Wen Lian Aquaculture Co Ltd.

Working Together for a Prosperous Future

Background

BC Company

Incorporated in 2007

A licensed hatchery to supply seeds

More than 30 years of hatchery and grow-out experience

Experience in sea cucumber, scallop,

geoduck and other species

Our Long Term Goal

Supply quality seeds to North America

Create new products

Create new markets

Ongoing R&D

Share Wealth

Operations

Locates at Royston (South of Courtenay)

Invested more than 3 millions since operation in 2008

Completed test spawning of various species in 2009

Commercial production in 2010

Operations (2)

Produced Manila clam, sea cucumber, geoduck and scallop seeds

Local demands for various species, e.g. mussel, oysters etc.

Expansion – November 2011

Currently with staff of 6, increase to 9

Increase capacity from 600 cu. meters of water body to 1,500 cu. meters

New capacity in terms of seeds:

15 million geoduck

120 million scallop

2.5 million sea cucumber

Future Expansion

Further investment of 3-4 million in next 2 years

Increase water body to 6,000 cu. meters

Work to export seeds to States

On-going cooperation with top ocean university in China to bring in advanced technology and equipment

Sea Cucumber

New species vs focused market

Current Sea Cucumber Operation

Restricted to 85 tickets to licensed holders

Annual wild catch production about 600 tons

Harvest limited to 8 weeks each year

Benefit only to ticket holders

Sales of Sea Cucumber - Farmers

Price sold to processing plant

(Wen Lian experience only):

2008: $2.70/lb

2009: $2.90/lb

2010 and early 2011: $3.20\lb

2011: around $7.00/lb

What is Price for 2012 Wild Catch?

Why no cultured sea cucumber in North America ?

No local consumption

No hatchery producing seeds

Limited knowledge in farming

Limited knowledge in market

Limited knowledge in processing

Few sea cucumber permits issued as farmers not aware of potentials

Our Plan

Supply Sea Cucumber seeds

Release seeds to tenure for sea raising

Seeding will enhance numbers in wild

Allow more people to participate

Year-round sustainable industry

Will lead to increase investment in processing, trucking and ocean freight

Benefits of Sea Cucumber Native specie

No/low start-up costs using if release to bottom within tenure (no line, no net, no cage)

No/low maintenance...no need to feed, change cages, rotate, thin..etc.

Co-exist with oysters, scallops, mussels...

Make most use of tenure (grounds not suitable for geoduck could be used for sea cucumber)

Benefits of Sea Cucumber(2)

Environmental friendly... no feed, no antibiotics, no debris, no disturbance to bottom when harvesting

Sight friendly... no buoy, no raft, nothing in sight

Short production cycle... 18-24 months to harvest

Seeding would enhance wild stock to allow increase in wild catch quota

Information on Sea Cucumber

3 to 20 m depth

Rocks and sea weeds

Up to 10 per sq.m

Move around a few meters if sufficient food available

Few predators

Harvest about 1-1.5lb (water drained) about 8 to 12 inches

Market

China and Asian countries

China is short in supply for

6,000 tons in 2011

10,000 tons in 2012

Wen Lian has 10 year contract to supply to China

Wen Lian can take more than 800 tons in 2012 and double that in 2013

Impact to Canada

Create a sustainable industry

Increase in export

Economic impact

BC's 600 tons are sold 3 months before harvest every year. If Wen Lian can add 1,000 tons by farming, that will bring revenue of 10 millions+ to farmers, not counting processing, trucking and shipping.

Wen Lians' Sea Cucumber Program

Sea cucumber seeds are very costly

Wen Lian is going to assist farmers to go into sea cucumber farming by:

supplying sea cucumber seeds free to exchange for “crop share” at time of harvest

Commitment to purchase farmers' share at prevailing market price

You Can Participate

Wen Lian will start the 2013 production season in December

Sea cucumber seeds for release prior to April 2013

The number of seeds Wen Lian is going to keep after spawning will subject to the demand from aquaculture farms

Obtain amendment to your aquaculture permits to include sea cucumber

Wen Lian will only supply seeds under signed JV agreement

More Information on Sea Cucumber

Wen Lian organized seminar in 2011 present by sea cucumber experts from China at the Centre for Shellfish Research of VIU

Presentation posted at web site of the Centre www.viu.ca/csr

Contact Information

Head Office: 1020 – 6188 Patterson Ave., Burnaby, BC, V5H 2N1. Tel: 604-569-6128

Hatchery Site: 4089 Gartley Point Road, Courtenay, BC, V9N 9T2. Tel: 250-871-5234

Albert Yu

604-889-8908

albert.yu@hotmail.com

Web-site:www.bcseafoodhatchery.com