ENVALOR LIMITADE Project: Ethanol / Electricity Co-generation Plant Mozambique, Manica Province

1. ENVALOR LIMITADEProject: Ethanol / Electricity Co-generation PlantMozambique, Manica Province November 5, 2009

2. Envalor Limitade • A Company Formed in Mozambique • Focus - Infrastructure Development Project: • Fuel Grade Ethanol plant - 150 Million Litres • Electricity generation plant - 32 MW/h • 25000 ha of Cultivated land (Sugar Cane, Dry Beans) • Estimated Project Cost: US$ 330 Million

3. Lead Developer - InfraCo • Focus: Infrastructure Project Development that promotes Sustainable Socio-Economic Growth; • Region: Sub-Saharan African Region; • Sectors: Energy, Transportation and Water; • Infraco has a number of projects underway in Africa: • Uganda - Multi Utility Project (Project Cost: US$ 40 Million); • Cape Verde - Wind Power (Project Cost|: EUR 55 Million); • Zambia - Irrigated Farm Development (Project Cost: US$ 25 Million); • Ghana - Gas Fired Power Plant (Project Cost: US$ 300 Million); • Mozambique - InfraCo is playing a lead role in developing an “investment blueprint” for the Beira Agricultural Growth Corridor (BAGC); Infraco is working with Casachron to carry out this project.

4. Project Scope • Produce 150 Million Litres of anhydrous fuel grade Ethanol • Sugar cane (Primary feedstock); • Sweet Sorghum (Secondary feedstock); • Sold to the export market with availability to the domestic market; • Produce 32 MW/h Electricity (Bagasse) • An estimated 22MW/h used by the plant and the excess exported to the national grid; • Food production • The production of 10 000 tonnes per annum of dry beans is planned; • Agriculture • To deliver feedstock to the plant and produce food, approximately 25000 ha of cultivated land will be developed; 4

5. Product Ethanol Production - 150 Million Liters per annum • Biochemical process from Sugar cane juice or molasses; Product Demand • There is a global annual increasing demand for ethanol as a vehicle fuel, which has been concluded as an excellent energy alternative to oil; • The EU is anticipated to face an ethanol deficit of up to 7.5 Billion Liters per annum by year 2020; • It is envisioned that a considerable volume of this Ethanol could come from Africa; Ethanol Plants – Colombia, Brazil 5

6. Product Electricity Production - Bagasse > Boiler / Steam / Electrical Power - 32MW/h • We plan to use a high pressure bagasse - fired boilers/steam system to generate electricity; • 22 MW/h is estimated to be used by the plant; • 10MW/h is estimated to be tapped off to the national grid; • Bagasse is considered renewable and environmentally neutral; Boiler / Turbine Bagasse Power Lines - fairly close to site 6

7. Product Agriculture • Food Production – Soya Beans considered (Protein) • Based on Mozambique’s food needs • Sugar cane and Sweet sorghum production 7

8. Project Goals • A cost effective commercially viable operation; • Environmentally - non-invasive; • A quality product delivered - Fuel Grade Ethanol for the export market with availability to the local market, Electricity, Food; • Environmentally friendly electricity generation - excess for local market; • Food production and fuel security for the host country Mozambique; • Through an estimated 1800 Jobs created, an improved standard of living for the residents in the area and a considerable impact to the economy; • Transfer of skills to previously disadvantaged communities; • A new market for farmers, jobs and social and health care services; • The project is focused on complying with the requirements as set out in the “political and strategic framework for biofuels of Mozambique”; 8

9. Mozambique’s Needs • This project is intent on complying with all of the requirements as outlined by the Mozambique Government, which are broadly: • Significant project participation by the local community and Mozambique in general; • The local community to be respected; • Food to be produced; • Mozambique to have first rights to Ethanol at market prices; The Mozambique Government has confirmed its commitment to the bio-fuel program 9

10. Environment & Social • Strict Compliance - Through execution there will be strict compliance with World Bank / IFC and Mozambique (MICOA) environmental and social standards; • Environmentally positive - Ethanol and electricity production using sugar cane and sweet sorghum as the feedstock will be positive on the environment; • Infrastructure - In a controlled fashion to insure effective execution, the project proposes to allocate funding for housing and relocation for the local community; • Employment - It is anticipated the operation will employ approximately 1800 People; 10

11. Business Case • A preliminary financial model, with assumptions, represents the project as financially feasible; • US$ 330 Million is the estimated turnkey cost of developing: • 25000 ha Cultivated Land; • 150 Million Litre Anhydrous Ethanol Plant; • 32 MW/h Electricity Generation Plant; • The cost of the project will be confirmed when assumptions and additional cost variables have been qualified. 11

12. Assumptions • Agricultural Assumptions - • Water (volumes and cost of sourcing); • Soil type and quality across site; • Feedstock yield - general agricultural variables; • Technical Assumptions - cost and volumes of product produced; • Environmental and Social Assumptions - useable area ; • Logistics Assumptions - Haulage and transportation costs; • Legal and Regulatory Assumptions. 12

13. Site Selection And Location Why This Site? A high-level evaluation has been executed on this site which confirms the following: • Good indicative potential for the required water volumes and costs to source water; • Good indication of the required soil types and soil quality across the site; • Indicated to be environmentally and socially manageable; • Good road infrastructure to Beira for distribution of product; • Access to electricity transmission lines - fairly close to the site; • Identified to be available (No concession held on the site). 13

14. Development Process 14

15. Next Steps Fatal Flaw Analysis • Provincial Authorities endorsement of the project and the use of the land identified for the project; • Formal application for the land; • Environmental and social assessment pre-scoping; • Detailed assessment of soils, water and irrigation; Begin Development Phase 15