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The Premier Irish Forestry Fund phase II Plc. intends to raise up to £1 million through the issue of up to 1,000 preference shares at IR£1,000 each. The net funds raised will be used to acquire land in Ireland and to establish commercial forest plantations on that land. The plantations will be professionally managed for one rotation, which is a period of approximately thirty years. On maturity, the crop and the underlying land will be sold so as to maximise the value of the Fund's assets. When the assets have been liquidated in this manner the Fund will be wound up and all net proceeds from the sale of its assets will be distributed entirely to the Preference Shareholders.

The minimum investment in this Fund is IR£1,000 for one share, and an investment can be made for higher amounts in multiples of £1,000.

The directors have determined the minimum subscription at IR£250,000. If the amount raised in total does not exceed this minimum amount, the Fund will not proceed and all investment monies will be returned in full.

The initial set-up costs of establishing the Fund are estimated to be 7.5% of funds raised. On that basis, it is projected that 92.5% of funds raised will be invested directly in land assets.

It is projected that the Fund will earn sufficient revenue annually to discharge it's overhead costs. Revenue will be derived initially from the Afforestation Grant and Premium Scheme and subsequently from sales of thinnings.

The directors will ensure that the Fund's assets are at all times adequately insured against all foreseeable risks, so as to protect the shareholder's investment.

Investment in forestry in Ireland is heavily grant-aided. It is intended that the Fund will comply fully with grant regulations and benefit from all available grants so as to maximise investor's return.

Under Section 18 of the Finance Act 1969, all profits earned from the occupation of woodland managed on a commercial basis are exempt from both Income and Corporation Tax. Under section 93 of the Corporation Tax Act 1976, distributions, made from such profits are also tax free. This fund has been structured to take advantage of this exemption, and on that basis it is expected that the return from this investment will be entirely tax free.