Key Project Details/Benefits

1. ULF is uniquely positioned to supply biogas inputs 30 biogas plants at ULF sites across Ukraine + 197 MW of Electricity or 400 million of methane = + 1,333,000 tons of poultry manure /yr 98,000 Hectares of Corn stalks Europe’s Largest BioGas Project Carbon Credit Impact • Reduction of CO2 (primarily by removing the methane generated by the chicken manure) and other harmful substances are inherent by-products of this project. At full capacity, the project will also remove 4.3m tons of CO2 per year under the Joint-Implementation programe from Kyoto Protocol (today’s price per ton trades in the range of EUR 6-7); • Constructing a network of biogas plants in Ukraineto generate electricity and heat energy to leverage energy market for “green tariffs; • Project consists of 30 total sites based on existing ULF poultry farms, livestock farms and sugar plants (two demonstration sites based on poultry farms are already under construction). • The overall project will require EUR 884 mm in Capex over 4 -5years • The Company will invest 150mm of its own funds over 3-4 years. Key Project Details/Benefits Financing Sources • Project Benefits: • 197 Megawatts of electricity • 212 MW of thermal capacity • At full capacity, 4.3mm tons of carbon reduced per year which At today’s prices of $6/ton, = $25.8m of revenue from Carbon credits per year • Organic fertilizer in the amount of 260,000 tons per year derived from biogas production, can be fully delivered to Poland or the Middle East; • Important Political/Societal benefits • 1) Received biogas can be fully delivered in Poland (by liquefaction, compression, substitution); • 2) Introduction of innovative technologies; • 3) Establishment of international and business-to-business links; • Important Benefits for Europe/Germany • The equipment for this project is expected to come from German suppliers including MT, Envitec, Biogas Nord, Verbio AG, Stulz E+H Gruppe (already working with the company on this project), UTS Biogastechnik • Likely Source of financing: • Direct funding from the EBRD and other European institutions; • ECA-covered Loans from national & international banks; • Additional Alternatives • Loans from international environmental funds (UKEEP, NEFCO, venture capital funds and others); • Funding by the Global Environment Facility GEF – UNDP and or World Bank; • Subsidies from the European Union (requires the participation of partners from the EU); • Involvement of local budgets (creating of clusters); • Co-financing under share holding manufacturers of equipment for biogas plants. Green Tariffs & Revenue Sources • Primary Revenue Sources: Electricity Sales under a green tariff: • Green tariff from biomass is 1.3446*1.2(VAT)=1.61 UAH/kW=0,152 Euro/kW • Normal tariff is 0.8762 *1.2 = 1.05 UAH/kW = 0.099 Euro/kW • (http://www.nerc.gov.ua/) • This project’s electricity will be produced preliminary with the following proportions: 1 ton of manure (which is not a biomass under Ukraine law and not subject to the green tariff) plus 2.64 tons of maize silage (electricity from which can be sold by green tariff). Thus 27.5% of the electricity produced will be sold by 0.099 Euros and 72.5 % will be sold by the 0.152 Euros for a weighted-average tariff of 0.14 Euros. • Additional revenue from the sale of emission reduction units; • Additional revenues from the sale of organic fertilizers and thermal energy; • Additional revenues from the sale of products from greenhouses which will use the thermal energy • Additional revenues from the sale of compressed natural gas (petrol, natural gas for household and domestic purposes); Risks • 1) Natural gas subsidies for residential & utilities create economic barrier for biogas usage in these sectors • 2) Current “green tariff” legislation blocks the biogas technology implementation in full speed & capacity • 3) Absence of state program for biogas technology implementation (Government support is needed. Current preferential support is given to wind & solar) • 4) Power grids modernization required • 5) High cost of funding and interest rates Project Model & Payback Period

2. UkrLandFarming PLC Background • #1 land bank - 508 thsha under management plus 1,061ths tons storage capacity • #2 sugar producer - 6 sugar plants plus 252 ths tons of sugar produced plus 40 thstons storage capacity • #1 seed producer- 6 seed plants, 655 tons in wheat equiv. per day • #1 distributor of agricultural inputs- 43 distribution centers and 10 sugar distribution locations (revenue of dist division $253.1 mln) • #1 cattle headcount and leather producer - Cattle livestock of 63.8 ths heads, 19 meat plants, production meat capacity 535,6 tons per shift, 2 leather plants, 342 thsm2 of leather produced • Avangard (22% listed on London Stock Exchange (LSE) • #1 egg company in Europe and #2 egg company in the world • Vertically integrated business model of 19 poultry farms for laying hens, 3 breeder farms, 9 grow-out farms, 6 fodder mills, 3 storage facilities and an egg processing plant Technology in Detail (example – source: MorsoBioenergi)