This document describes an investment opportunity through Environmental Partners International to fund forest protection projects that earn carbon credits. The projects would help mitigate deforestation and its impacts on climate change and biodiversity loss. Investors would receive returns from the sale of carbon credits generated by the forest protection. A $20 million fund is proposed to protect 100 million hectares of forest across multiple projects over 5 years. Risks are mitigated through a rigorous project selection process and diversifying across many projects. Investors could expect annual returns of 45-108% depending on the price of carbon credits.

1. Environmental Partners International
Presents:
An investment opportunity to save the world’s
forests

2. The world around us
is changing at theis changing at the
staggering pace

3. Continued deforestation will result in the
li i ti f th d f l t’elimination of thousands of our planet’s
habitants; unique animals, plants and
speciesspecies.

4. Our planet’s future is a serious problem,Our planet s future is a serious problem,
…That is also a potentially lucrative
opportunity for all concerned investorsopportunity for all concerned investors.

5. Deforestation
• Forests are one of the most potent ecosystem regulatorsForests are one of the most potent ecosystem regulators.
• Forests are critical in sustain humanity by regulating
atmospheric carbon.
• Earth deforestation accounts for almost fifth of the world’s
human induced carbon emissions, exceeding all global
pollutants combined.
• Forest destruction is crucial to Earth’s ability to regulate itself.
• Deforestation makes the environment potentially• Deforestation makes the environment potentially
unsustainable for human life.
• The forest users and owners are often marginalized
indigenous communities that are forced to cut down the
forests to provide themselves with a one-off income stream
through timber sales.
• The cleared lands are often used for grazing and farming,
which further contribute massive volumes of carbon emissionwhich further contribute massive volumes of carbon emission
into the atmosphere.
• Developments in international policies regarding climate
h id h t thi ld blchange provide a new approach to this old problem.

6. Investment Opportunity
• • The investment opportunity is based on a fund that
provides the capital for the initial funds required to develop
rainforest protection projects that earn carbon credits.
• • It is essentially a startup capital for the forest
preservation programs that has the potential to be returnedp p g p
many times over to the investor.
• • Under international climate change protocols, tropical
rainforest landowners can earn carbon credits by protectingrainforest landowners can earn carbon credits by protecting
their forests from logging.
• • Designed as an incentive for the landowners and
project development firms the program delivers greater profitproject development firms the program delivers greater profit
returns from the carbon credits than the money to be
received from logging.

7. Summary
• • Each fund protects a portfolio of forest areas that
produce a specified amount of carbon credits.
Th f d t t $10 $20 ti t i• • The fund operates at a $10m or $20m tier, returning
50m or 100m carbon credits respectively.
• • At the end of the period, there are usually carbon
credits in excess of the specified amount.
• • The carbon credits, and commensurate returns, are
divided between the landowners, the project developmentdivided between the landowners, the project development
firm and its in-country partners, the investors, and the fund
manager.
• • The returns to the investors are based on 10% of• • The returns to the investors are based on 10% of
the total sales of the carbon credits.

8. Project Developers
• • Environmental Partners International is the Project
Developer working with in-country partners in any given
state’s designated forest territories.state s designated forest territories.
• • EPI is one of the early participants in the climate
change industry and carbon economy.
• • EPI has been in the forefronts of the global forestEPI has been in the forefronts of the global forest
protection project development, known as REDD (Reduced
Emissions from Deforestation and Degradation).
• • EPI has developed world-leading and innovative
intellectual property for the forest protection market.
• • The company has been developing various projects
since 2010 and has projects under development and
re ie in ario s parts of the globereview in various parts of the globe.

9. Landowner Returns
• Each of the landowner groups receives 60% of the
returns on an average project. This practically, provides
incentive to the landowners to prevent deforestation.
• The returns are annual revenue streams. Each project
can run for a minimum of 20 years and a maximum of
30 years.
Th f d id th t t it l t d l th• The fund provides the startup capital to develop the
first 5 years of the projects.

10. Example Project - Senegal
S l h th 11 illi h t (1 h t i b tSenegal has more than 11 million hectares (1 hectare is about
2.5 acres) of tropical forest forming the habitat for 188 known
mammal species 330 species of birds and 20 amphibians.
Senegal’s has 0.48% rate of deforestation, losing an average of
45,000 hectares per year.
The Senegal Project is 400,000 hectares of tropical forest in
Matam and Tambacounda Districts of East Senegal. Four suchg
projects for the first fund comprise an area about the size of the
state of Rhode Island, the sum of 5 million is required as initial
investment.

11. Risk Mitigation – Project Level
EPI follows a risk-mitigated process at the project
development level:
Phase 1 — Source and Secure Projectsj
EPI sources and secures projects with its credentialed in-
country partners.
EPI may secure as many projects as the funds will allowEPI may secure as many projects as the funds will allow.
Phase 2 — Determine the Eligibility and Feasibility of the
Projects
EPI has developed an Eligibility and Feasibility Methodology
to determine:
• First whether a potential project is eligible under
i t ti l t d d dinternational standards, and
• Second whether a project is economically feasible.
Unless a project passes the EPI’s Eligibility and Feasibility
criteria, it will not be developed.

12. Risk Mitigation – Project Level
Phase 3 — Develop the Project to Certification
EPI pioneered the development of large-scale projects
and created one of the first methodologies for the
i f l d f t t t t d f tconversion of logged forests to protected forests.
This methodology is a cornerstone of EPI’s project
development work, and reduces the cost and risk of
development of projects significantly.
Phase 4 — Market and Trade the Carbon Credits
EPI has a mature marketing and trading operation forg g p
selling carbon credits to banks, trading firms, and energy
companies. This marketing capability permits EPI to
presale carbon credits, leveraging risk factor by allowing
a potentially earlier exit from the funda potentially earlier exit from the fund.
EPI undertakes other risk analysis and economic
feasibility studies to maximize potential success and
minimize risk for each project.

13. Risk Mitigation – Project Level
Project Element Risk Factor (s) Risk Mitigation
Source and Secure
Projects
Ensuring that projects being
sourced are with reputable
partners and not “carbon
cowboys” exploiting short-
EPI projects are only co-
developed with established
organizations with specific
in-country expertise andcowboys exploiting short
term opportunities.
in country expertise and
credentials.
The Projects will succeed
to the point of
certification
There are numerous
elements that can prevent a
project from completing,
including the legitimacy of
th th t th l d t
The EPI Eligibility and
Feasibility Methodology
(ƒPASS) will determine the
eligibility, feasibility and
ti t d i ld f ththe threat, the land tenure,
the sovereign risk of
government support, and
more.
estimated yield of the
project.
The ƒPASS process is
likely to utilise less than
20% of the investment
funding.
The project is
economically viable
Projects may be eligible but
what if the economics of the
project development don’t
make sense?
As above, the EPI Eligibility
and Feasibility Methodology
(ƒPASS) has determined
the eligibility, feasibility and
estimated yield of the
project.j
The certification process
is achievable and cost-
effective
The project development
process is expensive,
especially if a Methodology
has to be developed from
scratch.
EPI has already developed
an and implemented
Methodology appropriate to
many of the world’s forests.

14. Risk Mitigation – Fund Level
Fund Element Risk Factor (s) Risk Mitigation
Number of credits to
be generated
Certain projects do not
generate an infinite
number of credits.
The funds will
specifically develop
50m or 100m credits
respectivelyrespectively,
guaranteed to be
delivered from the
projects.
Timeframe for The timeframe for The fund spans 5Timeframe for
development
The timeframe for
REDD project
development is
typically 2-3 years.
The fund spans 5
years, giving sufficient
time for completion.
Price of the credits The price of REDD has
been variable.
The price for REDD is
stabilizing and the fund
makes substantial
returns if the wholesale
price of REDD is $3.00
or higher.
Funds Management The fund could be
compromised by a
conflict of interest with
The fund is
independently
managed from the
the Project Developer. Project Developer.

15. Fund Returns
$20M Fund Return Analysis: 5 years 100M Credits$20M Fund Return Analysis: 5 years, 100M Credits
Returns Credits Example Price Total Proceeds
100% 100,000,000 $5.00 $ 500,000,000
Distribution
60% To Forest Owners 60,000,000 $5.00 $ 300,000,000
30% To Project 30 000 000 $5 00 $ 150 000 00030% To Project
Developers
30,000,000 $5.00 $ 150,000,000
10% To the fund 10,000,000 $5.00 $ 50,000,000
Price of Credits Net Fund Proceeds
Net Fund Return less
Management Fees –
Fund Return% per
/5
g
10%
annum/5 yr
$3.00 $ 56,000,000 $ 5,600,000 44.8%
$4.00 $ 76,000,000 $ 7,600,000 60.8%
$5.00 $ 96,000,000 $ 9,600,000 76.8%
$6 00 $ 116 000 000 $ 11 600 000 92 8%$6.00 $ 116,000,000 $ 11,600,000 92.8%
$7.00 $ 136,000,000 $ 13,600,000 108.8%
Thinking another way, the $20M investment generates 20M credits. Credit ownership, or break even
l i i t t i 1$ t With VCS/CCBA dit h i t d d t b t 7 11$analysis as an investment, is 1$ per ton. With VCS/CCBA credits having traded at between 7-11$ per
credit in 2010, with market fluctuations taken into account, this is a calculable risk. Note that these
calculations do not take into account the presale of credits to fully return initial capital at approximately
12 to 18 months.