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MANAGEMENT PRESENTATION
              TSX-V: FRN
                    May 2012
FORWARD
LOOKING
STATEMENTS

             Certain information set forth in this presentation contains “forward-looking statements” and “forward-looking
             information” under applicable securities laws. Except for statements of historical fact, certain information contained
             herein constitutes forward-looking statements which include management’s assessment of Feronia’s future plans and
             operations and are based on Feronia’s current internal expectations, estimates, projections, assumptions and beliefs,
             which may prove to be incorrect. Forward-looking statements are provided to allow potential investors the opportunity
             to consider management’s beliefs and opinions in respect of the future so that they may use such beliefs and opinions
             as one factor in evaluating an investment in Feronia. Some of the forward-looking statements may be identified by
             words such as “may”, “will”, “estimates”, “intends”, “expects”, “anticipates”, “believes”, “potential”, “projects”, “plans”,
             and similar expressions. These statements are not guarantees of future performance and undue reliance should not be
             placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties,
             which may cause Feronia’s actual performance and financial results in future periods to differ materially from any
             projections of future performance or results expressed or implied by such forward-looking statements. These risks and
             uncertainties include, but are not limited to: liabilities inherent in farming; technical problems; Feronia’s inability to
             obtain required access to agricultural land, related permits and regulatory approvals required in connection with
             farming operations; dependence on third party transportation systems; competition for, among other things, capital,
             land, farming inputs and skilled personnel; incorrect assessments of the value of acquisitions; changes in commodity
             prices and regulations related to farming; the effects of competition and pricing pressures in the agricultural market; the
             oversupply of, or lack of demand for, agricultural products; currency and interest rate fluctuations; various events which
             could disrupt operations and/or the transportation of farming products, including labor stoppages and severe weather
             conditions; the demand for and availability of rail, port and other transportation services; and management’s ability to
             anticipate and manage the foregoing factors and risks. There can be no assurance that forward-looking statements will
             prove to be accurate, as actual results and future events could differ materially from those anticipated in such
             statements. Feronia undertakes no obligation to update forward-looking statements if circumstances or management’s
             estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to
             place undue reliance on forward-looking statements. Such forward looking statements and forward-looking information
             in this presentation speak only as of the date of this presentation.



                                                           M A N A G E M E N T              P R E S E N T A T I O N                2
COMPANY
COMPANY
SUMMARY
SUMMARY
    F E R O N I A O I L PA L M
•   100-year old plantations business (est. 1911)
•   Palm oil producer on 107,892 ha concession
•   Rapid growth in revenues and EBITDA from brownfield
    rehabilitation
•   World’s only palm oil business NOT dependent on
    deforestation for growth

                                                                       Trading Symbol             FRN:TSX-V
    FERONIA ARABLE
                                                                       Shares O/S                 145,064,764
•   Producing staple crops for local market and export                 Shares O/S fully-diluted   209,922,009

•   Leveraging the ideal agricultural climate with                     Recent Price (Jan 27/12)   $0.33
    year-round growing                                                 Market Cap                 $47.9 million

•   Reproducing the Brazilian agricultural phenomenon                  Institutional Ownership    ~ 80%

                                                                       Management & Board         ~ 10%

    FERONIA AGRI-MINERALS
•   Developing world-class agri-mineral deposits                      Feronia Nursery and Plantations
                                                          M A N A G E M E N T   P R E S E N T A T I O N           3
SENIOR MANAGEMENT TEAM
                                 • Engineer with 30 years experience in large-scale agricultural projects including
                                   Sierra Leone, Liberia, Côte d'Ivoire, Papua New Guinea, DRC & Uganda
   BILL DRY
   Chief Executive Officer
                                 • Previously managed a 30,000 ha palm oil plantation with a workforce of 6,000 in
                                   Papua New Guinea


                                 • 35 years experience working in agriculture in the DRC
   RAYMOND BATANGA               • Previously Director of Operations in the DRC for four agro-industrial units covering
   Chief Operating Officer DRC     25,000 ha focused on palm oil and other commodities with over 6,000 employees



                                 • Chartered accountant with over 30 years experience in public company finance
   DANESH VARMA                  • Previously CFO of several public companies on the TSX and other global
   Chief Financial Officer
                                   exchanges including: African Aura Resources Limited, Anglesey Mining Plc,
                                   Conquest Resources Limited, Labrador Iron Mines Holdings Ltd., Minco Plc


                                 • Managing Director of Feronia PHC (Oil Palm) since 2000 and employee since
                                   1975
   AGNES KASONGO
   Managing Director, Oil Palm
                                 • Specialized in finance and HR



                                 • 30 years farming experience with 22 years of overseas experience including
                                   Saudi Arabia, Oman, Egypt, Turkey and the United Arab Emirates
   MICHAEL PARKER
   Farm Director
                                 • Vast experience in mechanized arable cropping including rice, barley and maize




                                                           M A N A G E M E N T        P R E S E N T A T I O N         4
BOARD OF DIRECTORS 5 / 7 INDEPENDENT
RAVI SOOD              • Director and founder of several companies in the fields of agriculture, forestry, mining, and oil & gas

Chairman               • Founder and former CEO of Navina Asset Management Inc., a global asset management firm



H.E. BARNABÉ           • DRC Ambassador to the United Kingdom

KIKAYA-BIN-            • Previously Minister of Information and Press, serving as the official spokesperson for the government and
                         the Private Secretary to the President of the DRC
KARUBI
                       • PhD in Political Science and Journalism
Independent Director



STEPHEN                • Founder and CEO of Pan African Capital Group, LLC, managing pools of capital for investment in the African
                         markets and providing advisory services to US and African corporations and individuals investing in African
D. CASHIN                markets and companies
Independent Director   • Serves as a director of several corporations and non-profit organizations focusing on Africa


NIGEL GOURLAY          • Chartered Accountant; holds a degree in Agricultural Economics from London University

Independent Director   • 20 years experience with BAT Industries, responsible for global acquisitions and joint ventures



PHILIP CONDON          • Chief Executive Officer of Galane Gold Ltd., a TSX-V listed gold mining company operating in Botswana

Independent Director   • 22 years experience at large-scale mining operations in emerging markets, with expertise in project start-up,
                         commissioning, and effective and efficient management of equipment and human resources



JOEL                   • Founder and former President of Buchanan Renewables Fuel Inc., a biomass company in Liberia, West Africa

STRICKLAND             • Past President of Navitrak International Corporation, a geo-referencing systems company; previously a
                         fixed-income trader holding progressively senior positions at investment banks in Toronto and New York
Independent Director



                                                                             M A N A G E M E N T          P R E S E N T A T I O N        5
DRC OVERVIEW
DRC OVERVIEW

“   THE POTENTIAL FOR
    THE CONGO IS HUGE.
    IT COULD BE
    ANOTHER BRAZIL.                                            The Democratic
         Joachim von Braun, Director General,                  Republic of Congo
         International Food Policy Research Institute
                                                               is a vast country
                                                               approximately

“
    The giant Central African
    country has around 80 million
                                                               two thirds the size
    hectares of non-forest land                                of Western Europe.
    available for agriculture and
    could become a bread basket
    for the developing world, with
    some projections showing that
    it should be able to produce
    food for 3 billion people with
    optimal land use strategies.
                   IFPRI Report Exert




                                                        M A N A G E M E N T   P R E S E N T A T I O N   6
DRC OVERVIEW
 DRC OVERVIEW
  KINSHASA              SIGNIFICANT DOMESTIC DEMAND –
  (capital)             CROPS & EDIBLE OILS

 11th largest and 18th most populous country in the world (~70 million)
  forecast to become the 10th most populous by 2030 (130 million)
 FAO estimates 70% of food imported – Kinshasa alone consumes
  over 1,000,000 tonnes of imported grain per annum




  RICH SOIL             IDEAL CONDITIONS FOR AGRICULTURE
  Nutrient rich soil
  Ample rainfall
  Year-round growing season
  Abundant land available for large-scale agriculture
  Existing port and infrastructure to import equipment
   and export products to markets

                                                          M A N A G E M E N T   P R E S E N T A T I O N   7
OIL PALM OPERATIONS


Seedlings in nursery    18 month-old oil palms




15 year-old oil palms   Palm Oil Mill at Lokutu
                          M A N A G E M E N T   P R E S E N T A T I O N   8
PALM OIL     DEMAND                        $50 BILLION
–––––––– IS FORECAST TO ––––––––   –––––––––––––––        TO     –––––––––––––––

WHERE IS PALM OILBILLION
DOUBLE      $100 USED?
                                                      BY 2020

                    WHERE IS PALM OIL USED?




                                    M A N A G E M E N T   P R E S E N T A T I O N   9
PALM OIL                                                              “ EXTENSION OF A
                                                                            SUPER-CYCLE
                                                                                                                    ”
INDUSTRY                                                                          OIL PALM VS
                                                                             OTHER MAJOR OIL CROPS
M O S T I M P O RTA N T V E G E TA B LE O I L


50 BILLION ANNUAL MARKET
 Global palm oil demand is forecasted to grow at
  9% per annum – India and China are the largest
  consumers driving demand
 Supply-side cannot match demand – increased substitution
  from other more expensive vegetable oils is required

    85%+ of global palm oil supplied by Indonesia and
    Malaysia

    Geographic barriers to entry                                          HISTORICAL PALM OIL PRICES
      Can only be effectively grown within 7 degrees
        of the equator in areas of consistent heavy rainfall
      Global expansion limited by deforestation issues


 DRC is the industry’s best hope for sustainable
  expansion and Feronia is the only industrial scale
  operator in the country

                                                               M A N A G E M E N T   P R E S E N T A T I O N   10
PLANTATION LOCATIONS


OIL PALM
OPERATIONS
107,892 ha CONCESSIONS
   In continuous operation since 1911
   Highly trained workforce of ~4,000
   24% owned by DRC Federal Government
   Ideal location – river transport, soil, temperature, rainfall
   2 palm oil mills, a third under construction                      PLANTATIONS – COMPARATIVE SIZE
                                                                       PLANTATIONS COMPARATIVE SIZE
   17,854 ha of young or contributing palms (14,885 ha of
    young or conventionally producing palms)                          All these cities combined would
   Previously planted and producing on ~ 55,000 ha                   fit into Feronia’s plantations:
                                                                                       Amsterdam            21,900 ha
           Cap-ex < $2,700 / ha for replanting
                                                                                       Brussels             16,140 ha
           vs. $5,200 / ha for greenfields expansion                                   Dublin               11,499 ha
                                                                                       Geneva               1,586 ha
   Largest commercial supplier of Oil Palm seeds in Africa                            Lisbon               8,480 ha
                                                                                       Manhattan            5,950 ha
                                                                                       Montevideo           4,290 ha
    ESTABLISHED OPERATION WITH ABILITY                                                 Paris                10,540 ha
    TO EXPAND ON EXISTING LAND AT                                                      San Francisco 12,100 ha
                                                                                       Zurich               9,188 ha
    ½ THE COST OF GREENFIELDS                                                          ---------------------------------------
                                                                                       Feronia PHC 107,892 ha

                                                              M A N A G E M E N T   P R E S E N T A T I O N                  11
OIL PALM INDUSTRY OPERATING MODEL¹
 ILLUSTRATIVE ASSUMPTIONS                               COST ASSUMPTIONS
 Yield = 20 tonnes FFB / ha                             Fixed Costs = $10,500,000
 Oil Extraction Ratio (OER) = 20%                       Total Ha = 15,000
 CPO Price = $1,000 per tonne                           Fixed Costs per tonne = $1752
 Mature Plantings = 15,000 ha                           Variable cost per tonne = $250

 REVENUE (per ha)                                       GROSS MARGIN                         (per tonne)

 Production per ha = 20% * 20 = 4 tonnes
                                                        Margin / tonne = $1,000 - $175 - $450 = $375
 Total Production = 4 * 15,000 = 60,000 tonnes
 Revenue per ha = 4 * $1,000 = $4,000 /ha               Margin / ha = 4 * (above number) = $1,500
 Total Revenue = 60,000 * $1,000 = $60 million


                         GROSS        $2,300/ha                                         GROSS              $575/t
                         MARGIN                                                         MARGIN

                                                                                                           $250/t
  $4,000/ha   REVENUES     Variable   $1,000/ha         $1,000/t       REVENUES             Variable
                            Costs                                                            Costs


                            Fixed     $700/ha                                                 Fixed
                            Costs                                                             Costs        $175/t

                                                  (1)   All figures depend on Revenue Assumptions for Yield, OER, CPO Price 12
                                                  (2)   Based on assumptionM 15,000T
                                                         M A N A G E of E N hectares producing 60,000 A T I of CPO
                                                                                          P R E S E N T tonnes O N               12
FERONIA OIL PALM
––––––––– PLANTING PROFILE –––––––––

'000s ha
  70


  60


  50


  40


  30


  20
                                                                                          New Planting
  10
                                                                                          Immature

    0
                                                                                          Mature
           2011   2012   2013   2014   2015   2016   2017    2018   2019   2020   2021




                                                            M A N A G E M E N T   P R E S E N T A T I O N   13
DEEP VALUE
––––– BASED ON PLANTATIONS ONLY –––––
                     Deeply discounted valuation
                                                              (1)
              ENTERPRISE VALUE / MATURE LAND (ha)

 $35,000

 $30,000

 $25,000

 $20,000

 $15,000

 $10,000

  $5,000

     $0
           Average   Median    Low    FRN 2012   FRN 2016           FRN 2021


                                                        (1)     Adjusted to reflect 76.2% ownership

                                       M A N A G E M E N T      P R E S E N T A T I O N               14
ARABLE FARMING OPERATIONS



Land clearing      Feronia Farmlands at Lovo




Combines on site    Processing Facilities
                     M A N A G E M E N T   P R E S E N T A T I O N   15
FERONIA ARABLE – FARMING DIVISION

“ ITHATOF THE OPINION
    AM
        FERONIA
  HAS DISCOVERED                      BAS CONGO PROVINCE – AGRICULTURE
  A SECOND BRAZIL,                    ANALOGOUS TO BRAZIL
  a Mato Grosso 30 years ago:
                                         2,000,000 hectares of arable land, 500,000 hectares suitable
  With less cost to open                  for mechanization
                                         Nutrient rich soil with ample rainfall (no irrigation required)
  A better quality ground                Ability to triple crop land (rice, beans, millet)
  needing less correction

  A more uniform rainfall
  pattern
  No current competitors
                                      10,000 HA OF HIGH QUALITY LAND ACQUIRED
                                         10-year plan to acquire and plant on 100,000 ha of prime land
  An infrastructure of all-
                                         Multiple large-scale farms with centralized processing and
  weather roads in place
                                          storage centres
  A deep water port only
  200km away” (conclusions
  from Brazilian agronomic advisor)



                                                            M A N A G E M E N T   P R E S E N T A T I O N   16
FERONIA ARABLE – OWNERSHIP STRUCTURE
• Owns 100% of
  processing, storage,
                                                      FERONIA Inc.
  marketing operation
  Kimpese Agro-Industries
  Sprl (KAI)
                                PEK Sprl
• Owns 80% of farming          Land Vendor
  operation Feronia PEK
  Sprl                        20%               80%                      100%
• PEK Sprl is the original
  land-owner that vended
                                                KAI buys
  in 10,000 ha property                         unprocessed
  for 20% interest in           FERONIA         crop for 65% of
  Feronia PEK Sprl              PEK Sprl        realized price for
                              10,000 ha farm    End-product
• KAI dries, stores,
  processes, and markets                                                      Kimpese Agro
  crops and pays Feronia                                                     Industries Sprl
  PEK Sprl 65% of the                                                            (KAI)
  ultimately realized price                                                 Processing, Storage,
                                                                                Distribution


                                             M A N A G E M E N T     P R E S E N T A T I O N   17
FERONIA CONCESSIONS – BAS CONGO




                 M A N A G E M E N T   P R E S E N T A T I O N   18
ARABLE MODEL – ILLUSTRATIVE CALCULATION
 SAMPLE ASSUMPTIONS
 PRICE   Rice – $0.80/kg ($800 / tonne)
         Bean – $1.40/kg ($1,400 / tonne)
         Millet – $0.50/kg ($500 / tonne)

 YIELD   Rice – 5 tonnes/ha
         Bean – 2 tonnes/ha
         Millet – 1 tonne/ha




 RESULTANT REVENUE
 CALCULATION (per ha)

         REVENUE per ha / year
         $800 * 5 + $1400 * 2 + $500 * 1
         = $7,300 / ha


                                            M A N A G E M E N T   P R E S E N T A T I O N   19
AGRIMINERALS                                                                    Limestone Outcropping




 Operating unit set up to exploit agrimineral deposits
  for Feronia’s use, domestic consumption and export

 The Congo Basin is rich in agrimineral deposits:
  Limestone, Phosphates, Potash

 Feronia’s own business has enormous fertilizer
  requirements – potential to vertically integrate lime,
  phosphate, and nitrogen requirements locally to
  substantially reduce input costs

 Currently applying for limestone and phosphate
  concessions

 Once initial concessions acquired and small-scale
  extraction operations established will evaluate
  alternatives to fund this Feronia subsidiary




                                                     M A N A G E M E N T   P R E S E N T A T I O N   20
One of Feronia’s Schools

DEVELOPMENT
OUTCOMES
 Creating direct employment for nearly 4,000 people

 Providing employees and extended families with
  school facilities, hospitals and housing

 Reversing a reliance on imported food (70% of
  current consumption) into a new domestic industry
  and source of export revenues                                  BY BUILDING A PRODUCTIVE
                                                                 DOMESTIC AGRICULTURE
 Reducing local staple food prices by 50% by 2020 – a           INDUSTRY FERONIA IS
  savings of $750 million per
  year for residents of greater Kinshasa alone
                                                                 CREATING FOOD SECURITY
                                                                 AND INCREASING THE
 Providing the infrastructure (processing, storage,             HEALTH of Feronia’s Schools
                                                                     One AND PROSPERITY
  distribution) that will allow the expansion of the             OF THE NATION.
  small-holder farming sector

 Saving rainforests by replacing slash-and-burn
  sustenance agriculture with small-holder oil palm farmers

 Reducing economic dependence on minerals –
  the Congo was rich from its agricultural production
  long before its mineral wealth

                                                                 Hospital atPYaligimbaTPlantation
                                                        M A N A G E M E N T   R E S E N A T I O N   21
CAPITAL STRUCTURE
STRONG INSTITUTIONAL SHAREHOLDER BASE (82%)

   COMMON SHARES                                                          # Held    %age
    Institutional Investors (estimated)                            118,015,000         81.4
    Retail Investors                                                11,655,180           8.0
    BoD, Management, Insiders                                       15,394,584         10.6
   Total Shares O/S (Basic)                                        145,064,764        100%
   OPTIONS AND WARRANTS
     Management Stock Options                                       10,391,528
     Sep 8, 2013 expiry $0.60 strike warrants                       27,221,762
     Mar 31, 2013 expiry $0.90 strike warrants                      22,137,500
     Broker Warrants (Mar 31, 2013 expiry, $0.65)                    2,656,500
     Broker Warrants (Sep 8, 2013 expiry, $0.40)                     2,286,691
     Employee Share Purchase Plan Shares                                  163,264
   Fully Diluted Shares O/S                                        209,922,009


                                                    M A N A G E M E N T    P R E S E N T A T I O N   22
LONG TERM GOALS
   Plant 70k ha of oil palm, produce 280,000 tonnes of CPO per annum

   Diversify plantations operations with additional crops ideally suited to locations

   Plant 100,000 ha arable crops in Bas Congo province

   Build processing facilities to service all crop from Bas Congo


   Extend arable farming business into additional crops, proteins, and dairy
   Market crops into adjacent countries
   Expand seed into all categories to service own needs, small-holders
    and of export markets

   Create domestic fertilizer business from world-class potash, phosphate,
    and lime deposits in Congo basin and excess gas available for urea
    production – integrate with arable farming and plantation business to
    take costs to lowest in industry


                                              M A N A G E M E N T   P R E S E N T A T I O N   23
INVESTMENT HIGHLIGHTS
Unique Palm Oil Plantations
turnaround opportunity
Favorable Global Palm
Oil Fundamentals
Proven, Experienced, World-
Class Management Team
Clear Path to Revenue
and EBITDA Growth
Creating the ‘Next Brazil’
in large-scale agriculture

                             M A N A G E M E N T   P R E S E N T A T I O N   24
BILL DRY, CEO
Bill.Dry@feronia.com
Mobile: +44 (0)788 752 5046


INVESTOR RELATIONS
investor@feronia.com
Phone: +1 (416) 907-2027




                              www.feronia.com
                              M A N A G E M E N T   P R E S E N T A T I O N   25

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Company Presentation - May 2012

  • 1. MANAGEMENT PRESENTATION TSX-V: FRN May 2012
  • 2. FORWARD LOOKING STATEMENTS Certain information set forth in this presentation contains “forward-looking statements” and “forward-looking information” under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements which include management’s assessment of Feronia’s future plans and operations and are based on Feronia’s current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Forward-looking statements are provided to allow potential investors the opportunity to consider management’s beliefs and opinions in respect of the future so that they may use such beliefs and opinions as one factor in evaluating an investment in Feronia. Some of the forward-looking statements may be identified by words such as “may”, “will”, “estimates”, “intends”, “expects”, “anticipates”, “believes”, “potential”, “projects”, “plans”, and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Feronia’s actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: liabilities inherent in farming; technical problems; Feronia’s inability to obtain required access to agricultural land, related permits and regulatory approvals required in connection with farming operations; dependence on third party transportation systems; competition for, among other things, capital, land, farming inputs and skilled personnel; incorrect assessments of the value of acquisitions; changes in commodity prices and regulations related to farming; the effects of competition and pricing pressures in the agricultural market; the oversupply of, or lack of demand for, agricultural products; currency and interest rate fluctuations; various events which could disrupt operations and/or the transportation of farming products, including labor stoppages and severe weather conditions; the demand for and availability of rail, port and other transportation services; and management’s ability to anticipate and manage the foregoing factors and risks. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Feronia undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Such forward looking statements and forward-looking information in this presentation speak only as of the date of this presentation. M A N A G E M E N T P R E S E N T A T I O N 2
  • 3. COMPANY COMPANY SUMMARY SUMMARY F E R O N I A O I L PA L M • 100-year old plantations business (est. 1911) • Palm oil producer on 107,892 ha concession • Rapid growth in revenues and EBITDA from brownfield rehabilitation • World’s only palm oil business NOT dependent on deforestation for growth Trading Symbol FRN:TSX-V FERONIA ARABLE Shares O/S 145,064,764 • Producing staple crops for local market and export Shares O/S fully-diluted 209,922,009 • Leveraging the ideal agricultural climate with Recent Price (Jan 27/12) $0.33 year-round growing Market Cap $47.9 million • Reproducing the Brazilian agricultural phenomenon Institutional Ownership ~ 80% Management & Board ~ 10% FERONIA AGRI-MINERALS • Developing world-class agri-mineral deposits Feronia Nursery and Plantations M A N A G E M E N T P R E S E N T A T I O N 3
  • 4. SENIOR MANAGEMENT TEAM • Engineer with 30 years experience in large-scale agricultural projects including Sierra Leone, Liberia, Côte d'Ivoire, Papua New Guinea, DRC & Uganda BILL DRY Chief Executive Officer • Previously managed a 30,000 ha palm oil plantation with a workforce of 6,000 in Papua New Guinea • 35 years experience working in agriculture in the DRC RAYMOND BATANGA • Previously Director of Operations in the DRC for four agro-industrial units covering Chief Operating Officer DRC 25,000 ha focused on palm oil and other commodities with over 6,000 employees • Chartered accountant with over 30 years experience in public company finance DANESH VARMA • Previously CFO of several public companies on the TSX and other global Chief Financial Officer exchanges including: African Aura Resources Limited, Anglesey Mining Plc, Conquest Resources Limited, Labrador Iron Mines Holdings Ltd., Minco Plc • Managing Director of Feronia PHC (Oil Palm) since 2000 and employee since 1975 AGNES KASONGO Managing Director, Oil Palm • Specialized in finance and HR • 30 years farming experience with 22 years of overseas experience including Saudi Arabia, Oman, Egypt, Turkey and the United Arab Emirates MICHAEL PARKER Farm Director • Vast experience in mechanized arable cropping including rice, barley and maize M A N A G E M E N T P R E S E N T A T I O N 4
  • 5. BOARD OF DIRECTORS 5 / 7 INDEPENDENT RAVI SOOD • Director and founder of several companies in the fields of agriculture, forestry, mining, and oil & gas Chairman • Founder and former CEO of Navina Asset Management Inc., a global asset management firm H.E. BARNABÉ • DRC Ambassador to the United Kingdom KIKAYA-BIN- • Previously Minister of Information and Press, serving as the official spokesperson for the government and the Private Secretary to the President of the DRC KARUBI • PhD in Political Science and Journalism Independent Director STEPHEN • Founder and CEO of Pan African Capital Group, LLC, managing pools of capital for investment in the African markets and providing advisory services to US and African corporations and individuals investing in African D. CASHIN markets and companies Independent Director • Serves as a director of several corporations and non-profit organizations focusing on Africa NIGEL GOURLAY • Chartered Accountant; holds a degree in Agricultural Economics from London University Independent Director • 20 years experience with BAT Industries, responsible for global acquisitions and joint ventures PHILIP CONDON • Chief Executive Officer of Galane Gold Ltd., a TSX-V listed gold mining company operating in Botswana Independent Director • 22 years experience at large-scale mining operations in emerging markets, with expertise in project start-up, commissioning, and effective and efficient management of equipment and human resources JOEL • Founder and former President of Buchanan Renewables Fuel Inc., a biomass company in Liberia, West Africa STRICKLAND • Past President of Navitrak International Corporation, a geo-referencing systems company; previously a fixed-income trader holding progressively senior positions at investment banks in Toronto and New York Independent Director M A N A G E M E N T P R E S E N T A T I O N 5
  • 6. DRC OVERVIEW DRC OVERVIEW “ THE POTENTIAL FOR THE CONGO IS HUGE. IT COULD BE ANOTHER BRAZIL. The Democratic Joachim von Braun, Director General, Republic of Congo International Food Policy Research Institute is a vast country approximately “ The giant Central African country has around 80 million two thirds the size hectares of non-forest land of Western Europe. available for agriculture and could become a bread basket for the developing world, with some projections showing that it should be able to produce food for 3 billion people with optimal land use strategies. IFPRI Report Exert M A N A G E M E N T P R E S E N T A T I O N 6
  • 7. DRC OVERVIEW DRC OVERVIEW KINSHASA SIGNIFICANT DOMESTIC DEMAND – (capital) CROPS & EDIBLE OILS  11th largest and 18th most populous country in the world (~70 million) forecast to become the 10th most populous by 2030 (130 million)  FAO estimates 70% of food imported – Kinshasa alone consumes over 1,000,000 tonnes of imported grain per annum RICH SOIL IDEAL CONDITIONS FOR AGRICULTURE  Nutrient rich soil  Ample rainfall  Year-round growing season  Abundant land available for large-scale agriculture  Existing port and infrastructure to import equipment and export products to markets M A N A G E M E N T P R E S E N T A T I O N 7
  • 8. OIL PALM OPERATIONS Seedlings in nursery 18 month-old oil palms 15 year-old oil palms Palm Oil Mill at Lokutu M A N A G E M E N T P R E S E N T A T I O N 8
  • 9. PALM OIL DEMAND $50 BILLION –––––––– IS FORECAST TO –––––––– ––––––––––––––– TO ––––––––––––––– WHERE IS PALM OILBILLION DOUBLE $100 USED? BY 2020 WHERE IS PALM OIL USED? M A N A G E M E N T P R E S E N T A T I O N 9
  • 10. PALM OIL “ EXTENSION OF A SUPER-CYCLE ” INDUSTRY OIL PALM VS OTHER MAJOR OIL CROPS M O S T I M P O RTA N T V E G E TA B LE O I L 50 BILLION ANNUAL MARKET  Global palm oil demand is forecasted to grow at 9% per annum – India and China are the largest consumers driving demand  Supply-side cannot match demand – increased substitution from other more expensive vegetable oils is required  85%+ of global palm oil supplied by Indonesia and Malaysia  Geographic barriers to entry HISTORICAL PALM OIL PRICES  Can only be effectively grown within 7 degrees of the equator in areas of consistent heavy rainfall  Global expansion limited by deforestation issues  DRC is the industry’s best hope for sustainable expansion and Feronia is the only industrial scale operator in the country M A N A G E M E N T P R E S E N T A T I O N 10
  • 11. PLANTATION LOCATIONS OIL PALM OPERATIONS 107,892 ha CONCESSIONS  In continuous operation since 1911  Highly trained workforce of ~4,000  24% owned by DRC Federal Government  Ideal location – river transport, soil, temperature, rainfall  2 palm oil mills, a third under construction PLANTATIONS – COMPARATIVE SIZE PLANTATIONS COMPARATIVE SIZE  17,854 ha of young or contributing palms (14,885 ha of young or conventionally producing palms) All these cities combined would  Previously planted and producing on ~ 55,000 ha fit into Feronia’s plantations: Amsterdam 21,900 ha Cap-ex < $2,700 / ha for replanting Brussels 16,140 ha vs. $5,200 / ha for greenfields expansion Dublin 11,499 ha Geneva 1,586 ha  Largest commercial supplier of Oil Palm seeds in Africa Lisbon 8,480 ha Manhattan 5,950 ha Montevideo 4,290 ha ESTABLISHED OPERATION WITH ABILITY Paris 10,540 ha TO EXPAND ON EXISTING LAND AT San Francisco 12,100 ha Zurich 9,188 ha ½ THE COST OF GREENFIELDS --------------------------------------- Feronia PHC 107,892 ha M A N A G E M E N T P R E S E N T A T I O N 11
  • 12. OIL PALM INDUSTRY OPERATING MODEL¹ ILLUSTRATIVE ASSUMPTIONS COST ASSUMPTIONS Yield = 20 tonnes FFB / ha Fixed Costs = $10,500,000 Oil Extraction Ratio (OER) = 20% Total Ha = 15,000 CPO Price = $1,000 per tonne Fixed Costs per tonne = $1752 Mature Plantings = 15,000 ha Variable cost per tonne = $250 REVENUE (per ha) GROSS MARGIN (per tonne) Production per ha = 20% * 20 = 4 tonnes Margin / tonne = $1,000 - $175 - $450 = $375 Total Production = 4 * 15,000 = 60,000 tonnes Revenue per ha = 4 * $1,000 = $4,000 /ha Margin / ha = 4 * (above number) = $1,500 Total Revenue = 60,000 * $1,000 = $60 million GROSS $2,300/ha GROSS $575/t MARGIN MARGIN $250/t $4,000/ha REVENUES Variable $1,000/ha $1,000/t REVENUES Variable Costs Costs Fixed $700/ha Fixed Costs Costs $175/t (1) All figures depend on Revenue Assumptions for Yield, OER, CPO Price 12 (2) Based on assumptionM 15,000T M A N A G E of E N hectares producing 60,000 A T I of CPO P R E S E N T tonnes O N 12
  • 13. FERONIA OIL PALM ––––––––– PLANTING PROFILE ––––––––– '000s ha 70 60 50 40 30 20 New Planting 10 Immature 0 Mature 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 M A N A G E M E N T P R E S E N T A T I O N 13
  • 14. DEEP VALUE ––––– BASED ON PLANTATIONS ONLY ––––– Deeply discounted valuation (1) ENTERPRISE VALUE / MATURE LAND (ha) $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Average Median Low FRN 2012 FRN 2016 FRN 2021 (1) Adjusted to reflect 76.2% ownership M A N A G E M E N T P R E S E N T A T I O N 14
  • 15. ARABLE FARMING OPERATIONS Land clearing Feronia Farmlands at Lovo Combines on site Processing Facilities M A N A G E M E N T P R E S E N T A T I O N 15
  • 16. FERONIA ARABLE – FARMING DIVISION “ ITHATOF THE OPINION AM FERONIA HAS DISCOVERED BAS CONGO PROVINCE – AGRICULTURE A SECOND BRAZIL, ANALOGOUS TO BRAZIL a Mato Grosso 30 years ago:  2,000,000 hectares of arable land, 500,000 hectares suitable With less cost to open for mechanization  Nutrient rich soil with ample rainfall (no irrigation required) A better quality ground  Ability to triple crop land (rice, beans, millet) needing less correction A more uniform rainfall pattern No current competitors 10,000 HA OF HIGH QUALITY LAND ACQUIRED  10-year plan to acquire and plant on 100,000 ha of prime land An infrastructure of all-  Multiple large-scale farms with centralized processing and weather roads in place storage centres A deep water port only 200km away” (conclusions from Brazilian agronomic advisor) M A N A G E M E N T P R E S E N T A T I O N 16
  • 17. FERONIA ARABLE – OWNERSHIP STRUCTURE • Owns 100% of processing, storage, FERONIA Inc. marketing operation Kimpese Agro-Industries Sprl (KAI) PEK Sprl • Owns 80% of farming Land Vendor operation Feronia PEK Sprl 20% 80% 100% • PEK Sprl is the original land-owner that vended KAI buys in 10,000 ha property unprocessed for 20% interest in FERONIA crop for 65% of Feronia PEK Sprl PEK Sprl realized price for 10,000 ha farm End-product • KAI dries, stores, processes, and markets Kimpese Agro crops and pays Feronia Industries Sprl PEK Sprl 65% of the (KAI) ultimately realized price Processing, Storage, Distribution M A N A G E M E N T P R E S E N T A T I O N 17
  • 18. FERONIA CONCESSIONS – BAS CONGO M A N A G E M E N T P R E S E N T A T I O N 18
  • 19. ARABLE MODEL – ILLUSTRATIVE CALCULATION SAMPLE ASSUMPTIONS PRICE Rice – $0.80/kg ($800 / tonne) Bean – $1.40/kg ($1,400 / tonne) Millet – $0.50/kg ($500 / tonne) YIELD Rice – 5 tonnes/ha Bean – 2 tonnes/ha Millet – 1 tonne/ha RESULTANT REVENUE CALCULATION (per ha) REVENUE per ha / year $800 * 5 + $1400 * 2 + $500 * 1 = $7,300 / ha M A N A G E M E N T P R E S E N T A T I O N 19
  • 20. AGRIMINERALS Limestone Outcropping  Operating unit set up to exploit agrimineral deposits for Feronia’s use, domestic consumption and export  The Congo Basin is rich in agrimineral deposits: Limestone, Phosphates, Potash  Feronia’s own business has enormous fertilizer requirements – potential to vertically integrate lime, phosphate, and nitrogen requirements locally to substantially reduce input costs  Currently applying for limestone and phosphate concessions  Once initial concessions acquired and small-scale extraction operations established will evaluate alternatives to fund this Feronia subsidiary M A N A G E M E N T P R E S E N T A T I O N 20
  • 21. One of Feronia’s Schools DEVELOPMENT OUTCOMES  Creating direct employment for nearly 4,000 people  Providing employees and extended families with school facilities, hospitals and housing  Reversing a reliance on imported food (70% of current consumption) into a new domestic industry and source of export revenues BY BUILDING A PRODUCTIVE DOMESTIC AGRICULTURE  Reducing local staple food prices by 50% by 2020 – a INDUSTRY FERONIA IS savings of $750 million per year for residents of greater Kinshasa alone CREATING FOOD SECURITY AND INCREASING THE  Providing the infrastructure (processing, storage, HEALTH of Feronia’s Schools One AND PROSPERITY distribution) that will allow the expansion of the OF THE NATION. small-holder farming sector  Saving rainforests by replacing slash-and-burn sustenance agriculture with small-holder oil palm farmers  Reducing economic dependence on minerals – the Congo was rich from its agricultural production long before its mineral wealth Hospital atPYaligimbaTPlantation M A N A G E M E N T R E S E N A T I O N 21
  • 22. CAPITAL STRUCTURE STRONG INSTITUTIONAL SHAREHOLDER BASE (82%) COMMON SHARES # Held %age Institutional Investors (estimated) 118,015,000 81.4 Retail Investors 11,655,180 8.0 BoD, Management, Insiders 15,394,584 10.6 Total Shares O/S (Basic) 145,064,764 100% OPTIONS AND WARRANTS Management Stock Options 10,391,528 Sep 8, 2013 expiry $0.60 strike warrants 27,221,762 Mar 31, 2013 expiry $0.90 strike warrants 22,137,500 Broker Warrants (Mar 31, 2013 expiry, $0.65) 2,656,500 Broker Warrants (Sep 8, 2013 expiry, $0.40) 2,286,691 Employee Share Purchase Plan Shares 163,264 Fully Diluted Shares O/S 209,922,009 M A N A G E M E N T P R E S E N T A T I O N 22
  • 23. LONG TERM GOALS  Plant 70k ha of oil palm, produce 280,000 tonnes of CPO per annum  Diversify plantations operations with additional crops ideally suited to locations  Plant 100,000 ha arable crops in Bas Congo province  Build processing facilities to service all crop from Bas Congo  Extend arable farming business into additional crops, proteins, and dairy  Market crops into adjacent countries  Expand seed into all categories to service own needs, small-holders and of export markets  Create domestic fertilizer business from world-class potash, phosphate, and lime deposits in Congo basin and excess gas available for urea production – integrate with arable farming and plantation business to take costs to lowest in industry M A N A G E M E N T P R E S E N T A T I O N 23
  • 24. INVESTMENT HIGHLIGHTS Unique Palm Oil Plantations turnaround opportunity Favorable Global Palm Oil Fundamentals Proven, Experienced, World- Class Management Team Clear Path to Revenue and EBITDA Growth Creating the ‘Next Brazil’ in large-scale agriculture M A N A G E M E N T P R E S E N T A T I O N 24
  • 25. BILL DRY, CEO Bill.Dry@feronia.com Mobile: +44 (0)788 752 5046 INVESTOR RELATIONS investor@feronia.com Phone: +1 (416) 907-2027 www.feronia.com M A N A G E M E N T P R E S E N T A T I O N 25