INVESTOR RELATIONS PRESENTATION August 2011 Private & - PowerPoint PPT Presentation

INVESTOR RELATIONS PRESENTATION August 2011 Private & Confidential | Greenheart Group

D ISCLAIMER Disclaimer This document and subsequent discussion may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of Greenheart Group Limited and its subsidiaries (“the Group”) . These forward-looking statements represents the Group’s expectations or beliefs concerning future events and involving known and unknown risks and uncertainties which could cause actual results, performance or events to differ materially from those expressed or implied in such statements. This document does not constitute, or form any part of, and is not to be construed as an offer, invitation or solicitation to buy or sell any securities of any of the companies referred to herein and any opinions expressed are subject to change without notice. The value of any investments referred to herein and the income derived there from may fall or rise against the investors’ interest and past performance is not a guide to the future. No representation or warranty, express or implied, is given by the Group or any of its directors, partners, officers, employees or professional advisers as to the accuracy, completeness or fairness of the information or the opinions contained in this document and no responsibilities or liabilities is accepted for any such information or opinions or errors or omissions. This document is being supplied to you solely for information and may not be reproduced or redistributed in whole or in part to any other person for any purpose. In addition, this document is being provided to you on the basis that it is kept confidential any information contained herein or otherwise made available in connection with the Group must remain confidential. 2 Private & Confidential | Greenheart Group

1. 1. Greenheart History Executive Summary 4 - 5 4 T ABLE O F C ONTENT 2. Ownership & Current Assets 5 3-1. Suriname - Tropical Hardwood 6 3-2. New Zealand - Softwood Plantations 8 4. Market Dynamics 10 5. Operating Strategy 13 A. Appendix 14 3 Private & Confidential | Greenheart Group

Greenheart History 1. G REENHEART A T A G LANCE 2010 2011 1988 Strategy  Company’s IPO on  Sino-Forest acquires  Acquires 60% of Vista Stock Exchange of Hong Kong To acquire, harvest and manage Marine Services N.V. majority stake in company (HK:00094) sustainable and profitable — 128,000 ha. tropical hardwood forestry assets from markets — Appoints Judson Martin as concession in Eastern outside China Chief Executive Officer Suriname 2007 — Appoints Allen Chan as Non- — Total concessions under Executive Chairman  Company Key Markets management in Suriname now acquired 60% of a tropical hardwood 312,000 ha.  Issues convertible concession in To serve the increasing wood debenture to GEMS Suriname, South  Acquires 13,000 ha. of deficit in China and other global America markets as price and demand freehold land in New — Appoints Simon Murray as dictate Non-Executive Director Zealand 2008 — Includes 11,000 ha. of  Company rebranded to  Company divests softwood plantation Greenheart Group to all non-forestry related assets to better reflect its single  Appoints Andrew Fyfe as focus on Suriname concession focus on forestry Chief Operating Officer 4 Private & Confidential | Greenheart Group

Greenheart Today: Four Assets 2. O WNERSHIP & C URRENT A SSETS Greenheart Ownership Basic 1 2 3 4 0.9% 35.5% Tropical Hardwood Softwood Growth Cash Concessions Plantations Pipeline 63.6% West East New Zealand: Cash for Tropical Fully Diluted Suriname: Suriname: (13,000 ha. ) Investment Hardwood & (184,000 ha.) (128,000 ha.) Mangakahia Approximately Softwood 11.9% Greenheart Vista Marine Forest US$70 million Plantations 31.6% as at 31 st Resources Services N.V. Freehold land March 2011 60.4% 60% 100% 56.5% GEMS Sino-Forest Float Greenheart Group Limited HK: 00094 Note: US$25 million Convertible Debenture issued to GEMS on 17 th August 2010 5 Private & Confidential | Greenheart Group

Tropical Hardwood – 312,000 ha. in Suriname 3-1. T ROPICAL H ARDWOOD KEY STATS  Over 90% covered in dense GDP (2010) US$ 3.7 billion primary tropical rainforest Suriname Key Bauxite, gold, oil, Resources iron ore Headquarters  Largest forestry operator in Population 500,000 the country with 312,000 ha. of tropical hardwood Capital Paramaribo concessions Official Dutch Language  Operations follow a strict FOREST Ha. (millions) West Suriname selective harvesting regime STATS Concessions developed to sustainably East Suriname Total Area 16.4 Concessions increase the growth of the Concessions Water Area 0.8 184,000 ha. forest Harvesting rights 128,000 ha. Forested 14.8  Greenheart’s objective is to Area only export FSC certified Total Forest 2.2 high value lumber from Concessions (or 15% of total Available forested area) Suriname Greenheart 0.3 Concessions ( 14% of total concessions available ) Private & Confidential | Greenheart Group 6

Tropical Hardwood – Operations 3-1. T ROPICAL H ARDWOOD Asset Description Key Operations  Harvesting sustainable   Largest tropical hardwood concession owner and Key operations include managing, harvesting, sales tropical hardwood for export operator in Suriname with concession and certain and marketing of tropical hardwood logs and lumber harvesting rights to approximately 312,000 ha. of to China and other markets for export to key markets around the world tropical hardwood forests around the world  Tropical hardwood from Suriname is often used for  Managed by on the ground team of international high quality furniture, ship-building, high-end  Using precise scientific forestry veterans (US/British/Dutch/New Zealand) flooring and paneling techniques of selective  harvesting Currently 100 people in workforce with skilled labor  Building two world-class processing facilities in each from Suriname, Brazil, Guyana, Malaysia, Philippines concession to convert all logs into lumber  Objective: log to lumber Selective Harvesting Strategy  Aiming for full FSC   certification for our assets Process all logs into lumber, providing greater social Greenheart only harvest according to the maximum Annual Allowable Cut (AAC) of 25 m 3 per hectare and sustainable developments for Suriname as well and operations as higher margins and profitability for the products per every 20 year cycle (equivalent of harvesting on average 6 trees per every two football fields and  Greenheart is making preparations to obtain FSC then leaving the area for 20 years) (Forest Stewardship Council) certification for all its  operations and assets Using Geographic Information System (GIS), each tree is individually inspected, inventoried and  Objective is to significantly increase both concession marked before harvesting and all exported logs have ownership and AAC through applications to the chain of custody from initial harvest Government and private transactions Private & Confidential | Greenheart Group 7

Softwood Plantation – Mangakahia Forest 3-2. S OFTWOOD P LANTATIONS KEY STATS GDP (2010) US$ 117 billion  New Zealand has a long and Key Diary farming, established forestry industry Resources Forestry Population 4.4 million  Located in Northland region, 2 nd largest forestry region in Capital Wellington New Zealand National English Language  13,000 ha. of freehold land FOREST Ha. (millions) STATS with 11,000 ha. of high quality radiata pine Total Area 26.9 plantation Total Forest 1.76 Area  Exporting high grade Radiata Pine 1.57 softwood to China as well as Area the domestic market Northland 0.2 Forest Area Export to 6.7 million m3 China (2010) 4.3 million m3 (2009) 8 Private & Confidential | Greenheart Group