Feb03 CEO Elaborates on Oceanfront Land Project

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Elaboration on the Oceanfront Land

Location of Oceanfront Land Development *

Below is an image showing the location of the oceanfront land. The link provided is for a Google Earth view. The main body of the land is situated from the very large mouth of the dry river bed and is in the shape of a "tophat," as it spans the coast in this area and becomes narrower inland from the coast. The piece of land that was added most recently, prior to the purchase, extends northward along the coast, giving the total 7,5 km (4.7 miles) of ocean front for the total land.

Plan For Initial Market Introduction Offer

We have already had interest from numerous parties for having an early choice of lots in the development, even before the master plan has been completed.

We plan to select an initial small part of the land which will be the first phase of the development, to be completed with all infrastructure, i.e. water, sewage, tarmacked roads, street lighting, etc. This first phase will then serve as a reference for the rest of the development.

With this first phase, we plan to accept “reservations” for A (premium), B & C lots, for example, to early buyers to be able to make final selection of their property locations once the master plan has been completed.

The offer for these early reservations will come under the most attractive terms.

We are currently considering lot sizes from A1 ocean front line lots of 2,000 sqm (1/2 acre); ‘B’ & ‘C’ lots being between 1,500 sqm (3/8 acre) and 1,350 sqm (1/3 acre).

We hope to be able to accommodate the growing interest in early reservations already within the month of March. This is of course before we will have a master plan, and obviously before there will even be permits issued. We will be providing updates and more detailed information over the coming weeks.

Some initial ideas that will be developed further and released to describe the development:
Land plan drawing that will show the precise boundaries
Will be totally “green”
Gated community
We are looking at moving the public road that currently runs through the property (etc.)

Oceanfront Land Purchase Details

ProGreen and our JV partner, Contel, through our subsidiary Procon Baja JV (51% ProGreen US, 49% Contel) have acquired the oceanfront property as described in the 8K filing and yesterday’s press release. We have a binding, legal purchase agreement, and we now own the oceanfront land. A detailed plan of the property is being drawn at the present, which will be a part of the public deeds, to be signed within 60 days of the agreement, which is when the property will become registered in the public property registry in the name of Procon. Details of the purchase will be released thereafter.

We expect that this process should be completed by early March, but it may progress much faster. I must say that, due to the relationships that the company has developed and the resources that we’ve gained access to over the past year, our dealings in Baja have gone surprisingly smooth and generally faster than I originally expected.

* The information given within is based on our estimates as far as we know right now, as the final land map has not been completed with the corresponding coordinates.

Link to Google Earth view of the oceanfront land (must copy/paste into browser):

https://www.google.com/maps/@29.897285,-115.6...!1e3?hl=en

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