GLOBAL FORESTRY SERVICES INC.

Registered Office : Palm Grove House, P.O. Box 438, Road Town, Tortola, British Virgin Islands. Contact Address : 31-9-1, Bangsar Heights, Jalan Kaloi, 59100 Kuala Lumpur, Malaysia.

Telephone : +603 2201 9003 Fax : +603 2283 5070 Email : gfs@gfsinc.biz Website : www.gfsinc.biz

WOOD TRACKING PROGRAM

Document Control Doc #: WTP 006 Title: Assessment Report Issue: 09 Date: 2 Sep 2013

Chain of Custody Checklist & Assessment Report

Organization Lamitech Sdn. Bhd. Reference # G137-004 Contact Person

Mr. Vittorio Paolo Mazzon (Managing Director) Mr. James Wong (COO & COC MR)

Proposal # MYP13-541

Office Address 57KM, Jalan Beaufort – Kimanis Assessment Date 24 Oct 2013

Sawmill Address

P.O.Box 338, 89608 Papar, Sabah, Malaysia.

Date of Report 28 Oct 2013

Telephone +6088 912 382 / 913 382 Lead Assessor Jessie Ooi

Fax +6088 916 381 Assessor -

Email info@lamitech.com.my mazzon@lamitech.com.my james_wong@lamitech.com.my

Approved By Dr. Kevin Grace

Statement of Participation GFS WTP # GFS 030 WTP Issuance Date 12 October 2012 Expiration Date 11 October 2017 Scope of Assessment Company Type Sawmill and moulding Scope of Assessment Lamitech Sdn. Bhd. (office and processing mill) Product Group Solid wood Products (sawn timber, mouldings, windows and door frames)

Source of Material VLO & VLC areas – Sabah, Malaysia. Species Red Seraya (Shorea roxburg and Shorea rubirosa) – Shorea [312] Limitations of Assessment The information presented in this report is based on documentation and other information presented by the client and observations made during the field verification under the assessment. GFS reporting of information presented by the client are taken as accurate, unless evaluated differently through the observations made during the assessment. All information presented in the report is accurate and complete to the best of knowledge of GFS.

GLOBAL FORESTRY SERVICES INC.

Registered Office : Palm Grove House, P.O. Box 438, Road Town, Tortola, British Virgin Islands. Contact Address : 31-9-1, Bangsar Heights, Jalan Kaloi, 59100 Kuala Lumpur, Malaysia.

Telephone : +603 2201 9003 Fax : +603 2283 5070 Email : gfs@gfsinc.biz Website : www.gfsinc.biz

WOOD TRACKING PROGRAM

Document Control Doc #: WTP 006 Title: Assessment Report Issue: 09 Date: 2 Sep 2013

Background Information: Lamitech Sdn. Bhd. (Lamitech) is a registered company in Sabah, Malaysia with business registration # 734124-T. Lamitech has intended to obtain Verified Legal Origin (VLO) for the products produced and traded. This exercise involves office and factory based in Kimanis, Sabah. Associated organizations: Lamitech is associated to a wood trading company named Wood Asia (S) Pte. Ltd. Wood Asia purchases finished products from Lamitech and sold to EU. Information of Wood Asia as below: Wood Asia (S) Pte. Ltd. 24 Peck Seah Street #02-09, Nehsons Building, Singapore 079314. Tel: + 65 6227 1248 / 1245 Fax: +65 6227 1201 Email: info@woodasia.com.sg Website: http://www.woodasia.com.sg Lamitech does not utilize subcontractors to provide or manufacture products. Description of the Supply Chain: From April to October 2013, Lamitech purchased raw material (logs) from contractors logging at forest license areas belonging to Yayasan Sabah, under the license numbers SFMLA 09/97 and SFMLA 02/2012, and Form IIB license area located at Kg. Kaiduan, Papar, Sabah, Malaysia. Common species used are Red Seraya groups [Dark Red Seraya, Obah Suluk, Red Seraya, Golden Powder] – Shorea spp [312]. Sales markets include Singapore and EU. Highlights of Assessment Documented Policy & Procedures Lamitech has a formal signed policy dated 20th September 2012, which the company shall comply with legal requirements and support environmental protection (CITIES), purchase responsibly of legal source raw material & products and also support Sustainable Forest Management. Lamitech has a formal chain of custody (COC) procedures for VLO products that include Purchasing, Receiving, Production Control, Sales and Administration. Organization & Training Lamitech COC MR has conducted an internal training with production staff on 17 June 2013 and it was observed that Lamitech staff understood the COC procedures.

GLOBAL FORESTRY SERVICES INC.

Registered Office : Palm Grove House, P.O. Box 438, Road Town, Tortola, British Virgin Islands. Contact Address : 31-9-1, Bangsar Heights, Jalan Kaloi, 59100 Kuala Lumpur, Malaysia.

Telephone : +603 2201 9003 Fax : +603 2283 5070 Email : gfs@gfsinc.biz Website : www.gfsinc.biz

WOOD TRACKING PROGRAM

Document Control Doc #: WTP 006 Title: Assessment Report Issue: 09 Date: 2 Sep 2013

Purchasing & Receiving All raw material purchased by Lamitech are in accordance to the purchasing procedure. Lamitech has conducted Supplier Risk Assessment for all VLO log purchased in Sabah, Malaysia. From March to October 2013, Lamitech has added a new VLO log supplier in their supply chain and the referred supplier logs are from Form IIB license area. All associated documents such as SFD Timber Disposal Permits, Removal Passes, and Royalty Payment Receipts are maintained. VLO logs supplied to Lamitech have been audited under Sabah TLAS standard and approved supplier risk assessment. Planning & Process Controls Lamitech is using a production unit system (batch number) for production planning (i.e. sawmill VLO batch S6-VLO 02/13, and moulding mill M4-VLO 01/13). Each batch number is identified on the product and each standard form used. Batch number is consistently marked at the VLO moulding production (Work in progress materials) as well as stock in the warehouse area. During the surveillance visit, it was observed that Lamitech has cleared their old stocks, which has been verified legal during the baseline assessment. For example, the batch # (or lot #) used for these stocks are identified with codes such as ATP, ALI, TOS or PMS. Currently, there are no non – VLO or old stocks in the production site. All existing Work in Progress (WIP) and finished good stocks are produced this year and are identified with the current production unit system. Sales Lamitech has a formal procedure for sales of VLO products. Lamitech uses its Product Declaration Form for all exported moulded products. Records & Data Monthly records and data for purchased raw material, allocation of logs to sawmill for sawn timber, allocation of sawn timber to moulding, and total finished goods, and sales of products are maintained and available upon document review. Legal Requirements Lamitech maintains permits for all their wood processing and export activities. There was no evidence of non-compliance to legal requirements. Non-Conformance: (GAPs)

GAP # Type Checklist # Description Not applicable

GLOBAL FORESTRY SERVICES INC.

Registered Office : Palm Grove House, P.O. Box 438, Road Town, Tortola, British Virgin Islands. Contact Address : 31-9-1, Bangsar Heights, Jalan Kaloi, 59100 Kuala Lumpur, Malaysia.

Telephone : +603 2201 9003 Fax : +603 2283 5070 Email : gfs@gfsinc.biz Website : www.gfsinc.biz

WOOD TRACKING PROGRAM

Document Control Doc #: WTP 006 Title: Assessment Report Issue: 09 Date: 2 Sep 2013

Highlights of Close out visit (if applicable) Date Not applicable Recommendations Lamitech is recommended for the continuation of the Statement of Participation (GFS 030 WTP) as the company has demonstrated continual compliance with the GFS Wood Tracking Program requirements. The next surveillance visit is scheduled for April 2014.

End of Summary Report