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SCHEDULE 1 INDEPENDENT STATE OF PAPUA NEW GUINEA. Forestry Act 1991. I Act, Sec. 90B(8). Form 242 Reg. FOREST CLEARING AUTHORITY TO CARRY OUT A LARGE SCALE CONVERSION OF FOREST TO AGRICULTURE OR OTHER LAND USE DEVELOPMENT. Forest Clearing Authority No: FCA 10-05. Agriculture or other land use Development Project; WALSA INTEGRATED AGRICULTURE PROJECT, VANIMO GREEN DISTRICT, SANDAUN PROVINCE. Pursuant to Section 90B(8) of the Forestry Act 1991, and all other powers it enabling, the Board hereby grants a Forest Clearing Authority to PACIFIC GREEN FOREST LIMITED [Fl 02296] ("the Holder") This Authority authorises the holder to carry out a large scale forest clearance for commercial agriculture or other land use development within 34,400 hectares of land area described, and outlined in red on the map in Schedule 1 ("the Project Area") for the term specified in Schedule 2 subject to the Act and to the following terms and conditions; (a) the holder shall, within 21 days, lodge a performance bond' in accordance with Section 98 of the Forestry Act 1991 for the amount specified in Schedule 3. (b) the holder shall comply with the terms and conditions specified in the Schedules herein. (c) the holder shall carry out the agriculture or other land use project in accordance with the approved land-use development plan and the approved implementation schedule contained in the holder's application for this Authority and as agreed to and as may be varied by the Board from time to time.
(d) the holder shall comply with the conditions of any Permit, License or other Authority relating to the project and with the provisions of all Environmental and other relevant laws of Papua New Guinea. (e) the holder shall comply with such other conditions as are specified in Schedule 4 hereto. Dated this 28th day of September 2015. For the Board. If the Performance Bond is not lodged within 21 days and no application under Section 98(6) of the Forestry Act has been made within 21 days to the Board seeking an extension of time within which to lodge the Performance Bond then this Forest Clearance Authority is deemed void under Section 98(5) of the Act and thereby cancelled. PAPUA NEW GUINEA FOREST AUTHORITY NATIONAL FOREST SERVICE HEAD OFFICE — FRANGIPANI STREET, HOHOLA. P.O_ BOX 5055, BOROKO. TELEPHONE: (675) 327 7800 NATIONAL CAPITAL DISTRICT, FACSIM ILE: (675) 325 4433 PAPUA NEW GUINEA. URL www.forestry.gov.pg Date: 29th September 2015 File: 157-10-05
Ref: JTM: jtm The Managing Director Pacific Green Forest Limited P 0 Box 1118 WAIGANI National Capital District Attention: D.Yung / A.Lim Dear Sir, SUBJECT: FORMAL ISSUANCE OF WALSA INTEGRATED AGRICULTURE PROJECT (FCA 10-05) — PACIFIC GREEN FOREST LIMITED. This is to formally advice that your entity has been duly issued with FCA 10-05 (attached) by the National Forest Board on the 28th of September 2015. As specified in Schedule 3 of FCA 10-05, you have a duration of 21 days to formally lodge in your required Performance Bond to the amount of K1.2 million (One Won Two hundred thousand Kina). In line with the above, you are required to have lodged in favour of the PNG Forest Authority the mandatory Bond by the 27th of October 2015. We look forward to a pleasant working relationship between our two Organisations. Yours faithfully, GOODWILL AMOS ACTING MANAGING DIRECTOR Cc: The Chairman — Midowa Limited Cc: Area Manager — Momase Cc: The PFO — Sandaun