TIMBERLAND INVESTMENTS OCTOBER 2010 Overview

ExperiencedExperienced timber timber manager manager with with differentiated unique approach approach and and organizational investment strategy structure

Firm & Team ● Invested $2 billion across 1.8 million acres since inception (1996) on behalf of 2 funds and 9 separate accounts (1) ● Formed in 1905, developed into a timber manufacturer and later evolved into leading Timber Investment Management Organization (“TIMO”) ● Independent, privately-held investment adviser registered with SEC since 2004 ● Strong and diverse team of 67, of which 48 are timber professionals or forestry experts with deep industry expertise ● Differentiation: fully vertically integrated, sophisticated proprietary resources, true alignment of incentives, disciplined at acquisition

Track Record ● Molpus-managed properties achieved a 10.9% gross return since inception vs. NCREIF’s 7.9% gross return (1)(2) ● Molpus’s realized investments have generated 16.8% gross returns (1)(2)

Opportunity & Strategy ● Due to market re-pricing, attractive buying opportunities exist with timber REITs, other TIMOs and manufacturers ● Acquire and actively manage a diverse portfolio of timberland properties primarily in the United States ● Balanced portfolio of properties with an emphasis on diversification by geography, species and age class ● Seek properties with opportunities to create value through active timber management leveraging firm strengths

Fund ● $400 million closed-end fund to make long duration investments in sustainably managed timberland ● Targeting a nominal, unlevered internal rate of return (“IRR”) of 8% - 12% (net of all fees and expenses), inclusive of an annualized, distributable net cash yield of 2% - 4%

(1) Returns exclude one former property where Molpus performed only certain forestry functions and was not responsible for the financial records. This property was neither a holding of the Prior Funds nor an institutional separate account client, and represented only 1.8% of the acreage managed in 2004, the final year of Molpus’s role. (2) The historical returns for both Molpus and NCREIF Timberland Index (Total) are (a) time-weighted, (b) at the property level, (c) unlevered, and (d) presented before fees (as of 6/30/10). The NCREIF Timberland Index employs time-weighted returns using a property level formula that uses accrual income accounting and capitalized investments to calculate a quarter-to-quarter return, which is then geometrically linked to create a holding period return. In addition, Molpus’s returns are audited through December 2008. Audited returns through December 2009 are expected to be available in September 2010.

1 Molpus – Differentiation

Why Choose Molpus?

Fully Independent and Vertically-Integrated Firm ● In-house capabilities driven by connection to clients’ success ● Superior market intelligence for acquisitions and timber sales ● Ability to capitalize on short-term opportunities due to proprietary resources ● Genetic control of seedling stock at Molpus managed nursery Sophisticated Proprietary Resources ● Team of experts in various fields such as soil science and biometrics ● Proprietary GIS system that uses satellite and infrared imaging to capture, store, and analyze properties under management or being acquired ● STEAM – Stand Treatment Economic Assessment Model financially assesses silvicultural inputs, economic parameters and timber outputs ● TIMMS – Timberland Information Management System allows foresters and other employees to access information about acquisitions, forest planning, timber inventory, timber accounting and legal services

True Alignment of Incentives ● Molpus employees’ compensation is financially bound to our investors’ successful results ● Staff members understand each client’s metrics and have the tools to improve performance ● Within every role of the organization, people are motivated to “go the extra mile” ● Employees have participated in 40% of the net management fee and carry Disciplined Acquisition and Disposition Processes ● Integrated team contributes to success at acquisition ● In-depth due diligence that is not outsourced to firms with less expertise (subcontractors are less aligned with client success) ● Risk analysis for host of possible constraints ● Each team member is inherently vested in the assumptions and success of each opportunity

2 Molpus – Performance

Differentiated approach drives attractive and compelling returns

• Molpus Returns Outperform Major Indices – Molpus outperformed the S&P 500, the Russell 2000, and the NCREIF Timberland Index since inception.

• Top Performer in Peer Group – as evidenced by comparison to NCREIF Timberland Index (“NTI”) benchmark: Molpus has outperformed the NTI by 300 basis points since Oct-1997 (10.9% vs. 7.9%).

• Track Record of Success – for sophisticated clients which include endowments, pension funds and family offices.

Periodic Returns – Oct-1997 through Q2-2010 (1)(2)

Since (Unlevered, Gross Return) 1 year 3 year 5 year 7 year 10 year Oct-97

Molpus Composite (3) 4.3% 6.7% 11.9% 15.1% 8.1% 10.9%

NCREIF Timberland Index (Total) -3.6% 6.1% 9.9% 10.2% 7.1% 7.9%

Source: Molpus and NCREIF. (1) In considering performance of investments referred to in these materials, prospective timberland investors should keep in mind that prior performance of Molpus investments is not indicative of future results and there can be no assurance that Molpus will achieve comparable results in the future. (2) The stated returns are presented on a pre-tax “gross” basis which does not reflect the deduction for management fees or incentive fees that would be applicable to an investment in the Fund, and which would reduce the amount received by investors. Molpus’s average gross to net fee spread is 1.79% as of its first investment in 1997. (3) The historical returns for both Molpus and NCREIF are (a) time-weighted, (b) at the property level, (c) unlevered, and (d) presented before fees. Molpus’s returns are calculated consistent with NCREIF Timberland Index, which is a property level formula that uses accrual income accounting and capitalized investments to calculate a quarter-to-quarter return, which then is geometrically linked to compute a holding period return. For further information, please see NCREIF’s “Data Collection and Reporting Procedures Manual.”

3 MolpusReturns – Superior Driven Returnsby Proprietary Management System

Active management approach and vertical integration drives superior returns

Composite Return Comparison Since Inception Results Driven By: October 1997 – Q2 2010 10.9% (1) • Lower cost • Results-oriented incentives • Dedicated value-add team • Peak market timber sales 7.9% • Conservative investment rationale (based on) Income 7.5% – Biological growth • Timber sales 3.9% – Income • Recreation • Acquisition discipline (better • Value Added coverage ratio) • Longer-term focus

Appreciation • Appreciation moderately lower due to • Bare land 3.8% 3.2% Molpus’s focus on early recognition of • Biological income through active management Growth

NCREIF Molpus

(1) Rounding exists between components and composite, so components may not add exactly to the total return. Returns are unlevered, gross of management fees and audited through 12/31/08.

Sources: Molpus Woodlands Group and NCREIF. 4 Molpus – Organization

All core business and forestry functions executed by in-house experts 67 executive, management, and support personnel * 30-70% Compensation Dick Molpus Bonus Opportunity President

* * Bob Lyle Terrell Winstead Executive Vice President Chief Financial Officer

*Investment Committee member

* * Keith Williams Edgar Marshall Ken Sewell Charlie Manogue Michael Cooper Director of Vice President - Chief Operating Vice President - General Counsel Value Added Business Development Officer Acquisitions

Active Management (1) Risk Management Business Operations

Land Geographic Client Biometrics Finance/ Investment Management Information Legal Information Accounting Modeling Admin. Systems & Reports

(29) (3) (4) (5) (2) (5) (10) (1)

(1) Refer to next slide for detailed breakdown of Active Management Number of team members in each functional area (parentheses)

5 Molpus – Organization

Dedicated active management professionals: land management, biometrics, GIS and client reporting

Ken Sewell 20-50% Compensation Chief Operating Officer Bonus Opportunity Robin Sowell Office Manager

Claire Ruth Cook Jim DeWit Keith Hilpp Mark Korkko Don Sanford Mark James Tom Tomlinson Steve Marietta Director of Director of Director of Bain Property Manager Property Manager Property Manager Managing Director Property Manager Information Client Information Land Management Inventory Lake Superior SWF-Birmingham IMA SWF-Ouachita, Red River System And Reports Property Manager- Management Timberlands Joshua II & Director/GIS Joshua I and Planning Oklahoma Manager

Phil Brown Mike Thorn Shane Lee Robb Oldt Clay Holder Wesley Selecman Bryan Turnbull Division Forester Division Forester Forest Forest Manager Division Forester Forest Manager Perry Willis Property Manager Division Forester Joshua I - Lands Joshua I - Lands Biometrician Lake Superior Lands & Harvesting Ataya Pickwick Region Timberlands, LLC

Jerry Mahon Thomas Carr Keith Boyles Stewart Craig Sam Campbell Inventory Division Forester Division Forester John Morgan Division Forester Manager Boone Parklands Joshua I - Harvesting Nursery Manager Brice Young Lands & Harvesting Reagan Kent Division Forester GIS Analyst Lands & Harvesting Manager - Joshua II Lisa Underwood Timothy Burpoe Jamie Vermillion Office Administrator Division Forester Lands & Harvesting Moshannon & Tug Hill Manager Jeff Strickland Chad McElvany GIS Analyst Division Forester OKT & Caney Creek Lisa Johnson Lisa Lykins Office Administrator David Kinsey Office Administrator Nursery Foreman Deland Miller David Lehman GIS Analyst Lands & Harvesting Manager

15-30% Compensation Bonus Opportunity

6 Molpus – Investment Locations

Molpus and its investments are strategically located in industrial timber growing regions

Proportion of Land That is Timberland

Sources: USDA Forest Service, 2002 RPA data, the National Atlas of the United States and The Molpus Woodlands Group. 7 Molpus - Theoretical Investment Locations

Future investments will be strategically located in industrial timber growing regions

Proportion of Land That is Timberland

Canada

LEGEND Theoretical targeted investments

Sources: USDA Forest Service, 2002 RPA data, the National Atlas of the United States, Canadian Forest Service and The Molpus Woodlands Group. 8 Market Opportunity – Why Now

Market has shifted presenting new opportunities at discounted values

• Stressed owners and operators require liquidity - Timber REIT’s need cash to continue paying dividends - Manufacturers need to improve efficiency or pay debt - Some investors are over-levered • Raw materials prices are 30% below the 1.2%(1) price growth trend line • Significant demand for timber products and diverse end uses

(1) RISI

AVERAGE TIMBERLAND PRICES INDICATED DISCOUNT RATES FOR 1999 – 2010 (1) U.S. TIMBERLANDS $1,900 U.S. South (% real) $1,700 U.S. Northeast 7 $1,500 Total US - excluding $1,300 Pacific Northwest 6.5

$1,100 6 $900

$700 5.5 Average PriceAverage per Acre $500 5

$300 4.5 $100 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 1Q (1) Excluding the Pacific Northwest Sources: RISI Timberland Database, October 2009. RISI Timberland Market Report, April 2010. Source:Source: Timberland Timberland MarketMarket Report Report. 2010

9 Strategy – Overview

Investment themes: focus driven by opportunistic strategies 1. Multiple Layers of Portfolio Diversification – Emphasis on diversification within the asset base by geography, species and age class, with an additional emphasis on current income

2. Value Creation Potential – Seeking specific properties where the Firm can leverage its strengths and unique structure to create value at the property level

3. Distressed Sellers – Where possible, use extensive sourcing network to create acquisition opportunities with sellers that are motivated to sell in the short-run because of economic challenges

Allocation: creating a return profile diversified by a number of unique drivers

50% Emerging Growth 50% Income Potential

Diversified by: 30% 30% Mature Young Near • Geography Pre-merchantable Harvest • Species Products 30% Shifting Transitional Other Other • End Product Stands 10% 30% Classes 10% • Topography Young Young Merchantable • Mill customer Merchantable • Seasonal logging 30% 30% • Non-timber revenue

• Higher growth through appreciation • Higher income potential • Moderate income potential • Less growth through appreciation • Strategy: Silvicultural additions • Strategy: Peak market timber sales

10 Strategy – Acquisition Discipline

Foresight as net seller has led to discounted opportunities

Evolution of Acres Under Management Comparable Transactions (TX, LA, AR) 13 transactions - $6 billion South Northeast, Appalachia, Lake States $1,200 $1047 1,000,000 Estimated BLV $1,100

(5 Transactions) $1,000 800,000 (7 Transactions) $900 600,000 $800 Median Weighted Average Bare Land Value from 2007-2009 $ 400,000 $700 Acres Acres UnderManagement

Bare LandValue (per acre) $600 Red River 200,000 Transaction (90,770 Acres) $500

- $400 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20092Q10 2006 2007 2008 2009 2010

Source: Molpus Woodlands Group Source: Molpus internal interpretation of transaction data.

11 Strategy – Emerging Income

Potential return improvement can range from 100 – 300 basis points

• Not embedded in base acquisition methodology • Dedicated value added team Approach • Possible return improvement of 100 – 300 basis points

• Wood pellets, biomass, biofuels Incremental • Recreation and Higher-Better-Use (HBU) • Conservation Easements (CE) Income • Wind Energy Streams • Oil, gas, seismic • Carbon sequestration (not too distant)

• 2009 – Forever Wild, AL - $6mm • 2009 – Trust for Public Land, TN • 2010 – Development of wind tower lease Demonstrated • 2010 – Early discussion, UK power company Success • 2010 - 2011 – Pellet Supply Contracts • 2010 - 2011 – Mitigation bank sales/partnerships • Future – Carbon/cellulosic ethanol

12 Revenue and Expense Breakdown - $10 Million Acquisition

Vertical integration lowers operating costs and drives higher income

Total Revenue & Expenses (including Capitalized) as a Percentage of Total Revenue

Lease Sales (2%) $28.8M Total Cost $453,080 100% 1% 1% <1% 3% <1% 9% ($2.4M) HBU Land <1% <1% Sales (2%) $673,940 $367,804 $378,785 $247,134 $858,105 $171,621 $224,498 $154,384 Land Component of final sale, 46% $13.3M including Net discounted Margin 11.19% value of future Gross timber growth Return $26.4M 91% Timber Harvests 50% $14.4M (including final sale)

Total Marketing/ Regen- Prop. Forestry Admin. Closing Appraisals Margin Revenue Merchandising eration2 Taxes Expenses3 Cost Cost Inventory Cost1 (including acquisition)

Expense Items paid to Molpus

1 Includes the processing and handling of bids, negotiating and administering timber sale contracts and cutting agreements, marking trees for harvest and supervising logging operations. 2 Includes the cost of site preparation and planting of trees after a regeneration harvest. 3 Forestry Expenses are related to in-forest activities. In certain cases, Molpus will perform activities in lieu of a contractor generating either savings, accuracy, or efficiency for the client. (Illustrative Confidentialpurposes only.) – not for distribution 13 13 Cash Basis Returns - $10 Million Acquisition

Total return = annual income events + timber growth + land appreciation

Return Components “IRR”

1% Management Fee 4.04% 4.04% .31% Incentive Fee

Fund Target 4.30% 11.19% 9.88% 8 - 12% Net IRR

2.85%

Annual Timber Land Gross IRR Net IRR Revenue Growth Appreciation, (excluding (realized including exit) at sale) discounted value of future timber growth (nominal) Fee Items paid to Molpus

Illustrative purposes only Confidential – not for distribution 14 14 Strategy – Active Management

Impact of active management – rings of truth

In this example, Molpus acquired a property from another timberland manager. Active management of this tree (and ultimately the stand) at age 18 created significant growth shown by the exponential size of the growth rings after 2004.

15 Molpus – Summary of Terms

Favorable alignment of GP and LP interests

Fund Size: $400 million

Target Return: 8% - 12% nominal, unlevered IRR (net of fees and expenses), inclusive of an average, annualized distributable net cash yield of 2 - 4% Investment Period: 36 months

Term: 10 years (plus two optional 2-year extensions)

Fund Profile: • Diversified by species, geography, products, markets, and age class • Focus on distressed sellers or unique circumstances • Regional diversity Region: All U.S. and Canadian industrial timber growing regions, except for Pacific Northwest of both countries

Management Fee: 1.0% (on called/invested capital; no fee on committed capital)

Incentive Fee: 15% over a 7% annual return (cash on cash)

Preferred Return 7%

Carried Interest 15%

Distributions After all capital contributions plus Preferred Return is returned, 85% / 15%

Leverage Up to 10% of total Fund assets

Nothing herein constitutes an offer to sell or a solicitation of an offer to buy any security with respect to the referenced proposed Fund. No such offer to sell or solicitation of an offer to buy any security with respect to the Fund will be made except pursuant to appropriate offering documents to be provided to potential investors who are duly qualified to invest in such securities.

16 Appendix Detailed Performance

Prior funds and separate accounts have generated strong performance

Molpus Woodlands Group: Summary Investment Performance Unlevered, Gross and Net Performance (1) (2) (3) As of June 30, 2010 ($ millions) Molpus’s Returns Based on NCREIF’s Time Internal Rate (7)(8)(9) Weighted Methodology of Return (7)(10)(11)

Invested Cash Realized Unrealized Total Gross Net Gross Net Investment Vehicle (Vintage) Capital Yield (5) Value (6) Value Value Return Return Return Return

Aggregation of Separate Accounts (4) Realized Investments $ 458.5 5.4% $ 777.1 $ - $ 777.1 22.5% 18.8% 16.8% 12.9% Partially Realized Investments 1,160.4 6.5% 793.2 486.4 1,279.6 3.7% 2.6% 8.6% 7.6% Unrealized Investments 91.3 - - 94.5 94.5 2.1% 1.3% 2.2% 1.5% Total Separate Accounts $ 1,710.2 5.8% $ 1,570.3 $ 580.9 $ 2,151.2 8.7% 6.8% 11.0% 9.1%

Sustainable Woodlands Fund I (2005) Realized Investments ------Partially Realized Investments 138.2 2.7% 19.2 176.0 195.2 8.9% 8.0% 9.9% 8.7% Unrealized Investments ------Total Sustainable Woodlands Fund I $ 138.2 2.7% $ 19.2 $ 176.0 $ 195.2 8.9% 8.0% 9.9% 8.7%

Sustainable Woodlands Fund II (2009) (12) Realized Investments ------Partially Realized Investments ------Unrealized Investments 177.1 1.3% 1.5 178.3 179.8 3.2% 2.4% 3.8% 3.3% Total Sustainable Woodlands Fund II $ 177.1 1.3% $ 1.5 $ 178.3 $ 179.8 3.2% (12) 2.4% (12) 3.8% (12) 3.3% (12)

All Vehicles Realized Investments $ 458.5 5.4% $ 777.1 - $ 777.1 22.5% 18.8% 16.8% 12.9% Partially Realized Investments 1,298.6 6.1% 812.4 662.4 1,474.9 4.3% 3.3% 8.7% 7.7% Unrealized Investments 268.4 0.9% 1.5 272.8 274.3 2.5% 1.7% 2.3% 1.5% Total All Vehicles $ 2,025.5 5.2% $ 1,591.0 $ 935.2 $ 2,526.3 8.7% 6.9% 10.9% 9.1%

18 Detailed Investment Performance

Footnotes to investment performance

1. In considering performance of investments referred to in this analysis, prospective investors are reminded that prior performance of Molpus’s investments is not indicative of future results and there can be no assurance that Molpus will achieve comparable results in the future.

2. The stated returns are presented on a pre-tax basis. All properties are appraised by third parties on a regular basis. Appraisal intervals are not the same for all clients.

3. Returns exclude one former property where Molpus performed only certain forestry functions and was not responsible for the financial records. This property was neither a holding of the Prior Funds nor an institutional separate account client, and represented only 1.8% of the acreage managed in 2004, the final year of Molpus’s role.

4. Molpus has managed separate accounts since inception and currently has five separate account relationships as of June 30, 2010.

5. Cash Yield reflects average annual, distributable cash yields that are net of all costs, fees and operating expenses.

6. Realized Value reflects partial exits, land dispositions, timber harvests and other liquidity events.

7. Unlevered returns are based on total invested capital. For informational purposes, the Prior Funds have not employed leverage at the fund or property level. Certain separate accounts do employ leverage based upon the specific direction of the client. In addition, “gross” returns are gross of any management fees but net of other costs, fees and operating expenses.

8. The internal rate of return on an investment is the annualized effective compounded return rate that is earned on invested capital. The term “internal” refers to the fact that its calculation does not incorporate environmental factors (e.g., an interest rate or inflation).

9. An XIRR calculation was used to account for the timing of cash flow returns. The estimate of value used for unrealized and partially realized investments as of June 30, 2010 is based on current discount rates and market conditions, not on pro forma estimates of exit values. In addition, IRR calculations have not been audited but the underlying cash flows and financial statements relating to 97.5% of invested capital have been audited as of December 31, 2008 (certain Molpus clients do not require audits). Audited returns through December 31, 2009 are expected to be available in September 2010.

10. Time-weighted returns are calculated consistent with the NCREIF Timberland Index, which is a property level formula that uses accrual income accounting and capitalized investments to calculate a quarter-to-quarter return, which then is geometrically linked to compute a holding period return. NCREIF returns are always calculated as “gross” (i.e., not net of all costs, fees and operating expenses). For further information, please see NCREIF’s “Data Collection and Reporting Procedures Manual.” In addition, time-weighted return calculations have been audited through December 31, 2008 by Mengel Metzger Barr & Co., LLP of Rochester, NY. Underlying cash flows and financial statements relating to 97.5% of invested capital have been audited (certain Molpus clients do not require audits). Audited returns through December 31, 2009 are expected to be available in September 2010.

11. All dollar values represent total capitalization - both debt and equity. These returns have been calculated on an unlevered basis, consistent with NCREIF methodology. As such, any debt has been treated as equity for the purposes of these calculations. For informational purposes, the Prior Funds have not employed leverage at the fund nor property level. Certain separate accounts do employ leverage based upon the specific direction of the client.

12. The Sustainable Woodlands Fund II closed in November 2009. Fund II’s stated performance figures are based on results of less than one year. In addition, the properties included in this transaction have not yet had their first annual third-party appraisal.

19 Representative Transaction

Red River Importance of Biological Growth

In 2009, Molpus closed a transaction involving 91,000 acres of mature natural pinelands in Texas, Louisiana, and Arkansas for $173 million. This property mostly consisted of very large-diameter and high-volume per acre naturally regenerated upland pine stands; a small component of young, well-managed pine plantations was pre-established as well. Although scattered across three states, a well-developed road system provides easy access to tracts, reducing logging cost.

Investment Thesis • High quality and stable production • Significant levels of mature timber • Rich soil and water resources • Located near multiple large-scale pulp and lumber manufacturers • High site quality characteristics

Highlights • SFI® certified timberlands convertible to pine plantations • Opportunity to introduce intensive silviculture to increase harvest levels • Strong cash flow • Superior sawtimber product (diameter and log quality) • Situated in one of the premier wood baskets in the southeastern U.S. • 3-year executable plan to inventory entire property

Silviculture • Historic establishment of CellFor clonal pine plantations, which reduces harvest horizon • Internal proprietary volumetric and growth and yield study to better understand the resource

Timber Marketing Strategy • Opportunity for open market timber sales in addition to wood supply agreement

Value-Added Opportunities • Established a long-term timber supply agreement with previous owner of the timberlands • Extensive road system reduces harvesting costs and haul distance • High-volume traffic corridors, including planned I-69, increase real estate value • Unrealized demand for recreational/hunting property • Potential pine poling enterprise

Deal Source • Private/network

20 Representative Transaction

Birmingham, Ouachita,Importance and Natchez ofTrace Biological Growth

From 2005 to 2006, Molpus acquired 210,000 acres of timberland in Louisiana, Arkansas, Mississippi, and Alabama for $138 million. The timberlands acquired consisted of high-production pine plantations, as well as both upland and bottomland hardwoods. This diversity in species and timber types mitigates timber market risks. The Birmingham portion of the investment (165,000 acres) proves to be viable winter/wet season logging ground with an extensive road infrastructure already in place from historic gas and coal mining operations. Ouachita has high HBU potential and hunting lease rights due to its water accessibility. Natchez Trace, acquired from a distressed seller and containing mostly young pine plantations, was bought at a reduced price and will yield higher-value timber in a few years.

• Attractive location to metropolitan areas • High mill density region Investment Thesis • Opportunity for elevated real estate sales • 3 geographic locations with exposure to 3 distinct timber markets • Land development/HBU opportunities on Ouachita and Natchez Trace parcels Highlights • Extensive road system for reduced harvesting costs and wet weather timber sales • Initiated pine plantation fertilization program in 2007 Silviculture • Pre-commercial thinning to improve stand quality • Selective harvesting in hardwood stands Timber Marketing Strategy • Local team with years of experience in the area use extensive network of contractors • The State of Alabama through The Forever Wild Program • Wetland conservation/mitigation opportunities • Existing recreational lease programs • Niche recreational markets located in the Mississippi Alluvial Plain Value-Added Opportunities • Port of Birmingham for barging logs and chips to other markets including exportation to off-shore markets in need of supply • Bioenergy contracts • High potential for wetland mitigation Deal Source • Private/Network

21 Representative Transaction

Michigan and HiwasseeImportance of Biological Growth

In 2008 Molpus acquired, on behalf of a client, 72,000 acres of Lake States hardwood, located in the Upper Peninsula of Michigan, and southern pine plantations, located in Tennessee, for $83 million. The acquisition of the Michigan portion benefited from a distressed seller, and was bought under-valued. This tract had been historically well managed and consisted of high-value hardwoods, including hard and soft maples. The property was aligned with a state tax structure that reduced property taxes four-fold. The Hiwassee tract is located just north of Chattanooga, a major metropolitan area in Tennessee, and is situated for exceptional HBU opportunities.

Investment Thesis • Made up of diverse high-value species • Competitive timber markets • 100+ years of investment-grade management • Potential economies of scale • Expertly improved timber stands

Highlights • Best in class silviculture • Flexible harvest period • Favorable spot markets • High recreation area • 5-year executable plan to inventory entire property

Silviculture • Sustainable stand-level selective harvesting in northern hardwoods • Internal proprietary inventory and growth-and-yield study to better market timber

Timber Marketing Strategy • Operational flexibility to store product, reach out to niche markets

Value-Added Opportunities • Wind development enterprise • Opportunity with local conservation groups • Ample carbon credit opportunities • Unique recreational potentials • Multiple uses for value generation • Scenic value • Conservation easements market

Deal Source • Private/network

22 Sustainable Woodlands Fund I – Profile

SWF I: Characteristics

Since Inception SWF Fund Highlights Character of 12 Month 3 Year Return Annualized Returns1 Return Annualized (8/2005- 2Q 10)

– Initial Close – 5/05 ($90M) Distributions 7.90% 3.93% 2.76% – Final Close – 3/31/06 ($149M) Estimated Appreciation / 5.51% 9.97% 5.83% – Invested Capital - $138M (Depreciation) Estimated Gross Appraised Value - $167.4M 12.26% 13.50% 9.86% – Total Return

Estimated Net 11.14% 12.37% 8.73% Total Return

Product Mix Hardwood Current Summary Pulp Hardwood 22% Sawtimber Pine 26% • Long term timber lease Sawtimber 21% • Returned 13% of investor capital in cash distributions. • Development of unique $6 MM opportunity – Forever Wild

Premerch Pine 6% Chip/Saw Pine Pulp 10% 15%

Returns audited through 12/31/2008. In considering performance of investments referred to in these materials, prospective timberland investors should keep in mind that prior performance of Molpus investments is not indicative of future results and there can be no assurance that Molpus will achieve comparable results in the future. Source: Molpus Woodlands Group 23 Sustainable Woodlands Fund II – Profile

SWF II: Characteristics

Since SWF II Fund Highlights 3 Year Character of 12 Month Inception Return Returns1 Return (11/09 - Annualized 2Q 10) – Initial Close – 5/1/08 ($130M) Distributions NA NA 1.36%

– Final Close – 11/30/09 ($178M) Estimated Appreciation / NA NA 1.17% – Invested Capital - $178M (Depreciation)

Estimated Gross – Projected return NA NA 3.77% Total Return - Base case – 8.8% Estimated Net NA NA 3.26% - Possible case – 11.5% Total Return

Pine Poles Product Mix Hardwood (est.) Current Summary Pulp 5% 4%

Hardwood • 40% discount in bare-land value versus recent Sawtimber comparable sales ($6 billion) Pine 9% Sawtimber 59% • Developed unique structure with the seller for Premerch ultimate savings of 20% 14% • Preliminary findings demonstrate 14% of additional sawtimber not accounted for in

Pine Pine Pulp acquisition value. Chip/Saw 7% 2%

Returns audited through 12/31/2008. In considering performance of investments referred to in these materials, prospective timberland investors should keep in mind that prior performance of Molpus investments is not indicative of future results and there can be no assurance that Molpus will achieve comparable results in the future. Source: Molpus Woodlands Group

24 Molpus – History & Evolution

Rich heritage of innovation and expertise

Timber Merchandizing & Manufacturing Timberland Investment Management

TIMO Formed Kimberly Clark Southeast 1996 – Molpus Acquisition Acquisition First Sawmill Woodlands Group Acquired $397 MM Acquired $173 MM formed as a TIMO (411 M acres) from (91 M acres) Company opened first Kimberly Clark sawmill and contracted with TX. LA, AR US military to construct Largest Sawmill Alabama & ammunition boxes for 1974 - In Morton, MS, Mississippi Northeast troops overseas opened one of the Acquisition nation’s largest and most Louisiana Pacific Founding technologically advanced Acquired $168 sawmills. Acquisition MM (273 M acres) 1905 - Founding of in Appalachia , NY, Molpus Forest Acquired $290 MM (463 Henderson- Molpus and PA. Mercantile, predecessor to Products M acres) from Molpus Lumber Co. Mid-80’s to mid- Louisiana Pacific 90’s – wood dealer East Texas

1910 1920 1930 1940 1950 1960 1970 1980 1990 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

1911 – First Molpus 1980-1984 – Molpus lumberyard with a dry kiln sold all manufacturing and planer mill. businesses to IP & Acquired $127 MM (181 M acres) from Molpus Lumberyard Louisiana Pacific S.W. Fund I S.W. Fund II International Paper Formed respectively Final Close - Final Close - $138 MM Manufacturing East Texas $173MM Sale TX Acquisition Fund I Fund II 1997 – First acquisition 1969 - Molpus Hardwood Co. First Acquisition Acquired $75 MM formed to utilize the existing (68 M acres) in the timber mix Upper Pen. Of Michigan Molpus Hardwood Formed MI Acquisition

25 Team – Key Executives

Experienced professionals with complimentary and tenured backgrounds in timber

Yrs in Yrs with Name/Title Industry Experience Industry Molpus Functional Roles & Focus Dick Molpus • Founder; history in family business 44 32 • Firm management and direction • 3 terms as Secretary of State MS • Investment strategy Founder and President • VP Manufacturing, network of sawmills • Industry relationships • Client relationships

Bob Lyle • Director of Operations for 13 years 31 14 • Deal sourcing and execution • Assistant Secretary of State MS • Development of value-added opportunities Executive VP • Real estate brokerage, timber valuations • Executive direction for all forestry operations • Dispositions

Terrell Winstead • VP Finance, for timber brokerage company 25 23 • Financial policy and direction • Participation in family timber business • Direction of all client accounting and reporting functions VP - Finance and CFO • Deal team • Development and improvement of investment models • Risk management, controls and compliance

Charlie Manogue • Significant acquisitions experience 31 11 • Deal sourcing and execution • Previous COO for Molpus – 1.3M acres • Creative structuring VP - Acquisitions • Kimberly Clark – operations & technical analysis • Acquisition and due diligence • Scott Paper Co. – technical analysis • Coordination of cross-functional acquisition team • Drive value with biometrics and inventory team

Ken Sewell • Managing Director of Molpus – 465,000 acres 20 11 • Regeneration and forest planning • (previous) Director of Acquisitions – 900,000 acres • Harvesting and thinning operations COO • Packaging Corp – Region Manager • Inventory Management • Champion Int’l – operations and technical analysis • Information Systems • Client Reporting

Edgar Marshall • VP, Europe Transformation – industrial shipping 11 2 • Client development container business • Transaction team VP - Business • VP, Timberlands for industrial manufacturing • Creative opportunities Development • Financial products and structuring

Michael Cooper • Chief Risk Manager, SEC Compliance Officer since 11 11 • Risk management, controls and compliance 2007 • Legal policies, procedures and commercial transactions General Counsel • Corporate and real estate law practice • Sales, procurement and vendor contracts • Commercial real estate and banking law experience

Keith Williams • Significant timber sales experience 20 8 • Property disposition • Previous property manager for 60,000 acres • Renewable energy development Director of Value Added • International Paper – Unit Manager • Recreational leasing • Champion Paper – operational & technical • Conservation development • Acquisition due diligence

26 Strategy – Sourcing & Relationships

Proprietary sourcing and well-cultivated relationships have led to superior deal flow

Typical Annual Nature of Deal Catalyst Relationships Historical Deal Acquisitions Flow Flow Pipeline

• Manufacturers Key Executives • Entrepreneurs Proprietary • Brokers or Reverse Inquiry • Corporate Lenders 100% • REITS/TIMOS • Forestry Consultants Local Office • Private Landowners Professionals • Investment Banking Auction Typical deal size: Less than 1% $25M - $200M

27 Market Opportunity – Outlook

Optimism exists due to improving demand and long-term fundamentals

Current and near term drivers • Sawlog market o Improvement in demand o Increased pricing due to supply constraints o Continue to preserve long-term value through harvest deferrals • Pulpwood market o Continued steady demand o New entrants o Increased prices in several regions due to wet weather conditions

Mid- to long-term drivers • U.S. dominance (steady currency, superior logistics/infrastructure) • Increasing scarcity of timberland • Return to underlying demand (housing recovery); repairs / remodeling • Emerging income streams: pellets, biofuels, biomass • Diminishing Russian log exports • British Columbia pine beetle epidemic

28 Strategy – Proprietary Tools

Proprietary GIS allows managers to make effective, informed decisions

Stand Measurement • Properly placed stand boundaries and accurate acreage are the basis for calculating what a timberland investment is worth. Data Quality • A true representation of timber volume is crucial for determining the Valid Timber Inventory asset base value, making timber sales, and predicting future income.

Integrated • As spatial changes occur or as new tree measurements are imported, Inventory timber volumes by-product class are recalculated “on the fly.” The Systems GIS/Inventory database provides up-to-date information for timber sales and the tools for running “what if” scenarios for maximizing value. • Timber and land sales are concurrently tracked through the Accounting Accounting and GIS Departments. These integrated databases allow the means to determine what the timberland investment is worth at all times.

• Scanned deeds, timber sales, land sales, recreational leases, rights-of- Legal way, etc., are easily accessible in electronic format (contracts and maps). Precise ownership information and access rights to the property are clearly documented. Enterprise • All aspects of property management are tied together in a secure relational database. • Information is readily available for querying, viewing and printing. System • Decisions are made using a current, consistent database.

• Secure users may obtain information from any location with Internet access. Accessibility • Readily available data enhances the decision process and makes more productive use of time.

Quality • Data is consistently entered and edited by trained GIS professionals with forestry experience. • Information is collected electronically, reducing the risk of error. Control • Attribute data is routinely checked for accuracy.

29 Pairing PairingQuality Quality Information Information with with Analytical Analytical Tools Tools

Vertical integration & cross-functional information provides significant knowledge and insight

Dimension Sample Queries

• What are the haul distances from specific mill locations? Acquisitions • What are the soil types and are they conducive to growing timber? Acquisitions • Which tracts do not have adequate road access? • How do the seller’s stand acreages and timber volumes differ from our analysis?

• Which timber stands are potential thinning candidates and what are their volumes by product class? • How did the negotiated volumes compare to the actual removal? Marketing / • Which stands have sugar maple volumes in excess of 1000 board feet per acre? Harvesting • Which stands can be harvested during wet weather conditions?

• Which soils are phosphorous-deficient and how many of these acres should be budgeted for fertilization? • Where are the recent thins and how many of these acres should be budgeted for herbaceous weed control? Land • Where are the completed clear cuts and how many acres should be budgeted for reforestation? Management • How many miles of ownership boundary need fresh paint?

• Which stands have either old or no inventory numbers so they may be included in the upcoming cruise? • Which stands are currently being thinned? Inventory • What are the acres, ages, species and timber types of these stands? • How will slope and aspect affect growth and yield for this land base?

• What effect does urban gravity have on this property and where are pockets of high income? • How many miles from the new Nissan plant is our clients property? Where are the suitable wind corridors for energy production? Value Added • • Where are the navigable waterways and railroads in relationship to this property?

• Which deed descriptions do not match the spatial data provided by the seller? • Which timber deeds are ready to be released? Legal/ • How many tons of each product class does the GIS show for this property? Accounting • What are the release volumes by-product class for this timber sale?

30 CriticalCritical Financial Financial Aspects Aspects – Modeling, Transparency & Sensitivities

Modeling transparency & sensitivities • Conservative pricing fundamentals Systematic • Inclusion of value-added revenue only when known and predictable Modeling – stretch targets held in “possible model” • Steam Growth Model – proprietary model used to “fine tune” final targets • “All in” philosophy • Results-oriented, by incenting those directly responsible for results (tied to client performance) • This vested interest results in involvement in acquisitions – modeling fundamentals and assumptions at all levels within the organization

Transparency • Clarity in fee structure • Timely and detailed reporting – quarterly, annual, conf. call, acquisition updates, audits, etc. • Field forester involved in investor communications • Open-door policy • Investors become engaged in process with appropriate discretions delegated • Public sharing of composite return and report to NCREIF

Sensitivities • Focused variables built around client strategies and constraints • Important to share the full spectrum of sensitivities - major drivers are product pricing, value added, volume and growth assumptions

31 Strategy – Risk Analysis

Molpus analyzes each acquisition’s risk profile – only about 3% are above the line

Price Risk Risk of Loss

• Mill density • Weather • Production capacity • Insect / disease propensity Risk Adjusted Expectation • Operating capacity • Fire • Price / demand volatility • Survival rates • Existing agreements • 1/10 of 1%

Operating Constraints Value

• Political environment • Demographics Return Required • Debt load • Cost creep • Access quality • Yield predictability Risk • Topography / hydrology • Exit alternatives • Logging economics • Reliance on non- • Infrastructure traditional revenue • Easements / encumbrances • Supply Agreements

32 Value of In-House Expertise

Published volume equations are error-prone Value of “In-House” Expertise Chip-n-Saw Sawtimber 1 15% Pulpwood $7.9 MM 13%

$2.7 MM1

10% 9%

6.8% % Error %

5%

1.0% 1.4% 0% -0.8% -0.7%

-5% -4% Published Equation 1 (Total Impact $0.2 MM) -6.0% Published Equation 2 (Total Impact $2.8 MM)

-10% 1 $1 MM Published Equation 3 (Total Impact $10 MM)

1 Amount of capital associated with the calculated error considering a 100,000 acre property with the following assumptions: 20 tons/ac of pine pulpwood ($9/T), 15 tons/ac. of pine chip-n-saw($20/T), 15 tons/ac of pine sawtimber($40T). Source: Variations derived from actual merchantable weights of trees felled and weighed by Molpus in Central Alabama.

33 Value of In-House Expertise (cont’d)

Molpus’s models Importanceprovide significantly of Biological higher degree Growth of accuracy To test modeled growth predictions, Molpus measured trees in 29 10-yr Error research plots (of all ages) and compared actual growth to modeled NPV of Extrapolated results. Error/Ac to 100k ac.

$50.00 Research Cooperative #2 $45.00 $ 349/acre $ 40 MM 1 $40.00

$35.00 Research $30.00 Cooperative #1 $ 205/acre $ 20 MM $25.00

Molpus – AnGUS $20.00 Proprietary (0.2% error)

$15.00 $’s in Error per Acre Year Acre per per in Error $’s

$10.00 $ 54/acre $ 5 MM $5.00

$- 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50%

1 Calculated $’s error per acre per year based on assumptions of: pulpwood ($8/T), chip-n-saw($20/T), sawtimber ($40T). Source: MWG research based on 29 growth plots in East Texas on properties managed by Molpus. Note: Average timber value per acre for the 29 plots was $1390. Average Growth/yr = $166.57/a/y. 34 Foreign Investment in Real Property Tax Act (“FIRPTA”)

Molpus Woodlands Fund III: Proposed Blocker Structure

M.W.F. III-GP (Del LLC)

GP Parallel Fund (Cayman LP) GP (Classify as Partnership)

GP LP (non voting)

M.W.F. III Offshore Blocker Debt (Del LP) (Cayman LP) (Classify as Corp) GP LP (non voting)

Onshore Blocker (Del LP) (Classify as Corp)

Investment 1 (Del LLC)

35 FIRPTA (cont’d)

Summary of Tax Structures

Structure Description Pros Cons Rates

Base case - Non • Non US corporate investor • None. We do not believe this is a • Subject to US corporate tax on US effectively • Corporate level tax (at US corporate makes investment directly into viable structure for investors, it is connected income (ECI), with most income 35%, less benefit of investor in Fund. the US fund. presented as the base case against the expected to be ECI. interest deductions). alternative described below. • Subject to US branch profits tax on dividend • Branch profits tax (at equivalent amount (after payment of US 30% on after tax dividend corporate taxes). Treaty may reduce rates. equivalent, subject to • US ECI withholding will apply to distributions by lower treaty rates). the Fund to the investor. • FIRPTA and US ECI • Disposition of interest in the Fund likely withholding at fund level. generates US ECI and may be subject to FIRPTA withholding. • Investor required to file US tax returns (treated as engaged in a US trade or business)

Alternative - • Parallel fund invests into a • Portfolio interest reduces US tax with • Portfolio debt characterization is not available if • No withholding tax on Domestic series of US corporations, each no withholding tax. more than 10% owner (however partnerships are portfolio interest. leveraged of which invests in parallel with • Gain on liquidation is not subject to looked through and may also be able to use low • No FIRPTA withholding blocker the Fund in investment FIRPTA if all assets sold prior to vote/no vote stock for corporate blockers). if US blockers liquidate structure. opportunities. liquidation. • Earnings stripping rules may limit corporation’s after sale of assets. • Use debt and equity. Interest • Multiple blockers may be used to deduction for interest. • US corporate level tax on debt is intended to be free permit frequent repatriation. • Contingent interest does not qualify as portfolio (at 35%, less the benefit from withholding if portfolio debt. • Non-US investors do not file US interest, but may use if payment is made to a of interest deductions). • Interest payments reduce US income tax returns or pay US taxes. resident of a treaty country. • Estate tax exposure for blocker’s corporate tax. • No limitation on types of activities that • Cannot sell interests in blocker prior to non-resident individuals • Liquidation is free from FIRPTA can be carried on by the entity – sale of liquidation without triggering FIRPTA. (can be mitigated by use if corporation sells all assets prior real estate, cutting contracts, etc. • Blocker must sell all real estate and pay US of offshore blocker above to liquidation. taxes to liquidate without FIRPTA taint. domestic blocker). • Estate tax concerns for US nonresident individuals (can be mitigated by use of offshore blocker above domestic blocker).

The material used in this presentation does not constitute or form part of an offer to sell or subscribe for, or the solicitation of an offer or invitation to purchase or subscribe for, any security. CIRCULAR 230 STATEMENT: The summary of tax matters contained herein has been prepared to support the marketing of the Interests. Nothing herein may be used by any taxpayer for the purpose of avoiding any penalties that may be imposed under the Code. Each taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor. 36 Market Opportunity – Why Timber

Timberland provides reduced volatility and offers superior risk-adjusted returns Favorable Risk / Return Profile Timber Prices Outpace Inflation The Capital Market Line (1994-2009) Since 1965

The Capital Market Line 1994 - 2009 $100 10%

9% NCREIF - Timberland Index S&P 500 (TR) Sharpe Ratio 8% Hardwood Sawtimber Timberland 1.00 $10 7% Barclays Aggregate Bond Bond Index 0.60 Pine Sawtimber Index Russell 2000 (DRI) S&P 500TR 0.22 Return 6% Russell 2000 0.16 MSCI EAFE 0.07 Unadjusted Consumer Price Index 5%

MSCI EAFE - Net Growthof a Dollar 4% $1 ML 3-Month T-Bills 1965 1970 1975 1980 1985 1990 1995 2000 2005 3% Year 0% 5% 10% 15% 20% 25% Standard Deviation Source: Pertrac Sources: LA Dept. of Agriculture, U.S. Dept. of Labor Source: Pertrac Uncorrelated to Traditional Investments Biological Growth Drives Returns Correlation of Selected Asset Classes to Timber (1987 – 2009) Sources of Timberland Returns

NCREIF Total Property Timber Price Long Term Corp. Bonds Change Long Term Gov't 25% - 30% Bonds Small Cap. Stocks

Large Cap. Stocks Biological Growth Inflation 65% - 75% U.S. Treasury Land Value Bills Changes Perfect Negative 2% - 5% Correlation

-1 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1 Sources: Molpus analysis, with data from the NCREIF, Barclays LT Government Bond Index, Russell 2000 (DRI), Barclays Aggregate Bond Index, S&P 500 TR, ML 3 month T-bills, U.S. Dept. of Labor Bureau of Labor Statistics. Source: International Woodlands Company 2008 37 Market Opportunity – Why Timber

Low volatility and steady returns provide significant impact over time

Annualized Total Return Comparison Since Molpus’s Inception (Q4 1997 – Q2 2010) Growth of $1,000 (1986 – Q2 2010) 12% 10.89% $25,000

10% $20,000 7.85% 8%

6.30% $15,000 6%

3.66% $10,000 4% 3.23% 2.43%

2% $5,000

0% $0 Molpus Timberland Bond Index (3) Small Cap (4) T-Bills (5) Large Cap (6) Woodlands NCREIF (2) Group (1)

NCREIF - Timberland Index ML 3-month T-Bills

(1) Returns are gross of management fees and audited through 12/31/2008. (2) Gross of management fees. (3) Barclays Aggregate Bond Index S&P 500 TR Barclays Aggregate Bond Index (all maturities). (4) Russell 2000 Index (DRI). ( (5) Merrill Lynch 3 Month T-bills Russell 2000 Index (DRI) Index. (6) S&P 500 Index (TR). In considering performance of investments referred to in these materials, prospective timberland investors should keep in mind that prior performance of Molpus investments is not indicative of future results and there can be no assurance that Molpus will achieve comparable results in the 1 National Council of Real Estate Investment Fiduciaries future. 2 PerTrac Financial Platform; ML 3 month T-bills, Barclays Agg. Bond Index, S&P 500 TR, Russell 2000 (DRI)

Sources: Molpus Woodlands Group, NCREIF and PerTrac

38 Biographies of Key Executives

Experienced professionals with complimentary and tenured backgrounds in timber Dick Molpus - President Dick Molpus, sixty, received a bachelor of science degree in business administration from the University of Mississippi. After graduation, he served for a number of years as the vice president of Manufacturing for Molpus Lumber Company, based in Philadelphia, Mississippi.

In 1980, Molpus was selected as executive director of the Governor's Office of Federal-State Programs under Governor William Winter, and in 1983 was named Mississippi's Public Administrator of the Year by the American Society of Public Administrators. While at the governor’s office Molpus helped guide the historic Education Reform Act of 1982 to passage.

In 1983, Molpus was elected secretary of state of Mississippi; he was re-elected in 1987 and 1991. As secretary of state Molpus served as lands commissioner of Mississippi and supervised over 600,000 acres of 16th Section property that had been set aside for the public schools. By forcing renegotiation of some 5,000 below-market leases, he increased the amount of public school revenue on those properties by $24 million.

In 1995, he won the Democratic nomination for governor of Mississippi but, after a strongly contested race, was defeated in the general election by the incumbent governor.

In 1996, Molpus decided to form The Molpus Woodlands Group and utilize his unique background in both the timberland industry and as a fiduciary for public assets.

Dick Molpus and his wife, Sally, were the founders of Parents for Public Schools, which now has chapters in fifteen states across the country. In 2004, he received from the National Education Association the H. Council Trenholm Memorial Award for his work on behalf of public schools.

In 2005 Molpus was inducted into the Mississippi Business Hall of Fame, and in 2008 he was honored as a Champion of Justice by the Mississippi Center of Justice. He currently is a member of the Board of Directors of the Wilson Research Foundation, the fundraising arm of the Methodist Rehabilitation Center in Jackson, Mississippi.

From 2007 to 2009 he served as the founding chairman of the United States Endowment for Forestry and Communities, a $200 million endowment funded by the U.S./Canada Softwood Lumber Agreement. The endowment is focused on improving forest health and assisting timber-reliant communities in the U.S. Molpus is also a founding board member of the National Alliance of Forest Landowners (NAFO), which is dedicated to protecting and enhancing the economic and environmental values of privately owned forests through targeted policy advocacy at the national level. 39 Biographies of Key Executives

Experienced professionals with complimentary and tenured backgrounds in timber

Bob Lyle - Executive Vice President Mr. Lyle is Executive Vice President of The Molpus Company, The Molpus Woodlands Group, LLC, and Molpus Timberlands Management, LLC.

He is a graduate of Millsaps College (BBA 1979) and Mississippi College School of Law, earning his juris doctorate degree in 1988. He has continued his post graduate education, having completed several executive business courses at the University of Chicago Graduate School of Business and at Duke University. Prior to attending law school, Mr. Lyle worked extensively as a real estate broker and appraiser of timber and agricultural properties, and he has considerable experience in negotiating the buying and selling of land and timber. Mr. Lyle is a licensed real estate broker in nine (9) states where the Molpus entities currently manage properties.

Dick Molpus asked Mr. Lyle to serve on staff at the Mississippi Secretary of State’s office in 1989, where his duties included assisting some 90 school districts with management of more than 600,000 acres of public trust school lands. He served as Assistant Secretary of State until 1995 and then joined Molpus in 1996. Mr. Lyle is a member of the Board of Directors of PriorityOne Bank, where he serves on the Executive, Compensation, and Loan Committees, and the Board of Directors of Crossgates United Methodist Children’s Center. He also is a Trustee of the Mississippi Agricultural and Forestry Museum and a member of the American and Mississippi Bar Associations.

Terrell Winstead - Vice President of Finance & Chief Financial Officer Mr. Winstead, Vice President of Finance and Chief Financial Officer of The Molpus Woodlands Group, LLC, The Molpus Company, and Molpus Timberlands Management, LLC, grew up working in his father’s logging business.

A graduate of Mississippi State University, Mr. Winstead began his career with Molpus in 1987 as Vice President of Finance with responsibility for all administrative and financial functions of the company. He is also responsible for the computerized systems that produce timely cash flow information for all properties managed by the company. Previously, he has worked in consultation with the forestry schools at both Mississippi State University and the University of Georgia, as well as with the Molpus foresters to refine Molpus’s timberland investment model. Mr. Winstead is a member of the American Institute of Certified Public Accountants and the Mississippi Society of Certified Public Accountants and serves on the Board of The Citizens Bank of Philadelphia.

40 Biographies of Key Executives

Experienced professionals with complimentary and tenured backgrounds in timber

Charlie Manogue - Vice President - Acquisitions

Mr. Manogue is Vice President – Acquisitions of the Molpus Woodlands Group with responsibility for coordinating timberland acquisitions for clients interested in timberland investments in the U.S. South, other North American regions, and certain international locations.

He graduated from Purdue University in 1977 with a bachelor of science in forest management and received a master of science in forest biometrics from Purdue in 1980. In 1999, Mr. Manogue joined Molpus Timberlands Management and served until early 2007 as Chief Operating Officer with responsibility for all forest management operations on up to 1.3 million acres during his tenure. Previously, Mr. Manogue gained almost 20 years of technical, operational and managerial experience with American Can Company and Kimberly-Clark Corporation (formerly Scott Paper Company). Mr. Manogue is a member of the forestry associations in Alabama, Mississippi, and Louisiana and is active in the Mississippi Forestry Association where he has served on the Board of Directors since 1993 and on the Executive Committee in 1998 and 1999. He also has served on the Board of Directors of the Forest Resources Association since 2005.

Ken Sewell - Chief Operating Officer

Mr. Sewell, Chief Operating Officer of Molpus Timberlands Management, LLC, received a bachelor of science degree in forest resources from the University of Georgia in 1989.

In 1999, Mr. Sewell joined The Molpus Woodlands Group as Director of Acquisitions, responsible for the identification and evaluation of forest investment opportunities. During his tenure, he participated in acquiring over 900,000 acres of timberland for clients of the company. In 2003, Mr. Sewell was promoted to Managing Director within the Molpus Timberlands Management organization. As Managing Director, his responsibilities included the overall management of forestry operations on approximately 465,000 acres located in Southeast Texas. In 2006, he relocated to Hattiesburg, Mississippi, and assumed the same responsibilities on approximately 230,000 acres located in Alabama, Mississippi, Louisiana, and Oklahoma. In 2007, he accepted his current position as Chief Operating Officer. Prior to his employment with the Molpus companies, Mr. Sewell gained ten years of technical, operational, and managerial experiences in the forest industry through his employment with Champion International Corporation in Cantonment, Florida, and Packaging Corporation of America (formally Tenneco Packaging), in Haleyville, Alabama.

41 Biographies of Key Executives

Experienced professionals with complimentary and tenured backgrounds in timber

Edgar Marshall - Vice President - Business Development Mr. Marshall is Vice President - Business Development with the responsibility of strategic improvement and growth of The Molpus Woodlands Group, LLC. He also serves on the company’s Executive Acquisitions Team.

Mr. Marshall is a forestry graduate of Mississippi State University and received his masters of business administration from Mississippi College with foreign studies at TiasNimbus. Mr. Marshall has both international and multi-industry experience in strategic growth, asset management and value creation. Prior to his employment with Molpus, he worked as a Vice President with Greif, an industrial shipping containers company, in The Netherlands. He led Greif’s performance improvement initiative focusing on building internal capabilities in both strategic marketing and manufacturing processes. Previous to that, he was the Vice President and General Manager for Soterra LLC, a timberland company in the United States and Canada. Mr. Marshall also has an extensive background in large timberland transactions.

Michael Cooper - General Counsel

Michael R. Cooper is General Counsel, Chief Compliance Officer and Risk Manager for The Molpus Woodlands Group, LLC and Molpus Timberlands Management, LLC.

He is responsible for the management of the legal matters of each company; and maintaining all legal instruments that relate to the properties of Molpus’s clients. He is also involved in managing the risks of Molpus and its clients by overseeing Molpus’s risk management strategies. Additionally, Mr. Cooper serves as Molpus’s contact for the Limited Partners of its Prior Funds and is responsible for Molpus’s marketing information.

Mr. Cooper earned a bachelor of business administration in banking and finance from Mississippi State University in 1992 and a Juris Doctorate from the University of Mississippi School of Law in 1995. Prior to joining Molpus, Mr. Cooper was engaged in a diversified corporate law practice in Jackson, Mississippi. He was selected as one of Mississippi’s Top 40 Under 40 for 2009 by the Mississippi Business Journal and is a member of the following: the Mississippi Ethics Commission, the Mississippi Corporate Counsel Association (where he served as past President), the American Bar Association’s Advisory Committee for the Paralegal Studies program for the University of Southern Mississippi, and the Mississippi Bar (where he serves as Chairman of the Clients’ Security Funds Committee).

42 Biographies of Key Executives

Experienced professionals with complimentary and tenured backgrounds in timber

Keith Williams - Director of Value-Added Mr. Williams is the Director of the Value-Added Division for The Molpus Woodlands Group, LLC. In this position, Mr. Williams is responsible for evaluating and implementing opportunities for non-timber revenue for client properties. These opportunities include higher and better use land sales, alternative energy opportunities, conservation easements, endangered species habitats, etc. Mr. Williams previously served as Property Manager for 63,000 acres in Southeast Oklahoma under management by Molpus Timberlands Management, LLC (MTM). He has been an employee with MTM since 2002. Mr. Williams has extensive experience managing timberlands in several states. Prior to joining MTM, Mr. Williams served as a District Forest Manager for International Paper Company and Area Forester for Champion International Corporation.

43 Disclaimer

NOTHING HEREIN CONSTITUTES AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SUBSCRIBE FOR OR BUY ANY SECURITY WITH RESPECT TO ANY FUND. NO SUCH OFFER TO SELL OR SOLICITATION OF AN OFFER TO SUBSCRIBE FOR OR BUY ANY SECURITY WITH RESPECT TO ANY FUND WILL BE MADE EXCEPT PURSUANT TO APPROPRIATE OFFERING DOCUMENTS TO BE PROVIDED TO POTENTIAL INVESTORS WHO ARE DULY QUALIFIED TO INVEST IN SUCH SECURITIES.

THIS PRESENTATION IS NOT INTENDED TO BE RELIED UPON AS THE BASIS FOR AN INVESTMENT DECISION, AND IS NOT, AND SHOULD NOT BE ASSUMED TO BE, COMPLETE. THE CONTENTS HEREIN ARE NOT TO BE CONSTRUED AS LEGAL, BUSINESS OR TAX ADVICE, AND EACH PROSPECTIVE INVESTOR SHOULD CONSULT ITS OWN ATTORNEY, BUSINESS ADVISOR AND TAX ADVISOR AS TO LEGAL, BUSINESS AND TAX ADVICE.

THERE CAN BE NO ASSURANCE THAT ANY POTENTIAL TRANSACTION DESCRIBED HEREIN, INCLUDING WITHOUT LIMITATION THE FORMATION OF, AND OFFERING OF SECURITIES WITH RESPECT TO, THE REFERENCED PROPOSED FUND, WILL BE EXECUTED.

IN CONSIDERING PERFORMANCE OF INVESTMENTS REFERRED TO IN THESE MATERIALS, PROSPECTIVE TIMBERLAND INVESTORS SHOULD KEEP IN MIND THAT PRIOR PERFORMANCE OF MOLPUS INVESTMENTS IS NOT INDICATIVE OF FUTURE RESULTS AND THERE CAN BE NO ASSURANCE THAT MOLPUS WILL ACHIEVE COMPARABLE RESULTS IN THE FUTURE.

CERTAIN INFORMATION CONTAINED IN THESE MATERIALS CONSTITUTES “FORWARD-LOOKING STATEMENTS,” WHICH CAN BE IDENTIFIED BY THE USE OF TERMINOLOGY SUCH AS “MAY,” “WILL,” “SHOULD,” “BELIEVE,” “EXPECT,” OR “ESTIMATE,” THE NEGATIVES OF SUCH WORD, OR COMPARABLE TERMINOLOGY. DUE TO VARIOUS RISKS AND UNCERTAINTIES, ACTUAL EVENTS OR RESULTS OF THE ACTUAL PERFORMANCE OF A TIMBERLAND INVESTMENT MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED BY SUCH FORWARD-LOOKING STATEMENTS. EXECUTIVE OFFICE FORESTRY MANAGEMENT OFFICE

654 North State Street 178 Bonhomie Road Jackson, MS 39202 Hattiesburg, MS 39401 Phone: 601-948-8733 Phone: 601-545-3063 Fax: 601-352-7463 Toll-Free: 800-850-8947 [email protected] Fax: 601-545-2888 [email protected]

FORESTRY OFFICES

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Birmingham Richmond Houghton Saranac Lake 3580 Lorna Ridge Drive 1232 Lancaster Road, Suite A 47040 Sheridan Place 92 Cherry Tree Lane Phone: 205-822-7130 P.O. Box 1898 Phone: 906-370-1375 Phone: 518-891-2817 Fax: 205-824-7898 Phone: 859-623-3088 Fax: 906-523-5535 Fax: 859-623-3086 OKLAHOMA Elberta MISSISSIPPI Antlers 29650 Comstock Road LOUISIANA Saltillo 804 East Main Street, Suite 1 Phone: 251-986-5210 Monroe 111 East Town Creek Drive Phone: 918-470-0656 Fax: 251-986-5211 3101 Armand, Suite 4 Phone: 662-205-4650 Fax: 580-298-9894 Phone: 318-324-9068 Fax: 662-205-4652 ARKANSAS Fax: 318-324-9724 El Dorado Waynesboro 3320 West Hillsboro Street Oberlin P.O. Box 869 Phone: 870-862-6700 P.O. Box 1127 3572 Highway 63 North Fax: 870-862-6704 206 North 4th Street Phone: 601-735-5025 Phone: 337-639-2333 Fax: 601-735-0674 Fax: 337-639-2444