15 October 2009

 Phaunos Timber Fund Limited ("Phaunos" or the

"Company"), the Authorised Closed-ended investment scheme managed

by FourWinds Capital Management ("FourWinds") established to invest

in timberland and timber related assets on a global basis, announces that

it has subscribed for additional shares in Green Resources AS ("Green

Resources") for NOK 30 million (US$ 5.41 million).

Phaunos has been a minority shareholder in Green Resources since

December 2008. In December 2008, as part of its initial investment,

Phaunos committed to subscribe a further total of NOK 75 million

(US$13.64 million) for shares in Green Resources by November 2009.

Since December 2008, Phaunos has also made additional share

acquisitions (which do not form part of the commitment to subscribe by

November 2009) and loans to Green Resources. Today's subscription

represents 40 per cent of the committed amount of NOK 75 million and

increases Phaunos' total investment to date in Green Resources to

approximately NOK 234million (approximately US$42 million) in loans

and share acquisitions. Phaunos will subscribe NOK 45 million

(approximately US$8.12 million) for the remaining 60 per cent of the

initial committed amount on 30 November 2009, at which point a

further announcement will be made.

Green Resources manages over 14,300 hectares of timberland in East

Africa, including forests in Tanzania, Uganda and Mozambique. Green

Resources' industrial operation, Sao Hill Industries (SHI), is East

Africa's largest sawmill and one of the largest transmission pole

producers in the region.

Mason Browne, FourWinds' Global Director of Investments and

Acquisitions, said "We are pleased to increase our ownership in Green

Resources. We believe Green Resources is a forestry company that

excels at plantation management, industrial operations and market

development".