GEA's Own Timber Plantation

Within the first six months of field operations, between April and September 2010, GEA Timber Ventures, Inc. has successfully started its own timber plantations in Luzon and Mindanao.

In Luzon, GEA Timber Ventures, Inc. has begun a partnership with the Aetas belonging to the Gayaman Indigenous Cultural People's Association (GICPA) Inc. in Gayaman, Bamban, Tarlac Province. We have leased an initial 50 hectares of deforested lands from GICPA and we have completed site survey and GPS mapping for our own reforestation project there. Out of the total of 25 hectares targeted for planting, we will complete the planting of the initial 10 hectares by September 2010. Planting of the balance of 15 hectares will be completed before the end of this year (2010).

In Mindanao, GEA Timber Ventures, Inc. has started its 100-hectare nucleus timber plantation in Madaguing, Claveria, Cagayan De Oro (Misamis Oriental). Under the nucleus timber plantation module, our company will be able to promote the development of viable timber enterprises, in deforested upland areas, located in relatively difficult terrain, by cutting and processing of the timber at the site. As a result, we will avoid transporting of logs and instead we will focus on transporting sawn timber to the buyers or the buyers will arrange their own transportation.

We have already prepared the site and completed land preparation, where we will complete planting of the first 10 hectares before the end of the year. On Year 2, the company will plant the second batch involving a 30-hectare timber plantation, followed by the planting in Year 3 of the third batch of 60-hectare timber plantation. Under our nucleus plantation strategy, all the timber to be harvested in Madaguing will be processed at the site and marketed through contracts with timber outlets in Cagayan de Oro City.

Furthermore, under the nucleus timber plantation module, our company will provide technical assistance to farmers interested in establishing their own timber plantation by supplying clone seedlings to them, providing advice on improved technology of growing and maintaining their plantation, and support in cutting and processing their harvests and marketing these products. Thus our company will serve as a nucleus for sustainable timber plantation to farmers in the surrounding areas. The members of the community will benefit from seasonal employment during the various stages of our company's plantation development, from site preparation, planting, maintenance, harvesting, processing, and marketing of high-quality lumber products.