www.ebtpelletfuel.com1 January 2010

S.I.V. Holdings Ltd (hereafter referred to as the “Company”

or “SIV”) currently operates one plant with 2 Mt/hour

production capacity in Ivano-Frankivsk region

The Company has already chosen four additional locations

for production sites and have preliminary agreements with

local authorities to secure long-term development. Each

location has a sufficient raw material base (one in Rivne

and three in Ivano-Frankivsk region)

SIV benefits from the following advantages:

Excellent location: close proximity to European Union

(EU) – the largest and most prospective market for SIV

products

Potential sales agreements directly with power

producers

Availability of detailed and comprehensive financial

model and business plan, highlighting clear vision and

distinct focus on future operations of the Company

Strong management team in place with well-developed

political and financial connections, which is fully

qualified to lead the Company to the next stage of its

development

Ongoing discussions about private placement with

several potential Strategic Investors

SIV production location

Management:

Strong management team in place with well-developed political

and financial connections

Production:

Existing production – 2 Mt/hour;

All four additional locations for future production sites have

preliminary agreements with local authorities already in place

Procurement:

Harvested lumber in 2008:

Ivano-Frankivsk – 865 ths. m3(Source: Appendix 1)

Rivne– 1,321 ths. m3(Source: Appendix 1)

Project descriptionOverview of the Company

2

Demand

Currently, the market for pellets is moving through its

growth phase, supported by Europe, which has evolved

into the largest consumer of wood pellets in the world.

Consumption in 2008 is estimated to be over 8 million

tons, with Sweden, Denmark, the Netherlands, Belgium

and Italy being the largest consumers on the continent

Geographical location of Ukraine is one of the major

factors, which contributes to business development with

EU

It is estimated that production as well as demand will

double over the next 4-5 years and some industry experts

forecast an annual growth of 25-30% globally over the

next ten years

Supply

Currently there is a clear playing field for pellet production

in Ukraine. According to some market experts, there are

no more than 15 wood pellets production plants in Ukraine

at this moment. Annual pellets production output in

Ukraine is estimated to range from 20,000 to 200,000

tones, but is highly fragmented, poorly financed, and

mostly relying on outdated technology

EU production vs. demand projections (mln tons)

Overview of all EU pellet production plans

32009 S.I.V. Holdings Ltd. A Company incorporated under the Cyprus law. All rights reserved. Printed in Ukraine

Project descriptionOverview of the Industry

Source: www.pelletsatlas.info

5.5 6.08.0

10.0

12.5

15.6

19.5

24.4

4.5 5.06.6

8.310.3

12.9

16.1

20.2

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2006 2007 2008E 2009E 2010E 2011E 2012E 2013E

Demand

Production

Source: Market experts’ estimate

SIV aims to harness the vast amount of Ukrainian-based

waste, and steward this renewable asset in a

sustainable, and environmentally friendly way to provide

for a cleaner and safer world

The Project further stipulates an increase in the

Company‟s production capacity to 40 plants by

construction of additional 39 plants

The development plan envisions an increase in the total

quantity of plants by nine units over the first 24 month

period. As soon as the Company operates ten plants, it will

generate surplus cash that can be reinvested to meet

future investment costs

The Company‟s management also looks for further

opportunities to merge with a well-managed, Ukrainian

Agricultural Company in order to safeguard and diversify

its raw material resource base for its growing production

5. IPO in 2011 - 2014

1. Attract Strategic / Financial Investor

3.Merge with Agricultural Company (to safeguard resource base)

4. Begin Production of MBP 1

4

Project descriptionOverview of the Strategy

2. Further production expansion

6.Bio Energy sector leader

Note 1: MBP - Mixed biomass pellets are a newcomer on the pellet market. Due to low production costs this biofuel

became very attractive. MBP can be produced from straw, grains, various types of grass, leguminous

plants, flowers, fruit and a mixture of these materials (with some wood added).

STRATEGY

The strategic goal of the Company is to become the leading Bio Energy Company

in Eastern Europe

5

The source of raw materials for pellet production in

Ukraine is closely connected with wood-working and

agricultural industries

Wood-working output and waste in Ukraine

Experts agree that throughout the different stages of

production process in the timber and wood-working

industry, wood waste may comprise up to 50% of the

output

Based on wood industry experts representation there were

approximately 15 million cubic meters of liquid lumber

harvested in 2008 (see Appendix for details). If

smaller, „mom & pop‟, sawmill operations are taken into

account, this figure doubles

Wood-working output and wood waste in Ukraine

5,200

6,727

8,303

9,180

10,670

0

2,000

4,000

6,000

8,000

10,000

12,000

2003 2004 2005 2006 2007

th m

3

Wood products

Wood waste

Source: Ukrainian Statistics & Management’s estimate

Project descriptionRaw material base (Wood waste)

6

Agricultural Production output and agricultural

residues in Ukraine

Based on experts‟ representation, there is 1.5-2.0 tonnes

of straw, on average, for each tonne of cereal and oilseed

crop produced. Based on USDA data the crop production

for 2009 is 39 million tonnes which produced from 65 to 77

million tonnes of straw, the majority of which was either

shredded behind combines or burned in the field

An Agricultural Company harvesting 30 thousand

hectares, with an average yield of 3 tonnes per hectare will

potentially produce enough straw for producing

approximately 90 thousand tonnes of pellets and leave

one tonne of straw per hectare for soil conservation and

replenishment

Thus, in a further measure to sustainably „backup‟ the

company with straw required for production of up to

500,000 tonnes of pellets, SIV would require Agriculturally

cropped land of circa 160,000 hectares, which represents

less than 0.5% of Ukraine‟s arable land

Cropping and Residues 2007- 2009

Source: USDA Data, Management’s estimate

Project descriptionRaw material base (Residues)

29

52

39

48

87

6557

104

77

0

20

40

60

80

100

120

2007 2008 2009E

mln

. to

nn

es.

Crop Production

straw min

straw max

7

Financial statements track record

The Company implemented International Financial

Reporting Standards (IFRS) and has track record of

preparing financial statements under IFRS for the year

ended 31 December 2009 and 31 December 20098

Extract of Balance sheet and profit and loss is shown

below

Full set of the financial statements is available upon

request

FinancialsFinancial statements (IFRS)

Balance sheet as at 31Dec09, 08 and 1Jan08(in UAH thousands) 31Dec09 31Dec08 1Jan08

Assets

Non-current assetsProperty, plant and equipment 4,341 4,697 735

Current assetsInventories 569 363 119Trade and other receivables 130 37 4Cash and cash equivalents 2 - -

701 400 123Total assets 5,042 5,097 858

Equity and liabilities

EquityStatutory fund 1,645 42 42Reserves 4,040 4,040 -Retained earnings (781) (222) -

4,904 3,860 42Non-current liabilitiesLong-term loans and borrowings 41 52 64

Current liabilitiesShort-term loans and borrowings 11 899 712Trade and other payables 86 286 40

97 1,185 752Equity and liabilities 5,042 5,097 858

Profit & loss for the year ended 31Dec09 and 08

(in UAH thousands) 2009 2008

Revenues 230 71Cost of revenues (828) (290)

Gross profit (598) (219)Administrative, selling and

distribution expenses (10) (3)Financial income 49 -

Profit before tax (559) (222)Income tax expenses - -

Net income (559) (222)Source: IFRS financial statements

Source: IFRS financial statements

Indicators of investment attractiveness:

Taking into account that the Ukrainian government has

moved to support energy saving projects realized in

Ukraine by income tax exemption for 2009-2013, of which

SIV is party to we have also performed of two scenarios:

Scenario 1 – not tax for 5 years (most probable)

Scenario 2 – normal tax

EBITDA (EURmln) & net profit margin (%)

Based on the above scenarios financial indicators are as

follows:

Project‟s net present value amounts to EUR70 to 76.1million (real discount rate 14.00%)

Enterprise value, when the Company will reach its

target production capacity is circa EUR136 million

Project payback period is 4.0 – 5.2 years

Discounted Project payback period is 4.8 – 5.6 years

ROI

8

EconomicsValuation summary

Source: Management’s estimateSource: Management’s estimate

0%

50%

100%

150%

200%

250%

2010 2011 2012 2013 2014 2015

ROI - Scenario 1 ROI - Scenario 2

3.86

9.27

14.15

19.05

24.64 24.64

30%

43% 44% 46%

35% 35%

22%

32% 32% 33%

-

10%

20%

30%

40%

50%

-

5.00

10.00

15.00

20.00

25.00

30.00

2010F 2011F 2012F 2013F 2014F 2015FEBITDA Net Profit Margin - Scenario 1

Net Profit Margin - Scenario 2

Project financing

It has been assumed that the ten production plants would

be built over a two-year period, with a total capital

requirement of circa EUR10.7 – 14.5 million. In

practice, because the plants function independently, the

rate at which they are constructed can be easily adjusted

according to the available funding

The plan is to finance the project with a combination of

equity 30% and debt 70% as shown in the tables on the

right

SIV project gives investors a very attractive internal rate

of return (IRR) 51% for 5 calculated based on 5 year

period and 94% - 10 year period

Interest rate for the debt financing was assumed to be

12.5% in 2010 with decrease down to 10% starting from

2011

Use of funds and financing sources (scenario – NO TAX)

in EUR '000 2010 2011 2012 2013 2014 2015Working capital 410 1,101 1,133 1,132 1,274 -

CAPEX 9,964 10,020 11,377 11,391 12,804 169Sawmill waste line 9,401 9,401 10,744 10,744 12,087 -Other CAPEX 563 619 633 647 717 169

Total

External financing 7,200 2,436 - 9,636Equity 2,160 731 - 2,891Loan 5,040 1,705 - 6,745

Self financed 3,174 8,685 12,510 12,523 14,078 169

9

EconomicsFinancing requironments

Source: Management’s estimate

Source: Management’s estimate

Use of funds and financing sources(scenario – NORMAL TAX)

in EUR '000 2010 2011 2012 2013 2014 2015Working capital 410 1,101 1,133 1,132 1,274 -

CAPEX 9,964 10,020 11,377 11,391 12,804 169Sawmill waste line 9,401 9,401 10,744 10,744 12,087 -Other CAPEX 563 619 633 647 717 169

Total

External financing 7,864 4,380 2,142 14,386Equity 2,359 1,314 643 4,316Loan 5,505 3,066 1,500 10,070

Self financed 2,510 6,741 10,368 12,523 14,078 169

IRR for equity participants

Scenario 1 Scenario 2 Average

IRR 5 years 69% 33% 51%

IRR 10 years 105% 84% 94%

10

OrganizationCompany’s Management

Director Chris Chatterton, has extensive experience in building large-scale energy businesses in challenging

environments, and in very pioneering roles, in the CIS and Asia, in an executive capacity, to include The

AES Corporation, D1 Oils PLC, and Yukos Oil. Most recently, Chris was instrumental in raising initial

funding for Landkom Ukraine, and also one of the founding shareholders in Landkom International PLC

Financial

Director

Vladimir Vasyuta is a skilled and qualified financial and business leader uniquely experienced in emerging

market sectors. Vladimir has significant experience in fields of business valuations and audit of large

Ukrainian enterprises with one of the „Big 4‟ companies. He has extensive experience in consulting

companies in agriculture, telecommunication, chemical, metallurgical and trading sectors

Company

Secretary

BohdanChomiak, is an experienced Canadian farmer with over 12 years experience in the Ukrainian

Agricultural sector as Director for USAID‟s Agriculture Division. In this role, Mr. Chomiak was very

influential in policy creation and implementation, and in advising and consulting both governments and

private companies in the acquisition of Ukrainian farmland

OrganizationLegal and ownership structure

11

EkoBio-Top,

Ukraine

Lapersa Enterprises Ltd,

Cyprus

S.I.V. Holdings Ltd,

Cyprus

100%

Revane Ltd.

BVI

OperatingFACTORIES (40)

OperatingFACTORY (1)

Ownership Structure

Alexander Trager,

private individual

Roman Mazhak,

private individual

24% 15%31% 30%+1

Note: All shareholders are founding shareholders except for Revane Ltd

This document is provided on the basis that it is kept

CONFIDENTIAL and its circulation and use are

RESTRICTED. It should not be copied or sent to any other

person/party without the express permission of S.I.V.

Holdings Ltd

This document has been prepared because S.I.V.

Holdings Ltd intends to raise funds to execute its business

plan, which may include bank loans, merging with a

strategic partner to form a joint company, or the sale of a

significant equity stake

This document includes the basic information, estimates

and forecasts, which have been prepared by S.I.V.

Holdings Ltd. This document is provided exclusively to

assist interested parties in making decisions on the

advisability of further study of the investment opportunity.

Any recipient of this material should conduct its own

analysis of the potential investment, and understand that

the receipt of this material from S.I.V. Holdings Ltd in no

way signifies confirmation that the Transaction is justified

S.I.V. Holdings Ltd will not be liable in any way for any

representations or warranties directly or indirectly

contained/arising from this material

In providing this document, S.I.V. Holdings Ltd. reserves

the right at any time to make changes or fully replace it.

Nothing in this document may and should be deemed to

be or interpreted as an obligation or promise regarding the

future

For any information relating to this opportunity, please,

contact:

Disclaimer and Contact details

12

BohdanChomiak

Corporate Secretary

S.I.V Holdings Ltd.

Tel: +380 67 4030258

Bchomiak@lapersa.net

13

Appendix 1Harvest liquid lumber, 2008