This project of reforestation (hereinafter referred to as “the Project”) involves planting, on a long-term perspective, the Paulownia tree – a fast-growing, sustainable hard-wood species that requires minimal management and little investment, on a designated area of 1,500 hectares, commencing with an initial 400-hectare part as Phase 1. The site is located at Chu Rcam Commune, Krong Pa District, in the east of Gia Lai Province. This is a the very first project of such tremendous magnitude in Vietnam that has been issued the Certificate of Land Use Right. The Project is expected to generate revenues from sales of carbon credits on the international carbon market from the second year of plantation onwards and sales of timber at different points in time thereafter. As soon as the initial 400 hectares proves to be successful, authorities shall assign an additional area of 1,000 hectares and up to 10,000 hectares to the company for expandability.

1. PAULOWNIA & INTERCROPPING PAULOWNIA WITH BANANA Asia Reforestation Group Inc,. REFORESTATION PROJECT www.asiaforests.com

21. Asia Reforestation Group Inc,. www.asiaforest.com Chan Kim Pham – CEO David Nguyen Chief Operating Officer cum Technical Specialist

24. Asia Reforestation Group Inc,. APPENDIX : Cost of investment in 100 Ha P aulownia : Investing in plantation of 108 ,000 Paulownia s , equivalent to 1.080 trees/ha. P aulownia + Banana : Investing in plantation 66 , 0 00 Paulo w nia s intercropped with 150 , 000 banana trees equivalent to 660 Paulownia trees/ha and 1.500 banana trees/ha. Item P aulownia Paulownia + Banana Seed 3 00 ,000 400 ,000 Fertilizer & Pesticide 1, 100 ,000 1,4 0 0,000 Planting & care 70 0,000 9 20 ,000 Infrastructure cost 4 00 ,000 500 ,000 Administration cost 200,000 180,000 Total (USD) 2,7 00 ,000 3, 400 ,000

25. Asia Reforestation Group Inc,. APPENDIX :Pro-forma Profit and Loss (100 ha of Paulownia) Unit USD 1 , 000 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 INVESTMENT CAPITAL (2, 700 ) B. REVENUES 1 Carbon trading Carbon credit 31 31 31 31 31 31 31 Unit price (USD) 22 25 27 30 32 33 35 Total 679 771 833 926 987 1,018 1,080 2 4-year old timber - - - 1,182 - - - 1,182 3 8-year old timber - - - - - - - 11,550 C. GROSS PROFIT (2, 700 ) 679 771 833 2,108 987 1,018 1,080 12,732 D. PLANT CARE COST - (221) (225) (229) (252) (240) (245) (181) - - - - - - - - - - E. NET PROFIT (2, 700 ) 458 546 604 1,855 748 773 899 12,732 F. PROFIT DISTRIBUTION 1 ARG (20%) - 92 109 121 371 150 155 180 2,546 2 Success fee for ARG 992 2 INVESTOR (2, 700 ) 366 437 483 1,484 598 618 719 9,194 IRR 3 1 % 5 15 % ROI

26. Asia Reforestation Group Inc,. APPENDIX: Pro-forma Profit and Loss (100 ha of Paulownia intercropped with Banana) Unit USD 1 , 000 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 A. INVESTMENT (3, 400 ) B. REVENUES 1. Carbon trading Carbon credit - 19 19 19 19 19 19 19 Unit price (USD) - 22 25 27 30 32 33 35 Total - 415 471 509 566 603 622 660 2. 8-year old timber - - - - - - - - 14,117 3. Banana - 1,587 1,587 1,587 1,587 - - - - C. GROSS PROFIT (3, 400 ) 2,002 2,058 2,096 2,153 603 622 660 14,117 D. PLANT CARE COST - (371) (378) (386) (250) (244) (255) (139) - E. NET PROFIT (3, 400 ) 1,631 1,680 1,710 1,903 359 367 521 14,117 D. PROFIT SHARING 1. ARG (20%) 0% 400 412 419 431 121 124 132 2,823 2. Success fee for ARG 1,111 3. INVESTOR (3, 400 ) 1,305 1,344 1,368 1,522 287 294 417 10,183 IRR 3 9 % ROI 4 92 %