Growig and processing Bamboo for Commercial benefit

1. Bam d’Afrique and NewCo BioCarbon
Investor Presentation
2014

2. Project - Newcastle
Total Investment - $502,083,310 in three phases over three years
Year 1, Phase 1
 Bamboo Plantation + equipment $ 8,938,427
 Transport vehicles $ 562,857
 Development fee $ 48,490,706
Subtotal Phase 1 $ 57,991,989
Year 1, Phase 2
 Initial carbonising plant (20 ton/h) & steam turbine $ 7,500,000
 Design of the Biomass-to-Liquid (BTL) refinery
Subtotal Phases 1 & 2 $ 65,491,989
Year 2 & 3, Phase 3
 2nd year: Infrastructure BTL and final carbonising plant $ 225,000,000
 3rd year: Finalise construction of all plants $ 211,591,320
Subtotal Phase 3 $
436,591,320
Offset value from 750,000 tons of Met Coke = $259 395 000 over 20
years

3. Background to Bamboo
 Over 13 years of research and development
 Raw material to be grown in Swaziland & South Africa
– Favourable Land Agreements
– High demand for bamboo by many industries
– Carbon Credits for Bamboo plantations
– Offset credits for Power, BamCoke and fuel
 Current South Africa
– Bamboo embryo genesis labs and nurseries

4. Investor Criteria: Core
NewCo Farming in Swaziland:
•Produce bamboo for BioCarbon, BTL & electricity
•4,000 hectare farm & Bamboo Nursery
•Average plantation cost: $1,927 /hectare
•Average income per hectare from year 4 to 10: $5,980
•IRR: 62%+ from Farming Operations
•NPV: $ 107,986,477 @ a 12% cost of Capital.

5. Development Steps
Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth
Nursery 1 2 3 4 5 6 7 8 9 10 11 12
Order Plants
TC delivery @ 50,000 every 2 weeks from
Plant deleveries to Farm from other source
Order Farming equipment delivery
Farming
Finilse agreements + Land Survies
Order fertilise & Delivery
Fencing Land Prep

6. Operational Steps
Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth
Farming year 1 13 14 15 16 17 18 19 20 21 22 23 24
Pitting and Planting
Watering for six mooths after rains if rainfall <600 mm
Weeding till two weeks after rains
Watering after planting
Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth
Farming year 2 25 26 27 28 29 30 31 32 33 34 35 36
Shoot Harvest
Weeding till two weeks after rains
Slashing
Farming year 3 37 38 39 40 41 42 43 44 45 46 48 49
Shoot Harvest
Slashing
Farming year 4
Shoot Harvest
Culm Harvest

7. Operational Steps
Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth
Bio Carbon Plant 1 2 3 4 5 6 7 8 9 10 11 12
Order Carboniser Delivery & Tes ting
Order BTL (Des ign and engineering)
Carbonis ing
BTL Construction 13 14 15 16 17 18 19 20 21 22 23 24
Des ign and engineering then Cons truction
Carbonis ing + Power generation
25 26 27 28 29 31 33 35 37 39 41 43
Cons trcution and tes ting - Handover
Carbonis ing + Power generation
44 45 46 48 49 50 51 52 53 54 55 56
Supply BioCoke, Fuel & Power

8. Investor Criteria: Non-core
 Transportation
 Bamboo Splitting then Chipping
 Community Based Industries
– Food security
– Making of Flooring etc.
– Low Cost Housing

9. Current Status
 Lab and Nursery: Facilities ready to start production
 Carbonising: Feasibility completed on 500 tons of
carbonized bamboo and 500 tons of black wattle
 Market : Agreements from Smelters to purchase
BamCoke
 Farms: Initial Agreements with land owners being
finalized

10. Profit and Loss
Production Statistics Yr-1 Yr-2 Yr-3 Yr-4 Yr-5 Yr-6 Yr-7 Yr-8 Yr-9 Yr-10
Diesel Sold (litres) - - - 356 792 666 468 604 354 469 376 099 476 391 092 472 244 539 470 803 012 474 462 465
BamChar/ Sold (t) - 98 112 98 112 571 252 750 271 751 507 762 738 756 099 753 791 759 650
Power Generated (kWh) - 87 600 000 87 600 000 1 896 093 120 2 215 769 909 2 217 976 376 2 238 032 692 2 226 177 431 2 222 056 014 2 232 518 624
Quantity of shoots & Leaf sold (t) - - 14 240 16 040 25 480 32 040 34 480 38 400 43 200 47 600
Quantity of bamboo culms sold (t) - - - 1 020 093 1 339 770 1 341 976 1 362 033 1 350 177 1 346 056 1 356 519
CO2 Sequestered (MT) - - - 0 0 0 0 0 0 0
mega watts per hour 10 10 216 253 253 255 254 254 255
Net Sales - 35 390 400 38 102 781 784 548 343 981 823 631 984 548 055 997 306 303 990 870 114 989 326 316 993 007 281
Cost of Goods Sold
Purchased Biomass - 2 502 857 2 502 857 14 572 759 19 139 570 19 171 091 19 457 610 19 288 249 19 229 372 19 378 837
BTL Operating Costs - - - 127 215 198 130 795 634 134 022 264 137 353 799 140 724 472 144 190 350 147 762 880
BamChar Production Costs - 637 085 651 722 2 205 467 9 721 167 10 095 160 10 517 654 10 905 978 11 327 706 11 795 367
Plantation Costs - - 369 945 380 832 399 874 411 877 432 471 454 094 476 799 500 639
Harvesting Costs - - 102 043 723 682 982 095 1 030 421 1 059 874 1 080 890 1 134 934 1 191 681
Logistics - - 14 240 1 567 402 1 898 283 1 907 721 1 930 482 1 922 831 1 923 812 1 920 070
Total Cost of Goods Sold - 3 139 942 3 640 807 146 665 339 162 936 623 166 638 534 170 751 891 174 376 513 178 282 973 182 549 474
Gross Profit - 32 250 458 34 461 974 637 883 003 818 887 008 817 909 521 826 554 412 816 493 601 811 043 343 810 457 806
Gross margin (%) 0% 91% 90% 81% 83% 83% 83% 82% 82% 82%
Admin/Overhead - - 837 866 837 866 837 866 837 866 837 866 837 866 837 866 837 866
Amortization expense 25 572 880 25 572 880 26 050 359 26 050 359 26 050 359 25 895 595 25 895 595 25 895 595 25 895 595 25 895 597
Operating Profit/(Loss) -25 572 880 6 677 578 7 573 748 610 994 778 791 998 783 791 176 059 799 820 951 789 760 139 784 309 881 783 724 343
Operating Margin (%) 78% 81% 80% 80% 80% 79% 79%
Financial Expense
Financial Expense 0 35 250 609 26 408 259 16 653 034 6 088 131 22 869 -
Total Financial Expenses 0 35 250 609 26 408 259 16 653 034 6 088 131 22 869 - - - -
Profit before Tax -25 572 880 -28 573 031 -18 834 511 594 341 743 785 910 652 791 153 190 799 820 951 789 760 139 784 309 881 783 724 343
Profit before Tax margin 0% -81% -49% 76% 80% 80% 80% 80% 79% 79%
Net Profit/(Loss) -25 572 880 -28 573 031 -18 834 511 594 341 743 785 910 652 791 153 190 799 820 951 789 760 139 784 309 881 783 724 343
Net margin 76% 80% 80% 80% 80% 79% 79%
EBITDA 0 32 250 458 33 624 107 637 045 137 818 049 141 817 071 654 825 716 546 815 655 735 810 205 477 809 619 940

11. Use of Funds
Investment Cost Schedule (US$) % of total Total ($USD)
Investments
Plantation and Farm Infrastructure 1,80% 8 166 667
Equipment and Machinery 0,17% 771 761
Vehicles/Transport 0,12% 562 857
Bam Char BamCoke 13,79% 62 548 786
BTL Plant & Equipment 84% 381 013 333
Office Equipment 0,01% 29 201
Working Capital 0,11% 500 000
Total 100% 453 592 604
Development Cost 48 490 705
Total Investments $ 502 083 310

12. Profit Center Returns:
Farming
(10 years)
 Gross Profit Margin
• >250%
 NPV $ 78,943,302
 12% Cost of Capital
 IRR 86 %
 Capital Investment Required - $9,501,284

13. Profit Center Returns: BamCoke &
Power
 First Profits by year 2
 10 year NPV $627,074,620
• 12% Cost of Capital
 IRR – 77%
 Capital Investment - $78,712,354

14. Profit Center Returns: BTL &
Power
 First Profits:
• 4 years from start of project, i.e. when
smelters start to be built
 10 year NPV $2,837,752,250
• 12% Cost of Capital
 IRR – 77%
 Capital Investment - $397,176,902
 Development - $16,692,769

15. Offsets
 Offset value from 750,000 tons of Met Coke could be as high as
$787,398,857 (over 20 years)
 If you use BamCoal in the power station instead of Thermal Coal an
extended project would be able to offset 3,000,000 tons of coal over 10
years to the value of $1,567,606,857
 Total investment in project excluding BamCoal over three years
is $502,083,310.
 Exclusive of a further 10,000 hectares, to mitigate the coal used
in the power stations.
 10,000 hectares farming - $21 789 235
 BamCoal Production + Power - $155 621 423

16. Summary
Investor Returns:
IRR 62%
NPV $2 087 905 347
12% Cost of Capital
Job Creation
Major New Industry for Swaziland
Expansion into Africa
Massive potential for carbon offsets from
innovative planning & thinking.

17. Thank You