SamoaFiber Bio Fuel Concepts

1. SamoaFiber Bio FuelConcepts March 2007

2. Introduction • Technology exists and is producing low cost alternative fuels from biomass. • To create a larger scale success, a low cost rapidly growing raw material is needed to supply this existing technology. • SamoaFiber is the catalyst necessary to transform technical successes into large scale supplies of bio-oil for energy and other uses. • The combination of SamoaFiber and Fast Pyrolysis produces a bio-oil that can either be used directly as a primary fuel or co-fired alongside coal, natural gas or oil in a power boiler.

3. Introduction Continued • $50 million is being sought to ramp-up the production of renewable SamoaFiber BioFuels (SFB). • SFB combines the use of a ligno cellulosic crop with fast pyrolysis processing to create the lowest cost, highest energy yield per hectare cellulosic crude available. • This cellulosic crude can be delivered to the rapidly growing energy, gasification, ethanol and chemical markets anywhere in the world. • Follow on rounds will be used for the installation of additional processing plants and plantations on a global basis to support the growing demand for alternative fuels.

4. SamoaFiber Features • SamoaFiber (SF ) ( Gynerium Sagitattum ), a member of the grass family grows in the wild in Peru and can be grown on plantations. • SF has the same energy characteristics as wood but SF produces 4 times more per hectare than does the fastest growing wood. • SF can produce 5,000 dry metric tons per year per square kilometer, which is up to 12 times more than other energy crops or agricultural waste material. • SF can be harvested year-round eliminating storage issues as is the case with agricultural crops. • SF does not require subsidies to be competitive with any other biofuel offerings.

5. SamoaFiber vs. Other Energy crops

6. Pucallpa/Iquitos Peru – Manaus Brazil .Iquitos, Peru Pucallpa, Peru

7. Upper Amazon Basin Upper Amazon Basin

8. Wild Growth in Peru Harvesting Wild SamoaFiber

9. 58,000 ha Operating Area

10. Meeting with President Garcia

11. Letter from Minister of Agriculture

12. Fast Pyrolysis Background • Fast Pyrolysis (FP) is uniquely suited to process very fast growing SF into a low cost cellulosic crude oil to supply the gasification market. • FP breaks down cellulose into useful carbon containing compounds in a very cost effective manner. • FP is a proven process that will extract a bio-oil from SF that has the same energy content as low grade coal. • Bio-oil has approximately the same consistency as crude oil and is easily transported via tank truck or large tanker ships. • FP units are relatively inexpensive and can be installed adjacent to SF plantations.

13. SF Fast Pyrolysis and Markets • Process heat Chemicals Gas Fast Pyrolysis Using SF Cellulosic Slurry Liquid (Cellulosic Slurry Gasification & Ethanol Industries Transport fuels Charcoal Power Pyrolysis heat Charcoal Sales

14. Technical Data

15. Air Emissions Characteristics • SOX Negligible • NOX 30% of fossil fuel • Heavy Metals Negligible

16. Bio Oil Market Dynamics • Mandated usage for Power generation: • EU- 12% by 2010 • US- varies by state…5-10% by 2015 • Mandated usage for Transportation fuels: • EU- 2% by 2005, 5.75% by 2010 ( total market 950 billion gallons, 3,600 billion liters) • US- 7.5 billion gallons by 2012, 30% of the market by 2030.

17. Market Penetration Strategy • Phase 1- Completed-Proof of Concept. • Phase 2- Market Bio-Oil to Power Plants, Gasifiers, and Ethanol Producers. • Phase 3- Produce fuels in biorefineries adjacent to SamoaFiber plantations between latitude 35 degrees North and 35 degrees South. • In Phase 3 SamoaFiber will be one of the world’s lowest cost producers of biofuels.

18. Sources & Uses Sources & Uses to Produce 200,000 TPY Bio-Oil Financing $50,000,000 Fast Pyrolysis Plant $41,500,000 Plantation Development 4,600,000 Working Capital 3,900,000 Total Uses $50,000,000

19. SamoaFiber Has Superior Economics to Tar Sands • 1 Unit of 200,000 metric tons per year bio-oil • SF BOE 1 621,484 • Plantation Cost $ 3,110,000 • FP Costs $ 1,839,125 • Production Cost $ 4,949,125 per BOE $7.96 • Plus SG&A 2 $ 4,269,250 per BOE $6.87 • Total Cash Cost/BOE $14.83 • Alberta Tar Sands 3 $35.00 1-barrel of crude oil energy equivalent 2-includes sales commission 3-Wikipedia

20. Bio-Oil Has Superior Economics to Other Renewable Oils Used Today Price/ Fuel Tonne BOE Palm Oil $506 $74.42 Soybean Oil $613 $90.54 SamoaFiber Oil $180 $57.93 Source: World Bank, Company analyses

21. Investment Considerations • LOI executed for output from 1st unit. • Using the Fast Pyrolysis system to produce bio-oil from SamoaFiber will result in a low cost renewable fuel. • SF bio-oil from a fast growing plant, using low cost land and labor makes the fuel very cost effective versus other renewable oils and most fossil fuels. • SF and FP solves the current problems associated with biomass fuels in terms of energy yield, consistent supply and transportation. • SamoaFiber bio-oil meets renewable fuel mandates. • SamoaFiber bio-oil has further downstream applications as a raw material for chemicals and transportation fuels.

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23. Fast Pyrolysis Schematic Gas to process Fast Pyrolysis Samoa Fiber Condenser Cooling Tower Heat Exchanger Air Oil to Market