Brochure

Ukraine Agricultural Land Investment

Low-entry – just US$1,865 per hectare

High-yield – 415% forecast appreciation after five years

Fully-managed – a hassle-free addition to an investment portfolio

The BBC investigate why buying Ukraine agricultural land is a must for any serious investor.

To watch Jeremy Cooke’s report in full on BBC Newsnight visit:

http://landing.obeliskinternational.com/ags/ukraineframe.php

In a special report on the food shortages facing the world, Jeremy Cooke, a top journalist and specialist on agricultural issues, visited the vast farmlands of Ukraine to report on the huge changes currently taking place on one of the world’s most fertile but least exploited agricultural areas.

“As fast as the combines can get the wheat out of the fields, it’s being gobbled up by a ravenous international market.”

Jeremy Cooke, BBC

BBC Newsnight Report, 24th August 2009

Contents

Why Invest in Agricultural Land in Ukraine?

The Investment

Investment Model: Wheat

Why Invest in Agricultural Land?

Why Invest in Agricultural Land & Crops in Ukraine?

An Overview of Ukraine

About Aston Lloyd & Eurofarms

Purchase Process

Crops

KyivLutsk

Odessa

Kharkov

DnipropetrovskDonetskZaporozhye

SevastopolYalta

Lviv

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Why Buy Agricultural Land in Ukraine?

About Obelisk

To find out more about this investment visit:

WWW.OBELISKINVESTMENTPROPERTY.COM 3

Why Invest in Agricultural Land

in Ukraine

• Incrediblylowentryprice–just US$1,865 per hectare.

• Investmentwithawell-establishedLondon-basedplcwithover€120 million in property currently under management.

• 415%projectedcapitalappreciationafterfiveyears.

• Dual-moneymakingopportunity–annualreturnfromharvestprofitsand capital gains from increasing value of the land.

• Ukraine’sharvestyieldisexpectedtodoubleoverthenextfiveyears.

• Fully-managedandthereforeworry-freeinvestment.

• Risingworldpopulationandhigherpricesarecreatingfoodshortages meaning the need for additional food supplies is urgent.

• Opportunitytodiversifyyourportfolio.

• Duetoincreasingoilprices,cropsgrownforbiofuels,suchaswheatand rapeseed, are in very high demand.




The investment involves the purchase of land rights in agricultural land situated in the Crimean Peninsula inUkraine.Ukrainehasoneoftheworld’srichestandmostfertilesoils.Around70%ofthecountryisarable and Ukraine boasts a significant proportion oftheworld’schernozems(highly-fertileblacktopsoil).Knownasthe‘breadbasketofEurope’,Ukraine grows a variety of agricultural products and istheworld’s10thlargestcerealexportingcountry,although non-intensive farming methods mean that yields currently fall short of potential. Despiteitsrichsoilandagriculturalpotential,land prices in Ukraine per hectare are currently far below those in other key grain-producing countries.Forexample,pricesinArgentinarangefrom US$4,400 to US$7,800, those in the US, US$4,500 to US$11,000 and those in Western Europe, US$13,200 to US$32,200.

Investors purchase the land rights for a minimum of one‘pai’*ofprimeagriculturallandattheverylowpriceofUS$1,000perhectare(pluslegalfeesof$115 per hectare). In January 2010, investors are required to make a one-off cultivation payment of US$750 per hectare.

The purchase of land rights offers investors dual returns.Thelandwillbeplanted(asfromFebruary/March2010)withfivedifferentcrops(wheat,barley,rapeseed, sunflower and corn) on a rotational basis and harvested. Every January during the investment period,investorsreceive30%ofthenetharvestprofitfrom the previous year. At the end of Year 5 of the investmentperiod,thesiteisexpectedtobesoldin its entirety to institutional funds, offering investors substantial return on their initial investment.

Farmlandhasrecentlysparkedconsiderableinterest among institutions and foreign investors. Forexample,theBaringGlobalAgriculturalFundlaunchedinJanuary2009gained28.6%fromApriltoOctober2009.AccordingtoBaring’sOctober 2009 report, “the business of feeding the world has emerged as an important investment theme which should have a place in all well diversified investment portfolios”. Investment specifically in Ukraine includes Morgan Stanley who bought 40,000 hectares in March 2009 and LandkomInternational(theUKcompanyfeaturedon the BBC2 Newsnight report) who has leased 115,000 hectares to farm directly.

This latest Obelisk recommendation offers several outstanding investment advantages:

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The Investment

• low-entry–just US$1,865 per hectare.

• high-yield–415%projectedcapitalappreciationafterfiveyears.

• fully-managed–ahassle-freeadditiontoaninvestmentportfolio.

“The business of feeding the world has emerged as an important investment theme which should have a place in all well diversified

investment portfolios.” (Baring Global Agricultural Fund)




*Ukrainiantermforanareaoflandconsistingofbetween 2 and 20 hectares.

US$3,403 per ha gain

Investment Model:

Harvest Projections: Wheat

Land purchase Annual projectedreturn fromharvest per ha*

ROI annual harvest yield

Projected land value per ha

ROI land value

Initial Investment US$1,000

Year 1 US$93 12.4% US$1,920 192%Year 2 US$125 16.7% US$2,457 246%

Year 3 US$160 21.3% US$3,145 315%Year 4 US$198 26.4% US$4,026 403%Year 5 US$240 32% US$5,153 515%

Total US$816 per ha 108.8% 5 year equivalent

US$4,153 per ha gain

415% (241% including $750 cultivation)

*Basedonacombinedprojectedwheatpriceandcropyieldincrease.**BasedonprojectedwheatpricereleasedbyChicagoBoardofTrade,November2009.***Basedonapotentialyieldgrowthofbetween3.5and8mt/ha(USDA,2009).




Wheat

Potential Crop Price**

US$205 US$215 US$220 US$230

4 mt/ha US$81 US$93 US$99 US$111

5 mt/ha US$143 US$158 US$165 US$180

6 mt/ha US$204 US$222 US$231 US$249

7 mt/ha US$266 US$287 US$297 US$318

Met

ric

Tonne

per

Hec

tare

***

Current income projections in the above table are highly conservative incomparison to the 8.6 mt/ha generated in the UK (Scottish Government, 2009) and in consideration of projected increases in commodity prices and yields as a result of continued investment in the region.

Yield: recent analysis into Ukraine’s agricultural industry has found yields (i.e. metric tonnes of produce per ha) surging above 2010 projections. The yield is projected to be within 3.5 and 8 metric tonnes per hectare (Agricultural Marketing Resource Centre, 2009).

Exit: as a result of expressed interest from institutional funds, we expect the site to be sold in its entirety after 5 years, offering significant ROI for investors.

Agriculturalproduceprovidestheworld’sfoodand as long as people need to eat, there will be demand for agriculture. This demand, whether crops for human consumption or crops for animal feed, is consistently growing fuelled by an ever increasing world population and by changes in diet, particularly in China and India.

Theworld’spopulationisgrowingatanastonishingrate. According to the US Census Bureau, the global population reached 6.79 billion in November 2009.TheUNexpectstheworldpopulationtoriseby33%by2030whenitwillreach8billion.TheFoodandAgricultureOrganisation(FAO)projectsthat the world will need an additional 1 billion tonnes of grain by 2030.

Theworld’sappetiteischangingtoo.Aswealthincreasesintheworld’slargestcountriessuchasChina and India, so does the desire for a betterstandardofliving,whichincludesbetterfood.Forexample,demandformeatamongtheChineseandIndianfast-expandingmiddleclasseshasgrown hugely over the last few years. Therefore, the demand for animal feed has also grown, which in turn has led to rises in crop prices.

Prices of agricultural commodities rose to record levels in 2008. At the height of demand, wheat reached US$13 a bushel, its highest price ever,with corn costing US$7.50 a bushel. 2008 saw record crop yields, which led to a fall in crop prices, although the international price of grain has risen strongly since March this year. Severalfactorsleadexpertstobelievethatprices are likely to continue a steady upward trend. According to a report published by the InternationalFoodPolicyResearchInstituteinOctober 2009, climate change means crop prices willrisespectacularlyby2050.Forexample,wheatpricesareexpectedtoincreaseby194%,maizeby153%andriceby121%.

“Thebottomlineisthattheworld’spopulationis going up and food supply is going to be moreofaproblem,”saysProfessorDavidPink,interviewed on BBC2 Newsnight. In countries like China and India, grain is not just a commodity but also a strategic material.

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Why Invest in

Agricultural Land?

“The bottom line is that the world’s population is going up and food supply is going to be more of a problem.”

(Professor David Pink from Warwick University and interviewed on BBC2 Newsnight)




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Germany

Ukraine USA

Turkey

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iaBra

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Argenti

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Tanzania

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Obtainable

Current

Potential wheat yields: Current versus obtainable yield

WorldBank,Ukraine’sresponse to the global food crisis. May 2008

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Wheat yields (2008/2009) projections

USDA,2009

Cropyield(m

t/pe

rha)

The Facts




Why Invest In Agricultural Land & Crops in Ukraine?

Knownas‘thebreadbasketofEurope’,Ukrainehasa long-standing tradition of agricultural production. Home to rich fertile soil with an abundance of chernozems,Ukraineis70%arablelandandiscurrentlytheworld’s8thlargestexporterofwheatandranks10thforoverallcerealsexports.AccordingtoWorldFocus,“theperfectbalanceofsunshine and rainfall on Ukraine farmland means it is bursting with marketable products”.

The forecast for yields and production of major grains(e.g.wheatandoilseeds)inUkrainefor2009areexcellent.AsofearlyNovember,Ukrainehad harvested almost 45 million tonnes of grain.

Ukraine is a grain-producing country with huge potentialtoproducemore(seeTable3onpage8).Atatimewhentheworld’sdemandforfoodis increasing dramatically, Ukraine is, according to the World Bank, “in a position to make a significant contribution to the international effort todeal with the food crisis”.

In 2008, a European Bank for Reconstruction &Development(EBRD)/FAOreportidentifiedUkrainealongwithKazakhstanandRussiaas three of the few countries where both an expansionofarableland-useandconsiderableintensification could take place without serious environmental consequences. According to the report, these three countries could have a crucial impact on the world food situation. Professor Ian Crute,DirectorofRothamstedResearch(theUK’slargest agricultural research centre) says that “prospectively, Ukraine is becoming an important source of food supplies”.

Farmingpracticesandgrainstoragefacilitiesarecurrently under major improvement in Ukraine in order to increase agricultural output. This is known asthe‘catch-upeffect’,andUkraine’sharvestyield(metrictonneperhectare)isexpectedtomorethandoubleoverthenextfiveyears.




Knownas‘thebreadbasketofEurope’,Ukraine has a long-standing tradition of agricultural production. Home to rich fertile soilwithanabundanceofchernozems,Ukraineis70%arablelandandiscurrentlytheworld’s8thlargestexporterofwheatandranks10thforoverallcerealsexports.

The forecast for yields and production of majorgrains(e.g.wheatandoilseeds)inUkraine for this year are good, with wheat productionexpectedtoreachthehighestlevelssince2002/03.Acreagesandyieldsof all crops are predicted to increase on last year’s.

Ukraine is a grain-producing country with hugepotentialtoproducemore(seeTable??onpage5).Atatimewhentheworld’sdemand for food is increasing dramatically, Ukraine is, according to the World Bank, “in a position to make a significant contribution

to the international effort to deal with the food crisis”.

In 2008, a European Bank for Reconstruction &Development/FAOreportidentifiedUkrainealongwithKazakhstanandRussiaas three of the few countries where both anexpansionofarableland-useandconsiderable intensification could take place without serious environmental consequences. According to the report, these three countries could have a crucial impact on the world food situation.

Farmingpracticesandgrainstoragefacilitiesare currently under major improvement in Ukraine in order to increase agricultural output.Thisisknownasthe‘catch-upeffect’,andUkraine’sharvestyield(metrictonneperhectare)isexpectedtomorethandoubleoverthenextfiveyears.

Ukraine’s economy saw extraordinary growth between independence and 2007 when GDP growth was 7.9%. In common with the vast majority of nations worldwide, Ukraine experienced a slowdown last year, although growth was still 2.1%.

Withanareaof603,700km2,UkraineisEurope’ssecond largest country and has a population of around 45.9 million. Located at the crossroads of east-west and north-south trading routes, Ukraine enjoysanidealpositionforexports,whichisenhanced by high-tech transport infrastructure.

Ukraine’seconomysawextraordinarygrowthbetweenindependenceand2007whenGDP

growthwas7.9%.Incommonwiththevastmajorityofnationsworldwide,Ukraineexperiencedaslowdown last year, although growth was still 2.1%.InitsEconomicUpdateinOctober2009onUkraine,theWorldBankpredicted2.5%growthin2010.TheEBRDispredicting3%.ThesepredictionsofvastlyimprovedgrowtharebasedonUkraine’sstrongexportmarketcomprisedmainlyofsteel,chemicals and grain.

Ukraine became independent from the former Soviet Union in 1991 when a democratic republic was established.

Improvements in the political situation led to theIMFMissiontoUkraineinOctober2009reporting that the economic and financial situation inUkraineisstabilising.TheIMFhasallocatedaUS$16.4 billion loan to Ukraine.

An Overview of Ukraine




Ukraine became a member of the World Trade Organisation in May 2008 and belongs to the EUEasternPartnership(EP),analliancesimilarto a customs union. EP membership has allocated Ukraine€494millioninEUfundsbetween2007and 2010. In addition, in late October 2009, the EUCommissionagreedaloanof€500milliontoUkraine.DiscussionsformembershipofNATOare well advanced and Ukraine aspires to EU membershipwithinthenextfewyears.

Ukraine’spropertymarketexpandedhugelybetween 2002 and 2007, particularly in the capital,Kyiv.Thecapital’spropertymarketremained stable during 2008, although the house priceincreaseof7.2%wasthelowestsince2003. In common with property markets globally, Ukraine has been affected by the economic slowdown.However,propertyinDonetsk,Kharkiv,KyivandLvivisexpectedtoreceiveaboostfromtheUEFAEuro2012matchesheldinthese cities.

Ukraine’stourismiscurrentlyunder-developed,althoughexpandingfast.AccordingtotheWorldTravelandTourismCouncil(WTTC),thetourismsectorinUkrainewillseerealgrowthof6.4%annuallyoverthenextdecade.TheWTTCranksUkrainian tourism 20th in the world in terms ofgrowth. Ukraine received nearly 25.5 million visitorsin2008,amassive10%increaseontheprevious year.




About Aston Lloyd

& Eurofarms

This latest Obelisk investment recommendation is backed by firm credentials, affording the investor peaceofmindalongwithexcellentreturns.

Owners of the lease on the land in Ukraine are Aston Lloyd Agri-Commodities Ukraine, a Ukraine-registeredlimitedliabilitycompany(LLC).ThisLLCisinturnownedbyAstonLloydAgri-CommoditiesLtd,asubsidiary of Aston Lloyd Holdings plc, a London-based property development and investment company.

AstonLloydHoldingsplcbringsover30yearspropertyinvestmentexperiencetothislow-entryinvestmentandthecompanycurrentlyhasapropertymanagementportfolioofover€120million.Specialisinginemergingmarkets,AstonLloyd’sexistingportfolioincludesresidentialandhoteldevelopmentsinBulgaria,NorthernCyprus, Slovakia and Turkey.

Managing operations and cultivation of the farmland in Ukraine is Eurofarms LLC, a Ukraine-based farm management company. Eurofarms’responsibilitiesincludefarmmanagement,theimplementation and supervision of modern technology, constant monitoring of the land, optimum soil conservation and the timely sale of agricultural products at the highest profit.

Eurofarms’principalstrategiesaretoimproveproductivityandyield,tocontrolgrainstoragefacilities(vitalforflexibilityin pricing) and centralise key processes and control. These strategies will increase yield and therefore profitability from the land.

Eurofarmshasahighlyexperiencedteamofexpertsandadvisors.TheseincludetheChiefExecutiveOfficer,RichardRozwadowskiwhobringsmorethan30years’farmmanagementexperiencetotheproject.Richard’sexpertiseincludesheadingamajorEUprojecttodevelopsupplychainsinUkraineandadvisingFAOinUkraine.EurofarmsLLC’seconomicadvisorandmarketanalystisDrSergeyFeofilov,managingdirectorofUkrAgroConsult,aleadingUkrainianagriculturaleconomicandmarketresearchcompany.Furtherinformation about Eurofarms is available on the company website: www.eurofarms.com.ua.




Purchase Process

1.Investorsmustpurchaseatleastone‘pai’consisting of 2 to 20 hectares.

2.Inanyforcemajeureevent(e.g.drought,flood,disease or insect attack), investors will be required to pay an additional recultivationfee,whichwillnotexceedthecultivationfee.

3.Time of sale and volume of produce sold is strictly dependant on market conditions and will be based on when the highest-market price can be achieved.

4.Investorswillreceive30%ofthenetprofit from the harvest.

Invest between 9th November and 31st December 2009 at US$1,000 per hectare1

(plusUS$115perhectarelegalfees)

January 2011Harvest profit paid to investors4

September 2010Crops sold at market price3

July/August 2010Crop harvestingcommences

January 2010One-off cultivation fee of US$750 per hectare to be paid²

February/March 2010Crop plantation begins






Barley

Barley is a main source of animal feed and is also used for malting andhealthfood.Demandforbarleyisincreasingalongwiththedemandforanimalfeed(developingnationssuchasChinaandIndiaareeatingmoremeat).Sincetheperkilobeef/cropproduction ratio is 1:7, barley will continue to be in high demand.

Barley is the fourth most produced crop in the world and is known for its strongyields.Drought-tolerant,barleyalsohasashortgrowingseason.

Current market price:130.7(US$/mt)**

Current futures price: 153(US$/mt)***

Maize

Maize(corn)isthemostwidelygrowncropintheworld.Thiscerealgrain is mainly used in food production, particularly industrialised foodasmaizeisamajorsourceofstarch.Maizecanalsobeusedto produce biofuel and as such is in high demand.

Current market price: 167.3(US$/mt)**Current futures price: 214.2(US$/mt)***

Rapeseed

Rapeseedisanimportantsourceofvegetableoil(likesunfloweroil, it can help reduce cholesterol levels), animal feed and biofuel. AccordingtoUSDA,rapeseedistheworld’sthirdmost-producedvegetable oil and the second source of protein meal.

Rapeseed production is increasing annually and 2008 saw record levels of rapeseed production.

Current market price:885.83(US$/mt)**Current futures price:1,561(US$/mt)***

Crops

Ukraine’s fertile soil lends itself perfectly to the cultivation of a number of crops, all of which are vital soft commodities. The following five crops will be grown on the farmland on a rotational basis* (essential in good farming practice):




Sunflower

Sunflower is a highly versatile crop. It is used for vegetable oil, margarineandanimalfeed.Sunfloweralsoproduceslatexandresearch is advanced in the use of sunflower as an alternative to hypoallergenicrubber.Inaddition,sunflowerisa‘carrieroil’forbio-diesel production.

Sunflowerhasashortgrowingseason(itcanbesownandharvestedafter wheat) and is tolerant of summer drought. Sunflower crops also improvesoilqualityastheyhelpremovetoxicingredients.

Ukraineformspartofthe‘sunflowertriangle’(alongwithArgentinaandRussia),theworld’stopthreeproducers.The6.18milliontonnesharvestedduringthe2008/09MarketingyearwasarecordinUkraine.

Current market price: 1,029(US$/mt)**Current futures price NB: No futures market is trading for this crop

Wheat

As the biggest global source of dietary protein and food, wheat is theworld’smostimportantcrop.Itisusedinthousandsoffoodstuffsincluding bread, breakfast cereals and beer. It is also an animal feed and is even used for construction material.

Likesunflowerandmaize,wheatisalsogrownforcarbon-negativebiofuel,consideredavitaltoolagainstglobalwarming.Forthisreason,manycountriesareexpandingtheirproductionofwheat.

Wheat produces high yields and is therefore widely cultivated as a cash crop. It grows well in many countries including Ukraine and is one of the crops in highest demand in the world. The variety grown in Ukraine is mostly Hard Red Winter wheat.

Current market price:188.64(US$/mt)**Current futures price:215(US$/mt)***

Crops


*Thesecropsareprovidedasanindicationofwhatcouldbeplanted.EurofarmsLLCwill also monitor market price performance and seed availability of various other crops to ensure the strongest returns for investors. Therefore it may be necessary to produce a crop not listed above.

**AllpricesarebasedonNovember2009figuresavailablefromtheWorldBankGlobalCommoditiesIndexandUSDA,aswellasChicagoBoard of Trade. Note, wheat price is based on production of winter wheat, the dominant wheat grade grown in Ukraine.

***Futurespricesbasedoncurrentglobalcommoditiesindexlong-termfuturescontractsforSeptember2010.

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Agricultural Land in Ukraine?

This farmland investment opportunity offers several compelling reasons to invest:

• Low-entryprice.

• High-yieldreturnsonasmallinvestment.

• Opportunitytoenjoyannualreturnsaswellascapitalgainattheendof the investment period.

• Globaldemandforgrainsissteadilyincreasing.

• Ukrainehashugeuntappedagriculturalpotential.

• Fully-managedandthereforeworry-freeinvestment.

• Investmentwithawell-establishedLondon-basedplcwithaproperty managementportfolioworthover€100million.

• Opportunitytodiversify your portfolio.




Why Buy

About Obelisk is an award-winning property investment company,renownedforitsexpertiseintheworldof international property investment. Obelisk carries out thorough in-house research and analysis plus compulsory due diligence on all its recommended projects ensuring that clients are provided with only the best, financially secure investments.

Formoreinformationvisit:www.obeliskinvestmentproperty.com

Obelisk

Information contained in this brochure is believed to be correct, but this cannot be guaranteed. Whilst Obelisk makes every effort to ensure that information herein is correct, it is not to be relied on as a basis of any contract or commitment and should not be construed as an offer or invitation to invest. No personal recommendation is being made to you and the past is not a guide to the future. Obelisk does not accept responsibility for any of the content, effects of errors or omissions.

The brochure in its entirely is protected by legislation on intellectual and industrial property and it is forbidden to reproduce, distribute,publiclydisseminateortransformit,exceptforpersonaluse.Itisalsoforbiddentoreproduce,relay,copy,assignorbroadcast, in whole or part, the information contained in this brochure, for whatever purpose and by whatever means.

Disclaimer



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