ECO2 Forests, Inc. (OTCPK: ECOF)

ECO2 Forests is a progressive international forestation company focused on sustainable reforestation, afforestation and avoided deforestation projects for the generation and sale of sustainable lumber (timber) and carbon credits to global markets.

Headquartered in Sacramento, California, the Company has adopted an ‘E4 Philosophy’ to achieve positive Environmental, Economic, Employment and Educational outcomes through its project

ECO2 Forests Inc. (US Stock Symbol: ECOF) is an international sustainable forestry company focused on reforestation projects and carbon credit production under our Global Forestry Plan for a positive environmental and economic impact through large scale bio-sequestration of carbon dioxide greenhouse gases and the growth and sale of sustainable timber to global markets.

CLICK HERE DOWNLOAD: ECO2 Forests Company Brief 2010

GLOBAL FORESTRY PLAN

The Global Forestry Plan is the detailed and specific plan developed by ECO2 Forests for the managed approach to creating a network of new and preservation of old forests in locations around the world. The goal is to deliver large scale forestation projects with a positive environmental and economic impact.

The plan enables all forests and potential forests under review in the Company project pipeline to meet our E4 Philosophy, our own standards developed to ensure our corporate responsibilities and triple bottom line accountability is met.

The result of these forests is large scale sequestration (absorption) of carbon dioxide green house gas (CO2) emissions which create carbon credits and the supply of renewable lumber. The plan is to be implemented by the Company through a growing number of projects to create a truly global forest network for the betterment of investors and the environment.

The detail of the Global Forestry Plan, new forest strategy is the „blueprint‟ to successfully produce a hardy and sustainable forest of fast maturing trees and ensures that all forests maximize economic and environmental benefits.

ECO2 Forests‟, with its global focus benefits by being positioned to take advantage of opportunities as they arise, regardless of the location. This focus on geographically large plantations positions ECO2 Forests the access to large reserves of lumber and the ability to harvest and meet demand all year round.

ECO2 Forests generates additional competitive advantage as an early mover in the Global Carbon Trading Market. This enables it to make its name as a provider and to secure market share ahead of later entrants.

The Global Forestry Plan allows for reforestation, afforestation and avoided deforestation projects, ensuring true and positive outcomes are achieved throughout the worldwide network of forests.

GLOBAL FORESTRY PLAN

REFORESTATION, AFFORESTATION, AVOIDED DEFORESTATION:
WHAT IS THE DIFFERENCE?

Reforestation projects replace land that has been logged unsustainably, or cleared for agricultural purposes that has led to land degradation, with new forests.

Afforestation projects grow new forests on land that has previously not been a forest, often saving the need to log existing old growth forests and rainforests.

Revenue streams for both reforestation and afforestation are intended to be generated from the sale of sustainable lumber and carbon credits derived from these forest plantations.

Avoided Deforestation projects under the Global Forestry Plan protect and preserve the land and forest from land use pressure such as unsustainable logging practices and poorly managed agricultural purposes.

Revenue streams are intended to be generated from the sale of carbon credits derived from these old growth forests and provide a sustainable employment avenue for local communities.

NEW FOREST SUSTAINABILITY MODEL

PROJECT EXECUTION

Secure Land
ECO2 Forests actively source and secure suitable forestry land from 1,000 acres to over 100,000 acres for projects in the Global Forestry Plan.

Capitalize Project
Capitalization of the project often begins during the acquisition of land, particularly in Project Partnerships. Investors can also invest directly into a specific project.

Plant Trees
The type of land secured and climatic conditions determine the type of Kiri Tree and planting system used for that project. After planting, the project moves into the sustainability cycle.

PROJECT SUSTAINABILITY CYCLE

Sell Carbon Credits
Once planting is completed, ECO2 Forests intend to sell carbon credits created through carbon sequestration over each harvest period. Mature Kiri Trees typically deliver up to 2.5 carbon credits per harvest cycle.

Grow Forest
A team of workers are onsite at all times conducting growth and maintenance programs to ensure the project meets targets and yields while maintaining a high level of lumber quality through active management.

Harvest
Harvest of mature Kiri Trees generally takes place after the 7th growing season with localized milling operations forming part of the Global Forestry Plan.

Sell Lumber
Lumber is intended to sold or pre-sold and prepared on site to meet specific specifications. Modern milling and distribution technologies position ECO2 Forests to deliver lumber of any dimension globally.

Regrowth
One of the most unique characteristics of the Kiri Tree is its ability to regenerate from the stump after harvest. The Kiri Tree grows again with the aid of a substantial root system already established. The Global Forestry Plan cycle then repeats its sustainable pattern for up 50 years, producing up to 7 harvests.

10 YEAR REVENUE GRAPH

ECO2 Forests, through the implementation of 1,000 acre forest modules, positions the company to leverage a step and repeat, incrementally increasing revenue model.

Revenue generated from each ECO2 Forests project is forecast to deliver long-term profit and shareholder value.

Based on the 1,000 acre forecast model (Table 1), Graph 1 below indicates the ongoing revenue generated from a 7,000 acre forest consisting of 7 x 1,000 acre modules.

As with all Global Forestry Plan projects, planting is divided over 7 consecutive planting seasons to deliver an annual lumber and carbon credit supply for the duration of the project.

The graph represents a 7,000 acre forests with 1,000 acres planted for each of the first 7 planting seasons.

KEY HIGHLIGHTS:
1: Carbon Credit revenue is forecast to begin in Year 1 at an estimated annual revenue of $7 million
2: Lumber harvested after 5 years is forecast to consistently return $30 million in revenue from Year 5
3: Lumber harvested after 7 Years is forecast to generate an annual revenue of $90 million.
4: Total revenue generated from this 7,000 acre Kiri Forest example is forecast to exceed $120 million annually .

DOWNLOAD: ECO2 Forests Company Brief 2010