Ann: Unaudited Results for the 9 Months Ended 31 March 2016-TFC.AX, page-43

Some comments on the recent buyback:

* My calculations (others please check) indicate that the 66% buyback of the TFS2000 scheme delivers an additional 91 tonnes of heartwood (41.7ha x 3.3t/ha x 0.66) to TFS's previous 180 tonnes for > 50% increase.

* The oil equivalent price markup for these extra 91 tonnes is around 60% from the price TFS is paying MIS growers.

* The fact that TFS only pre-sold the 180tonnes means that TFS can now leave some of this additional forest in the ground to harvest later, growing and increasing oil yields while it does so. This will smooth out the TFS owned harvest quantity over the next four years or so. Additional buybacks of later projects will also assist with this. The increased certainty of oil availability will bring in additional buyers needing certainty before they commit. This should also assist in getting stronger prices for the oil.

Even a 66% buyback success rate is very positive for TFS, in my opinion.