ABFC2015The Carinata Commercial Supply Chain

Carinata Supply Chain: Secure, Economic, Sustainable

• We are a crop company that has developed an international program for our Brassica carinata “Resonance®” seeds – a “drop-in” product for agriculture

• We have commercialized Resonance with three years of sales over on over 20,000 acres of commercial farming: end products of oil used by the biofuels industry and the meal product sold into commercial feed lots

• We are scaling the crop using an established agricultural value chain model to build a secure, economic and sustainable feedstock supply

• A non-food cousin to Canola, but unique in tolerance to heat, cold, drought and disease

• Produces oil with superior cold flow biodiesel, efficiencies in bio-jet manufacturing

• High protein meal by-product – excellent animal feed

• One of only four crops certified sustainable under RSB (as per EU RED) – the only oilseed crop

• Does not displace existing crops, but provides a option for marginal lands and second cropping rotations

Building the Resonance Carinata Supply Chain

2010 2011 2012 2013 2014 2015 2016 2017 2018

Secure Carinata Exclusivity via Key Canadian Collaborations

Pilot Scale Farming

RSB Certification(Meets EU RED)

Commercial Program LaunchCanada

Commercial Program

Extended to USA

Commercial Program

Launch SE USA (Florida)

100% Biojet Flight

Secure Key Exclusive Commercial Supply

Side and Contracting Partnerships

Conduct Commercial Crush of ‘12 and ‘13

Crop,Sale of Oil and Meal

Meal Approval

D6 & D4 RIN Approval

EU Partnerships, Testing and Agronomic

Support

South America Partnerships, Testing and Agronomic

Support

US Navy Biojet Certification Feedstock

$8MMEquity

Commercial Programs

Canada, USA

$4MMEquity

Initiate EU Testing and Regulatory

Initiate South

America Operations

Expand North

American Production

Carinata Biodiesel in Retail Pumps

Initiate Commercial Production

in EU, South America

EU Regulatory Completed

Off-Takes Underway for

2015 Crop

Goal:• Commercial

Production on Three Continents

• All Certifications Complete

• Supply Chains Established

Porter Airlines Flight

Resonance Carinata Ecosystem:A Connected Supply Chain – From Seed to Biofuels

Seeds Business•HI Gross Margin• Lowest Risk•Effective Inventory

Management

Farming•Variable Gross

Margin•Highest Risk • Look for crop

options to mitigate commodity swings

Elevation & Transportation•Thin Gross Margin•Volume Dependant•Need rapid flow

through system

Crusher•Huge volumes• Fluctuating Margins

that can go Negative•Meal value key

component

Biofuel Manufacturer•Margins swing

significantly• Feedstock costs•Regulatory

environment

• High gross margin with royalty opportunity

• Use service agreements to produce and manage inventory

• Seed sold to farmers in 22.5 kg units (50 lb bags), using partner’s distribution network, retail presence and sales infrastructure

• Co-Marketing strategy for accessing growers

• Dedicated product support

Seeds Business:Feeding the Value Chain

Farmers:Growers are Our Primary Customer

• We provide a crop option with real world economics that meet or exceed other crop choices

• Carinata is a low risk crop option that integrates into their farm operations without disruption of other cash crops

• Farmers carry the risk of crop failure, weather etc., we secure crop insurance and offer risk mitigation tools

Competing Crop Metrics

Reference area - Brown zoil zone, Stubble seeded crops

Primary crop competition - Durum wheat and canola Wheat Canola

Revenue Yield (Tonnes./ac.) 0.88 0.53 0.72 0.78 1.00 1.00

On Farm Market Price, $/Tonnes of Grain Delivered (Average) 257.13 460.64 447.76 400.67 335.00 300.00

Total Revenue $ / Acre (Tonnes/acre X $ per tonnes of Grain) 226.80 242.44 322.39 312.52 335.00 300.00 Farmer Gross Revenue Received (see notes)

Farming

Variable Costs Seed for Planting 18.45 51.25 30.00 30.00 40.00 40.00 Agrisoma Seed Sales (see notes)

Fertilizer

Nitrogen 36.85 40.20 40.20 40.20 50.25 50.25

Phosphorus 17.10 17.10 17.10 17.10 21.38 21.38

Sulphur and Other 0.00 7.20 7.20 7.20 9.00 9.00

Chemical

Herbicides 16.72 18.75 17.09 17.09 17.09 17.09

Insecticides/Fungicides 1.86 2.88 1.44 1.44 1.44 1.44

Other 2.70 0.00 0.00 0.00 0.00 0.00

Machinery Operating

Fuel 16.66 17.64 20.58 20.58 20.58 20.58

Repair 5.10 5.10 5.10 5.10 5.10 5.10

Custom Work and Hired Labour 17.50 16.25 15.50 15.50 15.50 15.50

Crop Insurance Premium 7.67 19.41 11.18 11.18 11.18 11.18

Utilities and Miscellaneous 5.32 5.32 5.32 5.32 5.32 5.32

Interest on Variable Expenses 3.06 4.22 2.82 2.82 2.82 2.82

Total Variable Farming Cost / Acre 148.99 205.32 181.03 181.03 199.66 199.66 Farmer Costs of Production

Gross Margin / Acre 77.81 37.12 141.36 131.49 135.35 100.35 Farmer Gross Margin on Production

Carinata

Reference area - Brown zoil zone, Stubble seeded crops

Primary crop competition - Durum wheat and canola Wheat Canola

Revenue Yield (Tonnes./ac.) 0.88 0.53 0.72 0.78 1.00 1.00

On Farm Market Price, $/Tonnes of Grain Delivered (Average) 257.13 460.64 447.76 400.67 335.00 300.00

Total Revenue $ / Acre (Tonnes/acre X $ per tonnes of Grain) 226.80 242.44 322.39 312.52 335.00 300.00Farming

Total Variable Farming Cost / Acre 148.99 205.32 181.03 181.03 199.66 199.66

Gross Margin / Acre 77.81 37.12 141.36 131.49 135.35 100.35

Carinata

Elevation and Transportation:Leveraging Existing Asset Bases

• Logistic providers seek to have greater flow through facilities

• Similar handling costs to other crops, margins below 10%

• Contract production model manages working capital burden of Carinata production: farmer payments and credit

• Logistic costs are historical

Service Provision Model

Crushers:Processors of Grain into Oil and Meal

• Highly volatile margins that can go negative but can also be very strong

• Meal contribution (e.g., global value for protein) is significant element to positive margins

• Volume drives costs and impacts price of feedstock

• High protein meal of Carinata adds to margins

Crush Margins

Biodiesel:A Globally Mandated Product

• Significant Volatility on Margins

• 1.7 B gallons of installed capacity in North America

• Carinata offer blending advantages as well as low CI, D6, D4 RINs • New Regulatory Pathways to Monetize ILUC and LCA increases Margins

• Margins heavily influenced by Regulatory Compliance:RFS2 in USA – RINs, Blenders tax credit

EU RED – compliance under EU directives64 Countries with Varying Mandateshttp://globalrfa.org/biofuels-map/

Economics:The Supply Chain Works for Resonance Carinata

• Farmer: • Reduced risk profile for the farmer with competitive returns• Good rotation benefits, no new equipment needed• Clear pricing on contract

• Value Chain: • Elevation and logistics similar margins• Crush margins similar or better• High protein meal

• Biofuel Manufacturer: • Can compete with existing vegetable oil (including RINs) • Upgrade low quality biodiesel to high specifications • Low CI for lucrative markets

Our Focus: Scaling Across The Key Target Geographies

Canola Pricing

Displace Canola – makes better biodiesel for Northern USA and EU

Certified sustainable low CI biodiesel

Displace Soybean & Rapeseed – opens entire USA and broader global biodiesel market

Certified sustainable and low ILUC biodiesel

Displace Palm – opens global markets for renewable diesel and biojet

A economic and sustainable replacement for palm oil in global biofuel markets

Expansion of Acres in Low-Cost Production Regions (Dryland Agriculture, Second Crop Options) to Drive Economics and Scale

Canada

USA

Southeastern

USA

Europe

Australia

So. America

The Biofuel Markets:The Big 3 Regions and the Rest of the World

North America, Europe and South America represent the major Biofuels MarketsBiodiesel has been the fastest growing biofuels segmentLocal production of soy, canola and rapeseed drives scale

BP Statistical Review of World Energy 2014

Why do We Work in 3 Large Markets Simultaneously?

• Biofuels is a Global Industry that needs a Global solution• EU, North and South America are 75% of the Global Market

with significant trade patterns and export potential• Have developed strong Off-Shore Strategic partners for

building the value chain• Crop has strong performance immediately and there is a

clear path to optimized varieties for each region• Fit with Regional Policies: Non-Food, RSB Certified, Low

ILUC and favorable LCA and CI

Sustainable Production of Biofuels:Resonance Carinata hits all of the major criteria

• USA: Carinata LCA meets and exceed the 50% GHG reduction under EPA Models (D4, D6, Biomass Diesel)

• Canada: Approved as an Advanced Biofuels Feedstock under Alberta RFS, exceeding 50% GHG reduction

• EU: RSB Certification recognized under EU Renewable Energy Directive (RED)

• South America: double cropping under same protocols that provide RSB certification in North America

• Cultivation in rotation provides for an even lower LCA and a very low ILUC and CI, e.g., double cropping in Florida, France, Uruguay

Critical Milestones Achieved

Commercial: From Farming to Fuel

• Three years of commercial seed sales in two major geographies (Canada, USA) with full marketing and customer support

• Grain management program in place including crush and sales and delivery of Carinata oil and meal

• More than 2MM Litres of Carinata biodiesel in retail pumps with largest biodiesel manufacturer in USA, all meal sold into commercial feedlots

Regulatory: Multiple Regulatory Approvals in Place

• Regulatory meal approval – protein by-product certified for feed use

• Sustainability certification – RSB awarded certification, only one of four crops certified globally, EPA RFS D6, D4, AB certification awarded, BC and CA certifications underway

Scaling: Partners and Support for Global Scaling

• Commercial partnerships for Carinata production - Northern Tier, Australia & Southeastern USA, France, Uruguay

The world's first civilian flight powered by 100% biofuel made from Resonance took off over Canada's capital, with Popular Science showcasing this as the big

story for sustainable biofuels

http://www.youtube.com/watch?v=UUPzXe7jzSU&feature=player_embedded

We Service the Biodiesel Market, But Biojet Remains a Large Upside:

Why Resonance Carinata?Familiar, Proven on the Farm and Backed by an Established Supply Chain

• Familiar: Unlike other new energy crops, Carinata leverages the Canola experience to enable rapid scaling – farmers know how to grow the crop and recognize the benefit this crop brings to their farming operations and their farm incomes. Farmers want and need new crop options.

• Proven: Over 20,000 acres with over 130 growers, >2MM Litres of oil used by largest biodiesel manufacturer in the USA, meal sold into beef markets, proven sustainable and low carbon footprint – the only crop in this elite class that is the new standard for sustainable biofuel feedstock

• Backed by Value Chain Investment: using the commitment of established global, commercial partners and grower organizations, Carinata is a profitable crop of choice for all of the value chain participants

The Carinata Supply Chain:Hitting the marks for a scalable supply

Seeds BusinessThis is a

profitable step in the value chain

FarmingThe crop

provides farmers with a “in-line”

return

Elevation & Transportation

No changes needed, scale

makes this cost-effective

CrusherHigh Protein Meal offers good crush

economics

Biofuel ManufacturerWe are able to

offer competitive cost oil, D4, D6

RINs

Thank You

Steven Fabijanskisfabijanski@agrisoma.com