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					Executive Summary
Statement of Purpose
The purpose of this document is to provide a high-level summary of thought provoking, potential
ideas/uses for the successful development of the Playa Grande and “hot springs” property located in
Chiriqui province, Panama, Latin America.

Reason for Research and Report
Our understanding that the Playa Grande property, originally purchased for development of a high-
end hotel, tourist resort and golf course has stalled and is currently sitting idle, (for a number of
years), thus providing no economic return, not only for the owner, but also the surrounding vicinity.
Likewise, our understanding that the” hot springs” property is currently undeveloped and that there
is concern of developing squatter problem.

Document Contents
   Basic review and familiarization of current facts and trends affecting economic development
     and investment decisions / opportunities throughout Panama and Chiriqui province

      Two categories of development / investment suggestions:

          o   Historically proven investments known to be supported within the local environment
              (topography, habitat, weather, etc.) and current economic climate

          o   Innovative ideas that hold potential of being economically sound, feasible investments
              given the location, environment and economic climate

      Points of consideration & additional research needed to additionally identify the best course of
       action in making a sound investment decision

Research Perspective
The results of this summary, attained through intensive internet research, focused on general, yet
specific facts deemed crucial for sound investment decisions in Panama and Chiriqui province.
Information was gleaned from three perspectives: 1) Panama, an overview of the country itself. 2)
Chiriqui province, the region where Playa Grande is located. 3) Playa Grande property and
immediate locale.

Research Conclusions
Summary conclusions were gleaned by becoming familiar with current and predicted economic
trends, gaining knowledge of Panama’s tourist, agricultural, industrial, entertainment, educational
and migratory facts, patterns, trends, and common sense. Proper marketing towards and education
of target groups should be taken seriously in obtaining positive results.

Recommendations
Our recommendations included dairy herd, hydroponic farming and other agricultural or ranching
options, tilapia fish farm, assisted care village, hot springs medicinal spa, and other. We also
believe that the original tourist resort concept should be revisited from a fresh perspective,
something unique from others in Panama and the province.




                                                                                   Continued on next page
Follow-up and Validations
Validation of any recommendation or expressed interest by the property owner might require the
following:

      Visit Chiriqui province, the Playa Grande and “hot springs” properties to better identify
       specific development options; identify true land potential while gaining personal
       understanding      of    the   immediate   topography,    environment     and     trends.

      Observe businesses currently being successfully operated in the areas surrounding the
       properties.

      Identify natural resources; perform soil and water tests, topography surveys, etc.

      Interview local residents as to gain additional information regarding community needs and
       resources.

      Research, discuss, evaluate and brain-storm in arriving at unique perspectives and marketing
       goals in creating a development or investment unique from others in the country and
       province.




                                                                                  Continued on next page
                Facts Crucial to Understanding Investment Potential
                          in Panama & Chiriqui Providence

Panama: General Facts

   Panama, through many incentives, a supporting infrastructure, affordable housing and tropical
    climate is renowned for attracting retirees from around the world

   Panama is predicted to have continued economic growth contrary to other Latin American
    countries
        -- www.reuters.com/article/idUSN1348126020091113
        -- www.panama-guide.com/article.php/20101202090733890
        -- www.panama-guide.com/article.php/20101009095812178

   Panama has two medical schools and two dental schools -- there is no shortage of competent
    physicians in Panama

   There are 9 colleges and universities in the country of Panama including several U.S. Universities
    that have set up campuses or study abroad programs in Panama City

   Golf Courses -- there are 10+ golf courses in Panama with the majority located in or near
    Panama City. New courses are being planned for Panama including one at Penonome and another
    at Tole in Chiriqui -- www.everything-panama.com/golf.html

   There are 23+ casinos in Panama City… and others in outlying resorts & hotels
         -- www.worldcasinodirectory.com/panama/panama-city/casino-list

   Panama is self-sufficient in bananas, sugar, rice, corn, and coffee

   The main livestock products in Panama are beef, veal, chicken, and pork

   Dairy farming Panama is a lucrative business… and their milk and by products are known to be
    excellent in quality. However, Panama has a shortage of domestically produced dairy products.
    50% of all milk sold in the country is imported, and the government has several programs to
    encourage dairy production, including low interest loans to buy cattle.
       -- www.newsroompanama.com/panama/1486-panama-milk-production-climbs-to-cut-imports.html
      -- www.thepanamadigest.com/2010/07/new-commission-to-set-milks-political-strategy
      -- www.chiriquicoastal.com/en/listings/farms/dairy-farm-development-property

   Panama has the highest rate of chicken consumption per capita in Latin America

   The main fishing product is shrimp, both sea-caught and farm-raised

   Bananas are the leading export, followed by shrimp, sugar, coffee, and clothing. Bananas are
    the leading export product and the banana industry is an important source of rural employment -
    - Fruits grown in Panama for domestic consumption include mangoes, papaya, pineapple, passion
    fruit, guanaba, and guayaba (guava). Bananas, plantains and melons are also grown for
    domestic consumption -- Fruits grown for export in Panama include bananas, sugar cane, coffee,
    melons and watermelons. All of these are exported to Europe and the United States. The bulk of
    Panama's land area lies at low elevations, where the climate is ideally suited to the cultivation of
    these fruits.

   Panama has significant stocks of timber, mainly mahogany. There are also 61,000 hectares of
    planted forests, mainly teak and pine.


                                                                                    Continued on next page
                              Chiriqui Province: General Facts

   Chiriqui, is the westernmost province of Panama's Pacific coast. It provides Panama's most
    varied landscapes, ranging from stunning beaches to steep mountains. Cattle ranches, orchid
    gardens, tropical forests famous with bird watchers, and coastal islands, fantastic sport fishing
    are all icons of this unique region. Chiriqui, conveniently borders Costa Rica and easily rivals it
    with like beauty and diversity. Consequently, Chiriqui has become a popular retirement
    destination for foreigners and Panamanians alike. The Guaymi Indians call Chiriqui's central
    mountain chain their home.
        www.chiriqui.com   / www.panamarealestatepros.com/chiriqui.asp

   Chiriqui province is predicted to experience increased visitors (real tourism) due to new flights
    making the connection from Tocumen International to David.

   The provincial capital of Chiriqui is David, third city of the republic; it is the hub tourism,
    business and transportation within the region. David’s airport services both Panama and
    neighboring Costa Rica, thus providing the region with additional tourist opportunity.

   Other locations of interest within the province include Boquete and Volcan. Boquete is the
    nation's prime supplier for florists. Cool mountain streams flow down from the semi-extinct Baru
    Volcano (11,450 feet) through Boquete, Cerro Punta, and Volcan. In addition to fantastic trout
    fishing, horseback riding, whitewater rafting and hiking, underground hot springs can also be
    found in the area of Boquete. The costal regions of this province provide spectacular beaches
    and climate and are quickly becoming a target for both tourists and retirees.




                               Distance from Panama City to David = 200+ miles


Other Chiriqui Province Related Information

    1. Weather -- Chiriqui's highlands have mild, cool weather that many Europeans and
       Americans have found to their liking. The lowlands are warmer and dryer (depending the time
       of the year).

    2. Environment -- Many retirees and investors are flocking to Chiriqui. As a result, there's a
       communal, fun feeling that only comes in these "town of transplants." Retirees find there are
       many folks willing to take them under their wing and help them learn the ropes of life abroad.

                                                                                   Continued on next page
3. Tourism -- Chiriqui is to Panama what Monteverde and Arenal are to Costa Rica. Many
   tourists visiting Panama work their way to the Boquete area during their travels. The
   combination of tourism, foreign retirees and local investment make this region attractive for
   continued future growth.

4. Beach Resorts and Developments -- Chiriqui province has three established and/or
   developing beach resort areas: Playa Barqueta, about 20 minutes west of David, Boca Chica,
   approximately 60 minutes east of David, and Las Lajas, roughly 90 minutes east of David.
   Tourist & retirement traffic continues to be large attractor to Panama, most especially Chiriqui
   province.

            Playa Barquete www.playalabarqueta.com / www.lasolasresort.com

            Boca Chica www.bocachicaplantationclub.com Seagul Cove                  www.seagullcovelodge.com
            Calamia on Boca Brava island www.boutiquehotelcalamia.com

            Las Lajas www.laslajasbeachresort.com

5. Retirement and Vacation Communities                      -- Chiriqui province has 4 established or
   developing retirement communities

            Valle Escondido www.valleescondido.biz

            Cielo Paraiso Golf and Resort Community www.boqueterealestate.com

            Hacienda Los Molinos www.losmolinos.com.pa

            Las Olas Resort www.lasolasresort.com

6. Farms & Ranchs - Chiriqui is well-known for its production of:
   • bananas • coffee • rice • beef • milk • thoroughbred horses

7. Sea Ports
   Port at Puerto Armuelles – located about 100 Kilometers west of David
           http://en.wikipedia.org/wiki/Puerto_Armuelles,_Chiriqu%C3%AD

           In 2008, Occidental (OXY) determined there is sufficient crude to construct a refinery in Puerto
            Armuelles. The refinery, with a cost of about $7 billion dollars, will be able to process 400,000
            barrels of heavy crude from Mexico, South America, and the Middle East. Much of the refinery's
            output will be delivered to the west coast of the United States, and will include 185,000 barrels
            of gasoline per day, 45,000 barrels of jet fuel, 90,300 barrels of diesel fue land 6,300 daily
            barrels of fuel oil.

           there are no cruise ship ports in Chiriqui province …. the nearest cruise ship port is located in
            Panama City, Port of Balboa.

8. Scuba Diving & Deep Sea Fishing -- The province of Chiriqui has fantastic scuba diving.
   Divers experience everything in Panama's Pacific waters, from sharks, whales, dolphins, black
   marlin and turtles, coral reefs and volcanic formations. Fishing for marlin, tuna, mahi-mahi
   and a shoal of other game fish will keep any fisherman coming back for more.




                                                                                          Continued on next page
                                 Investment Considerations
By review of local, province and countrywide businesses, environmental conditions, topography,
human trends (including tourist, retirement patterns), accessibility (air, land & sea), the following
could be considered as ideas worthy of additional, detailed investigation and or consideration.

                                          Farming & Ranching
The Chiriqui province is very well know for its cattle ranching and dairy herds. A dairy could be a
very savvy investment as Panama imports nearly 50% of nationally consumed milk and milk related
products. The government provides healthy subsidies for all dairy operations.

Cattle Ranch -                                                    Dairy Farm
Open Range, cow /calf operation                                   Milk & Dairy byproduct Operation

Points of Consideration & Additional Research:                    Points of Consideration & Additional Research:

-   Nos. of cows                                                  -   Nos. of cows
-   Breed of cows                                                 -   Breed of cows
-   Waste management                                              -   Waste management
-   Acres needed to support each cow/calf                         -   Facilities needed to support dairy herd & milk barns
-   Feed- grass abundance & related nutrient value                -   Feed- grass abundance & related nutrient value
-   Secondary feed sources / resources                            -   Secondary feed sources / resources
-   Water availability / river levels, wells / dry/rainy season   -   Water availability / river levels, wells
-   Fencing                                                       -   Diary herd management expertise
-   Cattle ranching expertise                                     -   Government subsidies a plus
-   Hire to handle heard or lease to established ranch            -   Marketing of products

Fish Farming -- Tilapia among the easiest and most profitable fish to farm; can be farmed inland;
fish farming is proving to be a successful, economic means of feeding a growing world population.
Tilapia farming and consumption are rapidly increasing in the US and world-wide.
www.fishfarming.com/tilapia.html

Hydroponic and/or Cultivated Land Vegetable Farming -- Tomatoes, peppers, lettuce, celery,
cucumbers, carrots, cabbage, etc. – The Playa Grande land could be suitable for typical, cultivated
soil farming and/or “Hydroponic” farming… hydroponic farming uses less land, can be used in places
where traditional agriculture is negligible - typically produces higher yields than soil crops.
www.nationsencyclopedia.com/economies/Americas/Panama-AGRICULTURE.html

Lavender Farm -- Lavender is an herb in the mint family that is primarily employed for its
fragrance in the garden and in personal care products, but also finds its way into culinary use. -- a
lover of dry, sunny, rocky habitats -- Lavender is known the world over for its healing properties,
glorious color and enchanting perfume, --Lavender produces an essential oil that has an inherent
antibiotic action. It is also an astringent and moisturizer to skin. It alleviates aches, pains, and
swelling from arthritis to injury to headache. Lavender also alleviates motion sickness -- it is
extremely drought resistant once established, -- Essential oil can be extracted by steam distillation
from the fresh flowers. – Lavender begins to produce quickly, bit it takes about three years for it to
reach full size -- www.ehow.com/how_2064841_grow-lavender.html

          Lavender Growing Requirements
          Lavender prefers a sloping bed in a sunny spot - tolerates many growing conditions, but thrives in warm, well-
          drained soil and full sun. Like many plants grown for their essential oils, a lean soil encourages a higher
          concentration of oils – does not do as well in high humid environment.

Orchid Farm - There are several orchid farms in Panama, but mainly are located at higher
elevations… green houses can be utilized -- however orchids require considerable patience and
understanding to grow www.gardeners.com/Growing-Orchids/5072,default,pg.html

                                                                                                   Continued on next page
Winery / Grapes – There appears to be only one winery in the country

Points of Consideration & Additional Research for Establishing a Successful Farming Operation

-   Onsite investigation and research as to most practical / current local production & produce types
-   Value added products from produce – Ex. if hot peppers, then hot sauce; if fruits, then jellies
-   Consumer demand - province, country and export           - Water / irrigation feasibility
-   Hydroponic vs. cultivation methods                       - Land survey – slope, drainage
-   Local impact / job creation                              - Geotechnical investigation - soil type & analysis
-   Production costs                                         - Environmental factors - rain, temp, humidity, etc
-   Profit margin analysis                                   - Potential disease problems per given crop variety




                          Development Related to:
            Assisted Care / Spa / Retirement / Tourist / Housing


Senior Care Village / Assisted Living

Just as Panama provides a high quality lifestyle at a much lower cost for home buyers, the same
cost savings can be applied to senior care centers. As more and more foreigners buy property and
move to Panama, a growing number of these people will have parents and loved ones in assisted
care living centers back home, often at great expense. The senior care industry includes independent
living facilities, assisted living residences and skilled nursing care centers. Each year, the number of
people requiring assistance in their daily living increases and, critically, so does the costs of
providing this assistance.

Points of Consideration & Additional Research:

-   Available resource of doctors (there is an abundance of doctors in Panama)
-   Available resource of medical students in training (there are 2 medical schools in Panama)
-   Distance & accessibility to nearest medical facility from Playa Grande
-   Establishment of a medical facility on Playa Grande property
-   Local impact / job creation
-   Environment suitability



Hot Springs Spa / Medicinal Resort

More and more tourists and or individuals are serious about their physical and mental well-being and
or personal aliments. They are looking for methods to improve their health and or alternatives to
traditional medicines and medical practices. Hot water springs and their environments are becoming
increasingly popular and sought out.

Points of Consideration & Additional Research:

-   Tourist demand – SA, USA, Asia, Europe                  -   How can my spa be more unique than others?
-   Overnight stays / single day visits                     -   Eco-tourism
-   Local impact / job creation                             -   Nature Trail / hiking
-   Effective target marketing campaign / study             -   Traditional Indian Village
-   Current / future economic impacts




                                                                                              Continued on next page
Retirement Village Development                    Housing / Condo Development

Points of Consideration & Additional Research:    Points of Consideration & Additional Research:

-   Medium or high income target market           -   Medium or high income target market
-   Effective target marketing campaign / study   -   Effective target marketing campaign / study
-   Local impact / job creation                   -   Local impact / job creation
-   Individual housing                            -   Buy / Rent / Lease
-   Shared compound housing                       -   Support stores operated by residents
-   Buy / Lease                                   -   Golf Course
-   Support stores operated by residents          -   Nature Trail / hiking
-   How can my village be unique than?            -   Tennis
-   Golf Course                                   -   Swimming
-   River rafting                                 -   Horses
-   Nature Trail / hiking                         -   Marina / Pier / Jetty
-   Scuba Diving
-   Tennis
-   Swimming
-   Horses



Sea-side Resort and /or Get-away Cottages

Panama continues to see growth as a tourist destination. Contrary to a high-end resort option, more
moderately priced, smaller, get-away cottage opportunities could be a refreshing alternative to an
old theme. As well, Eco-tourism is gaining in popularity.

Points of Consideration & Additional Research:

-   Medium or high income target market           -   How can my resort be more unique than others?
-   Tourist demand – SA, USA, Asia, Europe        -   Eco-tourism
-   Local impact / job creation                   -   Golf Course
-   Effective target marketing campaign / study   -   River rafting
-   Current / future economic impacts             -   Nature Trail / hiking
-   Accessibility – land, air, sea                -   Scuba Diving
-   Marina / Pier / Jetty                         -   Tennis
-   Coral Reef / Artificial Reef Creation         -   Swimming
                                                  -   Horses

				
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