1. © Papyrus Australia Ltd 2009 PAPYRUS AUSTRALIA LTD Paper, Veneers, Board & Fibre from Banana Tree Trunks Progress Update

2. © Papyrus Australia Ltd 2009 Origin of the Products BTT Outer (Round Up)  High cellulose content  MDF, chipboard, hardboard  Paper manufacture BTT Inner (Core)  Decorative veneers  Paper  Laminates The Papyrus Technology successfully unlocks the potential of the Banana Tree Trunk (BTT), an unutilised product of fruit production. Over 1.5 billion tonnes of BTT are cut annually and left on the ground to rot. The Banana Tree Trunk (BTT) Cross Section

3. © Papyrus Australia Ltd 2009 Volume & Value Relationship Value $/m 2 Volume Veneers Fibre Paper $5 - $10 $2 - $3 < $0.50

4. © Papyrus Australia Ltd 2009 Why Veneer? High Value Lower, accessible volume Matches with initial production capacity that PPY can achieve (in the short term) High strategic visibility In-house expertise Capable and committed Customers Physical properties of PPY product are superior to current products, with excellent environmental credentials.

5. © Papyrus Australia Ltd 2009 Why Fibre? Intermediate Value Lower, accessible volume Matches with initial production capacity that PPY can achieve (in the short term) with long term sustainability Strategic visibility Physical properties of PPY product are superior to current products, with excellent environmental credentials.

6. © Papyrus Australia Ltd 2009 What About Paper? Long term supply option from both sheet and fibre sources High volume Long term sustainable supply Strategic option for less sophisticated markets Physical properties of PPY product are superior to current products, with excellent environmental credentials.

7. © Papyrus Australia Ltd 2009 Papyrus Manufacturing The major milestone achieved! Engineering & Production Plan (June 2008) implemented and completed. Scale up production by increasing supply of labour. Fibre cutting machine ready to commission. Veneer shipments to EU Customers will increase.

8. © Papyrus Australia Ltd 2009 Papyrus Business Model Working with Inventure Partners to construct the production & financial costing model. Financial Model Production Data (Walkamin, NQ) Marketing & Sales Data (From 3W Tout Bois) Business Model (Ready for Expansion) Products Income Data

9. © Papyrus Australia Ltd 2009 www.papyrusaustralia.com.au