Sale of Canadian Wood Engineering

Inc.

Based on German Technology and Know-How in Machine-Design and Machine-Building for Wood-

Engineering since 2003

What is the subject of the sale?

• Know how will be sold in the form of drawings for machineryand equipment.

• Further detailled advise and know how for the design, construction, installation and operation of wood crushingequipment for chipboard industry.

The market segment of chipboard industry

• The market for industrial chipboard production is verylucrative, so these types of machines from the relevant operators are in great demand.

• A turnover of 5 - 10 million EUR per year only with themachines is quite realistic.

• With spare parts can also be quite a sales volume ofapproximately 2 - 3 million EUR per year be achieved, depending on the market region in which the buyer operates.

The purchase price and the conditions of sale

• The selling price for both packages (equipment andconsumables) shall be:

EUR 1.5 Million• The two design blocks can also be purchased individually (not

exclusively bundled)• The packages have such a share in the selling price of 70/30• The construction of the sharpening machine is not included in

the above-mentioned selling price.

About Canadian Wood Engineering Inc.

• Canadian Wood Engineering Inc. (since 2003) focuses on the sale of engineered shop drawings and technical support for the manufacturing of optimized Pallmann machines worldwide.

• Machines include Strander and hydraulic Debarker for OSB panel production, Drum chipper, hammer mills, particleboard refiners, MDF and a variety of other wood machines.

• These machines manufactured in Europe have been running for over 10 years to the complete satisfaction of the clients.

About Canadian Wood Engineering Inc.

• For further information about machines and clients please consult our reference listing.

• We also sell and supply knife rings (OSB + Particleboard) and impellers, wear parts, woodworking as well as cutting tools Made in Europe at best prices.All manufacturing processes and final products are systematically inspected to:

Machines- OSB STRANDERS

Machines- Rotary Debarker

Machines- Drum Chippers

Machines- Innovative Knife Rings

Machines- Knife Refiners for chips

Rings & Impellers Rings for Oriented Stranded Board, Particleboard, MDF machines & impellers

• Front and back carrier rings• Carrier disks• Impellers

Machine PartsPrecision Parts & Knifes

Industrial KnivesPrecision Parts & Knifes

• Flaker Knives• Chipper Knives• Canter and Slabber Knives• Planer Knives, Profile Cutters and Serrated Back Knives• Veneer Knives• Shredder Knives• Granulator Knives• Circular Knives• Other Industrial Knives

Reference List - Machines• OSB Stranger WZLI 250

• Konospan L 1 x• Dieffenbacher D 1 x• Kronospan CZ 2 x• Kromospan Latvia l x•• Rotary debarker WRD 800 —2

• Kronostar Scharija RUS 2 x• Hombak D 1 x• Dieffenbacher D 1 x• Kronospan CZ 1 x

Reference List - Machines• Drum Chipper WHT• WHT 600• DIANA Forest RO 1 x• WHT 1600• I.V. I&E D fur Pelletieranlage RUS 1 x• ** USED FOR WOOD PELLET PRODUCTION• WHT 2000• Krono Omoloda UA 1 x• Krona Kharkov UA 1 x• WHT 2000 XL• Kronostar Scharija RUS I x• Hombak D lx• Kronospan Egorievsk RUS 1 x

Reference List – Machine Components• Knife rings, OSB Strander• Kronofrance Sully-sur-Loire F 1x• Kronoply Wittstock D 1x• Grant Forest Products Englehart CDN 4x• Kronopol Zary PL 1x

• Wood Chip flaker• KronoLviv Kamjanka Buzka UA 1x• Kronopol Zary PL 1x• Kronostar Scharjia RUS 2x• Folz Innovation Blieskastel D 1x• Egger St. Johann A 2x• Krono Osmoloda UA 1x• Sonae Novoboard ZA 4x• Egger Shuja RUS 2x• Kastamonu TR 2x• Gabrovnitsa BG 4x• Tafisa Canada PQ 2x

Reference List – Machine Components

• Heavy Load sifter for wood chip flakers and hammermills

• Kronopol Zary PL 2x• Kronostar Scharjia RUS 4x• KronoLviv Kamjanka Buzka UA 2x• Krono Osmoloda UA 2x• Kronowood Mielec PL 1x• Sonae Novobord ZA 5x• Gabrovnitsa BG 3x

Reference List – Machine Components• Wood chip flaker• WHZ 140-450• Kronostar Scharija RUS 4x• Kronopol Zary PL 2x• Krono Osmoloda UA 2x• WHZ 150-450• Kronospan Bischweier D 1x• WDM 160-700• Kronospan Egorievsk RUS 6x

• Hammermill• WHM 12 — 14• Kronostar Scharija RUS 1x

Reference List – Machine Components

• Knife ring grinding devise for OSB Strander

• WUS 725• Kronopol Zary PL 1x• Egger Wismar D 1x• WSZ 250• Kronospan L 1x• Kronospan CZ 1x

• Knife grinding devise WSM for wood chip flaker

• WSM 140• Tafibra ZA 1x