Montara Continental

Agriculture and Energy Commodities in East Africa

Obtala Resources retains a majority shareholding in a energy commodities focused subsidiary company. This investment creates a new division and profit centre for Obtala. Obtala's investment also represents the largest Shareholding in Tanzanian renewable energy source farming opportunity. The Group plans to participate in sugarcane and groundnut farming and forestry concessions in East Africa. The investment also provides the opportunity enter into coal exploration within southern Tanzania.

Objectives and strategy

Obtala plans to develop a self-sustainable and profitable agricultural & forestry enterprise which engages and supports the local community. Over the next five  years Montara plans to grow to become  a field leader in East Africa, while building a new carbon sequestration company. Longer term the Company plans to advance alternative energy crops and food crops in East Africa and develop this market, and enter into active processing operations.

Start small in Tanzania & Mozambique and then expand from this platform, based on the knowledge and experience gained, within these countries and into neighbouring states by implementing similar projects, bringing benefits to both Montara and the local communities.

Opportunity

• Cash generative business
• Low upfront capex
• Positive revenue stream after short time period
• Strong government support
• Well established local business partners
• Huge potential to centralise through processing operations
• Value upgrading with by-product utilisation
• Socially responsible investment opportunity

Groundnuts

• Groundnut oil
• Protein rich food source (& vitamins) - Groundnut paste an important source of calories for small children
• Bio-mass cattle feed 
• Nitrogen (60kg/Ha) back into soils

Sugarcane

• Sugar
• Molasses     Ethyl alcohol, citric acid, rum, MSG, yeast, animal feed
• Bagesse      Fuel -electricity, charcoal briquettes, food containers, particle board,   paper, furfural  (solvent used in oil refining), methane

Blackwood

• Currently up to US$25k/m3
• Valuable timber in international trade
• Existing stands provide instant cash flow 
• Grows in poor quality soils
• 1:2 harvesting to planting ratio will create carbon credits

East Africa

Agricultural, Forestry and Energy Target Area

• Increase land holding and partnership base
• Expand into neighbouring countries
• Expand to trading
• Establishing processing operations (e.g. flour mills)
• Provide market access and improve sustainable farming practices for local farmers
• Introduce Carbon Credit concepts
• Acquisition and investment into operational projects

Licence	Holder	Interest	Status	Surface Area	Licence Expiry
Manda North PLR 5080/2008	Montara Continental Ltd	100%	Prospecting- Reconnaissance	188.09km2	17 July 2010 (renewable)
Kate1 PLR 5180/2008	Montara Continental Ltd	100%	Prospecting- Reconnaissance	240.20km2	17 July 2010 (renewable)
Kate 2 PL 5285/2008	Montara Continental Ltd	100%	Prospecting	123.88km2	17 July 2010 (renewable)
Kate 3 PL 5286/2008	Montara Continental Ltd	100%	Prospecting	94.85km2	17 July 2010 (renewable)