HALF YEARLY MANAGEMENT REPORT for Cremorne Capital Ltd ATF HVT Land Trust January - June 2023

African Mahogany Australia

1.OperationsSummary

Thisreportrelatestothesecondhalfofthe2022-23financialyearandispresentedinaccordancewiththe requirementsoftheManagementAgreement.Itencompassestheperiodfrom1January,2023to30June, 2023.

Themainoperationsperformedduringthereportingperiodincludedfuelreductionburns,jarracrop maintenancespraying,mowingandbaling,continuationofthethinningprogram,grazingandgeneral propertymaintenanceactivities.

MeanDouglasDalyRainfall(1968-2023):

RainfallrecordedintheDouglasDalyforthe2022/23wetseason:

Theearlyonsetofthe2022-23wetseasoninOctoberthroughtoDecember,waspartiallyoffsetbybelow averagefallsinJanuary,February,andMarch.Thetotalannualrainfallwasapproximately130mmabovethe long-termaverageof~1232mm.

Thegoodwetseasonresultedingreatersoil-moisturelevels,whichinturnhasbeenreflectedinbettertree healthandextendedphasesofgrowth.Somelocalisedfloodingnearthepropertywasexperiencedduring thewetseason.

2. AreaStatement

The area of the Whatfor property is 3207 ha. Land use is summarised in table 1 below

Table 1: Land-use summary, Whatfor Station.

2.1 2007AgeClass

As a result of the good wet season, the 2007 age class is generally in good health, with good canopy development and tree vigour. As per previous reports weeds are generally being kept under control through the grazing of ~200 head of cattle that are being maintained at Whatfor.

The Stray Creek/Fleming Road crossing was inundated numerous occasions during the 2022-23 wet season.

*Areas as per the Margules Groome valuation undertaken in June 2021.

2.2 2008AgeClass

Like the 2007 age class, all stands that have had recent intervention have responded well and continue to grow and occupy the site well. Grazing has limited weeds, fire risk and increased nutrient cycling in the plantation.

General plantation health is reasonable to good, with areas established on lighter-sandier soils or with a limited rocky soil profile – exhibiting signs stress. Thinning is required in unthinned stands to improve stand composition, reduce water stress, and accelerate tree growth.

3. OperationalActivities

3.1 Thinning

ThecurrentthinningregimebeingappliedatWhatforaimstoreducestockingatfirstthinningtoapproximately 250-300stems/ha.Thisapproachhasbeenestablishedbyapplyingknowledgegainedfromseveralresearch trialsundertakenbyAMAthroughouttheAfricanmahoganyestateintheDouglas-Daly.

Pre-thinningselectionandmarkingisundertakentoassistinselectionquality–thisisacriticaloperationwhich willdeterminewhichtreeswillgrowontobefinalcroptrees. Thisoperationalsoassistsinincreasingthe speedinwhichmanualfallingcrewscancompletethinninginanygivenarea.

Area of WF3 plantation that has been marked prior to thinning..

Part of WF3 that is being thinned to allow greater space for the stronger healthier individuals.

To date approximately 832 ha of the Whatfor estate has been thinned to the 250-300 stems/ha stocking:

3.2 Hayoperations

It was decided to harvest ~100 ha of the area under jarra on paddock WF1. The crop was harvested in May, producing approximately 450 t. The yield was low (as expected) as the area did not receive fertilizer. The application of selective herbicides against broadleaf weeds has helped to clean the paddock, and it will be monitored for greater investment for the 2023/24 hay season. This year’s hay crop should be sold into the hay market of the next 3-4 months.

Stacking of jarra hay in WF1a.

Jarra hay crop stacked in WF1a.

3.3 Firemanagement

The maintenance of good firebreaks, reduced fuels (through grazing) and early dry season control burns along the vulnerable boundaries surrounding Whatfor have been undertaken by AMA, NT Parks& Wildlife, the Douglas Daly Volunteer Fire Brigade. Such actions assist in the management of wildfires that can occur during the dry season and build-up to the next wet season.

Burning of the road verge by AMA staff in conjunction with the Douglas-Daly Volunteer Fire Brigade

4. OtherActivities

4.1 ESGactivity–January-July2023.

Environment

Fire Mitigation – AMA personnel continue to participate and coordinate with the local volunteer bushfire brigade assisting in the establishment of fire breaks and undertaking fuel reduction burns within the Douglas-Daly region.

Feral animal control – AMA coordinated access to Whatfor Station to registered recreational hunters to assist in feral animal (buffalo, pig and wild dog) control.

Chemical Reduction – MS has been spreading the Calligrapha beetle (Calligrapha pantherine) across the Douglas Daly estate. The beetle is a biological control of the introduced into Northern Australia for the control of Sida spp.

Social

Inter/intra-Industry Collaboration - CO attended the NTOV Forestry Hub strategic planning day.

Inter/intra-Industry Collaboration - CO and MS hosted Patrick Groenhout (Greenwood Strategy) in the Douglas Daly, presenting the African Mahogany estate and identifying steps to further development.

Community Fire Protection - MS met with adjoining property owners to discuss firebreak maintenance in preparation to the 2023 fire season.

Community Volunteering - MS has been re-elected to the Douglas Daly development committee and participated community events (community hall clean-up and maintenance programs).

Inter/intra-Industry Collaboration – CO participated in FWPA and AFPA meetings.

Governance

Business Development – MS attended a Cotton field day in the Douglas-Daly, reviewing current agricultural techniques, market value and future opportunities.

Business Development – CO attended NT Forestry Hub steering committee meeting and strategic planning day. CO was asked to part of the interview panel for the Hub manager.

Business Development – CO and SP accompanied Huntley management in Mareeba (Qld) to review progress of the sawmilling of the Huntley Elderslie AM resource.

Business Development – AMA entered a submission for grant a Federal Govt grant "Accelerate Adoption of Wood Processing Innovation - GO5921" and a further proposal for FWPA funded project to investigate the chemical properties of Khaya bark.

Supplier/Contractor relations – Phillip Johnson (Farmalinx) met with CO to introduce Farmalinx and present the range of herbicides that they currently produce which may be beneficial for forestry activities.

Supplier/Contractor relations – CO and MS have been having ongoing discussions with Thomson Forestry re: 2023 works program.

Business Development – CO and MS met with Pete Johnston to discuss the opportunities for the development of cotton on AMA managed properties in the Douglas Daly and Katherine region.

Business Development – CO participated in the Industry Stakeholder meeting - Biosecurity capacity and capability in Northern Australia, held by NT Gov.

relationsSupplier/Contractor

All Chris Oliver Phillip Johnson (Farmalinx) met with CO to introduce Farmalinx and

maybe bennefical for forestry activities. no Chris Oliver 31/03/2023 yes

3/02/2023

Reduction1/02/2023Chemical

CollaborationIndustryInter/intraDevelopmentBusiness

1/02/2023

DevelopmentBusiness

CollaborationIndustryInter/intraDevelopmentBusiness

RocktearChris Oliver

FLO

CO met with buyers of RT hay to discuss vlumes and pricing 24/02/2023

present the range of herbicides that they currently produce that

on gamba. Mark Standish

MS held various meetings with GS/SC agistee aboit grazing pressure

"Accelerate Adoption of Wood Processing InnovationGO5921". no Chris Oliver31/03/2023 yes

view progress of the sawmilling of the Huntley Elderslie AM 24/01/2023

All Chris Oliver

Douglas Daly, presenting the PTT estate and identifying steps to

further development. yes

resource. no Chris Oliver31/01/2023

for commercialization.

Examination of chemical components in Khaya bark and potential no Chris Oliver 7/04/2023

CO and SP submitted a proposal to the FWPA for funding re:

MentabieChris Oliver

Mentabie Chris Oliver

Chris Oliver

property.

Mentabie.

program, and more specifically the continued re-mapping of 30/03/2023 Water protection DevelopmentBusiness

no Chris

(Murray Watt) and NT Minsiter for Agriculture (Paul Kirby) with no Chris

Oliver7/04/2023

STA

relationsSupplier/Contractor

FLO

CollaborationIndustryInter/intraDevelopmentBusiness

CO attended a dinner with the Federal Minister for Agriculature

to reduce fire risk on Mtb.

MS held various meetings with Mtb agistee about grazing pressure 16/03/2023 RegulatoryGovernment/ All

yes ongoingMark

Standish7/04/2023

RocktearChris Oliver

and supplies.

yes ongoingChris

Oliver7/04/2023

the development of cotton on AMA managed properties in the yes ongoingChris Oliver7/04/2023

CO and MS met with Pete Jonston to discuss the opportunities for

Chris Oliver CO particpated online in the FWPAGRAC meeting

no Chris Oliver 7/04/2023 yes 7/03/2023

Young re: Forest Valuation Queries 7/03/2023

Mentabie Chris Oliver

CO participated online with FM with representatives from Ernst & no Chris Oliver7/04/2023 yes

Chris Oliver Phillip Johnson (Farmalinx) met with CO to introduce Farmalinx andmeetingsnoForum Chris Oliver7/04/2023 1/03/2023Crop performanceSTA

All DevelopmentBusiness All

indications. 1/03/2023

CO met with buyers of RT hay to discuss vlumes and pricing no Chris Oliver31/03/2023 yes

CollaborationIndustryInter/intra-

DevelopmentBusiness PTT

RocktearChris Oliver

Gypsy SpringsMark Standish

on gamba. 3/02/2023 relationsSupplier/Contractor FLO

Oliver

Chris

CO, SP and SH initiated submission for funding under the Chris Oliver31/03/2023 yes

further

development. yes ongoingChris Oliver31/01/2023 1/02/2023 DevelopmentBusiness All Chris

resource.

no

issues.

relationsSuppier/Contractor

the 2023 work program, staffing requirements and operational 3/07/2023 no

roadworks program and future roading program. 11/05/2023

RegulatoryGovernment/ All MultipleChris Oliver

DD community to discuss ongoing issues with road quality, no Chris Oliver3/07/2023 yes

Multiple Chris Oliver

of the SPARQS GIS program interaction11/05/2023Community

CollaborationIndustryInter/intra-

RegulatoryGovernment/ All MultipleChris Oliver

Chris Oliver3/07/2023 yes 9/05/2023TechnologyAll

with Quintis and AMA 24/04/2023

"Imagine a cereer in Northern Forestry" project.no

relationsSuppier/Contractor

All

MultipleChris Oliver

heat stress with take homes to roll out to contractors and brigade 24/04/2023

VolunteeringCommunity

to inspect the Billabong reserve and discuss on-going management 22/04/2023

and Safety

Mark Standish MS atended bushfires NT Captains meeting. Great presentation on 3/07/2023

opportunities. 14/04/2023 Flora and Fauna OtherPTT

Kumbyechants Chris Oliver CO and MS met with Matt Fogarty and Jack Farthing (Territory NRM) ongoingChris Oliver3/07/2023 no

Mark Standish

current agricultural tecnhiques, market vaue and future Mark Standish17/04/2023

development of markets.

the Huntley Elderslie AM resource, classification of grades and yes ongoing Chris Oliver 3/07/2023 no

presentation about AMA operations in 30/05/2023 DevelopmentBusiness

Standish

with old hay bales 20/05/2023 Other CollaborationIndustryInter/intraPTT Stray CreekMark

MS met with CDU students and Lindsey Huntley and giving aDalyno Mark Standish3/07/2023 yes

Douglas

3/07/2023 AprilJune 2023 Fire management and mitigation Community Fire Protection All MultipleMark

services. 30/05/2023 Erosion Control OtherPTT

Kumbyechants Mark Standish Fence of errosion on kumbychants Hayes Creek boundry and fill 3/07/2023

All MultipleMark

Standish

Confrence, Darwin. 26/05/2023 CollaborationIndustryInter/intraTechnologyAll

CO met with Quintis staff to review and discuss the SPARQS GIS

MS and CO attended the Northern Australia Food Futures no Mark Standish3/07/2023 yes

to discuss the proposed Mentabie water licence 22/05/2023 CollaborationIndustryInter/intraOtherAll

Multiple Chris Oliver

reviewing the hub's strategic plan, updates on current projects and yes ongoingChris Oliver3/07/2023 no

CO attended the NTOV Forestry Hub steering committee meeting -

PGP's across the STA, PTT and FLO estate.

performanceAll

April

the estate.

CollaborationIndustryInter/intra-

performancePTT

26/06/2023Crop

CollaborationIndustryInter/intra-

Chris Oliver

Stray Creek Chris Oliver

group.

estate and trial results to an Australian Soil Science conference tour

CO, MS and John McGrath gave an overview of the AM plantation

no

no

no

Chris Oliver30/07/2023

yes

yes

yes

trial works.

meeting with FM was held to discuss initial trial results and on-going

data from the various silvicultural trails across the PTT estate. A

Multiple Chris Oliver CO and MS worked with John McGrath (MFS) to collect 2023 growth

no

capacity and capability in Northern Australia, held by NT Gov.no

CO particpiated in the Industry Stakeholder meetingBiosecurity

Chris Oliver CO particpated online in the AFPA Growers Chamber and

meetingsnoForum

the African Mahogany estate in the Douglas-Daly

yes

yes

Crew thinning WF8a.

Cattle grazing during the wet season at Whatfor.