3. Nature of Business

Pato Chemical Industry Plc. was established on 6 October 1973 to import,
formulate, and distribute pesticide in Thailand. Its initial registered
capital was 1 million baht with 1,000 ordinary shares at par value of
1,000 baht per share. PATO CHEMICAL INDUSTRY PUBLIC COMPANY LIMITED in
October 1993 then continued to sell its ordinary stocks for 3,000,000
shares at Bt 55 per share, valued at Baht 10 per share in July 1995,
PATO increased its capital to Baht 140 million. The company has been
listed in the Stock Exchange of Thailand in August 1995.

In 2009 Resolution of shareholders’ meeting approved share split from 10
baht per share to 1 baht per share. The ordinary shares of the company
are then 140,000,000 shares.

In 2010 Sojitz Corporation, major shareholders from Japan divested its
total stake in PATO

(1) Major Changes and Development

+-----------+---+--------------------------------------------------------+
| April     | : | 2011 Annual General Meeting of Shareholders where the  |
| 2011      |   | meeting appointed                                      |
|           | : |                                                        |
| August    |   | Mr. Pradit Rodloytook Registration No. 218 or Ms.      |
| 2011      | : | Nongram Laoha-areedilok Registration No. 4334 from AST |
|           |   | Master Co.,Ltd to be the Company’s auditor for 2011.   |
| November  | : |                                                        |
| 2011      |   | Dividend payment for the 2010 performance at 1.20 baht |
|           | : | per share.                                             |
| December  |   |                                                        |
| 2011      | : | The effective of Hazardous Substances Act (3^(rd)      |
|           |   | Issue) B.E 2551 of the Ministry of Agriculture and     |
| January   | : | Cooperatives on the registration of hazardous resulted |
| 2012      |   | in the expiration of all available registrations of    |
|           |   | the company, however, the company is permitted to      |
| March     |   | possess and sell finished products for two more years. |
| 2012      |   | The company has submitted new registration of all our  |
|           |   | new products accordingly.                              |
|           |   |                                                        |
|           |   | The board of director has approved to invest for a 100 |
|           |   | % stake in a new company “Pato Crop Care Co.,Ltd.” The |
|           |   | registered capital is 5 million baht for 10 million    |
|           |   | ordinary shares with the par value of 5 baht per       |
|           |   | share. The new company will empower registration       |
|           |   | capability to be importer, manufacturer and            |
|           |   | distributor under the new Hazardous Substance Act.     |
|           |   | (No.3) B.E. 2551                                       |
|           |   |                                                        |
|           |   | Pato received SET Awards for Outstanding Company       |
|           |   | Performance 2011.                                      |
|           |   |                                                        |
|           |   | Pato transferred ownership of the land and buildings   |
|           |   | at Minburi old factory as per                          |
|           |   |                                                        |
|           |   | purchase agreement dated June 10, 2011 at the price pf |
|           |   | 65 million baht to the buyer on January 12, 2012.      |
|           |   |                                                        |
|           |   | The Department of Agriculture has gradually approved   |
|           |   | registrations for the products of the company.         |
+-----------+---+--------------------------------------------------------+

Development of major shareholders from 31 December 2009 – 30 December
2011

[TABLE]

(2) Pato Chemical Industry Public Company Limited

The company is the importer, formulator, and distributor of pesticide.

Major Type of Imports

1. Technical Grade (TG): is a concentrated chemicals which are used in
formulations to produce final products according to the specified
formulas

2. Finished Product (FP): is the product ready for use. Most of the
imported FD is in liquid and solid form in bulk sizes. Therefore,
repackaging is needed before distribution.

About 80% of the company's imported products are TG for formulation at
the factory before distribution resulted in lower cost of raw material
as compared with other competitors who import finished product for
repackaging. TG has longer shelf-life than FP and can be formulated
according to the requirements which is more suitable for the
environment. Chemical pesticide in the market can be in many forms e.g.
liquid, power, and granule for safety in moving and storing. In the
production process, there are 2 main ingredients in chemical pesticide;
active and inert ingredients. “Active Ingredients” are chemical
substance called by its chemical names for different uses of purposes.
“Inert Ingredients” are substance to combine with the active chemical to
make it in the forms suitable for different types for uses such as
solvents, carriers, surfactants, emulsifiers, or any other substance
which are added for special purpose called “Special Additives”.

Pato Crop Care Co., Ltd.

The company is the importer, formulator, and distributor of pesticide
under Global logo Pato Crop Care.

Major Type of Imports are :

1. Technical Grade (TG) which is a concentrated chemicals which are used
in formulations to produce final products according to the specified
formulas.

2. Finished Product (FP)

Production plant is located in Bangpoo Industrial Estate. Pato Crop Care
rents building and machinery of Building no. 5 and 6 of Pato Chemical
Industry Plc. to use as office, formulating plant and warehouse. Annual
capacity will be 16,500 Mts. for granule pesticide, 3,300 Mts. for
liquid pesticide, and 1,650 Mts. for powder pesticide. Pato Crop Care is
currently in the process of filing the documents for registration to the
Department of Agriculture, therefore there was no business operation as
of December 31, 2011.

Shareholders’ Structure

a) Trillit Asia Mineral Processing Co.,Ltd.

  b) Pojanalai

c) Wesaratchawest

d) Choengwiwatkit

a) 35.79% a) 39.30% a) -

b) 11.79% b) 12.70% b) 94 %

c) 6.23% c) 19.60% c) -

d) 6.51% d) 15.70% d) -

60.32% 87.30% 94%

Pato Chemical Industry Plc Kentex Properties Co.,Ltd

Registered Capital Baht 140 Million (Office Space Rental)

100%

Pato Crop Care Co.,Ltd.

Registered Capital Baht 5 Million Baht Connected transaction - office
space rental

(3) Revenue Structure

+-------------------+------+------+-----+----+-----+---+-----+----+
|                   | Oper | Pe   | 2   |    | 2   |   | 2   |    |
|                   | ated | rcen | 009 |    | 010 |   | 011 |    |
|                   |      | tage |     |    |     |   |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
|                   |      | Of   | Mil | %  | Mil | % | Mil | %  |
|                   |      | Sh   | B   |    | B   |   | B   |    |
|                   |      | ares | aht |    | aht |   | aht |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Local Sales by    |      |      |     |    |     |   |     |    |
| Products          |      |      |     |    |     |   |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Product Line 1    | PATO |      |     |    |     |   |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Insecticide       |      |      | 322 | 3  | 458 | 5 | 349 | 3  |
|                   |      |      | .07 | 7. | .85 | 0 | .93 | 6. |
|                   |      |      |     | 50 |     | . |     | 37 |
|                   |      |      |     |    |     | 6 |     |    |
|                   |      |      |     |    |     | 4 |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Herbicide         |      |      | 365 | 4  | 306 | 3 | 455 | 4  |
|                   |      |      | .56 | 2. | .94 | 3 | .20 | 7. |
|                   |      |      |     | 57 |     | . |     | 31 |
|                   |      |      |     |    |     | 8 |     |    |
|                   |      |      |     |    |     | 7 |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Fungicide         |      |      | 103 | 1  | 88  | 9 | 97  | 1  |
|                   |      |      | .44 | 2. | .11 | . | .11 | 0. |
|                   |      |      |     | 04 |     | 7 |     | 09 |
|                   |      |      |     |    |     | 2 |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Acaricide         |      |      | 21  | 2. | 20  | 2 | 22  | 2. |
|                   |      |      | .51 | 51 | .64 | . | .00 | 28 |
|                   |      |      |     |    |     | 2 |     |    |
|                   |      |      |     |    |     | 8 |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Other             |      |      | 46  | 5. | 31  | 3 | 37  | 3. |
|                   |      |      | .21 | 38 | .65 | . | .99 | 95 |
|                   |      |      |     |    |     | 4 |     |    |
|                   |      |      |     |    |     | 9 |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Total Local Sale  |      |      | 858 | 1  | 906 | 1 | 962 | 1  |
|                   |      |      | .78 | 00 | .19 | 0 | .23 | 00 |
|                   |      |      |     |    |     | 0 |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Export Sales by   |      |      |     |    |     |   |     |    |
| Products          |      |      |     |    |     |   |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Product Line 1    | PATO |      |     |    |     |   |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Insecticide       |      |      | -   | -  | -   | - | -   | -  |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Herbicide         |      |      | -   | -  | -   | - | -   | -  |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Fungicide         |      |      | -   | -  | -   | - | -   | -  |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Acaricide         |      |      | -   | -  | -   | - | -   | -  |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Other             |      |      | -   | -  | -   | - | -   | -  |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Total Export      |      |      | -   | -  | -   | - | -   | -  |
| sales             |      |      |     |    |     |   |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Local & Export    |      |      |     |    |     |   |     |    |
| Sales             |      |      |     |    |     |   |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Product Line 1    | PATO |      |     |    |     |   |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Insecticide       |      |      | 322 | 3  | 458 | 5 | 349 | 3  |
|                   |      |      | .07 | 7. | .85 | 0 | .93 | 6. |
|                   |      |      |     | 50 |     | . |     | 37 |
|                   |      |      |     |    |     | 6 |     |    |
|                   |      |      |     |    |     | 4 |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Herbicide         |      |      | 365 | 4  | 306 | 3 | 455 | 4  |
|                   |      |      | .56 | 2. | .94 | 3 | .20 | 7. |
|                   |      |      |     | 57 |     | . |     | 31 |
|                   |      |      |     |    |     | 8 |     |    |
|                   |      |      |     |    |     | 7 |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Fungicide         |      |      | 103 | 1  | 88  | 9 | 97  | 1  |
|                   |      |      | .44 | 2. | .11 | . | .11 | 0. |
|                   |      |      |     | 04 |     | 7 |     | 09 |
|                   |      |      |     |    |     | 2 |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Acaricide         |      |      | 21  | 2. | 20  | 2 | 22  | 2. |
|                   |      |      | .51 | 51 | .64 | . | .00 | 28 |
|                   |      |      |     |    |     | 2 |     |    |
|                   |      |      |     |    |     | 8 |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Other             |      |      | 46  | 5. | 31  | 3 | 37  | 3. |
|                   |      |      | .21 | 38 | .65 | . | .99 | 95 |
|                   |      |      |     |    |     | 4 |     |    |
|                   |      |      |     |    |     | 9 |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Total Local &     |      |      | 858 | 1  | 906 | 1 | 962 | 1  |
| Export sales      |      |      | .78 | 00 | .19 | 0 | .23 | 00 |
|                   |      |      |     |    |     | 0 |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Less returned &   |      |      | 7   | 0. | 9   | 1 | 7   | 0. |
| Discount          |      |      | .16 | 83 | .83 | . | .31 | 76 |
|                   |      |      |     |    |     | 0 |     |    |
|                   |      |      |     |    |     | 9 |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Net Sales         |      |      | 851 | 9  | 896 | 9 | 954 | 9  |
|                   |      |      | .62 | 8. | .36 | 8 | .92 | 9. |
| มูลค่าก             |      |      |     | 85 |     | . |     | 30 |
| ารรับจ้างผลิตหรือบรรจุ |      |      |     |    |     | 4 |     |    |
|                   |      |      |     |    |     | 5 |     |    |
| รายได้อื่นๆ          |      |      |     |    |     |   |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Contractor        |      |      | -   | -  | -   | - | -   | -  |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Other Income      |      |      | 9   | 1. | 14  | 1 | 6   | 0. |
|                   |      |      | .93 | 15 | .12 | . | .72 | 70 |
|                   |      |      |     |    |     | 5 |     |    |
|                   |      |      |     |    |     | 5 |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+
| Total Revenue     |      |      | 861 | 1  | 910 | 1 | 961 | 1  |
|                   |      |      | .55 | 00 | .48 | 0 | .64 | 00 |
|                   |      |      |     |    |     | 0 |     |    |
+-------------------+------+------+-----+----+-----+---+-----+----+