The forest in question together with pastures covers the area of 6.368.373m2 as it is stated in the legal document of ownership issued by the Land Registry of Kotor and sent to you for inspection. The area under the trees is about 500 hectares,exclusively beech forest. The age of trees is from 20-50 years.It is mostly technical wood.

According to estimates of a forestry engineer engaged by us in May this year,one hectare of the forest contains from 150 m3 to 200 m3 of wood material.
The area is unique for growing beech and trees extremely quickly regenerate due to karst soil and abundant rainfalls in the region of Reovci – Mount Orjen – Crkvice ( the greatest quantity of rainfall on a square meter in Europe ).
The forest stretches on 800 – 1200 m above the sea level.
In the immediate vicinity of the forest there is a public – international road which passes across the peak called Orjen Sedlo and then runs down across Krusevice to the city of Herceg – Novi.
From Risan,an international sea – port, runs an asphalt road about 10 km long,and macadam road 8 km long.It is necessary to note that it is a hard road with stone support which can be utilized even in the periods of most abundant rainfalls.
Before 1990 the State operated the forest in this area,the wood being extracted by heavy duty trucks.The road is at least 5 m wide.
In the very forest there is a hard wood road also built in stone,which is stretching in two directions and makes each part of the forest accessible.
It may be useful to repeat that the forest is a private property owned exclusively by the family Samardzic.
The procedure for exploration of the forest has been determined by the Law that regulates utilization of forests in Montenegro and by the Book of regulations concerning marking and harvesting of deciduous and coniferous trees.
For cutting down the trees there must exist a project and plan which have to be approved by the Forestry Deparment of Montenegro with the main office in the city of Pljevlja and local branches in the cities of Niksic and Kotor.
In Kotor it is possible to obtain previous projects concerning this forest.
Exploitation of beech forest is not limited,the export being done in two forms: as firewood – cleft short logs 33 cm. long,on palettes of 2m3 each,currently exported to Italy at the price of about 40 EUR/m3 free on board.
If the beech is exported in logs,the price of class III logs is from 45 EUR/m3 to 50 EUR/m3.
According to the Law on Trading Companies of Montenegro,foreign juristic and physical persons are completely equalized with domestic persons regarding conditions for bussines transactions and taxes.
Tax paid to the Forestry Department amounts to 9 EUR/m3 for technical wood and 2 EUR/m3 for firewood.
In the area of the forest there is not running water or rivers and streams but there is a spring drinking water which does not dry up even in the summer months.There are also tanks for water built in stone.
In this region there are two factories for processing and export of lumber,one in the city of Cetinje,the other in the city of Niksic.
Registration of the company that would deal with exploitation of wood is quite simple and can be finished in 5 – 6 days with the authorized court and is ussualy registered as D.O.O. (LTD).
The nearest village is at the distance of about 4 km and it has electric power.
In the course of the year 2007,a modern highway with two lanes,leading from Risan (settlement Lipci) is going to be finished and the forest will be only 6-7 km far from it,which makes it the nearest and the most convenient location for exploitation owing to extremely small transportation costs as the port of Risan is in the immediate vicinity