Total plantation sales in FY2010 to be at least equal to FY2009...

Total plantation sales in FY2010 to be at least equal to FY2009 (1,025ha) with an increase in non-MIS institutional sales through Beyond Carbon to 500 ha.

Uncertainty as to whether major banks will continue funding MIS growers in 2010.·

Capital raised allows TFS to fund its own MIS growers in 2010 via Arwon Finance.·

Strong balance sheet required while some uncertainty exists over future demand for forestry MIS and global economy remains relatively weak.·TFS wants to be in a strong position to take advantage of future opportunities that present in the aftermath of the GFC both in Australia
and overseas.·

Allows TFS to continue to develop Kingston Rest property in advance of increased plantings for non-MIS offshore institutions. ·

Allows TFS to accelerate growth in the Middle East via the Emirate Investment Group joint venture and GNS.

Marketing has commenced selling 500 ha of non-MIS plantations to offshore institutional investors in FY2010 through Beyond Carbon.

Kingston Rest property to be dedicated to non-MIS offshore institutional investors. ·1400 ha of Kingston Rest property has already been developed and will be ready for planting in 2010 and 2011.

TFS is developing an extensive customer base for its future album products in the Middle East and subcontinent through the EIG joint venture and GNS.·Martyn Jacobs, former Senior Research Analyst at Ord Minnett, has joined the TFS Executive team to assist in modeling future supply/demand and pricing for TFS album products, and to review acquisition opportunities both in Australia and
overseas.·

Clear that long-term demand for Sandalwood oil
and by-products considerably exceeds future
sustainable supply