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To enhance the future marketability of timber, environmental standards have been complied with in line with Dept. of Conservation and Resource Management Act requirements.

Pursuance of ISO 14000 standards is recommended for possible market premium.

Te Puru has been established with the view to total afforestation. A negotiable 50% share based on total farm/forest value is offered with full ongoing management if required. The offer will be flexible on the equity terms. Some investors may desire full purchase.

This would cover additional planting and silverculture with the option to progressively acquire the balance of the investment at a later date.

Gisborne is currently New Zealand's second largest forestry export handling facility. Logging facilities and port development for forestry are undergoing a major upgrade. The port and the region will become the dominant forestry area in NZ and will be the major port by the year 2020.

The region has approximately 150,000 hectares of forestry and a Government assisted scheme to establish and additional 200,000 hectares further inland, will see the region forests exceed those of the Central North Island.

Fully serviced land has been set aside for forestry processing by the local authority and is immediately available. It is an area 5 kms from the Port of Gisborne, with road and rail access.

The proximity of forest resources, processing and port creates a vertical integration of forestry not available elsewhere in New Zealand. Detailed information on the infrastructure and resources supporting the forestry industry in this region are available on request.

A major chipping and pulp export market via Marubeni (Japan) completes an outlet for all timber grades, which makes the area attractive to further forestry processing. Currently Juken Nissho (Japan) and Rayonier NZ dominate this.

The potential exists for Te Puru to become partially or fully self-funding as regards ongoing forestry development. This arises through the removal of pulp and chip wood for the Marubeni export market and would commence in the summer of 1999/2000 (estimated 5,000 tonnes) and continue in subsequent years.