Scoria Capital Partners LP

Fees and Compensation
Scoria receives compensation from the Advantage Funds comprised of fees based on a percentage
of assets under management and performance-based compensation in the form of an incentive fee
from the Master Fund to Scoria. The management fee is paid by the Master Fund quarterly in
advance. The incentive fee is based on realized and unrealized gains and is paid annually or upon
an Advantage Fund investor’s withdrawal of capital, subject to a high water mark. Scoria’s fee
schedule is omitted because this brochure is only being delivered to qualified purchasers, as
defined in the Investment Company Act of 1940 and the rules thereunder. Scoria, in its sole
discretion, may reduce, waive or calculate differently the management fee or incentive allocation
with respect to one or more Investors (including employees or affiliates of Scoria). The
management fee and incentive fee are deducted directly from the Master Fund.

Expenses
Each Feeder Fund is responsible for paying its operating expenses — primarily its pro rata share
of the operating expenses incurred by the Master Fund — including but not limited to: legal,
auditing, accounting and other professional expenses (for example, accounting and tax advisory
fees, tax compliance and filings related costs, legal fees charged in negotiating prime brokerage,
ISDA Master Agreements and related custody and segregation agreements, repurchase agreements
or other trading or financing agreements); administration expenses and fees including, but not
limited to, the provision of any investment/management related reporting; research expenses
(including research-related and due diligence travel); investment expenses such as commissions,
ticket charges, prime brokerage fees, give up fees, borrow costs, interest on margin accounts and
other indebtedness and similar charges, as well as the expenses incurred by Scoria in connection
with trading the Master Fund’s account; order management systems; custodial fees; bank and wire
service and transaction fees; costs and expenses relating to the Advantage Funds and Scoria and
its personnel obtaining and maintaining regulatory licenses as well as of maintaining U.S. and
non- U.S. registration, regulatory and self-regulatory filings (including, without limitation, Forms
13D, 13F, 13G 13H, , ADV and CPO-PQR, and other filings and reports the preparation and
submission of which currently or in the future maybe required of the Scoria under applicable law);
costs relating to the fulfillment of bonding requirements under ERISA, if applicable; and other
expenses and legal fees related to the purchase, sale and maintenance of the Advantage Fund’s
assets as determined by the Scoria (including, but not limited to, withholding, income, other taxes
and similar amounts). The Feeder Fund’s operating expenses also include the fees and expenses
of the Feeder Funds and the Master Fund’s directors (including a portion of the directors’ and
officers’ insurance and errors and omissions insurance), as well as a portion of Scoria’s owners’,
directors’, officers’ and employees’ errors and omissions insurance and other costs associated
with the Feeder Fund’s business, such as the costs and expenses associated with issuing new
interests as well as revising the Feeder Fund’s offering and operative documents.

In general, the Feeder Funds will bear their pro rata share of the Master Fund’s costs and
expenses determined in accordance with the relative capitalizations of the Feeder Funds.
However, if a certain Master Fund cost or expense relates solely to one Feeder Fund, Scoria may,
but is under no obligation to, allocate such cost or expense solely to the particular Feeder Fund. If
a Feeder Fund and Scoria become responsible for some or all of a particular cost, Scoria may
allocate the cost among Scoria and the applicable Feeder Fund in its discretion in a fair and
equitable manner. Organizational and initial offering costs of the Advantage Funds, including
legal, accounting, printing, marketing and comparable expenses (not including any placement
fees), are expected to be amortized over the first 60 months. Scoria will initially absorb these
costs, for which it will be reimbursed by the Advantage Funds. Certain withdrawals of capital
from a Feeder Fund may also be subject to a 3% redemption fee, payable to the affected Feeder
Fund, for redemptions made in less than the term the investor agreed to, as described in the
relevant offering documents.

The Feeder Funds will invest substantially all of its assets through a “master-feeder” fund
structure in the Master Fund. Each Feeder Fund that invests in the Master Fund indirectly will
bear the administrative and other expenses of the Master Fund pro rata based on its ownership

interest in the Master Fund. Virtually all expenses, including the Management Fee and the
Incentive Allocation, will be incurred at the Master Fund level itself.

Performance Based Fees and Side-by-Side Management
Scoria receives performance-based compensation in the form of an incentive fee equal to a
percentage of net profits (including both realized and unrealized gains and losses), allocable to
each Investor’s capital account, paid at the Master Fund level, subject to a high water mark. The
percentage of net profits is determined by the Investor’s Series of Interest.

For the Scoria Fund investors who invest in the Advantage Funds, any outstanding high water
marks will be maintained for incentive fee calculations in the Advantage Funds. Additionally, for
Scoria investors at May 31, 2016 the original investment date will be maintained for purposes of
calculating any applicable lock-up period in the Advantage Fund.

Scoria’s ability to earn performance-based compensation aligns the interests of Scoria and the
Advantage Funds in some ways, but the arrangements also pose potential conflicts of interest.
Scoria may have an incentive to invest the Advantage Funds’ capital more speculatively than
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Types of Clients
Scoria provides investment advisory services to the Advantage Funds. Investment advice is
provided directly to the Advantage Funds, subject to the direction and control of the respective
General Partner, Investment Manager, and/or Directors of each Advantage Fund and not
individually to the Investors. In order to invest, Investors must satisfy certain eligibility and
suitability requirements which are described in more detail in the relevant Feeder Fund’s
confidential offering documents.

The minimum initial and subsequent investments in the Feeder Funds are $5,000,000 and
$1,000,000, respectively, subject to Scoria’s determination to accept a lesser amount.

Method of Analysis, Investment Strategies and Risk of Loss
Investment Process and Strategies
The Scoria investment process focuses on fundamental research. Scoria has negotiated an
exclusive right to utilize research and reports developed by a third party geologic research team
which operates a suite of private equity funds. Scoria believes the quasi real-time input from this
team will allow it to identify key investment themes that may have lasting implications throughout
a number of sectors.

The Scoria investment process begins with identifying emerging energy themes that penetrate
multiple sub-sectors. These are the foundation for the construction of the Master Fund’s core
positions. Scoria then specifies targets (e.g., 3 month, 12 month, base and stress case) based on its

fundamental analysis. In addition, the CIO evaluates the energy sector relative to his macro- and
commodity outlook, market consensus, forward strip and reasonable stress scenarios.

Scoria expects to follow approximately 350-450 issuers in its coverage universe. These will be
divided into approximately 30 sub-sectors and analyzed and ranked with respect to both
fundamentals and valuation. A risk/reward rating is assigned to each group and re-evaluated
periodically, or as the CIO otherwise determines based on market events.

Scoria investment approach emphasizes catalyst-rich ideas that reflect key sector themes, a
transitioning company narrative or companies with complex structures. Positions are researched
extensively until Scoria is able to establish a 3 and 12 month risk/rewards estimate can be
established.

The “best ideas” (often those with commodity-independent catalysts exposed to geologic and/or
technology trends) are added to the portfolio, guided by investment and risk parameters. Others
are monitored for a catalyst or inflection point or more attractive entry level.

Finally, Scoria will also execute opportunistic short-term trading of the aforementioned issuers if
it determines these opportunities exist due to daily volatility in the market.

In the future, Scoria may offer additional products, funds and/or managed accounts that utilize
substantially similar research inputs and investment processes as the Master Fund.

Overall Leverage
In general, the Master Fund’s gross market exposure will range from 1 to 2 times but may on rare
occasions exceed 2.5 times, in Scoria discretion. Scoria may modulate the Master Fund’s gross
market exposure significantly from time to time in response to Scoria perception of changing
market conditions, volatility and risk.

There can be no assurance that Clients or Investors will achieve their investment objectives.
Investing in securities and commodity interests involves risk of loss that Investors should be
prepared to bear.

The following risk factors do not purport to be a complete enumeration or explanation of
the risks involved in an investment in Scoria’s investment programs. Please refer to each
Fund’s offering documents for a more detailed description of such risks.

                                 Certain General Market Risks

Interest-Rate Risks
The prices of the equities held by the Master Fund may be sensitive to interest-rate fluctuations.
In addition, interest-rate increases generally will increase the costs of the leverage used by the
Master Fund.

The operations of the issuers in which the Master Fund invests may also be sensitive to interest-
rate changes. To the extent such issuers rely on financing for working capital needs, their
profitability will be materially impacted by changes in interest rates, and such changes can also

materially affect consumer demand for many products in the sectors in which the Master Fund
will trade.

Scoria does not purport to have any expertise predicting future interest-rate movements,
particularly as interest rates can be materially influenced by government interests reflecting
changing political as well as macro-economic factors.

Inflation
There has been an unusually low rate of inflation in the United States and most other developed
economies for some time. At the same time, central governments have been injecting
unprecedented amounts of financial stimulus into these economies — historically a recurring
cause of serious inflation. Were significant inflation to occur, the effect on Scoria strategy could
be materially adverse — while unpredictable, stocks have traditionally been considered a form of
“hedge” against inflation, but that is not always the case (particularly in the case of any individual
stock) and the Master Fund will take short as well as long positions.

Financing Arrangements; Availability of Credit
The use of leverage is integral to many of the Master Fund’s strategies. The Master Fund depends
on the availability of credit to finance its portfolio. If the Master Fund’s counterparties incur
increased financing costs, these costs will likely be passed on to the Master Fund. Despite
incurring such fees and expenses, there can be no assurance that the Master Fund will, in fact, be
able to access adequate amounts of credit. As a general matter, the banks and dealers that provide
financing to the Master Fund can apply essentially discretionary margin, haircut, financing,
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