ENVALOR LIMITADE Project: Ethanol / Electricity Co-generation Plant Mozambique, Manica Province November 5, 2009

Envalor Limitade 2 A Company Formed in Mozambique Focus - Infrastructure Development Project: Fuel Grade Ethanol plant Million Litres Electricity generation plant - 32 MW/h ha of Cultivated land (Sugar Cane, Dry Beans) Estimated Project Cost: US$ 330 Million

Lead Developer - InfraCo Focus: Infrastructure Project Development that promotes Sustainable Socio- Economic Growth; Region: Sub-Saharan African Region; Sectors: Energy, Transportation and Water; Infraco has a number of projects underway in Africa: Uganda - Multi Utility Project (Project Cost: US$ 40 Million); Cape Verde - Wind Power (Project Cost|: EUR 55 Million); Zambia - Irrigated Farm Development (Project Cost: US$ 25 Million); Ghana - Gas Fired Power Plant (Project Cost: US$ 300 Million); Mozambique - InfraCo is playing a lead role in developing an “investment blueprint” for the Beira Agricultural Growth Corridor (BAGC); 3 Infraco is working with Casachron to carry out this project.

Project Scope Produce 150 Million Litres of anhydrous fuel grade Ethanol Sugar cane (Primary feedstock); Sweet Sorghum (Secondary feedstock); Sold to the export market with availability to the domestic market; Produce 32 MW/h Electricity (Bagasse) An estimated 22MW/h used by the plant and the excess exported to the national grid; Food production The production of tonnes per annum of dry beans is planned; Agriculture To deliver feedstock to the plant and produce food, approximately ha of cultivated land will be developed; 4

Product Ethanol Production Million Liters per annum Biochemical process from Sugar cane juice or molasses; Product Demand There is a global annual increasing demand for ethanol as a vehicle fuel, which has been concluded as an excellent energy alternative to oil; The EU is anticipated to face an ethanol deficit of up to 7.5 Billion Liters per annum by year 2020; It is envisioned that a considerable volume of this Ethanol could come from Africa; 5 Ethanol Plants – Colombia, Brazil

Product Electricity Production - Bagasse > Boiler / Steam / Electrical Power - 32MW/h We plan to use a high pressure bagasse - fired boilers/steam system to generate electricity; 22 MW/h is estimated to be used by the plant; 22 MW/h is estimated to be used by the plant; 10MW/h is estimated to be tapped off to the national grid; Bagasse is considered renewable and environmentally neutral; 6 Power Lines - fairly close to site Bagasse Boiler / Turbine

Product 7 Agriculture Food Production – Soya Beans considered (Protein) Based on Mozambique’s food needs Sugar cane and Sweet sorghum production

Project Goals A cost effective commercially viable operation; Environmentally - non-invasive; A quality product delivered - Fuel Grade Ethanol for the export market with availability to the local market, Electricity, Food; Environmentally friendly electricity generation - excess for local market; Food production and fuel security for the host country Mozambique; Through an estimated 1800 Jobs created, an improved standard of living for the residents in the area and a considerable impact to the economy; Transfer of skills to previously disadvantaged communities; A new market for farmers, jobs and social and health care services; The project is focused on complying with the requirements as set out in the “political and strategic framework for biofuels of Mozambique”; 8

Mozambique’s Needs This project is intent on complying with all of the requirements as outlined by the Mozambique Government, which are broadly: Significant project participation by the local community and Mozambique in general; The local community to be respected; Food to be produced; Mozambique to have first rights to Ethanol at market prices; 9 The Mozambique Government has confirmed its commitment to the bio-fuel program

Environment & Social Strict Compliance - Through execution there will be strict compliance with World Bank / IFC and Mozambique (MICOA) environmental and social standards; Environmentally positive - Ethanol and electricity production using sugar cane and sweet sorghum as the feedstock will be positive on the environment; Infrastructure - In a controlled fashion to insure effective execution, the project proposes to allocate funding for housing and relocation for the local community; Employment - It is anticipated the operation will employ approximately 1800 People; 10

Business Case A preliminary financial model, with assumptions, represents the project as financially feasible; US$ 330 Million is the estimated turnkey cost of developing: ha Cultivated Land; 150 Million Litre Anhydrous Ethanol Plant; 32 MW/h Electricity Generation Plant; The cost of the project will be confirmed when assumptions and additional cost variables have been qualified. 11

Assumptions Agricultural Assumptions - Water (volumes and cost of sourcing); Soil type and quality across site; Feedstock yield - general agricultural variables; Technical Assumptions - cost and volumes of product produced; Environmental and Social Assumptions - useable area ; Logistics Assumptions - Haulage and transportation costs; Legal and Regulatory Assumptions. 12

Site Selection And Location Why This Site? A high-level evaluation has been executed on this site which confirms the following: Good indicative potential for the required water volumes and costs to source water; Good indication of the required soil types and soil quality across the site; Indicated to be environmentally and socially manageable; Good road infrastructure to Beira for distribution of product; Access to electricity transmission lines - fairly close to the site; Identified to be available (No concession held on the site). 13

Development Process 14

Next Steps Fatal Flaw Analysis Provincial Authorities endorsement of the project and the use of the land identified for the project; Formal application for the land; Environmental and social assessment pre-scoping ; Detailed assessment of soils, water and irrigation; Begin Development Phase 15