S.I.V. Holdings Ltd (hereafter referred to as the “Company” or “SIV”) currently operates one plant with 2 Mt/hour production capacity in Ivano-Frankivsk region

The Company has already chosen four additional locations for production sites and have preliminary agreements with local authorities to secure long-term development. Each location has a sufficient raw material base (one in Rivne and three in Ivano-Frankivsk region)

SIV benefits from the following advantages:− Excellent location: close proximity to European Union

SIV production location

Project descriptionOverview of the Company

− Excellent location: close proximity to European Union (EU) – the largest and most prospective market for SIV products

− Potential sales agreements directly with power producers

− Availability of detailed and comprehensive financial model and business plan, highlighting clear vision and distinct focus on future operations of the Company

− Strong management team in place with well-developed political and financial connections, which is fully qualified to lead the Company to the next stage of its development

− Ongoing discussions about private placement with several potential Strategic Investors

Management:Strong management team in place with well-developed political and financial connectionsProduction:Existing production – 2 Mt/hour;All four additional locations for future production sites have preliminary agreements with local authorities already in placeProcurement:Harvested lumber in 2008:Ivano-Frankivsk – 865 ths. m3(Source: Appendix 1)Rivne – 1,321 ths. m3(Source: Appendix 1)

Demand Currently, the market for pellets is moving through its

growth phase, supported by Europe, which has evolved into the largest consumer of wood pellets in the world. Consumption in 2008 is estimated to be over 8 million tons, with Sweden, Denmark, the Netherlands, Belgium and Italy being the largest consumers on the continent

Geographical location of Ukraine is one of the major factors, which contributes to business development with EU

EU production vs. demand projections (mln tons)

Project descriptionOverview of the Industry

EU It is estimated that production as well as demand will

double over the next 4-5 years and some industry experts forecast an annual growth of 25-30% globally over the next ten years

Supply Currently there is a clear playing field for pellet production

in Ukraine. According to some market experts, there are no more than 15 wood pellets production plants in Ukraine at this moment. Annual pellets production output in Ukraine is estimated to range from 20,000 to 200,000 tones, but is highly fragmented, poorly financed, and mostly relying on outdated technology

Overview of all EU pellet production plans

Source: www.pelletsatlas.info

Source: Market experts’ estimate

SIV aims to harness the vast amount of Ukrainian-based waste, and steward this renewable asset in a sustainable, and environmentally friendly way to provide for a cleaner and safer world

The Project further stipulates an increase in the Company’s production capacity to 40 plants by construction of additional 39 plants

The development plan envisions an increase in the total quantity of plants by nine units over the first 24 month period. As soon as the Company operates ten plants, it will

Project descriptionOverview of the Strategy

period. As soon as the Company operates ten plants, it will generate surplus cash that can be reinvested to meet future investment costs

The Company’s management also looks for further opportunities to merge with a well-managed, Ukrainian Agricultural Company in order to safeguard and diversify its raw material resource base for its growing production

Note 1: MBP - Mixed biomass pellets are a newcomer on the pellet market. Due to low production costs this biofuel became very attractive. MBP can be produced from straw, grains, various types of grass, leguminous plants, flowers, fruit and a mixture of these materials (with some wood added).

The source of raw materials for pellet production in Ukraine is closely connected with wood-working and agricultural industries

Wood-working output and waste in Ukraine Experts agree that throughout the different stages of

production process in the timber and wood-working industry, wood waste may comprise up to 50% of the output

Based on wood industry experts representation there were approximately 15 million cubic meters of liquid lumber

Wood-working output and wood waste in Ukraine

Project descriptionRaw material base (Wood waste)

approximately 15 million cubic meters of liquid lumber harvested in 2008 (see Appendix for details). If smaller, ‘mom & pop’, sawmill operations are taken into account, this figure doubles

Source: Ukrainian Statistics & Management’s estimate

Agricultural Production output and agricultural residues in Ukraine Based on experts’ representation, there is 1.5-2.0 tonnes

of straw, on average, for each tonne of cereal and oilseed crop produced. Based on USDA data the crop production for 2009 is 39 million tonnes which produced from 65 to 77 million tonnes of straw, the majority of which was either shredded behind combines or burned in the field

An Agricultural Company harvesting 30 thousand hectares, with an average yield of 3 tonnes per hectare will

Cropping and Residues 2007- 2009

Project descriptionRaw material base (Residues)

hectares, with an average yield of 3 tonnes per hectare will potentially produce enough straw for producing approximately 90 thousand tonnes of pellets and leave one tonne of straw per hectare for soil conservation and replenishment

Thus, in a further measure to sustainably ‘backup’ the company with straw required for production of up to 500,000 tonnes of pellets, SIV would require Agriculturally cropped land of circa 160,000 hectares, which represents less than 0.5% of Ukraine’s arable land

Source: USDA Data, Management’s estimate

Financial statements track record The Company implemented International Financial

Reporting Standards (IFRS) and has track record of preparing financial statements under IFRS for the year ended 31 December 2009 and 31 December 20098

Extract of Balance sheet and profit and loss is shown below

FinancialsFinancial statements (IFRS)

Balance sheet as at 31Dec09, 08 and 1Jan08(in UAH thousands) 31Dec09 31Dec08 1Jan08AssetsNon-current assetsProperty, plant and equipment 4,341 4,697 735

Current assetsInventories 569 363 119Trade and other receivables 130 37 4Cash and cash equivalents 2 - -

701 400 123Profit & loss for the year ended 31Dec09 and 082009 2008

Full set of the financial statements is available upon request

701 400 123Total assets 5,042 5,097 858

Equity and liabilitiesEquityStatutory fund 1,645 42 42Reserves 4,040 4,040 -Retained earnings (781) (222) -

4,904 3,860 42Non-current liabilitiesLong-term loans and borrowings 41 52 64

Current liabilitiesShort-term loans and borrowings 11 899 712Trade and other payables 86 286 40

97 1,185 752Equity and liabilities 5,042 5,097 858

(in UAH thousands) 2009 2008Revenues 230 71

Cost of revenues (828) (290)Gross profit (598) (219)

Administrative, selling and distribution expenses (10) (3)Financial income 49 -

Profit before tax (559) (222)Income tax expenses - -

Net income (559) (222)Source: IFRS financial statements

Source: IFRS financial statements

Indicators of investment attractiveness: Taking into account that the Ukrainian government has

moved to support energy saving projects realized inUkraine by income tax exemption for 2009-2013, of whichSIV is party to we have also performed of two scenarios:− Scenario 1 – not tax for 5 years (most probable) − Scenario 2 – normal tax

Based on the above scenarios financial indicators are asfollows:− Project’s net present value amounts to EUR70 to

76.1million real discount rate 14.00− Enterprise value, when the Company will reach its

target production capacity is circa EUR136 million− Project payback period is 4.0 – 5.2 years− Discounted Project payback period is 4.8 – 5.6 years

EconomicsValuation summary

EBITDA (EUR mln) & net profit margin (%) ROI

Source: Management’s estimateSource: Management’s estimate

Project financing It has been assumed that the ten production plants would

be built over a two-year period, with a total capital requirement of circa EUR10.7 – 14.5 million. In practice, because the plants function independently, the rate at which they are constructed can be easily adjusted according to the available funding

The plan is to finance the project with a combination of equity 30% and debt 70% as shown in the tables on the right

Use of funds and financing sources (scenario – NO TAX)in EUR '000 2010 2011 2012 2013 2014 2015Working capital 410 1,101 1,133 1,132 1,274 -CAPEX 9,964 10,020 11,377 11,391 12,804 169

Sawmill waste line 9,401 9,401 10,744 10,744 12,087 -Other CAPEX 563 619 633 647 717 169

Total External financing 7,200 2,436 - 9,636

Equity 2,160 731 - 2,891Loan 5,040 1,705 - 6,745

EconomicsFinancing requironments

right SIV project gives investors a very attractive internal rate

of return (IRR) 51% for 5 calculated based on 5 year period and 94% - 10 year period

Interest rate for the debt financing was assumed to be 12.5% in 2010 with decrease down to 10% starting from 2011

Self financed 3,174 8,685 12,510 12,523 14,078 169

Source: Management’s estimate

Source: Management’s estimate

Use of funds and financing sources(scenario – NORMAL TAX)in EUR '000 2010 2011 2012 2013 2014 2015Working capital 410 1,101 1,133 1,132 1,274 -CAPEX 9,964 10,020 11,377 11,391 12,804 169

Sawmill waste line 9,401 9,401 10,744 10,744 12,087 -Other CAPEX 563 619 633 647 717 169

Total External financing 7,864 4,380 2,142 14,386

Equity 2,359 1,314 643 4,316Loan 5,505 3,066 1,500 10,070

Self financed 2,510 6,741 10,368 12,523 14,078 169

IRR for equity participantsScenario 1 Scenario 2 Average

IRR 5 years 69% 33% 51%IRR 10 years 105% 84% 94%

OrganizationCompany’s Management

Director Chris Chatterton, has extensive experience in building large-scale energy businesses in challenging environments, and in very pioneering roles, in the CIS and Asia, in an executive capacity, to include The AES Corporation, D1 Oils PLC, and Yukos Oil. Most recently, Chris was instrumental in raising initialfunding for Landkom Ukraine, and also one of the founding shareholders in Landkom International PLC

Financial Director

Vladimir Vasyuta is a skilled and qualified financial and business leader uniquely experienced in emerging market sectors. Vladimir has significant experience in fields of business valuations and audit of large Ukrainian enterprises with one of the ‘Big 4’ companies. He has extensive experience in consulting companies in agriculture, telecommunication, chemical, metallurgical and trading sectors

Company BohdanChomiak,

Company Secretary

BohdanChomiak, is an experienced Canadian farmer with over 12 years experience in the Ukrainian Agricultural sector as Director for USAID’s Agriculture Division. In this role, Mr. Chomiak was very influential in policy creation and implementation, and in advising and consulting both governments and private companies in the acquisition of Ukrainian farmland

OrganizationLegal and ownership structure

Note: All shareholders are founding shareholders except for Revane Ltd

This document is provided on the basis that it is kept CONFIDENTIAL and its circulation and use are RESTRICTED. It should not be copied or sent to any other person/party without the express permission of S.I.V. Holdings Ltd

This document has been prepared because S.I.V. Holdings Ltd intends to raise funds to execute its business plan, which may include bank loans, merging with a strategic partner to form a joint company, or the sale of a significant equity stake

In providing this document, S.I.V. Holdings Ltd. reserves the right at any time to make changes or fully replace it. Nothing in this document may and should be deemed to be or interpreted as an obligation or promise regarding the future

For any information relating to this opportunity, please, contact:

Disclaimer and Contact details

Bohdan Chomiak This document includes the basic information, estimates

and forecasts, which have been prepared by S.I.V. Holdings Ltd. This document is provided exclusively to assist interested parties in making decisions on the advisability of further study of the investment opportunity. Any recipient of this material should conduct its own analysis of the potential investment, and understand that the receipt of this material from S.I.V. Holdings Ltd in no way signifies confirmation that the Transaction is justified

S.I.V. Holdings Ltd will not be liable in any way for any representations or warranties directly or indirectly contained/arising from this material

Bohdan ChomiakCorporate Secretary S.I.V Holdings Ltd.Tel: +380 67 4030258Bohdan@ebtpelletfuel.cominfo@ebtpelletfuel.com

Appendix 1Harvest liquid lumber, 2008