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Update from Managing Director

20 09 2023

I would like to take this opportunity to write to you to provide a personal update on the company positon now that internally things have settled aver the significant changes to the Board of Directors and as we start to
implement our plans on the strategic directon of the company.

Whilst it may seem from a distance that the company was stagnant this last year, I can assure you that this was not the case, and it was very different on the ground. Indeed, we have been very diligent in managing our funds and expectations towards having the capacity to build a productive and sustainable manufacturing business at Rotorua, New Zealand utlising our two patented technologies.

Much of the end of last year and the beginning of this year up unl mid-year, there was impingement on the Board as we managed the process of bringing on new Board leadership and the associated changes to the company and its strategic directon that this has inevitably caused. I am very happy to report that the new executive Board is functoning very well, and a good platform of positive and performance culture has been established under the leadership of Henry Cheng as Chairman.

We have now positioned the company to maximise its revenue by leveraging the intellectual property we hold through licensing agreements to our subsidiary companies. Notwithstanding, we expect to hold significant
ownership in each manufacturing plant and have structured and planned a great project at Rotorua. We have built our team to deliver good projects with ≥20% return for investors into the project. We have also
concurrently developed solid offtake agreements with reputable international companies as well as doing the same for resinous wood supply. Moreover, having a manufacturing site that is ideally situated in Rotorua and
on a lease (securable) adds layers of security that project financers seek and find appealing.

As we have continued to put these project markers in place, the forestry industry and our customers have shown continued and consistent positive engagement with us. The business plan is now well-developed and is
being implemented. We are well advanced with discussions with various project investors and aim to deliver a fully funded project within the next two quarters.

Whilst it may appear that we have been slow to rebuild and construct the chemical manufacturing plant, it is important to note that we made the decision to move from Apple Creek in Queensland to Rotorua last November. Importantly, in the view of the new Board, it was not prudent to utlise company funds trying to build a half plant for chemicals extraction only whereby integration would enable us to produce torrefied wood
pellets from the residues from the chemicals plant which is crucial in ensuring that we would have a sustainably profitable business once in production.

The New Zealand Government is phasing out existing coal boilers by 2037 and banning any new coal boilers by the end of the year and there is significant motvation in the market now towards securing replacement energy
sources. Torrefied wood pellets (also known as black pellets) are without doubt the best replacement option for existing coal users as torrefied pellets are virtually interchangeable with coal. Unlike traditional white wood
pellets, torrefied pellets are water resistant enabling the same storage and handling as coal, as well as having a very similar energy content to coal. From our discussions with process heat customers and electricity coal
driven providers, there has been an overwhelming positive response to us being the first movers in New Zealand for generatng torrefied pellets for an internal market of approximately 2 million tonne per annum.
This strategic approach changes the driver of our business from chemicals to pellets in the eyes of project investors and forest owners’ eyes. This is an important key differentator as there is a much higher acceptance
for investment into greenhouse reducing pellet manufacturing than there ever was for chemical manufacturing.

The chemicals market alone is poorly understood. By contrast, it is well understood and accepted that the combinaton of pellets with chemicals is a winner and maximises investment returns and profitability, and
opens us to significant supply volume increases when compared to just pellets or chemicals on their own. The revenue split is estmated at approximately 57% to chemicals and 43% pellets providing a nicely balanced
market for our producton.

Our vision and business plan for New Zealand involves rolling out multiple plants post our flagship project in Rotorua which is driven by the contractual demand from pellet consumers. We believe that this model is
replicable across other countries with pine resources and will establish our business model as an intellectual property and project provider will enable us to rapidly roll out this vision in the years ahead.

I wish to thank you all for your patence and encourage you to continue to follow and support our vision for the company. I look forward to making many more positive announcements on the ASX in the months ahead. As
part of our Board’s desire to remain connected to our shareholders I will be endeavouring to roadshow the company every quarter and expect to be in Australia on the east coast in October. I hope to see you personally
at one of the roadshows near you.


Latest News

Shareholder Update from Managing Director
$1M Placement to Accelerate Kawerau Biomass Manufacturing Project
23 05 2024
Funds raised under the Placement will be applied to accelerate the torrefied “black” pellets and pine chemical manufacturing facility project in Kawerau, New Zealand.
Latest Interviews and Podcasts
13 05 2024
Ray Mountfort has recently participated in a number of interviews. Catch up on them all here:
Toi EDA forum in Kawerau
06 05 2024
Last week Ray attended a forum held by The Economic Development Agency for the Eastern Kawerau.
Foresta Signs Long-Term Offtake Purchase Contract with AV Pound & Co Limited
29 04 2024
in the relation the supply of 2,000 tonnes per annum of natural wood rosin
Foresta Signs 10 Year Supply Agreement with PF Olsen
29 04 2024
This contractual arrangement represents the supply of 150,000 tonnes per annum of logs, stumps and slash
Planned plant to produce low emissions fuel to replace coal a step closer with agreement to lease Kawerau site
08 04 2024
Agreement to lease signed for Kawerau site
Foresta Signs a Harvesting Contract with Silvertree Biomass Solutions.
25 03 2024
We are thrilled to share that Foresta has signed a significant ten-year Harvesting Contract with Silvertree Biomass Solutions Limited (“SILVERTREE”).
Pine Gold Rush: From Rosin and Terpenes to Invaluable Alternatives, Transforming Industries and Phasing Out Petroleum Dependence
25 03 2024
Pine trees, cultivated globally, are a versatile resource for various products. Beyond providing timber and cellulose for paper production, pine trees yield oleoresin, from which an array of chemical products is extracted.
Forestry Research Updates
15 01 2024
Our forestry team has been hard at work in the heart of the forests
Foresta NZ signs supply contract with Tailored Energy Resources Limited
20 12 2023
Foresta NZ and TER have now signed a binding ten (10) year Supply Agreement to supply up to 65,000 tonnes of torrefied wood pellets per annum
Navigating New Zealand’s Transition from Coal-Fired Boilers to Sustainable Alternatives
21 11 2023
Optimising Forest Ownership: A Comprehensive Approach to Progressive Harvesting and Slash Utilisation
21 11 2023
In the realm of responsible forest management, maximising value for forest owners is not just about harvesting timber but entails a holistic approach.
Placement To Raise $2.333M
06 10 2023
Foresta is pleased to announce that it has received strong interest and firm commitments for a placement of new fully paid ordinary shares
Office Launch In Papamoa
27 09 2023
Foresta celebrated the opening of its company office in Papamoa, New Zealand.
Update from Managing Director
20 09 2023
Shareholder Update from Managing Director
Overview of Rotorua flagship project
29 08 2023
Foresta is pleased to provide a brief overview of our flagship project centred on the construction and commissioning
Foresta signs Term Sheet with Tailored Energy Resources
11 08 2023
Foresta NZ signs Term Sheet with Tailored Energy Resources Foresta Group Holdings Limited
New Technology Patent Filed
28 07 2023
Leaf is pleased to announce the filing of a new technology patent with IP Australia
Quarter Update Ending 30th June Update
18 06 2023
Quarter Update Ending 30th June Update
Appointment of Chairman
25 06 2023
We are pleased to announce that the Board has appointed Mr Pai-Heng (Henry) Cheng as Chairman of Foresta.
Foresta Signs Term Sheet with Ground Base Solutions
13 06 2023
Foresta is pleased to announce that it has signed a Term Sheet with Ground Base Solutions Ltd
01 08 2019
Watch the shareholder webinar recorded on Wednesday November 2nd 2022.