MIRA INFORM REPORT

Report Date :

24.05.2007

IDENTIFICATION DETAILS

Name :	PACIFIC FOREST PRODUCTS LIMITED

Registered Office :	Level 9, Bridgecorp House, 36 Kitchener Street, Auckland

Country :	New Zealand

Date of Incorporation :	9 April 2002

Legal Form :	Limited Liability Company

Line of Business :	Trade logs and lumber.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Clear

REGISTERED NAME:	PACIFIC FOREST PRODUCTS LIMITED

REGISTERED NUMBER:	1201781

OPERATING ADDRESS:	Level 9, Bridgecorp House, 36 Kitchener Street, AUCKLAND

REGISTERED ADDRESS:	Level 9, Bridgecorp House, 36 Kitchener Street, AUCKLAND

OTHER TRADING NAMES:	Nil

TELEPHONE NUMBER:	(09) 309 0868

FAX NUMBER:	(09) 309 0866

WEB SITE ADDRESS:	www.pfpltd.co.nz

DATE OF INCORPORATION:	9 April 2002 – Incorporated in New Zealand

CHANGE OF NAME:	Nil

PAID CAPITAL:	$10,000 in $1 shares.

DIRECTORS:	GREGOR JOHN BARCLAY 26A Wiles Avenue, Remuera, AUCKLAND GREGORY KEVIN MOLLOY 94 Tauranga Direct Road, Rd2, ROTORUA EDDIE SHIN 10 Estuary Views, Howick, AUCKLAND KEITH ROLAND SMITH 36 Albert Road, Devonport, AUCKLAND

SHAREHOLDERS:	Refer HISTORY

SECRETARY:	Not shown

AUDITORS:	Not shown

REGISTERED CHARGES:	Refer REGISTERED CHARGES

PAYMENTS:	In accordance with terms

LEGAL ACTIONS / DEFAULTS:	Nil

EMPLOYEES:	15-16

ACTIVITIES

Pacific Forest Products (PFP) was incorporated in April 2002 to trade logs and lumber, and also to provide marketing services into the Pacific Asia Markets and Middle Eastern Markets.

Pacific Forest Products is an employee owned company and has a small highly experienced team of 12 staff, with established offices in Auckland, Tauranga and Rotorua.

Export volumes are currently running at around 1.6 million m3 on an annualized basis, with a stable supply group that includes a number of significant forest owners and management companies.

The business has grown rapidly, and in recognition of this and in PFP significantly growing the market for radiata pine products, the company was awarded the NZ Trade and Enterprise " 2006 Wood Buildings and Interiors Exporter of the Year".

Pacific Forest Products currently exports from the North Island Ports of:

I. Tauranga (Mt Maunganui)

II. Marsden Point (Whangarei)

III. Gisborne

IV. Napier

From time to time the company does export from other ports in both the North and the South Islands.

Pacific Forest Products currently ships into the following markets:

I. China

II. South Korea

III. Japan

IV. South East Asia (mainly Malaysia)

V. Taiwan

VI. Vietnam

VII. India and the Middle East

Pacific Forest Products deals primarily in the species of Pinus Radiata and Douglas Fir, and also export small volumes of speciality use species.

The company also cuts a large range of market specific lengths and grades, the main grades being:

I. Pruned Logs

II. A Grade

III. K Grade

IV. KI Grade

V. Pulp Grade

Production by grade is flexible and is driven by demand and price criteria.

Operations are conducted from premises situated at the heading address.

HISTORY

The subject was incorporated in New Zealand on 9 April 2002 as Pacific Forest Products Limited.

Registered Number: 1201781.

Paid capital $10,000 in 10,000 shares paid to $1 each.

Shares are held by:

CLAYMORE TRUSTEES LIMITED }

AND } JOINTLY 3,334

KEITH ROLAND SMITH }

GREGORY KEVIN MOLLOY }

AND } JOINTLY 3,333

CLAYMORE TRUSTEES LIMITED }

EDDIE SHIN }

AND } JOINTLY 3,333

CLAYMORE TRUSTEES LIMITED }

The above information is in accordance with the last Annual Return lodged with the New Zealand Companies Office on 30 November 2006 and compiled at report date.

Operations of the company were commenced 6 years ago.

DIRECTORS

GREGOR JOHN BARCLAY was appointed to the board of directors on 9 April 2002.

GREGORY KEVIN MOLLOY was appointed to the board of directors on 19 November 2003.

EDDIE SHIN was appointed to the board of directors on 5 December 2003.

KEITH ROLAND SMITH was appointed to the board of directors on 5 December 2003.

BANK

ANZ NATIONAL BANK LIMITED

AUCKLAND

The bank holds a Registered Charge over company assets. Please refer to the REGISTERED CHARGE section for details.

TRADING

Current trade references have been declined.

Following are details of a trade survey undertaken in June 2006:

1. This supplier has advised that purchases for May 2006 totaled $200,000. Payment is being met within the terms of the account. The account was opened on 31 May 2002 and there are no problems.

2. This supplier could not be contacted as at report date. Messages left have remained unanswered.

FINANCE

The subject has not lodged financial accounts with the New Zealand Companies Office.

REGISTERED CHARGES

The following Registered Charge has been recorded over the subject’s assets:

On 14 September 2004, Charge to ANZ National Bank Limited, charging all present and after acquired personal property.

The ‘Personal Property Securities Act 1999’ (PPSA) came into effect on 1 May 2002.

The PPSA has brought together registered charges that were historically created under several different Acts, e.g. debentures registered pursuant to the Companies Act and charges over specific assets registered pursuant to the Chattels Transfer Act 1924.

Charges registered are called Security Interests.

The PPSA is also used by suppliers to register a charge over goods which have been supplied to the subject in respect of which the supplier terms of trade may previously have contained a “reservation of title” clause.

Charges over land are not registered under the PPSA and there may be charges over land in the name of the subject.

There are also 5 Security Interests registered over goods – other and/or goods – motor vehicles.

RECORDED ACTIONS

Nothing of an adverse nature has been recorded against the subject.

INVESTIGATION

An interview was conducted with the Financial Controller in May 2007. At this time she declined all information in relation to the subject’s activities, trading and financial position, stating that if the name of the enquirer is made known consideration would be given to providing the relevant details.

A letter and questionnaire has been sent and any additional information that is received will be sent to you as an addendum to this report.

An interview was conducted with the Financial Controller in June 2006. At that time she confirmed operational and trading details, however declined all financial information as a matter of company policy.

Enquiries made with trade sources failed to trace any additional information in relation to the subject.

A Land Titles Search has not been undertaken to ascertain what land, if any, stands in the subject’s name. This can be undertaken on request.

CONCLUSION

The subject was incorporated in New Zealand on 9 April 2002 as Pacific Forest Products Limited.

Paid capital $10,000 in 10,000 shares paid to $1 each.

The subject operates as a log exporter.

Previous suppliers contacted have reported large commitments being met in accordance with terms and is a no problem account, having been held for some four years.

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these condition