STRICTLY PRIVATE AND CONFIDENTIAL

DISCLAIMER AND CONFIDENTIALITY

AMMO, Inc. (“AMMO”) has prepared this Offering Memorandum (the “Memorandum”) solely for the purpose of providing
a preliminary introduction to the business of AMMO, to assist a potential investor in evaluating whether to proceed with
an in-depth investigation in connection with a potential investment. Potential investors are expected to conduct their
own independent due diligence and analysis regarding their decision to invest. This Memorandum and the information
contained herein (the “Information”) is not to be used for any other purpose or by any other person or made available to
any other person without AMMO’s prior written consent. The information contained herein has been obtained from
management of AMMO and its associates, publicly-available information and other sources and reflects prevailing
conditions and our views as of the date of this Memorandum, all of which are subject to change. AMMO is under no
obligation to update the Information or its analyses based on any subsequent changes and does not intend to do so. In
preparing this Memorandum, we have relied upon and assumed, without independent investigation, the accuracy and
completeness of all information reviewed by us. In addition, our analyses are not and do not purport to be appraisals of
the assets, stock or business of AMMO, its associates or any other entity.

AMMO does not make any representations or warranties with respect to the Information, and to the extent permitted by law, we
expressly disclaim any and all liability for loss or damage arising out of use or reliance by you or any other person upon the
Information (except for any liability that arises due to fraud). Each potential investor, by receipt of this Memorandum,
acknowledges and agrees that none of AMMO or its associates will have any liability to the potential investor resulting from any
of the Information contained herein (except for any liability that arises due to fraud).

AMMO is not a broker-dealer registered with the United States Securities and Exchange Commission and a member of FINRA
or SIPC. Securities offered by AMMO are not FDIC insured, are not bank guaranteed, may lose value, are not a bank deposit,
are not a condition to any banking service or activity and are not insured by any federal government agency. AMMO and/or its
directors, officers, employees, and affiliates may have or may have had interests or long or short positions in, and may at any
time make purchases and/or sales as principal or agent, or may have acted or may act in the future as market maker in the
relevant securities or related financial instruments discussed in this Memorandum or to which the Information relates. AMMO’s
activities related to those instruments may give rise to conflicting interests or duties.

This Memorandum is not an offer to sell or a solicitation to buy securities.

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 RISK DISCLOSURE
Investment opportunities described herein are not suitable for all investors, and this document is in no way meant to solicit any action from
any particular investor or institution. This information is being provided for general informational purposes only and is meant solely for
accredited investors as defined in Regulation D under the Securities Act of 1933, as amended. Information on private placements is not
generally available to the public and investments in such private placements are available only to accredited investors. Accordingly, no
investment will be accepted before appropriate qualification of a prospective investor, its receipt of the applicable disclosure documents
(including, without limitation, the Private Offering Memorandum) and its completion of the relevant purchase documents.
Investments in private placements are speculative and involve a high degree of risk, including liquidity and volatility risk, and should only be
considered as long-term investments. There is no assurance that such an investment will be successful. Past performance is no guarantee of
future results. Accordingly, an investor must be prepared to withstand the possibility of a total loss of its investment.
The information contained herein is provided in good faith, by Paulson Investment Company, LLC. ("Paulson") and without any express or
implied warranty of accuracy or completeness and should not be relied upon as such. Although reasonable care has been taken to ensure
that the facts stated in this document are accurate and that the opinions expressed are fair and reasonable, no reliance can be placed on
such information or on its completeness. No representation or warranty, expressed or implied, is given as to the accuracy of the
information, opinions, or financial projections as may be contained in this document, and under no circumstances may such information,
opinions and projections be relied upon as any guarantee as to future performance or results. As part of its own due diligence, each
prospective investor is encouraged to obtain separate and independent verification of the information, opinions, and financial projections
contained herein.

The material included with this document does not consider the specific investment objectives, financial situation, or needs of a specific
recipient. This document may not be construed as either a recommendation or an offer to buy or sell securities, nor does it constitute a
recommendation or an offer to buy or sell securities. Further, such material is insufficient to form the basis of an investment decision,
should not be used by the recipient for that purpose, does not constitute nor should it be construed as research, investment advice or an
invitation to conduct any investment business.

Any investment decision should be made only pursuant to the applicable disclosure material, including the Private Offering Memorandum.
By accepting this document, the recipient agrees to keep the information contained herein or sent herewith or made available in
connection with further inquiries, confidential. It is a condition of the issuance of this document that any such information will not be
reproduced, copied or circulated to any third party without the express prior consent of Paulson. The information does not necessarily
reflect the opinion or belief of Paulson and it should not be construed as such. Many inherent, actual, or potential conflicts of interest may
exist, including with respect to the payment and receipt of fees from relevant companies or industries referenced herein.

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 FORWARD LOOKING STATEMENT

This presentation includes "forward-looking statements" within the meaning of the safe harbor provisions of
the United States Private Securities Litigation Reform Act of 1995.

These statements are based upon the current beliefs and expectations of AMMO’s management and are
subject to significant risks and uncertainties. If underlying assumptions prove inaccurate or risks or
uncertainties materialize, actual results may differ materially from those set forth in the forward-looking
statements. Risks and uncertainties include but are not limited to, general industry conditions and
competition; general economic factors, including interest rate and currency exchange rate fluctuations;
AMMO, Inc. undertakes no obligation to publicly update any forward-looking statement, whether as a result of
new information, future events or otherwise. Additional factors that could cause results to differ materially
from those described in the forward-looking statements can be found in AMMO’s SEC filings with the
Securities and Exchange Commission (SEC) available at the SEC's Internet site (www.sec.gov). The information
contained in this presentation was current as of the date presented. The Company assumes no duty to update
the information to reflect subsequent developments. Consequently, the Company will not update the
information contained in the presentation and investors should not rely upon the information as current or
accurate after the presentation date.

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 INTRODUCING

TECHNOLOGY LEADER AND MANUFACTURE OF AMERICA’S SUPERIOR AMMUNITION

Exchange/Ticker Symbol: OTC: POWW*

Recent Price: $3.20
Shares Outstanding: 22 Million
Market Capitalization: Approx. $70 Million

*Company anticipates to seek listing on a major

exchange in 2018
 COMPANY OVERVIEW & HIGHLIGHTS

• Fast-growing provider of high performance,

precision ammunitions
• Highly differentiated portfolio of premium brands
• Advanced technology drives superior product
performance and reliability
• Highly scalable, efficient state-of-the art
manufacturing
• Multi faceted distribution architecture
• Experienced senior management team with
strong manufacturing, marketing, licensing and
public company experience

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BRANDS
 • Terminal Performance Defense Loads

• Jacketed Hollow Points with TPD coating for

• Ball and Hollow point ammunition increased barrel life and reduced fouling

• Balanced velocity and recoil • Loaded for Extreme Accuracy and Reliability

• Loaded for Extreme Accuracy and • Nickel Plated Brass with TPD coating for
Reliability smooth reliable case ejection

• 100% AMERICAN MADE • HYPERCLEAN POWDER – 50% less

components cleaning time

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MAXIMIZE YOUR PEACE OF MIND WITH THE
ULTIMATE LEAD-FREE FRANGIBLE ROUND.

OPEN TIPPED FRANGIBLE (OTF®) PROJECTILES SEPARATE ON IMPACT

FOR DEVASTATING STOPPING POWER AND 100% ENERGY TRANSFER TO
TARGET. LEAD-FREE AND CALIFORNIA-COMPLIANT, WITH LIGHTER WEIGHT
DESIGN TO KEEP YOU ON TARGET WHEN ALL HELL BREAKS LOOSE.

• Designed to penetrate heavy clothing yet transmit 100% of

its energy upon impact

• Hollow Point Frangible with hard outer casing and frangible

copper / tungsten core

• Incredible accuracy when every shot counts

• Light weight projectile reduces recoil and keeps you on

target shot after shot

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 SEE VIDEO EXAMPLE ABOVE

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 WHEN SILENCE MATTERS,
WE HAVE THE PERFECT ROUND
FOR YOUR GUN

A FUSION OF PROPRIETARY HYPERCLEAN™ TECHNOLOGY, PRECISION STANDARDS, AND LEADING SUPPRESSOR MANUFACTURER
COLLABORATION, THE STELTH® LINE WAS DESIGNED FROM THE GROUND UP WITH BOTH DECIBEL DROP AND CLEANLINESS IN MIND.
SO WHETHER YOUR MISSION IS TACTICAL TRAINING, A PREDATOR NIGHT HUNT, OR A CLANDESTINE OPERATION, WHEN SILENCE IS
PARAMOUNT, GO STELTH®.

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SEE VIDEO EXAMPLE ABOVE
 MARKET OVERVIEW
AMMUNITION MARKET IS LARGE AND NEGLECTED

> $2 Billion/Yr.
Spent on Target Ammo Alone
( 20% target total shooting spend)

> 300 million

Guns In the USA

31% of HHs own guns

High Discretionary Income

47% of Gun Owing Households Earn > $99K/ Yr.
Sources: NSSF, Pew Research, Statistica, NORCA (University of Chicago)
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MARKET SEGMENTATION & POSITIONING
INNOVATION

Beretta

QUALITY
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 DISTRIBUTION STRATEGY

CURRENT DISTRIBUTION CHANNELS NEW SALES CHANNELS

• Two Step Distributors • Law Enforcement & Military contracts
• Mass Merchants • International Markets
• Buy Groups/Independent Dealers – we • Contract Manufacturing for Brands
have opened 22% of this channel’s dealers
• Online Retailers
• Ecommerce

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 AMMO’S UNIQUE ACCESS TO > 300,000 MEMBERS OF LAW ENFORCEMENT
Ammo’s SHIELD PROGRAM provides members of Law Enforcement Associations preferred
access to our web portal where they can purchase our High-Quality Ammunition at Lower
than Wholesale Prices. Shield helps Associations drive membership by providing a unique
and attractive new member benefit.

Shield Program Benefits

Ammo Portal
• Access to Key Influencers
• Drives sales (“Avid consumers”)
• Provides valuable feedback
• Pathway to duty-round sales

Our Exclusive:
Only Ammo Can Market to
Associations in this Manner

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 Ammo’s exclusive access to
> 300,000 members of
law enforcement

2017 2018
 MANUFACTURING

• 25,000 sq. ft. Facility

• Located in Payson, AZ
• Current capacity of 100m rounds per year scalable up to 200m + rounds per year
• Among the top test labs in the country
• Qualified and seasoned staff
• Favorable lease terms
 GROWTH STRATEGY
Key Components of our Growth Strategy Include the Following:

Expand Sales Force & Channels

- Direct sales force
- Distributors/”Rep” firms
- Sponsorship and co-promotion

Investment in Advertising & Marketing

- Print, digital and social media
- In-store marketing
- Sponsorship and co-promotion

Strategically Penetrate New Verticals

- US Law enforcement (Police, FBI, etc.)
- US Military
- International opportunities

Build and Acquire New Products and Assets

- Ammunition
- Guns & Accessories
 EXECUTIVE TEAM

FRED W WAGENHALS - CEO & PRESIDENT

Founder of publicly-held Action Performance Companies with sales of NASCAR-branded
products of over $400 million annually. Mr. Wagenhals specializes in the acquisition and
monetization of licensed products, which we are now applying to the ammunition industry.

JAY GRDINA - MARKETING & BUSINESS DEVELOPMENT

Mr. Grdina specializes in building companies and brands. Mr. Grdina has successfully built and
sold multiple companies in a variety of sectors.

RON SHOSTACK - CFO AND CIO

Founder of privately-held AmeriCare Employers Group with annual sales of $200 million. CFO
and full-stack web developer with extensive entrepreneurial and information processing
experience.

STEVE HILKO - COO

Mr. Hilko leads factory and product development. Steve has 40 years of experience in
manufacturing, engineering and supply-chain logistics and is a gun expert widely recognized in
the ammunition industry.

Our management team is supported by a highly experience and active board

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 FINANCIAL HIGHLIGHTS
We believe our business model will produce multiple financial advantages including the
following:

Cost-Efficient Distribution
- Shield Program (and referrals)
- Ammo On-line
- Free in-store display (in some outlets, no slotting allowance)

Premium Brands and Patents Conducive to Realizing Higher Margins

- Gross margins target 35% versus between 10% and 20% for commodity ammo

Projecting Rapid Growth and Near-Term FCF

- Goal to achieve $20 mm in sales by 2018
- Cashflow Breakeven Target Q2 2018

Strong Pro-forma Balance and Clean “Cap Table”

- Pro-forma cash ~ $6M
- Minimal debt
- Common shares only

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 INVESTMENT HIGHLIGHTS

▪ Multi-Billion Dollar Large Market “Susceptible” to Disruption

▪ Diversified Portfolio of Attractive Brands an Premium Products

▪ Unique Cost-Effective Distribution Strategies

▪ Patents and other IP Create Sustainable Competitive Advantage

▪ Attractive Financial Model with Near-Term Profits Expected

▪ Strong Management with Successful Entrepreneurial Track Records

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 THE OFFERING

Issuer AMMO, Inc.

Securities Units consisting of:

- 1 share of Common Stock
- 1 warrant to purchase ½ shares of common stock
Price per Share $1.65 per Unit

Gross Proceeds Up to $10,000,000

Warrants Exercise at $2.00, 5-Year Term

Use of Proceeds Sales & marketing, working capital and general corporate
purposes.

Placement Agent Paulson Investment Company, LLC

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STRICTLY PRIVATE AND CONFIDENTIAL