AGARWOOD PROJECTS

Project 1: SECOIN BAVI FARM
Location: 75km from Hanoi centre : about 2km pathway (county lane), 43km inter-provincial asphalted road (No.89 road) and 30km national highway (Lang-HoaLac road) Land owners: - Mr. Ha Bien Cuong: 9.6 hectares (in which 8000 7-year old Aquilaria trees are existing) - Local farmers: 6 hectares (in which 1400 7-year old and 3500 5-year old Aquilaria trees) - Current land area for Aquilaria cultivation: 15.6 hectares (about 13,000 Aquilaria trees) Current assets: Mr. Ha Bien Cuong and SECOIN in joint contribution & management (1): No. 1 2 3 Asset description 9,400 7-year old A. trees 3500 5-year old A. trees 01 distillery Total Appraised unit value USD(3) VND 600,000 33.33333 400,000 22.22222 200,000,000 11111.11 Appraised amount USD (2) VND 5,640,000,000 313,333 1,400,000,000 77,778 200,000,000 11,111 7,240,000,000 402,222

(1) (2)

Not including land rental Rounded sum (3) Currency exchange rate: USD = VND18,000 Annual expenditure from 2010 onwards(4): No. 1 2 3 4 5 Description of works & materials Fertilizer (for 13,000 trees): 4000kg NPK Fertilizing works (120 mainpower days) Soil clearing, Weeding & Earth up (140 mainpower days) Management & Guard fee Pesticides Total Expenditure USD(2) VND 14,400,000 800 7,200,000 400 8,400,000 467 12,000,000 667 9,750,000 542 51,750,000 2876

(4)

Not including Agarwood inducement fee and working capital for distillery Total investment capital until 2019 (USD): 402,222 + 28,760 = 430,982 ~ USD431,000 (4) 1

AGARWOOD PROJECTS
Project 2: SECOIN HATINH FARM
Location: A cradle of Aquilaria crassna Pierre species, 465km from Hanoi centre : about 1km pathway (county lane), 13km national way No.8 and 451km national highway (HoChiMinh highway) Land & land owners: SECOIN HATINH CO., LTD. owns about 16 hectares, in which: - 8.5 hectares already growing 9550 Aquilaria crassna trees, in which: 750 trees of 45-month age 8800 trees of 32- month age - 6.5 hectares reserved for Aquilaria crassna plantation - 1 hectare for building distillery, nursery, sun-drying ground, warehouse and office Current assets: No. 1 2 3 Asset description 8800 trees of 32-month age 750 trees of 45-month age Land rental for 16 ha, 4 year (1,100,000VND/ha/year) Total Appraised unit value USD(2) VND 100,000 5.5555556 200,000 11.111111 1,100,000 61.111111 Appraised amount USD (1) VND 880,000,000 48,889 150,000,000 8,333 70,400,000 1,100,400,000 3,911 61,133

(1) (2)

Rounded sum Currency exchange rate: USD = VND18,000

Annual expenditure from 2010 onwards for 15 hectares of Aquilaria cultivation(3): No. 1 Description of works & materials Expenditure USD(2) VND 46,469,500 2582

For 8.5 hectares already cultivated (5,467,000VND/ha) For the first year of new cultivation in 6.5 hectares 2 87,337,250 (13,436,500VND/ha) 4852 For the second year onwards of new cultivation in 6.5 3 35,535,500 hectares (5,467,000VND/ha) 1974 4 Annual land rental for 16 ha (1,100,000VND/ha/year) 17,600,000 978 (3) Not including Agarwood inducement fee and expenditure for distillery, warehouse, nursery, office 2

Total investment capital until 2024 (15 years): For 8.5 hectares already cultivated: USD2582 x 15 years = USD38,730 For the first year of new cultivation in 6.5 ha: USD4852 x 1 year = USD4,852 For 14 years of new cultivation in 6.5 hectares: USD1974 x 14 years = USD27,636 Land rental for 16 ha in 15 years: USD978 x 15 years = USD14,670 Total investment capital in 15 years (2010-2024): USD85,888 ~ USD86,000

SECOIN CO., LTD. 59 Hang Chuoi street, Hai Ba Trung district, Hanoi, Vietnam Tel: 84-4-39718899, Fax: 84-4-39718898, E-mail: dxb@secoin.vn URL: www.secoin.vn; http://www.getamarket.com/secoinbio

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