June 30, 2011

1. PRT Forest Regeneration Income Fund Corporate & Investor Update June 30, 2011

2. Corporate and Investor Update Outline • Recent performance and current state of our industry • Industry outlook • Key strategies for growth

3. Corporate and Investor Update Current Industry Status • Downturn started in 2006 with US housing downturn/credit crisis/economic recession • Canadian Forest Industry is highly dependent on US market • Stronger CA$, low commodity prices, softwood lumber tariffs….. • China has been increasingly buying wood fiber from western North America

4. Corporate and Investor Update The worst housing recession in over 50 years…….

5. Corporate and Investor Update The effects on our business were severe

6. Corporate and Investor Update We stayed focussed, and adapted to maximize our opportunities

7. Corporate and Investor Update Everyone chipped in • Supervisors, managers, executives and directors took wage cuts from 2 to 15% • Union members gave wage concessions • Adjustments made to non-union wage scales • Distributions were suspended to Unitholders And more

8. Corporate and Investor Update Some Key Achievements • Achieved record contract delivery reliability • Heightened focus on continuous improvement - improved KPI’s • Product development achievements • Outdoor grown spruce • Container grown bareroot replacement seedling • Lower cost stock sizes • Successful Cranberry & Willow plant propagation • Numerous process improvement achievements • Successfully defended & increased market share • Achieved increased volume from new markets • Strengthened relationships with key partners for new market development (CellFor/Rutgers/SUNY/Willow Biomass Group) • Developed new decision support systems • Established new credit lines to fund growth

9. Corporate and Investor Update Balance Sheet Strong • Suspension of distributions provided us the flexibility to fund capex and restructuring costs • An unfortunate snow loss provided us with a significant cash insurance settlement • The proceeds gave us the opportunity to retire most of our term debt, shore up working capital and fund future capex

10. Corporate and Investor Update And the results of our efforts showed

11. Corporate and Investor Update The Outlook is improving…but not from the usual sources • Housing starts • US double dip? • Canada recovered • China exports increasing • Improved Forest Industry profitability on higher lumber and pulp prices & cost reduction efforts • Addressing deferrals • Fires & MPB?

12. Corporate and Investor Update Housing Markets Source: RISI

13. Corporate and Investor Update Canada recovered, but relatively small Source: RISI

14. Corporate and Investor Update China: Softwood Log Imports

15. Corporate and Investor Update China’s lumber imports are soaringCanada has overtaken Russia

16. Corporate and Investor Update

17. Corporate and Investor Update Risks to the outlook • Chinese market share/global competition • Cost of logs is high • Russia expected to lower their export tariff • Speed of the US housing market recovery • US currency weakness

18. Corporate and Investor Update Challenges we still face • Short Term - Low seedling prices • Mid Term - More volatility in harvest (and silviculture) • Long Term - MPB effect - BC reduction in AAC

19. Corporate and Investor Update StrategyLever off Our Strengths Reliable plant propagation and cost effective production of high volume orders, grown in multiple locations over a wide geographic area

20. Corporate and Investor Update Our Goal To provide highly reliable seedling propagation services for forestry and other customers, throughout North America Our mission is to provide the most trusted growing services, best suited to the needs of our customers “Trusted to Grow”

21. Corporate and Investor Update Our Responsibility to our Shareholders • Our business strategy provides a path to recover value lost since the announcement of the Trust Tax in Oct 2006 due to the forestry downturn. • Earnings and cash flow will drive share value Trust Tax Announced

22. Corporate and Investor Update How Will We Do It? • Recovery in core forestry markets • “The future will not look like the past” NA Housing Trend Line

23. Corporate and Investor Update How Will We Do It? • Expansion of core forestry markets • Midwest USA • Northeast USA • Southeast USA • Canadian Maritime provinces • Value added environmentally focussed sales (Global Seedlings & PRT Promo)

24. Corporate and Investor Update How Will We Do It? • Energy Crops (Bionera) • Cutting sales • Plantation establishment • Consulting expertise • Growing Services for delivery of improved plant genetics • CellFor (specialized seedlings for forestry) • Cranberry starter plants • Starter plants for two or more new crops (yet to be identified)

25. Corporate and Investor Update The Intended Results • Growth in Revenue and cash flow will drive increases in shareholder value • New markets will create a more diversified company, increasing stability and lowering the impact of forestry market cycles

26. Corporate and Investor Update Summary • We have adapted for sustainability and future growth • Cyclical forestry downturn - excellent prospects for a significant recovery from today’s levels • Market expansion is possible in our core forestry business • We have identified new products which fit with our business and help achieve diversification • We will lead by emphasizing innovation in seedling products and continuous improvement in growing methods

27. Questions? Corporate and Investor Update June 30, 2011