May 17, 2010 — "We are honoured to have reached agreement with the Queensland Government for the rights to manage these important and outstanding forest plantations," said Hancock Timber Resource Group President, Dan Christensen.

"We manage all the forests under our care globally with a long-term, sustainable approach that benefits the environment and the economies where we operate, as well as benefitting all key stakeholders, including employees, neighbours, local communities, associated industries, investors, partners, and customers. In short, we manage much more than trees. We regard good stewardship as good business."

"Hancock Queensland Plantations' investment reflects our long term commitment to Australia, our confidence in the country's economy and in the local forestry industry," Mr. Christensen said.

"We seek to add value to the Queensland Forestry industry through bringing our expertise and sustainability practices."

Hancock Queensland Plantations, a company managed by Hancock Timber Resource Group on behalf of institutional investors, has agreed to acquire Forestry Plantations Queensland (FPQ) after being announced as the winning bidder by The Queensland Government on Tuesday May 18, 2010.

Final settlement of the transaction is expected by the end of June.

Hancock Queensland Plantations has agreed to pay A$603 million for FPQ, whose main asset is a 99-year licence to manage, harvest and re-grow plantation timber on approximately 204,000 hectares of plantation lands.

Under the 99 year licence agreement the Queensland Government retains ownership of the underlying land held under the licence.

All award based employees of FPQ are provided security of tenure for three years with Hancock Queensland Plantations committing to uphold the enterprise bargaining agreement that FPQ reached with its employees and the unions.

All existing awards, previous terms and conditions of employment continue and continuity of service is recognised. For all senior executives and senior officers their existing contracts are being retained.

Hancock Queensland Plantations will seek third party certification for management of the plantations under Forest Stewardship Council (FSC) standards. The lands are already certified under the Australian Forestry Standard and that certification will be maintained.

Hancock Queensland Plantations will be managed by The Hancock Timber Resource Group, a global timberland investment management organisation based in Boston, Massachusetts. Hancock Timber Resource Group manages more than five million acres of timberland in Australia, New Zealand, Canada, Brazil and the United States including 167,000 hectares under the ownership of Hancock Victorian Plantations in Victoria Australia.

All Hancock Timber Resource Group managed forests in Australasia are FSC certified. FSC is an independent, non-governmental, not-for-profit organisation established to promote responsible management of the world's forests.

Hancock Timber Resource Group has strong local relationships through its existing Australian operations and plans to make the ownership transition as seamless as possible. The organisation is impressed with FPQ's operations and has no plans to initiate a major restructure.

Public access to the forests will be protected and existing land use permits and their allocation and operation under the Forestry Act will continue. Fire Management and Operations Plans have already been agreed with the State and Fire Commissioner.

To ensure the State of Queensland's hardwood commitments are met, Hancock Queensland Plantations will continue the State's initiative of establishing 20,000 hectares of eucalypt hardwood plantations. These plantations will be progressively established between now and 2025 so as to be prepared for the expected cessation of native forest logging at that time.

For further information on the Hancock Timber Resource Group refer: www.hancocktimber.com