Presentation On Montara Continental

July 2012
A Subsidiary of Obtala Resources Plc
Page 1
Introduction : Forestry : Agriculture : Sustainability : Summary : Background
Summary of investment potential

Long lead time activities such as acquiring initial land rights have been completed Significant land resources in areas which are favourable for agricultural production Pipeline of new projects which will substantially increase development potential through 2012 and 2013 Montaras forestry operation has already moved to processing raw materials into high value, high specification finished timber products Montaras agricultural operation has already demonstrated potential through trial plantings Experienced management team in place, with high quality support teams
Page 2
Montara Continental: The Opportunity

Income generating, scalable business models with low up-front costs Commercial production and revenue generation commenced Multiple revenue streams with short term positive cash flow Agricultural productivity in expanding markets Potential to reduce costs through centralised processing operations Increase profitability through vertical integration, control of supply chain Adding value to co-products through post processing Socially responsible investment opportunity Strong government (Local and National) support
Page 3
Strategy & Objectives

Strategy Be a profitable, leading producer and trader of food crops and forestry products in East Africa, growing year on year over the next 5 years. Objectives Develop sustainable and profitable forestry and agricultural trading & investments Build a leading profitable position in East African agro-forestry within 5 years Become a leading producer of soft commodities in East Africa Be a leader in transforming the East African forestry sector from raw material supply to a manufacturer of high value products Maintain high standards of sustainable practices and environmental management Operate in a socially responsible manner that meets the needs of our communities, employees, customers and shareholders Increase areas of production through acquisition and trading Optimise shareholder return
A Subsidiary of Obtala Resources Plc Page 4
Land Holding Value Comparatives

Montara Continental Limited Agriculture 43,662 Ha
Country Argentina Australia Brazil Malaysia Land Use 2nd quality arable What Grazing Farmland Greenfields Plantation New Zealand Arable Romania Russia Farmland Lease Currency USD AUD AUD R$ USD USD NZD Euro USD USD/ha Average 6,000 1,336 2,830 2,562 3,000 25,000 27,639 3,920 800 Source 1 1 1 1 2 2 1 3 1
Forestry 367,618 Ha
Source 1. International Farmland Markets 2009, Savills Research 2. Asian Plantations Limited 3. DGC Asset Management, Farmland Investment Report 2012
Page 5
Areas of Operation
Forestry Concessions
Concession Angoche ** Gile Purpletown* Pemba ** TOTAL Area (Hectare) 63,653 Ha 50,000 Ha 200,000 Ha 53,965 Ha 367,618 Ha Montara % Interest 100 100 75 100
Agriculture Concessions
Concession Tanzania -Songea Tanzania Nambendo*** Mozambique Namuno** TOTAL
Forestry Agriculture
Under MoU Due Diligence ** Pending Ministerial Sign-off *** JV agreement finalising title deeds
Area (Hectare) 19,787 Ha 14,000 Ha 9,875 Ha 43,662 Ha
Montara % Interest 70 70 100
Page 6
Forestry Business Strategy

Montara Forestry
Railway Sleepers
Current production 6,000/month Aiming to double Q4 2012 Major supplier to government backed projects Large export potential
Sawn Timber Exports

Order placed by major international buyers Aiming to build up buyers list with target of 10-20 containers/month
Hardwood Flooring
Currently selling strip flooring blocks locally Q4 2012 will be producing high spec solid and engineered flooring
Page 7
Forestry as an Investment
Timber presents a two-fold opportunity for investment growth: 1.Unlike other commodities (e.g. gold), trees grow in size as well as value per unit 2.Growth can be realised through harvesting, or option to store on-stump when demand or prices are depressed as values appreciate over time Forestry investments are also underwritten by the value of underlying land assets Substantial added value to underdeveloped timber properties through development of on-site infrastructure to allow for future harvesting Global timber prices have increased by 6% annually for over 100 years, Global timber market is estimated to currently be worth over $600 billion/annum Primary drivers underpinning consumption of forest products are economic growth, personal income, and population growth Forestry investments offer stable long-term growth throughout any set of economic conditions Consistent long-term portfolio growth that does not share any correlation with the performance of traditional investment assets such as equities
The different species we supply

High Value Timber, High Margin Model Main products: Sawn timber, semi-finished flooring, sleepers, furniture By products: Strip flooring, construction timber and biomass More than 10 commonly traded species including: 3 species of Precious Class, 7 Species of 1st
Page 9
Our Forestry Concessions Mozambique

Within well established exotic hardwood concessions Standing stock immediately available for harvesting Active and regulated industry Concessions located with good access to export road and port facilities 200km from major ports Concession licences allows Montara to act as a trader Buy from simple domestic licences holders at heavily discounted local market rates 10 commercial and a number of less commonly traded exotic hardwood species on our concessions Montara implementing a re-forestation program, supporting biodiversity redevelopment No elaborate management practises required Project considered a model for forestry in Mozambique by local government Our projects are major suppliers to government backed development projects

Forestry Concessions Operations Head Office Central Depot Port Facility
Page 10
Montara Forestry Operations
Wooden railroad sleepers
Logs at Gile camp
Sleeper Transport
Local Consultation
Chamfuta Logs in Gile
Sawmill in operation
Page 11
Montaras Nampula Timber Yard
Page 12
Forestry Growth Strategy

Logging operational in Angoche and Gile forestry concessions
Sawmill and machining equipment in Angoche 7 mobile sawmills and secondary processing equipment in Gile Sawn timber storage facilities constructed in Nampula
Sawmill
Grow from c.300m3/month sawn timber to 400m3/month by Q4 2012 Increase profitability by building drying ovens and post processing Orders and enquiries from a number of major international buyers currently being processed with follow on orders expected Evaluating local manufacturing centre and European supply markets Evaluating opportunities to expand sleeper supply business Management & Inventory Studies on Purpletown and expansion of Gile concessions underway Discussions underway to increase land holding and increase production capacity FSC Certification in progress to expand market opportunities
Sawmill facility in Angoche Harvested timber - Gile
Montara Agriculture
Agriculture as an Investment Farmland as a safe, long-term investment asset that generates income and is unlikely to depreciate when the value of other investments fall Farmland has repeatedly outperformed mainstream assets including stocks, bonds and commercial real estate Primary drivers underpinning current and future farmland values are economic growth, personal income, and population growth, all of which ultimately dictate global demand for food, feed and fuel Long term - demand for agricultural commodities is therefore expected to increase in line with growth in these key drivers Demand for productive land is resultant of demand for agricultural commodities, and as demand rises, so too do values Increasing demand for agricultural commodities in the face of a finite stock Supply of productive land cannot be increased, this creates the potential for exponential growth in value as capital competes for the most productive assets
Principal source DGC Asset Management Forestry Investment Report 2012
Page 14
Food demand is growing

Global food production is struggling to keep up with demand World population growth and intensification of food consumption as diets switch from grain to meat based (see graphs) means food demand increases China is the epitome of this situation over the last two decades moving from importing nearly no soybeans, to being the worlds biggest importer* Imports are expected to continue to grow as China has insufficient land and water to support sufficient food production growth* Agricultural productivity growth from traditional major producers (USA, EU, Aus) is too slow to meet demand growth* Declining world food stocks means greater price volatility Use of crops for biofuels has increased demand and provides a support for global food prices
*Source: Macquarie Commodities Research May 2012
Page 15
Investment in Africa targets local demand

Growth in demand from the emerging markets drives higher food prices as traditional local producers cannot respond. Africa has some of the fastest growing populations coupled with declining per capita food production Tropical Africa has unused agricultural land and good climates offering greater agricultural productivity than temperate latitudes Despite favourable productivity growth conditions, food imports continue to grow:
Africa lacks modern farming methods and crucially infrastructure to store and transport foodstuffs Limited large scale commercial enterprises but large land areas appropriate for commercial farming
Opportunities for low production costs and high margins Local support for inward investment as investment in commercial operations supports local farmer productivity and development and reduces food import dependency
Long term global pricing follows increasing demand

Groundnuts March 2012: $1,900/tonne 167% price increase
Sunflower oil March 2012: $1,444/tonne 155% price increase
Soya Beans March 2012: $512/tonne 190% price increase
Page 17
Our farms will focus on oilseed production

Groundnuts, Sunflower, Sesame Oil extraction for crops uses similar processes press and filter Crops produce valuable and stable co-products (store and sell at best prices) Co-products enhance cash flow No elaborate management practises Little irrigation required and grow well in soils found on Montaras farms Some crops are Nitrogen fixing and enhance the soil characteristics Tanzania is short vegetable oil producing c. 90,000 metric tonnes (te)/annum of vegetable oil, around half of what it is conservatively consumed (FAO 2008)
Page 18
Montara Agriculture: Tanzania

Songea Farm 19,787 hectares in Southern Highlands of Tanzania In addition JV for 14,000Ha on the Mozambique border under application 99 - year Title Deed Leases Majority interest (70:30) in operating company for both farms Multiple perennial rivers on properties High to moderate rainfall Fertile soils Two crops per annum with irrigation Local village and administration support
Songea Farm Port Facility
Page 19
Songea Farm
85 Ha Proof of Concept Trial Farming Bush Clearing completed Aug - Nov 2011 Ground preparation Nov-Dec 2011 Planting Jan-Feb 2012 Crops planted: Sunflower, Groundnut, Sesame, Soya, Canola, Cassava Harvesting April 2012 onwards Local off-take for seeds being finalised Can expect 2.53.0 tonnes per crop type per hectare from 1 harvest per annum as soils develop Small scale oil seed press and filter ordered Irrigation will double the harvest per annum
Land preparation Land clearing in Tanzania
Page 20
Land preparation at Songea Farm

Land contouring
Sesame seed planting
Lutukira field camp
Soya seed planting
Page 21
Large scale crop trials on Songea (2012)

Soya
Soya
Sunflower
Sunflower
Canola
Page 22
Mozambique - Agriculture
9,875 Ha agricultural concession in Namuno District Located within well known groundnut growing region Virgin farm land 280km east of the port facility at Pemba Flat lying topography Located along the perennial Lurio River Project well supported by district administration and local communities
c.100km2
Agriculture
Page 23
Our sustainability commitment

We strive to be an agent of change for the better in the areas we operate. Our project development activities raise living standards and economic wellbeing in the areas around our operations. We are committed to operating within high standards of sustainability in all our operations, equally valuing social, economic and environmental impacts. This means that we: Obey the laws of the countries in which we operate, and go beyond them whenever ethical judgment requires. Comply with independently produced environmental management plans Strive to gain relevant external sustainability accreditation in the areas we operate Invest in community development projects such as schools and civic infrastructure projects. Recruit and train local people for long term skilled employment
Page 24
Corporate Social Responsibility

FAIRTRADE Farm to Market
Adopt socially responsible and market-based approach Helps producers in developing countries and promotes sustainability Improved social and environmental standards Provide market access to otherwise marginalized producers Helping producers develop knowledge, skills and resources to improve their lives
FOREST STEWARDSHIP COUNCIL

Mozambique a new member of the FSC Independent, non-governmental, non-profit organization established to promote the responsible management of the worlds forests Initiative to promote responsible forest management worldwide FSC is a certification system providing internationally recognized standard setting, trademark assurance and accreditation services
Page 25
Montaras Strategy For Growth

Focus on groundnuts, sunflower & sustainable hardwood forestry Near term focused growth through increased land holding and partnership base Establishing processing and storage operations
Capture value addition
Regional Growth Targets
Expand into neighbouring countries Expand to trading Build export markets Acquisition and investment into existing operational projects Evaluate strategic options:
List/IPO Sell Continue asset development Partnerships
Timber Groundnuts Sunflower Timber Groundnuts Sunflower
Export Markets
Page 26
Summary of investment potential

Long lead time activities such as acquiring initial land rights have been completed Significant land resources in areas which are favourable for agricultural production Pipeline of new projects which will substantially increase development potential through 2012 and 2013 Montaras forestry operation has already moved to processing raw materials into high value, high specification finished timber products Montaras agricultural operation has already demonstrated potential through trial plantings Experienced management team in place, with high quality support teams
Page 27
Management Team
Grahame Vetch (Manager: Agriculture), is an agricultural economist with over 30 years of large-scale farm management experience. He was previously the Country Director for Dominion Farms Ltd; a 17,000-acre start-up irrigated rice and fish farm in Kenya. Grahame graduated from the Royal Agricultural College, UK in Farm Management and is a fluent Swahili speaker Patrick Green (Manager: Forestry) has extensive experience in the field of Forestry, having been involved in several ventures in Africa and the Baltic states, ranging from the initial infrastructure set-up to the conclusion of the project. Patrick also brings considerable experience in the marketing field, being able to find an appropriate client base for a particularly product, gained from working for several years for one of the worlds biggest producers of wooden garden furniture Dominic Fava (Manager: Sales) has over 10 years Sales and Marketing experience in the natural resources sector, which has involved identification and management of strategic customers, development of markets for new products and supply chain management. Previous experience has also included evaluation of agribusiness investment opportunities, market analyses and set-up of new agribusiness operations in East Africa
Appendix
Country Facts
Page 29
Republic of Mozambique
Independence from Portuguese colonial rule in 1975 Civil war 1977 1992 Multi-party democracy under the 1990 constitution SADC member, Commonwealth State 2002-2010, average annual GDP growth 7% (Worldbank) Population 24 million (2010 WorldBank) 88% of arable land still uncultivated Tropical climate with two rainy seasons
Page 30
Republic of Tanzania
Independence gained 1961 Multi-party democracy SADC and Commonwealth member 2010 GDP growth 7% (Worldbank 2010) Population 45 million (Worldbank 2010) Years of failed agricultural policies Agriculture accounts for 26.5% of the GDP Cultivated land only accounts for 10% of the total land area of Tanzania Food and cash crops account for 70% of rural incomes Agriculture at present dependent on hand tools (only 10% of operations use motorised power (tractors e.g.); 20% use draft animals; 70% manual) Recent economic reforms have accelerated economic growth but slow in agriculture sector
Page 31
Mtwara Development Corridor (MDC)

Tanzania 2
A Spatial Development Initiative (SDI) Rail links planned to cross Southern Tanzania Development of the Mtwara port as a second major port facility, after Dar Es Salaam The seaport of Mtwara on the Indian Ocean to provide a gateway for international trade Create an economic growth zone of transborder trade and investment linking Tanzania, Malawi, Mozambique and Zambia The MDC project in Tanzanian is being steered and promoted by the National Development Corporation of Tanzania (NDC)
1 Zambia
Mozambique Malawi
1-Mwtara Port, 2-Dar es Salaam Montara Farms in Tanzania
Page 32
Contacts
Email enquiries: info@obtalaresources.com sales@montaracontinental.com Business address: 2nd Floor, Martin House, 26-30 Old Church Street, London SW3 5BY Telephone enquiries: +44 (0) 20 7099 1940 Fax +44 (0) 20 7351 5600
Page 33

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July 2012

A Subsidiary of Obtala Resources Plc

Introduction : Forestry : Agriculture : Sustainability : Summary : Background

Summary of investment potential

A Subsidiary of Obtala Resources Plc

Introduction : Forestry : Agriculture : Sustainability : Summary : Background

Montara Continental: The Opportunity

A Subsidiary of Obtala Resources Plc

Introduction : Forestry : Agriculture : Sustainability : Summary : Background

Strategy & Objectives

Introduction : Forestry : Agriculture : Sustainability : Summary : Background

Land Holding Value Comparatives

A Subsidiary of Obtala Resources Plc

Introduction : Forestry : Agriculture : Sustainability : Summary : Background

Area (Hectare) 19,787 Ha 14,000 Ha 9,875 Ha 43,662 Ha

Montara % Interest 70 70 100

A Subsidiary of Obtala Resources Plc

Introduction : Forestry : Agriculture : Sustainability : Summary : Background

Forestry Business Strategy

Sawn Timber Exports

A Subsidiary of Obtala Resources Plc

Introduction : Forestry : Agriculture : Sustainability : Summary : Background

Introduction : Forestry : Agriculture : Sustainability : Summary : Background

The different species we supply

A Subsidiary of Obtala Resources Plc

Introduction : Forestry : Agriculture : Sustainability : Summary : Background

Our Forestry Concessions Mozambique

A Subsidiary of Obtala Resources Plc

Introduction : Forestry : Agriculture : Sustainability : Summary : Background

Montara Forestry Operations

Wooden railroad sleepers

Logs at Gile camp

Chamfuta Logs in Gile

A Subsidiary of Obtala Resources Plc

Introduction : Forestry : Agriculture : Sustainability : Summary : Background

Montaras Nampula Timber Yard

A Subsidiary of Obtala Resources Plc

Introduction : Forestry : Agriculture : Sustainability : Summary : Background

Forestry Growth Strategy

Introduction : Forestry : Agriculture : Sustainability : Summary : Background

A Subsidiary of Obtala Resources Plc

Introduction : Forestry : Agriculture : Sustainability : Summary : Background

Food demand is growing

A Subsidiary of Obtala Resources Plc

Introduction : Forestry : Agriculture : Sustainability : Summary : Background

Investment in Africa targets local demand

Introduction : Forestry : Agriculture : Sustainability : Summary : Background

Long term global pricing follows increasing demand

Sunflower oil March 2012: $1,444/tonne 155% price increase

Soya Beans March 2012: $512/tonne 190% price increase

A Subsidiary of Obtala Resources Plc

Introduction : Forestry : Agriculture : Sustainability : Summary : Background

Our farms will focus on oilseed production

A Subsidiary of Obtala Resources Plc

Introduction : Forestry : Agriculture : Sustainability : Summary : Background

Montara Agriculture: Tanzania

A Subsidiary of Obtala Resources Plc

Introduction : Forestry : Agriculture : Sustainability : Summary : Background

A Subsidiary of Obtala Resources Plc

Introduction : Forestry : Agriculture : Sustainability : Summary : Background

Land preparation at Songea Farm

Sesame seed planting

Lutukira field camp