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ASIA FORESTRY MANAGEMENTInvesting In Agarwood!

TREEDOM Group of Companies

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Founded in 2006 Formed for the purpose of investing in and implementing environmentally sound forestry development projects sustaining and strengthening an ecological balance within its operational areas. Our vision is to reduce the pressure on the world's natural forests enabling investments into forestry that will create sustainable plantations over the long term Aim was to be a forestry management company allows the general public to diversify their portfolio and invest in:ThemselvesThe communityThe environment

Asia Forestry Management

The Asia Forestry Group is engaged in forestry management in Thailand. The group is focusing on Aquilaria plantations and distillation divided into 2 key business units, Asia Forestry Management Co., Ltd. and Asia Forestry Distillery Co., Ltd.

Business OverviewCompany NameOperationRegistered Year1.Asia Forestry Management Co., Ltd. (AFM)Investing in Aquilaria trees plantations (Agarwood trees) Offering investment units in Agarwood trees to investorsSeptember 2006 2. Asia Forestry Distillery Co., Ltd. (AFD)Producing and selling premium grade oud oilOctober 2008

Group OperationPlanting/Buying InoculationSend to AFDResin Development

Plantation Process

AFMPlantation: AFMInitial plantation: AFM invests in both corporate owned plantations and farmer contracts. Inoculation: the trees will be inoculated with a particular technique.Resin development: After 1-2 years of the inoculation process, the dark resin is developed.

Group Operation10-Sep-12Harvest & CuttingDistillation

Distillation Process

AFDStocking

Distillation: AFD Harvesting: the wood is cut and transported to the factory.Wood chip preparation: the log is chopped and grinded, then fermentedDistillation: distill the prepared mix raw material for 10 days to extract Oudh oil.Oil grading & Stocking: After Inspection oil is classified into quality grades, the bottled oil is stored in secured rooms in safe due to its high value.

Aquilaria

Agarwood is a precious resinous wood forming in Aquilaria trees, native to the Southeast Asia region. The dark resin is formed as an antibody for healing after injury or fungus infection. The agarwood is widely used in perfume and cosmetic industry, and religious activities.

Agarwood trees are registered as an endangered species by CITES due to its precious value, causing illegal wood smuggling.

Thailand has been recognized worldwide as a source of premium quality agarwood; however, most of agarwood supply is derived from wild cutting or illegal logging. In respect of tree conservation, the concept of Aquilaria plantations was initially developed in Thailand, with inoculation techniques, capable to provide premium quality agarwood comparable to the wild source.

Our PlantationsAll AFM plantations are located in Trat province, next to the Cambodian border providing perfect growing conditions of agarwood inoculation.60 plantations currently able to supply more than 60,000 trees and the inoculated trees account for 40% of total trees. Trat is also known as the Fruit capital of the world. The 380 kilometer stretched forest grounds, the very fertile soil and the rainy climate make Trat the most perfect place for our plantations. The best Agar oil from Thailand comes from this region. Trat is situated near the Cambodian border.

Our PlantationsAsia Forestry Plantations

Thepnimit Plantation 99 rai

Nongsri Plantation 105 rai

Asia Forestry Distillery

Plantation Process

Nursery StageSite Preparation2 years old6 years oldIndividual IDInfected Wood

Innoculation

Nursery

Infected Tree

Distillation ProcessAFD201220132014No. of Distillation Stills220320400Avg. Distillation Capacity (Kgs./month)38-6056-8080-102

AFD Factory is located close to the raw material supply via AFM plantations, to minimize logistic cost.AFD currently operates 59 stills which is capable to produce Oudh oil of approximately 4,500 - 5,000 tolas/year or 54 -60 kgs./year. Asia Forestry is currently in an expansion phase and will in 2012 have the largest Oud Oil manufacturing facility in Thailand with plans to expand further in 2013 to become S.E. Asias largest producer of Oud Oil.

Our Factory

2012AFD will have the largest Oud Oil manufacturing facility in Thailand.

2013AFD will be expanded further to become S.E. Asias largest producer of Oud Oil.

Production Capacity Expansion

Production Process From the tree to the pot Preparation PHASE I

Production ProcessExtracting the oil from the tree Fermentation Phase IIDistillation Phase IIIQA Phase IVTesting Phase V

Traditional Distilling Process

Modern Distillation

Electrically Heated process Distillation time - 3Days Production 50 Kg per month

Advantages:

Consistency of Quality & Quantity Economies of scale - lower price

High Grade Oud oil Oud al Seyufi Cambodia Oud al Safii Cambodia Oud al Safii Trat Oud Powder Woodchips

Products are CITES certified and a Worldwide Islamic Halal Accreditations

The Middle East market is the main market for Oudh Oil, mainly the Muslim community, as this is the worlds most popular region for using oudh.

The needs of the target group can be divided into different parts:

Religious: The needs of the Muslim community are related to religiousaspects. They highly cherish the oudh and use it for ceremony purposes.

Cultural: oudh oil is often used as special gifts and as a welcomingfragrance in their houses.

Esthetical reasons: Oudh oil is has a very strong and distinct smell and is hardly used anywhere outside the Arabian Peninsula. This distinct smell is adored by both men and women and stands for wealth.

The Middle East market uses Oudh oil for the following end products:PerfumesIncenseMedicines

Middle East Market

Premium Product

Oudh oil can be practically classified into 4 grades, i.e. grade A, B, C and D. The grade-A is currently the main product of AFD which is priced approximately $21,000 to $35,000 per litre The retail price of AAA vintage oud, strictly preserved under perfect conditions, is extremely expensive, over $1000 per tora, or $83,000/Litre.Asia Forestry Group offers high grade agar products - 100% PURE OIL

AFD Oud OilRecommended Retail PriceWholesale PriceGrade AUSD35,000/ LitreUSD16 - 22,000/ Litre

Gold Price

The value of Agar Oil compared with the value of gold:

Todays gold price is US $ 1,350 per ounce. 1 kilogram equal 35.27 ounces. Gold per kilogram US $ 47,600 Grade A Agar Oil (retail) is US $ 80,000+ 1 tola $1000-200084 Tola Per KgThe most expensive essential oil in the world!

CSR Activities

Investment PackageAG2AG3 6 years investment6 years investment with the first return in the 3rd year

Investment Package AG2No. of TreesInvestmentReturnProfitProfit (%)35130,200227,50097,30074.750185,800325,000139,20074.9100365,600650,000284,40077.8200715,3001,300,000584,70081.74001,394,6002,600,0001,205,40086.48002,699,3005,200,0002,500,70092.61,0003,260,7006,500,0003,239,30099.4

UNIT : THB

Investment Package AG3No. of TreesInvestmentReturn in 3rd YearReturn in 6th yearTotal ReturnProfit30131,28051,000156,000207,00075,72060262,368102,000312,000414,000151,632100432,480170,000520,000690,000257,520200852,240340,0001,040,0001,380,000527,7604001,675,680680,0002,080,0002,760,0001,084,3208003,279,4401,360,0004,160,0005,520,0002,240,56010004,008,5601,700,0005,200,0006,900,0002,891,440

UNIT : THB

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