Aeolus Associated

Aeolus Group Portfolio

Contents 1. 2. 3. 4. 5. 6. Aeolus group Development corporation project portfolio Africas energy sector Aeolus on Africa product portfolio

Aeolus Associated
email: info@aeolusassociated.com page1

Mission
The

Aeolus team is committed to assist the African continent in enhancing the use of its

renewable energy resources by - Funding the development and implementation of financially viable, clean and sustainable RE projects as distributed hybrid supply systems for rural areas. - Transferring know-how in the fields of management, finance and technology. - Strengthening socio-economic development through the creation of job opportunities (local ownership, assembly and production facilities) and by supporting charity projects. These challenges will be met by a team of experts supported by a local partnership structure as well as by a global network of technology and financial Partners. Aeolus strongly believes and trusts in the combination of Economics and Passion.

Africa by night, showing the absence of electricity

Aeolus is committed to develop and fund renewable wind energy projects to Continent and as result to enlarge the energy capacity chain, as it is like wise committed to bring local hybrid systems and distribution for the sustainable development distribution electricity develop the rural and remote areas.

Generating Power Together

Page 2

1. Aeolus Group
Aeolus Associated (AA) was founded as a Dutch based company in 2004 to become active in renewable energy (wind farm) projects. The company is named after the ancient Olympian God in charge of the winds allowing the boats to sail across the Aegean Sea. The name pays tribute to the oldest historically known person to use renewable energy as a natural resource. AA started its activities in the renewable energy sector with wind and solar projects in Greece, Italy and China. Africa became the focal continent subsequent to a reconnaissance visit to Namibia in September 2005. The trip resulted in the 92 MW wind farm, of which the first phase has completed its development.

Objectives
Aeolus is organized to to select and accelerate the development of attractive and bankable SPVs in the renewable energy sector across the African continent, to enlarge the African energy base, to establish Aeolus as a leader in Africas RE sector, and To provide investment opportunities for the financial sector.

Organization
Aeolus Group is based on four specific centers of competence: Aeolus Associated, who offers expertise, technology and finance; Aeolus local Ventures, based on a competent and well organized local Partners structure, offering per Country project initiatives and local networking; Aeolus Africa Development Corporation, (AADC) offering the capability of developing projects and the funding for the development of these projects; An excellent global network of Partners with expertise in development, project auditing and finance. The organization trusts in a small but competent team and in outsourcing to selected consultants and vendors with proven track records in quality standards and experience. As result the Aeolus Groups structure will be lean and can therefore flexibly deal with new challenges and additional projects. AADC represents a small but significant vehicle within the Aeolus Group. In close consensus with AA, and its local and its external partners it channels, activates and accelerates the Feasibility Studies of promising, pre-selected projects.
Aeolus African Development Corporation
- Development funding - Feasibillity study - Sale of projects to SPVs

Aeolus Associated
-Management Company - RE /Finance expertise

Local JV Partners
- Project Identification - Pre-Feasibility Studies -Local networks - SPV start up

External Partners
- Finance/financial closing - Technology - Consultantcy - Project auditing

The company is young and dynamic, yet constructed on a staff with a long expertise and experience in RE technology and project developments. The result is a fast and growing network in Africa, and impressive list of projects under development.

Page 3

. 2.

Development Corporation

The financial world has a serious interest to finance and invest into bankable RE projects; but it has also a natural hesitation to stimulate and contribute to the development phase of such projects. Hence many initiatives and projects get frustrated by lack of resources and get insufficient chance to reach a bankable stage. Aeolus Africa Development Corporation (AADC) was founded in order to overcome this problem, and to accelerate the implementation of economically viable RE projects across the continent by funding the development phase of such projects. AADCs main function is to increase the number of simultaneously development of projects, and to implement them faster and more efficiently than under current market conditions. AADC can be understood as a development vehicle acting in between the energy market and the investment community.

Project development
AA in cooperation with its local Joint Ventures and representatives in SubSahara Africa identify and select project opportunities and subsequently applies to AADC for development funding. AADC will grant funding and resources if the project fundamentals and parameters indicate a probability ratio of over 85% for a future financial closing and a successful completion of the project.

Aeolus Africa Development Corporation

Aeolus local companies Aeolus local companies South Africa, Namibia, Ethiopia, Nigeria, Kenya, Tanzania, etc.

Development
development funding

Aeolus Africa Africa Aeolus Development Corporation development corporation

Project

SPV Initiative Development Equity Debt

2 3 4

Project screening

Generating Power Together

The screening process with well defined filters assists in selecting the attractive project proposals already in an early stage, and efficiently handling the process of project development. It comprises a sequence of activities which guide Aeolus through the selection and the evaluation of projects being offered. The procedure involves four distinct stages during which the information on the project is continuously refined: Assessment of fundamental project data Pre-qualification on basis of 35 parameters Feasibility Study Auditing A proven methodology will be applied, strictly followed and constantly monitored by external auditors in order to reach and keep the highest professional standards. Funding AA has agreements with Dutch FMO for (sub)debt funding and financial lead arrangements. Similar arrangements have been made with equity investors and with the Dutch Government on Carbon Credits. The management of AA has been developing sustainable RE projects in the target region for the past 25 years. It has gathered ample experience in managing and mitigating the associated risk profile, and has demonstrated that projects with commercial returns can be realized. Its clear strategy and the lack of significant investments into RE projects in Africa to-date will allow AADC and its partners to route the first funds for the development of projects with the highest returns.
Page 4

3. Project Portfolio
Projects - predominantly larger wind farms and bio fuels - totalling over 2,700 MW have been initiated in Namibia, South Africa, Kenya, Ethiopia, Tanzania, Nigeria, Djibouti, Somaliland, Sudan, Sierra Leone with new proposals being received at an increasing rate. Wind is the predominant RE resource in the list of 7 projects to be developed in 2008 with a total of 439 MW and an additional 10 projects will start development in 2009. The first phase wind farm of 36 MW of a total project of 92 MW along the Namibian coast and the 30 MW Kinangop in Kenya will reach its construction phase in Q1 2008. All projects have been / will be developed by own financial strength and own development capacity. They have gone through the early development phases, have been screened and realized a bankable feasibility study, followed by a technical auditing. Projects will be implemented and operated under an IPP or hybrid scheme.

Projects and project locations >2750 MW under development 11 Countries

Generating Power Together

The Aeolus logo windmills represent the number and location off planned pf planned wind farms.

Aeolus plans additionally to wind farms: hybrid and distribution systems for rural areas, and bio fuel plantations.

Page 5

4. Consumption and generation

Africas energy sector

With 13.1% of the worlds total population, Africa consumes only 5.5% and generates only 3,1% of the world energy. Its per capita energy consumption is 0.5 TOE compared to the world average of 1.2 TOE. Its generating is mainly based on coal (46%) and fossil fuels, as gas (23%), hydro (18%), oil (11%) and nuclear 2%. In 2002, the continents electricity consumption was only 514 kWh per capita, lowest of all other world regions. Access averages at of 23% for sub-Saharan Africa, however with large disparities between individual countries, and between urban and rural areas. In large parts of Africa 70 80% of the population is without electricity connection. Resources Africas energy resource base is both diverse and relatively abundant, but so far largely untapped. Proven oil, gas and coal reserves as well as hydropower potential are estimated as 9.4%, 7.9%, 5.54% and 13% respectively of the world total. Energy is produced mainly from biomass (47%), oil (24.8%), coal (16.5%), gas (10.4%), and on a limited scale by renewable resources such as hydro, solar and geothermal. Africa has abundant renewable energy resources: high solar irradiation; a strong wind potential, with wind speeds reaching up to 10 m/s; and a potential capacity of well over 10,000 MW. The geothermal potential in East Africas Rift Valley is estimated as 9,000 MW. A well-balanced energy generation mix has not yet been achieved due to a number of development barriers. Renewable energy technologies (RETs) provide environmentally supportive and technically sound options for Africas electricity industry. In most countries they would offset a significant proportion of foreign currency spent for oil imports for power generation. Being modular, they are well suited for meeting decentralized rural energy demand. The relatively low investment levels of the incremental additions make RETs quite attractive for capital-constrained African countries. Additionally, they will maximize the utilization of locally available resources and expertise, and would therefore provide employment opportunities for the locals. The growing interest in RETs is driven primarily by three issues: the continuous increase in oil prices at a time when Africas convertible currency earnings are low due to poor world market prices and decreased volumes of its commodity exports, the difficulties recurrently experienced by most African countries, many of which faced unprecedented power rationing which adversely affect their economies, The global awareness of climate change and its likely impacts is growing. Although the contribution of African countries to global greenhouse emissions is relatively modest, Africa is likely to be disproportionately affected by the impacts of climate change. Of particular concern is the dependence of poor Africans on rain-fed agriculture, which is under threat from unpredictable weather patterns resulting in droughts and severe floods. The global rising interest for Africa, and as result growing financial funding and sponsorships, specifically for (renewable) energy as an important economic engine to accelerate development.

Page 6

5. Aeolus in Africa
AA started in 2005 and built a convincing portfolio of wind and other RE projects in Africa and Southern Europe. As from 2007 it is selling its assets elsewhere, focusing entirely on Africa and creating a strong network of reputed partners in support of its motto:

Generating Power Together

The objective of Aeolus Associated (AA) is to build a lead position on renewable energy in Sub-Sahara Africa with a target of over 2,500 MW of wind capacity and a total investment of 3 billion. Projects involving bio-fuel, landfill, desalination and rural electricity will be concurrently developed. Each successful project will be transferred to its own SPV, with the main criteria being a positive cash flow during an operational period of over 20 years, and an average return of equity on 20%. History in Africa Aeolus has started its Africa project development, by attending the September 2005 SADC conference on energy, organized in Windhoek, Namibia. A network of contacts was developed with the Ministry of Energy and Mines and with the ECB (Electricity Control Board). These contacts have resulted into a viable wind farm project of 92 MW, which project constitutes the largest IPP wind farm development in Sub Sahara Africa. The result could be achieved grace to a careful partner selection. United Africa is a healthy and successful business enterprise in Namibia with an excellent political Aeolus in Africa and business network. The organization - established and organized in Namibia - is a role model for the organization in other African countries, and has resulted in a number of additional power generation projects and renewable energy activities in Namibia.
SIERRA LEONE NIGERIA

SUDAN

DJIBOUTI SOMALILAND

ETHIOPIA

KENYA

AEOLUS COMPANIES

Joint Venture structure Based on the positive Namibian experience AA developed a strategy in which local partnership should not be based on an agent structure, but involves equal partners with a clear and accepted added value from each party: AA and AADC will bring technology, expertise and finance in both development of projects and their subsequent funding The local partner will identify attractive projects and will coordinate local activities and resources.

REPRESENTATIVES + AEOLUS COMPANIES EST IN 2008 AA/AADC

NAMIBIA SOUTH AFRICA

TANZANIA LESHOTO

AA/AADC

Local Partners in JVs have an equal percentage in ownership and cost. Both parties have equal partnership. On basis of this experience and model Aeolus has concluded Joint Ventures with local partners in a growing number of countries such as Namibia, South Africa, Ethiopia, Kenya, and Nigeria. This network will be considerably extended to other countries in 2008. As a good example of its Partner structure, Aeolus and its partner reached a first project in Kenya by acquiring the developed wind farms of Kinangop and Ngong which will ultimately a capacity of 120 MW.
Page 7

7. Product Portfolio Aeolus Associated product expertise AA as system integrator and project developer is closely affiliated with
reputable companies

in the field of renewable energy, notably in wind, solar and bio mass and small hydro technology. We concentrate and focus on three different sides of the renewable spectrum: Grid connected wind farm projects, with machines, rated from 600 KW -2,5 MW for which Aeolus will find turnkey project solutions, including development; development funding, feasibility studies, financial engineering, IPP arrangements, etc. Considering circumstances and conditions Aeolus will be involved in and responsible for the installation and operation of such plants. Bio fuels, as palm oil and jatropha Rural and distributed electrification with Hybrid systems as a sustainable energy solution for rural and non-electrified areas, with a multiple of technology: - Small and medium sized wind diesel hybrids - Solar panels and plants; - 250/500 KW Biomass plants on basis of agro waste; - Medium sized hydro installations; Complete Home Energy solutions with the heat and energy ball, texolite housing, solar geysers, etc. Competence center Aeolus is a developer and system integrator in the RE field. The company maintains excellent contacts with the innovative and qualified industry in wind, solar and biomass energy, hydro technology, and with consultancy expertise. It is interested in large wind parks; and in developing distributed hybrid solutions for the development of rural areas. Solutions include - but are not limited to - cost effective energy supply schemes applying natural resources, with such spin-offs as sustainable housing and building materials provided by local production, effectively bringing economic development. AA is active in developing and financing projects for renewable energy, for which it applies systems specifically tailored to each projects requirements. Although the company itself is young, it works closely with strong partnerships and can rely on a team experienced for over 20 years in virtually all phases of the project development cycle.

Aeolus project selection criteria and solutions are clean energy and profitable
economics.

Generating Power together

Page 8