AUSPINE VALUATION

Pöyry Auckland has undertaken an independent market valuation of the Australian Auspine plantation tree crop as at 30 June 2007. The plantations are located in the states of South Australia and Victoria, Australia.

The purpose of the valuation was to assist Auspine's shareholders to assess a takeover offer and other alternatives.

The valuation required recognition of Covenant Holders and Investors liabilities.

A combination of Comparable sales and Expectation approach methodology was used for this valuation.

A sensitivity analysis considered the effects of Discount Rate and Log Price assumptions on value.