Choice Forestry PDS 2012 - WA Blue Gum Project

Dear Prospective GrowerI invite you to participate in the Choice Forestry Project2012.The Project will be developed on land in the south-westof Western Australia, which the Project’s IndependentForestry Expert, Mr Don Spriggins, considers is verysuitable for the Establishment of Blue Gum plantations.The Responsible Entity has been successful inprocuring an agreement with the very experienced andreputable company W.A. Chip & Pulp Co. Pty Ltd toHarvest and purchase the wood produced by theProject. W.A. Chip & Pulp Co. is owned by twoextremely large Japanese companies, MarubeniCorporation and Nippon Paper Industries Co. TheMarubeni Corporation Group owns and manages treeplantations in Western Australia on a large scale and,in the opinion of the Project Manager, is an industryleader in plantation establishment and management,log Harvesting and woodchipping. The Marubeni Groupis one of the large Japanese Trading Houses. NipponPaper is among the largest paper manufacturers inJapan, which itself is the second or third largest papermaking country in the world.Every business, including agriculture, involves adegree of risk. The major risks identified by theDirectors have been set out in this Combined ProductDisclosure Statement and Financial Services Guide(“PDS”). While the Directors have taken steps toreduce these risks or minimise the adverse impact ofsuch risks in the structuring of the Project, by the termsof the contracts to be entered into and by utilising andconsulting leaders in the forestry sector, this Projectshould be considered long term and speculative.This PDS is divided into three parts. Part A of this PDSis a summary of the key features, rights and obligationsof subscribing to the Project. Having regard to thecomplexity of the choice to invest and volume ofrelevant information, Part A attempts to provide a clear,concise and effective disclosure of the main features,rights and obligations. However, current marketexpectations of prospective Subscribers requiresignificant detailed information to be provided to enablepeople to assess their participation in such products.Part B represents this extensive detailed information.Part C of this PDS is a Financial Services Guide whichthe Responsible Entity is required to provide toprospective Subscribers. All parts should be read intheir entirety.Please give the Project your most carefulconsideration.Yours sincerelyA. H. MayChairmanW.A. Blue Gum LimitedThe Responsible Entity has paid careful regard toASIC’s Regulatory Guides and to the stated objectivesof the current product disclosure regime.