SELWANE NATURE RESERVE

April 2015

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ETable of Contents Background and Location High Value Breeding Programs The Process Concept and Responsibilities Business Models and Estimates

Sable Antelope Nyala Black Impala

Farm Layout Lodges Game Breeding in the News Management

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EBackground and Location

Selwane Nature Reserve is situated on 4100ha of wild Africa in the Phalaborwa area of Limpopo. The Reserve has hundreds of different animal species like Zebra, Impala, Kudu, Giraffes and Waterbuck. We are currently busy setting up breeding programs for exotic species like Sable, Nyala, Black Impala, Buffalo.

The Reserve also makes for a great stay over if you are on your way or returning from the Kruger National Park as it is only 50km away.

Our up market Leadwood and Baobab Lodges can accommodate 12 people. The Bush braai tent camp is where we hold events like the 'Spirit of Africa' and other team building events can accommodate up to 60 people.

Our Management team and helpful staff will make your stay here a pleasant one and leave you feeling refreshed and relaxed.

Come and visit us to experience what Africa has to offer.

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EMap

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EHigh Value Breeding Programs

Selwane Nature Reserve is cooperating with international investors to take part in breeding of endangered species.

The breeders (Selwane Nature Reserve) handles the setup of the necessary infrastructure (fences and camps), including the related feeding on a daily basis and veterinary services.

The investors buy their own set of animals. The initial herd remains the property of the investors. Offspring are shared between investors and breeders on a 50/50 basis. The investors carries no extra costs apart from the initial investment to buy the breeding animals, and the investor remains the sole owner of the originally purchased herd.

Detailed overviews are given in the various Breeding Models listed later in this presentation. As shown in the models, the ROI for the investors are expected to be in the range of 30-50% per year.

The Process 10-20 Females + 1 Male

Maximizes the number of calves

Long term investment 3-7 years depending on the species

No dividend the first 3 years

Animals captured and transported during the winter season Investor entry/exit is once a year in case animals needs to be

sourced from/sold to other farms

Programs can be extended

Investor exit = SNR has the right of first refusal

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EOwnership of Herd and Split of Offspring

Investors (Original Herd)

Investors(50% Offspring)

Breeders(50% Offspring)

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EThe Breeding ConceptSelwane Nature Reserve Investor

50% share of the offspring 50% share of the offspring

Provide land, infrastructure and expertise Provide initial breeding stock

Identifies animals to purchase (tagged and chipped) Purchase animals from Selwane or seller

Carries all cost for food and general veterinary services No cost towards infrastructure and maintenance

Provide quarterly reports Receive quarterly reports

Build the Selwane Brand Access to our luxury accommodation

Sales and Marketing Enjoy financial returns from a fast growing industry

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EOur ResponsibilitiesSelwane Nature Reserve Investor

Land, infrastructure, vehicles, equipment, systems, staff, electricity, water and expansion

No cost on land, infrastructure, vehicles, equipment, systems, staff, electricity, water and expansion

All salaries for farm and game management staff No cost on salaries

All maintenance costs No maintenance cost

All feeding costs No feeding costs

All normal ongoing veterinary services No normal and ongoing vet and meds costs

All day-to-day operational costs No day-to-day operational costs

Marketing and advertising costs No marketing or advertising costs

All permit and registration costs No costs for permits and regisrations

Selwane carries certain costs pertaining to receiving animals and placing them in camps (admin on each animal, dna, blood and pre-meds)

10% initiation fee, transport and vet cost to translocate initial breeding herd, and in some cases tags and micro chips

Selwane Nature Reserve pays its own taxes on icome received

Investor pay his own taxes on income received

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EAverage Game Price 2008-2012

Source: Johan Van der Merwe

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ESable Antelope

Sable antelopes (hippotragus niger) are considered to be a “high value, rare game” and “conservation dependent” species. The total sable population in Africa is estimated to be 75000. The “free roaming” population of 15000 is declining. Sable breeding in private farms and conservancies are replenishing the losses.

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ESable Antelope - Assumptions

All currency = USD

Purchase Price Cow 80 000$ Selling Price Growth Cow 80 000$ Purchase Price Bull 200 000$ Selling Price Heifer 70 000$ Selling Price Bull Calf 6 000$ Mortality 10 %Ratio Cows/Bull 10 % births Female to Male 50 %% price escalation/year 5 %

Number of Females 10Number of Males 1Initial Capital Cost of Herd 1 000 000$

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ESable – Herd Composition (Example)

Herd Composition @ end of year 1 2 3 4 5 6 7 8

Female Cow 10,00

10,00

10,00

10,00

10,00

10,00

10,00

10,00

Breeding Bul

1,00

1,00 2,00

2,00

3,00

4,00

5,00

7,00

Growth Female Cow

-

- 4,50

9,00

15,53

24,08

35,56

50,90

Heifer

4,50

9,00 11,03

15,08

20,04

26,82

35,84

47,91

Bull Calf

4,50

9,00 15,53

24,08

35,56

50,90

71,40

98,80

Total Herd 20,00

29,00

43,05

60,15

84,12

115,79

157,80

214,60

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ESable – Herd Composition (Example)

1 2 3 4 5 6 7 8 -

50.00

100.00

150.00

200.00

250.00

Bull CalfHeiferGrowth Female CowBreeding BulFemale Cow

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ESable Antelope – Investment Model (Example)

Investment amount $ 1 000 000Result: IRR ~31% over 8 years

Herd Value @ End of Year 1 2 3 4 5 6 7 8Investor ValueFemale Cow 800 000 840 000 882 000 926 100 972 405 1 021 025 1 072 077 1 125 680 Breeding Bul 200 000 210 000 441 000 463 050 729 304 1 021 025 1 340 096 1 969 941 Investor Herd Value @ Year End 1 000 000 1 050 000 1 323 000 1 389 150 1 701 709 2 042 051 2 412 172 3 095 621 Joint Value due to growthGrowth Female Cow - - 396 900 833 490 1 509 659 2 458 118 3 812 438 5 729 150 Heifer 315 000 661 500 850 854 1 221 584 1 704 793 2 396 091 3 361 686 4 718 531 Bull Calf 27 000 56 700 102 698 167 219 259 350 389 738 574 077 834 132 Joint Value due to growth 342 000 718 200 1 350 452 2 222 293 3 473 801 5 243 947 7 748 201 11 281 813 Year End Value of combined herd 1 342 000 1 768 200 2 673 452 3 611 443 5 175 510 7 285 998 10 160 374 14 377 434

Net Investor Value Add 50% of the growthCapital -1 000 000 - -220 500 - -243 101 -255 256 -268 019 -562 840 Net Investor Value Add 50% of the growth 1 171 000 1 409 100 1 998 226 2 500 296 3 438 609 4 664 024 6 286 273 8 736 527

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ESable Antelope – Investment Model (Example)

1 2 3 4 5 6 7 8 -

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

Net Investor Value Add 50% of the Growth

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ENyala

Today over 80% of the total population is protected in national parks and sanctuaries, mostly in South African protected areas. These are the Ndumo Game Reserve, uMkuze Game Reserve and Hluhluwe-Umfolozi Game Reserve and Kruger National Park. 10 to 15% occur on private land like the Selwane Nature Reserve. They mostly occur in South Africa due to the high demand for adult males as game trophies.

Investment amount R 1 050 000 (USD 105.000)30 female ewes - 2 male ramsResult: 200%-300% return after 5 years

New Black Impala Programs in 2015

$500 $75000

Black offspring from 3rd generation and onwardsROI of 10(!) times the investment after 7 years

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EFarm Layout

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ELeadwood Lodge

McKnights Cottage

Baobab Lodge

Bush Braai

Follow us:

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EA Bull Market of a Different Kind

The Wall Street Journal http://online.wsj.com/news/articles/SB10001424052702303563304579445382496815614

Photography by Charlie Shoemaker for WSJ.Money

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EBoom in Game Prices…

The Financial Mailhttp://www.financialmail.co.za/fm/2013/08/15/boom-in-game-prices-divides-game-experts

Norman Adami - SA Breweries executive chairman, game farmer and WRSA marketing director

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E

Mr Niel Fourie

Mr Herman Fourie

Mr Jurie Lombard Mr Magnus Pedersen

Management Team

Founder & Director Founder Director

Manager and PH ManagerAdmin ManagerMrs Anel Fourie Mr Sonti Malatji