United Teak International

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The following presentation includes various statistics pertaining to inflation, including selling price indices and

current market values. Please be advised that past inflation and selling price trends are no guarantee of future

performance.

Individuals should consult their own professional advisors to determine their financial needs.

No information provided or opinion expressed in this presentation constitutes an offer to buy or sell any security.


The following presentation includes various statistics pertaining to inflation and selling price indices and current market values. Please be advised that past inflation and selling price trends are no guarantee of future performance. Individuals should consult their own professional advisors to determine their financial needs.


What you should knowabout Teak…

Teak (also known as Tectona Grandis):

• Is a deciduous hardwood tree indigenous to the dry and hilly terrains of Indonesia and Southeast Asia

• Remains one of the most valuable of all hardwoods and is known for its beauty, strength, durability and weather-resistant qualities

• Is the leading choice for marine and outdoor furniture applications because the extremely dense wood contains natural oils and rubber content, thereby possessing the greatest capability of any wood to withstand the effects of the harsh outdoor environment

• Can naturally endure the effects of sun, rain and even snow without rotting, warping, cracking, shrinkage or swelling

• Will naturally age to a beautiful silver-gray hew over the years or with a periodic application of natural teak oil will maintain its original color and richness for a lifetime.

• Prices have increased 15% per annum between 2002 and 2007 with prices increasing by a staggering 67% in 2007 due to the supply deficit, according to the ONF (Central American National Forestry Office)

What is the Project?

A unique initiative designed to:

• Promote responsible and sustainable reforestation in an genuine effort to preserve the threatened tropical rainforest throughout the world, one of Earth’s most precious natural habitats

… While

• Providing individuals, businesses and institutions the opportunity to fortify their financial futures through responsible and sustainable investing

The United Teak Reforestation Project was established in 2008 and is managed by the United Teak Management Group (UTMG)

• UTMG is a Panamanian registered privately held corporation founded on strong ethical and visionary business principles, primarily focused toward reforestation development and management of sustainable teak plantations in the Central American country of The Republic of Panama

• UTMG has full and unencumbered authority to develop, market and manage all aspects of the United Teak Reforestation Project including the associated assets, employees, equipment, land and trees

Project Overview

Project objectives

• Reduce deforestation of tropical rainforests by developing Teak tree plantations to fulfill growing global market demand for quality Teak wood

• End destructive environmental impact of historical practices by:- Reducing the need for harsh and destructive stripping of indigenous trees

- Establishing sustainable Teak tree plantations on land previously “cut and slashed” for cattle grazing to restore and contribute to the lush tropical canopy

- Reduce and progressively reverse the environmental impact of the callous destruction of tropical rainforests

Project expansion achieved through sale of Teak trees

• Clients purchase a certified number of quality Teak trees per 1 hectare (2.5 acre) parcel

• UTMG prepares the land, plants, maintains and harvests Teak trees on behalf of the client

• Client receives harvest proceeds… Project expansion achieved… All stakeholders benefit, including the precious global environment

Project Methodology…Eliminate “Cut and Slash”

United Teak acquires previously “Cut and Slashed” dormant fields and live-stock grazing land in ecologically sensitive areas of beautiful Panama

Project Methodology…Preparation and Planting

Following hand clearing and cultivation of the land, high-quality Teak Seedlings are selected from certified growers and planted during the optimal rainy season

Project Methodology…Protection and Growth Cycle

The skilled forestry team at UTMG ensures complete care and maintenance of the entire Teak plantation over the projected Twenty-year growth cycle

18 Months 48 Months

Project Methodology…Plantation Management

UTMG manages all aspects of the Project through final harvest and ultimate sale of Client timber to selected Teak distributors, wholesalers and end-users

Trees guaranteed to grow… With complete life cycle management

• Clients purchase and retain 1 hectare (2.5 acres) segregated “Parcels” of planted and fully managed Teak trees with a guaranteed [1] minimum yield / number of trees at final harvest

• Typically, each parcel purchased is planted with approximately 1,100 quality Teak seedlings obtained through a recognized local Panamanian grower, although other various species of trees can be mutually agreed upon

• UTMG provides each client with:

- Complete land preparation, planting, care and maintenance of Teak trees purchased throughout the entire growth cycle (Twenty-years for new seedlings)

- Culling and preparation services (conversion to marketable timber) at final harvest

- Sale of marketable timber in the wholesale Teak market on behalf of the client, obtaining fair and available wholesale pricing (or preparation for delivery to the client upon request)

• The Purchase Price is the only out of pocket cost to the client… A one-time 12% fee is deducted from all timber sale proceeds to compensate the cutting, management and selling services provided by UTMG during the contract

[1] If for any reason the client’s segregated parcel of planted Teak trees does not produce the contracted yield at final harvest, UTMG will provide the difference from a reserve of privately owned Teak trees

What You Are Buying?

Teak Tree Parcel Pricing

Current cost of one United Teak Reforestation Parcel (1,100 trees at planting with a guaranteed minimum yield of 240 Cubic Meters of commercial grade wood) is US$41,800

• Investment discounts shall be provided for each United Teak purchase contract of five parcels or greater

US$376,200

US$198,550

US$41,800

Purchase Price

11,000

5,500

1,100

No. of Trees

US$34.2010 Parcels

US$36.105 Parcels

US$38.00 1 Parcel

Price per TreePurchase Size

10%

5%

-

DiscountUS$9,880 Down

US$1,680 a year for 19 Years

** FOR A LIMITED TIME ONLY **

We are offering 0% interest and absolute no fee financing on the purchase of each United Teak Reforestation Parcel… No qualification or credit check required

Securing Your Investment

Purchases secured by “Timber Deed”

Back

GPS Coordinates

FrontDocumentation Includes:

- Number of trees purchased / guaranteed at final harvest

- Assignment to customer of complete and unencumbered ownership of trees purchased

- Location of trees (via GPS coordinates)

Your Teak Parcel Valuation

Calculated value of each United Teak “Parcel”

• One Parcel (1110 trees) of Teak will yield approximately 240 Cubic Meters of commercial wood within 20 years, utilizing an annualized conservative growth rate of 12 Cubic Meters per hectare

• A conservative average teak wholesale price estimate per cubic meter (424 board feet) is US$1,060.00, or US$2.50 per board foot (see chart)

• The estimated conservative harvest value of a United Teak tree Parcel is US$254,400 at TODAY’S wholesale prices (US$1,060 x 240 = US$254,400)

Notes(1) Source International Tropical Timber Organization (www.itto.or.jp)(2) Price refers to plantation sawn wood, and includes small sizes

ITTO (1) reported teak log prices as of October, 2005

MeasureMyanmar Veneer

2nd QualMyanmar Saw

Quality Gr IMyanmar Saw Quality Gr II

US Import

Average 2005(2)

Euro per Hoppus Ton 3,866 1,914 1,545 2,207

US$ per Cubic Meter 2,642 1,308 1,056 1,508

US$ per Board Foot 6.23 3.09 2.49 3.56

http://www.itto.or.jp/

Asset Value / Returns

When you purchase one of our certified Teak “Parcels” you are actually paying only a fraction of the asset’s value at maturity, based upon current wholesale prices!

• This means the value of your initial tree purchase will increase 5 times faster than the cost, simply by growing… We call this “Growth Value”

• When historical inflation trends are added to “Growth Value” the return on your Teak purchase increases to over 900%... Or more than 9 times your total investment

• Our conservative calculated returns do not take into account the value of you paying for your investment over 20 years… That is an additional benefit and investment security mechanism unparalleled in the reforestation investment industry

Return Example:Full Parcel of New Seedlings

$254,400Harvest value of full Parcel with 0% increase (1,100 trees)

(41,800)Purchase Price (over 20 years)

Growth appreciation at today’s prices - “Growth Value” $212,600

508%Total ReturnMultiple of cost 5 X’s

$433,200FUTURE harvest value of full Parcel (1,100 trees)

(41,800)Purchase Price (over 20 years)

Growth appreciation calculated at conservative 3% increase $391,400

936%Total ReturnMultiple of cost 9 X’s

The median wholesale price of Teak has increased an average of 5.5% per year since 1972

(1)Wholesale Teak PriceUS $ Per Cubic Meter

$0

$1,000

$2,000

1972 1982 1992 2002 2012

Natural Deforested Teak

Plantation Teak

FAO

ITTO

(2)

(3)

Teak Price Trends

Chart Notes(1) Source International Tropical Timber Organization (www.itto.or.jp), FAO (www.fao.org) and UTMG analysis(2) Drop in deforested Teak price is related to political situation in Myanmar and international deforestation laws(3) Plantation Teak prices steadily increased the last five years with projected long term annual growth of 5.5% to 7%

http://www.itto.or.jp/

http://www.fao.org/

Notes(1) A current Teak timber price of US$1,060 M3 was utilized as a starting point for growth projections(2) Average annual Teak timber price growth rate of 3% was applied to harvest years 10 through 20(3) Due to reduced size and maturity of timber harvested in year 7, a conservative fixed value of US$200 M3 was utilized

Teak prices are predicted to continually grow mainly due to increased global demand and a decreased supply of quality timber

• Increased global government restrictions placed on the cutting of natural growth forests has created a strong world demand for quality Teak timber. It is expected that the government will continue to restrict deforestation practices, eventually prohibiting all cutting of natural forests. This will surely increase the prices of plantation Teak timber

• The expected cubic meter value at each scheduled thinning / harvest has been calculated utilizing a moderate 3.0% annual increase in already conservative Teak timber prices… The market trend since 1972 has averaged more than 5.5%

Projected Teak Price

Teak Price Future

Commercial ThinningYear 7




$200 / M3 $1,383 / M3 $1,557 / M3 $1,859 / M3

Notes(1) An average annual Teak timber price growth rate of 3% assumed, calculated utilizing the “Projected Teak Price” chart(2) The calculated 16.5% average annual compounded return does not take into account periodic harvest revenue payments

Should historical price trends of Teak timber continue, the value of your United Teak investment is expected to greatly exceed the appreciation of conventional global investments

• Applying a conservative 3.0% annual Teak timber price increase, your United Teak investment is projected to earn a 16.5% annualized compounded return… Net!!

Investment Projection

Teak Investment Returns

Age of Trees

Trees Standing

Trees Thinned

Harvested Timber [M3]

Commercial Value

Management Fees [12%]

Investment Net Value

4 1,100 433 0 $0 $0 $0

7 667 267 22.6 $5,391 $647 $4,744

10 400 132 32.5 $44,970 $5,396 $39,574

14 268 88 47.0 $73,102 $8,772 $64,330

20 180 180 166.6 $309,742 $37,169 $272,573

Totals 1,100 268.7 $433,205 $51,985 $381,220

Comparing Teak to Conventional Investments

When you compare anticipated appreciation in value to conventional investment alternatives…Teak greatly exceeds the competition

United Teak16.5%

Compounded annual return – Last 32 years

11,378%

11 Times better than the US Stock Market

7.4%

8.0%

3.1%

5.0%

6.1%

8.8%

Total Return % after 32 years

1,366%

454%

1,087%

915%

5,000% 7,500% 10,000% 12,500%

U. S. Real Estate

Gold Bullion

U. S. T-Bills / Bonds

Nikkei (Japan)

CND. Stock Market (TSE)

U.S. Stock Market (DJ)

627%

258%

2,500%

And if history repeats…

Over 113 Times Purchase Price

How are these returns consistently achievable?

Ever-increasing demand

Primary Influence

Limited world supply

Quick growing resource

Teak Supply Influences

Teak timber supplies are influenced and limited primarily due to the following global factors:

• Environmental requirements severely limit suitable growing regions:

- Teak trees only grow adequately within 10 - 15 degrees of the equator

- Growing region must be at the correct elevation with distinct wet and dry seasons

- Only equatorial regions of Central / South America and Southeast Asia / Africa possess the essential temperature, humidity and rainfall characteristics

• Deforestation and destructive forestry continues to occur in many areas designated as suitable growth regions:- The 2001 State of the World’s Forest Report published by the United Nations stated - “While forest

area in developed countries has stabilized and is slightly increasing overall, deforestation has continued in many developing countries”

• Pressure from the United Nations and key governments forcing new legislation to prohibit the cutting of indigenous Teak trees

• Good quality plantation Teak requires sufficient care and maintenance in the early years in order to produce marketable timber

Teak Demand

This dynamic assures ever-increasing prices for Teak wood!

Plantation Teak is the investment of the future, but supply of good quality timber will be limited

• Demand for good quality Teak has never been higher due to its strength, hardness and durability

• The high oil content of teak wood provides natural resistance to insects, fungus, fire, water and toxic acids

• Recognized globally as a quality construction material that will endure the test of time, lasting for decades and even centuries

• Teak is an essential construction material in ship and yacht building, joinery, flooring, decorative carving, cabinetwork, paneling, turnery, specialty fixtures, tanks and vats

• Demand and new applications for Teak wood are ever increasing, while good quality timber is decreasing at a rapid pace

Risk Assessment

With such high returns… What are the risks?

• Possible risks associated with Teak plantations:- Agricultural

- Physical and Environmental

- Government Regulations

- Plantation Management

- Time… State of future markets

- Impact of Inflation

• At United Teak… We have carefully structured our timber investment packages to mitigate the primary risks associated with Teak plantations and to ensure your asset is safe and secure during the 20 year life-cycle

Agricultural Risks

• Insects… No indigenous harmful pests. Only exposure is to roots within first year or of planting. Problem easily avoided by proper preparation and bio-sensitive insecticides

• Fungus / biological… No known cases in Panama of mass fungus or biological destruction. If present, fixed by implementing an effective spraying program

• Growth… Inferior growth usually results from neglect, poor soil or unsuitable climate conditions. At United Teak we:

- Select farms with only grade 1 soil conditions situated in optimal growing regions

- Our expert team of on-site foresters oversee all phases of the growth and management process including annual maintenance and fertilization

High motivation for continued proper management… UTMG fees are based solely on quality of final harvest

Physical / Environmental Risks

• Hurricane and Floods… Hurricanes are non-existent in the region. Trees / farms receive sufficient rainfall eight months of the year and excess flooding is easy managed by topography grading and properly planned irrigation

• Fire… Forest fires highly unlikely in the tropics and the trees high oil content make them impervious to fire once they are a few years of age. Fire ditches are maintained during the dry season to reduce accidental fire risks

• Theft… Logistically impossible as workers live onsite and work the plantation daily. UTMG staff and foresters provide regular oversight and inspection. Site is fully protected with a security fence with no hidden or concealed access points

• Unforeseen destruction and catastrophe… None know to the region

UTMG guarantees your Teak saplings… Should any trees within the first two years of planting not perform to industry standards, they will be replaced and replanted at our cost

Government and Legal Risk

Why is Panama ideal?• Stable government with a democratic voting system and a legal structure

based on globally recognized civil law

• Radical shift in historical governmental process highly unlikely…- Widespread land ownership and voter participation in general elections

- Viewed as one of brightest democratic success stories of the last century

- Strategically important to the United States and regional stability… A member of the Central American Free Trade Agreement (CAFTA) with United States

- No indigenous military… Making change by revolution unlikely

- Progressive business environment with tax incentives, land ownership laws and rights encouraging plantation development

- The Panama economy relies heavily on foreign investment, trade and tourism

• Panama possess the optimum political conditions for stable investment in Teak plantations…- “Although not indigenous to Panama, this tiny country provides a uniquely perfect geographical,

climatic and geomorphologic condition for the production of high quality plantation Teak, and with some of the fastest growth rates of Teak in the world being recorded in Panama.” [Teakwood Commercialization - 1998]

Highly skilled and professional team assembled to manage your asset’s growth

• John Cornacchia… United Teak Founder, Chairman of the Board

- Passionate visionary with strong ethical business practices

- Successful business owner and operations manager for over 22 years

- Highly experienced in the dynamic global business market

- Operating in Panama for over five years with a solid team on the ground

• Strong operations team… United Teak Management Group

- Chief Executive Officer, corporate insurance expert with over 20 years of experience in operating businesses in Canada

- Chief Operation Officer with over 16 years experience in managing agriculture projects in Panama

- A full time forester highly educated and experienced in soil rehabilitation and Teak plantations

- Full time plantation site manager overseeing a team of various full time and seasonal plantation employees

Management Risk

Time… Market Risk

The hardest risk to manage… Unforeseen market conditions and changes

• Certain primary factors mitigate this risk, thereby reducing the negative impact on your investment:

- Teak has always been in high demand and will remain desirable due to the unique properties and qualities it possesses

- The quality of plantation Teak wood has greatly increased due to improved planting and maintenance practices, resulting in increased demand for the precious natural resource

- Supply is becoming increasingly limited due to the high demand

- Worldwide legislative trend toward rainforest preservation and laws prohibiting the cutting of indigenous Teak trees and other tropical species

- Recent push to establish plantations in indigenous regions of Southeast Asia and India will not enter the market for many years after plantations in Panama are ready for harvest, due to the quick growing cycles in the region

The best hedge against time and market risk… Price leverage!

Normal inflation

$254,400

Zero inflation

ZERO $254,400

($127,200)

$127,200204%2 X’s

Today’s wholesale yield value of one parcelInflation rate (same as last 15 years)Future wholesale valueLess: 50% drop in market valueHarvest proceedsTotal return (vs. $41,800 cost)Multiple of cost

$254,4003.0%

$433,200($216,600)

$216,600418%4 X’s

How price leverage can hedge against time and market risk:

• Your purchase price provides leverage of 5 to 1 (current harvest value vs. cost) providing outstanding risk protection

• The chart below depicts what would happen in the unlikely event that the future value of Teak wood (relative to other goods and services) declines by 50%

Time… Market Risk

Performance Guarantees…Our Commitment to You

The United Teak guarantees represent our commitment to you

United Teak is built on sound and ethical business practices… We guarantee our services

• United Teak guarantees that your Teak saplings will grow to industry standards during the first two crucial growing years:

- Should any of your Teak saplings fail to grow properly within the first two years of initial planting, United Teak will purchase and replant them at our expense with no additional cost to you - Zero

• United Teak guarantees that you will be completely satisfied with the performance of your Teak parcel investment… So much so that we provide a five-year full money-back policy:

- In the unlikely event that you are not fully satisfied with your Teak parcel investment on the five year anniversary purchase date, United Teak will provide a full refund of every dollar paid under your contract, including 2.85% compounded annual interest. No questions and no cost to you - Zero

• United Teak guarantees that your parcel will deliver a minimum yield of 240 cubic meters of commercial grade timber during the 20 year life-cycle:

- Each of our Teak parcels are properly managed so that they produce 240 cubic meters of commercial grade timber during the 20 year life-cycle. Simply… We will provide any shortfall that may possibly occur from our own reserves at no additional cost to you - Zero

Taking Action…

United Teak has assembled a highly specialized team of experts and programs to provide a highly unique opportunity

• If your financial goals include:

- Highly lucrative, long-term investment programs

- Mitigating risks associated with the volatile stock market

- Diversifying your portfolio while investing globally in a renewable resource

- The security of fully guaranteed asset ownership

- Paying for your investment over the entire term of ownership

AND…

- The opportunity to help protect the world’s precious environment

• Get involved with this exciting initiative and contact United Teak today… Or visit our website at www.unitedteak.com

http://www.pacificteak.com/




The following presentation includes various statistics pertaining to inflation and selling price indices and current market values. Please be advised that past inflation and selling price trends are no guarantee of future performance. Individuals should consult their own professional advisors to determine their financial needs.


Business

United Teak International