AGM Minutes & General Progress Report
3 August 2004

To All Partners

We are pleased to report as follows:

Forest Stand Progress

Pruning of Chimney Creek Stand
Progress on this contract has been quicker than we anticipated, so almost all of the 130 ha compartment planted in 1998 has now had its first lift. Credit for getting this job done promptly and well goes to Dave Fincham of Wrightson Forestry Services, to whom we have delegated local site management. He has engaged, co-ordinated and supervised two good contractors to do this work during a period when it is often hard to get good silvicultural contractors at all.
The average pruned height and the critical DOS (Diameter over Stubbs) is a very satisfactory 3.6 metres and 16.3 cm respectively. Both of these measurements exceed Forestry Plan targets by a wide margin.
This is very pleasing and as with the Partnership's other two forest stands, measurements are confirming better forest performance than originally forecast. On the other hand, cost of pruning has been higher too, although actually by not as much as it might seem. If a calculation of inflation is made we think the pruning costs have only gone up a little since 1996 when they were forecast for this Partnership. It is also probably true that quality of contractors' work has gone up too, so productivity has not declined.

Budget Progress
Because of this progress with pruning the Partnership has run out of money! Hence the enclosed Statement for those of you who have not paid all of this year's dues.
We said early in the year Partners could delay half of this year's contribution until September, but that was too conservative. Sorry.
Could those who have not paid all, do so now if at all possible? If commitments make it impossible do not worry, but for the rest of you please send the Partnership the balance. Thanks.

Kind regards,
Charles Etherington,
Manager
Warren Forestry Ltd

Warren Forestry Ltd, New Zealand forestry investment provider
Warren Forestry Ltd, New Zealand forestry investment providerWarren Forestry Ltd, New Zealand forestry investment providerWarren Forestry Ltd, New Zealand forestry investment provider