Timber63 use rights are only transferable to PRC entities

Offer non-PRC investors opportunity to invest in China timber

Access to capital through US listing

Management team experienced in sourcing, negotiating and acquiring forest user rights certificates

Management team experienced in harvesting permit application process

Harvesting taxes have been abolished

Political initiatives have limited domestic wood supply, as domestic wood production rates have declined since 1995

Economic trends have create strong demand for wood, as China is the world largest wood imported and consumer

Managements’ long-term commitment to sustainable forestry management is support at all levels of government

Existing relationship with local collectives and harvesting permit agency

Supply of available user right certificates due to harvesting quotas and urbanization

Location: Heilongjiang Province is located the northeast and is one of China’s three major forest regions, home to Coniferous stands that yield China’s most valuable commercial timber. With 19 million hectares of forest and 1.5 billion cubic meters of live timber, Heilongjiang Province has the most forest land in China and a forest coverage ratio of 42%. In 2007 2.7 million cubic meters of timber were sold in the province, generating RMB2.5 billion in revenue and an average selling price of RMB924 per cubic meter. The provincial government is very active in conservation efforts, promoting sustainable forest management and produced China’s first state-owned forest to gain certification under the international standards of the Forest Stewardship Council. The temperate forest of Heilongjiang Province is one of the most distinct in the world, and home to endangered species and animals, such as the Siberian tiger, the brown and Asiatic black bears and the red-crowned cranes.