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					Agroforestry Investment
Ethical Agroforestry Investments Maize Cultivation

Contents:
1. Ethical Agroforestry Investments 2. Maize Cultivation 3. Investment Opportunity 4. Questions and Answers 5. Valuation Report 6. Key Economic Indicators 7. Contacts

Introduction
The Agroforestry investment opportunity described in this document is open to private individuals, companies and any other organization who are looking for “tangible “hard asset” investment that are Socially Responsible Investment and Eco Friendly land development projects. This is not a collective investment or part of any fund. Investors have direct ownership of land, supported by title, lease and agreement documents. Graham Stuart & Associates Limited (GSA) and is a small firm of Business Management Consultants (established in 1987) that operates as a marketing, business development and distribution channel. GSA provides a range of uniquely structured and fully managed Land and Property based products, designed to meet the needs of entrepreneurial investment clients. Through our key strategic partnerships with International Property Developers, Land Developers, Hotel Groups, Forestry Plantation Companies, Agro-forestry Companies, Financial Advisors etc, clients are able to access well researched projects with all due diligence completed by Independent UK Solicitors. GSA is also a member of UK Sustainable Investment & Finance (UKSIF) whose mission is to promote responsible investment and other forms of finance that support sustainable economic development, enhance quality of life and safeguard the environment. They also seek to ensure that individual and institutional investors can reflect their values in their investments.

Section 1: Ethical Agroforestry Investments
Agroforestry is the combining of traditional forestry and agricultural processes to achieve maximum land productivity. In Malaysia, our plantation partners has been combining these husbandry practices for many years. During a forest's early development, there are many opportunities to interplant various crops between the trees. This is called interpolation. Not only does interpolation result in profitable crop yield, it also feeds nutrients into the soil thereby improving the development of the forest. As the trees grow and produce a canopy this reduces the light to the forest floor, providing perfect conditions for other crops, which thrive in these conditions. Agarwood, for instance, one of our core forestry species grows well in the shaded areas, which develop in a more mature forest. Tea also grows exceptionally well in these conditions, and in Malaysia we are already producing herbal teas on our plantations which have dedicated on site processing and packing facilities. Other interpolated crops include maize, dragon fruit, pineapple, bananas, mangosteen, mangos, peppers, chillies, lemongrass and many others with readily available local and export demand. For instance, we will be using lemongrass grown on our plantations at The Balung River in Malaysia to create branded lemongrass tea. This has been scientifically proven to reduce the growth of cancer cells when drunk regularly. We currently have 40.5 hectares (100 acres) ready for harvest from May this year. The Agroforestry Company is also pioneering the development and establishment of crops in countries that currently have to import to meet demand. As well as meeting economic objectives, this will also have an important environmental impact on carbon emissions - a major cause of global warming. Harvesting, packaging and transportation all create carbon dioxide. In the USA, scientists have now starting rating fruit, vegetables and other food products according to their carbon emissions. As the average product travels 1,600 kms to the retailer, many brands in America are now listing the carbon cost on their food products, prompting consumer awareness and providing shoppers with choice on carbon emission efficiency. In this context, in Sri Lanka, there is an annual shortfall in local maize production of around 225,000 tonnes, which has to be met by imports. By increasing Sri Lanka's indigenous output, the need to import will be reduced - along with carbon emissions. The Agroforestry Company is establishing its own interpolated plantations within our rainforest projects, thereby creating local jobs and stimulating local maize production. Maize will be in crop by late Spring 2009. The maize plantations are therefore both commercially and environmentally beneficial, and create further ethical investment opportunities alongside our forestry projects. We are also working in Brazil, Malaysia, Thailand, Guyana, Australia and Colombia on similar projects all launching this year, where our traditional forestry programmes run in parallel with Agroforestry projects, growing crops that are profitable, sustain local markets,

and are carbon emission efficient. The commercial advantage for our investors is that we are growing only proven well-known crops with a global market value and performance history, thus, in turn offering blue chip investment opportunities.

Section 2: Maize Cultivation in Sri Lanka
In recent years, commercial cultivation of maize has boomed in Sri Lanka and currently provides an attractive income and livelihood for local farmers. When compared to maize grown on the traditional paddy fields, commercially grown maize is more than four times as profitable. The Sri Lankan government has thrown its support behind efforts to boost the cultivation of maize. Production is centred on three multi-national companies and numerous small farmers scattered all over the island. The country needs 300,000 tonnes of maize a year, largely to meet demand for animal feeds rather than human consumption. Some 75,000 tonnes of maize is now being produced in Sri Lanka, but this still leaves a very considerable shortfall, which is met by imports from India, Australia and elsewhere. Bio-fuel plants are also springing up around the country, further driving up demand for maize. Investors should note that Sri Lanka is considered one of the best locations in south-east Asia for cultivating maize. The country has ideal conditions in terms of temperature, sunlight and rainfall to produce good harvests. The maximum time required for cultivation from seed to useable crop is 110 days. With well prepared fields, effective irrigation and cultivation, Sri Lanka already produces good to exceptional yields. The project will cultivate maize on government-owned land in the eastern provinces of Sri Lanka. This area is considered the best for agriculture with fertile land and ready availability of irrigation. One of the unique features are the reservoirs, some of which were built 1,000 years ago in the Anuradhapura Period. Some of these reservoirs extend to more than 40,000 metres and are used to store water for use in the dry season. Growing crops in Sri Lanka has traditionally been spread over two seasons. The main season, called Maha falls within natural rainfall, while the second Yala has to rely on irrigation. An additional season, utilising stored water, can be slotted in between Maha and Yala. The Plantation Company has supported the more effective use of sustainable natural underground reservoirs, which are replenished by annual rainfall to extend the viable range of the cultivation seasons.

The typical costs are:- Seeds US$27.50 - Fertiliser US$200.00 - Labour US$227.50 - Total US$455.00 Estimated Yield 1.2 tonnes/hectare (3.0 tonnes/acre) Purchasing Price Per M/ton (Avg.) US$272.00* Value of harvest US$816.00 Net Profit from cultivation US$361.00 Annual x 3 US$1,083.00

Effective storage of the maize crop, and the release of supplies within a well structured market strategy, enables the plantation company to tender the maximum yield on produce, thereby increasing the revenue and profit currently anticipated by around 25%. Current prices are around US$ 375 per tonne. (We use $272 in the above projected revenue). *Forward prices for Maize are currently listed at $380 per tonne in The Financial Times commodities index as at 30.1.2009, and are listed daily.

Threats
Insects have little impact on maize growth; organic spraying is highly effective, and interpolated growing can place one species against another in such a way that it actually deters the pests! The normal adversaries of maize growers (storm, bush fire and drought) have no significant impact in the locations that we have chosen. Where storm damage has been a problem in the past, this has usually been as a result of poor farming practice causing water from the hills to flood valleys below. Interpolated agriculture prevents such damage and is a very sound reason for supporting the development of such practices in Sri Lanka. The only major threat to the crop, though thankfully rare, is from wild elephants. Oxigen is working with local conservation agencies to keep elephants out, and is installing electric fences where necessary.

Additional Advantages
With the signing of Pre-sale Futures Contracts with local animal feed manufacturers, the consolidated sale of maize output at the time of harvest will be secured. By well researched, strategic release of stored crop reserves, The Plantation Company will ensure that they maximise the selling price of their produce. The Agroforestry Company consistently researches techniques for maximising crop value through widening the varieties of maize, accessing corn glutens, corn flour, and cultivating sweet corn and baby corn for human consumption. The Agroforestry Company already retains its own maize cultivation expert to oversee the plantations. Report prepared by Arjuna Dissanayake, December 2008. In central eastern Sri Lanka lie three estates of government owned land: the Sevenitiyapa Estate of 500 acres; the Dambulla Estate of 750 acres; and Sellankandal Estate of 200 acres (1,450 acres in total). Oxigen has successfully obtained agreements to Crown Leases with the Sri Lankan Government to grow and cultivate commercial crops. The Agroforestry Company also has options on further freehold and leasehold land in the Puttalam district. The Agroforestry Company has obtained the required permits from the government's Forestry Department to change the previous classification of “virgin scrubland” to “agricultural land”. This allows the Agroforestry Company to move ahead with its extensive and sustainable plans to grow and cultivate maize immediately, followed later this year by other types of crop and forestry species. As part of the agreement with the government, The Agroforestry Company has undertaken to encourage inward investment into Sri Lanka from foreign investors (see our official Sri Lankan BOI approval on www.forestryinvestment.org. To meet its obligations, the Agroforestry Company has invited private investment in blocks of this agricultural land on which maize crops will be grown and cultivated. This investment is made by way of buying the land on a renewable 33-year sublease from the Agroforestry Company’s Government Lease with an optional guaranteed five-year rental contract between the investor and the Agroforestry Company. This is renewable every five years and every five years thereafter. During this rental period the Agroforestry Company will pay a rental income of 15% per annum to the investor from their maize crop harvest profits. (Please see the returns tables for detailed yields and returns). Important note: your rental income is underwritten by the Agroforestry Company and is not dependent on harvest returns from maize or any other crops.

Section 3: 15% PA Agroforestry Investment Opportunity
The Agroforestry Company is pleased to introduce you to an outstanding land ownership and rental return opportunity within its Agroforestry projects.

Overview
In central eastern Sri Lanka lie three estates of government owned land: the Sevenitiyapa Estate of 500 acres; the Dambulla Estate of 750 acres; and Sellankandal Estate of 200 acres (1,450 acres in total). The Agroforestry Company has successfully obtained agreements to Crown Leases with the Sri Lankan Government to grow and cultivate commercial crops. The Agroforestry Company has also has options on further freehold and leasehold land in the Puttalam district. All of the required permits have been obtained from the government's Forestry Department to change the previous classification of “virgin scrubland” to “agricultural land”. This allows the Agroforestry Company to move ahead with its extensive and sustainable plans to grow and cultivate maize immediately, followed later this year by other types of crop and forestry species. As part of the agreement with the government, the Agroforestry Company has undertaken to encourage inward investment into Sri Lanka from foreign investors (see our official Sri Lankan BOI approval on www.oxigeninvestments.com). To meet its obligations, the Plantation Company has invited private investment in blocks of this agricultural land on which maize crops will be grown and cultivated. This investment is made by way of buying the land on a renewable 33-year sublease from the Agroforestry Company’s Government Lease with an optional

guaranteed five-year rental contract between the investor and the Agroforestry Company. This is renewable every five years and every five years thereafter. During this rental period the Agroforestry Company will pay a rental income of 15% per annum to the investor from their maize crop harvest profits. (Please see the returns tables for detailed yields and returns). Important note: your rental income is underwritten by the Agroforestry Company and is not dependent on harvest returns from maize or any other crops This meticulously structured investment programme not only provides the obvious rewards and gains for owners, but also provides the Agroforestry Company with a portion of the required amount of capital to allow for further land acquisition and further sustainable crop and forestry development and expansion of up to 50,000 acres already identified.

How does it work?
A client buys land in 10 acre blocks for £25,000 giving them title via a 33-year renewable Crown Lease to the UK equivalent of Grade 1 Prime Agricultural Land on one of the Agroforestry Company's government leased estates in central eastern Sri Lanka. A rental contract is drawn up between the Agroforestry Company and the owner, or an alternate company should the owner choose any alternate agricultural contractor or farmer of their choice, or indeed farm the land him or herself. The contract with the Agroforestry Company runs for a five-year term renewable at year 5 and five-yearly thereafter on the same terms (rent increase to run in line with RPI - Retail Price Index). The Agroforestry Company will plant, grow and harvest the maize crop on this land throughout the five-year rental agreement, during which time two to three harvests per year will be made to meet pre-sold contracts. The Agroforestry Company, backed up by harvest profits, will give the investor a rental income of 15% per annum on the initial investment paid every six months. The exit strategy also pays dividends. At the end of the initial rental contract term (five years), the Agroforestry Company will pay the owner the initial capital investment plus 10% taking into account expected increase in land values. This could be viewed as the worst case scenario as the investor has the option to sell the investment on to the open market, where the land with the rental income will possibly be worth more, in any event if chosen it returns the owner 17% per annum return over the five years, when added to the 15% fixed rent. LAND RENTAL The Agro-forestry Company will make a Rental Offer to the Customer, which the Customer in their absolute discretion may accept or decline. If the Rental Offer is declined, the Customer is free to use the Demised Land for what ever purpose, in accordance with the terms of the Lease. If the Rental Offer is accepted; The Customer shall rent the Demised Land to the Tenant for a period of five years at a rate of 15 % of the initial land purchase price per annum. During the rental period, we will underwrite all rent demands due to the Customer on behalf of the tenant. During the rental period, the Customer will grant a licence to the Tenant for use of the Demised Land for agricultural and associated purposes. 3.4 Once the initial period of five years has elapsed, we shall make another Rent Offer to the Customer upon the same terms (any rent increase to be set in line with Retail Prices Index RPI). This process shall be repeated upon the passing of each five year period during the term of the lease.

Section 4: Questions and Answers
Below we cite some of the most frequently asked questions, the answers to which provide the key considerations when assessing investment opportunities in Sri Lanka.

Q: What is the cost of virgin scrubland in central eastern Sri Lanka? A: Values range between £1,000 to £2,000 per acre depending on soil type, gradient and location; the model price is £1,800.00 per acre (£4,500 /hectare] according to the BOI Sri Lanka, but with the dramatic increase in local residential land values, and the impact of that on land with potential agricultural use, values are continually increasing. (See independent valuation report in section 5). Q: What is the cost of prime agricultural land in the region? A: As with virgin scrub land, values depend on soil type, gradient and location but the base values are in the range of £2,000 to £4,000 per acre and rising due to demand for good quality land. If one were to compare say with agricultural land value rises in the UK in 2008, where there is only one harvest per year, government statistics suggest a 30% rise in land value. In Sri Lanka, farmers routinely achieve two to three harvests per year. Once irrigation has been upgraded, which is the only significant capital cost, land values routinely double or treble. Due to the produce requirements and bad harvest elsewhere in the region, and limited availability of land to the market in Sri Lanka, all agencies predict that land prices will continue to rise. Q: Who will buy the Maize? A: The crop is pre-sold to local food production companies on forward (futures) contracts, with payments being made at harvest {or every 110 days to the Plantation Company. The Plantation Company is also planning to stockpile produce for strategic sale, post harvest at peak price levels. As the Plantation Company is not reliant on selling at harvest to fund land rentals, advantage can be gained from upward price fluctuations for sale. Prices variation can be between 25% and 35% in between harvests, when the only maize source is from imports. Q: When are the maize growing seasonals? A: The benign climate conditions in Sri Lanka allow growth all year round once irrigation is available for the dry season. (See our maize fact sheet). Q: Is the maize genetically modified? A: No. the Agroforestry Company has employed one of Asia's leading maize experts to oversee the agricultural division and ensure that the latest husbandry methods are utilized, without the need for the use of GM strains. Q: Can I see proof of the forward purchase contracts for my maize crop? A: Forward purchase contracts are made with local food production companies and we can always provide facsimiles of the contracts. Remember that you are renting the land but you are not reliant on harvest receipts to pay your rent; the rent is guaranteed by the Agroforestry Company. Q: Is the contract a rental or lease agreement? A: A rental agreement. Rental is fixed for five years, renewable on the same terms in five yearly cycles up to year 30 when the final agreement will be for the remaining three years in line with head lease with rental increases in line with RPI (Retail Price Index). Q: Can the 33 year lease be renewed and if so at what cost? A: Yes, the 33-year lease can be renewed by the Agroforestry Company (or any successor) upon payment of a nominal peppercorn rental for the grant of a new 33-year term, which means any owners of sub-leases can automatically renew at nominal cost. In effect, the lease is open ended in terms of how many times it can be renewed providing the land is being managed and maintained in accordance with the terms of the lease. Q: Who is the rental agreement with? A: The Agroforestry Company (all details are contained in the full presentation document once clients have registered their interest). Alternatively, you may, once contracts are agreed, negotiate subleasing the land to another company, farmer or indeed farm it yourself. Q: Can I see a sample copy of a rental agreement? A: Yes. These are readily available upon request. Q: Who is currently managing the land and the crops?

A: The Agroforestry Company (all details are contained in the full document once clients have registered their interest). Q: Are there any maintenance or management fees payable? A: No, all costs in the agreement are fully inclusive. Q: Who is underwriting the fixed rental income of 15% pa and my 10% on investment capital upon my exiting the investment? A: The Agroforestry Company

Q: How are these returns projected? A: They are based on current market rates for maize and yields. Q: In what currency are the returns paid? A: Any currency you wish, linked to the GBP equivalent exchange rate at the time of investment Q: Will currency fluctuations affect my rental returns? A: No. They are fixed in GBP. Q: What happens if the market rates / yields for my maize crop are higher one year? Do I receive a higher rental return? A: No. The owner's rental income is fixed. The same applies of course should the market rates / yields be lower, although this is highly unlikely. Q: Can I opt to receive my returns quarterly or annually? A: Either. Rentals can be paid every 6 months or can be paid quarterly. Q: Is the crop insured? A: Yes. The crop is insured against fire and other perils and is insured at replanting value. Q: Can I visit the site? A: Yes. We actively encourage it. Travel agent details can be found on our main website www.forestryivestment.org Q: Is there a penalty / cost for exiting mid lease or selling on? A: No. The investor can sell at any time. The Agroforestry Company offers a guaranteed exit from the investment after five years and every five years thereafter, producing a 10% yield on the initial capital investment in addition to 15% pa rental income. The investor is free to sell the benefits of the investment on to the open market at any time, where the land and its rental income should be worth more. Q: What is the tax position on such an investment? A: We are not authorised to give tax advice. We would suggest seeking advice from your accountant. However, land ownership leasehold and freehold can have benefits regarding capital gains tax and possibly inheritance tax. Should you require detailed advice we recommend Grant Thornton, who specialise in reviewing overseas forestry and land investments. Q: Is there a limit to the amount of land I can buy? Are there discounts for large purchases? A: No limit, no discounts. This is very much a launch offer. It is expected that the rentals will drop to 10% on future estates. At the moment, getting any form of guaranteed rental return is very difficult and bank rates are currently falling. Q: Are the returns compounded? A: No. They are fixed annual rental payments.

Q: What happens if the Agroforestry Company or any of its overseas companies/partners should encounter financial difficulty, or cease trading? A: You own the land and it will always have a value. You also have the option at any time to manage the land yourself, or via a third party agricultural or farming company of which there are many in Sri Lanka. Q: How many harvests are there? Will the number of harvests affect my returns? A: No. Two to three harvests a year are expected. The investor's returns are fixed as a land rental. Q: Is there a cost to renew the rental agreement after 5 years? A: No. The rental agreement can be renewed or terminated every 5 years at no extra cost. It can also be terminated on 12 months notice by the owner at any time if they want to appoint an alternate company to farm their land. Q: 2% pa seems a low projection on the land’s expected increase in value over 5 years. Is this also fixed? A: This is a fixed valuation should the investor decide to exit through the Agroforestry Company. As explained earlier this is very much a worst-case exit strategy. The owner has the option to sell the land on the open market where the land with a guaranteed rental value should be worth more. We offer this as very much a worst-case exit route for the owner and a fair deal for the Agroforestry Company should the owner require this. Q: What's in it for the Agroforestry Company? A: After the Agroforestry Company pays the owner the rental of 15%, they still make profit of around 15% net per annum. This profit provides the Agroforestry Company with a portion of the required amount of capital to allow for further land acquisition and further sustainable crop / forestry development, and of course to show a realistic profit for its shareholders. Q: Why grow Maize? A: There is currently a 225,000 tonne shortfall in maize requirement in Sri Lanka, which creates a ready-made local market. Additionally, maize is a traditional crop grown the world over. Returns and prices are easily verifiable particularly as it is traded as a futures commodity on the world's stock exchanges. The potential for local maize production to respond to local market needs and its growing use in biofuels can only ensure that it is a commodity with a strong and solid growing market appetite. Q: Will the war and terrorist problems in Sri Lanka affect my returns. A: It’s fair to say that the war in Sri Lanka is nearing a conclusion. Whilst there may be some short term associated bad press in the medium to long term once the war is over foreign investment will pour in. Some of the world’s largest companies (Marks & Spencer, Liptons, HSBC etc) are already well established in the country. This increase in foreign investment could well see land values increasing dramatically over the next two to five years. The Agroforestry Company is already well placed to secure land prior to any potential increases in values. We hope that among the above we have answered some of your own questions, and indeed assisted you in your own due diligence and research into this unique land ownership and rental return opportunity. For further details and information we invite you to speak to a member of our consultancy team who will be happy to help you further with any aspect of your enquiry on 0845 050 5371.

Section 5: Valuation Report:

Agroforestry Values in Sri Lanka
INSTRUCTIONS Rollo Smith Associates (International) Ltd have been instructed by the Agroforestry Company to give its opinion on land values for those areas in which they currently have an interest to include an overview of the rural property market for Agroforestry projects in the target area of the central and eastern highlands of Sri Lanka. The land areas which the Agroforestry Company has acquired are currently designated as virgin scrub. This report is provided on the basis of the Special Assumption that there will be government agreement to reclassification of the land as forestry plantation with permitted Agroforestry extension. A second Special Assumption has been made on the Projected Value shown herein which is made on the basis of the land value of the land once improved and irrigated, on 2009 values, and a further projection is given to reflect land value once improved and post-civil war to include the economic benefits which are already apparent in early 2009. QUALIFICATIONS & EXPERIENCE Rollo Smith Associates (International) Ltd incorporate a varied team of valuers and surveyors with a significant breadth of experience in a broad area of surveying disciplines. This valuation project has been undertaken by S J Rollo-Smith, BA Hons MRICS FRSA. He is a chartered surveyor of 30 years experience, including many years of practice for private clients and Lloyds of London on forestry in general, and of forestry projects in Sri Lanka and Thailand and Malaysia since 1992. BRIEF HISTORY OF LAND USE IN SRI LANKA We believe that it is important to have an understanding of the historic background to agriculture and forestry in Sri Lanka before considering the place of the Agroforestry Company’s own investment in the island. After centuries of colonial rule under Portuguese and Dutch control, Sri Lanka became a British Crown Colony in 1818 and a unified agricultural administration for the island was then set up. Coffee was initially the main crop and the backbone of the colonial economy, but the occurrence of leaf blight virtually wiped it out in the 1870s and the plantations quickly switched over to tea or rubber. Today Sri Lanka is the world's second largest tea exporter. The British were unable to persuade the Sinhalese to work cheaply and willingly on the plantations, so they imported large numbers of South Indian labourers to work the estates. In 1935 the government of Sri Lanka took a bold step in land reforms, reversing the British colonial policy of bringing land under government control, and the Land Development Ordinance of 1935 returned land to peasant farmers. Since then a total of 1.5 million hectares of government-owned land has been granted to farmers. The resultant land parcels were not considered a capital asset with market value, until very recently. Then the government came to view the financial conditions on land holding as an inhibition to rural development and agricultural productivity, and a Land Ownership Bill, aimed at giving freehold titles to these lands, was proposed as part of the government's Poverty Reduction Strategy, and was underwritten by the World Bank. The Bank argued in its position paper for the Sri Lanka Development Forum in 2002 that the land market should be developed by issuing saleable or free titles to the farmers and to such “green aware” projects such as those underway by the Agroforestry Company. This, it argued, would enhance farmers' ability to cultivate larger plots using modern technology and machinery such as those now being introduced by agencies such as the Agroforestry Company leading to better productivity and income. A proper title would also lead to better access to credit, and thus after many years of stagnation, the market is now ready for such initiatives as the Agroforestry Company’s own process of interpolated Agroforestry.

This has resulted, almost overnight, in a rapid appetite for the acquisition of land licences, with a consequent increase in the land values themselves. When considering land values in the areas surrounding the Indian Ocean, access to viable irrigation is the vital component of any agricultural process and thereby land value. The history of irrigation in Sri Lanka goes back more than two thousand years. It would be hard to find so many works of irrigation, which are, at the same time, of such great antiquity, and of such vast magnitude, anywhere else in the world. Over time many traditional irrigation systems were abandoned due to the issues relating to land tenure. Following on land reform, there has been a systematic process of reuse of the traditional systems which has met with mixed levels of success, but unlike many of the adjacent countries, the historic installation of massive cisterns and canals has ensured that the underlying geology retains high levels of water. The recent advent of tube well and drip irrigation, as utilised by the Agroforestry Company, has revolutionised land development on the island. This has permitted a far more practical access to water from sub water table aquifers.

Accordingly, land formerly deemed to be marginal, solely due to its distance from the canalised and cistern based irrigation systems and not through the actual quality of the land itself, can now be brought into efficient agricultural use. That is the basis of the Agroforestry Company’s products, which has enabled the acquisition of leases on viable agricultural land, previously considered to be marginal solely because of the lack of effective irrigation.

Sustainable agricultural processes, such as the Agroforestry Company‘s interpolation of maize with forestry, are now targeted at the local market rather than more profitable but market and transport cost sensitive crops for international supermarkets, and given the sustainability of production for the local market, land values have improved dramatically.

The introduction of sales of small plots for potential residential development have also fuelled demand for land. Direct financial aid, foreign debt relief and fiscal assistance from the IMF received after the Tsunami actually helped Sri Lanka step back from the brink of macro-economic fundamental deterioration and has helped stabilize the country's fiscal operations. Furthermore, significant and sustained local effort has been put into rebuilding resort areas and Sri Lanka has managed to retain its strong position on the world tourism map thus ensuring the country remains a desirable destination with sustainable growth in local agriculture. The far reaching positive benefits of the foreign aid received by Sri Lanka alerted the government to the fact that foreign direct investment can be good for an economy and a significant amount of effort is now being put into targeting sustained investment such as provided by the investors in the Agroforestry Company. Basic agricultural land, with guaranteed provision for tube well irrigation, has increased in value threefold from 2005-2008, and current demand significantly outstrips supply. This is particularly true of the central highlands, where cooler temperatures, excellent rainwater provision and good soils are the perfect location for Agroforestry interpolation processes. The advent of such productive land management has halted and indeed reversed the dangerous impact of soil erosion and the flash floods which had been the inevitable result of earlier poor land management. As a consequence, land values in areas associated with sustainable forestry and Agroforestry are currently expected to increase at a conservative estimate at 15% per annum, and in all likelihood at 20% per annum. Based on our research into current market, our special assumptions on land designation and irrigation processes, and our knowledge of the local conditions we are of the opinion that a current unencumbered land value of GBP 1,800.00 per plantable acre (GBP 4,500.00 per hectare) is fair and reasonable. Land already in cultivation, with irrigation in place, would have a current unencumbered land value of GBP 3,500.00 per acre (GBP 8,750 per hectare), and, on current projections, a value of GBP 4,500 per acre (GBP 11,250 per hectare) to reflect the postcivil war peace dividend. DISCLAIMERS This report has been prepared based upon information made available to us in relation to the Agroforestry Company Agroforestry Report as at the date of the valuation. We believe that this information is accurate and complete but we have not independently verified all such information. This report has been prepared for inclusion in an Information Memorandum (“IM”) to be issued by the Agroforestry Company as at 1 Feb 2009. Rollo Smith Associates Ltd has not been involved in the preparation of any part of that IM and has not been required to approve or express any opinion about any part of that IM other than this valuation report, and any extracts appearing elsewhere in any IM. Rollo Smith Associates Ltd therefore cannot, and does not, make any warranty or representation as to the accuracy or completeness of any information or statement contained in any part of any IM other than those expressly made or given in this report or extracts appearing elsewhere in any IM. Rollo Smith Associates Ltd specifically disclaims liability to any person in the event of alleged false or misleading statement in, or material omission from, any part of an IM other than in respect to the material prepared in this report. Rollo Smith Associates Ltd does not hold a dealers license as at the date of this report. Rollo Smith Associates Ltd does not have any other interests (whether pecuniary or not and whether direct or indirect) or any associations or relationships with the Agroforestry Company that might have reasonably be expected to be or have been capable of influencing Rollo Smith Associates Ltd in providing this report.

Agroforestry – Investment Guide
Please find below a step by step guide to the order completion process of your Agroforestry investment. 1. Upon receiving your order form and cleared funds for your Agroforestry, you will immediately be sent confirmation of receipt and acceptance. 2. Oxigen will then start to put together your Maize owners pack, this will be made up of; A - Land Lease Agreement. B - Rental contract with the Agroforestry Company. C - Site location plan. D - Renewal request for rental contract in 5 years E - Buy back request / option contract in 5 years. F - Lease transfer / assignment request form. 3. Once the above documents are in place, you will then be sent your complete Maize owners pack. This will take 7–10 days. 4. Your rental contract commences from the day your order form and cleared funds are received. You can choose whether you wish to receive your rental payments quarterly or bi-annually. 5. All rental payments can be made to an account of your choice. Should you have any further questions relating to the order process for your Agroforestry, please do not hesitate to talk to your consultant or one of our client care team, who will be happy to answer these for you.

Contact Details:
Graham Stuart & Associates Ltd Peel House 2 Chorley Old Road Bolton BL1 3AA Lancashire Tel: 01204 592698 Fax: 01204 597720 Email: graham@gsacomms.com Web: www,gsacomms.com Web: www.forestryinvestment.org


				
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Description: Agroforestry Investment