ELGUANACASTE BLANCO

Costa Rica

Disclosure THE INFORMATION CONTAINED IN THIS DOCUMENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY, IS NOT

COMPREHENSIVE, DOES NOT CONTAIN IMPORTANT DISCLOSURES AND RISK FACTORS ASSOCIATED WITH AN INVESTMENT IN COSTA RICA OR OTHERWISE WITH EL GUANACASTE BLANCO, AND IS SUBJECT TO CHANGE WITHOUT NOTICE.

NO INFORMATION CONTAINED IN ANY PART OF THIS DOCUMENT IS AN OFFER TO BUY OR SELL, OR A SOLICITATION OF AN OFFER TO BUY OR SELL AN INVESTMENT. IF ANY OFFER TO INVEST IS MADE, IT SHALL BE PURSUANT TO A DEFINITIVE PRIVATE PLACEMENT MEMORANDUM PREPARED BY OR ON BEHALF OF EL GUANACASTE BLANCO WHICH WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED HEREIN AND WHICH SHALL SUPERSEDE THIS INFORMATION IN ITS ENTIRETY.

ANY DECISION TO INVEST IN EL GUANACASTE BLANCO SHOULD BE MADE AFTER REVIEWING THE DEFINITIVE PRIVATE PLACEMENT MEMORANDUM AND RELATED DOCUMENTS, CONDUCTING SUCH INVESTIGATIONS AS THE INVESTOR DEEMS NECESSARY, AND CONSULTING THE INVESTOR’S OWN INVESTMENT, LEGAL, ACCOUNTING, AND TAX ADVISORS IN ORDER TO MAKE AN INDEPENDENT DETERMINATION OF THE SUITABILITY AND CONSEQUENCES OF SUCH AN INVESTMENT.

ALTHOUGH THE ASSUMPTIONS UNDERLYING THE CONTENT HEREIN ARE NOT UNREASONABLE UNDER CURRENTLY EXISTING CIRCUMSTANCES AND CONDITIONS RELATING TO THE TARGETED INDUSTRY AND INTENDED PROJECTS, THEY ARE ONLY ASSUMPTIONS AND SHOULD NOT BE INDEPENDENTLY RELIED UPON WHEN CONSIDERING AN INVESTMENT WITH THE FUND. SUCH ASSUMPTIONS MAY NOT ULTIMATELY TURN OUT TO BE ACCURATE AND ARE IN NO CASE GUARANTEES OF PERFORMANCE. THEIR ACCURACY MAY BE AFFECTED BY A NUMBER OF FACTORS, SUCH AS ECONOMIC AND POLITICAL CONDITIONS, CONSUMER PREFERENCES, WEATHER, AND NATIONAL HEALTH OR OTHER CRISES. AS EACH OF THE PROJECTS IS UNIQUE IN NATURE THERE IS NO HISTORICAL PERFORMANCE BASED ON WHICH TO VALIDATE THE ASSUMPTIONS RELATING THERETO.

IN ADDITION TO OTHER FACTORS THAT MAY AFFECT THE PROJECTS, THEREBY PRODUCING RESULTS THAT ARE DIFFERENT THAN THE ASSUMPTIONS, THE TIMING FOR ESTABLISHMENT EL GUANACASTE BLANCO AND ITS BUSINESSES, AND THE TIMING FOR DEVELOPMENT AND PROGRESS OF THE PROJECT MAY SIGNIFICANTLY AFFECT PROJECT COSTS PRODUCING A MATERIAL DIFFERENCE IN THE OVERALL PERFORMANCE OF EL GUANACASTE BLANCO.

Costa Rica• Size: 20,000 square miles (about the size of West

Virginia) with 6% of the world’s total biodiversity.

• Illustrious views from ocean and tropical rain forests, sandy beaches, corral reefs, to cloud forests with active volcanoes

• Population: 4 Million

• 25% of Costa Rica’s national territory is already “protected” to preserve the Country’s greatest asset – ecotourism

• Oldest and most stable democratic governments in Latin America.

• The Worlds new playground for all lifestyles

• Fast emerging as the premier resort and residential destination

• Attractive foreign investment opportunities for growing “Global Citizens”

Costa Rica

Guanacaste,Costa Rica

Guanacaste is referred to as the “Gold Coast”of Latin America. With the Four Seasons opening

4 years ago to the recent opening of the RIU, theseestablished brands are here with more coming.

Costa Rica

Costa Rica

Peninsula Papagayo, one of the most successful luxury resort brand in Central America today, has opened Phase I of Marina Papagayo.

This is Costa Rica’s first luxury port.

Papagayo’s oceanfront Marina Village will exude the spirit of Costa Rica within a cozy European ambiance similar to Portofino, Italy.

Located on 2,300 acres, the Peninsula Papagayo includes the 153 room-Four Seasons Resort Costa Rica at Peninsula Papagayo, a private 6,788-yard Arnold Palmer signature golf course, the first of three resort courses, a 30,000 square-foot Golf Clubhouse and private members-only lounge and the newly-opened Prieta Beach Club & Spa - an open-air recreation, spa and dining complex with unmatched views of the setting sun.

Costa Rica

Opened November, 2009

Located at Playa Matapalo, Guanacaste, in the north-west of Costa Rica.

Located just south of the Gold Coast Fund Assets

5 Star Resort with 701 Rooms

90% Occupancy

Their value proposition: A place where one can enjoy the possibilities offered by the privileged surroundings - relaxation and water activities on the beautiful beaches; diving or fishing in the waters of the Pacific; and eco-tourism in the volcanic areas and natural sanctuaries.

100 Resorts in 17 countries

Why Is Costa Rica Stable In Current Markets

Costa Rica’s real estate market is funded by private capital and foreign buyers. Whereas the market in the United States is critically dependent on high leverage financing products, institutional financing and the job market, all of which have been recently decimated.

During the first six months of 2008, despite slowing US economic growth, as well as rising global food, fuel and airline prices, international arrivals to Costa Rica increased 12% over the same period last year.  This statistic follows a ten year compound average growth rate in arrivals of over 9%.

With the expected explosion of retiring baby boomers, demand for property in Costa Rica , a world “Blue Zone”, is poised for long-term growth driven by lifestyle, climate and health care.

Other popular markets like Mexico are less attractive due to high prices, taxes and crime.

Increase in taxes, general cost of living and health care cost in traditional retirement markets like California, Arizona and Florida make Costa Rica the standout choice in a growing movement towards being a global citizen

Industry Reports On Costa Rica

Financial Times of London named Costa Rica the second most attractive location in Central America and the Caribbean for Foreign Direct Investment (FDI) – August, 2009

Costa Rica rank #1 Happiest place in the World – July, 2009

Costa Rica rank #1 in Retirement benefits – Latin World, 2009

Costa Rica ranked 8th most stable country in the world, March, 2009

Wall Street Legend Kaufman eyes investment in Costa Rica, April, 2009

As noted by Jones Lang LaSalle Market Watch, May, 2008: “Costa Rica has emerged as an investment hotspot, boasting a burgeoning upscale and luxury development pipeline. Costa Rica still provides much fertile ground for real estate investors and developers to expand their search for profitable growth”

As quoted by Cornell University Study in 2007 “Our exploration focuses on Costa Rica, which is by any measure an attractive destination that is growing in popularity”

Note: all reports can be made available upon request

Costa Rica: Lifestyle & Adventure

Oldest and most stable democratic governments in Latin America and has one of the highest literacy rates in the world (95%).

Costa Rica has one of the highest standards of living in Latin America.

It also has one of the longest life-expectancy rates on earth.

Costa Rica is one of the five parts of the world -- "Blue Zones" -- where people live measurably longer lives.

Costa Rica is home to more Americans (per capita) than any other country outside of the U.S.

A delightful, near perfect tropical climate, low violent-crime rate, stable democratic government and a plethora of outdoor activities to partake in year round, Americans seem to have no trouble adopting Costa Rica as their new home.

Costa Rican health care is not only affordable, but widely available to retirees from other countries

No taxes on retirement income.

Costa Rica: Infrastructure & Investment

Liberia International Airport Opened in 2002

More and more tourists are flying into Guanacaste instead of San Jose due to the airports proximity to all major beaches and resorts as well as National Parks

Delta, Continental, American Airlines, Northwest, United, US Airways with non stops from Los Angeles, New York, Miami, Dallas, Atlanta

Q4, 2008, Houston Airport Systems Development Company was awarded the government contract to expand the airport and will invest $27M. Construction has started.

New San Jose interstate and Guanacaste power plant

0

200

400

600

800

2003 2004 2005 2006 2007 2008 2009 2010 2011

610% Growth

Passenger Growth

El Guanacaste Blanco Site Map

El Guanacaste Blanco Site Map

El Guanacaste Blanco

El Guanacaste Blanco Floor Plan

El Guanacaste Blanco Floor Plan

El Guanacaste Blanco

El Guanacaste Blanco Floor Plan

El Guanacaste Blanco Property

El Guanacaste Blanco Financials 47 Units

44 Two Bedroom units at 1,313 square feet (122.10 m2) 3 Three Bedroom units at 1,618 square feet (150.50 m2)

Projected total revenue of $ 12,150,000

Projected total cost of $ 6,460,640 Construction costs: $ 5,590,078 Operating costs: $ 870,562

Projected Net Income of $ 5,689,360

El Guanacaste Blanco Sales

Sales Projections  Sq Ft Year 1 Year 2 Year 3 Year 4 TotalTwo Bedroom 1,313 4 12 14 14 44 Three Bedroom 1,618 0 0 2 1 3

Total Sales 4 12 16 15 47

Sq Ft Sold

Contracted Revenue Price/Unit

Two Bedroom 1st Flr. (8 units) 195,000 195,000 390,000 390,000 585,000 1,560,000 2nd Flr. (8 units) 225,000 0 225,000 675,000 900,000 1,800,000 3rd Flr. (8 units) 250,000 500,000 500,000 500,000 500,000 2,000,000 4th Flr. (8 units) 275,000 0 1,100,000 550,000 550,000 2,200,000

Oceanview 5th Flr. (6 units) 295,000 295,000 590,000 590,000 885,000 1,770,000

6th Flr. (6 units) 295,000 0 295,000 885,000 0 1,770,000

Three Bedroom (3 units) 350,000 0 0 700,000 350,000 1,050,000

Total Revenue   990,000 3,100,000 4,290,000 3,770,000 12,150,000

El Guanacaste Blanco Costs

Construction Year 1 Year 2 Year 3 Year4 Total

Two Bedroom Construction (1313sq.ft) $70/ft2 20 units 24 units 44 units

1,838,200 2,205,840 4,044,040

Three Bedroom Construction (1618sq.ft) $70/ft2 3 units 0 3 units 339,780 0 339,780

4,383,820

Roads & Related Infrastructure 125,000 125,000 Electrical Infrastructure 200,000 200,000 Pools 200,000 200,000 Water & Tanks 20,000 20,000 Water Treatment Plant 80,000 80,000 Design/Engineering/Permits 45,000 45,000 90,000 Misc. Landscaping & Fencing 20,000 20,000 20,000 10,000 70,000 Project Management 3% 77,532 77,532 0.00 0.00 155,064Direct Construction Total 2,945,512 2,348,372 20,000 10,000 5,323,884

Contingency 5% 123,399 107,418.60 16,000 15,500 266,194.20

Total Construction 3,068,9112,455,790.6

0 56,000 35,500 5,590,078.20

Operating Expenses            Marketing 15,000 15,000 15,000 15,000 60,000 Legal 0.5% 15,345 12,279 199 128 27,950Operating Expenses 3.0% 92,067 73,674 1,196 765 167,702Development Fee 5.0% 153,446 122,790 1,994 1,275 279,503Sales Commission 6.0% 184,135 147,347 2,393 1,530 335,405

Total Operating Expenses   459,992 371,090 20,782 18,698 870,562

El Guanacaste Blanco Summary

Sales Projections  Sq Ft Year 1 Year 2 Year 3 Year 4 Total

Two Bedroom 1,313 4 12 14 14 44

Three Bedroom 1,618 0 0 2 1 3

Total Sales 4 12 16 15 47

Sq Ft Sold 5,252 sq.ft 15,756 sq.ft 21,518 sq.ft 20,000 sq.ft 62,526 sq.ft

Total Revenue   990,000 3,100,000 4,290,000 3,770,000 12,150,000

Total Construction 3,068,911 2,455,790.60 39,877 25,500 5,590,078

Total Operating Expenses   459,992.24 371,089.695 20,782 18,698 870,562

Total Expenses 3,528,903 2,826,880.30 60,659 44,198 6,460,640

EBITDA(revenue- expenses) -2,538,903 +273,120 +4,229,341 +3,725,802 5,689,360

Cumulative Cash Flow -2,538,903 -2,265,783 +1,963,558 +5,689,360