708)
Location: 19 km South of Cartegna, Colombia, near Isia de Baru Location: 19 km South of Cartegna, Colombia, near Isia de Baru
Cargo: emeralds, gold and silver specie - valued today up to US$10 billion Cargo: emeralds, gold and silver specie - valued today up to US$10 billion
Source: “Hunting for Treasure” – C Charley Source: “Hunting for Treasure” – C Charley

NEUSTRA SENORA DE LA CONCEPCION NEUSTRA SENORA DE LA CONCEPCION

(Sept 20,1638)
Location: wrecked on Saipan's Southwest Reef, Silver Shoals, North of Hispaniola
Cargo: 1200 chests of treasure and precious goods netted
the Salvors over US$70 million
Source: “Treasure of the Conception” - Mathers
(Sept 20,1638)
Location: wrecked on Saipan's Southwest Reef, Silver Shoals, North of Hispaniola
Cargo: 1200 chests of treasure and precious goods netted
the Salvors over US$70 million
Source: “Treasure of the Conception” - Mathers

JOHN BARRY JOHN BARRY

(Aug 28,1944) (Aug 28,1944)
Location: wrecked off the coast of Saudi Arabia, Oman Cargo: Location: wrecked off the coast of Saudi Arabia, Oman Cargo:
3 million Saudi Arabian Ryals, tons of silver bars valued at 3 million Saudi Arabian Ryals, tons of silver bars valued at
US$300 million US$300 million
Source: “International Express” – Keith Jessop Source: “International Express” – Keith Jessop

38 38
Treasure
There are many alluring images that come to mind when one contemplates the shipwreck salvage
industry but none are more dazzling that that of treasure. Items of value found on wrecks vary across
a surprisingly wide spectrum. We can categorize them into several broad groups which are coins,
bullion, gems and jewellery, religious artifacts, pottery, miscellaneous items, and ship’s hardware.
COINS:
Coins are typically silver or gold, though occasionally other types such as copper, tin and electrum can
be found. The most common coin on Spanish wrecks is the “piece of eight” or “eight-reales” so-called
for it was often trimmed into as many as eight bits in order to provide change. Earlier coins were
crudely worked macuquinas or “cobs”. “These were hand made coins fashioned by hammer and
scissors from rolls of silver, resulting in irregular shapes and partially obscured markings. Spanish
Galleons going to Asia would have up to two million silver pesos, a measurement conforming to 11
eighths of an ounce, registered on the manifest on board but typically carried far more than the official
count due to the high profits available in trade with the New World. Gold coins were called “escudos”.
The values vary depending on the condition of the coin, the date and rarity, the design, the process by
which it was minted, the fame of the ship on which it was found etc. Gold retains its elemental
properties, whereas silver suffers from conversion to silver sulphide to varying degrees. More
common silver coins command prices of between US$80 and US$250. Some rarer issues in good
condition can command prices in the thousands of dollars. Spanish gold coins range from US$500 to
many thousands of dollars.
About 20 of these Spanish Eight
"Royals" recovered from a Manila Spanish piece of Eight
Galleon.
Spanish silver Pieces of Eight, dated Gold coins and other objects
1732 and 1733. recovered from one of the 1715
shipwrecks.
39
Treasure
There are many alluring images that come to mind when one contemplates the shipwreck salvage
industry but none are more dazzling that that of treasure. Items of value found on wrecks vary across
a surprisingly wide spectrum. We can categorize them into several broad groups which are coins,
bullion, gems and jewellery, religious artifacts, pottery, miscellaneous items, and ship’s hardware.
COINS:
Coins are typically silver or gold, though occasionally other types such as copper, tin and electrum can
be found. The most common coin on Spanish wrecks is the “piece of eight” or “eight-reales” so-called
for it was often trimmed into as many as eight bits in order to provide change. Earlier coins were
crudely worked macuquinas or “cobs”. “These were hand made coins fashioned by hammer and
scissors from rolls of silver, resulting in irregular shapes and partially obscured markings. Spanish
Galleons going to Asia would have up to two million silver pesos, a measurement conforming to 11
eighths of an ounce, registered on the manifest on board but typically carried far more than the official
count due to the high profits available in trade with the New World. Gold coins were called “escudos”.
The values vary depending on the condition of the coin, the date and rarity, the design, the process by
which it was minted, the fame of the ship on which it was found etc. Gold retains its elemental
properties, whereas silver suffers from conversion to silver sulphide to varying degrees. More
common silver coins command prices of between US$80 and US$250. Some rarer issues in good
condition can command prices in the thousands of dollars. Spanish gold coins range from US$500 to
many thousands of dollars.
About 20 of these Spanish Eight
"Royals" recovered from a Manila Spanish piece of Eight
Galleon.
Spanish silver Pieces of Eight, dated Gold coins and other objects
1732 and 1733. recovered from one of the 1715
shipwrecks.
39
Treasure
BULLION:
Bullion comes in many shapes and sizes from small ingots to very large bars
sometimes weighing more than 35 kilos. Prices are always at a premium to the bullion
value contained in the object but for rarer types such as the finger bars or those with
rare or unique designs stamped on them, prices can be several times the value of the
bullion.
GEMSTONES and JEWELLERY:
Many types of gems can be found on wrecks. Emeralds from South
America were quite common on Spanish Galleons. Opals, pearls,
diamonds and rubies can also be found. Values of such precious
stones vary according to quality. It is when such stones are
combined with silver and gold into beautiful works of jewellery that
astonishing prices can be commanded at auction. Jewellery is the
most valuable item on a shipwreck. A small brooch or earring can
be worth thousands of dollars. Larger items of exquisite
workmanship can reach over one million dollars.
RELIGIOUS ARTIFACTS:
The most common such artifact was the cross and it is not
uncommon to find gold and jewelled crosses of consummate
workmanship on a shipwreck. Rosaries are also common. Crosses
and other religious items were often worn as ornaments. Such
items can be among the most valuable on a shipwreck.
POTTERY:
Galleons that traded with the Far East almost always carried very
large cargos of Chinese porcelain for sale to European markets.
Even the ceramics used for storage and utensils for the crew have
value in today`s markets. Unlike land-based archeological digs
which rarely yield any intact pieces, shipwreck sites often contain
very large numbers of porcelain and ceramics in excellent
condition. Values of pottery vary even more than coins. Porcelain
was shaped into not only plates, cups and saucers but also chess
and mahjong pieces, vases, statues, bottles, and all kinds of
objects.
40
Treasure
BULLION:
Bullion comes in many shapes and sizes from small ingots to very large bars
sometimes weighing more than 35 kilos. Prices are always at a premium to the bullion
value contained in the object but for rarer types such as the finger bars or those with
rare or unique designs stamped on them, prices can be several times the value of the
bullion.
GEMSTONES and JEWELLERY:
Many types of gems can be found on wrecks. Emeralds from South
America were quite common on Spanish Galleons. Opals, pearls,
diamonds and rubies can also be found. Values of such precious
stones vary according to quality. It is when such stones are
combined with silver and gold into beautiful works of jewellery that
astonishing prices can be commanded at auction. Jewellery is the
most valuable item on a shipwreck. A small brooch or earring can
be worth thousands of dollars. Larger items of exquisite
workmanship can reach over one million dollars.
RELIGIOUS ARTIFACTS:
The most common such artifact was the cross and it is not
uncommon to find gold and jewelled crosses of consummate
workmanship on a shipwreck. Rosaries are also common. Crosses
and other religious items were often worn as ornaments. Such
items can be among the most valuable on a shipwreck.
POTTERY:
Galleons that traded with the Far East almost always carried very
large cargos of Chinese porcelain for sale to European markets.
Even the ceramics used for storage and utensils for the crew have
value in today`s markets. Unlike land-based archeological digs
which rarely yield any intact pieces, shipwreck sites often contain
very large numbers of porcelain and ceramics in excellent
condition. Values of pottery vary even more than coins. Porcelain
was shaped into not only plates, cups and saucers but also chess
and mahjong pieces, vases, statues, bottles, and all kinds of
objects.
40
Treasure Treasure

Ming Dynasty porcelain with the blue and white designs are the most commonly known from the
Chinese but there are innumerable styles and designs. Even broken pieces and coral-encrusted items
often have value. Smaller common items from more recent centuries may go for one or two hundred
dollars while larger, rarer items can command tens of thousands of dollars. A recent auction in China
saw a small statue of a soldier go for US$120,000.
Ming Dynasty porcelain with the blue and white designs are the most commonly known from the
Chinese but there are innumerable styles and designs. Even broken pieces and coral-encrusted items
often have value. Smaller common items from more recent centuries may go for one or two hundred
dollars while larger, rarer items can command tens of thousands of dollars. A recent auction in China
saw a small statue of a soldier go for US$120,000.

SHIP HARDWARE and MICSCELLANY: SHIP HARDWARE and MICSCELLANY:

Mundane items such as pipes, ships tackle, clay jars, utensils, wine bottles
etc. can command surprisingly high prices at auctions. Sextants are a rare
find. In one recent auction, a bronze sextant went for US$500,000.
Cannons are also easily sold to collectors. Bronze cannons of more recent
centuries typically command more value than cast iron cannons that do
not retain their structure very well in salt water. A cannon in good condition
can go for US$20,000 or more.
Mundane items such as pipes, ships tackle, clay jars, utensils, wine bottles
etc. can command surprisingly high prices at auctions. Sextants are a rare
find. In one recent auction, a bronze sextant went for US$500,000.
Cannons are also easily sold to collectors. Bronze cannons of more recent
centuries typically command more value than cast iron cannons that do
not retain their structure very well in salt water. A cannon in good condition
can go for US$20,000 or more.

Everything is treasure!! This Everything is treasure!! This

bronze 16th century bronze 16th century
Astrolabe, the instrument Astrolabe, the instrument
used for finding latitude at used for finding latitude at
sea, is valued in excess of sea, is valued in excess of
$500,000. $500,000.

41 41
Examples of porcelain recently recovered from the Examples of porcelain recently recovered from the
‘Teksing’ wreck ‘Teksing’ wreck

42 42
Archaeological Survey
It is crucial that high archaeological standards are maintained throughout the Projects. Archaeological
records can be reproduced in the auction catalogue and often have an important effect on the success of the
marketing campaign to achieve the highest possible price.

The archaeological survey of the Projects is being overseen by Government officials to ensure their
endorsement during the sale process.

“We’re very fortunate to be in a position to acquire the rights to this incredibly rich area” (Scott
Heimdal – President of Operations).

We now intend to make a great success of the opportunities which are firmly in our grasp.

“Lattice fence pattern” dinner service of 144 place settings Blue and white deep dish c.1750
c.1750 173/4 in. (45cm) diameter
Sold 30.4.1986 in Amsterdam for D.fl. 812,000 (£219,460) Sold 28.4.86 in Amsterdam for D.fl. 104,400 (£28,217)

Group of Chinese gold ingots from a cache of 126, C.1750 Porcelain scattered on the sea-bed
18 shoe-shaped ingots at 2_ in. (5.5 cm) wide
108 rectangular ingots 3_ in. (8 cm) wide.
Sold 28.4.86 for a total of D.fl.4,365,080 (£1,179,751).Z

44
 Research Vessel Research Vessel

BEACON BEACON

Specifications Specifications

SIZE: 97' SIZE: 97'

YEAR AND BUILD: 1965 YEAR AND BUILD: 1965
LENGTH: 97' LENGTH: 97'
BEAM: 24' BEAM: 24'
DRAFT: 8' DRAFT: 8'
REGISTERED TONS: (GRT): 144 (NRT): 98 REGISTERED TONS: (GRT): 144 (NRT): 98
DESIGNER: US BUILT , US Flagged DESIGNER: US BUILT , US Flagged
CLASSIFICATION: None CLASSIFICATION: None
MAIN ENGINE(S): 2x V1271 Detroit Diesels w/Twin Discs, keel cooled, MAIN ENGINE(S): 2x V1271 Detroit Diesels w/Twin Discs, keel cooled,
SPEED: 10 knots service speed, 4000 mile range SPEED: 10 knots service speed, 4000 mile range
GENERATORS: 2 x 66kw Caterpillar Generators GENERATORS: 2 x 66kw Caterpillar Generators
FRESH WATER: 7,400 gal. water capacity, Watermaker FRESH WATER: 7,400 gal. water capacity, Watermaker
FUEL CAPACITY: 24,000 gallons MDO, 4000 mile range FUEL CAPACITY: 24,000 gallons MDO, 4000 mile range
ACCOMMODATIONS: 7 cabins for 19 persons, Galley seating for 19 persons, 7 cabins ACCOMMODATIONS: 7 cabins for 19 persons, Galley seating for 19 persons, 7 cabins
DECK GEAR: 14 ft. Zodiac Type Boat w/14 HP Johnson engine , 18 ft. Boston Whaler w/30 HP DECK GEAR: 14 ft. Zodiac Type Boat w/14 HP Johnson engine , 18 ft. Boston Whaler w/30 HP
Johnson engine , 25 Ton A Frame on hydraulic rams , 1 - 5 Ton crane , 4 - Hydraulic Johnson engine , 25 Ton A Frame on hydraulic rams , 1 - 5 Ton crane , 4 - Hydraulic
Capstans, SSB Capstans, SSB
ELECTRONICS: GLOBE wireless E-mail system, Auto pilot, Furuno Video Depth Sounder , 4 x ELECTRONICS: GLOBE wireless E-mail system, Auto pilot, Furuno Video Depth Sounder , 4 x
Radars, Magnavox DGPS, Gyro, VHF, Computer, Radars, Magnavox DGPS, Gyro, VHF, Computer,
LOCATION: GULF COAST USA LOCATION: GULF COAST USA

Technology Technology

RS Operations, LLC provides a broad range of experience relating to selection, deployment and utilization of RS Operations, LLC provides a broad range of experience relating to selection, deployment and utilization of
survey technologies. In this section we provide a brief overview of some of these technologies. survey technologies. In this section we provide a brief overview of some of these technologies.

Since RS Operations targets only older, archaeologically important shipwrecks, we base our planning upon Since RS Operations targets only older, archaeologically important shipwrecks, we base our planning upon
use of 4 distinct but complementary technologies; use of 4 distinct but complementary technologies;

• Magnetometers • Magnetometers
• Side Scan Sonar • Side Scan Sonar
• Global Positioning Satellite Navigation • Global Positioning Satellite Navigation
• GIS Data Management Systems • GIS Data Management Systems

This group of technologies represents the "core" of RS Operations survey planning. This group of technologies represents the "core" of RS Operations survey planning.

There are many other technologies available for use in submarine archaeological investigations. New There are many other technologies available for use in submarine archaeological investigations. New
technologies such as laser line scanners, 3 dimensional acoustic profiling and others currently in development technologies such as laser line scanners, 3 dimensional acoustic profiling and others currently in development
promise to greatly increase the efficiency, cost effectiveness and safety of underwater exploration. promise to greatly increase the efficiency, cost effectiveness and safety of underwater exploration.

45 45
Anticipated Financial Return
Because the Company is a shareholder in Open Waters Trading Ltd which has an entitlement to 7.13% of
the profits of the Projects after paying out the 50% due to the government, the Company (along with other
shareholders in Open Waters Trading Ltd) will receive a dividend from the profits of Projects which are paid
to OWTL.
Therefore the Company (as major shareholder) will receive 85% of the net profits of Open Waters Trading
Ltd.
The financial return is dependent on the success of the Projects. However, in determining the anticipated
return set out below, management has assumed the successful salvage of only some of the main target sites
and not included the value of further unidentified wrecks that may be located and salvaged within the
licensed salvage areas.
In preparing the flow chart below we have taken as a starting point a figure of US$900 million as the net
value of salvage from the Projects. This is the figure assuming all salvage was sold and is the net figure after
restoration, storage and sale costs.
Anticipated Financial Return
Because the Company is a shareholder in Open Waters Trading Ltd which has an entitlement to 7.13% of
the profits of the Projects after paying out the 50% due to the government, the Company (along with other
shareholders in Open Waters Trading Ltd) will receive a dividend from the profits of Projects which are paid
to OWTL.
Therefore the Company (as major shareholder) will receive 85% of the net profits of Open Waters Trading
Ltd.
The financial return is dependent on the success of the Projects. However, in determining the anticipated
return set out below, management has assumed the successful salvage of only some of the main target sites
and not included the value of further unidentified wrecks that may be located and salvaged within the
licensed salvage areas.
In preparing the flow chart below we have taken as a starting point a figure of US$900 million as the net
value of salvage from the Projects. This is the figure assuming all salvage was sold and is the net figure after
restoration, storage and sale costs.

ANTICIPATED MINIMUM RETURN ANTICIPATED MINIMUM RETURN

Net Value of Total Salvage Recovery of the Projects Net Value of Total Salvage Recovery of the Projects
US$900 million US$900 million

Governments (50%) Amount available for non-government participants (50%) Governments (50%) Amount available for non-government participants (50%)
US$450 million US$450 million US$450 million US$450 million

RS Operations Open Waters Trading Ltd (7.13%) RS Operations Open Waters Trading Ltd (7.13%)
Approx. US$418 million Approx. US$32 million Approx. US$418 million Approx. US$32 million

Dividends payable to Recovered Cargos Ltd (85%) Dividends payable to Recovered Cargos Ltd (85%)
Approx. US$27 million Approx. US$27 million

Investors Return (40%) of dividends Investors Return (40%) of dividends

Approx. US$11 million Approx. US$11 million

Total Investors Funds – US$2 million Total Investors Funds – US$2 million

Total Investors Returns – US$11 million = approx. 550% Total Investors Returns – US$11 million = approx. 550%

The anticipated minimum financial return does not take into account the effect of income taxation The anticipated minimum financial return does not take into account the effect of income taxation
on dividends or capital gains to investors. There is an effective tax rate of 4.2% on income on dividends or capital gains to investors. There is an effective tax rate of 4.2% on income
earned by a trading company in Malta. This allows flexibility regarding any payment of taxation earned by a trading company in Malta. This allows flexibility regarding any payment of taxation
that may be due. Investors should seek their own taxation advice. that may be due. Investors should seek their own taxation advice.

46 46
 .............................. Specialists in advanced remote sensing survey and exploration .............................. Specialists in advanced remote sensing survey and exploration

To: The Directors To: The Directors

RECOVERED CARGOS LTD RECOVERED CARGOS LTD

RE: SALVAGE IN ECUADOR RE: SALVAGE IN ECUADOR

RS Operations LLC hereby confirms as follows: RS Operations LLC hereby confirms as follows:

1. I have read the 2007 Information Memorandum by which Recovered Cargos Ltd seeks to 1. I have read the 2007 Information Memorandum by which Recovered Cargos Ltd seeks to
raise funds in respect of salvage operations in Ecuador. raise funds in respect of salvage operations in Ecuador.

2. RS Operations, LLC and its Ecuadorian subsidiaries Estudios Cientificos Del Mar, SA
(ESSCAR) and Investigaciones Cientificos Del Mar, SA (lNCIAR) hold all necessary
government and other approvals, permits and certificates to permit the salvage and
recovery of treasure and artifacts from shipwrecks in the areas of Ecuador referred to in the
Information Memorandum.
2. RS Operations, LLC and its Ecuadorian subsidiaries Estudios Cientificos Del Mar, SA
(ESSCAR) and Investigaciones Cientificos Del Mar, SA (lNCIAR) hold all necessary
government and other approvals, permits and certificates to permit the salvage and
recovery of treasure and artifacts from shipwrecks in the areas of Ecuador referred to in the
Information Memorandum.

3. The permit areas referred to in the Information Memorandum and the coordinates of them 3. The permit areas referred to in the Information Memorandum and the coordinates of them
are correct and are the areas in respect of which INCIAR and ESSCAR hold permits. are correct and are the areas in respect of which INCIAR and ESSCAR hold permits.

4. The information concerning the target wrecks and likely value of salvage contained in the 4. The information concerning the target wrecks and likely value of salvage contained in the
Information Memorandum has been supplied by me and to the best of my knowledge is Information Memorandum has been supplied by me and to the best of my knowledge is
true and correct. This information is based on extensive historical research performed by true and correct. This information is based on extensive historical research performed by
Robert Marx, and other investigations as outlined in the Information Memorandum. Robert Marx, and other investigations as outlined in the Information Memorandum.

5. The permit areas referred to in the Information Memorandum are very rich areas for 5. The permit areas referred to in the Information Memorandum are very rich areas for
shipwrecks during the Spanish Colonial era and even more recently it is very likely that, shipwrecks during the Spanish Colonial era and even more recently it is very likely that,
once detailed survey work begins, we may locate additional wrecks with valuable cargos once detailed survey work begins, we may locate additional wrecks with valuable cargos
which are not referred to in the Information Memorandum. which are not referred to in the Information Memorandum.

6. It is a term of the salvage permits that representatives of the government of Ecuador must 6. It is a term of the salvage permits that representatives of the government of Ecuador must
be present at all times during salvage operations to monitor, record and verify any salvage be present at all times during salvage operations to monitor, record and verify any salvage
recovered. recovered.

7. R.S. Operations LLC has all necessary funding in place that is sufficient to fund all 7. R.S. Operations LLC has all necessary funding in place that is sufficient to fund all
anticipated salvage in the permit areas. anticipated salvage in the permit areas.

PO BOXPO Box 3074

3074 Peoria,ILIL61612
Peoria, 61612 - - (309)
(309) 683
683 3796
3796 47 PO BOXPO Box 3074
3074 Peoria,ILIL61612
Peoria, 61612 - - (309)
(309) 683
683 3796
3796 47
Email: inquiries@rsoperations com Web: www rsoperations com Email: inquiries@rsoperations com Web: www rsoperations com
Email: inquiries@rsoperations.com Web: www.rsoperations.com Email: inquiries@rsoperations.com Web: www.rsoperations.com
 ................................ Specialists in advanced remote sensing survey and exploration ................................ Specialists in advanced remote sensing survey and exploration

8. It is a further term of the arrangements with the Ecuadorian government and government 8. It is a further term of the arrangements with the Ecuadorian government and government
authorities that the salvage will be divided between them and RS Operations, INCIAR and authorities that the salvage will be divided between them and RS Operations, INCIAR and
ESSCAR as set out in the Information Memorandum. ESSCAR as set out in the Information Memorandum.

9. The flow chart and other information set out in the Information Memorandum under the 9. The flow chart and other information set out in the Information Memorandum under the
section detailing the division of salvage amongst relevant parties and the Anticipated section detailing the division of salvage amongst relevant parties and the Anticipated
Minimum Return is true and correct and supported by appropriate agreements between the Minimum Return is true and correct and supported by appropriate agreements between the
parties referred to there. parties referred to there.

10. Based on my many years of experience in the salvage industry in South America, I am 10. Based on my many years of experience in the salvage industry in South America, I am
very confident of success and believe that the return to investors set out in the Information very confident of success and believe that the return to investors set out in the Information
Memorandum is likely to be conservative. Memorandum is likely to be conservative.

Dated this 1st day of April, 2007. Dated this 1st day of April, 2007.

Scott Heimdal Scott Heimdal

President President
RS Operations LLC RS Operations LLC

PO
POBOX 3074Peoria,
Box 3074 Peoria,ILIL 61612- (309)
61612 - (309)
683683 3796
3796 48 PO
POBOX 3074Peoria,
Box 3074 Peoria,ILIL 61612- (309)
61612 - (309)
683683 3796
3796 48
Email:
Email: inquiries@rsoperations.com Web:
inquiries@rsoperations com Web: www.rsoperations.com
www rsoperations com Email:
Email: inquiries@rsoperations.com Web:
inquiries@rsoperations com Web: www.rsoperations.com
www rsoperations com
 Recovered Cargos Ltd
“Ancient Wreck Recovery Through Advanced Technology”
The following Information provided is confidential and forms the basis of the offer.
Investors participate in the Marine Salvage Projects in the following way. Their investment buys an
entitlement to receive some part of the dividends which the Company receives from shares it owns in Open
Waters Trading Ltd.
The Company owns 85% of the shares in Open Waters Trading Ltd and is entitled to 85% of the dividends
from that Company.
The Company will sell the rights to 40% of its dividends for a price of US$2 million. Each 1% of the
Company’s dividends therefore equates to US$50,000.
Because the Company owns 85% of the shares in Open Waters Trading Ltd each 1% sold to an Investor for
US$250,000 entitles the Investor to receive 0.85% of the total dividends paid by Open Waters Trading Ltd as
set out in the flow chart on page 46.
Investment will be subject to the Investor signing the Declaration of Trust which forms part of this Information
Memorandum and which sets out more fully the rights and entitlements of the Investor.
It is important to understand that the Investor will not own any shares in Recovered Cargos Ltd or in Open
Waters Trading Ltd. The Investor will, however, own the dividends from the Projects funded by Open Waters
Trading Ltd and which are described elsewhere in this Memorandum.
At the time of preparation of this Information Memorandum these are the only projects in which Open Waters
Trading Ltd is involved. If it becomes involved in other projects which generate profits the Investor will not be
entitled to share in these profits although if the Company wants to raise further funds it will give the Investors
first right of refusal to allow them to participate if they wish.
Each Investor obtains an indirect interest in the rights which OWTL has in the Projects under the Marine
Salvage Funding Agreement. Under these agreements, OWTL is entitled to receive approximately 3.6% of
the total salvage value, after 50% is paid to the government, and the balance to RS Operations and third
parties.
A holder of 1% of the Company’s dividend rights therefore is entitled to 1% of 85% (the Company’s
shareholding in OWTL) of 7.13% (OWTL’s share of the salvage) of 50% of the value of the salvage of the
Projects (after 50% is paid to the Ecuadorian Government).
While the percentage of the total salvage value to which the Company is entitled is quite small, this should
still amount to a very significant amount of money because of the huge figures involved.
The Company will be responsible for accounting to the Investors for all income that comes into the hands of
the Company as holder of the shares in OWTL. During each financial year (ending 30 June) that the
Company receives income, the Company is required to calculate each Investor’s proportionate share
(“Dividend Entitlement”) and is required to distribute that Dividend Entitlement to each Investor as soon as
possible.
The Investors have the right under the Declaration of Trust to be kept advised and receive information. In
this way they can be sure their interests will be looked after.
Neither the Company nor any other person is permitted to offer this investment to any member of the public,
the intent being that the Trust created by the assignment of the Income Entitlement shall be a private trust.
The Trust will continue in existence for the duration of the Projects and any additional period required to
finalise distribution of the Dividend Entitlements.
Offers have been invited from “Sophisticated Investors” as defined in chapter 6D of the Corporations Act
(and who have been properly certified by their accountants) whose principal business is the investment of
money or who, in the course of and for the purpose of their business, habitually invest money. This offer is
not open to the public.
49
Recovered Cargos Ltd
“Ancient Wreck Recovery Through Advanced Technology”
The following Information provided is confidential and forms the basis of the offer.
Investors participate in the Marine Salvage Projects in the following way. Their investment buys an
entitlement to receive some part of the dividends which the Company receives from shares it owns in Open
Waters Trading Ltd.
The Company owns 85% of the shares in Open Waters Trading Ltd and is entitled to 85% of the dividends
from that Company.
The Company will sell the rights to 40% of its dividends for a price of US$2 million. Each 1% of the
Company’s dividends therefore equates to US$50,000.
Because the Company owns 85% of the shares in Open Waters Trading Ltd each 1% sold to an Investor for
US$250,000 entitles the Investor to receive 0.85% of the total dividends paid by Open Waters Trading Ltd as
set out in the flow chart on page 46.
Investment will be subject to the Investor signing the Declaration of Trust which forms part of this Information
Memorandum and which sets out more fully the rights and entitlements of the Investor.
It is important to understand that the Investor will not own any shares in Recovered Cargos Ltd or in Open
Waters Trading Ltd. The Investor will, however, own the dividends from the Projects funded by Open Waters
Trading Ltd and which are described elsewhere in this Memorandum.
At the time of preparation of this Information Memorandum these are the only projects in which Open Waters
Trading Ltd is involved. If it becomes involved in other projects which generate profits the Investor will not be
entitled to share in these profits although if the Company wants to raise further funds it will give the Investors
first right of refusal to allow them to participate if they wish.
Each Investor obtains an indirect interest in the rights which OWTL has in the Projects under the Marine
Salvage Funding Agreement. Under these agreements, OWTL is entitled to receive approximately 3.6% of
the total salvage value, after 50% is paid to the government, and the balance to RS Operations and third
parties.
A holder of 1% of the Company’s dividend rights therefore is entitled to 1% of 85% (the Company’s
shareholding in OWTL) of 7.13% (OWTL’s share of the salvage) of 50% of the value of the salvage of the
Projects (after 50% is paid to the Ecuadorian Government).
While the percentage of the total salvage value to which the Company is entitled is quite small, this should
still amount to a very significant amount of money because of the huge figures involved.
The Company will be responsible for accounting to the Investors for all income that comes into the hands of
the Company as holder of the shares in OWTL. During each financial year (ending 30 June) that the
Company receives income, the Company is required to calculate each Investor’s proportionate share
(“Dividend Entitlement”) and is required to distribute that Dividend Entitlement to each Investor as soon as
possible.
The Investors have the right under the Declaration of Trust to be kept advised and receive information. In
this way they can be sure their interests will be looked after.
Neither the Company nor any other person is permitted to offer this investment to any member of the public,
the intent being that the Trust created by the assignment of the Income Entitlement shall be a private trust.
The Trust will continue in existence for the duration of the Projects and any additional period required to
finalise distribution of the Dividend Entitlements.
Offers have been invited from “Sophisticated Investors” as defined in chapter 6D of the Corporations Act
(and who have been properly certified by their accountants) whose principal business is the investment of
money or who, in the course of and for the purpose of their business, habitually invest money. This offer is
not open to the public.
49
Highlights
Treasures totalling hundreds of billions of dollars in today’s value have been recovered from the ocean
floors. These operations have been conducted by governments, large companies and consortiums and the
opportunity to participate in these operations has been virtually non-existent to the interested investor.
The opportunity now exists to enjoy the highly anticipated rewards of an exciting venture and be part of
maritime history.
One of the field’s pre-eminent scientists and explorers, Graham Hawkes, foresees “a gold rush in the ocean in the
near future”. He goes on to say “everything that’s lost in the ocean will be found in the near future.”
Due to the advent of technology it is envisaged that all salvageable wrecks will be recovered in the next 10 to 20
years.
Projects are undertaken by fully professional support teams, including marine archaeologists, representatives of
the relevant governments, archivists, historians and researchers, all of whom have enjoyed successful past
salvages.
Open Waters Trading Limited and RS Operations have access to the most sophisticated technology available in
the world today including dynamic positioning vessels using state of the art equipment for full saturation diving if
necessary.
These are sophisticated exploration projects, in some cases, based on known locations combined with the benefit
of many years of local experience, knowledge and contacts. Exploration is based on extensive worldwide research
of many sources and authorities including records from Archives, National Museums and Libraries.
Recovered Cargos Ltd enjoys the opportunity to spread its investment over a number of separate salvage
operations. Any other wreck that may be found within the licensed salvage areas will also be shared by all
Investors with Recovered Cargos Ltd.
Due to the exclusive nature of the licences held, no competition will effect the operations of Open Waters Trading
or RS Operations in Ecuadorian waters.
Valuables such as porcelain, gold, silver, jewellery and coins will be offered by auction to international audiences.
Items of historical significance may be offered to appropriate museums. The character of the artefacts will dictate
their market, such as cannon and guns that have a distinct and targetable market.
50
Highlights
Treasures totalling hundreds of billions of dollars in today’s value have been recovered from the ocean
floors. These operations have been conducted by governments, large companies and consortiums and the
opportunity to participate in these operations has been virtually non-existent to the interested investor.
The opportunity now exists to enjoy the highly anticipated rewards of an exciting venture and be part of
maritime history.
One of the field’s pre-eminent scientists and explorers, Graham Hawkes, foresees “a gold rush in the ocean in the
near future”. He goes on to say “everything that’s lost in the ocean will be found in the near future.”
Due to the advent of technology it is envisaged that all salvageable wrecks will be recovered in the next 10 to 20
years.
Projects are undertaken by fully professional support teams, including marine archaeologists, representatives of
the relevant governments, archivists, historians and researchers, all of whom have enjoyed successful past
salvages.
Open Waters Trading Limited and RS Operations have access to the most sophisticated technology available in
the world today including dynamic positioning vessels using state of the art equipment for full saturation diving if
necessary.
These are sophisticated exploration projects, in some cases, based on known locations combined with the benefit
of many years of local experience, knowledge and contacts. Exploration is based on extensive worldwide research
of many sources and authorities including records from Archives, National Museums and Libraries.
Recovered Cargos Ltd enjoys the opportunity to spread its investment over a number of separate salvage
operations. Any other wreck that may be found within the licensed salvage areas will also be shared by all
Investors with Recovered Cargos Ltd.
Due to the exclusive nature of the licences held, no competition will effect the operations of Open Waters Trading
or RS Operations in Ecuadorian waters.
Valuables such as porcelain, gold, silver, jewellery and coins will be offered by auction to international audiences.
Items of historical significance may be offered to appropriate museums. The character of the artefacts will dictate
their market, such as cannon and guns that have a distinct and targetable market.
50
Summary Summary

This project is not just a “treasure hunt”, but a full scale, sophisticated salvage recovery operation, using This project is not just a “treasure hunt”, but a full scale, sophisticated salvage recovery operation, using
high-tech equipment and the expertise of many and varied skilled personnel. high-tech equipment and the expertise of many and varied skilled personnel.

In the first instance, very strict security procedures, including round-the-clock security guards, are installed In the first instance, very strict security procedures, including round-the-clock security guards, are installed
against looters. against looters.

The extent and method of recovery will depend on many factors such as depth of water, currents, the extent The extent and method of recovery will depend on many factors such as depth of water, currents, the extent
of encrustation, the age of the wreck, the type of artifacts expected to be found and the depth of the wreck of encrustation, the age of the wreck, the type of artifacts expected to be found and the depth of the wreck
below the seabed. below the seabed.

The weather is also critical, as there are certain periods of the year when seasonal typhoons may prevent The weather is also critical, as there are certain periods of the year when seasonal typhoons may prevent
any survey or recovery work at all. The extent of the effect of adverse weather depends on the location. For any survey or recovery work at all. The extent of the effect of adverse weather depends on the location. For
example, in protected waters, work can usually be undertaken all year round. example, in protected waters, work can usually be undertaken all year round.

As wrecks are often partly or wholly buried beneath the seabed, a significant effort can be required to As wrecks are often partly or wholly buried beneath the seabed, a significant effort can be required to
remove the covering sand and mud. This is usually done by the use of an Air Lift, which acts like a giant remove the covering sand and mud. This is usually done by the use of an Air Lift, which acts like a giant
vacuum cleaner to suck away the over burden. Another method is by the use of an Underwater Agitator or vacuum cleaner to suck away the over burden. Another method is by the use of an Underwater Agitator or
“Prop-Wash” which works in the opposite way to the Air Lift, that is, it blows the sand and mud away. “Prop-Wash” which works in the opposite way to the Air Lift, that is, it blows the sand and mud away.

Once artifacts are located, the area is gridded and systematically documented and photographed. With the Once artifacts are located, the area is gridded and systematically documented and photographed. With the
archaeological survey completed, the artifacts are carefully extracted and brought to the surface using archaeological survey completed, the artifacts are carefully extracted and brought to the surface using
recovery baskets and lift bags. Once on board, the artifacts are treated to remove the salt water content recovery baskets and lift bags. Once on board, the artifacts are treated to remove the salt water content
and any marine encrustations. and any marine encrustations.

On site, each recovered item is photographed, catalogued and packed under the supervision of, amongst On site, each recovered item is photographed, catalogued and packed under the supervision of, amongst
others, a representative from the Government. Preliminary values will be established for the recovered items others, a representative from the Government. Preliminary values will be established for the recovered items
and an assessment made as to their historical value. Logistics are in place for the transport of the recovered and an assessment made as to their historical value. Logistics are in place for the transport of the recovered
items to be warehoused and prepared for sale. items to be warehoused and prepared for sale.

The Salvors will have sub-sea imagery and archival confirmation of the identity of some of the vessels and The Salvors will have sub-sea imagery and archival confirmation of the identity of some of the vessels and
their cargo manifests with the probability of high value artifacts – mainly porcelain, gold bullion and silver their cargo manifests with the probability of high value artifacts – mainly porcelain, gold bullion and silver
specie. specie.

Open Waters Trading Limited and the Salvors have access to the most respected and knowledgeable Open Waters Trading Limited and the Salvors have access to the most respected and knowledgeable
professionals available as members of the management and consulting teams and are confident of great professionals available as members of the management and consulting teams and are confident of great
success with these exciting ventures. success with these exciting ventures.

Open Waters Trading Ltd intends to continually establish itself as the world leader in the marine recovery Open Waters Trading Ltd intends to continually establish itself as the world leader in the marine recovery
and salvage sector. and salvage sector.

51 51
Level 16 Level 16
15 Adelaide Street, Brisbane, Qld, 4000 15 Adelaide Street, Brisbane, Qld, 4000
Ph: (07) 3001 2999 Fax: (07) 3001 2989 Ph: (07) 3001 2999 Fax: (07) 3001 2989
Email: mbigg@bennettphilp.com.au Email: mbigg@bennettphilp.com.au

Recovered Cargos Ltd Recovered Cargos Ltd

and and

52 52
This Declaration is made the day of 2007 This Declaration is made the day of 2007

RECOVERED CARGOS LTD (registration number C37427) of 60/2 RECOVERED CARGOS LTD (registration number C37427) of 60/2
Melita Street, Valletta, VLT12, Malta (“the Trustee”) Melita Street, Valletta, VLT12, Malta (“the Trustee”)
and and
The party described in Schedule 1 (the “Beneficiary”) The party described in Schedule 1 (the “Beneficiary”)

A. The Trustee is entitled to receive certain dividends from shares held by the Trustee in A. The Trustee is entitled to receive certain dividends from shares held by the Trustee in
Open Waters Trading Ltd. Open Waters Trading Ltd.

A. The Trustee wishes to assign part of its entitlement to the said dividends to the A. The Trustee wishes to assign part of its entitlement to the said dividends to the
Beneficiary in exchange for payment of monies to the Trustee by or on behalf of the Beneficiary in exchange for payment of monies to the Trustee by or on behalf of the
Beneficiary. Beneficiary.

NOW THIS DECLARATION WITNESSES AS FOLLOWS: NOW THIS DECLARATION WITNESSES AS FOLLOWS:

1. Definition & interpretation 1. Definition & interpretation

1.1 In this Declaration and in any certificates or other documents issued pursuant to this 1.1 In this Declaration and in any certificates or other documents issued pursuant to this
Declaration, unless there is something in the subject or context inconsistent with the Declaration, unless there is something in the subject or context inconsistent with the
provisions of this clause the following expressions have the following meanings: provisions of this clause the following expressions have the following meanings:

(a) “Beneficiary” means the party described in Schedule 1. (a) “Beneficiary” means the party described in Schedule 1.

(a) “Beneficiary’s Dividend Entitlement” has the meaning set out in clause 5. (a) “Beneficiary’s Dividend Entitlement” has the meaning set out in clause 5.

(a) “Business Day” means a day on which banks are open for business in Malta. (a) “Business Day” means a day on which banks are open for business in Malta.

(a) “Open Waters Trading Ltd” means Open Waters Trading Ltd (registration (a) “Open Waters Trading Ltd” means Open Waters Trading Ltd (registration
number C34773) of 60/2 Melita Street, Valletta, VLT12, Malta. number C34773) of 60/2 Melita Street, Valletta, VLT12, Malta.

53 53
 (a) “Marine Salvage Funding Agreement” means the Marine Salvage Funding
Agreement between Open Waters Trading Ltd, R.S Operations, LLC and Scott
Heimdal.
(a) “Projects” means the recovery and sale of salvage under the Marine Salvage
Funding Agreements in the Project Areas.
(a) “Project Areas” means those areas defined by the co-ordinates specified in
Schedule 4.
(a) “Project Partners” means RS Operations LLC, a company incorporated in the
United States of America, Estudios Cientificios del MAR, SA a corporation
incorporated in Ecuador (“Esscar”) and Investigaciones Cientificios del MAR, SA,
a corporation incorporated in Ecuador (Inciar”).
(a) “Projects Dividends” has the meaning given in clause 5.2.
(a) “Projects Profits” has the meaning set out in clause 5.3.
(a) “Purchase Price” means the amount set out in Schedule 3 and is in $US.
(a) “Trustee” means Recovered Cargos Ltd (registration number C37427) of 60/2
Melita Street, Valletta, VLT12, Malta, a corporation incorporated under the laws of
Malta.
1.1 Words importing the singular number shall include the plural and vice versa.
1.1 A reference to any gender including the neuter shall be taken as a reference to all other
genders including the neuter.
1.1 Words importing persons include companies, corporations and bodies corporate and vice
versa.
1.1 References to statutes, regulations and by-laws include reference to all statutes,
regulations and by-laws which amend consolidate or replace the statutes, regulations or
by-laws referred to and also include any notices, ordinances or orders issued under any
of those statutes, regulations or by-laws in every case for the time being in force.
1.1 Headings and any list of contents have been inserted for convenience only and will not
be taken into account in interpreting the provisions of this Declaration.
1.1 Reference to institutes, associations, bodies and authorities whether statutory or
otherwise will, if that institute, body, association or authority ceases to exist or is
reconstituted, renamed or replaced or its powers or functions are transferred to any other
institute, association, body or authority, be deemed to refer respectively to the institute,
association, body or authority established or constituted in place thereof or which
substantially succeeds to the powers or functions of the institute association body or
authority referred to.
1.1 Unless application is mandatory by law, any statute, proclamation, order, regulation or
moratorium present or future will not apply to this Declaration so as to abrogate,
extinguish, impair, diminish, fetter, delay or otherwise prejudicially affect the exercise or
54
(a) “Marine Salvage Funding Agreement” means the Marine Salvage Funding
Agreement between Open Waters Trading Ltd, R.S Operations, LLC and Scott
Heimdal.
(a) “Projects” means the recovery and sale of salvage under the Marine Salvage
Funding Agreements in the Project Areas.
(a) “Project Areas” means those areas defined by the co-ordinates specified in
Schedule 4.
(a) “Project Partners” means RS Operations LLC, a company incorporated in the
United States of America, Estudios Cientificios del MAR, SA a corporation
incorporated in Ecuador (“Esscar”) and Investigaciones Cientificios del MAR, SA,
a corporation incorporated in Ecuador (Inciar”).
(a) “Projects Dividends” has the meaning given in clause 5.2.
(a) “Projects Profits” has the meaning set out in clause 5.3.
(a) “Purchase Price” means the amount set out in Schedule 3 and is in $US.
(a) “Trustee” means Recovered Cargos Ltd (registration number C37427) of 60/2
Melita Street, Valletta, VLT12, Malta, a corporation incorporated under the laws of
Malta.
1.1 Words importing the singular number shall include the plural and vice versa.
1.1 A reference to any gender including the neuter shall be taken as a reference to all other
genders including the neuter.
1.1 Words importing persons include companies, corporations and bodies corporate and vice
versa.
1.1 References to statutes, regulations and by-laws include reference to all statutes,
regulations and by-laws which amend consolidate or replace the statutes, regulations or
by-laws referred to and also include any notices, ordinances or orders issued under any
of those statutes, regulations or by-laws in every case for the time being in force.
1.1 Headings and any list of contents have been inserted for convenience only and will not
be taken into account in interpreting the provisions of this Declaration.
1.1 Reference to institutes, associations, bodies and authorities whether statutory or
otherwise will, if that institute, body, association or authority ceases to exist or is
reconstituted, renamed or replaced or its powers or functions are transferred to any other
institute, association, body or authority, be deemed to refer respectively to the institute,
association, body or authority established or constituted in place thereof or which
substantially succeeds to the powers or functions of the institute association body or
authority referred to.
1.1 Unless application is mandatory by law, any statute, proclamation, order, regulation or
moratorium present or future will not apply to this Declaration so as to abrogate,
extinguish, impair, diminish, fetter, delay or otherwise prejudicially affect the exercise or
54
 enjoyment of any rights, powers privileges, remedies or discretions given or accruing to
any party.
1.1 References to any of the parties includes references to their respective successors and
permitted assigns.
1.1 If any of the provisions of this Declaration should be judged invalid unlawful or
unenforceable for any reason by a Court of competent jurisdiction, such invalidity,
unenforceability or illegality will not affect the operation, construction or interpretation of
any other provision of this Declaration, with the intent that the invalid or unenforceable or
illegal provisions will be treated for all purposes as severed from this Declaration.
1. Assignment & Declaration of Trust
1.1 The Trustee hereby ACKNOWLEDGES AND DECLARES that upon payment to the
Trustee of the Purchase Price by or on behalf of the Beneficiary it will hold the
Beneficiary’s Dividend Entitlement for and on behalf of the Beneficiary absolutely and
that the Trustee will deal with the Beneficiary’s Dividend Entitlement in accordance with
this Declaration.
1.2 In order to more fully give effect to the Declaration contained in clause 1.1 the Trustee
hereby declares that upon payment to the Trustee of the Purchase Price by or on behalf
of the Beneficiary it will transfer, set over and assign to the Beneficiary the Beneficiary’s
Dividend Entitlement on the terms set out in this Declaration.
2. Trustee to Ensure Payment
2.1 The Trustee will ensure that upon receipt by it of any Projects Dividends in clear funds it
will:
(a) within 3 Business Days notify the Beneficiary in writing of this fact and advise the
amount of the Beneficiary’s Dividend Entitlement; and
(b) within 7 Business Days pay the Beneficiary’s Dividend Entitlement to the
Beneficiary or as otherwise directed in writing by the Beneficiary.
3. Disclosure of Information
3.1 The Trustee will do all things reasonably required to satisfy the Beneficiary that the
Beneficiary’s Dividend Entitlement has been fairly and properly calculated by the Trustee
including provision of:
(a) All operational reports by the Project Partners relating to the Projects which are
supplied to the Trustee or Open Waters Trading Ltd other than those reports or
parts of those reports which the Project Partners require to be kept confidential for
security reasons; and
(b) All financial and accounting reports by the Project Partners relating to the Projects
which are supplied to the Trustee or Open Waters Trading Ltd other than those
55
enjoyment of any rights, powers privileges, remedies or discretions given or accruing to
any party.
1.1 References to any of the parties includes references to their respective successors and
permitted assigns.
1.1 If any of the provisions of this Declaration should be judged invalid unlawful or
unenforceable for any reason by a Court of competent jurisdiction, such invalidity,
unenforceability or illegality will not affect the operation, construction or interpretation of
any other provision of this Declaration, with the intent that the invalid or unenforceable or
illegal provisions will be treated for all purposes as severed from this Declaration.
1. Assignment & Declaration of Trust
1.1 The Trustee hereby ACKNOWLEDGES AND DECLARES that upon payment to the
Trustee of the Purchase Price by or on behalf of the Beneficiary it will hold the
Beneficiary’s Dividend Entitlement for and on behalf of the Beneficiary absolutely and
that the Trustee will deal with the Beneficiary’s Dividend Entitlement in accordance with
this Declaration.
1.2 In order to more fully give effect to the Declaration contained in clause 1.1 the Trustee
hereby declares that upon payment to the Trustee of the Purchase Price by or on behalf
of the Beneficiary it will transfer, set over and assign to the Beneficiary the Beneficiary’s
Dividend Entitlement on the terms set out in this Declaration.
2. Trustee to Ensure Payment
2.1 The Trustee will ensure that upon receipt by it of any Projects Dividends in clear funds it
will:
(a) within 3 Business Days notify the Beneficiary in writing of this fact and advise the
amount of the Beneficiary’s Dividend Entitlement; and
(b) within 7 Business Days pay the Beneficiary’s Dividend Entitlement to the
Beneficiary or as otherwise directed in writing by the Beneficiary.
3. Disclosure of Information
3.1 The Trustee will do all things reasonably required to satisfy the Beneficiary that the
Beneficiary’s Dividend Entitlement has been fairly and properly calculated by the Trustee
including provision of:
(a) All operational reports by the Project Partners relating to the Projects which are
supplied to the Trustee or Open Waters Trading Ltd other than those reports or
parts of those reports which the Project Partners require to be kept confidential for
security reasons; and
(b) All financial and accounting reports by the Project Partners relating to the Projects
which are supplied to the Trustee or Open Waters Trading Ltd other than those
55
 reports or parts of those reports which the Project Partners require to be kept reports or parts of those reports which the Project Partners require to be kept
confidential for security reasons; and confidential for security reasons; and

(c) Any other information which the Beneficiary reasonably requests in order to be (c) Any other information which the Beneficiary reasonably requests in order to be
satisfied that the Beneficiary’s Dividend Entitlement has been properly calculated satisfied that the Beneficiary’s Dividend Entitlement has been properly calculated
and paid. and paid.

4. Beneficiary’s Dividend Entitlement 4. Beneficiary’s Dividend Entitlement

4.1 The Beneficiary’s Dividend Entitlement is that percentage specified in Schedule 2 of the 4.1 The Beneficiary’s Dividend Entitlement is that percentage specified in Schedule 2 of the
Projects Dividends. Projects Dividends.

4.2 Projects Dividends means the Dividends paid to the Trustee by Open Waters Trading Ltd 4.2 Projects Dividends means the Dividends paid to the Trustee by Open Waters Trading Ltd
as a result of Open Waters Trading Ltd receiving Projects Profits and after Open Waters as a result of Open Waters Trading Ltd receiving Projects Profits and after Open Waters
Trading Ltd deducting therefrom the reasonable expenses of Open Waters Trading Ltd Trading Ltd deducting therefrom the reasonable expenses of Open Waters Trading Ltd
relating to the Projects. relating to the Projects.

4.3 Projects means the profits from the Projects which are payable to Open Waters Trading 4.3 Projects means the profits from the Projects which are payable to Open Waters Trading
Limited pursuant to the Marine Salvage Funding Agreement. Limited pursuant to the Marine Salvage Funding Agreement.

5. Trustees Undertakings 5. Trustees Undertakings

The Trustee undertakes to retain a sufficient shareholding in Open Waters Trading Ltd The Trustee undertakes to retain a sufficient shareholding in Open Waters Trading Ltd
so that it will at all times remain entitled to Projects Dividends in an amount equal at so that it will at all times remain entitled to Projects Dividends in an amount equal at
least to the Beneficiary’s Dividend Entitlement under this Declaration and any similar least to the Beneficiary’s Dividend Entitlement under this Declaration and any similar
declarations in favour of any other beneficiaries. declarations in favour of any other beneficiaries.

6. Beneficiaries Acknowledgements 6. Beneficiaries Acknowledgements

6.1 The Beneficiary acknowledges and agrees: 6.1 The Beneficiary acknowledges and agrees:

(a) The Trustee may dispose of shares in Open Waters Trading Ltd or agree to (a) The Trustee may dispose of shares in Open Waters Trading Ltd or agree to
dilution of its shareholding in that company but only to the extent that Clause 6.1 dilution of its shareholding in that company but only to the extent that Clause 6.1
is not breached; is not breached;

(b) The Beneficiary will not assign, transfer or dispose of any interest whatsoever in (b) The Beneficiary will not assign, transfer or dispose of any interest whatsoever in
the Beneficiary’s Dividend Entitlement (including by way of charge or security) the Beneficiary’s Dividend Entitlement (including by way of charge or security)
without first: without first:

(i) Making full disclosure to the Trustee; (i) Making full disclosure to the Trustee;

(ii) Obtaining the Trustee’s written consent which the Trustee cannot (ii) Obtaining the Trustee’s written consent which the Trustee cannot
unreasonably refuse; and unreasonably refuse; and

(iii) Obtaining from the other party or parties an agreement in writing, in terms (iii) Obtaining from the other party or parties an agreement in writing, in terms
reasonably satisfactory to the Trustee, whereby the other party or parties reasonably satisfactory to the Trustee, whereby the other party or parties
agree to be bound by the terms of this Declaration; agree to be bound by the terms of this Declaration;

56 56
7. Termination of Trust
7.1 The Trust constituted by this Declaration will terminate upon completion of the Projects.
7.2 The Projects will be deemed completed for the purposes of clause 8.1 when the relevant
Project Partner advises Open Waters Trading Ltd in writing that it has completed all
viable salvage operations (in its opinion) under the Marine Salvage Funding Agreement
in the relevant Project Area.
8. Governing Law
8.1 Subject to clause 9.2 the formation and effect, construction and interpretation of this
Declaration shall be governed by the laws in force in Malta from time to time, which shall
be the proper law of this Declaration, and the rules of interpretation and the laws in use
in Malta shall apply to this Declaration except insofar as the same may be modified,
varied or excluded by the express or implied terms of this Declaration.
8.2 The Trustee may at any time, by notice in writing to the Beneficiary, declare that the laws
of another jurisdiction shall apply in place of the laws of Malta as set out in clause 9.1
whereupon the laws of the nominated jurisdiction shall be deemed to have applied to this
Declaration as though they had been nominated from the start or alternatively from the
date given by the Trustee as the date of application of those laws.
57
7. Termination of Trust
7.1 The Trust constituted by this Declaration will terminate upon completion of the Projects.
7.2 The Projects will be deemed completed for the purposes of clause 8.1 when the relevant
Project Partner advises Open Waters Trading Ltd in writing that it has completed all
viable salvage operations (in its opinion) under the Marine Salvage Funding Agreement
in the relevant Project Area.
8. Governing Law
8.1 Subject to clause 9.2 the formation and effect, construction and interpretation of this
Declaration shall be governed by the laws in force in Malta from time to time, which shall
be the proper law of this Declaration, and the rules of interpretation and the laws in use
in Malta shall apply to this Declaration except insofar as the same may be modified,
varied or excluded by the express or implied terms of this Declaration.
8.2 The Trustee may at any time, by notice in writing to the Beneficiary, declare that the laws
of another jurisdiction shall apply in place of the laws of Malta as set out in clause 9.1
whereupon the laws of the nominated jurisdiction shall be deemed to have applied to this
Declaration as though they had been nominated from the start or alternatively from the
date given by the Trustee as the date of application of those laws.
57
Name: Name:

Address: Address:

58 58
 ESSCAR ESSCAR
AREA 1 AREA 1
LATITUDE LONGITUDE LATITUDE LONGITUDE
POINT POINT
(a) 00° 47’ 642” N 080° 04’ 740” W (a) 00° 47’ 642” N 080° 04’ 740” W

(b) 00° 48’ 747” N 080° 05’ 421” W (b) 00° 48’ 747” N 080° 05’ 421” W

(c) 00° 51’ 133” N 080° 03’ 425“ W (c) 00° 51’ 133” N 080° 03’ 425“ W
(d) 01° 01’ 295” N 079° 59’ 524” W (d) 01° 01’ 295” N 079° 59’ 524” W

(e) 01° 07’ 950” N 079° 58’ 658” W (e) 01° 07’ 950” N 079° 58’ 658” W

(f) 01° 08’ 236” N 079° 53’ 011” W (f) 01° 08’ 236” N 079° 53’ 011” W
(g) 01° 03’ 933” N 079° 49 087” W (g) 01° 03’ 933” N 079° 49 087” W

(h) 01° 01’ 206” N 079° 59’ 079” W (h) 01° 01’ 206” N 079° 59’ 079” W

(i) 00° 50’ 916” N 080° 03’ 035” W (i) 00° 50’ 916” N 080° 03’ 035” W
(j) 00° 50’ 656” N 079° 59’ 435” W (j) 00° 50’ 656” N 079° 59’ 435” W

(k) 00° 49’ 235” N 079° 59’ 261” W (k) 00° 49’ 235” N 079° 59’ 261” W
(l) 00° 49’ 511” N 080° 00’ 642” W (l) 00° 49’ 511” N 080° 00’ 642” W

(m) 00° 49’ 210” N 080° 02’ 359” W (m) 00° 49’ 210” N 080° 02’ 359” W

(n) 00° 49’ 800” N 080° 02’ 905” W (n) 00° 49’ 800” N 080° 02’ 905” W

AREA 2 AREA 2
LATITUDE LONGITUDE LATITUDE LONGITUDE
POINT POINT
(a) 01° 11’ 510” N 079° 09’ 244” W (a) 01° 11’ 510” N 079° 09’ 244” W

(b) 01° 15’ 374” N 079° 06’ 394” W (b) 01° 15’ 374” N 079° 06’ 394” W

(c) 01° 20’ 045” N 079° 03’ 206” W (c) 01° 20’ 045” N 079° 03’ 206” W
(d) 01° 19’ 108” N 079° 01’ 826” W (d) 01° 19’ 108” N 079° 01’ 826” W

(e) 01° 14’ 359” N 079° 04’ 807” W (e) 01° 14’ 359” N 079° 04’ 807” W

(f) 01° 10’ 417” N 079° 07’ 813” W (f) 01° 10’ 417” N 079° 07’ 813” W

59 59
 INCIAR INCIAR
AREA 1 AREA 1
LATITUDE LONGITUDE LATITUDE LONGITUDE
POINT POINT
(a) 02° 23’ 36” S 080° 43’ 36” W (a) 02° 23’ 36” S 080° 43’ 36” W
(b) 02° 23’ 18” S 080° 43’ 10” W (b) 02° 23’ 18” S 080° 43’ 10” W
(c) 02° 24’ 25” S 080° 41’ 30” W (c) 02° 24’ 25” S 080° 41’ 30” W
(d) 02° 24’ 08” S 080° 40’ 44” W (d) 02° 24’ 08” S 080° 40’ 44” W
(e) 02° 24’ 50” S 080° 39’ 54” W (e) 02° 24’ 50” S 080° 39’ 54” W
(f) 02° 25’ 08” S 080° 39’ 15” W (f) 02° 25’ 08” S 080° 39’ 15” W
(g) 02° 26’ 56” S 080° 38’ 00” W (g) 02° 26’ 56” S 080° 38’ 00” W
(h) 02° 28’ 30” S 080° 35’ 30” W (h) 02° 28’ 30” S 080° 35’ 30” W
(i) 02° 26’ 18” S 080° 43’ 36” W (i) 02° 26’ 18” S 080° 43’ 36” W

AREA 2 AREA 2
LATITUDE LONGITUDE LATITUDE LONGITUDE
POINT POINT
(a) 000° 45’ 54” N 080° 05’ 54” W (a) 000° 45’ 54” N 080° 05’ 54” W
(b) 000° 47’ 06” N 080° 07’ 12” W (b) 000° 47’ 06” N 080° 07’ 12” W
(c) 000° 41’ 36” N 080° 07’ 36” W (c) 000° 41’ 36” N 080° 07’ 36” W
(d) 000° 38’ 06” N 080° 07’ 30” W (d) 000° 38’ 06” N 080° 07’ 30” W
(e) 000° 35’ 36” N 080° 03’ 48” W (e) 000° 35’ 36” N 080° 03’ 48” W
(f) 000° 32’ 30” N 080 03’ 48” W (f) 000° 32’ 30” N 080 03’ 48” W
(g) 000° 29’ 06” N 080° 04’ 48” W (g) 000° 29’ 06” N 080° 04’ 48” W
(h) 000° 25’ 06” N 080° 07’ 36” W (h) 000° 25’ 06” N 080° 07’ 36” W
(i) 000° 39’ 36” N 080° 05’ 54” W (i) 000° 39’ 36” N 080° 05’ 54” W
(j) 000° 20’ 00” N 080° 02’ 12” W (j) 000° 20’ 00” N 080° 02’ 12” W
(k) 000° 24’ 12” N 080° 04’ 42” W (k) 000° 24’ 12” N 080° 04’ 42” W
(l) 000° 29’ 48” N 080° 02’ 42” W (l) 000° 29’ 48” N 080° 02’ 42” W
(m) 000° 30’ 42” N 080° 01’ 42” W (m) 000° 30’ 42” N 080° 01’ 42” W
(n) 000° 30’ 42” N 080° 01’ 06” W (n) 000° 30’ 42” N 080° 01’ 06” W
(o) 000° 33’ 36” N 080° 00’ 24” W (o) 000° 33’ 36” N 080° 00’ 24” W
(p) 000° 37’ 30” N 080° 02’ 12” W (p) 000° 37’ 30” N 080° 02’ 12” W
(q) 000° 39’ 24” N 080° 04’ 12” W (q) 000° 39’ 24” N 080° 04’ 12” W
(r) 000° 38’ 54” N 080° 05’ 00” W (r) 000° 38’ 54” N 080° 05’ 00” W
(s) 000° 41’ 00” N 080° 05’ 54” W (s) 000° 41’ 00” N 080° 05’ 54” W
(t) 000° 42’ 00” N 080° 06’ 00” W 60 (t) 000° 42’ 00” N 080° 06’ 00” W 60
EXECUTED by the parties on the day and year first hereinbefore written EXECUTED by the parties on the day and year first hereinbefore written

EXECUTED for and on behalf of EXECUTED for and on behalf of

RECOVERED CARGOS LTD (registration RECOVERED CARGOS LTD (registration
number C37427) by Douglas Grahame, number C37427) by Douglas Grahame,
Director before me Director before me
Signature of Director Signature of Director

Signature of witness Signature of witness

EXECUTED for and on behalf of EXECUTED for and on behalf of

by by
, Director and , Director and
, Director , Director
before me Signature of Director before me Signature of Director

Signature of witness Signature of witness

61 61
Frequently Asked Questions
WHY IS RECOVERED CARGOS LTD MAKING AVAILABLE A PERCENTAGE OF ITS
DIVIDENDS?
The current Shareholders of the Company have other opportunities available to them and need to realise a
part of their investment in OWTL to pursue these opportunities (see page 6).
WHEN CAN I EXPECT TO RECEIVE A RETURN ON MY INVESTMENT?
The salvage operations should be progressively completed within one to three years. The Company will
ensure that the net profit earned from each sale of the salvaged Cargos will be distributed amongst Investors
within 7 days of it being received by the Company.
CAN YOU GIVE MORE INFORMATION REGARDING THE WRECKS? WHAT OTHER WAYS
CAN THESE VESSELS BE IDENTIFIED?
All salvors around the world are deeply concerned about secrecy. It is difficult, if not impossible, in some
cases, to protect a discovery in the ocean. For obvious reasons, salvage companies go to extraordinary
lengths to protect their interest and in most cases insist on confidentiality agreements being entered into by
all parties involved. The governments also have a lot at stake and inevitably, will insist that a confidentiality
agreement be in place. OWTL and the Project Partners will release any relevant information only when the
salvage operations begin.
WHAT ASSURANCES DO THE INVESTORS IN RECOVERED CARGOS LTD HAVE THAT THE
MONEY THEY SUBSCRIBE WILL ENTITLE THEM TO A PERCENTAGE OF THE MARINE
SALVAGE RIGHTS HELD BY RECOVERED CARGOS LTD ?
OWTL has a binding Marine Salvage Funding Agreement with RS Operations LLC which entities OWTL to
receive 7.13% of the value of the salvage from the Projects, after government charges of 50%, of which 85%
(being the Company’s shareholding in OWTL) is allocated to Recovered Cargos. Of this, up to 40%
(depending on how much investment is accepted by The Company) goes to Investors. Investors in
Recovered Cargos Ltd are protected by the Declaration of Trust.
IS IT POSSIBLE THAT THE MARKET CAN BE SATURATED BY SO MANY ITEMS BEING
RETRIEVED AT THE SAME TIME AND PRICES OBTAINED BEING AFFECTED?
We are always conscious of this and are guided by major Auction House marketing advisors as to how the
cargo is to be marketed. If it is decided that, in order to obtain the highest possible price and the Cargos are
to be auctioned, Christies alone has 170 outlets around the world. It may be decided that taking a little
longer and spreading the items through a number of outlets would maximise returns.
I UNDERSTAND THAT THE SALVAGE OPERATIONS SHOULD BE PROGRESSIVELY
COMPLETED WITHIN ONE TO THREE YEARS. WHAT WILL HAPPEN IF ADVERSE
WEATHER CONDITIONS OR UNFORESEEN CIRCUMSTANCES ARISE THAT HINDER THIS?
All salvors are conscious of “best laid plans of mice and men” being upset by a number of unpredictable
problems, but whether it be adverse weather conditions, equipment breakdowns, etc. it is only temporary
before salvage operations can recommence. The wrecks have been there for hundreds of years and they
are not going to disappear.
62
Frequently Asked Questions
WHY IS RECOVERED CARGOS LTD MAKING AVAILABLE A PERCENTAGE OF ITS
DIVIDENDS?
The current Shareholders of the Company have other opportunities available to them and need to realise a
part of their investment in OWTL to pursue these opportunities (see page 6).
WHEN CAN I EXPECT TO RECEIVE A RETURN ON MY INVESTMENT?
The salvage operations should be progressively completed within one to three years. The Company will
ensure that the net profit earned from each sale of the salvaged Cargos will be distributed amongst Investors
within 7 days of it being received by the Company.
CAN YOU GIVE MORE INFORMATION REGARDING THE WRECKS? WHAT OTHER WAYS
CAN THESE VESSELS BE IDENTIFIED?
All salvors around the world are deeply concerned about secrecy. It is difficult, if not impossible, in some
cases, to protect a discovery in the ocean. For obvious reasons, salvage companies go to extraordinary
lengths to protect their interest and in most cases insist on confidentiality agreements being entered into by
all parties involved. The governments also have a lot at stake and inevitably, will insist that a confidentiality
agreement be in place. OWTL and the Project Partners will release any relevant information only when the
salvage operations begin.
WHAT ASSURANCES DO THE INVESTORS IN RECOVERED CARGOS LTD HAVE THAT THE
MONEY THEY SUBSCRIBE WILL ENTITLE THEM TO A PERCENTAGE OF THE MARINE
SALVAGE RIGHTS HELD BY RECOVERED CARGOS LTD ?
OWTL has a binding Marine Salvage Funding Agreement with RS Operations LLC which entities OWTL to
receive 7.13% of the value of the salvage from the Projects, after government charges of 50%, of which 85%
(being the Company’s shareholding in OWTL) is allocated to Recovered Cargos. Of this, up to 40%
(depending on how much investment is accepted by The Company) goes to Investors. Investors in
Recovered Cargos Ltd are protected by the Declaration of Trust.
IS IT POSSIBLE THAT THE MARKET CAN BE SATURATED BY SO MANY ITEMS BEING
RETRIEVED AT THE SAME TIME AND PRICES OBTAINED BEING AFFECTED?
We are always conscious of this and are guided by major Auction House marketing advisors as to how the
cargo is to be marketed. If it is decided that, in order to obtain the highest possible price and the Cargos are
to be auctioned, Christies alone has 170 outlets around the world. It may be decided that taking a little
longer and spreading the items through a number of outlets would maximise returns.
I UNDERSTAND THAT THE SALVAGE OPERATIONS SHOULD BE PROGRESSIVELY
COMPLETED WITHIN ONE TO THREE YEARS. WHAT WILL HAPPEN IF ADVERSE
WEATHER CONDITIONS OR UNFORESEEN CIRCUMSTANCES ARISE THAT HINDER THIS?
All salvors are conscious of “best laid plans of mice and men” being upset by a number of unpredictable
problems, but whether it be adverse weather conditions, equipment breakdowns, etc. it is only temporary
before salvage operations can recommence. The wrecks have been there for hundreds of years and they
are not going to disappear.
62
CAN I BE SATISFIED IN THE KNOWLEDGE THAT EXPERT MANAGEMENT IS AVAILABLE
AT ALL TIMES?
Success in this field depends on a painstaking and meticulous tracking down of clues, combined with a
continuous and very necessary scepticism about the validity of all statements. A successful search for a
shipwreck begins with extensive historical research. RSOPS’s management are working with archivists,
historians and other established authorities in this arcane area with access to archives of treasure ships
unparalleled in their comprehensiveness. The current projects have brought together the most experienced
and reputable operators for the salvage expeditions at hand. The selection of a target is the final result of
years of painstaking and meticulous detective work.
Robert F. Marx, author, historian and archaeologist, is a pioneer in the field of underwater archeology and
has few equals in the annuls of modern-day exploration. A prolific researcher, his exhaustive efforts over the
last 50 years has taken him to almost every relevant record repository in the world. He has authored over
800 scientific reports/articles and 63 books on history, archaeology, shipwrecks and exploration. Working in
almost every ocean and sea, Mr Marx has located over 3000 shipwrecks, including two of Christopher
nd
Columbus’ lost in 1504 – a 2 century B.C. Roman shipwreck in Brazil which predates Columbus’ discovery
by 1700 years, and dozens of the Spanish Treasure Fleet. Amongst many notable honors bestowed on Mr
Marx, he was made a Knight Commander in the Order of Isabel the Catholic for his duplication of an
authentic voyage of Columbus’ first voyage of exploration in the Nina II.
“The addition of Robert Marx to the South Sea Expeditions Project is an important step forward for our
company. He brings 5 decades of experience in many key areas including historical research, archaeology
and field operations. We’re very fortunate to have the benefit of his experience and expertise,” commented
Scott Heimdal, President of the RS Operations, LLC. “As we enter the next phase in the implementation of
our business plan, the skills and talents he brings will provide significant benefits for our company, business
partners and investors.”
WHAT DEGREE OF RISK IS INVOLVED?
OWTL, RSOPS and the Project Partners specialize in organizing and conducting searches for lost
shipwrecks. They provide a broad range of expertise relating to all aspects of overall project development,
operational planning and field operations. Their specialties include;
• Project management and organization
• Contract structure and negotiations
• Historical research
• Field operations management
• Logistics planning and preparation
• Application of survey technologies
• Recovery expertise
• Experience in the marketing and sale of artifacts
Naturally, the financial return is dependent on the value of the salvage but the risk is minimized because of
some known locations and the quality of research undertaken. It is envisaged the financial returns to
investors will be substantial.
WHAT IS THE MINIMUM AMOUNT OF INVESTMENT AND WHO CAN APPLY?
This offer is limited to persons who qualify as “Sophisticated Investors” as defined in chapter 6D of the
Corporations Act and there is no minimum investment.
WHAT ABOUT PUBLICITY FOR A SHIPWRECK DISCOVERY?
Open Waters Trading Limited, RSOPS, and the Project Partners help organize and conduct ongoing publicity
campaigns. Their experienced personnel can develop quality material for dissemination while also
facilitating access to major media outlets and wire services.
63
CAN I BE SATISFIED IN THE KNOWLEDGE THAT EXPERT MANAGEMENT IS AVAILABLE
AT ALL TIMES?
Success in this field depends on a painstaking and meticulous tracking down of clues, combined with a
continuous and very necessary scepticism about the validity of all statements. A successful search for a
shipwreck begins with extensive historical research. RSOPS’s management are working with archivists,
historians and other established authorities in this arcane area with access to archives of treasure ships
unparalleled in their comprehensiveness. The current projects have brought together the most experienced
and reputable operators for the salvage expeditions at hand. The selection of a target is the final result of
years of painstaking and meticulous detective work.
Robert F. Marx, author, historian and archaeologist, is a pioneer in the field of underwater archeology and
has few equals in the annuls of modern-day exploration. A prolific researcher, his exhaustive efforts over the
last 50 years has taken him to almost every relevant record repository in the world. He has authored over
800 scientific reports/articles and 63 books on history, archaeology, shipwrecks and exploration. Working in
almost every ocean and sea, Mr Marx has located over 3000 shipwrecks, including two of Christopher
nd
Columbus’ lost in 1504 – a 2 century B.C. Roman shipwreck in Brazil which predates Columbus’ discovery
by 1700 years, and dozens of the Spanish Treasure Fleet. Amongst many notable honors bestowed on Mr
Marx, he was made a Knight Commander in the Order of Isabel the Catholic for his duplication of an
authentic voyage of Columbus’ first voyage of exploration in the Nina II.
“The addition of Robert Marx to the South Sea Expeditions Project is an important step forward for our
company. He brings 5 decades of experience in many key areas including historical research, archaeology
and field operations. We’re very fortunate to have the benefit of his experience and expertise,” commented
Scott Heimdal, President of the RS Operations, LLC. “As we enter the next phase in the implementation of
our business plan, the skills and talents he brings will provide significant benefits for our company, business
partners and investors.”
WHAT DEGREE OF RISK IS INVOLVED?
OWTL, RSOPS and the Project Partners specialize in organizing and conducting searches for lost
shipwrecks. They provide a broad range of expertise relating to all aspects of overall project development,
operational planning and field operations. Their specialties include;
• Project management and organization
• Contract structure and negotiations
• Historical research
• Field operations management
• Logistics planning and preparation
• Application of survey technologies
• Recovery expertise
• Experience in the marketing and sale of artifacts
Naturally, the financial return is dependent on the value of the salvage but the risk is minimized because of
some known locations and the quality of research undertaken. It is envisaged the financial returns to
investors will be substantial.
WHAT IS THE MINIMUM AMOUNT OF INVESTMENT AND WHO CAN APPLY?
This offer is limited to persons who qualify as “Sophisticated Investors” as defined in chapter 6D of the
Corporations Act and there is no minimum investment.
WHAT ABOUT PUBLICITY FOR A SHIPWRECK DISCOVERY?
Open Waters Trading Limited, RSOPS, and the Project Partners help organize and conduct ongoing publicity
campaigns. Their experienced personnel can develop quality material for dissemination while also
facilitating access to major media outlets and wire services.
63
DO RSOPS AND THE PROJECT PARTNERS HAVE ANY RESTRICTIONS WHEN WORKING DO RSOPS AND THE PROJECT PARTNERS HAVE ANY RESTRICTIONS WHEN WORKING
ON THE PROJECTS? ON THE PROJECTS?

Their involvement is conditional on the project meeting strict professional standards. They will only Their involvement is conditional on the project meeting strict professional standards. They will only
participate in projects that involve accredited, professional archaeologists and preservation specialists. participate in projects that involve accredited, professional archaeologists and preservation specialists.
Furthermore, any commercial project must involve appropriate government offices and institutions of the host Furthermore, any commercial project must involve appropriate government offices and institutions of the host
nation. OWTL’s involvement in any particular project is subject to the approval of its Board of Directors. nation. OWTL’s involvement in any particular project is subject to the approval of its Board of Directors.

DO RSOPS AND THE PROJECT PARTNERS WORK ON MUSEUM-SPONSORED PROJECTS? DO RSOPS AND THE PROJECT PARTNERS WORK ON MUSEUM-SPONSORED PROJECTS?

Yes, they work with museums and other non-profit institutions that are involved in the discovery and study of Yes, they work with museums and other non-profit institutions that are involved in the discovery and study of
sunken shipwrecks. In addition to technology, project planning and management provided by RSOPS and sunken shipwrecks. In addition to technology, project planning and management provided by RSOPS and
the Project Partners, OWTL can also assist in developing project funding through donations and corporate the Project Partners, OWTL can also assist in developing project funding through donations and corporate
sponsorships. sponsorships.

DO OPEN WATERS TRADING LIMITED AND THE PROJECT PARTNERS PROVIDE PROJECT DO OPEN WATERS TRADING LIMITED AND THE PROJECT PARTNERS PROVIDE PROJECT
FUNDING? FUNDING?

Under the Marine Salvage Funding Agreement, this is the responsibility of OWTL up to the agreed amount Under the Marine Salvage Funding Agreement, this is the responsibility of OWTL up to the agreed amount
which is what gives OWTL its entitlement to share in the profits of the Projects. which is what gives OWTL its entitlement to share in the profits of the Projects.

Open Waters Trading Ltd does this by arrangements with third party Lenders. This takes time however and Open Waters Trading Ltd does this by arrangements with third party Lenders. This takes time however and
in order to keep the Projects moving OWTL has to provide short term funding. in order to keep the Projects moving OWTL has to provide short term funding.

OWTL has fully satisfied its funding obligations and no further funding is required from it. OWTL has fully satisfied its funding obligations and no further funding is required from it.

WHAT ABOUT ENGINEERING ISSUES? WHAT ABOUT ENGINEERING ISSUES?

Each Project is unique and often involves problems that need to be overcome through the use of a Each Project is unique and often involves problems that need to be overcome through the use of a
customized solution. RSOPS and the Project Partners specialize in engineering project management. Their customized solution. RSOPS and the Project Partners specialize in engineering project management. Their
experienced personnel coordinate engineering efforts to ensure that specialized development is experienced personnel coordinate engineering efforts to ensure that specialized development is
accomplished to exact specifications, delivered on time and under budget. accomplished to exact specifications, delivered on time and under budget.

CAN I TRANSFER MY INTEREST TO ANOTHER PARTY? CAN I TRANSFER MY INTEREST TO ANOTHER PARTY?

Yes. There is a right of transfer subject to the usual sorts of restrictions e.g. the transferee must be Yes. There is a right of transfer subject to the usual sorts of restrictions e.g. the transferee must be
approved by the Company as it is not in the interest of other Investors and Shareholders if the transfer is to a approved by the Company as it is not in the interest of other Investors and Shareholders if the transfer is to a
competitor of OWTL. competitor of OWTL.

WILL I RECEIVE UPDATES AS TO HOW THINGS ARE PROGRESSING? WILL I RECEIVE UPDATES AS TO HOW THINGS ARE PROGRESSING?

Periodical news of the salvage operations will be emailed to you and posted on the websites. Periodical news of the salvage operations will be emailed to you and posted on the websites.

64 64
 Making of Offer
This offer is made to: .....................................................................................................................(Offeree)
of (address): ...................................................................................................................................
This offer is a personal offer made to the above person and may only be accepted by that person.
If this Information Memorandum is passed on or delivered to any other person it does not constitute an offer
to that person, as the offer is personal to the Offeree referred to above.
By taking delivery of this Information Memorandum the Offeree referred to above undertakes and warrants
that they will keep this Information Memorandum within their sole power and control and will not distribute it
to any other person except such professional or other advisors as the Offeree chooses to refer it to for the
purposes of assisting the Offeree in making a decision about whether or not to accept this offer.
How to Apply
1. You must first provide the Company with the evidence from your accountant that you qualify as a
Sophisticated Investor under Chapter 6D of the Corporations Act.
2. Complete the attached Application to Subscribe for a Dividend Entitlement. There is no minimum
investment.
3. Detach Application to Subscribe for a Dividend Entitlement and forward completed document together with
payment and an accountant’s certificate which meets the requirements for the status of ‘Sophisticated
Investor’ under the Corporations Act. These must be forwarded to the Company Lawyers, namely Bennet &
Philp Solicitors – Level 16, 15 Adelaide Street Brisbane QLD 4000 and marked ‘Attention Michael Bigg’.
4. If your Application is accepted, a Declaration of Trust (copy attached), with Schedules 1,2 and 3 completed
and signed by the Director of Recovered Cargos Ltd, will be forwarded to you, together with a certificate for
Dividend Entitlement, within 14 days of receipt of the Application to Subscribe for Dividend Entitlement. In
the interim, the Trustee acknowledges and declares that upon payment of the Purchase Price, it will be held
in our lawyer’s trust account pending acceptance or rejection of your Application.
65
Making of Offer
This offer is made to: .....................................................................................................................(Offeree)
of (address): ...................................................................................................................................
This offer is a personal offer made to the above person and may only be accepted by that person.
If this Information Memorandum is passed on or delivered to any other person it does not constitute an offer
to that person, as the offer is personal to the Offeree referred to above.
By taking delivery of this Information Memorandum the Offeree referred to above undertakes and warrants
that they will keep this Information Memorandum within their sole power and control and will not distribute it
to any other person except such professional or other advisors as the Offeree chooses to refer it to for the
purposes of assisting the Offeree in making a decision about whether or not to accept this offer.
How to Apply
1. You must first provide the Company with the evidence from your accountant that you qualify as a
Sophisticated Investor under Chapter 6D of the Corporations Act.
2. Complete the attached Application to Subscribe for a Dividend Entitlement. There is no minimum
investment.
3. Detach Application to Subscribe for a Dividend Entitlement and forward completed document together with
payment and an accountant’s certificate which meets the requirements for the status of ‘Sophisticated
Investor’ under the Corporations Act. These must be forwarded to the Company Lawyers, namely Bennet &
Philp Solicitors – Level 16, 15 Adelaide Street Brisbane QLD 4000 and marked ‘Attention Michael Bigg’.
4. If your Application is accepted, a Declaration of Trust (copy attached), with Schedules 1,2 and 3 completed
and signed by the Director of Recovered Cargos Ltd, will be forwarded to you, together with a certificate for
Dividend Entitlement, within 14 days of receipt of the Application to Subscribe for Dividend Entitlement. In
the interim, the Trustee acknowledges and declares that upon payment of the Purchase Price, it will be held
in our lawyer’s trust account pending acceptance or rejection of your Application.
65
 Recovered Cargos Ltd Recovered Cargos Ltd
60/2 Melita Street 60/2 Melita Street
Valletta, VLT12 MALTA Valletta, VLT12 MALTA
Telephone: (+356) 2205 6885 Telephone: (+356) 2205 6885
Facsimile: (+356) 2205 6886 Facsimile: (+356) 2205 6886
Email: info@recoveredcargos.biz Email: info@recoveredcargos.biz

Application Information Application Information

a) The amount of dividend entitlements an investor may subscribe for is at a rate of 1% for a) The amount of dividend entitlements an investor may subscribe for is at a rate of 1% for
US$50,000.00. There is no minimum amount. US$50,000.00. There is no minimum amount.

b) Applications can be made in the name of a natural person(s), a company or other legal identity. b) Applications can be made in the name of a natural person(s), a company or other legal identity.

c) Please ensure that international bank cheques and/or telegraphic transfer of funds are payable in US c) Please ensure that international bank cheques and/or telegraphic transfer of funds are payable in US
dollars to the following account : dollars to the following account :

Banker: Commonwealth Bank Banker: Commonwealth Bank

240 Queen Street 240 Queen Street
Brisbane QLD 4000 Brisbane QLD 4000

Account Name: Bennett & Philp Solicitors Trust Account Account Name: Bennett & Philp Solicitors Trust Account

Account Number: BSB 064 000 Account Number: BSB 064 000
A/C 11425154 A/C 11425154

Please note: Offshore application monies are to be paid by telegraphic transfer. Please note: Offshore application monies are to be paid by telegraphic transfer.

(d) Your bank deposit receipt must be faxed to our office with your details so that we can match the (d) Your bank deposit receipt must be faxed to our office with your details so that we can match the
deposited funds to you. deposited funds to you.

(e) We will process your application within fourteen days and all necessary documentation will be (e) We will process your application within fourteen days and all necessary documentation will be
forwarded to you. forwarded to you.

(f) Please return by fax to our office a copy of signed Application Form. (f) Please return by fax to our office a copy of signed Application Form.

Please do not hesitate to contact us should you require any further information. Please do not hesitate to contact us should you require any further information.

66 66
Application to Subscribe for Dividend Application to Subscribe for Dividend
Entitlement Entitlement
Recovered Cargos Ltd ("the Company") Recovered Cargos Ltd ("the Company")
60/2 Melita Street 60/2 Melita Street
Valletta, VLT12 MALTA Valletta, VLT12 MALTA
Telephone: (+356) 2205 6885 Telephone: (+356) 2205 6885
Facsimile: (+356) 2205 6886 Facsimile: (+356) 2205 6886
Email: info@recoveredcargos.biz Email: info@recoveredcargos.biz

Full name: _______________________________________ (the "Applicant") Full name: _______________________________________ (the "Applicant")

Address: ______________________________________________________________ Address: ______________________________________________________________

Occupation:____________________________________________________________ Occupation:____________________________________________________________

Phone: (work) ________________________ (home) ____________________ Phone: (work) ________________________ (home) ____________________

Fax: (work) ________________________ Email: ____________________ Fax: (work) ________________________ Email: ____________________

The Applicant hereby applies to purchase the percentage of Dividend Entitlements of the The Applicant hereby applies to purchase the percentage of Dividend Entitlements of the
Company equating to the percentage specified below at the price of US$50,000 for each 1% of Company equating to the percentage specified below at the price of US$50,000 for each 1% of
the Company’s Dividend Entitlement as follows: the Company’s Dividend Entitlement as follows:

Percentage of Total Dividend Price Percentage of Total Dividend Price

Entitlements (Each 1% = US$50,000) Entitlements (Each 1% = US$50,000)

The Applicant acknowledges that this application may be accepted in whole or in part, or not at
all, by the Company. If accepted by the Company, acceptance shall take place once payment for
the Dividend Entitlements applied for has been received by the Company in cleared funds and
the Declaration of Trust has been entered into.
The Applicant acknowledges and warrants that the person to whom the offer is made is a
professional and Sophisticated Investor (as defined in Chapter 6D of the Corporations Act) and
has made his own investigations concerning the matters set out in this Information memorandum.
The Applicant acknowledges that this application may be accepted in whole or in part, or not at
all, by the Company. If accepted by the Company, acceptance shall take place once payment for
the Dividend Entitlements applied for has been received by the Company in cleared funds and
the Declaration of Trust has been entered into.
The Applicant acknowledges and warrants that the person to whom the offer is made is a
professional and Sophisticated Investor (as defined in Chapter 6D of the Corporations Act) and
has made his own investigations concerning the matters set out in this Information memorandum.

Dated the ______________________day of ______________________ 2007 Dated the ______________________day of ______________________ 2007

Signed for and on behalf of the Applicant(s) ________________________ Signed for and on behalf of the Applicant(s) ________________________

________________________ ________________________

N.B. If the Applicant(s) is a Company, Trust, Superannuation Fund, etc. can you N.B. If the Applicant(s) is a Company, Trust, Superannuation Fund, etc. can you
please provide your name(s) here to verify our records please provide your name(s) here to verify our records

NAME(S):................................................................................................................... NAME(S):...................................................................................................................
67 67
 RECOMMENDED READING RECOMMENDED READING
BY AUTHOR ROBERT F. MARX BY AUTHOR ROBERT F. MARX

Shipwrecks in the Americas In the Wake The Search for Sunken Treasure: Exploring Shipwrecks in the Americas In the Wake The Search for Sunken Treasure: Exploring
of Galleons the World's Great Shipwrecks of Galleons the World's Great Shipwrecks

Encyclopedia of Western Atlantic Deep, deeper, deepest: Man's Treasure Lost at Sea: Diving to the World's Encyclopedia of Western Atlantic Deep, deeper, deepest: Man's Treasure Lost at Sea: Diving to the World's
Shipwrecks and Sunken Treasure exploration of the sea Great Shipwrecks Shipwrecks and Sunken Treasure exploration of the sea Great Shipwrecks

Treasures from the Sea: Exploring the The History of Underwater Exploration Buried Treasures You Can Find: Over 7500 Treasures from the Sea: Exploring the The History of Underwater Exploration Buried Treasures You Can Find: Over 7500
World's Great Shipwrecks Locations in All 50 States World's Great Shipwrecks Locations in All 50 States

68 68
Notes Notes

69 69
There is something in a treasure that fastens upon a man’s mind. He
will pray and blaspheme and still persevere, and will let his last
hours come upon him unawares, still believing that he missed it only
by a foot. He will see it every time he closes his eyes. He will never
forget it until he is dead and there is no way of getting away from a
treasure once it fastens itself upon your mind.
Joseph Conrad