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www.sesresources.co Sustainable Container Farm for Mushroom Production 1 Imprint: SES Resources (Pty) Ltd. Plot 2333 Maunatlala Street Selibe Phikwe P.O. Box 1620 Selibe Phikwe Email: [email protected] Company Register: CO2015/485 SES International Holdings Ltd. P.O. BOX 120409 Sharjah Email: [email protected] U.A.E. Register: Ras Al Khaimah A207/03/13/6117
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SES Organic Mushroom Cultivation

Jan 16, 2017

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Page 1: SES Organic Mushroom Cultivation

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Imprint: SES Resources (Pty) Ltd. Plot 2333 Maunatlala Street Selibe Phikwe P.O. Box 1620 Selibe Phikwe Email: [email protected] Company Register: CO2015/485

SES International Holdings Ltd. P.O. BOX 120409 Sharjah

Email: [email protected] U.A.E. Register: Ras Al Khaimah A207/03/13/6117

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Introduction Ladies and Gentlemen, Mushrooms are an excellent source of nutritious, they have many different flavours, valuable amino acids, and fibre and are low in fat. In the vegetarian or vegan kitchen, mushrooms used as a meat substitute due to their diversity. In the container farm, you cultivate all year-round organic mushroom. Depending on the mushroom species we can harvest up to 8 times per year. As a result, we provide the market all year around with fresh organic mushrooms in a consistent quality. The organic mushroom cultivation provides a promising economic and biological alternative to the traditional agriculture. The benefit of our mushroom substrates "Made in Austria" is the highest quality available and in comparison with other international suppliers, the container farm provides a 20% higher yield and a 50% shorter growing cycle which results in more frequent harvests. Due to ongoing R&D and cooperation with our supplier Glückspilze GmbH and the MRCA Mushroom Research Center Austria and other international renown Universities, we can cultivate in the future bigger varieties of mushroom in the best organic quality. We develop many new product applications for example in the pharma and cosmetic industry as a result of our research. Karl Georg Neubacher, MD E-Mail: [email protected]

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Facts about organic Mushroom cultivation Mushrooms the Food Source of the Future In the years ahead agriculture undergoes a major upheaval. Climate change and Increase in extreme weather phenomena are the challenges for agriculture of Future. The biggest task for the farmers of our time is to find the answer of how can feed additional three billion people by 2050. In this presentation, we show how the cultivation of organic mushrooms can provide an alternative solution to these challenges. By 2050, through climate change and population growth the usable acreage for agriculture is to shrink by -17%. In addition, the farming income declines further by -17% to the increase of extreme weather phenomena. In comparison with other agricultural products, the mushroom cultivation provides a multiple higher yield in annual tons / hectare than vegetable or animal products. The figure below illustrates the differences.

(Figure: Production agricultural goods in metric tons / hectare / per annum; for red meat and milk the necessary agricultural land use for fodder production was taken into account)

Mushroom as high-value Protein source By 2024 the protein consumption per person increases by an average of +16%, while meat consumption remains approximately equal to today's value, the demand for vegan and vegetarian high protein foods rises. Mushrooms are with their richly varied flavors, the valuable amino acids, the fiber and its low-fat content an excellent source of food. As protein-rich meat substitute (Average of 20-30% protein in the Dry matter), mushrooms bring colorful variety in the vegetarian and vegan cuisine. In contrast to other vegetable protein sources such as wheat protein or soy, fungi protein is very well tolerated by the human body and can be consumed safely with a gluten intolerance. Also, fungi protein has, unlike soybeans with high a high content of phytoestrogens, no adverse effects on men's hormone balance. Source: Nelson et. al. (2014); FAO 2016 "Climate change and food security" Agricultural Outlook 2015-2024 from OECD and FAO. Figure: Protein content in % of food source.

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Mushroom cultivation is Sustainable and conserves Resources The organic mushrooms offer a sustainable economic, and biologically meaningful alternative or supplement to traditional agricultural products. The cultivation of mushroom conserve resources as fungi have a high biological efficiency (per 1 kg substrate dry matter yield up to 1 kg of fresh mushrooms harvested). Byproducts such as straw or wood (wood chips, sawdust) from other agricultural production activities used as raw material for the mushroom substrate. The water consumption is when compared with the meat or milk production minuscule with only 8 liters per 1kg fresh mushrooms. In our closed loop containerized mushroom production 90% of the water consumed is recycled.

Water consumption during the production cycle per 1kg fresh mushroom harvested

Marketing Opportunities Through the increase in demand for vegan and vegetarian food, the demand for mushrooms as protein-rich meat substitute sharply increases in the coming years. Many of our mushrooms species contain a broad range of vitalizing substances like polysaccharides, triterpenes, vitamins, minerals, etc. While Asia uses these "medicinal mushrooms" for thousands of years, the rest of the world recognized their potential only since the boom of the Traditional Chinese Medicine (TCM) in recent years. Medical Mushrooms become an additional source of revenue for mushroom farmers and value-added Processing options for seasonal overproduction. Mushrooms are traditionally pickled or dried preserved, they can be pre-cut and packaged in portions and frozen (frozen mushrooms enter directly into the hot pan when prepared). Some fungi species are usable to distil herbal liqueurs and spirits or for the production ointments and creams. Recycling of spent mushroom substrates After the final mushroom harvesting the spent substrate remains are a great fertilizer for other crops or can be used as feed for biogas productions and greywater recovery. 100% organic mushroom cultivation Substrates (breeding ground) and the spawn (mushroom seed’s) are organic! We only use raw material from certified organic agriculture, especially from regional suppliers. Other producers use conventional spawn for organic mushroom cultivation! That is possible due to the EU-organic-regulation only 95 % of the ingredients (substrate plus spawn) have to be from certified organic agriculture. We are confident that also the spawn has to be organic to produce a truly holistic, organic product.

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Research and Development We reinvest 15 % of our revenue to support the research activities at the MRCA Mushroom Research Center in Austria. MRCA explores new growing techniques on mushroom species which were difficult to cultivate and new mushroom applications in nutrition, medicine, the cleaning of contaminated soils and waters (mycorestoration, pest control (mycopesticide) and industrial usage (cosmetic). As a result, we can produce new innovative products that provide a long-term competitive edge for the mushroom farmer, and we prevent the supersaturation of the market with the same mushroom products and a drop in prices.

Introducing the world of mushroom For a long time mushroom were add to plants. Nowadays we know that they are more identical to animals due to genetical and physiological characteristics than to plants. The main difference is the fact that mushroom cannot photosynthesize and build up carbohydrates on their own. So they need symbiosis with plants to get organic carbohydrate compounds for energy generation. Thus mushrooms are counted among desturents in the organic cycle of substances within an ecosystem. They converte organic matter to soluble minerals. Through their food absorption, we categorize fungi into three main groups:

Saprophyte They break down organic matter like cow dung, waste wood or straw. In the organic cycle of substances within an ecosystem, the fungi are the biggest natural recycling company. Most cultivated mushrooms belong to this category of fungi's. We should pay attention to the fact that cultivated mushrooms react differently than their grown wild counterparts. However, grown in a controlled environment, they produce a higher yield with an optimised substrate (mushroom breeding ground). Grown wild mushrooms have a bigger vegetative part, called mycelium which is consisting of a mass of branching, thread-like hyphae but produces only a small amount of fruiting bodies.

Reishi (Ganoderma lucidum) on wood

Stropharia rugosoannulata

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Parasites

Commonly known is that fungi may exist as parasites. Here, the fungus attacks an still vital organism ("host") and consumes the energy and nutrients of the host. The most known are various skin fungi or the Armillaria species. Worth mentioning, the Honey Fungus (Armillaria mellea), his mycelium reaches out an area of several thousand Square meters and can achieve a depth of 500 to 800 meters, it is the largest life form on our planet. Cordyceps is a genus of ascomycete fungi (sac fungi) that includes about 400 species. All Cordyceps species are endoparasitoids, parasitic mainly on insects and other arthropods (they are thus entomopathogenic fungi); a few are parasitic on other fungi. The lingzhi mushroom or reishi mushroom is a species complex that encompasses several fungal species of the genus Ganoderma, most commonly the closely related species Ganoderma

lucidum, Ganoderma tsugae, and Ganoderma sichuanense. G. sichuanense enjoys special veneration in East Asia, where it has been used as a medicinal mushroom in traditional Chinese medicine for more than 2,000 years, making it one of the oldest medicinal mushrooms known. Lingzhi listed in the American Herbal Pharmacopoeia and Therapeutic Compendium. Stropharia rugosoannulata, commonly known as the Wine Cap stropharia, "garden giant," burgundy mushroom or King stropharia (Japanese: saketsubatake), is an agaric of the family Strophariaceae found in Europe and North America and introduced to Australia and New Zealand. Cordyceps militaris is a species of fungus in the family Clavicipitaceae and the type species of the genus Cordyceps. It was originally described by Carl Linnaeus in 1753 as Clavaria militaris Symbionts Some fungi live as symbionts for the mutual Benefit of all participating systems. The symbiosis of fungi and plants is called mycorrhiza. The Fungus provides the plant with minerals and nutrients which the plant itself is not able to extract and absorb from the soil itself. The fungus mycelium tight interwoven with the plant roots can store a greater amount of water -thus the plant can easily survive dry periods. The plant supplies the fungus in return with essential Carbohydrates (sugar), produced through its photosynthesis mechanism.

Reishi (Ganoderma lucidum) on wood

Cordyceps militaris

Symbiosis beween plant root and fungus under the the microscope (Mycorrhiza)

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The mushroom life cycle

Most people associate mushroom only with the visible fruiting body above ground. The much larger part of the Fungal organism (in mushroom cultivation referred to as mycelium) is vegetative under the ground. The fruiting bodies usually consist of stem, cap, and gills (gills fungi - for example the button mushroom) tubes (Boletes - as Porcini) or pores (Polyporales - as Reishi). In the gills, tubes or pores the spores (fungi seeds) are formed. Once the spores fully mature, they drop out. If the fungal spores find an appropriate breeding ground (soil), they germinate under the right climatic conditions (temperature, humidity, and oxygen level in the air). We differentiate between positive (+) and negative (-) polarity spores, they independently germinate. Once the two spore germs link, a new mycelium develops. Under the right environmental condition, they form the mycelium Pinheads

(pinhead-sized mini-mushrooms). These mini-mushrooms then grow fully into the fruiting bodies, which in turn produce spores and the Lifecycle begins anew. The mushroom cultivation cycle The techniques and steps in mushroom cultivation always follow the same pattern, only the recipe of the substrates and the climatic conditions during the mycelial growth and the fruiting will change. The spores initially germinate in Petri dishes on nutrient media in a controlled laboratory environment. The best and most robust mycelium strings are enhanced by selection, which increases the yield. The selected mycelium strings are cultivated on grain spawn and increasingly on sawdust spawn. The grain spawn or sawdust spawn is used, once they are fully colonized by the mushroom mycelium, to inoculate on a suitable fruiting substrate, which will be fully occupied by the growing mushroom mycelium. Once this phase is concluded, then the fruiting is introduced by changing the environmental conditions.

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Our mushroom products Our fungal culture collection surpases more than 400 different mushroom spicies. Below the three most cultivated mushrooms of our assortment, informations on other fungi upon request.

Organic Tree Oyster (Oyster mushroom) Scientific name: Pleurotus ostreatus Syn.: Hiratake, Tamogitake, P.ng Gu, Sadafi, Chippikkoon Suitable for: bale of straw, wood logs or premade Oyster culture spawed bags for greenhouse and closed loop container farming. The oyster mushroom is a very easy to grow edible mushroom. The mycelium of this fungus is very robust, and for that reason one the most popular cultivated mushrooms. The fruiting bodies reach a diameter of 5-15 cm. The hat is gray-brown to violet, goes down toward the gills and the stem where the color is fading into whitish. Pleurotus is rich in vitamins such as B complex, A, B1 (thiamine), B2 (Riboflavin), B5 (niacin), B6 and B7 (biotin). The mushroom contains folic acid and vitamin C and D (calciferol). One quater of the Oyster mushroom dry matter consists of proteins and contains all essential amino acids, and other important ingredients of Pleurotus are ß-glucans (Polysaccharides), pleuran and lovastatin.

Organic button mushroom white or brown Scientific name: Agaricus bisporus Suitable for: compost substrate in greenhouse and closed loop container farming.

Button mushroom is an edible mushroom widley cultivated all over the world. The most important ingredients are protein, carbohydrates and fibre. Due to the mineral composition the button mushroom is suitable for many meals in the daily kitchen. He is also used for weight regulation dishes. The Agaricus bisporus is the most cultivated mushroom by American farmers to the tune of $800 million each year, during which the average American consumes 2.2 pounds of mushrooms! The common grocery store form of Agaricus bisporus is completely white, but in recent years the mushroom industry has developed brown strains of the species, which it markets as "crimini" and "portabello" mushrooms (the distinction is simply that the portabellos have been allowed to mature past the button stage). The distinguishing feature of Agaricus bisporus is microscopic: unlike other species of Agarius, its basidia bear two spores each, instead of four. The bottom illustration shows three pairs of spores, still attached to two-pronged basidia.

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Organic Shiitake Scientific name: Lentinula edodes Suitable for: wood logs, ready culture for greenhouse and closed loop container farming. The Shiitake is located in Japan, Korea and China. Long a symbol of longevity in Asia because of their health-promoting properties, shiitake mushrooms have been used medicinally by the Chinese for more than 6,000 years. The smell is similar to garlic and one of the ingredients is due to that named lenthionin. Lentinula edodes is one of the most popular edible mushroom after Button mushroom. More

recently, their rich, smoky flavor has endeared them to American taste buds. These exotic hearty mushrooms can now be found in supermarket shelves across the U.S. throughout the year.

Like other mushrooms, these specialty mushrooms are as mysteriously unique as they are delicious. While often thought of as a vegetable and prepared like one, mushrooms are actually a fungus, a special type of living organism that has no roots, leaves, flowers or seeds. People do not usually consider including mushrooms as part of their meals for their nutritional content. However, shiitake mushrooms are rich in B vitamins—they are an excellent of pantothenic acid, a very good source of vitamin B2, and a good source of vitamin B6, niacin, choline, and folate. Additionally, they are concentrated in minerals, being an excellent source of selenium and copper, a very good source of zinc, and a good source of manganese. They are also a good source of vitamin D (in the D2 form) and dietary fiber. They also provide a wide variety of unique phytonutrients. To maximize their flavor and the retention of their nutrients it is important to not to overcook them. That's why we recommend Healthy Sauteeing shiitake mushrooms for just 7 minutes to bring out their best flavor while maximizing their nutrient retention. For more on our Healthiest Way of Cooking shiitake mushrooms see the How to Enjoy section below.

What is Beneficial about Shiitake Mushrooms Although immune system support has often received much of the spotlight in shiitake mushroom research, recent study results involving support of the cardiovascular system have caught the attention of many researchers. In particular, recent studies have shown the ability of shiitake mushrooms to help protect us against cardiovascular diseases (including atherosclerosis) by preventing too much immune cell binding to the lining of our blood vessels. In order for immune cells and other materials to bind onto our blood vessel linings, certain protein molecules—called adhesion molecules—must be produced and sent into action. By helping to block the adhesion molecule production process, substances in shiitake mushrooms can help protect our blood vessels. (The adhesion molecule production that is partially blocked by shiitake mushroom components includes the adhesion molecules ICAM-1, VCAM-1, and E-selectin.) Shiitake mushrooms have long been recognized as a very good, non-animal food source of iron. But a recent preliminary study has determined that the bioavailability of iron from shiitake mushrooms may be even better than from other sources. Price for mushroom spawn and ready culture for organic cultivation Mushroom spawn („seeds“ for mushroom) and substrate form the basis for every farmer to cultivate edible and vital mushroom. The production of spawn and substrate takes place in best organic quality in pure culture and is produced to 100 % in Austria. If you want to buy spawn or ready culture please calculate with 3 to 4 weeks, because everything you order is absolutely fresh produced! The spawn and ready cultures are certificated for organic mushroom cultivation according to EU VO 834/2007 und 889/2008 (Leading organic certification: AT-BIO-701, BIKO Tirol)

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Price for mushroom spawn

Description at 1 pkg. €/L at 6 pkg. €/L at 100 pkg. €/L Sawdust spawn 6 L for organic cultivation € 17.61 € 2.94 € 14.96 € 2.49 € 10.50 € 1.75

Grain spawn 6 L for organic cultivation € 22.04 € 3.67 € 17.61 € 2.94 € 12.50 € 2.08

Grain spawn 2,5 L for organic cultivation € 17.61 € 7.04 € 13.19 € 5.28 € 11.42 € 4.57

Price for ready culture on wood substrate

at 1 pkg. €/L at 6 pkg. €/L at 100 pkg. €/L at 250 pkg. €/L € 17.61 € 2.94 € 14.96 € 2.49 € 10.50 € 1.75 € 8.00 € 1.33

Price compost substrate (Minimum purchase ten metric tons per delivery!) The production of mushroom compost is a complex microbiological process. For fermentation, we use raw materials like straw, horse and chicken manure, gypsum and water. This compost substrate utilized for button mushroom and other similar species. For optimal fermentation process and excellent quality, the minimum order is 10 tons per production run. Species and prices: Button mushroom (brown or white) compost for organic cultivation, per ton 319.00 €. Himematsutake compost for organic cultivation, per ton: Price on request. Covering soil for organic mushroom cultivation, large bags, per ton: € 120.00.

Pricelist for inoculation tools Inocultation stick 12,5 mm This Inoculations Stick is a simple hand held sawdust spawn inoculation tool. Its compact size (15 cm) enables the user to inoculate with one hand. The inoculation sites can be sealed either with a Styrofoam cap or melted wax. The tool comes with a tool repair kit, spring, set screw, and hex key. Stainless steel ensures its long-life application. Price: 157.50 €

Hand Inoculator 12,5 mm The Hand Inoculator significantly eases the work flow. It is manually loaded like a regular hand held inoculation tool but by pressing the handle downward, the inoculation site is filled with sawdust spawn and capped with a Styrofoam cap in a single motion. This simultaneous action lightens the workload and saves time. Price: 349.17 €

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Semi-automatic inoculation machine The Semi-Automatic Inoculation Machine will greatly increase productivity of farms inoculating 1,000's of logs or more each season. This air-driven tool delivers spawn and a foam cap at a rate of 60-70 holes per minute (requires an air compressor of 2 HP or greater - not included in delivery). Price: 7.491.67 €

STAR M mushroom drill bit Nr. 41 This soft steel drill bit with stop specially designed for mushroom cultivation on wood logs with sawdust spawn inoculations and works in both high speed (6000 rpm) and lower speed drills. Price: 14.09 €

Beeswax Application Beeswax applicator is designed to seal with wax much more efficiently instead of using brush. Stainless steel keeps the heat for longer operation with wax. One load can seal up to 40 holes. It is a tool that speeds up operation and reduces wax consumption. Sponge forming tool included. Price: 174.17 €

Styrofoam sealing caps Sealing Caps for sealing of Inoculation holes on wood logs when inoculationg with Sawdust Spawn. Contents: 20 000 Sealing Caps compatible with Hand Inoculator and Semi-Automatic Inoculation Machine. Price: 82.50 €

All quoted prices are net, ex-works, based on current market prices, wage costs, raw material costs and energy costs.

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Organic mushroom cultivation in a controlled Environment Cultivating organic mushrooms in a greenhouse or closed cycle containerized systems allows you to harvest year-round a consistent quality, depending on the species up to 8 harvests per year are possible. In the contrary, outdoor cultivation provides mushrooms only intermittently or seasonally. Substrate for cultivation in greenhouses Our by selection enhanced „Ready Cultures“ or mycel blocks are used for mushroom cultivation in greenhouses. These substrates are made of organic raw materials (wood, straw or other herbal raw materials) and standardized for each mushroom species individually. This guarantees the highest yield and continues high quality all year around. Recycling of the spent substrate after harvesting Methode 1 Until all nutrients are used up the substrate produces fruiting bodies. In the composting process, the soil-dwelling organisms transform the spent culture within a few months into nutrient-rich plant fertiliser. The mycel waste is rich in proteins and provides additional nitrogen for plants. From this closed cycle process, the farmer receives the high-value plant fertiliser for fruits or vegetable cultivation. Spent substrates from Button Mushroom or Himematsutake can be applied directly without composting to cultivation fields. Methode 2 Molecular products Enzymes recovered from spent mushroom substrate after cultivating and harvesting mushrooms – Applications in food manufacturing (e.g. alpha amylase for beer brewing, proteases used in meat tenderisers etc.) Stock feed – fungi-feed Studies have demonstrated animals (ruminants) fed on a spent mushroom substrate diet are generally healthier and weigh more than animals fed on conventional diets. Methode 3 Anaerobic digestion of Spent substrate Biomass waste for Biogas production EKO GEA provides a simple, economical biological solution to convert biomass to usable energy. • Boosts metabolic digestion process. • Boosts methane production volumes by 30% + • Reduces BOD & COD • Eliminates odors • Dramatically reduces H₂S hydrogen sulfide and NH₃ ammonia • Boosts overall energy balance of the mushroom farm

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Mushroom greenhouses Mushrooms need a particular environment with the proper temperature, humidity and sufficient oxygen to grow. In a closed environment, also, the optimum air circulation within the and the specific light requirements are equally important. The particular created and constant environment set up for each mushroom species guarantees the high crop yield and quality of the harvested mushrooms. Our closed cycle food computer is specifically designed to these to create the particular environment for a broad range of mushroom species and other crops. Our mushroom cultivation platform is modular built, with a minimum size of 100 m² per farm. This farm size has proven to be viable economically. The on following pages described our "Mushroom cultivation system of 108 m² & 360 m² with a minimum investment from approx. € 60,000. Depending on the mushroom species cultivated, the 108 m² farm yields eight harvests per year from 8,000 to 16,000 kg of fresh mushrooms. To minimize the initial investment, adapted existing buildings, stables, barns and similar possibly reduce construction cost of the mushroom cultivation farm. The actual investment is highly dependent on the local conditions and the required permits, equipment, machinery, and additional modules and will be specified only during the detailed planning of a project.

Basic Mushroom cultivation module 108 m² Dimensions L 15m x W 6m (total) L 10.5m x W 6m (cultivation area) L 4.5 m x W 6m (utility room) Height: 3.90 m Shelfes: 2 rack rows, 4 levels each 1.5 m x 9m Total cultivation area: 108 m²

Basic module structure The basic structure of the mushroom cultivation module constructed from galvanised steel (E260). Form and dimension guarantee optimum air circulation and energy efficient heating, cooling, humidification and dehumidification. The technical equipment installed in the utility room (27 m2), which functions as air gate to enter the mushroom cultivation area. Material cost for the basic module structure: 7,990.00 € Material cost utility room: 3,990.00 €

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Outer shell and isolation The module is designed for climate conditions in Central Europe but is modifiable for climates in other parts of the world. Corresponding isolation arranges a low energy consumption. The outer shell made of a multilayer foil primarily designed for mushroom cultivation. This layer with a 30 cm thick isolation and a 10-15 cm thick airbag are for thermal isolation (Lambda value: 0,039W/mK). The roof structure and sidewalls strengthened with 100 mm thick Sandwich-panels. Material cost for the outer shell and isolation: 6,990.00 € Shelving system The shelving construction of is made from special designed galvanized steel and organized in two rack rows with four levels each one 1,5m wide and 9 m long with a total of 108 m2 cultivation area. These shelves are not compatible with Dutch machines. Upon request, we can also provide Dutch shelves (Dutch-Shelving). Material cost for shelving: 3,390.00 €

Climate control for basic mushroom cultivation module The climate control unit creates for each mushroom species the required climate. Temperature, humidity, CO2- concentration / fresh air exchange are 24/7 measured and if there are any differences to the pre-programmed parameters the heating/cooling system and humidifier system are activated automatically. The for mushroom cultivation designed climate control system consists of a ventilation system, cooling register, heat register, an air exchange system, circulation fans (2300 m3 / h, 130 Pa pressure), separate fans or fresh air exchange, blinds with servomotors, air channels, standard filters. On request and for a surcharge, electrostatic filters and assembly material is available. Due to an "air to air heat pump" (14 kW, 380 V, 10 A) the heating and cooling system operates more efficiently. This "air to air heat pump" produces warmth or coldness as needed. The basic module uses the „Mush-Rom“ operating panel consisting of a multifunction display and sensors to measure and regulate: outdoor temperature, the module air temperature, substrate temperature, CO2 content and the relative humidity. As an option, a remote control for tablet or smartphone is available for a surcharge. Material price mushroom cultivation air-conditioner, basic version: 8.900,00 €

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Basic Mushroom cultivation module 108 m²

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Optional Equipment Basic lighting system for mushroom cultivation module 108 The lighting system for the cultivation area consists of 20 water resistant and pollution resistant lamps (IP 65) including assembly material. Depending on the cultivated mushroom species we recommend to add a daylight lighting system. Material cost: 890.00 € LED lighting system Upon request, we offer a high-quality full-spectrum LED growing light optimized for all stages of the mushroom cultivation process in a modular rack design for easy replacement and upgrades. The modular design makes our systems straightforward and scalable. The whole shelving system can be installed by one person and comes with built-in piping for water and nutrient circulation. This LED lighting system is the most economical solution for a small-mid size vertical farm. Material cost: upon request 0.00 € Light system for utility room Includes assembly material. Material price: 590.00 € Fues box electrical supplies utility room Includes assembly material. Material price: 430.00 € GSM module upgrade for the „Mush-Rom“ operating panel (mobile network)

• Remote maintenance and operation • Alarm and error messaging

Material cost: 2,220.00 € Mobile plus upgrade for Smart phones and tablet

• to measure and regulate: outdoor temperature, the module air temperature, substrate temperature, CO2 content and the relative humidity.

Material cost: 750.00 € Air conditioning for utility room

• heating and cooling when requiered depending on the local climate

Material price: 1,690.00 €

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Cold room

• for the freshly harvested mushroom. The cold room operates on a separate cooling aggregate (only in use during the harvesting period).

Dimensions: L 4.5 m x W 2.5 m Cooling power: 5 kW Material cost: 7,670.00 €

Energy – supply and consumption

The power rating per mushroom cultivation module: 380 V – 36 A, 6kW + 9 kW. The average energy consumption per day is 45 kWh (depending on location and season). The power consumption is calculated for button mushroom cultivation, and for other species, this can differ. Furthermore, the module requires a drinking water connection (1/2 inch water hose) and a wastewater drainage.

Wastewater recycling system • reduces water consumption and recycles up 90% of the used water

Material cost: upon request € Offgrid Power Solution

• Solar PV with battery storage / Biogas hybrid power production in rural areas Material cost: upon request € Construction costs mushroom cultivation module

The installation time and cost depends on local conditions and the actual equipment for the module (usually 5 to 7 working days). As a benchmark we calculate with the following cost factors:

• Module construction including installation of the shelving system: 4.900,00 € per module

• Installation and activation air conditioning system: 1.495,00 €

• Project planing, construction supervisor / manager (expert in mycology): 150,00 € per hour.

Construction work - Foundation

For foundation we use conventional concrete, we recommend a vapor barrier, and for everything else depends on the local conditions (for example a high ground water level). We advise you to build a down gradient of three cm per meter from the length side to the center, which ends in a linear effluent drainage. For the bottom surface of the module, we recommend a washable Epoxy resin coating.

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Material cost overview, pricing, shipping, terms and conditions Pricing All quoted prices are net, ex-works, based on current market prices, wage costs, raw material costs and energy costs. Pricing does not include cost for foundation and labor cost on site. The prices in this document are estimates. A binding offer will requiere a detailed project plan. Shipping The average delivery time is 3 to 4 weeks ex works after we receive the downpayment. Terms and conditions 50% downpayment with the purchase order, 50% when ready to ship or Letter of Credit. We offer a 2% discount for 100% prepayment.

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Module 108 -calculation organic Button mushroom productionmushroom harvesting yield ca. 22,5 % weight of substrate*

6 m x 10 m 6 m x 10 m

4 levels, 2 rack rows 4 levles, 2 rack rows

TurnoverOrganic Button mushroom compost substrate in kg 7,000 42,000

Organic soil cover in kg 2,500 15,000

Mushroom harvesting yield in % of total weight (substrate + soil)* 22.50% 22.50% andMushroom yield in kg for each growing cycle 2,138 12,825

Net sales price in €/kg 6.00 6.00

Revenue in € each growing cycle 12,825 76,950Revenue in € p.a. (eight harvests per year) 102,600 615,600Variable costsOrganic Button mushroom compost substrate in € per growing cylce (319 €/ton) 2,233 13,398

Organic soil in € per growing cycle (0,12 €/kg) 300 1,800

labor costs in € per growing cycle (Austria) 3,447 20,682

consumable & cleaning material costs in € each growing cycle 250 1,500

power consumption € each growing cycle (Energy cost in Austria) 610 3,660

Maintenance cost in € each growing cycle 375 2,250

Packaging caost € each growing cycle (1,50 €/kg in Austria) 3,206 19,238

total variable costs in € each growing cycle 10,421 62,528total variable costs in € p.a. 83,370 500,220

Net Profit in € per growing cycle 2,404 14,423Net profit in € p.a. 19,230 115,380

Capital Cost Module Material costs mushroom cultivation Module 108 22,360 134,160

Material costs basic climate control unit incl. cold room 23,140 138,840

Construction module, installation, foundation, utilities, social room, storage room, equipment and tools 40,000 100,000

Total one time Investment 85,500 373,000Amortisation period in years 4.45 3.23

Harvesting planningeach cycle period in days between harvests 43 43

Amount of harvests p.a. 8 8

Labor planningto supply the module with substrate 2 People / 4 h = 8 h 2 P / 24 h = 48 h

Apply soil cover the substrate manually 2 People / 4 h = 8 h 2 P / 24 h = 48 h

Disperse the soil cover manually 2 People / 2 h = 4 h 2 P / 12 h = 24 h

Daily work effort 1 Person / 0,5 h x 43 = 21,5 h 1 P / 3 h x 43 = 129 h

Harvesting & packaging 10 People / 5 h x 3 = 150 h 10 P / 30 h x 3 = 900 h

Total working hours 192 1,149

Labor cost in €/hour (Austria) 18.00 18.00

Labor cost in € each growing cycle (Austria) 3,447 20,682Farmer Revenue (Labor Cost) for work performed on his own Mushroom farm in € p.a. 27,576 165,456* 22,5 % crop yield of total substrate equals 30 % crop yield of amount of compost.

1 Tunnel 6 Tunnel

Module dimensions

Non-binding calculation sample. Investment volume depends on local conditions and actually equipment for the factory.

Module 108 -calculation organic Button mushroom productionmushroom harvesting yield ca. 22,5 % weight of substrate*

6 m x 10 m 6 m x 10 m

4 levels, 2 rack rows 4 levles, 2 rack rows

TurnoverOrganic Button mushroom compost substrate in kg 7,000 42,000

Organic soil cover in kg 2,500 15,000

Mushroom harvesting yield in % of total weight (substrate + soil)* 22.50% 22.50% andMushroom yield in kg for each growing cycle 2,138 12,825

Net sales price in €/kg 6.00 6.00

Revenue in € each growing cycle 12,825 76,950Revenue in € p.a. (eight harvests per year) 102,600 615,600Variable costsOrganic Button mushroom compost substrate in € per growing cylce (319 €/ton) 2,233 13,398

Organic soil in € per growing cycle (0,12 €/kg) 300 1,800

labor costs in € per growing cycle (Austria) 3,447 20,682

consumable & cleaning material costs in € each growing cycle 250 1,500

power consumption € each growing cycle (Energy cost in Austria) 610 3,660

Maintenance cost in € each growing cycle 375 2,250

Packaging caost € each growing cycle (1,50 €/kg in Austria) 3,206 19,238

total variable costs in € each growing cycle 10,421 62,528total variable costs in € p.a. 83,370 500,220

Net Profit in € per growing cycle 2,404 14,423Net profit in € p.a. 19,230 115,380

Capital Cost Module Material costs mushroom cultivation Module 108 22,360 134,160

Material costs basic climate control unit incl. cold room 23,140 138,840

Construction module, installation, foundation, utilities, social room, storage room, equipment and tools 40,000 100,000

Total one time Investment 85,500 373,000Amortisation period in years 4.45 3.23

Harvesting planningeach cycle period in days between harvests 43 43

Amount of harvests p.a. 8 8

Labor planningto supply the module with substrate 2 People / 4 h = 8 h 2 P / 24 h = 48 h

Apply soil cover the substrate manually 2 People / 4 h = 8 h 2 P / 24 h = 48 h

Disperse the soil cover manually 2 People / 2 h = 4 h 2 P / 12 h = 24 h

Daily work effort 1 Person / 0,5 h x 43 = 21,5 h 1 P / 3 h x 43 = 129 h

Harvesting & packaging 10 People / 5 h x 3 = 150 h 10 P / 30 h x 3 = 900 h

Total working hours 192 1,149

Labor cost in €/hour (Austria) 18.00 18.00

Labor cost in € each growing cycle (Austria) 3,447 20,682Farmer Revenue (Labor Cost) for work performed on his own Mushroom farm in € p.a. 27,576 165,456* 22,5 % crop yield of total substrate equals 30 % crop yield of amount of compost.

1 Tunnel 6 Tunnel

Module dimensions

Non-binding calculation sample. Investment volume depends on local conditions and actually equipment for the factory.

Module 108 -calculation organic Button mushroom productionmushroom harvesting yield ca. 22,5 % weight of substrate*

6 m x 10 m 6 m x 10 m

4 levels, 2 rack rows 4 levles, 2 rack rows

TurnoverOrganic Button mushroom compost substrate in kg 7,000 42,000

Organic soil cover in kg 2,500 15,000

Mushroom harvesting yield in % of total weight (substrate + soil)* 22.50% 22.50% andMushroom yield in kg for each growing cycle 2,138 12,825

Net sales price in €/kg 6.00 6.00

Revenue in € each growing cycle 12,825 76,950Revenue in € p.a. (eight harvests per year) 102,600 615,600Variable costsOrganic Button mushroom compost substrate in € per growing cylce (319 €/ton) 2,233 13,398

Organic soil in € per growing cycle (0,12 €/kg) 300 1,800

labor costs in € per growing cycle (Austria) 3,447 20,682

consumable & cleaning material costs in € each growing cycle 250 1,500

power consumption € each growing cycle (Energy cost in Austria) 610 3,660

Maintenance cost in € each growing cycle 375 2,250

Packaging caost € each growing cycle (1,50 €/kg in Austria) 3,206 19,238

total variable costs in € each growing cycle 10,421 62,528total variable costs in € p.a. 83,370 500,220

Net Profit in € per growing cycle 2,404 14,423Net profit in € p.a. 19,230 115,380

Capital Cost Module Material costs mushroom cultivation Module 108 22,360 134,160

Material costs basic climate control unit incl. cold room 23,140 138,840

Construction module, installation, foundation, utilities, social room, storage room, equipment and tools 40,000 100,000

Total one time Investment 85,500 373,000Amortisation period in years 4.45 3.23

Harvesting planningeach cycle period in days between harvests 43 43

Amount of harvests p.a. 8 8

Labor planningto supply the module with substrate 2 People / 4 h = 8 h 2 P / 24 h = 48 h

Apply soil cover the substrate manually 2 People / 4 h = 8 h 2 P / 24 h = 48 h

Disperse the soil cover manually 2 People / 2 h = 4 h 2 P / 12 h = 24 h

Daily work effort 1 Person / 0,5 h x 43 = 21,5 h 1 P / 3 h x 43 = 129 h

Harvesting & packaging 10 People / 5 h x 3 = 150 h 10 P / 30 h x 3 = 900 h

Total working hours 192 1,149

Labor cost in €/hour (Austria) 18.00 18.00

Labor cost in € each growing cycle (Austria) 3,447 20,682Farmer Revenue (Labor Cost) for work performed on his own Mushroom farm in € p.a. 27,576 165,456* 22,5 % crop yield of total substrate equals 30 % crop yield of amount of compost.

1 Tunnel 6 Tunnel

Module dimensions

Non-binding calculation sample. Investment volume depends on local conditions and actually equipment for the factory.

Module 108 -calculation organic Button mushroom productionmushroom harvesting yield ca. 22,5 % weight of substrate*

6 m x 10 m 6 m x 10 m

4 levels, 2 rack rows 4 levles, 2 rack rows

TurnoverOrganic Button mushroom compost substrate in kg 7,000 42,000

Organic soil cover in kg 2,500 15,000

Mushroom harvesting yield in % of total weight (substrate + soil)* 22.50% 22.50% andMushroom yield in kg for each growing cycle 2,138 12,825

Net sales price in €/kg 6.00 6.00

Revenue in € each growing cycle 12,825 76,950Revenue in € p.a. (eight harvests per year) 102,600 615,600Variable costsOrganic Button mushroom compost substrate in € per growing cylce (319 €/ton) 2,233 13,398

Organic soil in € per growing cycle (0,12 €/kg) 300 1,800

labor costs in € per growing cycle (Austria) 3,447 20,682

consumable & cleaning material costs in € each growing cycle 250 1,500

power consumption € each growing cycle (Energy cost in Austria) 610 3,660

Maintenance cost in € each growing cycle 375 2,250

Packaging caost € each growing cycle (1,50 €/kg in Austria) 3,206 19,238

total variable costs in € each growing cycle 10,421 62,528total variable costs in € p.a. 83,370 500,220

Net Profit in € per growing cycle 2,404 14,423Net profit in € p.a. 19,230 115,380

Capital Cost Module Material costs mushroom cultivation Module 108 22,360 134,160

Material costs basic climate control unit incl. cold room 23,140 138,840

Construction module, installation, foundation, utilities, social room, storage room, equipment and tools 40,000 100,000

Total one time Investment 85,500 373,000Amortisation period in years 4.45 3.23

Harvesting planningeach cycle period in days between harvests 43 43

Amount of harvests p.a. 8 8

Labor planningto supply the module with substrate 2 People / 4 h = 8 h 2 P / 24 h = 48 h

Apply soil cover the substrate manually 2 People / 4 h = 8 h 2 P / 24 h = 48 h

Disperse the soil cover manually 2 People / 2 h = 4 h 2 P / 12 h = 24 h

Daily work effort 1 Person / 0,5 h x 43 = 21,5 h 1 P / 3 h x 43 = 129 h

Harvesting & packaging 10 People / 5 h x 3 = 150 h 10 P / 30 h x 3 = 900 h

Total working hours 192 1,149

Labor cost in €/hour (Austria) 18.00 18.00

Labor cost in € each growing cycle (Austria) 3,447 20,682Farmer Revenue (Labor Cost) for work performed on his own Mushroom farm in € p.a. 27,576 165,456* 22,5 % crop yield of total substrate equals 30 % crop yield of amount of compost.

1 Tunnel 6 Tunnel

Module dimensions

Non-binding calculation sample. Investment volume depends on local conditions and actually equipment for the factory.

Cost calculation for a Button mushroom production with the 108 module

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Calculation organic Shiitake productionMushroom yield 0.8kg-1.3kg fresh mushroom each bag

W 6m x L 10 m W 6m x L 10 m

4 levels, 2 rack rows 4 levels, 2 rack rowsTurnoverAmount of substrate bags (3 kg) each growing cycle 1,100 6,600Mushroom yield in kg per bag 1.00 1.00Mushroom yield in kg each growing cycle 1,100 6,600Net Sales prices in €/kg 15.00 15.00Revenue in € each growing cycle 16,500 99,000

Revenue in € p.a. (four harvests per year) 66,000 396,000Variable costsOrganic Substrate in € each growing cycle (6,00 €/bag) 6,600 39,600labor costs in € per growing cycle (Austria) 2,439 14,634consumable & cleaning material costs in € each growing cycle 150 900power consumption € each growing cycle 1,200 7,200Maintenance cost in € each growing cycle 500 3,000Packaging caost € each growing cycle (1,50 €/kg in Austria) 1,650 9,900total variable costs in € each growing cycle 12,539 75,234

total variable costs in € p.a. 50,156 300,936

Net Profit in € per growing cycle 3,961 23,766

Net profit in € p.a. 15,844 95,064

Capital Cost Module Material costs mushroom cultivation Module 108 7,800 46,800Corridor and air gate 4,500 27,000Basic climate control unit 18,375 81,253Shelving System 3,835 23,010Cold room 7,670 15,340Construction module, installation, foundation, utilities, social room, storage room, equipment and tools 40,000 100,000Total one time Investment 82,180 293,403

Amortisation period in years 5.19 3.09

Harvesting planningeach cycle period in days between harvests 85 85

Amount of harvests p.a. 4 4

Labor planningto supply the module with substrate 2 P / 5 h = 10 h 2 P / 30 h = 60 h

open substrate bags 1 P / 5 h = 5 h 2 P / 15 h = 30 hHarvesting & packaging 1 P / 70 h = 70 h 1 P / 420 h = 420 h

soak substrate 1 P / 8 h = 8 h 1 P / 48 h = 48 hDaily work effort 1 P / 0,5 h x 85 T = 42,5 h 1 P / 3 h x 85 T = 255 hTotal working hours 136 813Labor cost in €/hour (Austria) 18.00 18.00Labor cost in € each growing cycle (Austria) 2,439 14,634Farmer Revenue (Labor Cost) for work performed on his own Mushroom farm in € p.a. 9,756 58,536

1 Tunnel 6 Tunnel

Module dimensions

Non-binding calculation sample. Investment volume depends on local conditions and actually equipment for the factory.

Calculation organic Shiitake production

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Mushroom cultivation module 360 Dimensions L 30m x W 7m (total) L 10.5m x W 6m (cultivation area) Utility Room (variable sizes available) Corridor (variable sizes available) Height: 5.10 m Shelfes: 2 rack rows, 5 levels each 1.34 m x 27m Total cultivation area: 361.80 m²

Basic module structure The basic structure of the mushroom cultivation module constructed from of anodized aluminium. Form and dimension guarantee optimum air circulation and energy efficient heating, cooling, humidification and dehumidification. The technical equipment installed in the utility room (variable m2), which functions as air gate to enter the mushroom cultivation area. The utility room, storage rooms and service corridor are made of a polyethylene outer shell with 180 mm fibreglas isolation and outfited with isolated doors. Material cost for the basic module structure: 45,000.00 € Material cost service corridor: 27,000.00 € Outer shell and isolation The module is designed for climate conditions in Central Europe but is modifiable for climates in other parts of the world. Corresponding isolation arranges a low energy consumption. The outer shell made of a multilayer foil primarily designed for mushroom cultivation. This layer with a 60 cm thick isolation for thermal isolation (Lambda value: 0,039W/mK). The material used for the outer shell and insulation does not cause any skin irritation or respiratory problems and will not decompose over time and is not affected by mold and rotting. The roof structure and sidewalls strengthened with 100 mm thick Sandwich-panels. Material cost for the outer shell and isolation is included Shelving system The shelving construction of is made from special designed galvanized steel and organized in two rack rows with four levels each one 1,5m wide and 9 m long with a total of 108 m2 cultivation area. These shelves are not compatible with Dutch machines. Upon request, we can also provide Dutch shelves (Dutch-Shelving). Material cost for shelving: 20,000.00 €

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FANCOM Mushroom cultivation climate control system

The mushroom cultivation climate control system establishes for each mushroom species the required climate for maximum yield and product quality. Temperature, humidity, CO2- concentration / fresh air exchange are 24/7 measured and if there are any differences to the pre-programmed parameters the heating/cooling system and humidifier system are activated automatically. The from FANCOM designed climate control system consists of a ventilation system, cooling register, heat register, an air exchange system, circulation fans, separate fans or fresh air exchange, blinds with servomotors, air channels, standard filters. On request and for a surcharge, electrostatic filters and assembly material is available. Due to an "air to air heat pump" the

heating and cooling system operates more efficiently. This "air to air heat pump" produces warmth or coldness as needed. Material Cost: 30.000,00 €

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Mushroom cultivation module 360

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Optional Equipment Basic lighting system for the mushroom cultivation module 360 The lighting system for the cultivation area consists of water resistant and pollution resistant lamps (IP 65) including assembly material. Depending on the cultivated mushroom species we recommend to add a daylight lighting system. Material cost: upon request € LED lighting system Upon request, we offer a high-quality full-spectrum LED growing light optimized for all stages of the mushroom cultivation process in a modular rack design for easy replacement and upgrades. The modular design makes our systems straightforward and scalable. The whole shelving system can be installed by one person and comes with built-in piping for water and nutrient circulation. This LED lighting system is the most economical solution for a small-mid size vertical farm. Material cost: upon request 0.00 € Light system for the utility room Includes assembly material. Material price: upon request € Fues box electrical supplies utility room Includes assembly material. Material price: upon request € GSM module upgrade for the „Mush-Rom“ operating panel (mobile network)

• Remote maintenance and operation • Alarm and error messaging

Material cost: upon request € Mobile plus upgrade for Smart phones and tablet

• to measure and regulate: outdoor temperature, the module air temperature, substrate temperature, CO2 content and the relative humidity.

Material cost: upon request € Air conditioning for utility room

• heating and cooling when requiered depending on the local climate

Material price: upon request €

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Cold room • for the freshly harvested mushroom. The cold room operates on a separate cooling aggregate (only

in use during the harvesting period). Dimensions: variable sizes available Material cost: upon request €

Energy – supply and consumption

The power rating per mushroom cultivation module: 380 V – 108 A, 45kW. The average energy consumption per day is 135 kWh (depending on location and season). The power consumption is calculated for button mushroom cultivation, and for other species, this can differ. Furthermore, the module requires a drinking water connection (1/2 inch water hose) and a wastewater drainage.

Wastewater recycling system • reduces water consumption and recycles up 90% of the used water

Material cost: upon request € Offgrid Power Solution

• Solar PV with battery storage / Biogas hybrid power production in rural areas Material cost: upon request €

Construction costs mushroom cultivation module

The installation time and cost depends on local conditions and the actual equipment for the module (usually 10 to 14 working days with grew of 5 trained people). As a benchmark we calculate with the following cost factors:

• Module construction including installation of the shelving system: upon request €

• Installation and activation air conditioning system: upon request €

• Project planing, construction supervisor / manager (expert in mycology): 150,00 € per hour.

Construction work - Foundation

For foundation we use conventional concrete, we recommend a vapor barrier, and for everything else depends on the local conditions (for example a high ground water level). We advise you to build a down gradient of three cm per meter from the length side to the center, which ends in a linear effluent drainage. For the bottom surface of the module, we recommend a washable Epoxy resin coating.

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Material cost overview, pricing, shipping, terms and conditions Pricing All quoted prices are net, ex-works, based on current market prices, wage costs, raw material costs and energy costs. Pricing does not include cost for foundation and labor cost on site. The prices in this document are estimates. A binding offer will requiere a detailed project plan. Shipping The average delivery time is 6 to 8 weeks ex works after we receive the downpayment. Terms and conditions 50% downpayment with the purchase order, 50% when ready to ship or Letter of Credit. We offer a 2% discount for 100% prepayment.

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Module 360 -calculation organic Button mushroom productionmushroom harvesting yield ca. 22,5 % weight of substrate*

W 7m x L 30m W 7m x L 30m

5 levels, 2 rack rows 5 levels, 2 rack rowsTurnoverOrganic Button mushroom compost substrate in kg 24,000 240,000Organic soil cover in kg 8,000 80,000

Mushroom harvesting yield in % of total weight (substrate + soil)* 22.5% 22.5%Mushroom yield in kg for each growing cycle 7,200 72,000Net sales price in €/kg 6.00 6.00Revenue in € each growing cycle 43,200 432,000Revenue in € p.a. (eight harvests per year) 345,600 3,456,000Variable costsOrganic Button mushroom compost substrate in € per growing cylce (319 €/ton) 7,656 76,560Organic soil in € per growing cycle (0,12 €/kg) 960 9,600Packaging caost € each growing cycle (1,50 €/kg in Austria) 10,800 108,000labor costs in € per growing cycle (Austria) 9,342 93,420consumable & cleaning material costs in € each growing cycle 750 7,500power consumption € each growing cycle (Energy cost in Austria) 1,800 18,000Maintenance cost in € each growing cycle 1,125 11,250total variable costs in € each growing cycle 32,433 324,330total variable costs in € p.a. 259,464 2,594,640

Net Profit in € per growing cycle 10,767 107,670Net profit in € p.a. 86,136 861,360

Capital Cost Module Material costs mushroom cultivation Module 108 45,000 450,000Corridor and air gate 27,000 67,500Fancom climate control unit 30,000 60,000Shelving system 20,000 130,000Construction module, installation, foundation, utilities, social room, storage room, equipment and tools 100,000 700,000Total one time Investment 222,000 1,407,500Amortisation period in years 2.58 1.63

Harvesting planningeach cycle period in days between harvests 43 43

Amount of harvests p.a. 8 8

Labor planningto supply the module with substrate 2 P / 6 h = 12 h 2 P / 60 h = 120 hApply soil cover the substrate manually 2 P / 4 h = 8 h 2 P / 40 h = 80 hDisperse the soil cover manually 2 P / 3 h = 6 h 2 P / 30 h = 60 hDaily work effort 1 P / 1 h x 43 = 43 h 1 P / 10 h x 43 = 430 h Harvesting & packaging 10 P / 15 h x 3 = 450 h 10 P / 150 h x 3 = 4500 hTotal working hours 519 5,190Labor cost in €/hour (Austria) 18.00 18.00Labor cost in € each growing cycle (Austria) 9,342 93,420* 22,5 % crop yield of total substrate equals 30 % crop yield of amount of compost.

1 Tunnel 10 Tunnel

Module dimensions

Non-binding calculation sample. Investment volume depends on local conditions and actually equipment for the factory.

Cost calculation for a Button mushroom production with the 360 module

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Calculation organic Shiitake productionMushroom yield 0.8kg-1.3kg fresh mushroom each bag

W 6m x L 10 m W 6m x L 10 m W 6m x L 10 m

5 levels, 2 rack rows 5 levels, 2 rack rows 5 levels, 2 rack rowsTurnoverAmount of substrate bags (3 kg) each growing cycle 4,896 19,584 39,168Mushroom yield in kg per bag 1.0 1.0 1.0Mushroom yield in kg each growing cycle 4,896 19,584 39,168Net Sales prices in €/kg 15.00 15.00 15.00Revenue in € each growing cycle 73,440 293,760 587,520Revenue in € p.a. (four harvests per year) 293,760 1,175,040 2,350,080Variable costsOrganic Substrate in € each growing cycle (6,00 €/bag) 34,272 137,088 274,176Packaging caost € each growing cycle (1,50 €/kg in Austria) 7,344 29,376 58,752labor costs in € per growing cycle (Austria) 7,317 29,268 58,536consumable & cleaning material costs in € each growing cycle 450 1,800 3,600power consumption € each growing cycle 1,800 7,200 14,400Maintenance cost in € each growing cycle 750 3,000 6,000total variable costs in € each growing cycle 51,933 207,732 415,464total variable costs in € p.a. 207,732 830,928 1,661,856

Net Profit in € per growing cycle 21,507 86,028 172,056Net profit in € p.a. 86,028 344,112 688,224

Capital Cost Module Material costs mushroom cultivation Module 360 45,000 160,000 320,000Corridor and air-gate 27,000 27,000 54,000Fancom climate control unit 30,000 32,000 35,000Shelving system 20,000 60,000 104,000Construction module, installation, foundation, utilities, social room, storage room, equipment and tools 100,000 300,000 600,000Total one time Investment 222,000 579,000 1,113,000Amortisation period in years 2.58 1.68 1.62

Growth planningGrowing cycles in days 85 85 85

Amount growing cycles p.a. 4 4 4

Harvesting planningto supply the module with substrate 5 P / 6 h 5 P / 24 h 5 P / 48 hopen substrate bags 3 P / 5 h 3 P / 20 h 3 P / 40 hHarvesting & packaging 3 P / 70 h 3 P / 280 h 6 P / 280 hsoak substrate 3P / 8 h 3P / 32 h 3 P / 64 hDaily work effort 1 P / 1,5 h 1 P / 6 h 2 P / 6 hTotal working hours 407 1,626 3,252Labor cost in €/hour (Austria) 18.00 18.00 18.00Labor cost in € each growing cycle (Austria) 7,317 29,268 58,536

1 Tunnel 4 Tunnel 8 Tunnel

Tunnel Dimensions

Non-binding calculation sample. Investment volume depends on local conditions and actually equipment for the factory.

Calculation organic Shiitake production

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About Us SES Resources Ltd designed a Self-sufficient & Sustainable Modular Farming Concept with the vision of providing innovative solutions in turnkey agri-food production for local food consumption, for industrial food processing, animal feed production, food manufacturing, supplements production, seed and enzyme production, molecular diagnostics, food distribution networks and agri-education for rural farmer.

SES intends to develop portable semi-automated mushroom production modules that will ensure the production of quality mushrooms by anyone across the various socio-economic strata thereby providing an innovative solution to poverty eradication, particularly in South African Region. The farming initiative will create massive Jobs and provide a stable income for Rural Farmers and Communities.

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SES intends to transfer agribusiness skills through a Mushroom-Farm Operators Training Program to ruaral farmers, unemployed youth, widows, school children and communities. SES provides marketing and logistic solutions for the mushroom products produced by the Mushroom-Farm Operators. SES appoints sales agent as secondary distributors, integrates selected wholesalers and retail chains in a manner which optimises delivery efficiencies and minimises competitor intrusions.

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About Glückspilze GmbH Our inspiration comes from the tiniest mushroom spores Vision: to enrich our daily food consumption with a vast array of organically cultivated highly nutritional medical and gourmet mushrooms. To achieve this goal, we established a professional state of the art mushroom cultivation facility in Austria. The basic fundamental fungi research at the MRCA Labs in Austria is the basis for our pioneering cultivational and exploratory development. We became partners of the Leopold-Franzens University Innsbruck, Tyrol, Austria and our research in microbiology, pharmacology and botanicals have been internationally recognized and shared.

Our mushroom knowledge Since 1997, we conducted studies abroad and collect know-how from international universities and agricultural nurseries. As a result, we have now a remarkable and comprehensive collection of mycelium cultures. With our R&D knowledge of 15-year on the fungal organism and the development of our 800 square meters’ mushroom cultivation laboratory, we were able to establish the Mushroom Research Center Austria as a respected international institution and became the largest supplier of mushroom cultivation equipment and organic mushroom substrates in Central Europe.

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About MRCA Mushroom Research Center Austria The MRCA Mushroom Research Center Austria is the only organization dedicated to the fungi research and cultivation in Austria and Central Europe. The MRCA shares the during international joint research projects and the training of interns accumulated know-how in agriculture, microbiology, pharmacology and botany with universities and other research institutions in this academic fields. Approach, research objectives Mushrooms are among the oldest life forms on our planet, and yet we know so little about them in our period. That was not always the case, during the Middle Ages, we were far more aware of the many types of fungi and had much more experienced with their use and effects, comparable to Asia. Humanity lost that knowledge throughout the centuries. The MRCA Mushroom Research Center Austria, therefore, carries out basic research as well as the extensive and exemplary cultivation of food and medicinal mushrooms together with renowned international universities and institutes to systematically explore the world of mushrooms again. That is in response to the growing worldwide interest in mushrooms as a valuable source of nutrition, alternative remedies and as raw material for pharmaceutical supplements and the Western medicine. Vision The aim is to explore the potential uses of fungi for food, medicine, cleaning of soil and water (Mykorestauration), pesticides (Mycopesticide) and the industrial use, for example in cosmetics or supplements.

Research and development guarantees Value for the benefit of all!

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Literature fro Mushroom cultivation

Price: 8.90 €*

Medicinal Mushroom The essential guide Author: Martin Powell Practical and informative, Medicinal Mushrooms - The Essential Guide is based on the latest research and clinical experience and covers ten of the major medicinal mushrooms, as well as many of the most common health conditions. 64 pages in full colour covering the top ten medicinal mushrooms: Almond Mushroom (Sun Agaric - ABM), Chaga, Cordyceps, Coriolus, Lion's Mane, Maitake, Mesima, Reishi, Shiitake, Snow Fungus, cross-referenced with common health conditions, including: Asthma, BPH, Cancer, Candida, CFS, Dementia, Diabetes, Erectile Dysfunction, Hayfever, Hepatitis, Herpes, Hypertension, HPV, Infertility, Insomnia, Anxiety, Menopausal Syndrome, Nerve Damage, PCOS, Psoriasis, Arthritis.

Price: 78.00 €*

Mushroom Cultivation IV Appropriate technologies for mushroom growers Author: Peter OEI This manual provides essential information on how to grow mushrooms and gives details for the three most cultivated mushrooms: Button mushroom, Oyster mushroom and Shiitake. Furthermore, cultivation practices for ten other mushrooms are explained, as well as marketing aspects, feasibility studies, mechanisation, climate control, farm management, pests and diseases and post-harvest handling. High tech cultivation of White button mushrooms receives much attention. Mushroom Cultivation IV consists of the complete 2003 third edition, updated with new chapters on Biological control of pests and diseases, Circular economy (separation and recycling casing soil, upcycling waste), Liquid spawn, Innovations in energy saving and sustainable energy production and more.

Price: 29.90 €*

Growing Gourmet & Medicinal Mushrooms Author: Dr. Paul Stamets Expanded to 574 pages and more than 500 photographs and diagrams, this fully updated edition of the internationally acclaimed mushroom grower's guide adds 6 more mushroom species to the 25 species already described. Advanced cultivation techniques for Agaricus braziliensis, Pleurotus tuberregium, Sparassis crispa, Trametes versicolor, Tremella fuciformis and Agaricus brunnescens ("Portobello") mushrooms have been added to the Third Edition. This book covers in detail state-of-the-art commercial cultivation techniques, liquid culture inoculation methods, mycological landscaping, growing room and lab designs, troubleshooting and more.

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Price: 25.90 €*

Mycelium Running How Mushrooms Can Help Save the World Author: Dr. Paul Stamets This book is a manual for the mycological rescue of the planet. Setting the stage for the mycorestoration revolution, Mycelium Running unveils new methods for growing mushrooms, generating mycelium, and implanting mushroom colonies into the environment. Capitalizing on the digestive power of mycelium, this pioneering book shows how to strengthen sustainability of habitats while providing a multitude of biological benefits. Linking mushroom cultivation, permaculture, ecoforestry, bioremediation and soil enhancement, Stamets makes the case that mushroom farms can be reinvented as healing arts centers, steering ecological evolution for the benefit of humans living in harmony with its inhabitants.

Price: 32.90 €*

Medicinal Mushrooms - A Clinical Guide (2nd Edition) Autor: Martin Powell Based on both traditional Chinese medicine and the latest research and clinical experience, this book covers 17 medicinal mushrooms, cross-referenced by condition. It includes a discussion of the major categories of active molecules found in mushrooms, as well as chapters on the evidence for the use of mushrooms in different cancers and for other common clinical conditions, as well as a quick reference guides to the use of mushrooms for different health conditions and a short addendum on their energetic properties according to traditional Chinese medicine. This beautifully illustrated and fully referenced new book based on the latest research covers the most common medicinal mushrooms, focusing on their therapeutic application and cross referencing them according to clinical conditions.

* Prices are minimum selling price in according with federal law about the price fixing for books, include 10 % sales tax.