STRICTLY PRIVATE & CONFIDENTIAL

next generation carbon sink

Investor Presentation
Rights Issue

5 June 2008

A subsidiary of C @ Limited ACN 110 439 686 ASX:CEO

Important Information

The information contained in this document and otherwise disclosed to you by C @ Limited (ABN 99 110 439 686), (“C@” or the “Company”) or Patersons
Securities Limited (ABN 69 008 896 311) prior to a public announcement must be kept strictly confidential. This document is intended for selected investors in
accordance with Section 708 of the Corporations Act 2001 (Cth). It does not constitute an offer to subscribe for or purchase securities in C @ Limited, or a
recommendation of such securities. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the
investment objectives, financial situation or needs of any particular investor. As referred to elsewhere in this document, C @ Limited proposes to undertake a pro
rata renounceable rights issue of securities, and intends to lodge a prospectus in relation to this issue with the Australian Securities and Investments Commission
on or about 6 June 2008. A copy of the prospectus may be obtained by contacting the company after this date, or by accessing the company's website
(www.cnow.com.au). Any person wishing to subscribe for securities should consider the prospectus in its entirety before deciding whether to apply, and will need
to complete the application form that will be in, or accompany, the prospectus.
In accordance with Section 1043A of the Corporations Act, the information may have a material effect on the price or value of C @ securities and may therefore
constitute “insider information” for the purposes of the Corporations Act.As an insider you must not (whether as principal or agent):
– Apply for, acquire or dispose of C @ Limited securities, or enter into an agreement to apply for, acquire or dispose of any such securities; or
– Procure another person to apply for, acquire or dispose of, or to enter into an agreement to apply for acquire or dispose of, any such securities.
Once in possession of this information you will be subject to the insider trading restrictions imposed by the Corporations Act and will, as noted above, be
prohibited from trading in C @ Limited securities and / or communicating the information to any other person who would be likely to subscribe for, purchase or
sell securities, or procure a third person to do the same until such date when this information has been made ”public” in terms of the requirements of the
Corporations Act. You must seek your own legal advice on your responsibilities under the Corporations Act. Patersons Securities Limited and C @ Limited do not
purport to represent the above comments as either advice or as a comprehensive description of these complex provisions.
Disclaimer: This document contains “forward looking statements” including estimates of future revenues, capital and funding requirements. Such forward looking
statements are made in good faith and are believed to have a reasonable basis. However, such forward looking statements are subject to risks, uncertainties and
other factors which could cause the actual results to differ materially from the future results expressed,
expressed projected or implied by the forward looking statements.
statements
The information contained in this document has not been independently verified. The information set out in this Presentation may be subject to updating,
revision, verification and amendment and such information may change materially. Neither C @ nor Patersons Securities Limited is under any obligation to update
or keep current the information contained in this Presentation and any opinion expressed in this Presentation is subject to change without notice. Although all
reasonable care has been taken to ensure that the information given in this Presentation is accurate, no representation or warranty, express or implied, is made as
to, and no reliance should be placed on, the accuracy or completeness of the information or opinions contained in this Presentation. To the maximum extent
permitted byy law,, none of C @,, Patersons Securities Limited nor anyy of its respective
p p affiliates,, advisers or representatives
p shall have anyy liabilityy whatsoever ((in
negligence or otherwise) for any loss whatsoever arising from any use of this Presentation or its contents, or otherwise arising in connection with this document..
This document is intended to provide background information only and does not purport to make any recommendation upon which you may reasonably rely
without taking further and more specific advice. Neither C @ Limited nor Patersons Securities Limited are under obligation to update any information contained in
this presentation. Potential investors are advised to seek appropriate independent advice, if necessary, to determine the suitability of this investment.
The Directors of Patersons Securities Limited advise that they and persons associated with them may have an interest in the above securities and that they may
earn brokerage,
brokerage commissions,
commissions fees and other benefits and advantages,
advantages whether pecuniary or not and whether direct or indirect,
indirect in connection with the making of
a recommendation or a dealing by a client in these securities, and which may reasonably be expected to be capable of having an influence in the making of any
recommendation, and that some or all of our Representatives may be remunerated wholly or partly by way of commission. Patersons Securities Limited will be
entitled to earn a fee as a result of the capital raising.

2
The project in a nutshell

CARBON DYNAMICS has designed a new way of capturing

carbon through olive and eucalyptus tree plantations. The
large scale permanent sequestration of carbon is underpinned
byy a viable and p
permanent agribusiness
g which also makes bulk
olive oil for human consumption and biomass for energy.

Large scale plantations will be established using low cost, cost

unirrigated land in rural Australia. There is no practical limit on
how big the collective size of plantations can be.
The project lends itself to innovative funding structures
including forward sale of carbon credits, debt and equity.

This project is unique and provides an opportunity to capitalise

on the convergence of emerging issues in climate change,
global food security and water scarcity.
scarcity

3
Highlights

• Unique next generation carbon sink tree plantation project
• Convergence of key drivers underpinning the project:
• Economic cost of CO2
• Water and food shortages
W df d h
• Requirement for climate change projects to be economically sustainable
• Several
Several major international investment banks currently reviewing models and project 
major international investment banks currently reviewing models and project
plans ‐ have expressed keen interest in participating
• Massive international growing markets for carbon and olive oil
• Low cost commodity producer of carbon credits and olive oil
• Combining traditional European methods with leading Australian farming technology
• Science verified, management team identified, first 9000Ha land parcel indentified, now 
just needs seed funding to option land and employ staff
• Target first project size 50,000Ha ($300M est cost) with min threshold 10,000Ha
Target first project size 50 000Ha ($300M est cost) with min threshold 10 000Ha

4
Key
y drivers have converged
g

Climate  Water 
Change Scarcity

Global Food Economic 
Shortage y
Sustainability 
of Solutions

5
Business model

Plantations Primary outputs Secondary outputs

Carbon sequestration 9 Carbon credits

9 Pelletized
P ll ti d bi
biomass ffeedstock
d t k

Olives 9 Carbon credits for renewable

energy generation

9 Olive oil
Biomass from
• Prunings 9 Pelletized biomass from
• Olive pomace pomace and seedcake
• Seedcake waste

Introduction to CARBON DYNAMICS 6

More about olive trees
trees, the main species

High value crop (fruit / olive oil)

Exceptional longevity – well over 100 years

T l
Tolerant of conditions in rural areas
t f diti i l

Produce olive fruit / oil, biomass from prunings and olive 
fruit waste
fruit waste

Traditional European dry land method being deployed 
g gy f g y,
but using latest Australian technology for high density, 
mechanically harvested trees

Not previously considered for carbon sequestration but 
strikes a balance between level of carbon sequestration 
and cash flow from primary produce

Ri
Rigorous scientific underpinning
i tifi d i i Ancient olive tree

CARBON DYNAMICS next generation carbon sink 7

The CARBON DYNAMICS approach to olive farming

LOW COST 

NATURAL SYSTEMS
NATURAL SYSTEMS

NO WATER IRRIGATION

FOCUS ON CARBON RATHER THAN OLIVE YIELD

VERY LARGE SCALE

CARBON DYNAMICS next generation carbon sink 8

Changing mix of outputs

Carbon credits start accumulating immediately
Biomass production commences in year 4 but remains a relatively small component of output
Olive oil revenues become substantial in year 6
Revenues continue over effective life of the asset (+100 years)
Revenues continue over effective life of the asset (+100 years)

Production mix over first 20 years

100%

90%

80%
Biomass
70%
Carbon Olive
60%
Credits oil
50%

40%

30%

20%

10%

0%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

CARBON DYNAMICS next generation carbon sink 9

Carbon provides up-front income stream

Bulk of carbon sequestered in first 10 years
Carbon may be forward sold to fund CAPEX
Project averages production of approx 1.2M CCs pa over first 10 years

* Based on a 50,000 hectare project, and certain price, species mix and land assumptions

CARBON DYNAMICS next generation carbon sink 10

Where carbon credits will be sold

Carbon has the potential to become the largest traded commodity in the world

Credits to be structured to comply with all current and proposed standards in Australia and 
internationallyy

Credits may be sold into voluntary and mandatory markets

CARBON DYNAMICS prefers to sell to major market facilitators, however, future projects 
may involve direct sales to emitters
i l di l i

markets 11
 Where olive oil will be sold

+$20B international market – established commodity
Little prospect of global supply exceeding global demand
Forecast to be lowest cost producer  (still high quality)
Bulk commodity sales (no branded consumer products)
Internal bulk commodity sales team will be appointed

CARBON DYNAMICS
Annual Global Production of Olive Oil Forecast Production of Olive Oil
billions of litres pa millions of litres pa
35
3.5 25.0

3.0 20.0

2.5 15.0

2.0
10.0
1.5
5.0
1.0
1998/9

1999/0

2000/1

2001/2

2002/3

2003/4

2004/5

2005/6

2006/7

2007/8
1990/91

1991/92

1992/93

1993/94

1994/95

1995/96

1996/97

1997/98

0.0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

markets 12
Where biomass will be sold

Current plans include sale of green unprocessed biomass

Potential for future addition of pelletising plant to value add

Potential buyers of pelletised biomass include:

z Nearby power generators

z Other domestic power generators
p g

z Offshore power generators

Particularly strong demand for green energy sources in Europe where demand exceeds 
supply. Australian biomass is already sold into European markets

markets 13
Achievements to date

9 Scientific viability of using olive and eucalyptus trees confirmed

9 Business model developed
9 Target scale of first project identified at 50,000 Ha, first 9000Ha identified
9 Key management and technical personnel identified and ready to join team
9 Advancing partnerships:
• Several international investment banks currently formulating proposals for project funding

• Global carbon certification and verification partners identified and ready

• Key suppliers and contractors identified and ready

• Global legal and business advisory partners identified and ready

• Land acquisition partner has already found first 9000Ha land parcel

9 Instruments to monetise future carbon credit production being developed

14
Funding strategy

Current stage (now):
Current stage (now):
Rights issue $1.13M
‐ Approx $0.7M to option first land parcel
‐ Balance to employ key management, working capital
Balance to employ key management working capital

Next stage (next 3
Next stage (next 3‐6
6 months):
months):
Possible equity issue to option additional land, finalise design and planning, 
employ operational staff and secure seedlings

Project funding (within 12 months):
Carbon pre sold via investment banking partner
Equity issue to fund CAPEX and OPEX
Small component of traditional debt funding for plant and equipment

financials 15
Potential future milestones

Expected 6 – 12 month milestones Current status

Appointment of international investment banking partner Candidates identified

Selection process underway

Appointment of key operations personnel Candidates identified and ready to commence

Appointment of project verification partner Partner identified

Technical advisory panel appointed Several members identified and ready

Appointment of tree supply vendor Vendor identified and ready

First land option executed Detailed regional selection work complete

Land acquisition team has commenced land search work

Bankable feasibility achieved Modeling and planning done

Verification underway

Project funding secured Discussions with potential investment banking partners have
commenced

Carbon pre sale and future off take established Design of instrument underway

16
 Offer summary

Renounceable Rights Issue On Issue Price $’s

1 new share for every 1 share held at record date Raised
Ordinary Shares on Issue 75,962,000
Issue price of 1.5 cents per share
Raising approx. $1,139,430  before costs Rights Issue Shares 75,962,000 $0.015 $1,139,430

Post Issue 151,924,000

Indicative Timetable
Consolidated Consolidated
Proforma  31 Mar 08 #
Proforma
Activity Date
Balance Sheet  ($’000) ($’000) Investor presentations 5 June

Announcement of renounceable rights 6 June

issue
Current Assets 1,118 2,099
Non Current Assets 64 64 Lodgement of Prospectus with ASIC 9 June
Intangible Assets - -
Ri ht ttrading
Rights di commences 13 JJune
Total Assets 1,182 2,163
Record date for determining entitlements 19 June

Current Liabilities 10 10
Rights trading ends 2 July
Total Liabilities 10 10
Closing date 9 July

Net Assets 1,172 2,153 Dispatch of holding statements 17 July

17
Q&A
Q: Isn’t this just another olive oil project?
No. The primary purpose is to create a new generation of carbon sink. One which sequesters lots of carbon that can be sold as carbon credits but also one 
that ultimately creates a long term agribusiness cash flow once the carbon has been captured. To do this the plantation will be created in a very different
that ultimately creates a long term agribusiness cash flow once the carbon has been captured. To do this the plantation will be created in a very different 
way to other plantations: no irrigation, natural pest control and fertilization, low cost land, very large scale, focus on carbon rather than olives.
Q: What’s the difference between this business and the other carbon sink tree plantation companies?
All other projects to date have relied on a net investment outflow with carbon as the only substantial potential future source of revenue. This project aims 
to create a viable long term agribusiness in which carbon plays a critical early role. The land will be owned not leased avoiding potential future problems 
with title and security. This will be the first time olive trees will be used for carbon capture. 
Q: How will the business funds its ultimate development if $300M is required over the first 5 years?
Up to half the ultimate project funding is expected to come from the innovative forward‐sale of carbon credits. This new kind of financial instrument will 
probably become more common as the global carbon market picks up scale. The balance of funding will come from more traditional equity and debt 
markets with the security of land assets and future cash flows supporting them Funding will be completed in stages in much the same way as most
markets with the security of land assets and future cash flows supporting them. Funding will be completed in stages in much the same way as most 
resources projects are funded.
Q: What will ensure the trees survive?
The project has a key focus on land selection, assessment and preparation. Because the trees will not be irrigated it is critical to select land with the 
appropriate rain profile, soil types, temperature ranges and wind patterns. These factors are not usually as important as irrigation and fertilizers 
compensate for poor land. The company already has leading expertise in all key technical areas.
Q: What happens if the company can’t fund the acquisition of land within the next year?
The carbon market is developing so rapidly that low cost sources of carbon sequestration are becoming highly sought after. This project represents a new 
breed of commercially viable carbon sinks and exposure is limited to land optioning costs in the first instance. 
Q: How can this project go ahead when the government hasn’t yet announced how the carbon trading scheme will work?
It has already become relatively clear that a cap and trade system is the option preferred by the government and that an emissions trading scheme will 
commence in Australia in 2010. In this instance emitters will rely on external supply of carbon sequestration to comply. Enough is known about the 
fundamentals of such schemes to make strong demand for carbon credits in Australia and abroad high.
Q: How can the company sell carbon credits when all its doing is planting trees?
Q: How can the company sell carbon credits when all its doing is planting trees?
The process of carbon sequestration (or capture and storage)  by trees is fundamental to the natural environment. CO2 is removed from the air by trees 
which in turn output oxygen and grow vegetative matter. A significant proportion of the tree structure both above and below ground is carbon.

18
Contacts

C @ Limited
@ Patersons Securities Limited
Andrew Konowalous ‐ Director Lead Manager and Underwriter
Phone (08) 9223 0500 Aaron Constantine – Executive Director
Email andrewk@carbondynamics.com.au Phone  (08) 9263 1111
Mobile 0417 990 334

Andrew Harrison ‐ Director Patersons Capital Partners

Phone ((08) 9223 0500
) Corporate Advisor
Email andrewh@carbondynamics.com.au David de Loub – Executive Director
Mobile 0415 324 359 Phone  (08) 9263 1111
Email DdeLoub@psl.com.au

19