TFS Sandalwood 2012 Project

Key features include:

• NEW LOT SIZE - Woodlot size has been reduced to 1/12th of a hectare.
• SMALLER ENTRY COST - Entry cost has subsequently reduced to $6,875 per woodlot (including GST) for an application of 1-11 woodlots. The establishment fee for applications of 12 woodlots or more is set at $6,600 per woodlot (including GST).
• LONG TERM FINANCE - Finance is available for approved applicants for up to 90% (10% deposit) of the establishment fee for terms up to 6 years with an interest rate of 12.5% pa.
• ENHANCED INVESTOR PROTECTION - Innovative investor protection measures include:
• TFS will deposit 50% of the establishment fee into a custodial account controlled by an Independent Custodian. Funds will be released to the Responsible Entity (RE) progressively during the planting period to ensure completion of the plantation’s establishment.
• One year’s rent and management fee is to be paid upfront by the investor and then deposited by TFS into an independently controlled custodian account. This upfront fee will be set aside in case a replacement Responsible Entity is required to complete management services during the term of the project. This fee is also subject to the finance package.
• Should a replacement Responsible Entity be required, the current annual deferral option will switch to compulsory annual rent and management fees.
• 100% TAX DEDUCTIBLE - All costs are anticipated to be 100% tax deductible in the year that the expenses are paid as per prior projects subject to receiving confirmation via the ATO Product Ruling.

• STRONG BALANCE SHEET - TFS has a strong balance sheet and has a secure future to ensure completion of plantation management services for investors.
• WORLD’S LARGEST - TFS has established a 5,000 hectare Indian Sandalwood estate making TFS the world’s largest commercial operator in the Indian Sandalwood industry.
• EXPERTS - TFS has the most extensive knowledge and expertise in relation to prices, markets and uses of Indian Sandalwood. No other organisation has the depth of experience and expertise about the industry that TFS enjoys.

TFS Confirms Long Term MIS Program

TFS is pleased to announce that it intends to offer a retail MIS Indian Sandalwood Project beyond 2012. Due to the failure of so many former peers in this sector TFS has committed considerable time and effort investigating the viability of the sector going forward. TFS is and will remain mindful of the rights and expectations of the individual growers and has addressed some of the real concerns of potential investors and their advisers by including more security for growers by adding the following enhancements to its 2012 Project:

• TFS will deposit 50% of the establishment fee of each woodlot with an independent Custodian which will be released quarterly during the first year, as the grower’s plantation is established.


• The PDS requires each grower to pay 1 year Annual Fee and Rent (Upfront Fee) at the time of investment which will also be deposited with the independent Custodian.