1. Varietal Forestry: Technology, Performance, Value Arkansas Forestry Association October 5, 2011 John Pait

4. CellFor’s Global Footprint Chile Radiata > 7 ,000 varietal lines in trials Brazil/ Argentina Loblolly British Columbia Spruce, Doug Fir South East USA Loblolly, Slash New Zealand Radiata Australia Radiata South Africa Patula

6. Drivers for Productivity Gains Adapted from Fox, T.R., E.J. Jokela, and H.L. Allen, 2004

7. Power of Genetics Proven in other Agricultural Crops Open-Pollinated Varieties 1866 to 1933 Double-Cross Hybrids 1934 to 1955 Single-Cross Hybrids 1956 to 2001 Source: National Agricultural Statistics Service . Corn Yields 1866 to 2001 Current phase of conifer genetics

10. First Patent Issued for A Tree for Reforestation: Varietal CF L3791 US PP19,447, P3 Pait , et al. November 11, 2008 Loblolly pine tree named ‘ CF L 3791 US PP19, 793, P3 Pait et al. March 3, 2009 Loblolly pine tree named ‘ CF Q7766’ US PP21,973, P3 Pait et al. June 14, 2011Loblolly pine tree named ‘ CF LP17696’

11. CellFor Plantings 2000 – 2010 Over 1,000 Forest Stands in +175 Counties

12. CellFor Production Overview Produce Plantable Germinants Grow Plantable Germinants into Miniplugs Grow Miniplugs into Finished Seedlings CellFor Labs (BC, Canada) Contract Nurseries (Canada & USA) Process completed in 12 to 18 Months Contract Nurseries (USA)

14. CellFor’s lab process starts with a green cone and immature seed

15. Young embryo resides within the megagametophyte Zygotic Embryo Embryonal Cavity Megagametophyte

16. Embryogenic tissue from dissected seed

17. Embryogenic tissue is multiplied and cryopreserved for long term storage

18. Embryo and Germinant Production Transfer to Germination Mature Pine Embryos Plantable Germinant Cryo Preserved Tissue Tissue Initiation Tissue Bulk-up

19. Germinants from Somatic Embryos

20. Seedlings Ready for Transplant

21. Miniplugs Await Transplanting

22. Containerized Seedling Nursery

23. Bareroot Nursery Crops

25. Q7766 18 months old Resource Mgmt. Service Bolton, NC Growth

26. GROWTH: Q7766: 24 months

27. Growth: New CellFor Variety Winning by 47% in CellFor Line Trial in Argentina at Age 2

28. Growth: Q7766 Age 2 North Carolina

29. Outstanding Growth: CF O3621 Age 6 R.O. Martin

30. Uniformity in 20 Year Old Stand Varietal trial

31. Disease Resistance Age 6 years: Rust Impacts STP Q3802 0% Stem Rust OP Family 22% Stem Rust

32. Reduced Risk: Disease Resistance is Dramatic

33. Uniformity in Varietal Loblolly Pine Uniformity Q3802 Age 5, Alabama 5

34. Log Quality Q3802 Small Branches

35. CF Q3802 Q3802 showing smaller and less frequent branches resulting in fewer and smaller knots Check

36. Varietal Branch Diameter (Future Knots) is Small & Stable 1 Very Small 2 Small 3 Small to Avg. 4 Average 5 Avg. to Large 6 Large 7 Very Large 75% score 3 or better

37. Log Quality: Pulpwood vs SawTimber 7-56 CellFor CF Q3802

38. Crown Characteristics Can Be Selected

39. Loq Quality Sampling for Wood Density Analysis

40. Log Quality: Densitometry of Varietals vs Seedlings

41. Growth Rate & Wood Density: Independent Traits with Varietals

43. Operational Survival of Containerized Varietal seedlings VS Bareroot OP seedlings in a droughty year Data from Central Arkansas, 2007

44. Survival of Containerized CellFor Variety compared to Bareroot OP seedlings on the same site. North Louisiana 2009

45. Operational Survival of Containerized Varietal seedlings VS Bareroot CMP seedlings in a droughty year Data from the Florida Panhandle, 2011

46. Operational Survival of Containerized Varietal Seedlings VS Bareroot OP and CMP seedlings Data from Central South Carolina, 2011

50. Operational Performance Plots of CellFor Varieties

51. Reduced Risk : 7% Average Increased Survival Average difference 7%; n=66

52. Height Advantage of Varieties Increases Year over Year (15 Tests With Repeated Measures) Average Tree Height (ft) in January 2010 and January 2011 3.5 ft difference 4.1 ft difference

53. Average Height Gain 13% Over Improved Genotypes: (%) over comparison genotypes by variety and test N= 61

54. Georgia

55. Loblolly Pine Variety O3621 vs. OP 7-56 Jeff Davis Co, GA, Operational Planting, Age 6 Data

56. CellFor Varietal Stand vs OP Family Age 6: GA CellFor 7-56

57. CF O3621 vs. OP 7-56 , Tree Volume Age 6 Jeff Davis Co, GA 17%

58. CF L3514, O3621 vs. OP 7-56 Check Tree Volume of STP Trees Only, Age 6 Jeff Davis Co, GA 61% 63%

59. CF O3621 vs. OP 7-56 Tree Volume of STP Trees Only Age 6 Jeff Davis Co, GA 54%

60. CF O3621 vs. Adjacent OP 7-56 Survival, STP and Stem Defects, Age 6 Jeff Davis Co, GA

61. CellFor Varietals: High SawTimber Potential Q3802 OP Family Crop Tree

62. Spatial Distribution of Stem Defects in O3621 and Adjacent OP 7-56 Plot Jeff Davis Co, GA, Age 6 O3621 OP 7-56

63. Spatial Distribution of Stem Defects in OP 7-56 Plots Jeff Davis Co, GA, Age 6 Plot 1 Plot 2

64. O3621 and Adjacent OP 7-56 Plot Before and After Hypothetical Thinning Thinning OP 7-56 plot: all non-STP trees resulting in 314 TPA Thinning O3621 plot: all non-STP and the smallest trees resulting in 314 TPA O3621 OP 7-56 O3621 OP 7-56 Vol/tree ft3 = 5.91 5.05 Gain in Vol/tree = +17% O3621 OP 7-56 Vol/tree ft3 = 6.59 5.04 Gain in Vol/tree = +31% O3621 OP 7-56

65. Louisiana

66. April 29, 2011 Loblolly Pine Variety CF Q3802 vs. OP Check Columbia Land and Timber, Merryville, Beauregard Parish, LA, Operational Planting

67. 37% CF Q3802 vs. OP 2 nd Gen Check, Height Age 4 Columbia Land and Timber, Beauregard Parish, LA

68. 151% CF Q3802 vs. OP 2 nd Gen Check, Tree Volume Age 4 Columbia Land and Timber, Beauregard Parish, LA

69. 230% CF Q3802 vs. OP 2 nd Gen Check, Volume per Acre Age 4 Columbia Land and Timber, Beauregard Parish, LA

70. R.O. Martin CF O3621 Age 5, Provencal, LA

71. Height (ft) Age 5 + 31% (4.9 ft)

72. Volume (ft 3 /tree) Age 5 + 113%

73. DBH Class Distribution per Acre Age 5 O3621_Prov. 1st Gen OP TPA = 445 421 HT = 20.8 15.9 DBH = 3.4 2.7 STP = 96% 88% Gain in Vol/tree = +113% Gain in Vol/acre = +125%

74. Outstanding Growth: CF O3621 Age 6 R.O. Martin

75. April 29, 2011 Loblolly Pine Variety CF Q3802 vs. OP Check Columbia Land and Timber, Merryville, Beauregard Parish, LA, Operational Planting

76. 37% CF Q3802 vs. OP 2 nd Gen Check, Height Age 4 Columbia Land and Timber, Beauregard Parish, LA

77. 151% CF Q3802 vs. OP 2 nd Gen Check, Tree Volume Age 4 Columbia Land and Timber, Beauregard Parish, LA

78. March 25, 2011 Loblolly Pine Variety CF Q3802 vs. 2 nd Gen Family Deltic Timber, Union Pa, LA, Operational Planting, Age 6

79. CellFor Q3802: Age 6, Deltic Timber

80. +6.6 ft +4.9 ft 25% CF Q3802 vs. 2 nd Gen OP, Height at Age 5 and 6 Deltic Timber, Junction City, Union Pa, LA

81. +2.0 ft 3 +1.5 ft 3 38% CF Q3802 vs. 2 nd Gen OP , Volume at Age 5 and 6 Deltic Timber, Junction City, Union Pa, LA

82. CF Q3802 vs. 2 nd Gen OP Survival, STP and Stem Defects Deltic Timber, Junction City, Union Pa, LA, Age 6

83. Arkansas

84. Variety CF Q3802 vs. 2 nd Gen Family Molpus Operational Planting, El Dorado, Union Co, AR, Age 6 Data

85. Molpus, Union County AR: Age 6 Q3802 2 nd Gen Family

86. +1.8 ft +1.7 ft 27% Height Gain: CF Q3802 vs. 2 nd Gen Family Molpus, El Dorado, Union Co, AR

87. +0.8 ft 3 +0.4 ft 3 68% Volume Gain: CF Q3802 vs. 2 nd Gen Family Molpus, El Dorado, Union Co, AR

88. Survival, STP and Stem Defects CF Q3802 vs. 2 nd Gen Family Molpus, El Dorado, Union Co, AR, Age 6

90. Varietals vs 2 nd Gen Benefits Financial Criteria Varietal Seedlings 2 nd Gen Seedlings Net Benefits BLV $1,696/ac $935/ac + $761/ac NPV $1,225/ac $676/ac + $549/ac IRR CellFor Seedling 13.0% 0.0% + 13.0% Revenue @ Rotation $6,299/ac $3,783/ac + $2,516/ac

91. Varietals vs CMP Benefits Financial Criteria Varietal Seedlings CMP Seedlings Net Benefits BLV $1,696/ac $1,078/ac + $618/ac NPV $1,225/ac $779/ac + $446/ac IRR CellFor Seedling 16.8% 0.0% + 16.8% Revenue @ Rotation $6,299/ac $4,474/ac + $1,825/ac

92. Value of Varietal Traits 57% Value Accretion

93. Marginal Return on CellFor Investment

94. Timber & Housing Market Pricing: Are we there yet?

95. Varietal Seedlings and Stumpage Price Regime: LCP, 484/434TPA, SI 60, One Thinning, 40% Volume Gain, Seedling Prices at $0.05 and $0.40

98. Planning is Critical

100. Varietal Silvicultural System: Higher Value for Equivalent Cost

102. Age 14 UGA PMRC Volume Increases Slow Down After 400tpa Pienaar, L. V., B. D. Shiver and W. M. Harrison. 1997. Growth potential of loblolly pine plantations in the Georgia Piedmont: A spacing study example. PMRC Technical Report 1997-1. 15pp.