SA Paulownia Investment Co. (Pty) Ltd

P O Box 586 Gallo Manor, 2052

Tel : (011) 802-1167

Fax : (011) 802-7060

Fax to email: 0866 724 456 (confidential)

FRACTIONAL FORESTRY INVESTMENT

FACT SHEET

Honeylane Trading (Pty) Ltd

2006/036026/07

 

Fractional Investment Block 1: Participants and Structure

Structure:          1. South African Holding Company (Honeylane Trading (Pty) Ltd– 2006/03026/07)

                        2. Regionally Based Forestry Investment Project

-          Fractional Investment Participants – 60% ownership

-          Regional SA Paulownia Investment Company (Pty) Ltd Company – 20%

-          Local Community/Investors – 20%

 

Forestry Investment Project: Investment Block

-          Number of Hectares – 100

-          Approximate Number of Trees Planted per hectare – 2,500

-          Approximate Total number of trees to be planted – 250,000

 

Investment Details:

-          Total Amount to be raised – R 10,000,000.00

-          Total Number of Shares – 10,000 @ R 1000.00 each

-          Minimum Investment – R 200,000.00

-          Minimum Number of Shares per Investor = 200

-          Cost per Tree (over first harvest cycle) – R 40.00

-          Raising Requirement:

-          Prior to Start of Project:

o        5,500 shares = R 5,500,000.00

-          Within first 12 months

o        2,500 shares = R 2,500,000.00

-          Within 24 months

o        2,000 shares = R 2,000,000.00

Flow of Funds

-          Initially into S A Paulownia Trust Account and released into project based on milestone deliverables.

-          Administration Fees and Commissions released on confirmation of deposits and documentation

Documentation:

-          Forestry Fractional Investment Opportunity: Investor Pack

-          Application Documentation

-          Application Form

-          Summary of Investment

-          Application Payment Agreement

-          FICA Documentation

 

Return Projections:

Assumed Yield per Tree (m3)      - R 1,500.00 (conservative @ US$ 200.00)

                                                - R 3,750.00 (current price of US$ 500.00)

Assumed Tree Harvest                - 25%

                                                - 625 trees per hectare

Projected Returns:

(Based on conservative yield per tree & 25% final harvest):

-          Total Return – R 90,000,000 to R 120,000,000

-          Fractional Ownership Participants - R 54,000,000 to R 72,000,000 (60%)