Page 47 - TCL International VILLETA BUSINESS PLAN AND FEASABILITY STUDY

- Regarding to weather conditions, sometimes certain areas are subject to
an early or late rainfall, or with lower or higher than the optimum, with the
result of lower yield of one crop. Since the country produces multiple
crops annually, the farmers recover their losses. The country has seldon
experience a “drought” condition.

- International commodity prices do affect the overall revenue; however,
agricultural plantation area is on the increase disregarding international
prices.

- In reference to income inequality, per the World Bank, reduction in
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poverty in that country was lowered from 11 place to 5 place in Latin
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America between 2011 and 2014.

The facts speak for themselves; import and export related services as well as
transportation and transportation related services are highly recommended
endeavors in the country.

The extensive investigations as to the economic developments in Paraguay and
the region indicated the need for additional logistical facilities of the types
proposed by TCL in the Villeta area. The matter has been the subject of
extensive investigation, this “Business Plan” and the detail independently
commissioned “Villeta Container Terminal Project” study appended hereto.
They all support this conclusion.

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