CarbonRanches

Mission: To Develop Large Scale Carbon Forest Projects with Economic and Environmental Benefits

CarbonRanches invests in large timber blocks in the western United States that provide environmental and recreational opportunities through carbon sequestration. We currently own a private wilderness portfolio in Western North America consisting of three Oregon ranches with approximately 50,338 acres of timberland. Our investment strategy is to identify and acquire well stocked timber pieces, develop carbon projects, and exit projects at different stages of carbon plan development.

CarbonRanches manages its properties to integrate economic viability with ecological sustainability creating financial and environmental benefits for land owners. Our ranches operate as working carbon businesses, relying on carbon credit offsets as its major revenue source with additional revenue from cattle, hunting, fishing, and ecotourism. CarbonRanches supports many other environmental projects including water resource and timber management, critical salmon and steelhead habitat protection and the reintroduction of native species.

CarbonRanches investments consist of two distinct values, the current market value associated with land and the forecasted value associated with future carbon credit revenues. CarbonRanches believes that land investment provides strong downside investment protection coupled with strong upside investment potential through land and carbon credit appreciation. Our investments also combat global warming through wilderness protection.

CONTACT JAKE POLVI FOR ADDITIONAL INFO

541.410.3050 | jake@polvi.net

CARBONRANCHES PORTFOLIO

CarbonRanches currently owns and operates three Oregon timberland properties in different stages of carbon project development. The three properties are available for sale individually or combined.

OPAL MOUNTAIN RANCH

Opal Mountain Ranch, twenty-five miles northeast of Prineville, Oregon, is a legacy recreational timber ranch consisting of approximately 16,981+/- deeded acres in a large private block (no trespassing) with exceptional wildlife, timber, and water resources.

With Cascade Mountain views from Mt Bachelor to Mt Rainier as its backdrop, the topography ranges from timber covered slopes, grassy hillsides, steep canyons, and meadows. The ranch has an elevation range of 5,700 feet down to 3,600 feet with over four miles bordering the Ochoco National Forest allowing for diverse wildlife habits and abundant recreation. The property is expected to generate attractive annual positive cash flow from recreation and carbon.

Current Valuation: USD $28,300,000 ($18.7mm land, $9.6mm NPV (@ 15 %) carbon revenue)

Acreage Summary:

  • 16,981 acres total Property Size
  • 14,106 acres Carbon Project Size

Carbon Project Timeline:

  • Opal is a completed project
  • Annual credits issued by July annually per estimated forecast

Opal Mountain Land Management Objectives:

  • Work closely with the US Forest Service and Oregon Department of Forestry to optimize forest health and reduce fire risk
  • Manned US Forest Service Fire Lookout tower located on property
  • Improvement for recreational use and lease the hunting rights
  • Develop springs, expand meadows, plant hardwoods along creeks and reestablish existing Aspens stands
  • Use a regenerative cattle grazing strategy to enhance ground cover and reduce erosion
    • Improve climate resiliency with improved watershed storage and water retention

CHERRY CREEK RANCH

Cherry Creek Ranch is adjacent to Opal Mountain, approximately twenty-five miles northeast of Prineville, Oregon and is known for its wilderness-like terrain and premium elk hunting. The Ranch consists of approximately 16,714 acres in a large secure (no trespassing) block with exceptional views, wildlife, timber, and water resources, including the Cherry Creek Reservoir. Adjacent to the Cherry Creek Ranch are the Painted Hills and the BLM wilderness area.

With stunning views of the John Day Basin, the topography ranges from mixed conifer timber covered slopes, grassy hillsides, steep canyons, and meadows. The Ranch has an elevation range of 5,100 feet down to 2,600 feet. The property is expected to generate attractive annual positive cash flow from carbon, conservation and recreation.

Current Valuation: $31,700,000 ($22.6mm land, $9.1mm NPV (@ 15 %) carbon revenue)

Cherry Creek is being developed as a Washington State Avoided Conversion Compliance Project. Cherry is expected to generate approximately 373,395 carbon credit offsets over the next 20 years with 266,579 credits coming in years 1-4.

Acreage Summary:

  • 16,714 acres total Property Size
  • 14,240 acres Carbon Project Size Offering Price
  • 80 acres of irrigation water rights

Project Development Timeline:

  • Verification scheduled for Q2 2024
  • Credits expected to commence in 2025 and then annually per forecast estimate

Land Management Objectives:

  • Expand wet meadows by using existing water rights to enhance critical salmon and steelhead habitat
  • Use storage in the Cherry Creek Reservoir for fire protection and to maintain instream flows during critical fish habitat flow periods
  • Develop springs and enhance existing Aspens stands
  • Use a regenerative cattle grazing strategy to enhance ground cover and reduce erosion
  • Improve climate resiliency with improved watershed storage and water retention
  • Increase storage in upper watershed and establish efficient irrigation through April, May and June, to slow water down and hold more water on property
  • Work closely with US Forest Service and Oregon Department of Forestry to optimize forest health and reduce fire risk

RUDIO MOUNTAIN RANCH

Rudio Mountain Ranch is located approximately ten miles northeast of Dayville, Oregon and is known for its dense timber stands, abundant water, and premium hunting. The ranch consists of approximately 18,643 deeded acres in a large secure (no trespassing) block with outstanding views, wildlife, timber, and water resources.

With views of the John Day Basin and the Ochoco Mountains, Rudio’s topography is predominantly dense mixed conifer timber covered slopes and wet meadows. The ranch has an elevation range of 5,760 feet down to 3,300 feet. The property is expected to generate attractive annual positive cash flow from conservation, recreation, and carbon.

Current Valuation: $56,600,000 ($26.1mm land, $30.5 NPV (@ 15 %) carbon revenue)

Rudio Mountain is being developed as an Improved Forest Management Project for the California or Washington market. In terms of carbon valuation, Rudio Mountain is expected to generate 1,300,000+ carbon credit offsets over the next 20 years with 500,000+ credits in the first year.

Rudio Summary:

  • 18,643 acres total Property Size
  • 16,500 acres Carbon Project Size
  • 50 acres of irrigation water rights

Project Development:

  • Project in development phase with targeted field verification Q4 2024
  • Anticipated first credit issuance in Q42025 / Q12026

Rudio Land Management Objectives:

  • Work closely with US Forest Service and Oregon Department of Forestry to optimize forest health and reduce fire risk
  • Participate in local watershed enhancement improvement projects
  • Enhance existing reservoir to release instream flows during critical flow periods
  • Develop springs and reestablish existing native Aspens stands
  • Use regenerative cattle grazing strategies to enhance ground cover and reduce erosion
  • Full watershed scope projects to increase stream flows
  • Improve climate resiliency with improved watershed storage and water retention
  • Increase storage in upper watershed and establish efficient irrigation through April, May and June, to slow water down and hold more water on property

Carbon Market – Overview & Opportunity

The carbon market is a new and exciting investment opportunity. CarbonRanches has witnessed strong price appreciation over the last five years and sees increasing prices prospectively. The carbon market continues to expand; California and Washington State have fully developed cap and trade programs regulating all state borne emissions and eleven northeast states participate in the RGGI cap and trade program which regulates power plant emissions only.

The carbon market can be broken down into two major categories; Regulated and Voluntary.

Regulated Markets (Cap and Trade / Compliance)

  • Established through legislation and regulation requiring a cost for emissions
  • Designed to drive emission cost upward by targeting a specified GhG reduction level
  • California is the largest regulated market covering a $3.3 trillion economy ranked 5th largest globally. Washington State recently launched a similar program.
  • Carbon instruments are standardized per regulation
  • Land owners allowed to selectively harvest timber up to net forest growth

Voluntary Markets

  • Un-regulated markets with voluntary trading of carbon instruments
  • Designed to satisfy external and internal stakeholder – shareholders, customers, employees – who desire a carbon neutral strategy
  • Major buyers include airlines, technology companies, etc.
  • Carbon instruments are highly subjective and vary widely from one another

CarbonRanches has purposely focused on the regulated markets of California and Washington State. These regulated markets have more defined buyers and sellers, greater transparency with quoted instruments and exchange listings, and upward price trajectory based on environmental policies designed to drive emission costs higher.

Carbon Opportunity & Pricing

  • Carbon pricing is expected to go up significantly over the next 10-20 years
  • The California Air Resources Board (CARB) recently stated that carbon costs could reach @$140 by 2035
  • Current California pricing is @$40 as of February 2024
  • CarbonRanches has witnessed significant price appreciation over the last 5 years

CarbonRanches – Strategy & Market Position

CarbonRanches believes that large, private blocks of timberland provide unique opportunities for investors and users. These land investments are increasingly rare, particularly in high growth areas like the Western United States. CarbonRanches timberland investments create beneficial carbon sequestration through timber conservation, combatting global GhG emissions with a stabilized economic model through carbon markets.

CarbonRanches believes that land investment provides strong downside investment protection coupled with strong upside investment potential through land appreciation and carbon credit income, with the clear added benefit of green investment. CarbonRanches continues to identify new investment opportunities and offer for sale current projects in various stages of carbon development.

Disclaimer: The information provided has been obtained from sources believed to be reliable and is believed to be correct, but the landowner, project developers and brokers do not guarantee its accuracy. All distances, sizes, capacities, and similar measurements and figures are approximate. All information about properties should be independently verified by interested parties. The information is subject to errors, omissions, change or withdrawal without notice, and approval by the owner. Information regarding land classification, estimated capacities, carbon, maps, etc., is intended only as a general guideline and has been provided by the owners and other sources deemed reliable, but accuracy cannot be guaranteed. All parties are encouraged to research the information to their own satisfaction.