1. Uruguay Agribusiness Investments presents... 11.4 megawatt biomass power plant

2. Uruguay Agribusiness Investments 11.4 Megawatt Biomass Power Plant Treinta y Tres, Uruguay investment overview Uruguay, named 2013 Country of The Year by The Economist magazine for its forward-thinking economic, social and environmental policies, is currently undertaking the most aggressive renewable energy program in the Western Hemisphere. ! Uruguays government has established the goal of having 50% of the countrys total primary energy matrix derived from native renewable sources by the year 2015. Biomass is one of the most important components of Uruguays desired energy mix, and the country intends to have 200 MW of biomass generation privately installed by 2015. ! Law 16,906 (1998) declares the promotion and protection of national and foreign investment of national interest. Any investment projects supported by the Executive Branch are eligible for corporate income tax exemptions between 20% and 100% depending on the project. 3. investment overview Decree 354/009 (2009) also grants generous tax incentives specic to the renewable energy sector. The decree is established in Article 11 of the Law on Investment Promotion & Protection pursuant to the government-stated priority of promoting the renewable energy sector as a sustainable productive development strategy. ! In 2013, Uruguays largest newspaper declared the rapid evolution of forestry as the countrys most signicant agribusiness transformation since the introduction of the meatpacking plants a full century ago. ! Uruguay timber exports have grown by a multiple of 88 over the past two decades. Uruguay exported a mere US$13 million of timber in 1990, but that gure surpassed US$500 million by 2010. Many analysts believe Uruguay timber exports will top US $2 billion by 2014. Uruguay Agribusiness Investments 11.4 Megawatt Biomass Power Plant Treinta y Tres, Uruguay 4. investment overview As an important component of Uruguays government-mandated renewable energy mix, FarmsUY is pleased to present Energa Limpia 33 (Clean Energy 33), an 11.4 Megawatt Biomass Power Plant being built in Treinta y Tres, one of the Uruguay departments with the highest concentrations of large-scale rice mills and eucalyptus/pine timber plantations. Local sawmills are operating at or near capacity with the thinning and pruning of production quality wood from both Treinta y Tres and neighboring Lavalleja. ! Energa Limpia 33 commenced construction in May 2013 and is scheduled for completion in the third quarter of 2014. (See Project Timeline slide 11). Upon completion, the new Biomass Power Plant will generate 11.4 MW per hour with a utilization factor of 90%. Of the energy produced, 1.5 MW (15.1%) will power the plant and the remaining 9.9MW (84.9%) will be sold to the market. Uruguay Agribusiness Investments 11.4 Megawatt Biomass Power Plant Treinta y Tres, Uruguay 5. investment overview Energa Limpia 33 is strategically located in Treinta y Tres and surrounded by some of Uruguays largest rice mills including SAMAN, Coopar, Casarone, Glencore and Arrozal 33 whose husks and wood chips will provide one of the engines of growth for this biomass power plant. In addition, there are 25 major grain silo facilities in the surrounding area making this the region of Uruguay with the fourth-highest concentration of silos with a total capacity of 350,000 tons of grains. ! The plant is located next to the Olimar Grande River on the outskirts of Treinta y Tres, the capital city of the Department which has a population of 48,134 residents and one of the lowest population densities in Uruguay with 5.05 residents per square kilometer. Uruguay Agribusiness Investments 11.4 Megawatt Biomass Power Plant Treinta y Tres, Uruguay 6. 2013 Country of the Year - The Economist magazine. ! Most Transparent Country in Latin America - Transparency International ! #1 Ranking Rule Of Law in Latin America - 2014 World Justice Report ! Least Corrupt Country in Latin America - 2014 Corruption Risk Index ! Foreign direct investment (FDI) in Uruguay has surged fourteen times over the past decade, and Uruguay FDI as a percentage of total GDP is one of the three highest rates in Latin America after Chile and Per. ! Uruguay offers a favorable business climate, equal treatment for foreign investors, political stability, world-class infrastructure, fast and cheap Internet access, free trade zones, major ports and one of the worlds best airports. uruguay overview Uruguay Agribusiness Investments 11.4 Megawatt Biomass Power Plant Treinta y Tres, Uruguay 7. uruguay energy mix 2008 2015 Heat Imports Hydraulic Biomass Wind Natural Gas Crude Imports Hydraulic Uruguay Agribusiness Investments 11.4 Megawatt Biomass Power Plant Treinta y Tres, Uruguay 8. plant uruguay location Timber farms can be found in 16 of Uruguays 19 departments. ! The Energia Limpia 33 Biomass Power Plant is being built in the Department of Treinta y Tres. Uruguay Agribusiness Investments 11.4 Megawatt Biomass Power Plant Treinta y Tres, Uruguay 9. plant uruguay location Uruguay Agribusiness Investments 11.4 Megawatt Biomass Power Plant Treinta y Tres, Uruguay 10. plant treinta y tres location Uruguay Agribusiness Investments 11.4 Megawatt Biomass Power Plant Treinta y Tres, Uruguay 11. identified ecosystems Uruguay Agribusiness Investments 11.4 Megawatt Biomass Power Plant Treinta y Tres, Uruguay O lim arGrande River River Highway !Artificial Forest Native Forest Pasture Parcel 1713p Parcel 8182p 12. project timeline ENERGIA LIMPIA 33 BIOMASS POWER PLANT PROJECT TIMELINE 2013 2014 Project Timeline Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Basic Engineering Detailed Engineering Acquisition of Plant Equipment Civil Engineering Mechanical Assembly: Vapor Generator Mechanical Assembly: Turbo Alternator Mechanical Assembly: Peripheral Equipment Electrical Installation Instrument Control Installation Final Testing and Plant Operations Commence Uruguay Agribusiness Investments 11.4 Megawatt Biomass Power Plant Treinta y Tres, Uruguay 13. geological plan Uruguay Agribusiness Investments 11.4 Megawatt Biomass Power Plant Treinta y Tres, Uruguay 14. project parcels Uruguay Agribusiness Investments 11.4 Megawatt Biomass Power Plant Treinta y Tres, Uruguay 1713p 8182p 15. investment price US$30,000,000 Uruguay Agribusiness Investments 11.4 Megawatt Biomass Power Plant Treinta y Tres, Uruguay 16. investment return Investment US$30,000,000 Biomass Cost per Ton US$50.00 Energy Sold Annually 73.60 MWh Spot Price (Average) US$220.00 Spot Revenue US$16,200,000 Annual Income US$8,300,000 IRR (10 years) 22.5% First 5 Years Years 6 & Beyond Investment US$0 Biomass Cost per Ton US$50.00 Energy Sold Annually 73.60 MWh Spot Price (Average) US$160.00 Spot Revenue US$11,800,000 Annual Income US$3,700,000 IRR (10 years) 22.5% Uruguay Agribusiness Investments 11.4 Megawatt Biomass Power Plant Treinta y Tres, Uruguay 17. purchase inquiries