1. 2012 Investment project of wasteless timber processing production in Vokhma municipal district

2. Brief information about the project 2 Project target – the construction of the enterprise of the closed production cycle: timber harvesting – sawmilling – processing of wood waste. Wood harvesting is planned to be set in Vokhma and Oktyabrsky municipal districts of the Kostroma region. Planning period - 8 years. Start of production is scheduled for the first year of project realization. Production plan of the investment project includes the following products: coniferous edging board; boards; birch edging board; aspen edging board; deciduous sawlog; firewood; fuel granules. Project value – 403 941,75 thousand roubles (excluding VAT) Financial sources: 100% of credit resources

3. Location 3 For project realization there is an investment site with objects of real estate and some equipment

4. Annual logging volume for project realization – 180 000 m 3 Personnel – 150 workers Average salary – from 26 thousand roubles Payback period – 3 years Kostroma region administration is ready to provide the most favoured nation treatment for the investment project in part of exemption from payment of the following taxes payable to the regional budget during the payback period: - exemption from payment of property tax; - reduction of the rate of profit tax from 18% to 13,5%. Brief information about the project Project efficiency indicators 4

5. Indicator With privileges, thousand roubles Without privileges, thousand roubles Revenue (excluding VAT)3 603 397,72 Paid for suppliers and employees1 461 831,40 EBITDA2 141 566,32 Depreciation305 484,72 Paid taxes464 722,07484 996,85 Interests on loans178 854,17 Net profit1 192 505,361 172 230,58 NPV 283 717,78 266 798,79 IRR, % 26,1525,14 Project economic efficiency Project efficiency indicators 5

6. Indicator With privileges, thousand roubles Without privileges, thousand roubles Federal budget, including456 449,63456 153,16 VAT 426 847,4 Profit tax 29 602,2329 305,76 Regional budget, including322 251,94342 823,2 Profit tax 258 003, 96263 751,88 PIT 41 526,32 Property tax 22 721,6637 545 Municipal budget, including18 734,69 PIT 17 796,99 Land tax 937,7 Social payments153 456,5 Total 950 892,76971 167,55 Project budgetary efficiency Project efficiency indicators 6