presents

AGD Sustainable Farm, Healthcare & Skills Development Center

Midrand, South Africa

January, 2014Confidential

African GREEN Developments (Pty) Ltd.

•Located on 15 hectares of abandon farmland in Midrand, South Africa, we’ve developed the world’s first, zero-carbon footprint, food production/skills development/healthcare center:

– Healthcare treatment center (agreement currently under negotiation)• 12 full-time health care personnel & videoconferencing facilities to serve over 100 patients/day• Providing a wide array of healthcare services free of charge

– Powered by 100% renewable energy• On-site Solar PV & Waste-to-Energy power generation• Nearly 4.5 MW of power• Offset equivalent of 860k tons/yr of CO2, with market value of nearly $130 million• Collecting/avoiding use of 1.3 million cubic meters of freshwater/yr

AGD Sustainable Farm, Healthcare &Skills Development Center

– Commercial-scale organic food & feed production• 12.6 hectares of climate-controlled, greenhouse

growth area• Over 15,000 tons/yr food & animal feed production• Over $40 million in revenues/yr• Employing180 managers, skilled & unskilled workers

– Education/Skills development• Offering free of charge, hands-on education/skill

development to 150 students per session• 16 full-time instructors/staff serving 600 students/yr• Fully furnished, on-campus living accommodations

Confidential

AGD Sustainable FarmOur 15 hectare zero-waste, working farm combines some of today’s

most advanced organic food production technologies inside an array of climate-controlled greenhouses using low-cost LED for 24/7 growing.

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Algae Ponds(~2.7 hectares)

Algae Harvesting & Processing

Rainwater Storage Tanks

Rainwater Storage Tanks

Fish Tanks(~2 hectares)

Shrimp Ponds(~0.6 hectares)

Hydroponic Fruits & Herbs

(~0.8 hectares)

Hydroponic Vegetables

(~9.3 hectares)

Algae/Aquaponic

NurseryFood

Processing

Water Treatment

Water Treatment

Fish wastewater Shrimp wastewater Nutrient Water

Nutrient Water

Algae to Fish

AGD Sustainable FarmPreliminary Design

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AGD Healthcare & Skills Development CenterPreliminary Design

Biodigester units

Gas Turbine-Genset

Biogas

CO2 to Algae Ponds

Visitors Center, Shop, Restaurant, kids playground

Healthcarecenter

Parking area

Education Center/

Dorm Rooms

 Nursery for hydroponic plant propagation,  shrimp & fish

hatchery

Laboratory space and area for practical training of students

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AGD Sustainable Farm• Fresh Vegetables/Fruits/Herbs

– Production: 9,200 tons/yr• Lettuce• Spinach• Tomatoes• Green/Red/Yellow Peppers• Zucchini/Baby Marrow/Brussel sprouts• Strawberries• Raspberries• Blueberries• Edible Sprouts• Herbs

– Sales revenues: $33.2 million/yr

• Seafood– Production: 435 tons/yr

• Nile Tilapia• Red Tilapia• Shrimp/Prawns

– Sales revenues: $ 2.8 million/yr

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AGD Sustainable Farm

• Livestock/Fish Feed– Production: 5,800 tons/yr

• Barley Fodder• Algae Feedcakes

– Sales revenues: $ 2.2 million/yr

• Algae-derived Nutritional Supplements & Oils

– Production: 200 tons/yr• Spirulina• Chlorella• High-Omega3• Low-Omega3

– Sales revenues: $ 2.8 million/yr Confidential

AGD Sustainable Farm• Additional benefits:

– Maximum Productivity•Produces 5X the food volume per square meter of the world’s most fertile soil

– Minimal Water Footprint•Rainwater harvesting (50,000 cubic meter/yr) provides freshwater for all our growing operations

– Jobs & Skill Development•Offering over 180 good paying full-time employment opportunities (20 managers & 160 workers), plus hands-on training for another 600 per year from our Skills Development Center

– Fully Scalable•Our system requires no arable land & can be built across Africa

– Environment•Offsets 1,650 tons/yr of CO2 & 40,000 tons/yr of Methane, with a market value of $130 million

•Provides over 4 billion calories/year from food & 3.5 billion calories/year from animal feed for assisting food-aid organizations

Confidential

AGD Education/Skills Development Center

• Our AGD Institute will be providing classes of 150 students with a free of charge, 3-month, hands-on skills development program

• Low student-to-instructor ratio (10 students per instructor)• Focus will be on bringing students up to speed on everything it takes to run & manage

an integrated zero-waste farming system– Aquaponic systems– Algae cultivation & processing– Renewable energy technologies– Adapting commercial-scale farming techniques & technologies to smaller-scale farms– Carbon offset programs– Healthcare training program– Business development training

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AGD Healthcare Center(agreement currently under negotiation)

• Offering the local community & neighboring townships 20-25 healthcare treatment rooms

• Staffed by 12 professionally trained personnel• Providing 30,000+ treatments/yr• Healthcare skills development program as part of AGD’s Education

Center

Confidential

AGD Healthcare Center• All Healthcare services & training provided free

of charge through an innovative “Healthcare offset” funding mechanism, provided by Linkedcare & SonoPay.

(c) Sonopay LLC & OpenSparkz LP 2013 Confidential - Draft - Not for distribution

Doctors make their time available for linkSono

LinkSono aggregates all doctors with same practice and creates Practice Calendars where remote consultations or competence transfer can be booked

1

Local Doctors, Nurses or other medical support book consultations according to their need

General Practitioner Cardiologist Ophthalmologist

... ...

• 3G networks and smartphones available in all of Africa (600m phones)

• Doctors and patients can use LinkSono in Africa to bridge the gap

• Doctors in Europe or US make time available free-of-charge to assist doctors and patients in Africa

• OpenSono promote MobileEducation apps for smartphones in Africa

AGD Visitors Center• Daily Visitors

– Providing 100+ adults & children with education enrichment on our operations, partner opportunities & living a sustainable way of life.

– Staffed by AGD Skills Development Center students & community volunteers– Because the AGD Sustainable Farm is an ideal forum for illustrating real life science

concepts, we have developed educational materials and make our systems available to schools, zoos, museums and other public venues. 

•Some of these concepts include: the nitrogen cycle, the role of bacteria in ecology, water ecology, living systems, life cycles, the science of food production, and hydrodynamics

Confidential

Powered by 100% renewable energy• Utilize our waste products in our Advanced Waste-to-Energy system (4.5

MW)• Entire power generation system can be funded by CO2 & Methane

remediation offset credits

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African Green DevelopmentsStrategic and Potential Partners

• Neotel (agreement pending)– Sunil Joshi, Managing Director & CEO

• OpenSono/SonoPay/LinkSono– Declan Conway, Founder & Chairman

• Linkedcare– Hans-Erhard Reiter, Founder & CEO

• Texas Agrilife Research Center/Mariculture Program, TAMU (agreement pending)

– Dr. Addison Lawrence , Senior Faculty Fellow

• Royal HaskoningsDHV– Erik Tshwele– Simon Lechtman

• Terra Endeavors– Charles Abramson, Founder & CEO

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African Green DevelopmentsSenior Management Team

• Leon-Valerie Eremin– Chairman & CEO

• Charles Abramson, PhD– President

• Pieter C Naudé– Director , Finances / Finzone

• Blanche Mogorosi– Director, Renewable Energy

• Diomede Nkurunziza– Director, Community Relations

• Bellina Eremina– Director, Admin and HR

• Lilian Mello– Chief Legal Council

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AGD Sustainable Farm• Algae Cultivation• For high-value fish/livestock feed, nutrition supplements, oil rich in

Omega3 & pigments

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AGD Sustainable Farm• Shrimp Cultivation

– Utilizing ‘Super-Intensive Shrimp Raceway Farming’ method– 15-20 times the productivity per square meter of intensive shrimp

farming

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• Aquaponics– Combines Aquaculture with Hydroponics inside a series of

climate-controlled, LED lit, multi-span greenhouses – Produces 5X the vegetables/fruits/herbs than conventional

farming with 5% of the water– Instead of having to rely on chemical nutrients for a hydroponic

system, fish waste is biologically converted into nutrients the plants/fruits/herbs need to grow

AGD Sustainable Farm

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AGD Sustainable Farm, Healthcare& Skills Development Center

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SYSTEM SIZE (sq meters) 150,000

ALGAE  Spirulina production (sq meters) 1,250 Chlorella production (sq meters) 1,250 Duckweed/Wild algae production (sq meters) 1,250 High lipid/Rapid growth algae production (sq meters) 22,797 Subtotal 26,547

AQUACULTURE  Nile Tilapia (sq meters) 10,310 Red Tilapia (sq meters) 10,310 Shrimp/Prawns (sq meters) 4,000 Subtotal 24,620

HYDROPONIC  Lettuce (sq meters) 14,850 Spinach (sq meters) 14,850 Tomatoes (sq meters) 11,138 Califlower/Broccoli/Brussel Sprouts (sq meters) 11,138 Green/Red/Yellow Peppers (sq meters) 14,850 Zucchini/Baby Marrow/Eggplant (sq meters) 11,138 Strawberries (sq meters) 2,784 Raspberries (sq meters) 2,784 Blueberries (sq meters) 2,784 Barley fodder (sq meters) 1,169 Sprouts (sq meters) 344 Herbs (sq meters) 11,138 Subtotal 98,965

RENEWABLE ENERGY  Biodigester plant (sq meters) 3,352 Gas Turbine/Power Generation (sq meters) 50 Subtotal 3,402

Food Processing Facility (sq meters) 200 Other facilities (sq meters) 20,886

AGD Sustainable Farm, Healthcare& Skills Development Center

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Managers Workers Combined

Commercial Farm

18

134

152

Skill Development Centers

Healthcare center

1

11 12

Visitors center

1

- 1

Education center (1st stage)

1 8

9Education center (2nd stage) 7 7

Subtotal

3

26 29

Total

21

160

181

AGD Sustainable Farm, Healthcare & Skills Development Center

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Functional Divisions

1 Algae2 Aquaponics3 Nursery4 Food Processing/Packaging5 Education center

Academic programDorms/Common Space

6 Healthcare center7 Visitors center8 Logistics/Supply Chain9 Energy Generation/Distribution

Waste-to-EnergySolar

10 Business Development11 IT12 Facilities Maintenance13 Security14 Human Resources15 Legal16 Community Relations

AGD Sustainable Farm

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ANNUAL ANNUALPRODUCTION (in kgs) SELLING PRICES (per kg) SALES REVENUES

HYDROPONICSLettuce 2,171,800 $2.50 $5,429,600Spinach 1,104,800 $3.00 $3,314,300Tomatoes 665,900 $2.50 $1,664,900Cauliflower/Broccoli/Brussels sprouts 665,900 $4.00 $2,663,800Green/Red/Yellow Peppers 770,400 $4.50 $3,466,800Zucchini/Baby Marrow/Eggplant 665,900 $3.50 $2,330,800Strawberries 197,400 $2.50 $493,600Raspberries 125,200 $6.75 $845,400Blueberries 125,200 $5.40 $676,300Sprouts 1,655,800 $3.00 $4,967,500Herbs 1,095,300 $6.75 $7,393,400Sub-total 9,243,600 $33,246,400

AQUACULTURENile Tilapia 158,500 $4.50 $713,300Red Tilapia 182,200 $4.50 $820,000Shrimp/Prawns 94,500 $13.50 $1,275,800Sub-total 435,200 $2,809,100

ALGAESpirulina nutrition supplements 12,500 $35.00 $439,100Chlorella nutrition supplements 10,300 $40.00 $410,600Algae Oil (high in Omega3/EPA) 21,800 $27.50 $600,600Algae Oil (low/no Omega3/EPA) 156,900 $8.50 $1,333,500Sub-total 201,500 $2,783,800

Animal FeedFish/Livestock feed 247,900 $2.00 $495,800Barley Fodder 5,579,400 $0.30 $1,673,800Sub-total 5,827,300 $2,169,600

TOTAL 15,707,600 $41,008,900

AGD Sustainable Farm, Healthcare& Skills Development Center

• Sustainable Farm Operations– Total Revenues $41.0 million/yr

– Cost of Goods Sold $22.2 million/yr

– Gross Profit $18.8 million/yr

– Net Profit $11.5 million/yr

Confidential

AGD Sustainable Farm, Healthcare& Skills Development Center

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Debt Funds needed

Funds Needed By Amount

Interest rate

Monthly Payments

Begin

Amount Outstanding

when Monthly

Payments Begin

Monthly Payment Amount

Funds Fully

RepaidPHASE 0 11/11/2013 $1,250,000 9% 11/9/2015 $1,506,733 $43,741 11/5/2018PHASE 1 5/5/2014 $5,600,000 7% 4/25/2016 $6,254,354 $181,999 4/22/2019PHASE 2 3/2/2015 $600,000 5% 2/27/2017 $643,947 $18,028 2/24/2020PHASE 3 1/4/2016 $0 5% 1/1/2018 $0 $012/28/2020PHASE 4 10/24/2016 $0 5%11/19/2018 $0 $010/18/2021

Total Debt Needed $7,450,000 $200,027

Transfer funds across phasesPhase0 Phase1 Phase2 Phase3

Phase1 $2,600,000 Phase2 $6,000,000 $4,400,000 Phase3 $6,100,000 $10,600,000 - Phase4 $5,800,000 $8,400,000 $1,000,000 $550,000

After initial investment, our activities are primarily internally funded (over $40 million)

AGD Sustainable FarmCash Flow Cash Flow Cash Flow Cash Flow Cash Flowper m2/yr per m2/yr per m2/yr per m2/yr per m2/yr

Animal Feed Spirulina ChlorellaAlgae oil (high in

Omega3/EPA)Algae oil (low/no

Omega3/EPA)

$3.01 $30.58 $31.84 $7.76 $10.30

Cash Flow Cash Flow Cash Flow Cash Flow Cash Flowper m2/yr per m2/yr per m2/yr per m2/yr per m2/yrNile Tilapia Red Tilapia Shrimp/Prawns Lettuce Spinach

$19.33 $22.23 $48.27 $61.35 $39.11

Cash Flow Cash Flow Cash Flow Cash Flow Cash Flowper m2/yr per m2/yr per m2/yr per m2/yr per m2/yr

Green/Red/Yellow Peppers Barley Fodder Sprouts Herbs Total$22.40 $283.48 $4,606.90 $127.91 $46.88

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AGD Sustainable Farm, Healthcare& Skills Development Center

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Discount rate Facility’s Net Present Value

10% $125,055,648 15% $74,798,672 20% $48,109,608

AGD Sustainable Farm

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Direct Costs Unit All-in Costs Unit Selling Price UnitHYDROPONICSLettuce $1.44 per kg $2.35 per kg $2.50 per kgSpinach $1.70 per kg $2.80 per kg $3.00 per kgTomatoes $1.44 per kg $2.32 per kg $2.50 per kgCauliflower/Broccoli/Brussels sprouts $2.68 per kg $4.00 per kg $4.00 per kgGreen/Red/Yellow Peppers $3.10 per kg $4.60 per kg $4.50 per kgZucchini/Baby Marrow/Eggplant $2.37 per kg $3.52 per kg $3.50 per kgStrawberries $1.44 per kg $2.33 per kg $2.50 per kgRaspberries $4.41 per kg $6.68 per kg $6.75 per kgBlueberries $3.57 per kg $5.37 per kg $5.40 per kgBarley Fodder $0.17 per kg $0.29 per kg $0.30 per kgSprouts $0.62 per kg $1.19 per kg $3.00 per kgHerbs $3.61 per kg $6.14 per kg $6.75 per kg

AQUACULTURENile Tilapia $1.75 per kg $3.63 per kg $4.50 per kgRed Tilapia $1.75 per kg $3.63 per kg $4.50 per kgShrimp/Prawns $6.37 per kg $14.96 per kg $13.50 per kg

ALGAEFish/Livestock feed $1.01 per kg $2.06 per kg $2.00 per kgSpirulina nutrition supplements $20.37 per kg $40.83 per kg $35.00 per kgChlorella nutrition supplements $22.60 per kg $46.76 per kg $40.00 per kgAlgae Oil (high in Omega3/EPA) $18.01 per kg $31.32 per kg $27.50 per kgAlgae Oil (low/no Omega3/EPA) $1.75 per kg $3.63 per kg $8.50 per kg

COMMERCIAL SALES

AGD Sustainable Farm

Confidential

Completion Date 12/9/2013 12/9/2013 9/29/2014 7/27/2015 5/30/2016 3/20/2017

Phase0 Phase0EASAP Phase1 Phase2 Phase3 Phase4 TotalCO2 offsets

tons/yr 0 400

18,300

162,200

323,700

363,400

868,000 $15.00per ton

10yrs $0 $50,000 $2,740,000 $24,330,000 $48,550,000 $54,510,000 $130,180,000

Water offsetsm3's of freshwater/yr

89,200

297,500

186,700

307,800

367,300

373,400

1,621,900

$5.00per m3 of freshwater

10yrs $4,460,000 $14,870,000 $9,340,000 $15,390,000 $18,370,000 $18,670,000 $81,100,000

Calorie offsets

Food calorie units/yr

50,400

278,600

444,600

598,800

635,700

2,008,100

Feed calorie units/yr

172,600

1,726,000

258,900

434,400

598,400

622,500

3,812,800 10yrs

$5.00per 1,000 Food kcals $2,520,000 $13,930,000 $22,230,000 $29,940,000 $31,780,000 $100,400,000$1.00per 1,000 Feed kcals $1,730,000 $17,260,000 $2,590,000 $4,340,000 $5,980,000 $6,220,000 $38,120,000

Arable Land offsets

Arable Land offset 1,038

3,460

2,019

3,425

4,107

4,176

18,226

$10.00per ha of arable land $100,000 $350,000 $200,000 $340,000 $410,000 $420,000 $1,820,000

10YrsTotal Offset Value $8,810,000 $32,530,000$28,800,000 $66,630,000 $103,250,000 $111,600,000 $351,620,000

PROJECT’S TOTAL OFFSET FUNDING POTENTIAL