Environmental Partners International

offers a Presentation to:

Mongolia

An opportunity to help save the world’s forests

The world around us
is changing at the
staggering pace
Continued deforestation will result in the
elimination of thousands of our planet’s
habitants; unique animals, plants and
species.
 Our planet’s future is a present with an
immediate and serious problem,

…that under the right economic and

environmental model provides opportunity
for all participants.
 Deforestation
•  Forests are one of the most potent ecosystem regulators.
•  Forests are essential to sustaining the quality of life we enjoy
by regulating atmospheric carbon.
•  Earth deforestation accounts for almost one-fifth of the
world’s human induced carbon emissions, exceeding all
global pollutants combined.
•  Forest destruction is crucial to Earth’s ability to regulate its
environment.
•  Deforestation creates an environmental dynamic, negatively
impacting human sustainability.
•  Forest users and owners are often “marginalized indigenous
communities” that are forced to cut down the forests to
provide themselves with a one-off income stream through
timber sales.
•  The cleared lands are often used for grazing and farming,
contributing massive volumes of carbon emissions into the
atmosphere.

•  Developments in international policies regarding climate

change provide a new approach to this old problem.
 Environmental Model

•  • The opportunity model utilizes a fund, that provides

•  the necessary capital required to develop rainforest
•  protection projects that earn carbon credits.

•  • Under international climate change protocols,

•  landowners can earn carbon credits by protecting their
•  forests from logging.

•  • Designed as an incentive for the landowners and

•  project development firms, the environmental delivers
•  greater profits and returns from the carbon credits; than the
•  money to be generated from logging ventures.

•  In Summary: Each fund protects a portfolio of forest

•  areas that produce a specified amount of carbon
•  credits.
 Summary
•  • Each fund protects a portfolio of forest areas that
produce a specified amount of carbon credits.

•  • The fund operates at a $10m or $20m tier, returning 50m

or 100m carbon credits respectively.

•  • At the end of the period, there are usually carbon credits

in excess of the specified amount.

•  • The carbon credits, and commensurate returns, are

divided between the landowners, the project development firm
and its in-country partners, the investors, and the fund manager.

•  • Each 1M acres of land, will generate an estimated 30M

•  dollars per year, to the landowners. This is based upon $3 per
ton of carbon credits, which in today’s market is historically low
and is projected to increase in future hypothecations.

•  Mongolia’s estimated payment per year for 20 years is ±750M

•  (subject to verification and due diligence.)
 Project Developers

•  • Environmental Partners International (“EPI”) is the

Project Developer working with in-country partners in any
given state’s designated forest territories.
•  • EPI is one of the early participants in the climate
change industry and carbon economy.
•  • EPI has been in the forefronts of the global forest
protection project development, known as REDD (Reduced
Emissions from Deforestation and Degradation).
•  • EPI has developed world-leading and innovative
intellectual property for the forest protection market.
•  • The company has been developing various projects
since 2010 and has projects under development and
review in various parts of the globe.
 Landowner Returns
•  The landowner receives 50% of the returns on an average
project. This incentive provides the participants the
necessary revenues to prevent deforestation under the
described environmental model.
•  The returns are annual revenue streams. Each project can
run for a minimum of 20 years and a maximum of 30 years.
•  No funding is required from the landowners.
 Example Project - Senegal
Senegal has more than 11 million hectares (1 hectare is about
2.5 acres) of tropical forest forming the habitat for 188 known
mammal species 330 species of birds and 20 amphibians.
Senegal’s has 0.48% rate of deforestation, losing an average of
45,000 hectares per year.

The Senegal Project is 400,000 hectares of forest in Matam

and Tambacounda Districts of East Senegal. These projects
comprise an area about the size of the state of Rhode Island.

The Senegal revenue to the landowners, on the 11 million

hectares, on a per year basis, is estimated to be $412 Million,
with a minimum term of 20 years.
 Risk Mitigation – Project Level
EPI follows a risk-mitigated process at the project
development level:

Phase 1 — Source and Secure Projects

EPI sources and secures projects with its accredited in-

country partners.

EPI may secure as many projects as the funds permit.

Phase 2 — Determine the Eligibility and Feasibility of the

Projects

EPI develops an Eligibility and Feasibility Methodology to

determine:

•  First whether a potential project is eligible under

international standards, and
•  Second whether a project is economically feasible.

Unless a project passes the EPI’s Eligibility and Feasibility

criteria, it will not be developed.
 Risk Mitigation – Project Level
Phase 3 — Develop the Project to Certification

EPI pioneered and has develop large-scale projects,

using proprietary methodologies for the conversion of
logged forests to protected forests.

This methodology is a cornerstone of EPI’s project

development work, and reduces the cost and mitigates
the risk of development projects significantly.

Phase 4 — Market and Trade the Carbon Credits

EPI has a deep-rooted marketing and trading operation

for selling carbon credits to banks, trading firms, and
energy companies. This marketing capability permits EPI
to presale carbon credits.

EPI undertakes other risk analysis and economic

feasibility studies to maximize potential success and
minimize risk for each project.
 Fund Returns
$20M Fund Return Analysis: 5 years, 100M Credits

Returns Credits Example Price Total Proceeds

100% 100,000,000 $5.00 $ 500,000,000
Distribution
50% To Forest Owners 50,000,000 $5.00 $ 250,000,000
40% To Project 40,000,000 $5.00 $ 200,000,000
Developers
10% To the fund 10,000,000 $5.00 $ 50,000,000

Net Fund Return less

Fund Return% per
Price of Credits Net Fund Proceeds Management Fees –
annum/5 yr
10%

$3.00 $ 56,000,000 $ 5,600,000 44.8%

$4.00 $ 76,000,000 $ 7,600,000 60.8%
$5.00 $ 96,000,000 $ 9,600,000 76.8%
$6.00 $ 116,000,000 $ 11,600,000 92.8%
$7.00 $ 136,000,000 $ 13,600,000 108.8%

Thinking another way, the $20M investment generates 20M credits. Credit ownership, or break even
analysis as an investment, is 1$ per ton. With VCS/CCBA credits having traded at between 7-11$ per
credit in 2010, with market fluctuations taken into account, this is a calculable risk. Note that these
calculations do not take into account the presale of credits to fully return initial capital at approximately
12 to 18 months.
 Privacy Policy
It is the Policy of Environmental Partners International LLC., to keep confidential non-
public personal information pertaining to each current and former client and or investor
(i.e., information and records pertaining to personal background, investment objectives,
financial situation, investment holdings, account numbers, account balances and the like)
unless the Environmental Partners International LLC is:
Previously authorized to disclose information to individuals and/or entities not affiliated
with the investment advisor, including, but not limited to the client's and or investor's other
professional advisors and/or service providers (i.e., attorneys, accountants, insurance
agents, broker/dealers, investment advisors, account custodians, and the like); or,
Required to do so by judicial or regulatory process; or,
Otherwise permitted to do so in accordance with the parameters of Regulation S-P.
The disclosure of such information contained in any document completed by the client
and or investor for processing and/or transmittal by the investment advisor, investment
manager or related entity in order to facilitate the commencement, continuation, or
termination of any business relationship between the client, investor and/or non-affiliated
third party service provider (i.e., broker/dealer, investment advisor, account custodian,
insurance company, and the like), including information contained in any document
completed and/or executed by the client and/or investor for the investment advisor/
investment manager or related entity (i.e., advisory agreement, client and/or investor
information form, and the like), shall be deemed as having been automatically authorized
by the client and/or investor with respect to the corresponding non-affiliated third party
service provider. Each individual and/or entity affiliated with the investment advisor or
investment manager or related entity is aware of the aforesaid privacy policy and has
acknowledged his or her or its requirement to comply with same. In accordance with this
privacy policy, each such affiliated individual and/or entity shall have access to information
to the extent reasonably necessary for the performance of its service for the client and/or
investor and to comply with regulatory procedures and requirements.