The Electrum Group LLC

ITEM 5. FEES AND COMPENSATION

For its investment advisory services to the Electrum Client, the Adviser receives a fee equal to the Adviser’s
costs plus an agreed markup, and certain of the Adviser’s senior officers and employees are entitled to
receive performance-based compensation.

For its investment advisory services to ESOF, the Adviser receives a quarterly management fee of 2% per
annum (the “Management Fee”). In addition, the ESOF GP receives a 20% carried interest above an 8%
compounded annual preferred return that is subject to a potential giveback at the end of ESOF’s life if the
ESOF GP has received excess cumulative distributions. As further described below, the Adviser and/or its
affiliates may receive additional compensation in connection with management and other services
performed for portfolio companies and a portion of such additional compensation may offset the
Management Fee otherwise payable to the Adviser. The Management Fee is generally billed quarterly in
advance and is pro rated for any period that is less than a full fiscal quarter.

The Management Fee and the carried interest may be waived or reduced at the discretion of the Adviser
and the ESOF GP. In addition, the ESOF GP may enter into “side letters” or similar agreements with
certain investors pursuant to which the investors are granted specific rights, benefits, or privileges that are
not made available to investors generally.

Other Adviser Compensation and Other Fees and Expenses

The Adviser, its Investment Personnel and/or its affiliates receive business consulting, monitoring and/or
board of director fees from certain portfolio companies in which Clients invest. The Adviser, its Investment
Personnel and/or its affiliates may be entitled to receive topping, break-up, monitoring, directors’,
organizational, set-up, advisory, and other similar fees in connection with the purchase, monitoring, or
disposition of investments or from unconsummated transactions, including warrants, options, derivatives
and other rights, in each case valued as of the grant date (“Other Fees”).

With respect to ESOF, its pro rata share of such Other Fees will first be applied to reimburse the Adviser,
its Investment Personnel and/or its affiliates for their unreimbursed out-of-pocket expenses in connection
with the transaction giving rise to such Other Fees and 100% of the balance, if any, net of any unrecouped
fees and expenses for transactions not consummated and other Fund Expenses (as discussed below) that the
Adviser, its Investment Personnel and/or its affiliates have elected to pay, will be applied to reduce the
subsequent installments of the Management Fee. In the event any amounts applied to reduce subsequent
installments of the Management Fee in any quarter exceed the Management Fee payable during such quarter,
such excess amount will be carried forward and applied against subsequent Management Fees that may
become due and payable. Any Other Fees remaining after the application of this offset mechanism will be
paid or contributed to ESOF and will be distributed by ESOF as net proceeds.

Clients bear all expenses relating to their operations and their proposed and actual investments (whether or
not consummated), including, but not limited to: expenses of counsel, consultants and advisers (including
independent contractors who are geological or technical experts retained or selected by the Adviser),
accountants and custodians, travel and related expenses incurred in connection with transactions (whether

or not consummated), brokerage commissions, portfolio monitoring expenses, any insurance,
indemnification or litigation expenses, and any taxes, fees or other governmental charges levied. For ESOF,
such expenses do not include the Adviser’s expenses in connection with maintaining and operating its
offices (such as compensation of its employees, rent, utilities and general office expenses). Brokerage fees
may be incurred in accordance with the practices set forth in Item 12, “Brokerage Practices.”

In some cases expenses and fees might be attributable to more than one Client, or to the Adviser and one
or more Clients. In such cases the Adviser will apply an expense allocation methodology believed to be fair
to all affected Clients. With respect to other shared expenses such as research expenses, the Adviser makes
an allocation among itself and its Clients based on usage or another fair mechanism, and reviews allocations
periodically. The Adviser may experience a conflict of interest when determining and applying an
allocation methodology. See Item 11 below regarding “Conflicts of Interest” for information regarding the
conflicts of interest that may arise in relation to the Adviser’s expense allocation.

Each Client must refer to its respective advisory agreement and, if applicable, its confidential private
offering memorandum, for a complete understanding of fees and expenses. The information
contained herein is a summary only and is qualified in its entirety by such documents.

ITEM 7. TYPES OF CLIENTS

As indicated in Item 4, the Adviser provides discretionary investment advisory services to its existing
Clients, which are pooled investment vehicles formed under U.S. and non-U.S. laws and operated as exempt
investment pools under the Investment Company Act of 1940, as amended (the “Company Act”). At this
time, the Clients limit its investors to persons who are “accredited investors” as defined in the Securities
Act of 1933 and “qualified purchasers” as defined in the Investment Company Act of 1940.

As set forth in the applicable private offering documents, the Clients may have a specified minimum
investment for third-party investors, and Electrum is permitted to waive any such minimum investment
amount.