SOURCE: Amazonas Florestal, Ltd.

Amazonas Florestal, Ltd.

April 23, 2014 11:55 ET

Amazonas Florestal Releases Its Initiatives for 2014 and Going Forward

MIAMI, FL--(Marketwired - Apr 23, 2014) - Amazonas Florestal, Ltd. (www.amazonasf.com) (OTC Pink: AZFL) (PINKSHEETS: AZFL) ("Amazonas" or "Company"), a diversified forest management company generating revenues through innovative, sustainable forest management is pleased to announce today its initiatives for revenue growth, forestry preservation and building shareholder value.

The Company's business model is currently focused on 3 separate business's initiatives; Sustainable forestry & Timber Operations, Biomass Development, Production & Revenue generation from carbon credits

Sustainable Forestry & Timber Operations

In 2013, the Company secured a 200-container order of Hardwood Sleepers from Trackwork Ltd. (www.trackwork.co.uk) ("Trackwork"). Based on 4,000 cubic meters of milled hardwood sleepers that we are required to produce to Trackwork, the Sleepers order provides for an order amount of $2,650,000. The Company completed the first shipment of 10 containers in December 2013 and recognized $122,875 from the initial invoice in January 2014. The product is utilized in the construction of railroad tracks in the United Kingdom.

The Company is transitioning from an asset based forestry preservation company to a cash flow producing company with a focus on responsible sustainable forestry practices. Management will attempt to secure additional orders from other companies and contingent upon adequate financing and acceptable terms will attempt to purchase other timberland in Brazil.

Biomass Development

With increased harvesting the Company is poised to generate significant amounts of biomass (the shavings, treetops and branches that are unsuitable for timber production). The Company's management will attempt to secure access to additional supplies of biomass from other timber companies. Additionally, management will attempt to secure a joint venture to build a wood pellet manufacturing facility based on the Company's biomass supply with the goal of facilitating construction capital and increasing the Company's revenues from its biomass while still making a positive impact on the environment by burning wood instead of fossil fuels.

Production & Revenue Generation from Carbon Credits

By securing timber supply through various options on additional Brazilian forestry, the Company would be in a position to use its 90,146 acres of rainforest land to capitalize on the opportunities in the carbon credit market. A carbon credit represents one ton of carbon dioxide equivalent removed, avoided or sequestered. Assuming a minimum of 380 metric tons of carbon for each hector of our 36,496 hectors, there would be 13,868,480 tones, which is equivalent to 13,868,480 carbon credits. This would permit us to certify these carbon credits subject to carbon studies performed by a certification company that conforms to Kyoto and United Nations protocols. Carbon credits can be generated from various types of projects including:

  • Renewable energy: a switch from fossil fuels to a 'clean' energy e.g. wind and solar energy
  • Forestation and Afforestation: The planting of new trees as trees sequester and store CO2 e.g. forest regeneration
  • Energy efficiency: reducing emissions though an increase in energy efficiency e.g. installation of energy-efficient machinery
  • Methane capture: avoiding methane emissions through capture and burning to create energy e.g. landfill methane capture

Project eligibility for carbon credits depends on whether a project follows one of the Kyoto Protocol's project-based mechanisms or an independent voluntary standard.

Land use, land-use change and forestry (LULUCF) projects focus on natural carbon sinks such as forests and soil. Deforestation, particularly in Brazil, Indonesia and parts of Africa, accounts for about 20% of greenhouse gas emissions. Deforestation can be avoided either by paying directly for forest preservation, or by using offset funds to provide substitutes for forest-based products. There is a class of mechanisms referred to as REDD schemes (Reducing emissions from deforestation and forest degradation), which may be included in a post-Kyoto agreement. REDD credits provide carbon offsets for the protection of forests, and provide a possible mechanism to allow funding from developed nations to assist in the protection of native forests in developing nations.

Acquisition Growth

In addition to the Company's 3 business initiatives, Management will pursue acquisition candidates that will be complementary to the Company's business such as companies in the wood products, biomass and clean energy industries. The Company has hired a financial advisory firm, Mirador Consulting, to perform advisory and introductory services, including to assist the Company in locating potential acquisition candidates.

About Amazonas Florestal

Amazonas Florestal is a diversified forest management company generating revenues through innovative, sustainable management of its large tracts of land in the rainforests of Amazonas, Brazil. Amazonas Florestal's sustainable forest management strategy, with its green philosophy and method of cyclical harvesting, preserves ecosystems through habitat and water resource preservation.

Headquartered in Miami, Florida, Amazonas' goal is to become the leader in sustainable forest management, creating revenue while protecting the biodiversity of the rainforest ecosystem and enhancing the lives of the people who live in it. Through a strategy of selective harvesting, biomass production, and conservation incentives, Amazonas Florestal protects one of the world's greatest natural resources and makes preservation

Forward-Looking Statements

Statements made in this press release that express the Company or management's intentions, plans, beliefs, expectations or predictions of future events, are forward-looking statements. The words "believe," "expect," "intend," "estimate," "anticipate," "will" and similar expressions are intended to further identify such forward-looking statements, although not all forward-looking statements contain these identifying words. Those statements are based on many assumptions and are subject to many known and unknown risks, uncertainties and other factors that could cause the Company's actual activities, results or performance to differ materially from those anticipated or projected in such forward-looking statements. Investors should not place undue reliance on the Company's forward-looking statements. No information contained in this press release should be construed as an indication of the Company's future financial performance, its future stock price or its ability to complete acquisitions. The forward-looking statements contained herein represent the judgment of the Company as of the date of this press release, and the Company expressly disclaims any intent, obligation or undertaking to update or revise such forward-looking statements to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

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