GRANDSLAM EQUITY

Grandslam Equity and/or their affiliate company will issue a monthly check (or wire) along with a portfolio over-view and comments about that month’s distribution. Investors are also encouraged to login to the Grandslam Equity website where they are able to access complete detail pertaining to their portfolio and their investment.

Grandslam Equity LLC manages the royalty interests, starting with payment by the oil and gas well operators all the way through distributions to you. Grandslam Equity first makes certain that the royalty interests are recorded as owned by your investment entity and that the operators are notified to begin payments to Grandslam Equity. Grandslam Equity collects the revenue from the various operators, performs the monthly reconciliation, monitors the wells and leases, uploads production and revenue detail into our secure client portals for investor access and distributes funds to investors.

The first distribution is typically 2 to 4 months from the close of the offering. After raising the funds for approximately 45-90 days, Grandslam Equity aims to complete new investor title transfer and ownership deed process with-in 30-60 days after that. There is a natural accounting lag in the royalty industry of about 60-90 days. In other words, investors are always paid in arrears by two to three months. The combination of the time to raise investment capital, transfer ownership and the industry's natural accounting lag, causes a delay from the time of investment to the first check.

Your monthly distribution is net of costs and taxes, other than income tax. Grandslam Equity charges 1% Management Fee of all Gross Income generated from the assets of Grandslam Minerals 1, L.P. The portfolio also pays costs attributable to its royalty interests or allocated by Grandslam Equity, such as state income or severance taxes, filing fees, reserve reports, audit fees, check processing fees, and revenue account system costs. Once Investors make their original investment back a Carry of 25% kicks-in for the general partner. We chose to go this route such that our motives are aligned the same and want to prove ourselves before taking the carried interest.

Each Limited Partner will be furnished a Quarterly and Annual report containing the following: (1) audited financial statements, including a balance sheet and statements of income, partner's equity and changes in financial as of and for the fiscal quarter then ended; and (2) a summary of description of all purchases, sales or other transfers of /royalties made during the immediately preceding fiscal quarter, including the amounts and general terms thereof, and the parties involved therein.

An outside accounting firm shall provide annual financial statements of the partnership and annual K-1's. The internal books and bank statements shall be available to Partners at all times with reasonable prior notice.