Emission Offsets Information Seminar Present Why? World Bank - PDF document

Emission Offsets Information Seminar Present

Why? World Bank – Estimated Global Carbon Market � 2005 = $11 Billion USD � 2006 = $30 Billion USD � 2007 = $64 Billion USD Alberta Emissions Reduction Regulation � Currently set at $15.00 per Tonne CO 2 e � Cap will increase over time June 1, 2009 – European Climate Exchange (ECX) 1 Tonne CO 2 e ≥ $23.42 CDN CanAg - CONFIDENTIAL - 2009

ECX ECX MONTHLY REPORT - April 2009 Over half a billion tonnes traded on ECX during April, the 2nd highest month on record, and up 169% year on year. CanAg - CONFIDENTIAL - 2009

Emissions - Canada Number of CO2 (tonnes Total (tonnes 12% Province Facilities CO2e) CO2e) Reduction Alberta 101 104,012,651 109,323,316 13,118,798 British Columbia 37 11,890,022 13,901,591 1,668,191 Manitoba 7 2,299,847 2,941,071 352,929 New Brunswick 12 12,518,016 12,610,793 1,513,295 Newfoundland and 7 4,935,472 5,216,055 625,927 Northwest Territories 2 337,569 358,973 43,077 Nova Scotia 9 11,400,077 12,014,651 1,441,758 Nunavut 0 0 0 0 Ontario 85 72,231,399 78,399,997 9,408,000 Prince Edward Island 1 104,300 104,331 12,520 Quebec 53 19,070,942 22,101,182 2,652,142 Saskatchewan 22 21,938,338 22,870,183 2,744,422 Yukon 0 0 0 0 Grand Total 336 260,738,633 279,842,143 33,581,057 Source: Environment Canada - GHG Division, 2005 CanAg - CONFIDENTIAL - 2009

HOW? CURRENT PROTOCOLS 1.Acid Gas Injection 2.Aerobic Composting 3.Afforestation 4.Anaerobic Wastewater Treatment 5.Beef Feeding (Edible Oils) 6.Beef Feeding (Reducing Days-On-Feed) 7.Beef Lifecycle 8.Biofuel Emission Emission 9.Biogas 10.Biomass Offsets Limited Offsets Limited 11.Energy Efficiency 12.Enhanced Oil Recovery Partnership Partnership 13. Landfill Bioreactor 14. Landfill Gas 15. Modal Freight Shift 16. Non-Incineration of Thermal Waste 17. Pork 18. Road Rehabilitiation 19. Run-of-the-River Electricty System 20. Solar Electricity Systems 21. Tillage 22. Waste Heat Recovery 23. Wind-Powered Electricity Systems CanAg - CONFIDENTIAL - 2009

Definition Private Income Trust An income trust is an investment trust that holds income- producing assets. The income is passed on to the investors, called "unit-holders", through monthly or quarterly distributions. A Public income trust’s shares or "trust units" are traded on securities exchanges just like stocks. A Private income trust unit is NOT traded on securities exchanges and is NOT treated like a corporation for Tax purposes. CanAg - CONFIDENTIAL - 2009

CanAg Goals � Focused on Agriculture based Investment Opportunities � Designed to attract Agriculture Producer and Related Corporate Participation � Open to All Investors � Provides Tax Advantages FORMED in 2009 to Investors by � Carbon fund is 1 st of many projects CanAg - CONFIDENTIAL - 2009

CanAg - CONFIDENTIAL - 2009

Projects Under Consideration EXISTING PUBLIC BIO ENERGY � Rail & Logistics � Global Carbon Fund � Crop Inputs � Biofuel Marketing & Distribution � Elevation and Distribution AG REAL ESTATE GREENFIELD PROJECTS � Farm Land � Canola Crusher � Marginal Land � Renewable Diesel Refinery � Ag to Commercial Potential � Wind Energy � Algae Production EXISTING PRIVATE � North West Ethanol � Highmark Renewables � Flour Mill � Malt Production � Elevation and Distribution CanAg - CONFIDENTIAL - 2009

CanAg Investment Timeline Immediate Opportunities � Emission Offsets Limited Partnership Mid-Term Opportunities – 12 to 24 months � Highmark Renewables � North West BioEnergy Long-Term Opportunities - More than 24 months � Other Potential Projects CanAg - CONFIDENTIAL - 2009

Investment Options Investment $ Emission Emission Investment $ Offsets LP Offsets LP CanAg - CONFIDENTIAL - 2009

Trust - Benefits � Investment in the Trust can be made from existing RRSP, RRIF, RESP, TFSA and DPSP accounts � Distributions can be paid directly to these accounts without tax deductions (until withdrawn from the account) � Trust Units will have mandatory redemption rights for unit holders which will provide an exit strategy – the Limited Partnership may not have similar liquidity entitlements. � Investment Diversification – Mid and Long Term diversity in Agricultural projects CanAg - CONFIDENTIAL - 2009

Summary � Carbon Trading is a significant emerging market opportunity (Growing ~ 100%/Year) � CanAg Trust and Failsafe Canada are forming Emission Offsets LP � Interested Investors can participate either through CanAg Trust or directly into EOLP � The Trust may provide investment advantages to participants: � Tax Savings � Exit Strategy � Portfolio Diversification CanAg - CONFIDENTIAL - 2009