Connecticut Lakes Timber Company Transaction

The Lyme Northern Forest Fund, a timberland investment fund managed by The Lyme Timber Company, announces the pending sale of the Connecticut Lakes Timber Company to Heartwood Forestland Fund VI (“Heartwood”), a timberland investment fund managed by The Forestland Group, a timberland investment management organization based in NC. Lyme acquired this property in Northern New Hampshire in 2002, after having spent the previous year and one-half working with the Citizens Advisory Committee, elected officials, State of New Hampshire agencies, Trust for Public Land, The Nature Conservancy and The Society for the Protection of New Hampshire Forests to design a “working forest conservation easement” that permanently protects this land from fragmentation and development, assures public access and requires sustainable forest management practices. The working forest conservation easement “runs with the land” and The Forestland Group will manage this land under the terms and conditions defined in that easement. The State of New Hampshire was informed of the pending sale, since it holds a right of first offer, but has decided not to exercise that right at this time. The sale is expected to close in early summer. Lyme is pleased to have been involved in this ground breaking conservation effort. The Forestland Group is an FSC Certified, highly experienced manager of hardwood timberland and currently holds other lands subject to working forest conservation easements. Both Lyme and Heartwood expect a nearly seamless transition. The Forestland Group has selected LandVest, a forestland manager with New Hampshire operations to conduct day to day management of the Connecticut Lakes Headwaters forest. LandVest will be occupying the same woodland office in West Stewartstown that has served as the office for the property for nearly a hundred years. Public use of the property will remain unchanged and the existing cabin site leases will all be assigned to Heartwood.