Deal #2375 Version #93323

NGR, through the Malonda Foundation, has acquired a permit to make use of the 5.709 ha parcel, encompassing the parcel of Malulu. NGR has also been able to obtain a total area of 4.374 ha, shared between the zones of Malica (3.313 ha) and Ntiuile (1.061 ha). NGR has already planted 2.400 ha of pine and eucalyptus monocultures in the Malulu Block. But the company hasn’t been able to plant any area in Malica as they maintain less than favorable relationships with the local communities, especially in the northernmost are of Ngongote. 5,242 ha is eligible for reforestation under the CDM. Part of 40,360ha JV with Malonda Foundation. However only 20,428 ha are suitable for plantations. The company will hold these land use rights and search for an additional 16,808 ha as approved by the government. Other sources indicated that Niassa Reforestation Project (NRP), is a 5,242 ha reforestation project being implemented on three discrete parcels of degraded land in the Niassa Province in the north ofMozambique.

Pine and Eucalyptus Species An ambitious 5,242 ha reforestation endeavor .Plantation non-invasive pine and eucalyptus species.Of this total area approximately 5,242 ha is eligible for reforestation under the CDM.

Contribution of the Malonda Foundation into the JV. All land in Mozambique belongs to the state. The area is leased from the government under themDireitos de Uso e Aproveitamento de Terra (DUAT) system. It is a land and benefit use approval from the Ministry of Agriculture.

NGRADO will facilitate market access for 500 smallholders and small-medium enterprises (“SMEs”) in the 2011/2012 season up to 1,600+ by the sixth season. In addition to guaranteeing a market at fair prices, NGRADO will provide extension services such as access to inputs, mechanization, agronomic training, and crop financing.