FOREST LAND PROSPECT. Piigandi-Piila Põllud Ja Metsad OÜ ESTONIA

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1 FOREST LAND PROSPECT Piigandi-Piila Põllud Ja Metsad OÜ 59,5 ha ESTONIA 19 December 2016

2 Forest land prospect Piigandi-Piila Põllud Ja Metsad OÜ Area hectare % Forest stand 51,2 86% Unproductive forest land Glade Agriculture land 0,0 0% 0,0 0% 6,8 11% Roads and ditches 0,0 0% Other land 1,5 3% Sum 59,5 100% Total Price EUR/ha Growing Stock Pine m 3 standing volume m 3 standing by main species % Pine 0 0% 91 5% Standing volume per Birch % ha 32,8 Aspen % % Price per m 3 Other % 39, Price of forest land / standing volume Aspen Other Birch Bonitet The estimated average annual production over the whole rotation cycle on the property is: Current growth per ha average annual m 3 standing growth, m3/ha/year Net growth in the period of volume The estimation is based upon suggested activities 8, ,1 Growth Harvesting proposal (coming 10 years) m 3 standing Final Felling 543 Thinning 260 Total during the period 803 Expected net growth the first growing season m 3 standing volume 159

3 Standing volume, m3 Area (ha) Area Growing stock Age class ha % Total volume % m 3 /ha 0 4,0 8% 0 0% ,2 32% 120,7 7% ,2 18% 597,7 36% ,0 8% 232,9 14% ,5 1% 36 2% ,0 8% 250,5 15% ,2 10% 122,8 7% ,5 1% 76,5 5% ,7 13% 240,2 14% ,0 0% 0 0% ,9 2% 2,7 0% ,0 0% 0 0% ,0 0% 0 0% 0 Sum 51,2 100% % 18 Forest land area per age class Pine Birch Aspen Black Alder Open Area 0 Age class Growing stock per maturity class Open land Young Middle-aged Premature Mature Pine Birch Aspen Black Alder Other Growing stock, Maturity class m3 standing Open land 11 Young 575 Middle-aged 646 Premature 64 Mature

4 Abbreviation and explanations Bonitet table Bonitet Class 1A Annual increment, m 3 /ha/year 10,9 10 8,3 6,6 5,7 2,9 Ägoslag Svenska English Produktiv skogsmark Forest stand, clear cut area and dead stand (skog) Peat bogs, marsh, fens and over flooding area, Impediment myr swamp Viltåker Glade Inägomark/Jord Agricultural land bruksmark Väg och kraftledning mm Övrig areal Land Category Road and dich (in forest land) Beaver flooded area, other area not classified as forest land. Åldersklass Svenska Ung skog Medelålders skog Mogen skog Fardigväxt skog Gammal skog Age group English Young stand Mid-age stand Seasoning stand Maturity stand Over seasoned stand Estimated growing stock at Growing stock end of 2015 Growth 2016 Harvesting volume during 2016 Total growing stock Growing stock per ha m 3 standing volume 159 m 3 standing volume 0 m 3 standing volume m 3 standing volume 35,9 m 3 standing volume

5 Compartment List Property Cadastral No. Parish Compartment Area, ha Dominant Species Age Compartment volume Height Bonitet IMELIKU 22901:007:0048 Illuka vald 1 2,8 Aspen , Illuka vald 2 0,9 Black Alder , Illuka vald 3 3,7 Aspen 20 81,4 5 2 Illuka vald 4 1,4 Aspen 20 19,6 4 2 Illuka vald 5 2 Aspen Illuka vald 6 0, LIINIMETSA 70201:001:0321 Rägavere vald 1 1,1 Aspen 75 8, Rägavere vald 2 0,8 Birch , Rägavere vald 3 1,6 Birch Rägavere vald 4 0,3 Aspen 30 63, Rägavere vald 5 1,3 Birch Rägavere vald 6 0,6 3 1,2 2 2 Rägavere vald 7 3,5 2 10,5 1,5 2 Rägavere vald 8 0,4 Birch 30 13, Rägavere vald 9 0, Rägavere vald 10 2,8 Birch 2 0 1,5 2 Rägavere vald 11 0,6 Black Alder 3 1,2 1,5 2 Rägavere vald 12 3,8 Birch 60 11, Rägavere vald 13 0,9 Birch 55 68, METSATALU 22401:001:0167 Iisaku vald 1 0,4 Birch Iisaku vald 2 0,4 Birch 80 49, Iisaku vald 3 0,2 Birch 20 17, Iisaku vald 4 0,5 Birch 65 11, Iisaku vald Iisaku vald 6 1,2 Birch , PÕLENDIKU 19001:001:0345 Haljala vald 1 7, Haljala vald 2 0,3 50 2, Haljala vald 3 0,3 15 6,6 7 2 Haljala vald 4 0,4 15 7,2 6 2 Haljala vald 5 2 Aspen Haljala vald 6 0,5 Birch Haljala vald 7 4 Birch Haljala vald 8 0,4 Birch 50 62,8 20 2

6 Property list Property Forest Parish County Cadastral no. Total Area name area Arable land IMELIKU Illuka vald Ida-Viru maakond 22901:007: ,30 11,3 North LIINIMETSA Rägavere vald Lääne-Viru maakond 70201:001: ,60 18,2 1,4 North METSATALU Iisaku vald Ida-Viru maakond 22401:001:0167 9,10 6,7 2,4 North PÕLENDIKU Haljala vald Lääne-Viru maakond 19001:001: , ,0 North 59,5 51,2 6,8 Region Catch-up regeneration costs 18 ha of reforestation to do and 19 ha of needed pre-commercial thinning. Area Cost per ha Total Cost Soil-scarification Planting Pre-commercial Thinning Comments: Liinimetsa - needs maintenance of the draining system in some parts of the property Põlendiku - there is option to leave compartment 1 to natural regeneration (result asben/alder), it is reasnoable to afforestate additional ~3 ha of old agriculture land Metsatalu - it is reasnoable afforestate additional ~2 ha of old agriculture land