STRICTLY PRIVATE & CONFIDENTIAL

next generation carbon sinknext generation carbon sink

Investor PresentationRights IssueRights Issue

5 June 2008

A subsidiary of C @ Limited ACN 110 439 686 ASX:CEO

Important InformationImportant Information

The information contained in this document and otherwise disclosed to you by C @ Limited (ABN 99 110 439 686), (“C@” or the “Company”) or PatersonsSecurities Limited (ABN 69 008 896 311) prior to a public announcement must be kept strictly confidential. This document is intended for selected investors inaccordance with Section 708 of the Corporations Act 2001 (Cth). It does not constitute an offer to subscribe for or purchase securities in C @ Limited, or aaccordance with Section 708 of the Corporations Act 2001 (Cth). It does not constitute an offer to subscribe for or purchase securities in C @ Limited, or arecommendation of such securities. It is not intended to be relied upon as advice to investors or potential investors and does not take into account theinvestment objectives, financial situation or needs of any particular investor. As referred to elsewhere in this document, C @ Limited proposes to undertake a prorata renounceable rights issue of securities, and intends to lodge a prospectus in relation to this issue with the Australian Securities and Investments Commissionon or about 6 June 2008. A copy of the prospectus may be obtained by contacting the company after this date, or by accessing the company's website(www.cnow.com.au). Any person wishing to subscribe for securities should consider the prospectus in its entirety before deciding whether to apply, and will needto complete the application form that will be in, or accompany, the prospectus.In accordance with Section 1043A of the Corporations Act, the information may have a material effect on the price or value of C @ securities and may thereforeconstitute “insider information” for the purposes of the Corporations Act.As an insider you must not (whether as principal or agent):– Apply for, acquire or dispose of C @ Limited securities, or enter into an agreement to apply for, acquire or dispose of any such securities; or– Procure another person to apply for, acquire or dispose of, or to enter into an agreement to apply for acquire or dispose of, any such securities.Once in possession of this information you will be subject to the insider trading restrictions imposed by the Corporations Act and will, as noted above, beprohibited from trading in C @ Limited securities and / or communicating the information to any other person who would be likely to subscribe for, purchase orprohibited from trading in C @ Limited securities and / or communicating the information to any other person who would be likely to subscribe for, purchase orsell securities, or procure a third person to do the same until such date when this information has been made ”public” in terms of the requirements of theCorporations Act. You must seek your own legal advice on your responsibilities under the Corporations Act. Patersons Securities Limited and C @ Limited do notpurport to represent the above comments as either advice or as a comprehensive description of these complex provisions.Disclaimer: This document contains “forward looking statements” including estimates of future revenues, capital and funding requirements. Such forward lookingstatements are made in good faith and are believed to have a reasonable basis. However, such forward looking statements are subject to risks, uncertainties andother factors which could cause the actual results to differ materially from the future results expressed projected or implied by the forward looking statementsother factors which could cause the actual results to differ materially from the future results expressed, projected or implied by the forward looking statements.The information contained in this document has not been independently verified. The information set out in this Presentation may be subject to updating,revision, verification and amendment and such information may change materially. Neither C @ nor Patersons Securities Limited is under any obligation to updateor keep current the information contained in this Presentation and any opinion expressed in this Presentation is subject to change without notice. Although allreasonable care has been taken to ensure that the information given in this Presentation is accurate, no representation or warranty, express or implied, is made asto, and no reliance should be placed on, the accuracy or completeness of the information or opinions contained in this Presentation. To the maximum extentpermitted by law, none of C @, Patersons Securities Limited nor any of its respective affiliates, advisers or representatives shall have any liability whatsoever (inp y , , y p , p y y (negligence or otherwise) for any loss whatsoever arising from any use of this Presentation or its contents, or otherwise arising in connection with this document..This document is intended to provide background information only and does not purport to make any recommendation upon which you may reasonably relywithout taking further and more specific advice. Neither C @ Limited nor Patersons Securities Limited are under obligation to update any information contained inthis presentation. Potential investors are advised to seek appropriate independent advice, if necessary, to determine the suitability of this investment.

The Directors of Patersons Securities Limited advise that they and persons associated with them may have an interest in the above securities and that they mayearn brokerage commissions fees and other benefits and advantages whether pecuniary or not and whether direct or indirect in connection with the making of

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earn brokerage, commissions, fees and other benefits and advantages, whether pecuniary or not and whether direct or indirect, in connection with the making ofa recommendation or a dealing by a client in these securities, and which may reasonably be expected to be capable of having an influence in the making of anyrecommendation, and that some or all of our Representatives may be remunerated wholly or partly by way of commission. Patersons Securities Limited will beentitled to earn a fee as a result of the capital raising.

The project in a nutshell

CARBON DYNAMICS has designed a new way of capturing

The project in a nutshell

carbon through olive and eucalyptus tree plantations. Thelarge scale permanent sequestration of carbon is underpinnedby a viable and permanent agribusiness which also makes bulky p golive oil for human consumption and biomass for energy.

Large scale plantations will be established using low costLarge scale plantations will be established using low cost,unirrigated land in rural Australia. There is no practical limit onhow big the collective size of plantations can be.

The project lends itself to innovative funding structuresincluding forward sale of carbon credits, debt and equity.

This project is unique and provides an opportunity to capitaliseon the convergence of emerging issues in climate change,global food security and water scarcity

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global food security and water scarcity.

HighlightsHighlights

• Unique next generation carbon sink tree plantation project

• Convergence of key drivers underpinning the project:

• Economic cost of CO2

W d f d h• Water and food shortages

• Requirement for climate change projects to be economically sustainable

• Several major international investment banks currently reviewing models and projectSeveral major international investment banks currently reviewing models and project plans ‐ have expressed keen interest in participating

• Massive international growing markets for carbon and olive oil

• Low cost commodity producer of carbon credits and olive oil

• Combining traditional European methods with leading Australian farming technology

• Science verified, management team identified, first 9000Ha land parcel indentified, now just needs seed funding to option land and employ staff

• Target first project size 50 000Ha ($300M est cost) with min threshold 10 000Ha

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• Target first project size 50,000Ha ($300M est cost) with min threshold 10,000Ha

Key drivers have convergedy g

Climate Change

Water ScarcityChange Scarcity

Economic Sustainability 

Global FoodShortage y

of SolutionsShortage

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Business modelBusiness model

Primary outputs Secondary outputsPlantations

Carbon sequestration

P ll ti d bi f d t k

Carbon credits

Olives

Pelletized biomass feedstock

Carbon credits for renewableenergy generation

Biomass from• Prunings• Olive pomace• Seedcake waste

Olive oil

Pelletized biomass from pomace and seedcake

6Introduction to CARBON DYNAMICS

More about olive trees the main speciesMore about olive trees, the main species

High value crop (fruit / olive oil)

Exceptional longevity – well over 100 years

T l t f diti i lTolerant of conditions in rural areas

Produce olive fruit / oil, biomass from prunings and olive fruit wastefruit waste

Traditional European dry land method being deployed but using latest Australian technology for high density, g gy f g y,mechanically harvested trees

Not previously considered for carbon sequestration but strikes a balance between level of carbon sequestration and cash flow from primary produce

Ri i tifi d i i

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Rigorous scientific underpinning Ancient olive tree

CARBON DYNAMICS next generation carbon sink

The CARBON DYNAMICS approach to olive farmingThe CARBON DYNAMICS approach to olive farming

LOW COST 

NATURAL SYSTEMSNATURAL SYSTEMS

NO WATER IRRIGATION

FOCUS ON CARBON RATHER THAN OLIVE YIELD

VERY LARGE SCALE

8CARBON DYNAMICS next generation carbon sink

Changing mix of outputsChanging mix of outputs

Carbon credits start accumulating immediately

Biomass production commences in year 4 but remains a relatively small component of output

Olive oil revenues become substantial in year 6

Revenues continue over effective life of the asset (+100 years)Revenues continue over effective life of the asset (+100 years)

90%

100%Production mix over first 20 years

70%

80%

90%

OliveOliveCarbon Carbon

BiomassBiomass

40%

50%

60%Olive oil Olive oil CreditsCredits

10%

20%

30%

9CARBON DYNAMICS next generation carbon sink

0%1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Carbon provides up-front income streamCarbon provides up-front income stream

Bulk of carbon sequestered in first 10 years

Carbon may be forward sold to fund CAPEX

Project averages production of approx 1.2M CCs pa over first 10 years

10CARBON DYNAMICS next generation carbon sink

* Based on a 50,000 hectare project, and certain price, species mix and land assumptions

Where carbon credits will be soldWhere carbon credits will be sold

Carbon has the potential to become the largest traded commodity in the world

Credits to be structured to comply with all current and proposed standards in Australia and internationallyy

Credits may be sold into voluntary and mandatory markets

CARBON DYNAMICS prefers to sell to major market facilitators, however, future projects i l di l imay involve direct sales to emitters

11markets

Where olive oil will be soldWhere olive oil will be sold

+$20B international market – established commodity

Little prospect of global supply exceeding global demand

Forecast to be lowest cost producer  (still high quality)

Bulk commodity sales (no branded consumer products)

Internal bulk commodity sales team will be appointed

3 5

Annual Global Production of Olive Oilbillions of litres pa

25.0

CARBON DYNAMICS Forecast Production of Olive Oil

millions of litres pa

2.5

3.0

3.5

15.0

20.0

25.0

1.0

1.5

2.0

5.0

10.0

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1990

/91

1991

/92

1992

/93

1993

/94

1994

/95

1995

/96

1996

/97

1997

/98

1998

/9

1999

/0

2000

/1

2001

/2

2002

/3

2003

/4

2004

/5

2005

/6

2006

/7

2007

/8 0.0Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

markets

Where biomass will be soldWhere biomass will be sold

Current plans include sale of green unprocessed biomass

Potential for future addition of pelletising plant to value add

Potential buyers of pelletised biomass include:

Nearby power generators

Other domestic power generatorsp g

Offshore power generators

Particularly strong demand for green energy sources in Europe where demand exceeds supply. Australian biomass is already sold into European markets

13markets

Achievements to dateAchievements to date

Scientific viability of using olive and eucalyptus trees confirmed

Business model developed

Target scale of first project identified at 50,000 Ha, first 9000Ha identified

Key management and technical personnel identified and ready to join team

Advancing partnerships:

• Several international investment banks currently formulating proposals for project funding

• Global carbon certification and verification partners identified and ready

• Key suppliers and contractors identified and ready• Key suppliers and contractors identified and ready

• Global legal and business advisory partners identified and ready

• Land acquisition partner has already found first 9000Ha land parcel

Instruments to monetise future carbon credit production being developed

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Funding strategyFunding strategy

Current stage (now):Current stage (now):Rights issue $1.13M‐ Approx $0.7M to option first land parcel‐ Balance to employ key management working capital‐ Balance to employ key management, working capital

Next stage (next 3‐6 months):Next stage (next 3 6 months):Possible equity issue to option additional land, finalise design and planning, employ operational staff and secure seedlings

Project funding (within 12 months):Carbon pre sold via investment banking partnerEquity issue to fund CAPEX and OPEXSmall component of traditional debt funding for plant and equipment

15financials

Potential future milestonesPotential future milestones

Expected 6 – 12 month milestones Current status

Appointment of international investment banking partner Candidates identifiedSelection process underway

Appointment of key operations personnel Candidates identified and ready to commenceAppointment of key operations personnel Candidates identified and ready to commence

Appointment of project verification partner Partner identified

Technical advisory panel appointed Several members identified and ready

Appointment of tree supply vendor Vendor identified and ready

First land option executed Detailed regional selection work completeLand acquisition team has commenced land search work

Bankable feasibility achieved Modeling and planning done Verification underwayVerification underway

Project funding secured Discussions with potential investment banking partners have commenced

Carbon pre sale and future off take established Design of instrument underway

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Carbon pre sale and future off take established Design of instrument underway

Offer summaryOffer summary

Renounceable Rights Issue1 new share for every 1 share held at record date

On Issue Price $’s Raised

Issue price of 1.5 cents per share

Raising approx. $1,139,430  before costs

Ordinary Shares on Issue 75,962,000

Rights Issue Shares 75,962,000 $0.015 $1,139,430

Post Issue 151,924,000

Proforma Balance Sheet 

Consolidated 31 Mar 08#

($’000)

Consolidated Proforma

($’000)

Activity Date

Investor presentations 5 June

Indicative Timetable

Current AssetsNon Current AssetsIntangible Assets

1,11864-

2,09964-

Announcement of renounceable rights issue

6 June

Lodgement of Prospectus with ASIC 9 June

Ri ht t di 13 JTotal Assets 1,182 2,163

Current Liabilities 10 10

Rights trading commences 13 June

Record date for determining entitlements 19 June

Rights trading ends 2 July

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Total Liabilities 10 10

Net Assets 1,172 2,153

Closing date 9 July

Dispatch of holding statements 17 July

Q & AQ & A

Q: Isn’t this just another olive oil project?No. The primary purpose is to create a new generation of carbon sink. One which sequesters lots of carbon that can be sold as carbon credits but also one that ultimately creates a long term agribusiness cash flow once the carbon has been captured. To do this the plantation will be created in a very differentthat ultimately creates a long term agribusiness cash flow once the carbon has been captured. To do this the plantation will be created in a very different way to other plantations: no irrigation, natural pest control and fertilization, low cost land, very large scale, focus on carbon rather than olives.

Q: What’s the difference between this business and the other carbon sink tree plantation companies?

All other projects to date have relied on a net investment outflow with carbon as the only substantial potential future source of revenue. This project aims to create a viable long term agribusiness in which carbon plays a critical early role. The land will be owned not leased avoiding potential future problems with title and security. This will be the first time olive trees will be used for carbon capture. 

Q: How will the business funds its ultimate development if $300M is required over the first 5 years?

Up to half the ultimate project funding is expected to come from the innovative forward‐sale of carbon credits. This new kind of financial instrument will probably become more common as the global carbon market picks up scale. The balance of funding will come from more traditional equity and debt markets with the security of land assets and future cash flows supporting them Funding will be completed in stages in much the same way as mostmarkets with the security of land assets and future cash flows supporting them. Funding will be completed in stages in much the same way as most resources projects are funded.

Q: What will ensure the trees survive?

The project has a key focus on land selection, assessment and preparation. Because the trees will not be irrigated it is critical to select land with the appropriate rain profile, soil types, temperature ranges and wind patterns. These factors are not usually as important as irrigation and fertilizers compensate for poor land. The company already has leading expertise in all key technical areas.

Q: What happens if the company can’t fund the acquisition of land within the next year?

The carbon market is developing so rapidly that low cost sources of carbon sequestration are becoming highly sought after. This project represents a new breed of commercially viable carbon sinks and exposure is limited to land optioning costs in the first instance. 

Q: How can this project go ahead when the government hasn’t yet announced how the carbon trading scheme will work?

It has already become relatively clear that a cap and trade system is the option preferred by the government and that an emissions trading scheme will commence in Australia in 2010. In this instance emitters will rely on external supply of carbon sequestration to comply. Enough is known about the fundamentals of such schemes to make strong demand for carbon credits in Australia and abroad high.

Q: How can the company sell carbon credits when all its doing is planting trees?Q: How can the company sell carbon credits when all its doing is planting trees?

The process of carbon sequestration (or capture and storage)  by trees is fundamental to the natural environment. CO2 is removed from the air by trees which in turn output oxygen and grow vegetative matter. A significant proportion of the tree structure both above and below ground is carbon.

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ContactsContacts

C @ Limited Patersons Securities Limited@Andrew Konowalous ‐ DirectorPhone (08) 9223 0500Email andrewk@carbondynamics.com.auMobile 0417 990 334

Lead Manager and UnderwriterAaron Constantine – Executive DirectorPhone  (08) 9263 1111

Andrew Harrison ‐ DirectorPhone (08) 9223 0500

Patersons Capital PartnersCorporate Advisor( )

Email andrewh@carbondynamics.com.auMobile 0415 324 359

David de Loub – Executive DirectorPhone  (08) 9263 1111Email DdeLoub@psl.com.au

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