KLCM Advisors Inc

Fees and Compensation
Management fees are based upon a percentage of assets. The standard fee is 1.0% per year on equity
assets, and 0.6% on fixed income assets managed. Existing clients' actual fees are based on the terms
negotiated when those relationships were established and are detailed within the investment management
agreement. Management fees are negotiable and can include fees based on a percentage of assets and
fixed fees. KLCM does not charge advisory fees to certain individuals at the firm's discretion, including
employees and their family members.

While KLCM's fee schedule creates an incentive to encourage clients to remain invested, KLCM prioritizes
acting in the client's best interest as described within this brochure.

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KLCM fees are billed quarterly in arrears. This quarterly rate is applied to the average month-end market
value for the previous quarter. KLCM aggregates the assets for clients with tiered fee schedules when
calculating fees. KLCM will consider the receipt of cash flows received during the quarter in calculating
fees separately, based on the size and timing of the cash flow relative to the account's size, and will adjust
the fees when the cash received or disbursed is deemed material.

Clients may elect to be billed directly for fees or authorize KLCM to debit fees from their accounts via their
custodian. Each client receives a quarterly invoice.

KLCM bills all terminating clients for fees due upon receipt of the notice of termination.

Besides management fees, clients will pay third-party custody fees, brokerage fees, transaction costs, and
mutual fund and exchange-traded fund (ETF) expenses. For more details about brokerage and transaction
costs, please refer to Item 12, "Brokerage Practices."

KLCM uses account market values supplied by the clients' custodians or an independent pricing service to
calculate investment performance and client fees. KLCM reviews prices provided by these pricing sources
for reasonableness. While this rarely occurs, if a pricing source does not provide a price or if we believe a
price supplied does not reflect an accurate market value, we will attempt to obtain a price from separate
independent pricing sources.

                                                                               Form ADV Part 2A, Item 6

Performance-Based Fees and Side-by-Side Management
KLCM does not charge or accept performance-based fees or compensation.

                                                                               Form ADV Part 2A, Item 7

Types of Clients
KLCM provides investment advice to high-net-worth individuals, pension and profit-sharing plans, trusts,
estates, charitable organizations, and corporations or business entities. All clients are required to enter
into an investment management agreement before we provide our services.

The general minimum account size for management is $500,000. Exceptions are made based on
investment client type, account size, relationship size, service requirements, and other factors.

We have an incentive to encourage individual retirement account owners to rollover an employer retirement
account into a KLCM-managed Individual Retirement Account, which results in higher fees for KLCM. The
decision of whether to rollover an employer retirement account rests with you, the individual account owner.
Unless you independently choose to rollover the account, we will provide information to help you make a
decision that is in your best interests.

Select clients are family members or personal friends with firm personnel, including firm partners. These
clients maintain separate personal relationships with firm personnel. At times, firm personnel will engage
in personal business dealings with these clients as a natural extension of their outside personal
relationships.

Given the inherently close working relationship we have with our clients, we expect relationships with clients
to continue to evolve. These expanded relationships present an inherent conflict to provide preferential
treatment to certain clients. We believe our firm's steadfast dedication to fairness and integrity, along with
our policies and procedures designed to promote the fair and consistent treatment of clients as summarized

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within this disclosure brochure, help to mitigate this conflict. Also, employee outside business activities
require advanced approval, with the goal of identifying and determining how to mitigate conflicts identified.

                                                                              Form ADV Part 2A, Item 8

Methods of Analysis, Investment Strategies, and Risk of Loss
The primary focus of KLCM equity investing is to buy companies at compelling valuations while minimizing
the risk of capital loss. In our experience, opportunities arise when the market overreacts to disappointing
short-term results or due to the general neglect or protracted unpopularity of a company or sector. Our
approach is to apply intensive research and direct and typically extended management contact to identify
those situations with limited risk and substantial upside over two to three years. Emphasis on cash flow
and an underlying firm's enterprise value, isolating a catalyst for change, looking beyond short-term results,
and understanding management objectives are critical to the process.

We engage in fundamental fixed income analysis for fixed income securities to identify issuers with sound
revenue sources, reasonable leverage, and a track record of profitability in most years. We also apply
traditional credit analysis to assess the capacity, collateral, and character of each issue. Despite rigorous
analysis, the possibility of loss still exists.

We do not intend the following summary of risk factors to be a complete and comprehensive statement of
all risks related to investing generally or investing with KLCM.

General Risk of Loss. Investing is a speculative endeavor involving risk, which includes the possible loss
of principal. Past performance is not indicative of future results.

Market Risks. The value of the securities held in client accounts tends to increase or decrease in response
to movements in the market. Stocks generally fluctuate more than bonds and may decline significantly
over short periods.

Management Risk. The profitability of a significant portion of our recommendations depends to a great
extent upon correctly assessing the future course of price movements of stocks and bonds. We cannot
assure we will predict those price movements accurately. Our strategies do not, however, attempt or
depend on our ability to predict the direction of the overall market in the short to intermediate term.

Reliance on Key Personnel. The investment management activities of our firm rely on the business and
investment acumen of our management team. If any member of our management team leaves, it could
negatively impact our ability to manage client portfolios.

Equity Securities Risk. Equity securities are inherently volatile, susceptible to broad market fluctuations
and economic downturns. This volatility can lead to significant price swings, potentially resulting in capital
losses for investors. The performance of an individual equity security is also directly linked to the issuing
company's financial health, management decisions, and industry trends. Poor company performance,
negative events, or industry disruptions can significantly impact the security's value.

We strive to minimize equity risk through in-depth fundamental analysis with attention devoted to cash flow
and balance sheet issues and careful attention to valuation. We will not buy stocks that are currently in
vogue with high valuations and high expectations. Avoiding overpriced securities and employing a
disciplined sell process is critical to constraining risk.

Fixed Income Securities Risk. Fixed income securities carry the risk that the issuer may fail to meet their
interest or principal repayment obligations. This risk is generally higher for corporate bonds compared to
government bonds. Also, changes in interest rates can affect the market value of fixed income securities.

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