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The following presentation includes various statistics
  pertaining to inflation, including selling price indices and
current market values. Please be advised that past inflation
     and selling price trends are no guarantee of future
                         performance.
Individuals should consult their own professional advisors to
              determine their financial needs.
   No information provided or opinion expressed in this
presentation constitutes an offer to buy or sell any security.

   Use your mouse to click anywhere to advance to the next
                 discussion point or slide
The following presentation includes various
statistics pertaining to inflation and selling price
indices and current market values. Please be
advised that past inflation and selling price trends
are no guarantee of future performance.
Individuals should consult their own professional
advisors to determine their financial needs.
No information provided or opinion expressed in
this presentation constitutes an offer to buy or sell
any security.

     Use your mouse to click anywhere to advance to
            the next discussion point or slide
What you should know
                                       about Teak…

Teak (also known as Tectona Grandis):
   • Is a deciduous hardwood tree indigenous to the dry and hilly terrains of Indonesia
     and Southeast Asia
   • Remains one of the most valuable of all hardwoods and is known for its
     beauty, strength, durability and weather-resistant qualities
   • Is the leading choice for marine and outdoor furniture applications because the
     extremely dense wood contains natural oils and rubber content, thereby
     possessing the greatest capability of any wood to withstand the effects of the
     harsh outdoor environment
   • Can naturally endure the effects of sun, rain and even snow without
     rotting, warping, cracking, shrinkage or swelling
   • Will naturally age to a beautiful silver-gray hew over the years or with a periodic
     application of natural teak oil will maintain its original color and richness for a
     lifetime.
   • Prices have increased 15% per annum between 2002 and 2007 with prices
     increasing by a staggering 67% in 2007 due to the supply deficit, according to the
     ONF (Central American National Forestry Office)
What is the Project?

A unique initiative designed to:
   • Promote responsible and sustainable reforestation in an genuine effort to preserve
     the threatened tropical rainforest throughout the world, one of Earth’s most
     precious natural habitats
     … While
   • Providing individuals, businesses and institutions the opportunity to fortify their
     financial futures through responsible and sustainable investing

The United Teak Reforestation Project was established in 2008 and is
managed by the United Teak Management Group (UTMG)
   • UTMG is a Panamanian registered privately held corporation founded on strong
     ethical and visionary business principles, primarily focused toward reforestation
     development and management of sustainable teak plantations in the Central
     American country of The Republic of Panama
   • UTMG has full and unencumbered authority to develop, market and manage all
     aspects of the United Teak Reforestation Project including the associated
     assets, employees, equipment, land and trees
Project Overview

Project objectives
   • Reduce deforestation of tropical rainforests by developing Teak tree
     plantations to fulfill growing global market demand for quality Teak wood
   • End destructive environmental impact of historical practices by:
       -   Reducing the need for harsh and destructive stripping of indigenous trees
       -   Establishing sustainable Teak tree plantations on land previously “cut and slashed” for cattle
           grazing to restore and contribute to the lush tropical canopy
       -   Reduce and progressively reverse the environmental impact of the callous destruction of tropical
           rainforests


Project expansion achieved through sale of Teak trees
   • Clients purchase a certified number of quality Teak trees per 1 hectare (2.5
     acre) parcel
   • UTMG prepares the land, plants, maintains and harvests Teak trees on
     behalf of the client
   • Client receives harvest proceeds… Project expansion achieved… All
     stakeholders benefit, including the precious global environment
Project Methodology…
                 Eliminate “Cut and Slash”

United Teak acquires previously “Cut and Slashed” dormant
fields and live-stock grazing land in ecologically sensitive
areas of beautiful Panama
Project Methodology…
                  Preparation and Planting

Following hand clearing and cultivation of the land, high-
quality Teak Seedlings are selected from certified growers
and planted during the optimal rainy season
Project Methodology…
           Protection and Growth Cycle

The skilled forestry team at UTMG ensures complete care
and maintenance of the entire Teak plantation over the
projected Twenty-year growth cycle




                   18 Months                   48 Months
Project Methodology…
                    Plantation Management

UTMG manages all aspects of the Project through final
harvest and ultimate sale of Client timber to selected Teak
distributors, wholesalers and end-users
What You Are Buying?

Trees guaranteed to grow… With complete life cycle management
       • Clients purchase and retain 1 hectare (2.5 acres) segregated “Parcels” of planted
         and fully managed Teak trees with a guaranteed[1] minimum yield / number of trees
         at final harvest
       • Typically, each parcel purchased is planted with approximately 1,100 quality Teak
         seedlings obtained through a recognized local Panamanian grower, although other
         various species of trees can be mutually agreed upon
       • UTMG provides each client with:
              -   Complete land preparation, planting, care and maintenance of Teak trees purchased throughout
                  the entire growth cycle (Twenty-years for new seedlings)
              -   Culling and preparation services (conversion to marketable timber) at final harvest
              -   Sale of marketable timber in the wholesale Teak market on behalf of the client, obtaining fair and
                  available wholesale pricing (or preparation for delivery to the client upon request)
       • The Purchase Price is the only out of pocket cost to the client… A one-time 12%
         fee is deducted from all timber sale proceeds to compensate the
         cutting, management and selling services provided by UTMG during the contract

[1]If for any reason the client’s segregated parcel of planted Teak trees does not produce the contracted yield at final harvest, UTMG will
        provide the difference from a reserve of privately owned Teak trees
Teak Tree Parcel Pricing

       Current cost of one United Teak Reforestation Parcel (1,100 trees at
       planting with a guaranteed minimum yield of 240 Cubic Meters of
       commercial grade wood) is US$41,800
             • Investment discounts shall be provided for each United Teak purchase contract of
               five parcels or greater


US$9,880      Purchase Size    No. of Trees   Purchase Price    Price per Tree   Discount
 Down
                1 Parcel          1,100        US$41,800         US$38.00           -
US$1,680
a year for     5 Parcels          5,500       US$198,550         US$36.10          5%
19 Years
               10 Parcels        11,000       US$376,200         US$34.20         10%


      ** FOR A LIMITED TIME ONLY **
      We are offering 0% interest and absolute no fee financing on the
      purchase of each United Teak Reforestation Parcel… No qualification
      or credit check required
Securing Your Investment

Purchases secured by “Timber Deed”
                              Front
Documentation Includes:
   - Number of trees                  Back
     purchased / guaranteed
     at final harvest
   - Assignment to customer
     of complete and
     unencumbered ownership
     of trees purchased
   - Location of trees (via
     GPS coordinates)
                                           GPS
                                        Coordinates
Your Teak Parcel Valuation

Calculated value of each United Teak “Parcel”
   • One Parcel (1110 trees) of Teak will yield approximately 240 Cubic Meters of
     commercial wood within 20 years, utilizing an annualized conservative growth rate
     of 12 Cubic Meters per hectare
   • A conservative average teak wholesale price estimate per cubic meter (424 board
     feet) is US$1,060.00, or US$2.50 per board foot (see chart)

                              ITTO (1)reportedteak log prices as of October, 2005
                                   M yanm ar V eneer       M yanm ar Saw       M yanm ar Saw        U S Im port
      M easure                                                                                                    (2 )
                                        2nd Q ual           Q uality G r I      Q uality G r II   A verage 2005
      E uro per H oppus Ton               3,866                 1,914               1,545              2,207
      U S$ per C ubic M eter              2,642                 1,308               1,056              1,508
      U S $ per B oard Foot                6.23                 3.09                2.49               3.56

    Notes
    (1)   Source International Tropical Timber Organization (www.itto.or.jp)
    (2)   Price refers to plantation sawn wood, and includes small sizes


   • The estimated conservative harvest value of a United Teak tree Parcel is
     US$254,400 at TODAY’S wholesale prices (US$1,060 x 240 = US$254,400)
Asset Value / Returns

When you purchase one of our                    Return Example:
certified Teak “Parcels” you are                Full Parcel of New Seedlings
actually paying only a fraction of the
asset’s value at maturity, based upon             Harvest value of full Parcel with
currentwholesale prices!                          0% increase (1,100 trees)           $254,400
                                                  Purchase Price (over 20 years)       (41,800)
 • This means the value of your initial tree      Growth appreciation at today’s
   purchase will increase 5 times faster than     prices - “Growth Value”             $212,600
   the cost, simply by growing… We call this
   “Growth Value”                                     Total Return                       508%
                                                      Multiple of cost                   5 X’s
 • When historical inflation trends are added
   to “Growth Value” the return on your Teak
   purchase increases to over 900%... Or          FUTURE harvest value of full
   more than 9 times your total investment        Parcel (1,100 trees)                $433,200
 • Our conservative calculated returns do not     Purchase Price (over 20 years)       (41,800)
   take into account the value of you paying      Growth appreciation calculated
   for your investment over 20 years… That is     at conservative 3% increase         $391,400
   an additional benefit and investment               Total Return                       936%
   security mechanism unparalleled in the             Multiple of cost                    9X’s
   reforestation investment industry
Teak Price Trends

The median wholesale price of Teak has increased an average of 5.5%
per year since 1972
                                                    W h o le s a le T e a k P ric e (1)
                                                       U S $ P e r C u b ic M e t e r




   $2,000
                                                                                               (2)
                               Natural Deforested
                                      Teak                  ITTO

                                           FAO
   $1,000
                                                                                        (3)


                                                                                                     Plantation Teak

         $0
           1972                     1982                      1992                      2002                   2012



   Chart Notes
   (1)    Source International Tropical Timber Organization (www.itto.or.jp), FAO (www.fao.org) and UTMG analysis
   (2)    Drop in deforested Teak price is related to political situation in Myanmar and international deforestation laws
   (3)    Plantation Teak prices steadily increased the last five years with projected long term annual growth of 5.5% to 7%
Teak Price Future

Teak prices are predicted to continually grow mainly due to increased
global demand and a decreased supply of quality timber
      • Increased global government restrictions placed on the cutting of natural growth
        forests has created a strong world demand for quality Teak timber. It is expected
        that the government will continue to restrict deforestation practices, eventually
        prohibiting all cutting of natural forests. This will surely increase the prices of
        plantation Teak timber
      • The expected cubic meter value at each scheduled thinning / harvest has been
        calculated utilizing a moderate 3.0% annual increase in already conservative Teak
        timber prices… The market trend since 1972 has averaged more than 5.5%
                                                  Projected Teak Price

   Commercial Thinning              Commercial Thinning             Commercial Thinning              Commercial Thinning
        Year 7                          Year 10                         Year 14                          Year 20

           $200 / M3                      $1,383 / M3                      $1,557 / M3                      $1,859 / M3

 Notes
 (1)   A current Teak timber price of US$1,060 M3 was utilized as a starting point for growth projections
 (2)   Average annual Teak timber price growth rate of 3% was applied to harvest years 10 through 20
 (3)   Due to reduced size and maturity of timber harvested in year 7, a conservative fixed value of US$200 M 3 was utilized
Teak Investment Returns

Should historical price trends of Teak timber continue, the value of
your United Teak investment is expected to greatly exceedthe
appreciation of conventional global investments
     • Applying a conservative 3.0% annual Teak timber price increase, your United Teak
       investment is projected to earn a 16.5% annualized compounded return… Net!!
                                               Investment Projection

    Age of          Trees             Trees            Harvested         Commercial         Management         Investment
    Trees          Standing          Thinned          Timber [M3]          Value             Fees [12%]         Net Value
       4              1,100             433                 0                  $0                 $0                $0
       7              667               267                22.6              $5,391              $647             $4,744
       10             400               132                32.5             $44,970             $5,396           $39,574
       14             268                88                47.0             $73,102             $8,772           $64,330
       20             180               180               166.6            $309,742            $37,169          $272,573
             Totals                    1,100              268.7            $433,205            $51,985          $381,220
 Notes
 (1)   An average annual Teak timber price growth rate of 3% assumed, calculated utilizing the “Projected Teak Price” chart
 (2)   The calculated 16.5% average annual compounded return does not take into account periodic harvest revenue payments
Comparing Teak to
                                 Conventional Investments

When you compare anticipated appreciation in value to conventional
investment alternatives…Teak greatly exceeds the competition
 Compounded annual return – Last 32 years

16.5%      United Teak                                                            11,378%

 7.4% U.S. Stock Market (DJ)       915%                                      Over 113 Times
                                                                               Purchase Price
 8.0% Stock Market (TSE)
    CND.                           1,087%
                                                                             And if history
                                                 Total Return %                repeats…
 3.1%          Nikkei (Japan)    258%
                                                 after 32 years
                                                                             11 Times better
 5.0%    U. S. T-Bills / Bonds   454%                                           than the US
                                                                                Stock Market
 6.1%           Gold Bullion      627%

 8.8%        U.S. Real Estate           1,366%

                                        2,500%   5,000%   7,500%   10,000%    12,500%
Primary Influence

How are these returns consistently achievable?



           Quick growing resource

           Ever-increasing demand

           Limited world supply
Teak Supply Influences

Teak timber supplies are influenced and limited
primarily due to the following global factors:
  • Environmental requirements severely limit suitable growing regions:
      -   Teak trees only grow adequately within 10 - 15 degrees of the equator
      -   Growing region must be at the correct elevation with distinct wet and dry seasons
      -   Only equatorial regions of Central / South America and Southeast Asia / Africa possess the
          essential temperature, humidity and rainfall characteristics
  • Deforestation and destructive forestry continues to occur in many areas
    designated as suitable growth regions:
      -   The 2001 State of the World’s Forest Report published by the United Nations stated - “While forest
          area in developed countries has stabilized and is slightly increasing overall, deforestation has continued in many
          developing countries”
  • Pressure from the United Nations and key governments forcing new legislation to
    prohibit the cutting of indigenous Teak trees
  • Good quality plantation Teak requires sufficient care and maintenance in the early
    years in order to produce marketable timber
Teak Demand

Plantation Teak is the investment of the future, but
supply of good quality timber will be limited
   • Demand for good quality Teak has never been higher due to its strength, hardness
     and durability
   • The high oil content of teak wood                provides    natural   resistance   to
     insects, fungus, fire, water and toxic acids
   • Recognized globally as a quality construction material that will endure the test of
     time, lasting for decades and even centuries
   • Teak is an essential construction material in ship and yacht
     building,               joinery,                  flooring,                 decorative
     carving, cabinetwork, paneling, turnery, specialty fixtures, tanks and vats
   • Demand and new applications for Teak wood are ever increasing, while good
     quality timber is decreasing at a rapid pace


This dynamic assures ever-increasing prices for Teak wood!
Risk Assessment

With such high returns… What are the risks?
  • Possible risks associated with Teak plantations:
                      -   Agricultural
                      -   Physical and Environmental
                      -   Government Regulations
                      -   Plantation Management
                      -   Time… State of future markets
                      -   Impact of Inflation

  • At United Teak… We have carefully structured our timber
    investment packages to mitigate the primary risks
    associated with Teak plantations and to ensure your
    asset is safe and secure during the 20 year life-cycle
Agricultural Risks

 • Insects…      No indigenous harmful pests. Only
   exposure is to roots within first year or of
   planting. Problem easily avoided by proper
   preparation and bio-sensitive insecticides
 • Fungus / biological…             No known cases
   in Panama of mass fungus or biological
   destruction. If present, fixed by implementing an
   effective spraying program
 • Growth…        Inferior growth usually results from
   neglect, poor soil or unsuitable climate
   conditions. At United Teak we:
   -   Select farms with only grade 1 soil conditions
       situated in optimal growing regions
   -   Our expert team of on-site foresters oversee all
       phases of the growth and management process
       including annual maintenance and fertilization

High motivation for continued proper management… UTMG
fees are based solely on quality of final harvest
Physical / Environmental
                                                        Risks

  • Hurricane and Floods…              Hurricanes are non-existent in
    the region. Trees / farms receive sufficient rainfall eight months of
    the year and excess flooding is easy managed by topography
    grading and properly planned irrigation
  • Fire…     Forest fires highly unlikely in the tropics and the trees
    high oil content make them impervious to fire once they are a few
    years of age. Fire ditches are maintained during the dry season to
    reduce accidental fire risks
  • Theft…     Logistically impossible as workers live onsite and work
    the plantation daily. UTMG staff and foresters provide regular
    oversight and inspection. Site is fully protected with a security
    fence with no hidden or concealed access points
  • Unforeseen destruction and catastrophe…                        None
    know to the region

UTMG guarantees your Teak saplings… Should any
trees within the first two years of planting not
perform to industry standards, they will be replaced
and replanted at our cost
Government and Legal Risk

Why is Panama ideal?
  • Stable government with a democratic voting system and a legal structure
    based on globally recognized civil law
  • Radical shift in historical governmental process highly unlikely…
      -   Widespread land ownership and voter participation in general elections
      -   Viewed as one of brightest democratic success stories of the last century
      -   Strategically important to the United States and regional stability… A member of the Central
          American Free Trade Agreement (CAFTA) with United States
      -   No indigenous military… Making change by revolution unlikely
      -   Progressive business environment with tax incentives, land ownership laws and rights
          encouraging plantation development
      -   The Panama economy relies heavily on foreign investment, trade and tourism

  • Panama possess the optimum political conditions for stable investment in
    Teak plantations…
      -   “Although not indigenous to Panama, this tiny country provides a uniquely perfect
          geographical, climatic and geomorphologic condition for the production of high quality plantation
          Teak, and with some of the fastest growth rates of Teak in the world being recorded in Panama.”
          [Teakwood Commercialization - 1998]
Management Risk

Highly skilled and professional team assembled to manage
your asset’s growth
   • John Cornacchia… United Teak Founder, Chairman of the Board
    - Passionate visionary with strong ethical business practices
    - Successful business owner and operations manager for over 22 years
    - Highly experienced in the dynamic global business market
    - Operating in Panama for over five years with a solid team on the ground
   • Strong operations team… United Teak Management Group
    - Chief Executive Officer, corporate insurance expert with over 20 years of experience in
      operating businesses in Canada
    - Chief Operation Officer with over 16 years experience in managing agriculture projects
      in Panama
    - A full time forester highly educated and experienced in soil rehabilitation and Teak
      plantations
    - Full time plantation site manager overseeing a team of various full time and seasonal
      plantation employees
Time… Market Risk

The hardest risk to manage… Unforeseen market conditions
and changes
   • Certain primary factors mitigate this risk, thereby reducing the negative
     impact on your investment:
    - Teak has always been in high demand and will remain desirable due to the unique
      properties and qualities it possesses
    - The quality of plantation Teak wood has greatly increased due to improved planting
      and maintenance practices, resulting in increased demand for the precious natural
      resource
    - Supply is becoming increasingly limited due to the high demand
    - Worldwide legislative trend toward rainforest preservation and laws prohibiting the
      cutting of indigenous Teak trees and other tropical species
    - Recent push to establish plantations in indigenous regions of Southeast Asia and India
      will not enter the market for many years after plantations in Panama are ready for
      harvest, due to the quick growing cycles in the region

The best hedge against time and market risk… Price leverage!
Time… Market Risk

How price leverage can hedge against time and market risk:
   • Your purchase price provides leverage of 5 to 1 (current harvest value vs. cost)
     providing outstanding risk protection
   • The chart below depicts what would happen in the unlikely event that the future
     value of Teak wood (relative to other goods and services) declines by 50%

                                                            Normal        Zero
                                                           inflation    inflation
        Today’s wholesale yield value of one parcel        $254,400     $254,400
        Inflation rate (same as last 15 years)                 3.0%        ZERO
        Future wholesale value                             $433,200     $254,400
        Less: 50% drop in market value                    ($216,600)   ($127,200)
        Harvest proceeds                                   $216,600     $127,200
        Total return (vs. $41,800 cost)                      418%         204%
        Multiple of cost                                     4 X’s        2 X’s
Performance Guarantees…
                            Our Commitment to You

United Teak is built on sound and ethical business
practices… We guarantee our services
   • United Teak guarantees that your Teak saplings will grow to industry standards
     during the first two crucial growing years:
      -   Should any of your Teak saplings fail to grow properly within the first two years of initial
          planting, United Teak will purchase and replant them at our expense with no additional cost to you -
          Zero
   • United Teak guarantees that you will be completely satisfied with the performance
     of your Teak parcel investment… So much so that we provide a five-year full
     money-back policy:
      -   In the unlikely event that you are not fully satisfied with your Teak parcel investment on the five year
          anniversary purchase date, United Teak will provide a full refund of every dollar paid under your
          contract, including 2.85% compounded annual interest. No questions and no cost to you - Zero
   • United Teak guarantees that your parcel will deliver a minimum yield of 240 cubic
     meters of commercial grade timber during the 20 year life-cycle:
      -   Each of our Teak parcels are properly managed so that they produce 240 cubic meters of
          commercial grade timber during the 20 year life-cycle. Simply… We will provide any shortfall that
          may possibly occur from our own reserves at no additional cost to you - Zero
The United Teak guarantees represent our commitment to you
Taking Action…

United Teak has assembled a highly specialized team of
experts and programs to provide a highly unique opportunity

   • If your financial goals include:
       - Highly lucrative, long-term investment programs
       - Mitigating risks associated with the volatile stock market
       - Diversifying your portfolio while investing globally in a renewable resource
       - The security of fully guaranteed asset ownership
       - Paying for your investment over the entire term of ownership
AND…
       - The opportunity to help protect the world’s precious environment


   • Get involved with this exciting initiative and contact United Teak
     today… Or visit our website at www.unitedteak.com
The following presentation includes various
statistics pertaining to inflation and selling price
indices and current market values. Please be
advised that past inflation and selling price trends
are no guarantee of future performance.
Individuals should consult their own professional
advisors to determine their financial needs.
No information provided or opinion expressed in
this presentation constitutes an offer to buy or sell
any security.

     Use your mouse to click anywhere to advance to
            the next discussion point or slide

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Understanding Teak Investment and Reforestation Project Details

  • 1. The following presentation includes various statistics pertaining to inflation, including selling price indices and current market values. Please be advised that past inflation and selling price trends are no guarantee of future performance. Individuals should consult their own professional advisors to determine their financial needs. No information provided or opinion expressed in this presentation constitutes an offer to buy or sell any security. Use your mouse to click anywhere to advance to the next discussion point or slide
  • 2. The following presentation includes various statistics pertaining to inflation and selling price indices and current market values. Please be advised that past inflation and selling price trends are no guarantee of future performance. Individuals should consult their own professional advisors to determine their financial needs. No information provided or opinion expressed in this presentation constitutes an offer to buy or sell any security. Use your mouse to click anywhere to advance to the next discussion point or slide
  • 3. What you should know about Teak… Teak (also known as Tectona Grandis): • Is a deciduous hardwood tree indigenous to the dry and hilly terrains of Indonesia and Southeast Asia • Remains one of the most valuable of all hardwoods and is known for its beauty, strength, durability and weather-resistant qualities • Is the leading choice for marine and outdoor furniture applications because the extremely dense wood contains natural oils and rubber content, thereby possessing the greatest capability of any wood to withstand the effects of the harsh outdoor environment • Can naturally endure the effects of sun, rain and even snow without rotting, warping, cracking, shrinkage or swelling • Will naturally age to a beautiful silver-gray hew over the years or with a periodic application of natural teak oil will maintain its original color and richness for a lifetime. • Prices have increased 15% per annum between 2002 and 2007 with prices increasing by a staggering 67% in 2007 due to the supply deficit, according to the ONF (Central American National Forestry Office)
  • 4. What is the Project? A unique initiative designed to: • Promote responsible and sustainable reforestation in an genuine effort to preserve the threatened tropical rainforest throughout the world, one of Earth’s most precious natural habitats … While • Providing individuals, businesses and institutions the opportunity to fortify their financial futures through responsible and sustainable investing The United Teak Reforestation Project was established in 2008 and is managed by the United Teak Management Group (UTMG) • UTMG is a Panamanian registered privately held corporation founded on strong ethical and visionary business principles, primarily focused toward reforestation development and management of sustainable teak plantations in the Central American country of The Republic of Panama • UTMG has full and unencumbered authority to develop, market and manage all aspects of the United Teak Reforestation Project including the associated assets, employees, equipment, land and trees
  • 5. Project Overview Project objectives • Reduce deforestation of tropical rainforests by developing Teak tree plantations to fulfill growing global market demand for quality Teak wood • End destructive environmental impact of historical practices by: - Reducing the need for harsh and destructive stripping of indigenous trees - Establishing sustainable Teak tree plantations on land previously “cut and slashed” for cattle grazing to restore and contribute to the lush tropical canopy - Reduce and progressively reverse the environmental impact of the callous destruction of tropical rainforests Project expansion achieved through sale of Teak trees • Clients purchase a certified number of quality Teak trees per 1 hectare (2.5 acre) parcel • UTMG prepares the land, plants, maintains and harvests Teak trees on behalf of the client • Client receives harvest proceeds… Project expansion achieved… All stakeholders benefit, including the precious global environment
  • 6. Project Methodology… Eliminate “Cut and Slash” United Teak acquires previously “Cut and Slashed” dormant fields and live-stock grazing land in ecologically sensitive areas of beautiful Panama
  • 7. Project Methodology… Preparation and Planting Following hand clearing and cultivation of the land, high- quality Teak Seedlings are selected from certified growers and planted during the optimal rainy season
  • 8. Project Methodology… Protection and Growth Cycle The skilled forestry team at UTMG ensures complete care and maintenance of the entire Teak plantation over the projected Twenty-year growth cycle 18 Months 48 Months
  • 9. Project Methodology… Plantation Management UTMG manages all aspects of the Project through final harvest and ultimate sale of Client timber to selected Teak distributors, wholesalers and end-users
  • 10. What You Are Buying? Trees guaranteed to grow… With complete life cycle management • Clients purchase and retain 1 hectare (2.5 acres) segregated “Parcels” of planted and fully managed Teak trees with a guaranteed[1] minimum yield / number of trees at final harvest • Typically, each parcel purchased is planted with approximately 1,100 quality Teak seedlings obtained through a recognized local Panamanian grower, although other various species of trees can be mutually agreed upon • UTMG provides each client with: - Complete land preparation, planting, care and maintenance of Teak trees purchased throughout the entire growth cycle (Twenty-years for new seedlings) - Culling and preparation services (conversion to marketable timber) at final harvest - Sale of marketable timber in the wholesale Teak market on behalf of the client, obtaining fair and available wholesale pricing (or preparation for delivery to the client upon request) • The Purchase Price is the only out of pocket cost to the client… A one-time 12% fee is deducted from all timber sale proceeds to compensate the cutting, management and selling services provided by UTMG during the contract [1]If for any reason the client’s segregated parcel of planted Teak trees does not produce the contracted yield at final harvest, UTMG will provide the difference from a reserve of privately owned Teak trees
  • 11. Teak Tree Parcel Pricing Current cost of one United Teak Reforestation Parcel (1,100 trees at planting with a guaranteed minimum yield of 240 Cubic Meters of commercial grade wood) is US$41,800 • Investment discounts shall be provided for each United Teak purchase contract of five parcels or greater US$9,880 Purchase Size No. of Trees Purchase Price Price per Tree Discount Down 1 Parcel 1,100 US$41,800 US$38.00 - US$1,680 a year for 5 Parcels 5,500 US$198,550 US$36.10 5% 19 Years 10 Parcels 11,000 US$376,200 US$34.20 10% ** FOR A LIMITED TIME ONLY ** We are offering 0% interest and absolute no fee financing on the purchase of each United Teak Reforestation Parcel… No qualification or credit check required
  • 12. Securing Your Investment Purchases secured by “Timber Deed” Front Documentation Includes: - Number of trees Back purchased / guaranteed at final harvest - Assignment to customer of complete and unencumbered ownership of trees purchased - Location of trees (via GPS coordinates) GPS Coordinates
  • 13. Your Teak Parcel Valuation Calculated value of each United Teak “Parcel” • One Parcel (1110 trees) of Teak will yield approximately 240 Cubic Meters of commercial wood within 20 years, utilizing an annualized conservative growth rate of 12 Cubic Meters per hectare • A conservative average teak wholesale price estimate per cubic meter (424 board feet) is US$1,060.00, or US$2.50 per board foot (see chart) ITTO (1)reportedteak log prices as of October, 2005 M yanm ar V eneer M yanm ar Saw M yanm ar Saw U S Im port M easure (2 ) 2nd Q ual Q uality G r I Q uality G r II A verage 2005 E uro per H oppus Ton 3,866 1,914 1,545 2,207 U S$ per C ubic M eter 2,642 1,308 1,056 1,508 U S $ per B oard Foot 6.23 3.09 2.49 3.56 Notes (1) Source International Tropical Timber Organization (www.itto.or.jp) (2) Price refers to plantation sawn wood, and includes small sizes • The estimated conservative harvest value of a United Teak tree Parcel is US$254,400 at TODAY’S wholesale prices (US$1,060 x 240 = US$254,400)
  • 14. Asset Value / Returns When you purchase one of our Return Example: certified Teak “Parcels” you are Full Parcel of New Seedlings actually paying only a fraction of the asset’s value at maturity, based upon Harvest value of full Parcel with currentwholesale prices! 0% increase (1,100 trees) $254,400 Purchase Price (over 20 years) (41,800) • This means the value of your initial tree Growth appreciation at today’s purchase will increase 5 times faster than prices - “Growth Value” $212,600 the cost, simply by growing… We call this “Growth Value” Total Return 508% Multiple of cost 5 X’s • When historical inflation trends are added to “Growth Value” the return on your Teak purchase increases to over 900%... Or FUTURE harvest value of full more than 9 times your total investment Parcel (1,100 trees) $433,200 • Our conservative calculated returns do not Purchase Price (over 20 years) (41,800) take into account the value of you paying Growth appreciation calculated for your investment over 20 years… That is at conservative 3% increase $391,400 an additional benefit and investment Total Return 936% security mechanism unparalleled in the Multiple of cost 9X’s reforestation investment industry
  • 15. Teak Price Trends The median wholesale price of Teak has increased an average of 5.5% per year since 1972 W h o le s a le T e a k P ric e (1) U S $ P e r C u b ic M e t e r $2,000 (2) Natural Deforested Teak ITTO FAO $1,000 (3) Plantation Teak $0 1972 1982 1992 2002 2012 Chart Notes (1) Source International Tropical Timber Organization (www.itto.or.jp), FAO (www.fao.org) and UTMG analysis (2) Drop in deforested Teak price is related to political situation in Myanmar and international deforestation laws (3) Plantation Teak prices steadily increased the last five years with projected long term annual growth of 5.5% to 7%
  • 16. Teak Price Future Teak prices are predicted to continually grow mainly due to increased global demand and a decreased supply of quality timber • Increased global government restrictions placed on the cutting of natural growth forests has created a strong world demand for quality Teak timber. It is expected that the government will continue to restrict deforestation practices, eventually prohibiting all cutting of natural forests. This will surely increase the prices of plantation Teak timber • The expected cubic meter value at each scheduled thinning / harvest has been calculated utilizing a moderate 3.0% annual increase in already conservative Teak timber prices… The market trend since 1972 has averaged more than 5.5% Projected Teak Price Commercial Thinning Commercial Thinning Commercial Thinning Commercial Thinning Year 7 Year 10 Year 14 Year 20 $200 / M3 $1,383 / M3 $1,557 / M3 $1,859 / M3 Notes (1) A current Teak timber price of US$1,060 M3 was utilized as a starting point for growth projections (2) Average annual Teak timber price growth rate of 3% was applied to harvest years 10 through 20 (3) Due to reduced size and maturity of timber harvested in year 7, a conservative fixed value of US$200 M 3 was utilized
  • 17. Teak Investment Returns Should historical price trends of Teak timber continue, the value of your United Teak investment is expected to greatly exceedthe appreciation of conventional global investments • Applying a conservative 3.0% annual Teak timber price increase, your United Teak investment is projected to earn a 16.5% annualized compounded return… Net!! Investment Projection Age of Trees Trees Harvested Commercial Management Investment Trees Standing Thinned Timber [M3] Value Fees [12%] Net Value 4 1,100 433 0 $0 $0 $0 7 667 267 22.6 $5,391 $647 $4,744 10 400 132 32.5 $44,970 $5,396 $39,574 14 268 88 47.0 $73,102 $8,772 $64,330 20 180 180 166.6 $309,742 $37,169 $272,573 Totals 1,100 268.7 $433,205 $51,985 $381,220 Notes (1) An average annual Teak timber price growth rate of 3% assumed, calculated utilizing the “Projected Teak Price” chart (2) The calculated 16.5% average annual compounded return does not take into account periodic harvest revenue payments
  • 18. Comparing Teak to Conventional Investments When you compare anticipated appreciation in value to conventional investment alternatives…Teak greatly exceeds the competition Compounded annual return – Last 32 years 16.5% United Teak 11,378% 7.4% U.S. Stock Market (DJ) 915% Over 113 Times Purchase Price 8.0% Stock Market (TSE) CND. 1,087% And if history Total Return % repeats… 3.1% Nikkei (Japan) 258% after 32 years 11 Times better 5.0% U. S. T-Bills / Bonds 454% than the US Stock Market 6.1% Gold Bullion 627% 8.8% U.S. Real Estate 1,366% 2,500% 5,000% 7,500% 10,000% 12,500%
  • 19. Primary Influence How are these returns consistently achievable? Quick growing resource Ever-increasing demand Limited world supply
  • 20. Teak Supply Influences Teak timber supplies are influenced and limited primarily due to the following global factors: • Environmental requirements severely limit suitable growing regions: - Teak trees only grow adequately within 10 - 15 degrees of the equator - Growing region must be at the correct elevation with distinct wet and dry seasons - Only equatorial regions of Central / South America and Southeast Asia / Africa possess the essential temperature, humidity and rainfall characteristics • Deforestation and destructive forestry continues to occur in many areas designated as suitable growth regions: - The 2001 State of the World’s Forest Report published by the United Nations stated - “While forest area in developed countries has stabilized and is slightly increasing overall, deforestation has continued in many developing countries” • Pressure from the United Nations and key governments forcing new legislation to prohibit the cutting of indigenous Teak trees • Good quality plantation Teak requires sufficient care and maintenance in the early years in order to produce marketable timber
  • 21. Teak Demand Plantation Teak is the investment of the future, but supply of good quality timber will be limited • Demand for good quality Teak has never been higher due to its strength, hardness and durability • The high oil content of teak wood provides natural resistance to insects, fungus, fire, water and toxic acids • Recognized globally as a quality construction material that will endure the test of time, lasting for decades and even centuries • Teak is an essential construction material in ship and yacht building, joinery, flooring, decorative carving, cabinetwork, paneling, turnery, specialty fixtures, tanks and vats • Demand and new applications for Teak wood are ever increasing, while good quality timber is decreasing at a rapid pace This dynamic assures ever-increasing prices for Teak wood!
  • 22. Risk Assessment With such high returns… What are the risks? • Possible risks associated with Teak plantations: - Agricultural - Physical and Environmental - Government Regulations - Plantation Management - Time… State of future markets - Impact of Inflation • At United Teak… We have carefully structured our timber investment packages to mitigate the primary risks associated with Teak plantations and to ensure your asset is safe and secure during the 20 year life-cycle
  • 23. Agricultural Risks • Insects… No indigenous harmful pests. Only exposure is to roots within first year or of planting. Problem easily avoided by proper preparation and bio-sensitive insecticides • Fungus / biological… No known cases in Panama of mass fungus or biological destruction. If present, fixed by implementing an effective spraying program • Growth… Inferior growth usually results from neglect, poor soil or unsuitable climate conditions. At United Teak we: - Select farms with only grade 1 soil conditions situated in optimal growing regions - Our expert team of on-site foresters oversee all phases of the growth and management process including annual maintenance and fertilization High motivation for continued proper management… UTMG fees are based solely on quality of final harvest
  • 24. Physical / Environmental Risks • Hurricane and Floods… Hurricanes are non-existent in the region. Trees / farms receive sufficient rainfall eight months of the year and excess flooding is easy managed by topography grading and properly planned irrigation • Fire… Forest fires highly unlikely in the tropics and the trees high oil content make them impervious to fire once they are a few years of age. Fire ditches are maintained during the dry season to reduce accidental fire risks • Theft… Logistically impossible as workers live onsite and work the plantation daily. UTMG staff and foresters provide regular oversight and inspection. Site is fully protected with a security fence with no hidden or concealed access points • Unforeseen destruction and catastrophe… None know to the region UTMG guarantees your Teak saplings… Should any trees within the first two years of planting not perform to industry standards, they will be replaced and replanted at our cost
  • 25. Government and Legal Risk Why is Panama ideal? • Stable government with a democratic voting system and a legal structure based on globally recognized civil law • Radical shift in historical governmental process highly unlikely… - Widespread land ownership and voter participation in general elections - Viewed as one of brightest democratic success stories of the last century - Strategically important to the United States and regional stability… A member of the Central American Free Trade Agreement (CAFTA) with United States - No indigenous military… Making change by revolution unlikely - Progressive business environment with tax incentives, land ownership laws and rights encouraging plantation development - The Panama economy relies heavily on foreign investment, trade and tourism • Panama possess the optimum political conditions for stable investment in Teak plantations… - “Although not indigenous to Panama, this tiny country provides a uniquely perfect geographical, climatic and geomorphologic condition for the production of high quality plantation Teak, and with some of the fastest growth rates of Teak in the world being recorded in Panama.” [Teakwood Commercialization - 1998]
  • 26. Management Risk Highly skilled and professional team assembled to manage your asset’s growth • John Cornacchia… United Teak Founder, Chairman of the Board - Passionate visionary with strong ethical business practices - Successful business owner and operations manager for over 22 years - Highly experienced in the dynamic global business market - Operating in Panama for over five years with a solid team on the ground • Strong operations team… United Teak Management Group - Chief Executive Officer, corporate insurance expert with over 20 years of experience in operating businesses in Canada - Chief Operation Officer with over 16 years experience in managing agriculture projects in Panama - A full time forester highly educated and experienced in soil rehabilitation and Teak plantations - Full time plantation site manager overseeing a team of various full time and seasonal plantation employees
  • 27. Time… Market Risk The hardest risk to manage… Unforeseen market conditions and changes • Certain primary factors mitigate this risk, thereby reducing the negative impact on your investment: - Teak has always been in high demand and will remain desirable due to the unique properties and qualities it possesses - The quality of plantation Teak wood has greatly increased due to improved planting and maintenance practices, resulting in increased demand for the precious natural resource - Supply is becoming increasingly limited due to the high demand - Worldwide legislative trend toward rainforest preservation and laws prohibiting the cutting of indigenous Teak trees and other tropical species - Recent push to establish plantations in indigenous regions of Southeast Asia and India will not enter the market for many years after plantations in Panama are ready for harvest, due to the quick growing cycles in the region The best hedge against time and market risk… Price leverage!
  • 28. Time… Market Risk How price leverage can hedge against time and market risk: • Your purchase price provides leverage of 5 to 1 (current harvest value vs. cost) providing outstanding risk protection • The chart below depicts what would happen in the unlikely event that the future value of Teak wood (relative to other goods and services) declines by 50% Normal Zero inflation inflation Today’s wholesale yield value of one parcel $254,400 $254,400 Inflation rate (same as last 15 years) 3.0% ZERO Future wholesale value $433,200 $254,400 Less: 50% drop in market value ($216,600) ($127,200) Harvest proceeds $216,600 $127,200 Total return (vs. $41,800 cost) 418% 204% Multiple of cost 4 X’s 2 X’s
  • 29. Performance Guarantees… Our Commitment to You United Teak is built on sound and ethical business practices… We guarantee our services • United Teak guarantees that your Teak saplings will grow to industry standards during the first two crucial growing years: - Should any of your Teak saplings fail to grow properly within the first two years of initial planting, United Teak will purchase and replant them at our expense with no additional cost to you - Zero • United Teak guarantees that you will be completely satisfied with the performance of your Teak parcel investment… So much so that we provide a five-year full money-back policy: - In the unlikely event that you are not fully satisfied with your Teak parcel investment on the five year anniversary purchase date, United Teak will provide a full refund of every dollar paid under your contract, including 2.85% compounded annual interest. No questions and no cost to you - Zero • United Teak guarantees that your parcel will deliver a minimum yield of 240 cubic meters of commercial grade timber during the 20 year life-cycle: - Each of our Teak parcels are properly managed so that they produce 240 cubic meters of commercial grade timber during the 20 year life-cycle. Simply… We will provide any shortfall that may possibly occur from our own reserves at no additional cost to you - Zero The United Teak guarantees represent our commitment to you
  • 30. Taking Action… United Teak has assembled a highly specialized team of experts and programs to provide a highly unique opportunity • If your financial goals include: - Highly lucrative, long-term investment programs - Mitigating risks associated with the volatile stock market - Diversifying your portfolio while investing globally in a renewable resource - The security of fully guaranteed asset ownership - Paying for your investment over the entire term of ownership AND… - The opportunity to help protect the world’s precious environment • Get involved with this exciting initiative and contact United Teak today… Or visit our website at www.unitedteak.com
  • 31. The following presentation includes various statistics pertaining to inflation and selling price indices and current market values. Please be advised that past inflation and selling price trends are no guarantee of future performance. Individuals should consult their own professional advisors to determine their financial needs. No information provided or opinion expressed in this presentation constitutes an offer to buy or sell any security. Use your mouse to click anywhere to advance to the next discussion point or slide