This forestry investment financial analysis document has been prepared for the GW Group in specific relation to Teak forestry investments in Costa Rica. The GW Group is focused on forestry investment and agricultural projects and currently owns and operates substantial areas of land in both Brazil and Canada.

1. Tectona grandis – Financial Analysis Annex

2. Table of Contents
Basic variables...............................................................................................................................................................................................................3
Costs Table Variable definitions....................................................................................................................................................................................4
Scenario Matrix Table...................................................................................................................................................................................................6
Scenario Matrix Table Definitions................................................................................................................................................................................7
Tabulated results of NPV, NFV, IRR - 4 scenarios.....................................................................................8
Tabulated costs – applicable to all 4 scenarios..........................................................................................10
Graph 1: Wood at Mill yard & Land Lease Scenario................................................................................11
Graph 2: Wood at Millyard & Land Purchase Scenario............................................................................12
Graph 3: Stumpage & Land Lease Scenario.............................................................................................13
Graph 4: Stumpage & Land Purchase Scenario........................................................................................14

3. Basic variables
Species: Tectona grandis
Land Purchase Cost: 5000 per hectare
Land Lease Cost: 1000 per hectare
Interest Rate: 1% - 8% (-13%)
En patio: GWM harvests the timber and delivers it “at the millyard” (en patio de aserradero)
En pie: contractor harvests the timber and pays a price to GWM, called as “stumpage” and “stumpage price”
Timber price source: www.officinaforestal.cr
Variables calculated: Net Present Value ((NPV), Net Future Value (NFV), Internal Rate of Return (IRR)

4. Costs Table Variable definitions
Variable
AGE
Actions
Vtcc V (Vtree*N) THINNED (remaining)
V_12_UB REMAINING
REMOVED_Volume_Total
REMOVED_V_12cm_Top_Diameter (Rough)
Definition
The age of the plantation
Prescriptions and management tasks
(Volume total con corteza) Total volume without bark which is residual to the stand after a
thinning operation
Total volume without bark until a top minimum log diameter of 12 cm
Total Volume Removed (from a thinning or harvesting operation)
Removed Volume from an operation until a top minimum log diameter of 12 cm
N trees removed
Number of trees removed
Stumpage Price
The Stumpage price per cubic meter
Mill Yard Price
The Mill yard price per cubic meter
Stumpage income
The income from the specific Stumpage sale
Mill yard income
The income from the specific Mill Yard sale
STUMPAGE Thinning cost
The thinning cost for the stumpage sale

5. Variable
Thinning cost
Transport Thinned logs
Pruning cost
Maintenance and Management cost
Final harvest and transportation cost (for PATIO)
STUMPAGE costs
ENPATIO Costs
Land purchase cost
Land Lease cost
Seedling cost (included in the establishment cost)
Establishment Cost
PLUS-MINUS PATIO
PLUS-MINUS STUMPAGE
Definition
Thinning cost of the Mill Yard Sale Operation
Transport of thinned logs
Prunning Cost – usually at early ages, until 4-7 meters
Several re-occuring costs
The Final harvest and transportation cost applicable to the Mill Yard Operation
Total Stumpage Costs
Total At Mill Yard Costs
Per Hectare Land Purchase Cost
Per Hectare Land Lease Cost
As below
The cost of plantation establishment
(Income) Minus (Costs) for the At Mill Yard Management Option
(Income) Minus (Costs) for the Stumpage Management Option

6. Scenario Matrix Table
NPV, NFV, IRR analysis was done for each of the 4 scenarios below, using as input the growth of the Species Tech Report, and the price information
avaliable.
Land Lease
Land Lease x Wood at mill yard
Wood at mill yard
Land Purchase
Land Purchase x Wood at mill yard
VARIABLE
INTEREST RATE
VARIABLE
INTEREST RATE
NPV, NFV, IRR
1.00% - 13%
NPV, NFV, IRR
1.00% - 13%
Land Lease x Stumpage
Stumpage
Land Purchase x Stumpage
VARIABLE
INTEREST RATE
VARIABLE
INTEREST RATE
NPV, NFV, IRR
1.00% - 13%
NPV, NFV, IRR
1.00% - 13%

7. Scenario Matrix Table Definitions
Term used
Definition of term
Wood at mill yard
Wood is harvested and delivered to Mill Yard, receives a price at millyard
In spanish: “en patio de aserradero”
Stumpage
Wood is sold as standing trees, plantation owner receives a price for the
wood sold
In Spanish: “en pie”
Land Lease
Leasing of the plantation property
Land Purchase
Purchasing of the plantation property
NFV
Net Future Value
NPV
Net Present Value
IRR
Internal Rate of Return

8. Tabulated results of NPV, NFV, IRR - 4 scenarios

10. Tabulated costs – applicable to all 4 scenarios

11. Graph 1: Wood at Mill yard & Land Lease Scenario

12. Graph 2: Wood at Millyard & Land Purchase Scenario

13. Graph 3: Stumpage & Land Lease Scenario

14. Graph 4: Stumpage & Land Purchase Scenario