Dear All,

Apologies for both my absence (I have been very unwell) and for the lack of dividends. Unfortunately the siutation has not changed since I last updated you about it; the smallest dividend payment is still below the "dust" level / minimum transaction size level for the bitcoin network, and I therefore cannot send an aggregated payment. We have many single bondholders and even with an aggregated balance of several BTC now, one hundred thousandth of a few BTC is below the minimum transaction size which will be accepted by the network. This will not be a problem once they are on CipherTrade, but for the time being we're a bit scuppered.

For the time being please consider CIPHEMINE.B1 to be frozen. However, the dividends will still be paid and are being sequestered safely. They are still calculated based on the 30 day weighted moving average price (ie. you get more when BTC is rising, as it generally has been in recent months). I do have a conundrum now though in terms of how to keep the dividends now that I've simplified our approach re. CIPHERMINE divi calcs (ie. the BitStamp account gets completely emptied). Currently the CIPHERMINE.B1 divis are BTC in a cold wallet, which has been good for investors thus far but I understand that increases your risk.

I cannot do anything else right now, but CipherTrade is poised to launch after many delays so it will get resolved soon I promise.

However, should you wish to give us 3 months notice to redeem the bonds then please email bonds@ciphermine.com. The email must come from the email address associated with your old BTC-TC account. We will then send you a unique code to verify you do have possession of the account. Redemptions will only be made to the public withdrawal address associated with your BTC-TC account.

Kate.

PS. For your convenience I've uploaded a PDF of the BTC-TC "contract" page for CIPHERMINE.B1, here. Unfortunately I did not forsee the possibility of the exchange failing/closing combined with this bloody minimum transaction limit getting in the way. In the circumstances we're doing the best we can (ie. building a new exchange so that your securities will be liquid again!). The entirety of the funds were spent on mining hardware, as planned.