Silvan Industries, Inc.(fka SLVA)

[dade]

1 hectare = 2.47105381 acres

Wood is the primary raw material used in our operations which we mostly procure from our 2,250 hectares (approximately, 22.5 km 2 of eucalyptus forest eucalyptus tree forest in Guizhou Province and from third party suppliers, on a selective basis, when we can minimize our raw material costs and reduce supply risk by doing so.

Our manufacturing facility in Qianxinan, Guizhou Province has annual production capacity of six million square meters of laminate flooring and 75,000 cubic meters of industrial fiber boards. We are constructing a new manufacturing facility that we expect will increase our overall capacity to 200,000 cubic meters of fiber boards and 12 million square meters of laminate floor. We expect to complete this new facility by mid-2012.

We market our products at five branch offices and eight flagship stores, and through over 500 contracted flooring specialty retail stores that carry and sell our products. We also expect to enter into agreements with large home supply stores to market our products.


We plan to change our name to “China Forestry Industry Group, Inc.” to more accurately reflect our new business operations.