Ubuntu Ltd Rice Project Bela Vista 5 000

Ubuntu Ltd Rice Project Bela Vista - 5’ 000 hectares Mozambique Filipe Gago & C. van der Linden 15 July 2008 1

1 - Executive summary 2

1 - Executive Summary PROJECT: The establishment of a Joint Venture between LAP (Suisse) SA and the local company Ubuntu Lda able to start to cultivate 5’ 000 hectares in order to produce and distribute 40’ 000 Tons of Chinese Hybrid Rice over the next 60 months, covering a substantial part of the needs of the Mozambique market. Second phase – purchase and processing of rice from the local agricultures Third phase – extension of rice cultivation to 15’ 000 hectares. TIME FRAMEWORK: A Preliminary Program will be submitted four (4) weeks after signing the final Contract. PRICE: The study has been based on: ACTUAL market price : 5% broken usd 1’ 100. 00 / ton 25% broken usd 1’ 000. 00 / ton including : Import duties – 7. 5% + Other fees – 6% SALES price to distributors centers usd 40. 00 / 50 kg bag FINANCIAL INDICATORS : Total Investment I & II : 33 MUSD IRR Project: > 40 % Payback Period: less than 5 years from date of commercial launching 3

2 – Project Overview 4

2 – Project Overview • Ubuntu Ltd owns a Land Concession of 15’ 000 hectares in the prime area of Bela Vista Mozambique, part of the old colonial rice farms, and wishes to reactivate them and create new livelihoods, food security and prosperity in the rural community of Bela Vista - Mozambique. 5

2 – Project Overview • Libya Africa Portfolio (LAP) wishes to contribute to the development of African countries by participating technically and/or financing projects identified as essential. • Both parties wish to develop and consolidate the fraternal relations between the Great Jamahiriya Arab Libyan Popular and Socialist and the Republic of Mozambique. • A Joint Venture between both parties will allow massive rice production in Mozambique covering initially 10’ 000 hectares, 10 to 25% of the local population needs, in a short period of time estimated up to twenty four months. 6

2 – Project Overview Project Impact The global project will cover 100% of the Mozambique population rice needs and have the following impacts: – – – – Reduction in need for food relief and imported goods Reduction in poverty Reduction in unemployment. Reduction in malnutrition Creating a mechanism for food export. Impulse to economic activity Positive impact on security / stability Social upliftment. . 7

4 - World Rice Market Basics 8

4 - World Rice Market Basics • About 90% of the World’s Rice is Produced in Asia • Over ½ in a band from Pakistan, South and East through the Philippines • Highly dependent on the timing of the Asian monsoon • Most is consumed where it is produced 9

4 - World Rice Market Basics “The Global Rice Export Market is Highly Concentrated” 10

4 - World Rice Market Basics “Rice Import Market Less Concentrated, but Segmented” 11

6 - Milling Rice Processing 12

6 - Milling Rice Processing • • Remove the husk and the bran layers Produce whole white rice kernels that are : sufficiently milled, free of impurities and minimum number of broken kernels 13

6 - Milling Rice Processing Paddy Intake: – – Quality input = quality output Garbage in = garbage out! Paddy intake chute Paddy Cleaning: After harvest, foreign matter can be as high as 5 -10% Rice pre-cleaner 14

6 - Milling Rice Processing Hulling the Paddy: – – Husks account for 20% of paddy weight Rubber roller huskers are widely used 15

6 - Milling Rice Processing Paddy Separation: – – Removal of paddy and husk from brown rice Sieve or gravity separator 16

6 - Milling Rice Processing De-stoning: – – Paddy will contain small stones and debris Debris must be removed before polishing Removed debris 17

6 - Milling Rice Processing Polishing: – – Removes bran layer to produce white rice. Amount of bran removed (usually 8 -12%) is called Milling Degree. 18

6 - Milling Rice Processing Sifting or Separation of White Rice: – – After polishing, white rice contains: • Head rice • Large brokens • Small brokens The white rice is separated using a Sifter Rotary Seiver 19

6 - Milling Rice Processing Grading or Length Separation: • After polishing, white rice contains – Head rice (75% of whole kernel is present) – Large brokens – Small brokens Rotary sieves 20

6 - Milling Rice Processing Rice Mixing: – An efficient rice mill will produce: • 50% head rice (whole kernels) • 5 -15% large broken and • 5 -15% small broken kernels – Depending on the country’s standards, rice grades in the market will contain from 5 -25% broken kernels. Variable speed motors allow the mill operator to mix the appropriate amount of whole kernels with large and small brokens. 21

6 - Milling Rice Processing Mist Polishing: – Adds luster, or polished appearance. Mist Polisher (Water) 22

6 - Milling Rice Processing Rice Weighting: – Rice is normally sold in 50 kg sacks which must be accurately weighed and labeled. scales Bag filler and weighing 23

6 - Milling Rice Processing Rice Physical characteristic Percentage Paddy 100 Husk 20 Brown rice 80 Meal Pericarp and testa (5 -6%) Aluerone (1%) Embryo (3%) 8 -10 White rice 70 -72 24

6 - Milling Rice Processing Rice Chemical Characteristics: Brown rice White rice Bran Moisture content (%) 13 -14 Starch (%) 68 -70 80 9 Amylose 28 -30 33 6 6 -8 6 -7 14 3 1 20 2 -3 0. 5 25 1 -1. 5 0. 5 9 -10 Protein (%) Fat Fiber Crude ash 25

6 - Rice Milling Processing Rice Bran Oil: • Rice bran contains three different kinds of natural antioxidants • Rice bran oil is widely used in hair conditioners, skincare and sunscreen products • Rice Oil is mostly used for mixing with other types of Kitchen oil – Mozambique offers ample opportunities for this oil consumption 26