SIMFONI SPEKTRA SDN BHD (SSSB) 0.

5 MWp SOLAR FARM AT LUKUT INDUSTRIAL ESTATE, KOTA TINGGI, JOHOR MALAYSIA

EXECUTIVE SUMMARY SSSB (Simfoni Spektra Sdn. Bhd) plans to install a 0.5 MWp Solar Farm on a 3 acre (130,700 s.q.f) plot of industrial land at lukut Industrial Estate at Kota Tinggi, Johor Malaysia.The above is targeted at SEDAs in Q2 2013 and its divided into 2 phases with installation of 0.5 MWp PV System for each phase.. Phase 1 also includes land purchase and clearance and is targeted at SEDAs next FiT Quota release in Q2,2013. Phase 2 is designated for SEDAs next FiT Quota release in Q3, 2013. SSSB herein focuses on phase 1s requirement. SSSB is seeking financing for the purchase of land and installation of the above PV System. Revenue from the PV System is generated via the FiT mechanism as mandated by Malaysias Renewble Energy Bill and regulated by SEDA. This revenue stream is secured with a Renewable Energy Power Purchase Aggreement REPPA) between the PV system and utility grid owners over 21- years period at fixed FiT rate, as mandated by the same RE Bill. The income generated from the FiT mechanism is sufficient to finance the cost of land and PV System as well as operation expenses while returning reasonable profit over REPPAs 21-year duration MRES will also utilize KeTTHAs GTFS (Green Technology Financing Scheme) to reduce the loans rate on the PV System by 2 % p.a The PV System will also feature AC Modules with customized Micro-Inverters developed by MRES. The Micro-Inverters are integrated with Multi-Crystalline PV Modules to reduce wastage and maximize energy harvest. SSSB proposed the fund project sum RM 7,448,126 by financing to Malaysian Industrial Development Berhad (MIDF) while returning profit over MIDFs for 15 years duration. Returning of profit for 15 years: MIDF Principal Interest SSSB

RM 7,448,126 RM 3,363,410 RM 976,985

SIMFONI SPEKTRA SDN BHD (SSSB) 0.5 MWp SOLAR FARM AT LUKUT INDUSTRIAL ESTATE, KOTA TINGGI, JOHOR MALAYSIA

FINANCING, REVENUE AND EXPENSES SUMMARY PV System Capacity Total Energy Yield (21 Years) 499.9 kWp (0.5 MWp) 13,574,972 kWh

Total FiT Income (21 Years)

RM 14,538,505

Land Cost Principal (cost of Land less 10% Deposit) Loan Interest (4%) Total Principal & Interest Prepayment PV System Cost / Development cost Principal (system cost less 30 % deposit) Loan Interest (4%) Total Principal & Interest Repayment Total Land Cost & PV System Cost

RM 1,960,200 RM 1,764,180 RM 1,058,505 RM 2,822,685 RM 5,487,926 RM 3,841,545 RM 2,304,915 RM 6,146,460 RM 7,448,126

Profit after Loan Repayment, Operation Expenses Project ROI ( Return On Investment )

RM 4,599,663 15 Years

PV System installation timeline as follow: Conduct PSS & Secure Fit Quota Land clearance procure PV Equipment Q2. 2013 Q2. 2013

Install PV System, T & C (Testing & Commissioning) Q3. 2013 Fit commence Q4. 2013

SIMFONI SPEKTRA SDN BHD (SSSB) 0.5 MWp SOLAR FARM AT LUKUT INDUSTRIAL ESTATE, KOTA TINGGI, JOHOR MALAYSIA

O.5 MWp SOLAR FARM PROPOSAL 1.1 OBJECTIVE To install 0.5 MWp Solar Farm and generate revenue from sale of AC electricity to TNB over 21 years at the following site : Land Size Land Type Location 3 acres 130,680 sq ft Industrial Land Lot PTD 11030 Kawasan Perindustrian Lukut (Lukut Industrial Estate) Kota Tinggi, Johor Malaysia GPS Coordinates 1o 38 32 N x 103o 56 40 E Site Map Refer Appendix 3

To divide into 2 phases with installation of 499,800 Wp ( 0.5 MWp ) PV System for each phase occupying 3 acres. To target securing Phase 1 FiT Quota in Q2 2013, and Phase 2 FiT Quota at its next release 6 months later. The proposal herein focuses on Phase 1.

1.2 PHASE 1 PROJECT STRATEGY Use FiT mechanism secured with a REPPA with TNB to generate revenue over 21 years Use income from FiT to finance cost of land and PV System, operation expenses Take advantage of GTFS to lower loan interest rate on PV System Take advantage of Pioneer Status to avoid tax on FiT income over 10 years. Use AC Modules ( sineGRID Micro-Inverters integrated with Miltu-Crystalline PV Modules) to maximize energy harvest and take advantage of FiT rate structure Use higher wattage PV Modules ( 300W ) to reduce system cost. Clear and prepare land for both phases to take advantage of economies of scale as well as facilitate subsequent implementation of projects next phases.

SIMFONI SPEKTRA SDN BHD (SSSB) 0.5 MWp SOLAR FARM AT LUKUT INDUSTRIAL ESTATE, KOTA TINGGI, JOHOR MALAYSIA

1.3 PV SYSTEM SPECIFICATION SUMMARY PV System Capacity PV Modules PV Inverter Connectivity 499,800 Wp ( 0.5 MWp ) 300 W x 1,667 Mono-Crystalline PV Modules 300 W x 1,667 sineGRID Micro-Inverters Transformers/Switchgears to TNB Sub-Station ( at PTD 11032 ) 27 units sineGRID Comm Hub sineGRID Monitoring System Web Portal

Performance Monitor

1.4 ENERGY YIELD & FIT CONSIDERATIONS As income projections from FiT are based on energy yield, the following energy yield and FiT income projections prudently take the following into consideration : System performance ratio 95% Average daily good sun hours (PSH) at 4.28 hours PV Module annual degradation at 0.8% FiT rates based on 12% degression ( as per SEDAs public forum on 28 Nov 2012 ):
Installed Capacity of Solar PV System Above 72 kWp to 1 MWp Use locally made PV Modules Use locally made PV Inverters Total FiT Rate (RM) Effective Period 21 years 21 years 21 years 2013 FiT (RM/kWh) $ 1.003 $ 0.03 $ 0.01 $ 1.043

1.5 TOTAL ENERGY YIELD & FIT INCOME Energy & FiT Income projections based on the considerations highlighted above as follows: Total Energy Yield (21 years) Average Annual Yield Total FiT Income (21 years) Average Annual Income REPPA Effective Period
15,252,634 kWh 726,316 kWh

RM 14,520,508 RM 691,453 Oct 2013 to Sept 2034 (21 years)

SIMFONI SPEKTRA SDN BHD (SSSB) 0.5 MWp SOLAR FARM AT LUKUT INDUSTRIAL ESTATE, KOTA TINGGI, JOHOR MALAYSIA

Annual breakdown as follows:

S/No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Output (kWh/kWp) 1,560.95 1,560.95 1,548.47 1,536.08 1,523.79 1,511.60 1,499.51 1,487.51 1,475.61 1,463.80 1,452.09 1,440.48 1,428.95 1,417.52 1,406.18 1,394.93 1,383.77 1,372.70 1,361.72 1,350.83 1,340.02 Annual Energy Yield (kWh) 780,164 780,164 773,923 767,732 761,590 755,497 749,453 743,457 737,510 731,610 725,757 719,951 714,191 708,478 702,810 697,187 691,610 686,077 680,588 675,144 669,742 15,252,634 726,316 FiT Rate 2013 (RM) Income FiT (RM) 0.952 0.952 0.952 0.952 0.952 0.952 0.952 0.952 0.952 0.952 0.952 0.952 0.952 0.952 0.952 0.952 0.952 0.952 0.952 0.952 0.952 742,716 742,716 736,775 730,880 725,033 719,233 713,479 707,771 702,109 696,492 690,920 685,393 679,910 674,471 669,075 663,722 658,413 653,145 647,920 642,737 637,595 14,520,508 691,453

Total (21 Years) Average Per Year

SIMFONI SPEKTRA SDN BHD (SSSB) 0.5 MWp SOLAR FARM AT LUKUT INDUSTRIAL ESTATE, KOTA TINGGI, JOHOR MALAYSIA

1.6 PV SYSTEM COST

0.5 MWp MRES ACM PV System 300W Multi-Crystalline AC Modules Comm Hub (Energy Monitoring Sys) Switches & Wireless Repeaters AC Transformer & Switchgear Panel Mount/Structure (Ground Mount) Mechanical & Electrical Installation AC Cable/Trunking & other AC BoS Right-Of-Way Cabling; Transformer Rm Design; Project Management; PE Consultant 1 set 1,666 1 set 1 set 1 set 1 set $ 5,090,783 $ $ $ 357,143 40,000 5,100 Qty 1666 15 RM

Land Clearance; Fencing/; Security; Licenses; Permits; Drainage; M&E Power System Study (PSS) SEDA Application/Processing Fee

Total System Cost Cost Per Watt

$ 5,487,926 $ 10.98

sineGRID Micro-Inverter and sineGRID Comm Hubs at manufacturing cost (exfactory) above exclude cost of land clearance above also exclude cost of Power Suply Study (PSS) and Project Management Fee system standards and requirements are in compliance with: MS 1837 Malaysia Solar PV System standards, and SEDA, TNB and Suruhanjaya Tenaga (ST) Guidelines.

SIMFONI SPEKTRA SDN BHD (SSSB) 0.5 MWp SOLAR FARM AT LUKUT INDUSTRIAL ESTATE, KOTA TINGGI, JOHOR MALAYSIA

1.7 FINANCING & OPERATION COST SUMMARY RM a) Land Financing Cost Cost of Land Less 10% Deposit Loan Amount (at 90% of Land Cost) Interest 4.0% p.a. : Tenure: 15 years Total Interest (Jan 2014 to Dec 2025) Principal and Interest Yearly Repayment b) PV System Financing Cost Cost of PV System Less 30% Deposit Loan Amount (at 70% of PV System Cost) Interest 4.0% p.a. : Tenure: 15 years Total Interest (Jan 2014 to Dec 2025) Principal and Interest Yearly Repayment c) GTFS Rebate (on PV System) 2% Interest Rebate on Loan Principal Tenure : 15 years GTFS Interest Rebate Reduced Interest (after GTFS Rebate) Reduced Loan Principal & Interest (after GTFS Rebate) $ 1,960,200 $ 196,020 $ 1,764,180 $ 1,058,508 $ 2,822,688 $ 188,179

$ 5,487,926 $ 1,646,378 $ 3,841,548 $ 2,304,928 $ 6,146,476 $ 409,675

$ 1,152,464 $ 1,152,464 $ 4,994,012

d) Operation Cost (21Years) Insurance (Fire Risk at 0.08906% sun assured after $ Depreciation Security (at RM 3,000 per month) $ $ Maintenance (at RM 2,000 per month) $ Spare Parts Reserve (at RM10,000 per year from years 6 to 21)

53,726 756,000 504,000 160,000

SIMFONI SPEKTRA SDN BHD (SSSB) 0.5 MWp SOLAR FARM AT LUKUT INDUSTRIAL ESTATE, KOTA TINGGI, JOHOR MALAYSIA

1.10 PROJECT FLOW