Introduction
Company Forest Policy

"converting environmental conditions into wood products, using smart management strategies to create sustainable growth and shareholder value"

Forest Management Objectives
The purpose of the management objectives is to provide a framework to achieve Evergreen's forest policy.

The long-term objectives of Evergreen Forests Limited are to:

" Maximise shareholder return by using best management practices to manage the forest resource on a long-term sustainable basis.
" Retain harvesting flexibility to take advantage of favourable market conditions.
" Protect areas of non-production forest for the enhancement of indigenous biodiversity within the forest estate.
" Consult with and maintain proactive relationships with local communities.

Evergreen is dependant on the productivity of the land and the management of biological resources therefore the state of the environment is critical to Evergreen's ongoing business activities. As a responsible forest owner Evergreen is committed to achieving the forest management criteria of the Forest Stewardship Council (FSC) to ensure that it's forests are being managed on a sustainable basis. As part of the certification process, Evergreen's forestry operations will be audited annually by an independent third party to verify its forests are being well managed. Details on the Principles and Criteria required for FSC certification can be found on the FSC website: www.fscoax.org.

Professional forest managers are contracted to manage operations within Evergreen's estate. These forest managers have significant local knowledge and are responsible for letting operational contracts, which include environmental controls. These controls enable the achievement of Evergreen's overall environmental objectives. The relationships between the parties involved in managing the forest are shown in the following diagram.