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CHANDLER ORCHARDS

PROJECTED INVESTMENT YIELDS

I) General Considerations:

Included in the following analysis are 9 different yield and price scenarios, illustrating a range of differing
outcomes. The following analysis is made in constant dollars, without adjustments for inflation. In each scenario
operating costs are unchanged, illustrating the effect that the walnut price and per-acre yields have on long-
term profits.

II) Annual Profits at Maturity:

In each scenario, year 10 is highlighted to indicate the annual profits of a fully mature orchard plot. After
reaching maturity the annual yield growth ceases and yields stabilize over the decades. In the more optimistic
yield scenarios the orchard reaches maturity earlier in its lifecycle, while in the pessimistic scenario the orchard
doesn’t reach maturity until the 10th year.

III) Sale In Year 80:

The sale of the orchard for timber is projected in year 80 in this analysis, but could take place anytime after
year 20. Liquidating the orchard for timber illustrates the increase in residual value obtained after the investor
determines it is time to recover the capital invested.
CHANDLER ORCHARDS
PROJECTED INVESTMENT YIELDS

IV) ROI At Maturity:


10 Year Projected ROI With Different Price/Yield Scenarios

After an orchard

Optimistic
reaches maturity, yields
45 % 61 % 69 %
will stop the year over
year increase and
Price Scenario

stabilize. Barring any


Neutral

new techniques or
34 % 46 % 53 %
technology that
manages to increase
Pessimistic

future yields, the only


variation will be due to 24 % 31 % 36 %
weather events. A hail
or frost can affect the
Pessimistic Neutral Optimistic
yield of a single season, but
shouldn’t modify the yield profile Yield Scenario
(and thus the ROI) of the orchard
over the long-term.
Prices will be the determining profitability factor in a mature orchard, and will mark the difference between a
good year, a bad year, and everything in between.
PROJECTED INVESTMENT CASH FLOWS
Optimistic Yield Scenario: This is a projection made by the University of California Davis Agricultural Issues Center and represents optimal
yields using the industry's most modern techniques and practices. Although this projection is normally used by
California-based growers, the walnut industry in Mendoza closely monitors new techniques and practices used by
our California counterparts.
Optimistic Price Scenario: This is a future price estimate that assumes a 1-standard deviation increase in the inflation-adjusted FOB in-shell
price for Southern Cone walnut exports over the coming decades.
Other Assumptions: We assume (1) annual orchard expenses will remain stable over time, (2) we receive the FOB price when exporting.

Year by Year Projected Cash Flows (Per Acre Plot)


Imperial Units Year: 1 2 3 4 5 6 7 8 9 10+ 80

Operating Activities

Yield: Pounds per acre plot: Optimistic Yields 441 744 1,488 2,976 6,173 6,173 6,173 6,173 6,173
Walnut Price: $ per lb. (FOB, in-shell): Optimistic Prices $2.25 $2.25 $2.25 $2.25 $2.25 $2.25 $2.25 $2.25 $2.25

Gross Sales: 992 1,674 3,348 6,696 13,888 13,888 13,888 13,888 13,888
5% Management Fee: (50) (84) (167) (335) (694) (694) (694) (694) (694)
Annual Orchard Expenses: (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444)
Net Cash Flows From Operations: (1,444) (502) 146 1,736 4,917 11,749 11,749 11,749 11,749 11,749

Investment Activities

Initial Investment (15,000)


Sold For Timber & Residual Land Value 60,000
Net Cash Flows From Investments: (15,000) 60,000

Opening Cash Balance: 0 (15,000) (16,444) (16,946) (16,801) (15,064) (10,148) 1,601 13,351 25,100 859,290
Net Cash Flows For The Year: (15,000) (1,444) (502) 146 1,736 4,917 11,749 11,749 11,749 11,749 71,749
Ending Cash Balance: (15,000) (16,444) (16,946) (16,801) (15,064) (10,148) 1,601 13,351 25,100 36,849 931,040

Projected Return on Investment: 0.86% 10.24% 29.01% 69.33% 69.33% 69.33% 69.33% 423.39%

The orchard is laid out in rectangular blocks of 9.998 acres (4.05 hectares), each surrounded by a local access road. These blocks are subdivided into eight “acre plots” or four “hectare plots”. When we refer to “acre plots”, we are referring to standard plots that measure 1.249 acres (54,438 sq. ft.) or irregular-shaped plots that
differ in size, but contain 143 walnut trees (±2 trees) planted in 5 m. x 7 m. rows (16.9 ft x 22.96 ft). When we refer to “hectare plots”, we are referring to standard plots that measure 1.0115 hectares (10,115 m2) or irregular-shaped plots that may differ slightly in size, but contain 285 walnut trees (±4 trees) planted in 5 m. x 7 m. rows.

Our analysis includes predictions, estimates or other information that should be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not
to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. We
have attempted to present some risk factors relating to our business that may affect our predictions. You should also review our website at ChandlerOrchards.com/risks/ for a more complete discussion of these and other risks.
PROJECTED INVESTMENT CASH FLOWS
Optimistic Yield Scenario: This is a projection made by the University of California Davis Agricultural Issues Center and represents optimal
yields using the industry's most modern techniques and practices. Although this projection is normally used by
California-based growers, the walnut industry in Mendoza closely monitors new techniques and practices used by
our California counterparts.
Neutral Price Scenario: This is a future price estimate based on the inflation-adjusted FOB in-shell price for Southern Cone walnut exports
over the last two decades. It assumes future walnut prices will remain the same as historical averages.
Other Assumptions: We assume (1) annual orchard expenses will remain stable over time, (2) we receive the FOB price when exporting.

Year by Year Projected Cash Flows (Per Acre Plot)


Imperial Units Year: 1 2 3 4 5 6 7 8 9 10+ 80

Operating Activities

Yield: Pounds per acre plot: Optimistic Yields 441 744 1,488 2,976 6,173 6,173 6,173 6,173 6,173
Walnut Price: $ per lb. (FOB, in-shell): Neutral Prices $1.80 $1.80 $1.80 $1.80 $1.80 $1.80 $1.80 $1.80 $1.80

Gross Sales: 794 1,340 2,680 5,360 11,116 11,116 11,116 11,116 11,116
5% Management Fee: (40) (67) (134) (268) (556) (556) (556) (556) (556)
Annual Orchard Expenses: (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444)
Net Cash Flows From Operations: (1,444) (690) (172) 1,101 3,647 9,116 9,116 9,116 9,116 9,116

Investment Activities

Initial Investment (15,000)


Sold For Timber & Residual Land Value 60,000
Net Cash Flows From Investments: (15,000) 60,000

Opening Cash Balance: 0 (15,000) (16,444) (17,135) (17,306) (16,205) (12,558) (3,442) 5,674 14,790 662,009
Net Cash Flows For The Year: (15,000) (1,444) (690) (172) 1,101 3,647 9,116 9,116 9,116 9,116 69,116
Ending Cash Balance: (15,000) (16,444) (17,135) (17,306) (16,205) (12,558) (3,442) 5,674 14,790 23,905 731,124

Projected Return on Investment: 6.36% 21.07% 52.67% 52.67% 52.67% 52.67% 399.37%

The orchard is laid out in rectangular blocks of 9.998 acres (4.05 hectares), each surrounded by a local access road. These blocks are subdivided into eight “acre plots” or four “hectare plots”. When we refer to “acre plots”, we are referring to standard plots that measure 1.249 acres (54,438 sq. ft.) or irregular-shaped plots that
differ in size, but contain 143 walnut trees (±2 trees) planted in 5 m. x 7 m. rows (16.9 ft x 22.96 ft). When we refer to “hectare plots”, we are referring to standard plots that measure 1.0115 hectares (10,115 m2) or irregular-shaped plots that may differ slightly in size, but contain 285 walnut trees (±4 trees) planted in 5 m. x 7 m. rows.

Our analysis includes predictions, estimates or other information that should be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not
to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. We
have attempted to present some risk factors relating to our business that may affect our predictions. You should also review our website at ChandlerOrchards.com/risks/ for a more complete discussion of these and other risks.
PROJECTED INVESTMENT CASH FLOWS
Optimistic Yield Scenario: This is a projection made by the University of California Davis Agricultural Issues Center and represents optimal
yields using the industry's most modern techniques and practices. Although this projection is normally used by
California-based growers, the walnut industry in Mendoza closely monitors new techniques and practices used by
our California counterparts.
Pessimistic Price Scenario: This is a future price estimate that assumes a 1-standard deviation decrease in the inflation-adjusted FOB in-shell
price for Southern Cone walnut exports over the coming decades.
Other Assumptions: We assume (1) annual orchard expenses will remain stable over time, (2) we receive the FOB price when exporting.

Year by Year Projected Cash Flows (Per Acre Plot)


Imperial Units Year: 1 2 3 4 5 6 7 8 9 10+ 80

Operating Activities

Yield: Pounds per acre plot: Optimistic Yields 441 744 1,488 2,976 6,173 6,173 6,173 6,173 6,173
Walnut Price: $ per lb. (FOB, in-shell): Pessimistic Prices $1.35 $1.35 $1.35 $1.35 $1.35 $1.35 $1.35 $1.35 $1.35

Gross Sales: 596 1,006 2,012 4,023 8,344 8,344 8,344 8,344 8,344
5% Management Fee: (30) (50) (101) (201) (417) (417) (417) (417) (417)
Annual Orchard Expenses: (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444)
Net Cash Flows From Operations: (1,444) (878) (489) 466 2,377 6,482 6,482 6,482 6,482 6,482

Investment Activities

Initial Investment (15,000)


Sold For Timber & Residual Land Value 60,000
Net Cash Flows From Investments: (15,000) 60,000

Opening Cash Balance: 0 (15,000) (16,444) (17,323) (17,812) (17,345) (14,968) (8,485) (2,003) 4,479 464,727
Net Cash Flows For The Year: (15,000) (1,444) (878) (489) 466 2,377 6,482 6,482 6,482 6,482 66,482
Ending Cash Balance: (15,000) (16,444) (17,323) (17,812) (17,345) (14,968) (8,485) (2,003) 4,479 10,962 531,209

Projected Return on Investment: 2.62% 13.35% 36.39% 36.39% 36.39% 36.39% 373.25%

The orchard is laid out in rectangular blocks of 9.998 acres (4.05 hectares), each surrounded by a local access road. These blocks are subdivided into eight “acre plots” or four “hectare plots”. When we refer to “acre plots”, we are referring to standard plots that measure 1.249 acres (54,438 sq. ft.) or irregular-shaped plots that
differ in size, but contain 143 walnut trees (±2 trees) planted in 5 m. x 7 m. rows (16.9 ft x 22.96 ft). When we refer to “hectare plots”, we are referring to standard plots that measure 1.0115 hectares (10,115 m2) or irregular-shaped plots that may differ slightly in size, but contain 285 walnut trees (±4 trees) planted in 5 m. x 7 m. rows.

Our analysis includes predictions, estimates or other information that should be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not
to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. We
have attempted to present some risk factors relating to our business that may affect our predictions. You should also review our website at ChandlerOrchards.com/risks/ for a more complete discussion of these and other risks.
PROJECTED INVESTMENT CASH FLOWS
Neutral Yield Scenario: This is a projection for a new walnut plantation in Mendoza, Argentina made by Leandro Moreno, the agronomist
that supervises our orchard. It represents his estimate of the yields that should be obtained according to the local
techniques and practices. No losses due to severe weather events such as frost or hail are contemplated in this
scenario.
Optimistic Price Scenario: This is a future price estimate that assumes a 1-standard deviation increase in the inflation-adjusted FOB in-shell
price for Southern Cone walnut exports over the coming decades.
Other Assumptions: We assume (1) annual orchard expenses will remain stable over time, (2) we receive the FOB price when exporting.

Year by Year Projected Cash Flows (Per Acre Plot)


Imperial Units Year: 1 2 3 4 5 6 7 8 9 10+ 80

Operating Activities

Yield: Pounds per acre plot: Neutral Yields 441 661 1,323 2,756 4,740 5,512 5,512 5,512 5,512
Walnut Price: $ per lb. (FOB, in-shell): Optimistic Prices $2.25 $2.25 $2.25 $2.25 $2.25 $2.25 $2.25 $2.25 $2.25

Gross Sales: 992 1,488 2,976 6,200 10,664 12,400 12,400 12,400 12,400
5% Management Fee: (50) (74) (149) (310) (533) (620) (620) (620) (620)
Annual Orchard Expenses: (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444)
Net Cash Flows From Operations: (1,444) (502) (31) 1,383 4,446 8,686 10,336 10,336 10,336 10,336

Investment Activities

Initial Investment (15,000)


Sold For Timber & Residual Land Value 60,000
Net Cash Flows From Investments: (15,000) 60,000

Opening Cash Balance: 0 (15,000) (16,444) (16,946) (16,977) (15,595) (11,149) (2,463) 7,873 18,209 752,033
Net Cash Flows For The Year: (15,000) (1,444) (502) (31) 1,383 4,446 8,686 10,336 10,336 10,336 70,336
Ending Cash Balance: (15,000) (16,444) (16,946) (16,977) (15,595) (11,149) (2,463) 7,873 18,209 28,544 822,369

Projected Return on Investment: 8.14% 26.19% 51.16% 60.88% 60.88% 60.88% 414.29%

The orchard is laid out in rectangular blocks of 9.998 acres (4.05 hectares), each surrounded by a local access road. These blocks are subdivided into eight “acre plots” or four “hectare plots”. When we refer to “acre plots”, we are referring to standard plots that measure 1.249 acres (54,438 sq. ft.) or irregular-shaped plots that
differ in size, but contain 143 walnut trees (±2 trees) planted in 5 m. x 7 m. rows (16.9 ft x 22.96 ft). When we refer to “hectare plots”, we are referring to standard plots that measure 1.0115 hectares (10,115 m2) or irregular-shaped plots that may differ slightly in size, but contain 285 walnut trees (±4 trees) planted in 5 m. x 7 m. rows.

Our analysis includes predictions, estimates or other information that should be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not
to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. We
have attempted to present some risk factors relating to our business that may affect our predictions. You should also review our website at ChandlerOrchards.com/risks/ for a more complete discussion of these and other risks.
PROJECTED INVESTMENT CASH FLOWS
Neutral Yield Scenario: This is a projection for a new walnut plantation in Mendoza, Argentina made by Leandro Moreno, the agronomist
that supervises our orchard. It represents his estimate of the yields that should be obtained according to the local
techniques and practices. No losses due to severe weather events such as frost or hail are contemplated in this
scenario.
Neutral Price Scenario: This is a future price estimate based on the inflation-adjusted FOB in-shell price for Southern Cone walnut exports
over the last two decades. It assumes future walnut prices will remain the same as historical averages.
Other Assumptions: We assume (1) annual orchard expenses will remain stable over time, (2) we receive the FOB price when exporting.

Year by Year Projected Cash Flows (Per Acre Plot)


Imperial Units Year: 1 2 3 4 5 6 7 8 9 10+ 80

Operating Activities

Yield: Pounds per acre plot: Neutral Yields 441 661 1,323 2,756 4,740 5,512 5,512 5,512 5,512
Walnut Price: $ per lb. (FOB, in-shell): Neutral Prices $1.80 $1.80 $1.80 $1.80 $1.80 $1.80 $1.80 $1.80 $1.80

Gross Sales: 794 1,191 2,382 4,963 8,536 9,925 9,925 9,925 9,925
5% Management Fee: (40) (60) (119) (248) (427) (496) (496) (496) (496)
Annual Orchard Expenses: (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444)
Net Cash Flows From Operations: (1,444) (690) (313) 818 3,270 6,664 7,984 7,984 7,984 7,984

Investment Activities

Initial Investment (15,000)


Sold For Timber & Residual Land Value 60,000
Net Cash Flows From Investments: (15,000) 60,000

Opening Cash Balance: 0 (15,000) (16,444) (17,135) (17,448) (16,629) (13,359) (6,695) 1,289 9,274 576,160
Net Cash Flows For The Year: (15,000) (1,444) (690) (313) 818 3,270 6,664 7,984 7,984 7,984 67,984
Ending Cash Balance: (15,000) (16,444) (17,135) (17,448) (16,629) (13,359) (6,695) 1,289 9,274 17,258 644,144

Projected Return on Investment: 4.69% 18.74% 38.20% 45.76% 45.76% 45.76% 389.65%

The orchard is laid out in rectangular blocks of 9.998 acres (4.05 hectares), each surrounded by a local access road. These blocks are subdivided into eight “acre plots” or four “hectare plots”. When we refer to “acre plots”, we are referring to standard plots that measure 1.249 acres (54,438 sq. ft.) or irregular-shaped plots that
differ in size, but contain 143 walnut trees (±2 trees) planted in 5 m. x 7 m. rows (16.9 ft x 22.96 ft). When we refer to “hectare plots”, we are referring to standard plots that measure 1.0115 hectares (10,115 m2) or irregular-shaped plots that may differ slightly in size, but contain 285 walnut trees (±4 trees) planted in 5 m. x 7 m. rows.

Our analysis includes predictions, estimates or other information that should be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not
to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. We
have attempted to present some risk factors relating to our business that may affect our predictions. You should also review our website at ChandlerOrchards.com/risks/ for a more complete discussion of these and other risks.
PROJECTED INVESTMENT CASH FLOWS
Neutral Yield Scenario: This is a projection for a new walnut plantation in Mendoza, Argentina made by Leandro Moreno, the agronomist
that supervises our orchard. It represents his estimate of the yields that should be obtained according to the local
techniques and practices. No losses due to severe weather events such as frost or hail are contemplated in this
scenario.
Pessimistic Price Scenario: This is a future price estimate that assumes a 1-standard deviation decrease in the inflation-adjusted FOB in-shell
price for Southern Cone walnut exports over the coming decades.
Other Assumptions: We assume (1) annual orchard expenses will remain stable over time, (2) we receive the FOB price when exporting.

Year by Year Projected Cash Flows (Per Acre Plot)


Imperial Units Year: 1 2 3 4 5 6 7 8 9 10+ 80

Operating Activities

Yield: Pounds per acre plot: Neutral Yields 441 661 1,323 2,756 4,740 5,512 5,512 5,512 5,512
Walnut Price: $ per lb. (FOB, in-shell): Pessimistic Prices $1.35 $1.35 $1.35 $1.35 $1.35 $1.35 $1.35 $1.35 $1.35

Gross Sales: 596 894 1,788 3,725 6,407 7,450 7,450 7,450 7,450
5% Management Fee: (30) (45) (89) (186) (320) (373) (373) (373) (373)
Annual Orchard Expenses: (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444)
Net Cash Flows From Operations: (1,444) (878) (595) 254 2,094 4,642 5,633 5,633 5,633 5,633

Investment Activities

Initial Investment (15,000)


Sold For Timber & Residual Land Value 60,000
Net Cash Flows From Investments: (15,000) 60,000

Opening Cash Balance: 0 (15,000) (16,444) (17,323) (17,918) (17,664) (15,569) (10,927) (5,294) 339 400,286
Net Cash Flows For The Year: (15,000) (1,444) (878) (595) 254 2,094 4,642 5,633 5,633 5,633 65,633
Ending Cash Balance: (15,000) (16,444) (17,323) (17,918) (17,664) (15,569) (10,927) (5,294) 339 5,972 465,920

Projected Return on Investment: 1.42% 11.69% 25.91% 31.44% 31.44% 31.44% 366.30%

The orchard is laid out in rectangular blocks of 9.998 acres (4.05 hectares), each surrounded by a local access road. These blocks are subdivided into eight “acre plots” or four “hectare plots”. When we refer to “acre plots”, we are referring to standard plots that measure 1.249 acres (54,438 sq. ft.) or irregular-shaped plots that
differ in size, but contain 143 walnut trees (±2 trees) planted in 5 m. x 7 m. rows (16.9 ft x 22.96 ft). When we refer to “hectare plots”, we are referring to standard plots that measure 1.0115 hectares (10,115 m2) or irregular-shaped plots that may differ slightly in size, but contain 285 walnut trees (±4 trees) planted in 5 m. x 7 m. rows.

Our analysis includes predictions, estimates or other information that should be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not
to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. We
have attempted to present some risk factors relating to our business that may affect our predictions. You should also review our website at ChandlerOrchards.com/risks/ for a more complete discussion of these and other risks.
PROJECTED INVESTMENT CASH FLOWS
Pessimistic Yield Scenario: This is a pessimistic scenario that takes into account two extreme climate events: (1) a once in hundred years
“winter kill” frost event in the first year of the plantation, resulting in a 70% loss of trees and (2) a severe hailstorm
and deadly autumn frost in the 4th year which necessitates the removal of the Chandler scion in 30% of the trees.
The damaged scions are removed from the rootstock and field grafts are performed on the 4-year old rootstocks.
Optimistic Price Scenario: This is a future price estimate that assumes a 1-standard deviation increase in the inflation-adjusted FOB in-shell
price for Southern Cone walnut exports over the coming decades.
Other Assumptions: We assume (1) annual orchard expenses will remain stable over time, (2) we receive the FOB price when exporting.

Year by Year Projected Cash Flows (Per Acre Plot)


Imperial Units Year: 1 2 3 4 5 6 7 8 9 10+ 80

Operating Activities

Yield: Pounds per acre plot: Pessimistic Yields 1 11 55 220 1,102 3,307 5,512 5,512
Walnut Price: $ per lb. (FOB, in-shell): Optimistic Prices $2.25 $2.25 $2.25 $2.25 $2.25 $2.25 $2.25 $2.25 $2.25

Gross Sales: 0 2 25 124 496 2,480 7,440 12,400 12,400


5% Management Fee: 0 (0) (1) (6) (25) (124) (372) (620) (620)
Annual Orchard Expenses: (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444)
Net Cash Flows From Operations: (1,444) (1,444) (1,442) (1,421) (1,327) (973) 912 5,624 10,336 10,336

Investment Activities

Initial Investment (15,000)


Sold For Timber & Residual Land Value 60,000
Net Cash Flows From Investments: (15,000) 60,000

Opening Cash Balance: 0 (15,000) (16,444) (17,889) (19,331) (20,752) (22,078) (23,052) (22,140) (16,517) 717,308
Net Cash Flows For The Year: (15,000) (1,444) (1,444) (1,442) (1,421) (1,327) (973) 912 5,624 10,336 70,336
Ending Cash Balance: (15,000) (16,444) (17,889) (19,331) (20,752) (22,078) (23,052) (22,140) (16,517) (6,181) 787,644

Projected Return on Investment: 3.95% 24.40% 44.84% 305.12%

The orchard is laid out in rectangular blocks of 9.998 acres (4.05 hectares), each surrounded by a local access road. These blocks are subdivided into eight “acre plots” or four “hectare plots”. When we refer to “acre plots”, we are referring to standard plots that measure 1.249 acres (54,438 sq. ft.) or irregular-shaped plots that
differ in size, but contain 143 walnut trees (±2 trees) planted in 5 m. x 7 m. rows (16.9 ft x 22.96 ft). When we refer to “hectare plots”, we are referring to standard plots that measure 1.0115 hectares (10,115 m2) or irregular-shaped plots that may differ slightly in size, but contain 285 walnut trees (±4 trees) planted in 5 m. x 7 m. rows.

Our analysis includes predictions, estimates or other information that should be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not
to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. We
have attempted to present some risk factors relating to our business that may affect our predictions. You should also review our website at ChandlerOrchards.com/risks/ for a more complete discussion of these and other risks.
PROJECTED INVESTMENT CASH FLOWS
Pessimistic Yield Scenario: This is a pessimistic scenario that takes into account two extreme climate events: (1) a once in hundred years
“winter kill” frost event in the first year of the plantation, resulting in a 70% loss of trees and (2) a severe hailstorm
and deadly autumn frost in the 4th year which necessitates the removal of the Chandler scion in 30% of the trees.
The damaged scions are removed from the rootstock and field grafts are performed on the 4-year old rootstocks.
Neutral Price Scenario: This is a future price estimate based on the inflation-adjusted FOB in-shell price for Southern Cone walnut exports
over the last two decades. It assumes future walnut prices will remain the same as historical averages.
Other Assumptions: We assume (1) annual orchard expenses will remain stable over time, (2) we receive the FOB price when exporting.

Year by Year Projected Cash Flows (Per Acre Plot)


Imperial Units Year: 1 2 3 4 5 6 7 8 9 10+ 80

Operating Activities

Yield: Pounds per acre plot: Pessimistic Yields 1 11 55 220 1,102 3,307 5,512 5,512
Walnut Price: $ per lb. (FOB, in-shell): Neutral Prices $1.80 $1.80 $1.80 $1.80 $1.80 $1.80 $1.80 $1.80 $1.80

Gross Sales: 0 2 20 99 397 1,985 5,955 9,925 9,925


5% Management Fee: 0 (0) (1) (5) (20) (99) (298) (496) (496)
Annual Orchard Expenses: (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444)
Net Cash Flows From Operations: (1,444) (1,444) (1,443) (1,426) (1,350) (1,067) 441 4,213 7,984 7,984

Investment Activities

Initial Investment (15,000)


Sold For Timber & Residual Land Value 60,000
Net Cash Flows From Investments: (15,000) 60,000

Opening Cash Balance: 0 (15,000) (16,444) (17,889) (19,331) (20,757) (22,107) (23,174) (22,733) (18,520) 548,366
Net Cash Flows For The Year: (15,000) (1,444) (1,444) (1,443) (1,426) (1,350) (1,067) 441 4,213 7,984 67,984
Ending Cash Balance: (15,000) (16,444) (17,889) (19,331) (20,757) (22,107) (23,174) (22,733) (18,520) (10,536) 616,350

Projected Return on Investment: 1.90% 18.18% 34.45% 293.36%

The orchard is laid out in rectangular blocks of 9.998 acres (4.05 hectares), each surrounded by a local access road. These blocks are subdivided into eight “acre plots” or four “hectare plots”. When we refer to “acre plots”, we are referring to standard plots that measure 1.249 acres (54,438 sq. ft.) or irregular-shaped plots that
differ in size, but contain 143 walnut trees (±2 trees) planted in 5 m. x 7 m. rows (16.9 ft x 22.96 ft). When we refer to “hectare plots”, we are referring to standard plots that measure 1.0115 hectares (10,115 m2) or irregular-shaped plots that may differ slightly in size, but contain 285 walnut trees (±4 trees) planted in 5 m. x 7 m. rows.

Our analysis includes predictions, estimates or other information that should be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not
to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. We
have attempted to present some risk factors relating to our business that may affect our predictions. You should also review our website at ChandlerOrchards.com/risks/ for a more complete discussion of these and other risks.
PROJECTED INVESTMENT CASH FLOWS
Pessimistic Yield Scenario: This is a pessimistic scenario that takes into account two extreme climate events: (1) a once in hundred years
“winter kill” frost event in the first year of the plantation, resulting in a 70% loss of trees and (2) a severe hailstorm
and deadly autumn frost in the 4th year which necessitates the removal of the Chandler scion in 30% of the trees.
The damaged scions are removed from the rootstock and field grafts are performed on the 4-year old rootstocks.
Pessimistic Price Scenario: This is a future price estimate that assumes a 1-standard deviation decrease in the inflation-adjusted FOB in-shell
price for Southern Cone walnut exports over the coming decades.
Other Assumptions: We assume (1) annual orchard expenses will remain stable over time, (2) we receive the FOB price when exporting.

Year by Year Projected Cash Flows (Per Acre Plot)


Imperial Units Year: 1 2 3 4 5 6 7 8 9 10+ 80

Operating Activities

Yield: Pounds per acre plot: Pessimistic Yields 1 11 55 220 1,102 3,307 5,512 5,512
Walnut Price: $ per lb. (FOB, in-shell): Pessimistic Prices $1.35 $1.35 $1.35 $1.35 $1.35 $1.35 $1.35 $1.35 $1.35

Gross Sales: 0 1 15 75 298 1,490 4,470 7,450 7,450


5% Management Fee: 0 (0) (1) (4) (15) (75) (224) (373) (373)
Annual Orchard Expenses: (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444) (1,444)
Net Cash Flows From Operations: (1,444) (1,444) (1,443) (1,430) (1,374) (1,161) (29) 2,802 5,633 5,633

Investment Activities

Initial Investment (15,000)


Sold For Timber & Residual Land Value 60,000
Net Cash Flows From Investments: (15,000) 60,000

Opening Cash Balance: 0 (15,000) (16,444) (17,889) (19,332) (20,762) (22,136) (23,297) (23,326) (20,524) 379,423
Net Cash Flows For The Year: (15,000) (1,444) (1,444) (1,443) (1,430) (1,374) (1,161) (29) 2,802 5,633 65,633
Ending Cash Balance: (15,000) (16,444) (17,889) (19,332) (20,762) (22,136) (23,297) (23,326) (20,524) (14,891) 445,056

Projected Return on Investment: 12.01% 24.15% 281.37%

The orchard is laid out in rectangular blocks of 9.998 acres (4.05 hectares), each surrounded by a local access road. These blocks are subdivided into eight “acre plots” or four “hectare plots”. When we refer to “acre plots”, we are referring to standard plots that measure 1.249 acres (54,438 sq. ft.) or irregular-shaped plots that
differ in size, but contain 143 walnut trees (±2 trees) planted in 5 m. x 7 m. rows (16.9 ft x 22.96 ft). When we refer to “hectare plots”, we are referring to standard plots that measure 1.0115 hectares (10,115 m2) or irregular-shaped plots that may differ slightly in size, but contain 285 walnut trees (±4 trees) planted in 5 m. x 7 m. rows.

Our analysis includes predictions, estimates or other information that should be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not
to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. We
have attempted to present some risk factors relating to our business that may affect our predictions. You should also review our website at ChandlerOrchards.com/risks/ for a more complete discussion of these and other risks.