Cambium Global Timberland : November 29 2021Annual Results for the year ended 30 April 2021

DocuSign Envelope ID: 7D67E204-6BB4-4B6C-BAAA-2B156C15DD13

Cambium Global Timberland Limited

Annual Report and Audited Consolidated Financial Statements

For the year ended 30 April 2021

DocuSign Envelope ID: 7D67E204-6BB4-4B6C-BAAA-2B156C15DD13

Cambium Global Timberland Limited

Contents

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DocuSign Envelope ID: 7D67E204-6BB4-4B6C-BAAA-2B156C15DD13

Cambium Global Timberland Limited

Chairman's Statement

In 2013 shareholders voted to change the Company's investment policy from investing principally in forestry assets or operations to realising investments in an orderly manner to achieve a balance between returning cash to shareholders and maximising value.

The journey has been a long one through difficult economic times, but the Company has now completed its exit from its entire portfolio of properties held at the time of that shareholder vote, in Australia, Georgia and Hawaii USA and the Brazilian states of Tocantins and Minas Gerais.

The Hawaiian exit took time due to absence of purchasers, but was ultimately achieved. Brazil proved even harder due to the weak Brazilian economy and currency. After a long wait, purchasers slowly returned and disposals were secured. In Tocantins, the 3R property was sold for cash (save for a withholding of R$400,000 tied to satisfactory resolution of a squatter situation). In Minas Gerais there proved to be no prospect for fully cash disposals, and the Company is left with receivables comprising deferred purchase consideration payments. These debts are being serviced in line with the sale agreements and all payments are expected to be received by February 2023. In each case, the land title is not liable to be transferred until all payments have been received, so voluntary default is not anticipated. There is however the possibility of default, voluntary or otherwise, in which event, however unlikely, the Company will have to assume again the responsibility of managing the relevant property and searching for another purchaser. Although the financial outcome from, essentially, being paid twice for the same asset, might have its attractions, it is an outcome which is neither anticipated nor desired in view of the long wait our shareholders have already endured to receive capital returns on their investments in the Company.

Since the final asset sale, your Board has sought to improve outcomes for shareholders by exploring opportunities first for a sale of the receivables for a cash sum discounted to present day value, and secondly for extracting value from the Company's AIM admission via a reverse takeover. Sadly, after protracted negotiations on both fronts, the "Brazil risk" proved unattractive to counterparties.

The result is that the Board has now turned its attention to further cost cutting for the final part of the journey and is exploring the most cost-effective way to return capital to shareholders before finally closing the book.

Antony GardnerHillman

Chairman

26 November 2021

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DocuSign Envelope ID: 7D67E204-6BB4-4B6C-BAAA-2B156C15DD13

Cambium Global Timberland Limited

Operations Manager's Report

For the year ended 30 April 2021

Total returns for the year were a loss of £0.4 million compared to a loss of £6.2 million in the previous year. A profit on the sale of the properties was offset by a further fall in the value of the Brazilian Real from R$6.91:£1.00 at 30 April 2020 to R$7.51:£1.00 at 30 April 2021, impacting the sterling value of cash flows generated in Brazil. Operating costs declined as disposals continued.

Below is a summary of the results by geographic area.

Brazil

All the land and forests in Brazil have now been sold or are contracted to be sold. Continued difficult market conditions have required all the sales except 3R Tocantins (below) to include deferred payment terms which are being met. In all cases, titles do not pass to the buyers until all the payments due have been received. Cambium is not responsible for ongoing forest expenditure.

The 3R Tocantins property was purchased by a local forestry company by way of a single purchase payment, and that has been received in full except for a withholding of R$400,000 which may become payable if an issue with squatters can be favourably resolved. The Company was also successful in resolving the dispute over the Lizarda property, where it held a lien, and received a payment of R$2m.

In Minas Gerais, in line with payment terms under pre-existing wood sale agreements, payments were received for harvesting at Agua Santa and Ribeirao do Gado and then these contracts were superseded by contracts with the same parties agreeing also to purchase the land, with payments over the same periods. Payments are no longer linked to charcoal prices. At Forquilha the standing wood was sold with harvesting and payments due over two years. Subsequently, and as announced, the land at Forquilha has also been sold with payments over two years and all initial payments have been received.

Expenditure by the Company on security, fire protection and insurance, required prior to the sales to protect the Company's assets, has now ceased, with these costs now being borne by the purchasers.

United States Hawaii

Cambium previously sold its plantation leases by way of assignment and the terms of the landlords' consents to the lease assignments required a sum equal to the balance of outstanding lease rental payments to be placed in escrow by the Company. The final amounts have been released to the Company from escrow and no balances are outstanding.

Conclusion

The Company's forestry assets (land and timber) have now all been sold with defined deferred payments expected over the period to February 2023.

Robert Rickman

Operations Manager

26 November 2021

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DocuSign Envelope ID: 7D67E204-6BB4-4B6C-BAAA-2B156C15DD13

Cambium Global Timberland Limited

Board of Directors

Antony R GardnerHillman, Independent Nonexecutive Chairman

Tony Gardner-Hillman is a solicitor of the Senior Courts of England and Wales and has a first-class honours degree in Jurisprudence from Oxford University. He co-founded the Jersey Trust Company group in 1987 and was a director and shareholder for 21 years until he resigned as non-executive group chairman and disposed of his remaining shareholding in the group holding company in 2008. He was a partner of Crills, a Jersey law firm, from 1987 to 2002, and a Jersey resident non-executive partner of the international law firm Holman, Fenwick & Willan (Jersey partnership) from 1987 to 2003. Since 2008 he has worked full-time on a varied portfolio of directorship appointments (including with AIM listed companies).

Svante Adde, Independent Nonexecutive Director

Svante Adde studied at the Stockholm School of Economics to take his BA degree in 1979. He joined Citibank in Stockholm that year as an account officer and moved with Citicorp to London in 1983 to work in M&A and corporate finance. Svante joined Lazard Brothers in London in 1989 to head up their Nordic business which he led until 2003 as a managing director/partner. During this period Lazard acquired its Stockholm office for which Svante was the managing director until 2003. Since 2003 he has worked as CFO of Ahlstrom in Helsinki, managing director of Compass Advisers, and from 2007 until 2013 was managing director and a senior adviser of Pöyry Capital.

Mark Rawlins, Independent Nonexecutive Director

Mark Rawlins is a solicitor of the Senior Courts of England and Wales and has an honours degree in Natural Sciences (Theoretical Physics) from Cambridge University. He joined Linklaters in London in 1993 and then moved to Arups (London) in 1997, before transitioning to the practice of off-shore law in 1998 with Maples and Calder, first in London and then in the Caribbean, where he became a group partner in 2005. His legal practice is focused on investment funds. He relocated to Jersey in 2011 and headed the Jersey investment fund practice of Collas Crill from 2011 to 2017. He currently practices as a lawyer with Hatstone Lawyers and acts as a non-executive director in a personal capacity.

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