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CONFIDENTIAL DISCUSSION PAPER. DO NOT DISTRIBUTE WITHOUT EXPRESS WRITTEN PERMISSION OF GREENWOOD RESOURCES

A Resource That Lasts Forever™

FRA Fall Meeting Bruce Summers Harvest Manager Greenwood Resources

September 26, 2012

Boardman Tree Farm Greenwood Tree Farm Fund


Greenwood Tree Farm Fund L.P.

• A Private Equity Fund

• Greenwood Resources

• Manages the Fund and the LCTF and BTF

• Collins Management Company

• Manages the Upper Columbia Sawmill and sells Pacific Albus lumber

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CONFIDENTIAL DISCUSSION PAPER. DO NOT DISTRIBUTE WITHOUT EXPRESS WRITTEN PERMISSION OF GREENWOOD RESOURCES 3

GreenWood Resources Global Investment and Asset Management Company for

Plantation Forestry and Dedicated Biomass

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• Founded in 1998 and “dedicated to the innovative development and management of sustainable short rotation high yield tree farms and their products”.

• Vertically integrated company executing on a global platform:

• Strong investment management experience and systems.

• Leadership in creating higher returns by deploying improved plant material developed through GWR’s program of continuous tree improvement

• Uniform systems (financial, forestry, etc) for plantation management to improve investment returns and reduce implementation risk.

• US $350 million under management


GreenWood Resources: Areas of Focus

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Desert environment Advanced irrigation Technology 20 GT ac/yr

GTFF Boardman Tree Farm Columbia River Basin: 23,500 Acres


Historical Summary

• 1990-1992- Boise and Potlatch purchased property

• 24,800 acres

• 1990-1999-Pulp log management

• 2000-Began saw log management

• thinning, pruning, new clones

• 2000-Began harvesting pulp plantations

• 2005-Chip Mill and Log Merchandiser

• 2007-GreenWood Tree Farm Fund purchased farms

• 2008-Sawmill Constructed

• 2013-Future Veneer mill Construction


Columbia River Water Intake

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• Pump 222,500 gal/min

• Total of 38,000 hp

• 560 miles buried pipe


Filter System

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Water Distribution Manifold

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Drip Irrigation System

• 19,028 miles of drip tube

• 26,841,278 emitters


Genetics Tree Improvement Program

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• GWR commitment to long term tree improvement since 1988 to maximize genetic gain in those traits of highest economic importance

• GWR’s efforts have resulted in significant volume growth improvement

• Combination of GWR’s elite varieties and management expertise adds significant value

• Recognized globally as a leader in poplar tree improvement


Production

Pulp Logs

Biomass

Saw Logs


Saw/Veneer Log Production

Spacing

145-290 trees/acre

Planting Stock

1 or 2 year old pole

Pruning

Multiple pruning

entries


Saw Log Harvest


Pulp Log Production

Spacing

600 Trees/acre

Planting Stock

Non-rooted sticks

Harvest

Cut/Bunch

Skid/Load

Haul to stationary

chipper


Biomass Production

Spacing

1,100-2,200 Trees/acre

Planting Stock

Non-rooted stick

Harvest

Modified forage harvester to cut & chip

1st cut at 2 years

additional harvest of coppice

at 2 or 3 year increments


Manufacturing

Lumber Chips

Veneer


Biomass Production Greenwood Resources Vision

• Leverage our expertise in genetic tree improvement, plantation management, and harvesting of short rotation woody crops to create the highest quality feedstock for the global biomass industry.

• Focus is on biomass production at a scale and price that will make poplar competitive with other energy crops and ultimately traditional fossil fuels.

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GreenWood Resources Biomass Strategy

Objective: Promote poplar from dedicated energy tree farms as the feedstock of choice for CHP and second generation liquid fuels

• Production Systems

• Silvicultural techniques for multiple coppice cycle rotations – planting density, cultural treatments, cycle length

• Equipment automation – planting, cultivation, and harvesting

• Feedstock Quality

• Utilizing poplar genomics to drive breeding

• Screening tools for high wood density, favorable wood chemistry for liquid fuel conversion


Wood Chemistry and Quality

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• GWR is a leading researcher in the field of biofuels development

• Traditional breeding to modify the composition and quality of the feedstock for energy (electrical and liquid fuels) conversion

• Developing rapid assessment technologies for lignin and cellulose

• Improving and quantifying the carbon sequestration value

• Completed regional trials for adaptability and commercialization of bioenergy tree farms; currently analyzing yield and cost data


Productivity

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CONFIDENTIAL DISCUSSION PAPER. DO NOT DISTRIBUTE WITHOUT EXPRESS WRITTEN PERMISSION OF GREENWOOD RESOURCES 25 25


China

Biomass

CONFIDENTIAL DISCUSSION PAPER. DO NOT DISTRIBUTE WITHOUT EXPRESS WRITTEN PERMISSION OF GREENWOOD RESOURCES 28 28


Why Woody Biomass?

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• Cellulosic feedstock lowest cost sugar

• Feedstock typically >50% of operating cost

• High yield sugar conversion matters

Sugar Cost

Raw Material Price

$/Pound $/Bbl

Ethanol

Corn (C6) $7.60/bushel $0.16 $94

Sugarcane (C6) $25/ton $0.09 $55

Cellulosic (C5 &

C6) $60/BDT

$0.04 $18

Why Sugar Cost and Yield Matter


High Yield / High Density

Low Price Volatility / LT Contract

Resource Availability

Ability to Aggregate Additional Land

Working (JIT) Harvesting Method

Non-GMO Short Cycle Perennial

Store on the stump

Economics

Environment

Social

Biomass Plantation

Benefits


• Boardman, Oregon, Port of Morrow

• Co-located within a few miles of GreenWood Resources existing poplar plantation

• Barge, rail and truck transportation

• State and federal support

Executing on Deployment Zeachem Demonstration Plant

Schematic of future facility


Zeachem Technology

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Biomass Production Focused Research and Development Initiatives

Agriculture Food and Research Initiative

• System for Advanced Biofuels Production from Woody Biomass in the Pacific Northwest

• GWR-Feedstock Team Lead for development of Phase 1 demonstration plantings

Northwest Aviation Renewable Alliance

• A holistic approach to building a supply chain for aviation biofuel with the goal of increasing efficiency from forestry operations to conversion processes.

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BCAP Project Area

Boardman Tree Farm

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Greenwood Tree Farm Fund has been selected as a BCAP Project area for the purpose of growing hybrid poplar as a intercrop species on 7,000 acres of the GTFF Boardman Tree Farm. Chips will be harvested using modified Forage Harvesters and delivered to Zeachem Boardman facility for conversion to liquid fuel.


Thank You

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