The document summarizes information about developing land for agriculture in Magude, Mozambique. It discusses: 1) Two proposed locations for pump houses - one on a lake tributary bordering 400 hectares of land, and one on a river 4-5km away. 2) The community's demands that the 400 hectares outlined in a map be developed first before they grant ownership of 1000 hectares with rights to explore additional land. 3) Infrastructure issues like the 5km distance to electricity, and whether to pump water from the river or lake tributary.

1. 9/9/11 - EAVL – Alex spencer Magude Property Information

2. Please notice the 2 proposed pump house points, #1 is located on a tributary of the lake, and #2 is located on the river,

3. Community’s needs The community has asked rather rigidly for us to develop first the 400 hectares outlined in the map above, However, they will grant us the ownership of 1000 hectares, with exploration rights to much more land (possibly 5000ha) if we develop first this piece. It appears that our budget of $20,000 - $40,000 USD will be enough to get fulfill the communities needs (1-2 wells, etc.) before the Memorandum of Understanding is signed. The community has promised us ownership of 1000 hectares of land, but demands that we start to develop the 400 hectares above the lake tributary first.

4. 3 issues – Infrastructre Costs Electricity is 5 Km away Where to pump the water from? Possibly the river which would be 4-5km or the lake tributary which borders the “core” 400 hectares About 2 km of roads to maintain (I don’t think this will be a big issue)

5. Water If we pump water from the lake tributary it borders the land, however there are questions as to if the supply will be sufficient If we pump water from the river (4-5ks) we will have a sufficient supply, however costs will be higher The Land is very flat, so that will facilitate things A Portuguese farmer pumped water from “proposed pump house point #2” to a farm north of ours, about 10km away, therefore the local community does not understand why we can’t do half that distance for our project Pumping from the river will increase Electricity costs as the power line is further from the river than the lake

6. Water

9. Electricity The closest non-domestic electric line is about 5km away

12. Virgin bush clearing The bush clearing appears to be quite extensive in most areas

15. Costs The initial price that we have been quoted at is R95,000 per hectare, which is $13,571 per hectare for irrigation system, pump house, bush clearing, etc. I think it s possible to negotiate this price to be about R60,000 per hectare, which is $8,500 USD per hectare.

16. Technical Analyses We have done 2 studys with a team of 4 south African engineers and agronomists I took soil samples, 1-15 cm and 15-30 cm , and each respective sample will be analyzed in South Africa and we should have results back in 2 weeks Water samples too should be back in 2 weeks time We will need to hire a team of experts to help us design what crop to implement, where and how before we start paying for infrastructure cots. I believe that we need further technical analysis before implementation, however, I think it would be best to make a decision if we go forward or not with the acquisition of the land based on the data we now have

17. My suggestion If the decision is to go forward, we get our foot in the door and develop 100-400 hectares pulling from the lake, then we think big. Maybe we could possibly do cattle on the 200-600 ha bush we don’t develop?