1. PREFACE Over the past decade the wildlife industry has shown an outstanding rate of growth by more than 27% growth per annum from recorded auctioned sales. This adds to an enormous growth of 240% since 2005 and this exclude private treaty sales which form the majority (+/- 80%) of sales. The total sales of wildlife for breeding purposes thus exceed at least R10bn. Once added the value of R8bn in respect of other wildlife activities such as eco-tourism, hunting, and game viewing and the selling of meat, the contribution of wildlife might well exceed R20bn. These figures are confirmed by a study done by Dr. Flippie Cloete, from the North West University’s Department for Environmental Science and Management. In real terms the production value of Wildlife Ranching represents at least 12% of agriculture’s total value in South Africa. This sustainable growth has outperformed the JSE / ALSI. 2. INTRODUCTION As layout in this document, Bellua Enormis Game Breeders which is deemed as pioneers in the game industry since 1999, has decided to act pro-actively in the marketing and promotion of sustainable growth in the game industry and has therefore implementing an investment platform to give any individual or corporate entity the opportunity to become part of this exiting, fast growing and profitable exotic game industry, regardless of your knowledge or experience in game farming. You will therefore not be burdened with the huge capital layouts and risks as required to acquire land and also expensive developments and legislative regulations to breed with exotic game. We have it all covered and we will look after your investment and manage it for you by utilising our existing infrastructure and experience as gained over the past 16 years to provide you with the best game industry practices and to ensure you a peace of mind investment. 3. OUR BACKGROUND Founder of Bellua Enormis Game Breeders and Investments, Pieter Gouws, and also as the founder of a large International Corporate company has decided to step out as the CEO in 2001 to live out his passion and vision in wildlife to become a well-known and reputable full time game breeder. This was done on sound business principles from his experience in the corporate domain to successfully contribute towards the wildlife and conservation industry. He has successfully increased his initial investment value well beyond any other market trends since he has started his various breeding programs. He has been a model for a lot of start-up breeders and is willing to contribute, influence and support the industry where and when possible. Bellua Enormis Game Breeders and its team are committed and excited about the future of exotic game breeding, they have proven themselves as the “Leading Team”. Today Bellua Enormis has a wide variety of animals and diversifying with different exotic game breeding herds and continue to breed with only the best genetics and also strive to continuously improve the quality and genetic pool of our animals in order to restore our beautiful animals to their previous and rightful status. Bellua Enormis already has a large pool of high profile investors who has put their trust in our investment opportunities. We are committed to nature conservation, passion, sustainability, quality genetics, ethics and growth. 4. Wildlife investment summarised model (Detailed agreement available upon request) • • • • • • • • • • • • • Bellua Enormis has been breeding with exotic game species since 2000. We have selectively build up superior genetics in our breeding herds over the past decade. Bellua Enormis has now created the opportunity for investors to share profits within these breeding herds by purchasing some of these top bred animals from Bellua Enormis. Investor will then from hereon become the 100% owner of the purchased animals, should the entire breeding herd been purchased. The Investor/owner will then enter into a 5 year rental agreement with Bellua Enormis to provide the Investor (now actually the owner) with top quality camps, habitat and related infrastructure as required for the breeding herds at any of our superb developed facilities located in the Waterberg area (+/-2 hour drive from Pretoria) or in the Springbokvlakte area (+/- 1.5 hour drive from Pretoria). Animals will be looked after and superbly bred by our top breeding management teams for a minimum period of 5 calendar years, which can also be extended. 50% split between Investor and Bellua Enormis from all produced calves or lambs within the breeding herds during the investment period as remuneration to accommodate and look after your animals. After 5 years the Investor will have the option to either sell or relocate his initial breeding herd or extend the breeding duration for another 5 years. All operational management, supplementary feeding, tick and parasite control, veterinarian treatment, etc. will be done by Bellua Enormis, thus no further costs or capital outlay required by the Investor which will ensure you a peace of mind investment opportunity. Options are also available whereby the breeding group will be held in a separate company, from where the Investor can buy shares in 20% blocks, according to his preference, and thus be a pro-rata shareholder on ownership based on the number of shares held. Growth distribution will also be shared on the same pro-rata basis. These companies will be governed in accordance to the Company Act. All owners/shareholders will have the opportunity to visit our operations at any time to ascertain that their investment is looked well after, and we also encourage them to visit us. Accommodation will be provided to the owners/shareholders at no cost at any of our lodges during their visits. Bellua Enormis is so confident in our success that we will replace any animal by progeny (at no additional cost to the investor), should there be any mortalities within the first year of the initial purchased animals. Hereby Bellua Enormis is assisting the investor to keep his risks as low as possible. If the owner (investor) wishes to earn interim dividends on his investment, the first sale of progeny can be done after the third calving year. (However for better growth on your initial investment, we advise that all progeny be kept for a longer duration as this will give you the benefit of additional calves from all the previous progeny on an exponential scale.) 5. ECONOMIC REALITIES IN THE WILDLIFE INDUSTRY (An extract from a study done by Ramonde Odendaal - B.Com Honours - as an Agricultural Economist: Senwes) As we all know, the driving force behind any business is to make a profit and earn acceptable return on investment. The positive growth trend in game prices is responsible for more individuals and enterprises to consider investing in exotic and rare game. The income from selling life game on auctions has increased from R52 million to R1 414 million over the past thirteen years. The wildlife industry also contributed +/- R10 billion to the South Africa GDP and is considered as the 5th largest agriculture enterprise. The change in Buffalo prices since 2001 up to 2014 was nearly 2050% and this calculation exclude any income from the hunting industry. Buffalo and Sables remain the higher income generators and most likely the dream of any game farmer. According to statistics provided by PHASA (Professional Hunter’s Association of South Africa), the number of Buffalo and Sables hunted by foreigners in South Africa showed an increase of at least 100% since 2009 and the international hunting income hereby contributed +/- R700 million to the South African economy in 2014 whilst the demand is still growing and higher than the availability. The question might now be asked if it is feasible to farm with game, and the answer is clear that with the right species, management and marketing, game farming is an enterprise with high value expectations for the future. Great opportunities still needs to be explored in many countries around the globe, as in the past the majority of the traditional marketing campaigns for the foreign eco-tourism and trophy hunters were mainly focused on the USA and Europe markets. Sable & Buffalo vs. JSE ALSI (Johan Rabie – 2012) (Johan Rabi – 2012) 6. OUR GENETICS Selection is the most powerful tool in any breeder’s hand. With selection it is possible to change any trait or characteristic as long as it has genetic variation and is heritable. The breeder can thus create variation and better breeds by using good selection methods. This means that genomic information is combined with breeding values to obtain a more accurate genetic evaluation and to prevent inbreeding at all cost in order to maintain genetic diversity and to ensure future genetic progress as well as viable, fit and fertile offspring that is adapted to a changing environment. Bellua Enormis therefore strive to only obtain the best possible genetics from reputable sellers with a good track record and quality animals. A top quality bull with good horn size and well developed body size and posture adds great value to the offspring and is playing a major role in improving the quality and value of the animals and adds to shifting the median of horn sizes as shown below. (Graph as proved by Richard York) 7. MANAGEMENT AND BREEDING PRACTISES As wildlife in South Africa are now mostly confined to fenced parks, game reserves and game ranches, the challenge to sustain them requires good management and breeding practices in order to reduce the negative impact of inbreeding, overutilization of food and water resources causing long term damages to the natural habitat and spreading of diseases. Bellua Enormis’s staff therefore prides themselves to use best practice management processes and continuously endeavour to better themselves in order to cover the entire spectrum of requirements required to operate a successful game ranch. 7.1 FENCES AND BIOSECURITY. When legal ownership rights of game animals was recognized in the early 1990s, all wild animals acquired a value and became assets that as a result are managed more closely. This young industry learned us during intensification of the ranching methods that we know little about the diseases that can afflict our game animals and we are still learning day by day. As part of our efforts to improve our biosecurity strategy against brucellosis and tuberculosis to only mention a few that can destroy our entire Buffalo herd for instance, Bellua Enormis has therefore decided to implement a dual game fence system from where a 200m buffer zone exist between our outside fences and the neighbouring farm’s perimeters in order to prevent any direct contact to other animals which their disease status is unknown. We also implemented internal buffer zones, where we have camping systems for our scarce and exotic game breeding projects, in order to prevent direct contact between the various species to further enhance the health of our animals and for better biosecurity. 7.2 FEEDING AND NUTRITION In natural systems, game species have the capacity to survive harsh and variable environmental conditions by migrating from one area to another, thereby finding forage of a high nutritional quality to meet their requirements for growth and reproduction. In modern times the natural migration have to a large extend been fenced off and preventing them to move to areas where the forage would be better. By fencing animals into confined areas, now putting the responsibility of supplying animals with adequate and good quality food on the shoulders of the game farmer. It is therefore important that the game farmer understand what is needed for optimal production and reproduction to supply to the animals. Bellua Enormis has therefore spent a lot of time and effort to provide animals with the best quality and quantity of food and we also work closely with experts in wildlife nutrition and with various reputable manufacturers and suppliers specialising in optimizing game food nutritional ingredients and supplementary feeds for the different seasons and requirements by the animals during their reproduction cycles. 7.3 MANAGEMENT OF PREDATORS This is where Bellua Enormis has invented an innovative predator proof camp system to minimize the risk of predators entering our camps and where we have an excellent track record of managing predation. Our new state of the art camp system has a double fence technology right around our camps. Proper electric fencing was erected to minimize the risk of any predators entering our camps. Our fence exceeds the standard requirements set out by the Dept. of Nature conservation by far. All our camp fencing consist of a minimum of 30 wires (Dept. only requires 21 wires), with 114mm post every 50 meters and our droppers spacing less than 125cm apart. All our fencing reaches 2.4m in height. We as conservationists are well aware that it is necessary to have predator activity within your farm, this contributes towards the natural habitat game experience whilst being in the wild. We therefore manage predation as well as possible. Our low mortality rate due to predation are some of the lowest in the country due to proper management and experience. Daily perimeter inspections and monitoring are part of our daily management duties. 7.4 DNA TESTING, IDENTIFICATION AND RECORD KEEPING Most definitely one of the most important duties of a reputable and responsible breeder. DNA testing, identification and record keeping are the tools to ensure that all herds can be measured. We at Bellua Enormis ensures that all animals are darted by our veterinarian where all of the below procedures are followed: DNA samples, this is done via blood and hair samples and sent to a laboratory for testing and record keeping. We also make a copy available to all our clients. Identification, to ensure that all our animals are properly identifiable we install microchips and tag all animals with ear tags. We have different colours and codes on our ear tags which can give us all the needed information about all animals. Ear tags are then recorded together with the correct microchip number and DNA samples. These are done to ensure that Bellua Enormis and the investor know their animals and can measure and manage their asset. All animal records are safely stored by Bellua Enormis and a copy will be handed over to the investor.All of the above is crucial when building up the history and origin of each individual animal. WHAT BELLUA ENORMIS OFFERS: Superior Quality animals. State of the art predator proof breeding camps. Fresh water distribution and nutritional feeding daily. All needed breeding infrastructure and facilities. Top Day to Day management and evaluation by knowledgeable and experienced staff. Accurate DNA testing, Identification and record keeping per animal. High reproductive rate. Monthly/Quarterly/Yearly detailed report on animal’s status and performance. Access to possible buyers and sellers. Access to one of the best wildlife marketing agents and photographers. Access to reputable auctioneers. (Bellua Enormis will assist/manage where needed.) Strategic assistance. Variety of packages available. Well known and highly experienced Veterinary services. Bellua Enornmis will cover 50% of all Veterinary costs which might occur to the core breeding group. (weaning and other specific owner requirements excluded) To reduce risk, Bellua Enormis are so confident that they will replace an animal by progeny (at no additional cost to the investor), should there be any mortalities within the first year of the initial purchased animals. Bellua Enormis agrees to have first option to purchase animals from investor / buyer whenever animals are ready to be sold as we believe in what we breed. BENEFITS FOR THE INVESTOR: Access to purchase to quality animals. Investor will remain 100% ownership of purchased animals. Tailor made packages to fit the investor/buyer requirements. Investment increases based on animal price growth and reproduction of herd per year. Monthly/Quarterly/Yearly detailed report on animal’s status and performance. Access to possible buyers and sellers. Access to one of the best wildlife marketing agents and photographers. Access to reputable auctioneers. (Bellua Enormis will assist/manage where needed.) Strategic assistance. Buyer can view Investment on farm during the 5 year period at no additional cost. (Reservations to be made well in advance) No operational management and expenses, land, staff or expertise required .Bellua Enormis management team will manage it for you. Free insurance ( whereby progeny replacing mortalities) for one year on initial breeding herd.