Mentor Capital Founded with $1,000 - 23 Years Ago

In August 1985, Chet Billingsley formed Tech Start in the heart of Silicon Valley. As the focus of that firm changed to investment banking from start-ups and turn-arounds, the partnership evolved into Mentor Capital in 1991. The Company was incorporated on July 29, 1994.

On January 1, 1995, a small chain of athletic clubs, investment interests from Mentor Capital (a California sole proprietorship of Mr. Billingsley), investment interests from Tech Start (LP) and Mentor Investors - I, LP, plus a residual promissory note of $841,957 from the sale of Best Express Foods (All under common control of Mr. Billingsley) were contributed in the initial formation of the Company.

In 1994 and 1995 the Predecessor was listed in the San Jose Business Journal as the 6th and 22nd fastest growing privately held company in Silicon Valley.

In 1997, the company over-expanded and encountered financial difficulty and sold its assets. The residual shell entered into a reverse merger with a group of (15) fifteen mostly oil and gas partnerships. As part of the merger process, current management of the Company uncovered that the private syndicators were defrauding the private investors. At the request of the private investors, the SEC, FBI, Postal Inspector and California Department of Corporations were alerted. Management of the boiler room operation were eventually imprisoned for (6) six years. To scrub clean any residual syndicator claims the now public group of oil and gas interests went through a bankruptcy reorganization. The oil and gas properties were sold off and proceeds were distributed. To assist in a recovery, the courts allowed the issuance of approximately $145 Million in warrants to the claimants and creditors. The warrants were in (4) four steps at $1, $3, $5 and $7 per share. The Court order serves as a registration and all the shares, warrants and shares that spring from the warrants are freely tradable. An SEC "No Comment" letter was received and the Plan was confirmed January 11, 2000.

The Company began to acquire or invest in smaller private businesses and retains a 50% interest in a s $1.2 Million revenue service business in Phoenix.

In May 2007, the Company identified a significant opportunity in funding hedge funds. Seven hundred hedge funds were contacted and a lead hedge fund with $16.9 Million in assets under management was selected. In October 2007, the Company negotiated to receive 80% of the net management fee and performance fee of the fund in exchange for a commitment to contribute $125 Million in permanent capital to the fund. After the share price hits $8 per share for 90 days, then the percentage of the net management and performance fee for the then future incremental additions to the fund, decreases to 20%. The hedge fund agreement was effective October 1, 2007 and investment earnings as of the start of trading is $238,091. The (7) seven year historic return to fund investors has been 19% and an addition 3% will come to Mentor Capital through its 80% fee sharing.

In order to ensure that adequate warrants would be exercised, the shareholders voted 84% in favor of a 1,000 to 1 reverse split which reduced outstanding shares to 15,075. Also, in the case of a stagnating share price, the fund manager can direct the Company to reduce the strike price on the higher priced warrants so that they are in-the-money.

The Company has had preliminary discussions with three additional funds in other market sectors. In the future, the Company hopes to enter into agreements with approximately fifteen (15) hedge funds in various sectors to complete its fund-of-funds strategy.

Additionally, any number of private companies may be financed or acquired through an internal "Owners Fund".

The Company primary focus is to allocate all of its $145 Million in warrant proceeds. Follow on capital actions will perhaps involve PIPE investments from institutional investors.

At the present time, the Company is not party to any investigation nor aware of any threatened legal or administrative proceeding involving the Company.