Sovereign Exploration Associates International Inc. (SVXA)
Company Information

Company History
Site Management Process, Efficiency and Economics
Business Structure Used to Minimize Cost
Mother Nature’s Method of Preserving Sites
Intellectual Property
Target Portfolio Criteria
Current Portfolio

Company History
Sovereign Exploration Associates International (SVXA) is focused on changing the image and professionalism of maritime artifact exploration, discovery and recovery. The foundation of SVXA goes back more than 25 years to a core team of explorers, divers, historians and marine archaeologists. This vision has grown over time to include a variety of business roles as well. The vision of this core group of associates could be achieved only through the public markets. Management evaluated a number of corporate vehicles to find one that would meet the needs of our portfolio companies. Through a stock exchange agreement with former management of CALI Holdings, current management of SVXA assumed control of a publicly traded company. Substantially all investments and portfolio companies of CALI were divested, and all previous management resigned. All members of the Board who were associated with prior management have also resigned. SVXA is now moving forward to focus on the development of and investment into companies that provide a compelling business opportunity in the area of maritime exploration and artifact recovery.

SVXA will continue to seek opportunities to invest in portfolio companies that offer the opportunity to recover lost artifacts and reward investors.

Site Management Process, Efficiency and Economics
The management of recovery teams and resources is unique within SVXA portfolio companies. ARC, SRand SEAI of SPAIN have the ability to move resources within the portfolio of sites. Weather, tides, currents, and sea conditions can disrupt recovery on any one site at any time. Movement of resources between local sites when conditions do not allow for safe recovery, as well as the movement of resources seasonally to maximize efficiency significantly increases recovery effectiveness as measured by time in the water per diver, per week.

A vast difference exists between the success of inshore versus offshore recovery sites. The dynamics associated with inshore, shallow-water projects are far less costly and provide ARC, SR, and SEAI of SPAIN with a higher likelihood of greater recovery-per-dive than achieved by organizations that focus solely on deep-water recovery operations. Scaling based on divers vs. equipment is far less costly and considerably more efficient. Mechanical difficulties and challenges at extreme depths greater than 200 feet can be substantial. While many deep-water sites provide significant opportunities for recovery, the management of ARC, SR, and SEAI of SPAIN do not see a benefit in targeting these types of sites during the next two to three years.

Central oversight of projects allows for SVXA’s multiple, shallow-water offshore sites to be managed more efficiently. The deployment of resources on these different sites in response to changing conditions at any one site provides important operational options. ARC, SR and SEAI of SPAIN’s large inventory of sites allows the three companies to spread risk, so that deep-water offshore projects do not consume significant resources without organizational return.

Business Structure Used to Minimize Cost
The cost of recovery in shallow water is considerably less than recovery in deep water. These sites are economically advantageous because they permit the leasing of all major equipment, including dive ships, for only the period of time they are actually used in the operation. Less costly technological materials, such as compressors, small zodiacs and dive equipment for recovery teams require minimal maintenance and have relatively long life-cycles. This enables ARC, SR, and SEAI of SPAIN to standardize equipment to increase site efficiency, without entailing a large investment in ships that require costly engineering teams and extensive support staffs to be maintained. ARC, SR and SEAI of SPAIN also use a combination of salaried divers and contractors to reduce personnel costs. An important goal of ARC, SR and SEAI of SPAIN is to dive and retrieve artifacts every day that recovery operations are being conducted on a site. The dynamics of the operations make this highly likely.

Mother Nature’s Method of Preserving Sites
Some recovery companies feel that shallow, inshore sites have a higher risk of being pillaged over time. Through a well-developed site selection process and refined recovery methodologies, ARC, SR, and SEAI of SPAIN have proven that this perception is inaccurate. Many sites are protected naturally by geography, the remoteness of the location, and conditions that include tides, currents, water temperatures, weather patterns, and other seasonal dynamics. Many of these conditions contributed to the initial loss of these vessels and made recovery of their artifacts difficult or impossible until recently. Time has also played a major role in protecting the sites. Sites that are 200 to 300 years old have been preserved by a number of natural processes that include, but are not limited to concretion, ice, and the natural movement of the sea bed. ARC, SR, and SEAI of SPAIN have identified other factors that are proprietary to their site selection process and have increased the likelihood of major recoveries on shallow inshore sites.

Intellectual Property
The historic roles of the ships SEAI explores are as diverse as the times in which they sailed. This creates significant intellectual property opportunities that will be told through books, articles, documentaries, movies, and other media.

While many of the sites explored by ARC, SR and SEAI of SPAIN have historical importance of their own, the large inventory of artifacts recovered to date has identified threads that link the sites historically. Unlike any company that has engaged in the recovery of ship cargoes, ARC, SR, and SEAI of SPAIN will be able to collaborate on recovery initiatives in order to share site information that will support or change the understanding of historical events.

Target Portfolio Criteria
Sovereign Exploration Associates International targets portfolio companies that:

• Have government-granted permits, licenses and/or rights to significant marine archaeological sites.
• Combine sound business practices with extensive expertise in marine exploration.
• Have a large, proven inventory of vessels with artifacts of historical and intrinsic value.
• Have diverse inventories from different countries of origin and different time periods.
• Maintain proven processes for retrieving important archaeological items for careful conservation and preservation.
  

Current Portfolio
Artifact Recovery & Conservation, Inc. (ARC)

• Management with over 30 years of recovery experience.
• Owns the rights to five sites held by the Nova Scotia explorations company LeChameau Explorations Ltd.
• The ships contain diverse cargoes, including money, bullion, religious and military artifacts, jewelry and other personal items spanning the period from 1533 to 1900

Sea Research (SR)

• Management with over 15 years of recovery experience.
• Owns seven (7) sites, several of which have multiple ships of Spanish, French and British origin.
• The ships contain diverse cargoes, including money, bullion, religious and military artifacts, jewelry and other personal items.

Sovereign Exploration Associates International, Inc. of Spain (SEAI of SPAIN)

• Has operations in Spain and Portugal.
• Has interests in the finder rights to certain significant Spanish wrecks.
• Greatly compliments the opportunities associated with other SVXA portfolio companies.