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Jatropha Q _ A Sheet

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					Jatropha Q & A Sheet
(Provided by CCF – 20th February 2009 – Note Evolving World Ltd are just Agents for this project)

1. What happens if my trees die, or are ravaged by disease or an act of God?
All trees will be replaced up to the minimum term of 35 years at no charge to the
tree owner. The programme manager will replace all dead or low-yielding trees
and any which become unproductive due to factors beyond normal control,
including but not limited to political, agricultural and weather risk.

2. What is the risk of the Jatropha tree not producing the anticipated 50 seeds
in year 1, 200 in year 2 and 350 seeds in years 3, 4 and 5 of the Nursery
Programme?

The average Jatropha tree produces between 600 and 1200 seeds per year. Like
anything else there is a risk but a minimal one in our opinion.

3. How are the seeds counted and recorded?

The Nursery Programme is a condensed, focused and localised operation which
produces volumes of high quality trees through known husbandry and hereditary
checks to ultimately arrive at high quality oil tree seedlings. With these trees, the
fruit is collected, weighed and then opened with the seed quality and volume
being recorded for every tree. The programme managers are keen to track the
nursery seeds through gestation into seedlings to ensure the mother trees are
producing the highest quality seedlings and thence oil trees. So every tree has the
fruit weighed and then the seeds extracted from the fruit in the field and these
are recorded and batched to ensure they are tracked.

The Oil Programme is a volume one. The farmers record the weight of fruit from
each tree at every harvest. This allows the programme manager to track the
yields, which is beneficial for the farmers as poor-producing trees are replaced
free of charge.

4. Who buys the end product?

The programme manager has established and developed the markets so they sell
energy and not oil. The energy is usually sold to the grid, principal outlets, blue
chip and established companies (if they manage energy distribution) or in some
cases, governments.

5. What happens when I have completed the application form and purchased
my trees?

You will be required to complete a Purchase Management Agreement and this,
along with your application form and investment amount, will be forwarded to the
programme manager. You will be allocated a Tree Account Number and, within 30
days of receipt of cleared funds and signed Purchase Management Agreement, you
will be issued with a Tree Certificate which recognises the trees’ birthday.
Newsletters and updates will be provided regularly and your revenues will be paid
to you at the end of each year, following your trees’ birthday.

6. Can we choose which country we have our trees in?

This isn’t possible as some of the programmes are fully subscribed. Returns are
similar throughout the plantations. The current Nursery Programme that has
availability is located in Thailand.

7. How likely is it that I will be able to re-invest my returns in the future?

The programme managers are constantly scouring the world for land which will be
suitable for the Jatropha programmes. There will be availability in the future but
it is difficult to set time frames due to the ever growing popularity of the
programmes.

8. How does the programme benefit local populations?

It is very empowering for local farmers as there is no sense of charity. They are
given the seedlings, shown how to look after them and the programme managers
agree to purchase the fruit produce from them at the end of the year. The pricing
element is critical. The programme managers pay less than food crop returns so
they don’t displace these primary food crops. Jatropha is placed as fencing or
peripheral land crops.

9. What is the background of the programme managers?
The Executive Chairman and Co-Founder has built several multi-million dollar sales
operations including the design, implementation and roll out of a web-based,
multioutlet international on-line brokerage operation which was sold into a US
small-cap public company for which he was a CEO and director. This public
company had an independent subsidiary oil company of which he was also CEO for
a period and upon this industry knowledge was founded the Green Oil operations.
He has worked as an independent business consultant for the last three years. The
principal role has been the commercialisation of companies within the emerging
carbon markets and renewable energy sectors including plantation management,
carbon consultancies, and biodiesel and bio-plastic processing. One of the
plantation management companies has secured commitments for $42m of funding
from US hedge funds as a direct result of the investment and exit strategies
implemented by him and which are now owned and have been developed by the
programme manager. He has established his own small holding in Asia as well as
working closely with farmers and plantation owners in the region to understand,
evolve and implement the business models through actual ‘in the field’experience
as well as financial commitment.

It is through the shop floor experience and detailed financial, market and product
analysis and comprehension that this business has been built and driven forward
into the market, allowing an entry point and solid career path for the public,
corporations and institutions into the renewable energy sector and emerging
markets – a truly commercial and sustainable business which positively impacts on
the environment, people less fortunate than us and everyone working with us.
10. What would happen if the programme managers were made bankrupt?

The purchase of trees is an ‘Alternative Asset’ class purchase: the tree owner
literally owns the tree which is oil producing and therefore valuable. The
programme manager works alongside two other project management companies
who are positioned to not only bring their expertise to bear but are also ideally
positioned to continue to manage operations should the programme manager
become insolvent.

In reality, the critical question is whether they will go bust. Every part of the
business generates revenue and all the overheads, except for a small proportion,
are performance related. Let’s take the oil tree for instance. We know from the
Nursery Programme that the seedling has a value of 4p. The programme manager
charges £1 for this and gives a very secure return of 20%, with the balance of the
money being used for sales fees, irrigation, fertilisation and operations including
farmer costs for the first two years while the crop comes to capacity. This means
they have almost no risk on execution of business plan and more than sufficient
revenue to meet overheads as it is all pre-paid. They also have security through
the farm exit price for the Green Oil as the programme manager owns the value
chain through the biodiesel and power production processes which significantly
enhances the revenue per litre. They have a target production of about 9 to 10m
litres this year, which is more than D1 Oils.

Every part of their business runs like this with carefully budgeted operations and
lots of ‘concrete wellies’ – conservatism. It is also important to reiterate that they
do not sell Green Oil, they sell energy, be it Biodiesel or electricity, which clearly
has a huge market and considerable demand to sell into.

11. How are the returns calculated in the Oil Production Programme?

You will be allocated 15 oil producing trees for every one that you have in the
Nursery Programme (i.e. 1,000 trees in the Nursery Programme would give you
15,000 in oil production). Each tree in oil production has a revenue yield in the
region of 41p. From years 6 to 10, 60% of the revenue is given to the tree owner
and then 30% from year 11 onwards. This equates to a 24.6 and 12.3% return
respectively.

12. What is the current prediction for the duration of demand for biodiesel,
bearing in mind that motor manufacturers are researching other forms of
propulsion than oil based internal combustion engines? Is there still likely to be
a high demand for biodiesel in 99 years? (I won’t be around but, hopefully, my
grand kids will be)?

If we take a look at technical advances over the last 3 decades, it is likely that
alternative fuel resources will become readily available, hydrogen particularly is
one to watch. However, the domestic generation for a developing nation of a
renewable, volume employing agribusiness which is scalable and safe will take
considerable displacing. The foreign currency reserve savings, energy
independence, political benefits and commercial stimuli to the economy make this
a very compelling investment but also a very hard one to replace. Hydrogen, for
instance, may be cheap (the technology will be as expensive as normal cars though
of course) but the roll out of this technology, the loss of jobs and financial
stimuli....well, lets just say if a new renewable, green fuel resource is found, I
suspect it will be a better plant than Jatropha rather than something
from nothing like solar, hydrogen or geothermal.

13. How does Jatropha compare to ocean-based plant sources (such as
seaweed) as a source of oil production? Is it likely that one source will become
preferable or will oil be produced from these sources in tandem?

All are part of the same solution. The issue with sea-based agriculture is the SEA.
It is a very harsh and dangerous environment for seaweed harvesting (but this is
something we are looking at already). Algae is a very good alternative also but this
is very capital intensive. Jatropha is perfect for developing nations as they simply
do not have the money!

14. How does this scheme benefit local populations? Are they employed by the
management company? Or do they farm the plantations themselves and sell the
oil bearing seeds to the company?

Both. Plantations employ, and outreach programmes buy, the produce from the
farmers. The outreach is a very powerful tool for expansion as it is very
empowering for the farmers: no charity. In essence, here are the trees (seedlings),
this is how you look after them and we will buy the fruit from you every year (the
market is very important). There is no loss of face as this is a commercial
relationship capitalised by us but allows us to secure considerable green oil
resources for many years to come. The pricing here is critical also – we pay below
the food crop returns which then does not displace the primary farm crops. The
Jatropha is placed as fencing or peripheral land crops. We see an average of 25%
net farmer income from this practice with outreach programmes.

15. Some of the plantations are not in the most politically stable areas. What
safeguards are in place to ensure the local populations reap the financial
rewards as opposed to the governments?

The UNFCC call this the trickle down effect – how do you get the money to the
farmer!
Simply put, we pay the farmer for the fruit. Issue solved. We control the
profitability of each plantation (operational costs vary obviously between
countries) and one of our drivers is to ensure some of this profit is fed back into
the communities. We control all of this.

16. Where are/will the refineries be based?

Logically, a 50,000MT refinery should be as close to the feed stock resource as
possible. This preserves value chain margins and reduces lower value product
logistical costs. However, other considerations including geography may influence
the final decisions on location. The optimum refinery size is 50,000MT which
requires about 20,000 hectares of Jatropha plantations to reliably supply at
capacity. Senegal will have 100,000 hectares rolled out by 2012 which will involve
5 strategically placed plants. Rwanda is the same.

17. This scheme appears to be the ‘perfect’ investment, but what guarantee do
I have that my pension will be safe if I invest it in Jatropha trees?

If we were to analyse the word ‘safe’ today, I suspect we would come up with a
very different descriptive to one only a few months ago, particularly if we banked
with an Icelandic bank! Is CCF professional and serious – yes; is the product being
sold into a market with considerable demand – yes; is there considerable political,
commercial and environmental support for the product – yes; is there an
alternative to undermine the compelling commercial story for Jatropha – no. I
guess the 64 million dollar question is ‘will this change’ - and destroy the value in
the pension? I believe not. I believe this is a ‘core wealth’ opportunity. Why?
Because crude Oil mineral rights have considerable value and this will continue as
long as heat engines or plastics, paints etc are used. Green Oil mineral rights –
Jatropha plantations – are equally if not more valuable as they have really no
declining oil reserves, are renewable and are attached to considerable community,
commercial and political reasons for continued use. But I think the clincher for me
is that this Green Oil is really the driver to the energy value chain which we
create. We sell energy, not oil. And energy demand is on the up. Not only
that, point me to any energy source that can create electric, lubricate and power
transport and power production or even produce oil based plastics? How much,
assuming there is one, would this cost to replace an energy resource that is almost
self funding? The biggest risk to your money is the failure of CCF or the failure of
the country within which your plantation trees are held. Dealing with this in
reverse order, if your trees die, drop in yield or there is a ‘force majeur’, we
replace them or transfer ownership to other trees in other countries if
necessary. CCF failure is very unlikely: we have a growing base of oil trees
ourselves and operate on costs being met from production with very few fixed
costs. However, should we fail, the plantation management companies who
operate our plantations can step in to take over the management and continue
generating revenues for a green oil product with a global market demand.
Additionally all the refineries are operated on a ring fenced BOO (Build, Own and
Operate) basis, so are independent from any commercial
failures within the value chain.

18. How are the seeds counted and recorded? With the large number of trees in
each programme, I think investors are concerned about how this will work.
We have in essence two programmes – one is nursery and the other is oil (Both tree
andlease ownership) which are both very similar in many respects but very
different in others:
The Nursery programme is a condensed, focused, and localised operation which
produces volumes of high quality trees through known husbandry and hereditary
checks to ultimately arrive at high quality Oil tree seedlings. With these trees, the
fruit is collected, weighed and then opened with the seed quality and volume
being recorded for every tree. Why? Simple: we want to track the nursery seeds
through gestation into seedlings to ensure the mother trees are producing the
highest quality seedlings and then oil trees. So every tree has the fruit weighed
and then the seeds extracted from the fruit in the field and these are recorded
and batched to ensure they are tracked. Are we mad? No, organised and
systemised, yes, confident in the quality yes, mad, perhaps.... but that is a good
thing, right? The balance of the fruit goes off to oil or fertiliser production as do
any deformed or marginal seeds. The Oil programme is a volume programme. We
get farmers to record the weight of fruit from each tree at every harvest. Why?
Because we can then track the yield, which is beneficial for the farmers as poor-
producing trees are replaced free of charge. We can then track weak-performing
trees – back to the mother tree perhaps – or geographical issues – too
wet/cold/dry/alkaline etc and resolve or replace or remove....ultimately we
follow and track performance which, as any quality commercial operation will tell
you, is critical to success. I hope these answers help. Ultimately, farming and
overseas investments carry risk and anyone risk averse should not participate.

19. What safeguards are in place to ensure this is not a Ponzi scheme?

The CCF company has recently attained PLC status which has an auditing
requirement. Additionally, we have both a UK Fund and a USA Mutual fund being
organised by Amicorp, a senior trust and wealth structure company which have a
considerable auditing requirement. Finally, GREENDAQ also has an auditing
requirement. Indeed this will have more oversight auditing than a public company.
All of this is in process. We only ask that people take up tree ownership when they
have completed DD and are comfortable.

20. A lot of investors, especially those investing through a SIPP, may not want
to receive annual income and elect to have their funds reinvested. This leads
to the possibility that we don’t see any cash for a long period of time, believing
that we are reinvesting our returns to generate a larger capital sum for
retirement. What safeguards are in place to ensure these future incomes are
available when required?

A lot of this is answered above. I would point out that Madoff successfully deceived
the SEC 8 times as well as auditors for 16 years so the argument is that there is no
such thing as a safe investment. Time will tell. What I can tell you is that CCF is
honest and doing everything it says on the box (and more) to create the credibility
to be a large player in the Green Oil industry which is developing very quickly. I
would also suggest that investors do get together to have an investor oversight
committee. This is a great idea. There are also the core investor issues about how
much money and where. I am a strong proponent that no more than 10% of any
investment portfolio goes into any one investment. If the cash portion of the SIPP
through CCF is greater than this 10% level, then re-investment is not
recommended: you should look for alternative places to put your money. This is my
personal opinion and NOT investment or tax advice. The investors with Madoff lost
money because they and their ‘wealth managers’ got very lazy. Attention to detail
and controls of revenues and assets is ultimately the responsibility of the investor.
This is another reason why I like the investor oversight group…..a great idea… we
can take this forward more as required.

21. What information will be available each year showing investors the number
of trees owned and income statements from their crop?
The question context I get as trees owned, seedling revenue (Nursery Programme)
from produce and the cash return to Sipp. This is a cash payment to the SIPP
account which is then re-invested or subject to prior notice, can be used for more
trees. This is accounted on a yearly basis.

22. Can the investors work together to ensure management delivers the
promises expected in the prospectus?

I think this is a great idea. It should be an ‘opt in’ investor group oversight
committee bringing a report from plantation visits, for instance. Something to be
looked at and taken forward. The report should also be then made available to all
current tree owners and perhaps those considering ownership.

23. How do SIPP investors realise their pension income from the plant income
stream, which will be for a longer period than the life of the pension? There
must be a way of selling your future income stream on the secondary market,
using some form of discounted cash flow model.

This is exactly why GREENDAQ has been brought into the equation. We already
know that hectares of Jatropha in Cambodia are selling after three years at
$15,000 each (up from $5,000 per hectare cost) but this is a principal to principal
physical asset transaction. GREENDAQ allows this transaction to take place on a
global exchange through the GOIU (Green Oil Investment Unit) which is auditable
and based on 2,500 trees on one hectare. This creates considerably more liquidity
in tree ownership which also allows funds and institutional participation. This also
opens up the lumber investment market which suffers considerably more from the
same issue, no liquidity because of long term realisation of revenue (Jatropha is
almost immediate) and higher value of asset: a hectare of Teak, for instance, is
VERY valuable.

24. Will accounts be audited each year and be provided for investors.

CCF has taken up PLC status. Plus funds and GREENDAQ. Auditing is a way of life!

25. YIELD: The yield on these trees is very uncertain and actually very labour
intensive since the fruit mature all through the year. Different varieties have
very different properties. Can I have real statistics from this management
company with crop yields and cash flows from their existing land please?
Yes, we will organise this for you. Actually, we have commissioned a white paper
from a double PHD which should be ready in a week and also Durham University is
doing some work on this right now. Perhaps this would be more appropriate being
totally independent?

26. COMPETITION: There are already huge investments in this crop all around
the world. The UK-listed company D1 Oils is said to be genetically
modifying the crop. Florida and many Asian areas have huge existing
investments and lastly it is said that enzyme technologies (fermentation)
will soon provide a greater potential. Please can you confirm if this
underlying company is linked to D1 Oils and what the arguments are for this
technology? Many governments are in fact subsidising the provision of these
seedlings and I see enormous supply ongoing - obviously impacting the seedling
price and the oil output.

Understanding the size of the market is critical. Energy demand is increasing
accordingto the IEA in Paris, notoriously conservative by nature, by 65% by 2030,
85% of which willbe in developing nations. Oil reserves are due to last about 42
more years (Chairman ofBP) and we currently use 85m barrels (167 litres each) PER
DAY. Additional to this is Gaswhich is due to run out in 50 years and coal which is
the dirty fuel and which was thought to have as much as 250 years of supply is now
only thought to have 100 years of supply. If all this coal is burnt, the world will be
dead in 30 years anyway. So we need 85m barrels of oil per day to replace the oil
requirements only. This is 14,191,000,000 Jatropha trees for each day of the year.
This equates to 5,678,000 hectares of Jatropha for each day of oil demand. To
understand this a little better, I would recommend a little research on Hubbert’s
Oil Curve or Peak Oil. We are also working on other crops such as Millettia which is
native to Florida and not so susceptible to frost and water supply fluctuations. No
matter if every government turned over every spare penny to this, there is not one
country in the world which can meet its own biodiesel demand now or for the next
10 years….

27. GUARANTEES: I understand this is pure venture capital (no guarantees at
all). I need to know at what oil price it is envisaged that production
would not be viable. Currently NYMEX light sweet crude oil is stable
at around $41/barrel. Would this proposition still be viable at say $25 per
barrel? I need to know the break even point for the existing plantations.

Our business model is built on energy supply values; processed crude through to
biodiesel. We can artificially inflate the return to the investor to ensure returns
are met even if the farm exit price is lower with profit being removed from our
trees (which may be debt financed or paid for by CCF) as our core goal here is the
securing of long term oil assets for the value processes of biodiesel, bio-plastic and
power production. If we take a moment to look at the CCF business model, tree
owners make up about 20% of our trees with the balance being debt or directly
paid for or outreach trees. This means we have, and excuse the pun, a large hedge
of trees behind the tree-owner trees which we use to initialise and capitalise the
plantations. Keeping this 20% happy is a priority as, without this, our innovative
funding will stall and we will then be in exactly the same position as all the other
Jatropha operators, which is today a very hard financial position for development.
Senegal, our 40m Euro project, has no more than $1m from the Government: they
simply do not have the cash. Rwanda is $2m. So while the statement that money is
flying into this industry is correct, it is not enough by a very
long way.

28. What is the US Dollar price of the individual tree? As they are not being
grown in the UK I assume they are being purchased in the US Dollar. Who is
taking the currency risk and how much risk can they take?

Current exchange rates apply. We have this built into our business model but
revenues are in sterling.
29. What is the price of a tree in US Dollars?

Today about $1.50 cents for the oil trees, $22.50 for the nursery trees based on a
very rough £1 = $1.50 exchange rate.

30. The Jatropha tree produces a nut, which is then harvested and turned into
oil. Surely the crop of nuts it produces will fluctuate in value depending on
demand, size of harvest, cost of production etc as in the case of wheat, maize,
sunflower and other crops, or is the price a fixed price? If it is a fixed price,
who has fixed the price?

We could bring in a thesis on this if you want! Okay, ultimately we are selling
energy. This energy is produced from value processes such as biodiesel and power
production which create considerable extra value for the green oil. This also gives
us a much more robust pricing model. Yes, oil price trends will reflect the Green
Oil pricing but we can be competitive at much lower pricing than crude and as we
add value down stream, we can pay our own pricing at a farm exit which keeps the
revenue attractive to the farmers and to the tree owners. An artificial market if
you like but very robust. So we ultimately set the market price. Also note in most
instances, we are the market!

31. You are the market: that is impressive. I understand that the end product is
energy but you are selling an investment in Jatropha trees which produce a
berry/nut which is then turned into energy. My understanding of the
investment is that there is a fairly complex process from berry/nut to Green
Oil. What I am trying to establish is what factors in the process can affect the
returns paid to investors, as surely you are not the only people producing the
Jatropha nut/berry.

To see the investment case, we need to understand that the business model is
modular. We have a farm exit price for the Green Oil (I will deal with that in a
minute) a logistics operation to get it to the value processes and then the value
processes themselves – specifically refining to Biodiesel, Bioplastics and power
generation. Include in this in due course lubricants. Our target is a volume Green
Oil supply. This is the catalyst for economy of scale benefits and the commercial
benefits this brings to an oil company. Green Oil is literally the oil extracted from
the Jatropha Fruit and Seeds, usually by squeezing as you would wine. There is no
further processing required of the green oil except for filtering (and possibly
centrifuging) to remove the impurities. Green Oil is vegetable oil. CJO (Crude
Jatropha Oil) is literally that and is comparable to crude oil calorifically. It is also
a better lubricant and clearly, as the CO2 for the growth of the fruit through
photosynthesis has been absorbed, any emissions are the release of these
GHG (Green House Gases) which are then re-absorbed. Net result, no emissions.
Better than this, the ‘banked’ carbon underground within fossil fuels is not brought
to the surface and released into the atmosphere due to their use being displaced
by this renewable, sustainable and commercially competitive alternative.
Environmentally, the release of the banked carbon is the largest unbalancing
factor at the moment alongside a large drop in Oxygen. And yes, we literally are
the market for the fruit from the Jatropha operations and other farmers, as in
most countries these routes to market are simply not developed. We have
seen Jatropha cut down in Thailand and Cambodia already before we got here
because there was no market for the farmers to sell into. To alleviate poverty, the
company must be commercial, but the value crop must also have a route to
market. These are the core operational issues for the success of the operations.

32. Do the Jatropha plantations turn the nuts into oil, or is that handled by a
separate company?

All our Jatropha produce is shipped as fruit. We then separate, utilising the
biomass as charcoal or fertiliser and the oil as green oil. We have different
arrangements for handling this in different countries.

33. The entities that are handling this part of the investment for you in
different countries, surely they will be interested if another party offers them
Jatropha at a lower price, or are they only contracted to process the Jatropha
you supply them?

Today, there is a chronic shortage of Jatropha oil. So we buy whatever we can get
our hands on as do the other operations. Indeed we are working on long term
supply contracts which in effect build a green oil resource or asset which is a
balance sheet asset (be it year to year) and more importantly value chain
revenues. So yes, we buy and our partner companies buy whatever we can.
The Rwandan project is under Eco-Positive and Eco Fuels. CCF developed the
business plan and the leases and commerciality of the project as a whole. One of
the things that has subsequently been agreed is a monopoly. I completely disagree
with this. All of these operations as much as possible must remain within a free
market. We are in a similar process with Senegal where the government wants to
secure the oil and biodiesel for Senelec, the electrical generating company.
Understandable, but this creates considerable risk for investors. To some extent,
we are also helping these countries understand the international investment
markets and the risk issues. I believe this has now been adjusted to a first option
at market price in Senegal and with right to sell domestically and internationally.
Much more investor friendly.

34. In the oil production programme, does the investor own an individual lease
for their land, or is the land leased to a company and the investor is a share
holder of the company?
We do not operate equity-based tree ownership programmes at the moment. This
is the domain of the regulated funds. However, should a client wish to invest a
large sum, we can wrap this into an SPV for them. Basically we offer Tree
ownership or volume tree ownership in a Green Oil Mineral lease.

35. So the investor doesn’t have a 99-year lease on the land as stated in the
brochure?

Yes they do but not in an equity format. The investment community has seen that
companies are mismanaged; that share values are manipulated or volatile thanks
to issues outside of the control of the company and many other reasons why
‘pooling’ assets within an equity structure is not the best solution to ownership.
Some of the big
funds agree and are creating funds for exactly what we offer among others - direct
asset ownership. The bank stocks are a classic example today of what was
considered a safe investment and that has been ‘significantly adjusted’ due to
market forces. (That was quite an understatement actually – I was going to use
crucified but...). The smart money today is looking for what used to be called
alternative asset class investments. This is the ownership of watches, wine, art,
cars, Lumber. All of these have an actual value (asset value) but usually suffer
from liquidity (Lack of buyers). Lumber falls into this category, a very good
investment but be ready to stay there for a long time.

We identified this as two of the four core issues which are:
— Asset value at inception with possible appreciation.
— Revenues
— Liquidity
— Accountability

So we offer direct ownership of a tree or a lease (the lease being a more formal,
structured product which reflects the investment level) with the option to change
management as required. This means you, as a tree owner, do not have anyone
using your money to lever debt, secure credit or any of the other plethora of
activities which take place within a normal company to generate working capital.
We have created liquidity not just through a secondary tree market (which is very
inactive right now) but through a global exchange which puts all of these trees
within a standardised and logical balanced commodity unit which then the market
values as the trees mature into Green Oil Mineral rights.

The front end risk of establishing a plantation is not attractive to a pension fund,
but three year old trees are. And should there be a call on the pension fund’s
capital, they can also sell through the exchange in a semi-liquid or if we are
successful, very liquid format. So when you take up tree or lease ownership, it is
not equity, it is not a financial tool for anyone else to use: it is yours to benefit
from, sell, trade or gift.

If a client was to come along and decide to make available say $2m, then we
would consider placing this into a corporate vehicle for tax reasons more than
anything else. Most projects try to bring large money into an equity position within
a project but this results in managerial risk, valuation risk and operational risk.
Direct ownership greatly simplifies the ownership and control.

The above questions and answers have been compiled by Carbon Credited Farming
to answer many of the questions posed about Jatropha Green Oil production and
the investment opportunity that it presents.

If your question is not answered here, please email us at info@evolving-world.com
and we will obtain an answer your question and add it here. Please contact us on
+44 (0)1638 for full details and a brochure or visit www.evolving-world.com

				
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