1

OVERVIEW

• We are a forestland investment manager that invests in ecologically significant forestland in the Western United States

• Our investment strategy reduces reliance on traditional timber markets and creates additional value by monetizing over-looked sources of income from conservation easements, tax credits and environmental markets

• Unique capacity in combine private investor capital with low-cost concessionary debt and new market tax credits to generate superior returns

• Currently Launching Ecotrust Forests II: Raising $75 million in Equity

2

Pnw forests globally unique

3

PIONEERING A NEW MODEL FOR FORESTRY

4

carbon

5

0.0

200.0

400.0

600.0

800.0

1000.0

1200.0

0 5 15 25 35 45 55 65 75 85 95 105 115 125

Years After Clearcut

Met

ric

To

ns

CO

2e p

er A

cre

Douglas-fir, Pacific NW W side

Hemlock-Sitka Spruce, Pacific NW W side

Douglas-fir, Northern Rockies

Lodgepole Pine, Northern Rockies

Maple-Beech-Birch, Lakes States

Maple-Beech-Birch, Northeast

Loblolly-Shortleaf Pine, Southeast

Oak-Hickory, Southcentral

• Total demand forecasted for offsets in CA cap and trade is 200 MMT CO2e

• 8 MMT CO2e shortfall forecasted in first compliance period

• PNW forests have outstanding capacity to store carbon; one of few approved carbon offset project types.

water

6

biodiversity

7

community benefits

8

Greater number of jobs per acre harvested.

Long-term relationships with local contractors and additional forestry activities generate employment and community value

Enhanced community benefits in form of clean water, recreation, hunting, fishing, views

Access to New Market Tax Credit program with $3.5 billion of annual authority generates 25% subsidy for every $1 invested in an economically distressed community.

9

INVESTMENT STRATEGYWe employ an integrated forestland investment strategy that produces high-quality timber while

at the same time enhancing the health and resilience of ecosystems and rural communities

• We aim to identify and captures revenue from over-looked sources of value like conservation easements, restoration grants and environmental markets that can unlock additional income for investors

• Our integrated approach allows us to access low-cost capital via concessionary debt from foundations and tax credits for investments in economically depressed communities that are not usually available to other managers

FOR ILLUSTRATIVE PURPOSES ONLY

EXPENSES EXPENSES

10

CASE STUDY: FUND I - GARIBALDI

Mgmt Objective: Water Quality, Habitat RestorationActivity: Bridge replacement, log placement & pre-commercial thinning Grant Funding ($80 K)

Mgmt Objective: Economic Opportunity & AccessActivity: Firewood program & local employmentNew Market Tax Credits ($4M)

Mgmt Objective: Forest StructureActivity: Variable Retention HarvestTimber Income ($550K)

Mgmt Objective: Carbon, Water & Species ProtectionActivity: Potential 1215 acre road less reserve in Moss Creek watershedCarbon Credits / Mitigation Bank funding (Potential $5M)

GARIBALDI PROPERTY MAP

EFM has generated timber income, carbon offsets, tax credits and conservation funding on the Garibaldi property

11

ECOTRUST FORESTS I – HIGHLIGHTS

• Harvested ~7 MMBF on properties, using silvicultural treatments like variable retention harvesting, patch cuts and pre-commercial thinning

• Attracted ~$300,000 in conservation funding that enabled us to execute log placements, pre-commercial thinning and habitat creation

• Entered into carbon transactions valued at $500,000

• Ecotrust Forests, LLC is an open ended, perpetual duration investment fund managed by EFM

• Acquired 4 properties in Oregon and Washington between 2005 and 2012* totaling ~13,000 acres

• Secured New Market Tax Credit transactions that provided below-market financing for all of our property acquisitions, leveraging investor capital by $7 million without dilution.

• 3 properties purchased between 2005-06. • Garibaldi: Bought in phases between 2006-2010

• 1 follow-on investment in 2012 (Dickey-Gap)

ECOTRUST FORESTS II - INVESTMENT STRATEGY

12

• Proprietary deal flow • Customized Spatial analytical tools• Differentiated valuation and due

diligence capacity

• Integrative management approach that generates unique monetization opportunities

• Relationships and technical capacity to integrate conservation strategy with timber production model

• Relationships with strategic buyers and timberland market actors creates flexibility in exit options

SAMPLE ACQUISITION - SKOKOMISH

13

observations

14

Opportunities to monetize ecosystem markets are expanding, but there is considerable investor fatigue, especially with carbon

Successful investment strategies access carbon (and other ecosystem service markets) to enhance results but do not rely on them.

Continuing investment needed in carbon (and other ecosystem service market) accounting, tax treatment, and valuation – implications for property exit.

Forestland investment has potential to combine traditional financial benefits of timberland (inflation hedge, diversification, low risk) with exposure to emerging ecosystem service markets for a superior integrated return.

15

Tangible. Stable.Secure.Intergenerational.

For further information: Amrita Vijay Kumar, amrita@ecotrustforests.com; (503)

467-0801Bettina von Hagen, bettina@ecotrustforests.com; (503) 467-

0756