“P&C Maderas Internacionales S.A.”

1. “P&C Maderas Internacionales S.A.” INVESTMENT PROGRAM FORESTRY FARMS

2. Important Considerations • In the last 50 years more than half of the inventory of trees in the world have been cut. • Approximately 10% of the world population or 600 million people earn their existence from forest and the lumber industry. • To replace this loss we have to replant 25 billion trees in the next 10 years just to recover these annual losses. • Hardwood lumber is the only commodity which has never come down in value, so it is simple to see that it is a good business. • Guatemala losses annually between 50,000 to 80,000 Ha. of forest and to stop this deforestation, the country needs 55 to 88 millions trees per year to maintain its forested areas. • It is estimated that the demand for lumber of all types will increase substantially in the next years. It is further estimated that this demand for lumber, especially tropical lumber, will increase in few years up to 50 % annually. Source: FAO

3. Future Demand • The continued demand for lumber and especially tropical lumber will increase the prices continuously. • Historically the price of Teak exported to Indochina between the years 1979 to 1986 increased annually by 17%. • The Association of North American Hardwood Producers, reports that the price of Teak, increased in the years 1988 to 1992 by as much as 625%. • Recent price increases are dramatic in that board foot prices increased from US 3.00 to US 4.50. The last reported increases are even more dramatic because the prices of US 3 to US 4.5 board foot are sold today at US 6.00 to US 10.00 per board foot with the same specifications. • According to “National Geographic”, edition of July 95 there are plantation trees of Teak, which were sold at up to US 20,000 each . • According to international organizations the inflation rate of lumber prices are generally 6% per year and in hardwoods are between 9 % to 13 % per year.

4. Would you like? • To assure yours and your family’s future? • To retire with a considerably bigger fund compared to any other investments at a lower cost? • This is better than any insurance or retirement plan. • With this program, your investment has a very high return.

5. Investment Program • With a relatively low investment you can obtain a mayor benefit which would be considerably better than depositing money into a bank. • Fine lumber has a very substantial financial future and maintains its value better than other investments.

6. FORESTRY FARMSDefinition • Size of property: • 10,000 square meters • 2.471 Acres. • Planted with Super Teak TOL trees from Thailand. • Full owner ship properly registered in the name of the new owner. • Including a Forestry Service Contract for 20 years. • Guaranteed production of 300 cubic meters of trunks.

7. Private Resort • This project will enable the forestry farm owners to enjoy himself at the “P&C” Private Resort, located just beside the Super Teak forest. • The Club will include green areas, parking, a swimming-pool and rooms to host only and exclusively forestry farm owners, family members and friends. • A heliport.

8. Panoramic View of the Private Resort

9. Forestry Farms México

10. Guatemala City Location of Forest Farms Retalhuleu Escuintla Mazatenango Cuyotenango Santa Lucia Cotz. Parcelamiento La Máquina Champerico Forest Farms El Tulate Pto. Quetzal Océano Pacífico

11. Ten minutes from Pacific Ocean Pacific Ocean Forest Farm Sectors Future areas for resort with swimming pull and parking. Bungalows and parking Back Up Farm

12. View to the north Ten minutes from the beach in “El Tulate”

13. El Tulate Beach

14. Farm Layout 1 2 3 4 . . . . . . 35 Back Up Farm 36 . . . 42 Heliport Back Up Farm Private Resort

15. Location of Guatemala and Thailand (same latitude) Guatemala Thailand

16. Why Super Teak T.O.L. ? • Considering its growth rate, precious wood has the highest commercial value in the world. • Fast growth (15 to 20 years). • Uniform yellow-gold color. • Expandable, strong, stable, easy to work, it does not break, it does not crack, resistant to termites, fungus, climate, salt water and has anticorrosive properties. • Better physical-mechanical properties than Ash, Beech, Pine, Honduran Mahogany, Mahogany and other. • High demand at world markets.

17. Super Teak TOL Selection Diagram 1st. Plus tree candidate (1:100) 1st. Plus tree candidate (1:100) (40 x 40 m) (40 x 40 m) 100 trees 1 tree 1 tree 100 trees 2 nd candidat Elite tree (1:500) 2 nd candidat Elite tree (1:500) 100 trees 1 tree 1 tree 100 trees 100 trees 1 tree 1 tree 1 tree 1 tree 100 trees 100 trees 1 tree 1 tree 100 trees Super Teak TOL Mother Tree 1:1000 100 trees 1 tree 1 tree 100 trees

18. Cloning Lab in Thailand

19. Plantations in Thailand

20. Super Teak TOL - 11 years old under ideal conditions

21. Teak Uses

22. Luxury Wood Flooring

23. Luxuries Appearance

24. Fine Yates

25. Production differences between Super Teak Tol and regular Teak Source: Dr. Paiboolia Gavinlertvatana. Thailand. Source: Hans Lamprecht, Silviculture in The Tropics.

26. Future of the Business • Biggest buyers: U.S.A, Europe and Japan. • One of the best aspects of this crop are potential high returns on investment. • The availability of natural growing Teak worldwide is decreasing dramatically. • Actually, India and Thailand became importers instead of producers and exporters. • Exports from countries that harvest Teak from their natural forests is decreasing greatly. • The future of the market is extremely big. It will be easy to sell these products.

27. Future Demand • Burma, which is the current principal producer of old Teak has no policies to reforest with Teak trees. • According to the World Bank Teak will disappear from Burma in a few years.

28. Execution of the Project P&C Maderas Internacionales S.A. with its experience staff of foresters will look after the management of the farms. P&C Maderas Internacionales S.A. retains the right of collecting 10% of the value of lumber whenever the trees is harvested per each Farm if the goal is reached and then only on the amount exceeding the 300 cubic meters guaranteed.

29. Extra bonus • Teak is a specie that regrows after harvest. • The following harvests, up to 5 times, will be more productive because the trees by that time will have substantial root systems allowing more energy and growth patterns. • Production of seeds start 8 to 10 years after planting and could bring sales of up to US 2,000 annually. • Land value in the El Tulate area increased in the last two years by as much as 50 % . • The hardwoods never go down in prices according to National Institute of Forest in Guatemala.

30. Guarantee • P&C Maderas Internacionales S.A. will provide a Back Up plantation of Super Teak TOL. • This Back Up will be used to guarantee a minimum production rate of 300 cubic meter of logs per each farm.

31. The Pricing • Japan: US$ 3,500/Cubic Meter = 424 Board Feet This means US$ 8.00 per board foot • Friendly Forest Products (Wholesale): US$ 3.00 to US$ 7.00 per board foot. • Exotics (Retail): US$ 11.00 to US$ 19.00 per board foot. • Costa Rica Teak Plantations Economics: US$ 2,000 per tree in the year 20. • Hacienda Tenorio (Costa Rica): US$ 1,200 per tree.

32. COMPARATIVE INVESTMENT ANALYSIS PER 300 Cubic meters

33. Progress as of November 04

34. Progress as of June 05

35. Progress as of June 06 Back Up farm

36. Progress as of August 05 (Mr. Peter Cook, President of the company)

37. Progress as of June 06

38. Progress as of October 06

39. El Tulate protected natural reserved area

40. Differences Between Regular Teak and Super Teak TOL • Branching • Auto pruning • Form • Performance • Quality Regular Teak Super Teak TOL

41. Super Value Introduction Price • U.S. $ 40,000.00 per Forest Farm • Cash Price US 35,000.

42. Extra Bonus • The Teak tree will re-grow from its roots ones it is harvested, that means that the second growth rate will be larger because the tree has a much larger root system, so the second harvest will be faster. • P&C Maderas Internacionales S.A. can provide a new contract for the second growth.

43. Export Plans • Objectives of this group would be to: • Harvest, transportation processing and export of lumber products to be a service organization or intermediate for lumber products. • To obtain lumber quantities to get a market impact. • Capitalization would be in form of a corporation with the help of the Forest Farms owners.

44. Who is P&C: • A company founded in year 2,000 by Guatemala and Canadian entrepreneurs. • P&C has the support of K&C Silviculture Farms Ltd. In Oliver British Colombia, Canada. • K&C Silviculture Farms is a reforestation nursery producing 60 millions trees annually . • P&C has the best and must modern seed processing equipment in Central America as well as the must modern seeding processing equipment and protocols of the must up to date and state of the art technology. • P&C is the main provider of forestry seedling in Guatemala and southern México. • www.pcmaderas.net

45. In P&C Maderas Internacionales, the small details make excellence, however, excellence never will be a small detail.Thank You