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Innovative Silica Technologies, LLC

Business Plan

August 2016

For more information please contact:

Leo Gingras, CEO

leo.gingras@istsilica.com

(870) 830-7703

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Table of Contents

Page

Disclaimers and Instructions 3

Executive Summary 4

The Global Silica Market

Types of Silica 6

Use of Silica 6

Quantities Sold 7

Pricing 7

The IST Advantage

Patented IST Technology 8

Conventional Silica Manufacturing 9

IST Cost Advantage 11

Sustainably Produced Silica 11

Marketing Strategy

StratoSil® Silica 12

Market Segments 12

Market Entry and Prospective Customers 12

Growth Potential 13

Financial Information

Current Funding Round and Future Expansion 14

Pro Forma Income Statement 15

Investor Value 16

Operations

Raw Material Supply 17

Plant Design and Operation 17

Plant Engineering and Construction Timeline 18

Management 19

Appendix A - StratoSil® Technical Information 21

Contact Information 23

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Disclaimers and Instructions

This Business Plan includes certain projections and other forward-looking statements provided

by Innovative Silica Technologies, LLC (“IST”) with respect to the anticipated strategy and

future performance of the company. Such projections and forward-looking statements reflect

various assumptions of management concerning the future performance of the company, which

assumptions may or may not prove to be correct. Actual results may vary from the anticipated

results, and such variations may be material. No representations or warranties are made as to the

accuracy or reasonableness of such assumptions or any forward-looking statements based

thereon.

This Business Plan is provided only for general informational purposes and does not constitute

an offer to sell or a solicitation of an offer to buy any IST securities. IST does not intend to

solicit and is not soliciting any security through this document. To the best of IST’s knowledge,

the information provided herein is materially correct and accurate. Neither the Company, nor its

representatives, shall have any liability as a result of your use of this Business Plan Summary. It

is understood that only those particular representations and warranties, which may be made by

the company in a definitive agreement, when and if it is executed, shall have any legal effect.

By accepting this Business Plan, the recipient acknowledges and agrees that all of the

information contained herein is Confidential. The recipient: (1) will not reproduce or distribute

this Business Plan to any person, in whole or in part, at any time, without the express written

consent of IST; (2) will keep all information and the fact that it is evaluating the company and

the status thereof Confidential; and (3) will, if requested, return to IST this Business Plan

Summary together with any other material relating to the company which the recipient may have

received from or on behalf of the company.

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Executive Summary

Transaction Overview

Innovative Silica Technologies, LLC (“IST” or the “Company”) is seeking to raise a total of

$ 23 million for construction of an initial 10,000 ton per year (tpy) amorphous silica production

plant. A lender has verbally committed to provide a $ 5 million loan, thus leaving IST to raise

$ 18 million from investors. Annual earnings before interest, taxes, depreciation and

amortization (EBITDA) from the initial facility is conservatively estimated at $ 20 million.

IST Technology Overview

Rice hulls, a low-value by-product of the rice milling industry, contain approximately 20 % silica

by weight, by far the highest level of naturally occurring silica of any major agricultural

commodity. Rice hulls typically present a disposal challenge for rice mills. IST founder Larry

Shipley developed and patented a unique approach to pre-treating rice hulls and then incinerating

them to remove all carbon based materials, leaving behind a high-purity, all natural, silica. Not

only does this process result in all-natural, sustainably produced silica, it also has a very low

production cost relative to conventionally manufactured silica which is made from sand. The

patented IST process has been validated through extensive piloting in full-scale processing

equipment.

The Silica Market and StratoSil®

The global silica market is in excess of $ 9 billion annually and growing at 5 % per year by

volume and 7 % per year by revenue (sales of more expensive forms growing faster). Presently,

100 % of this market is supplied by silica produced from sand with chemical and energy

intensive processes. Silica is utilized in a wide array of applications including food, toothpaste,

personal care items, coatings, resins, sealants, elastomers, anti-foams, electronics, adsorbents,

paper and plastics. For silica to be useful in these applications it must be in the amorphous, or

non-crystalline form. The conventional process for silica manufacture breaks down the crystal

structure of silica in sand – which takes considerable chemical and energy input which is quite

expensive. The silica found in rice hulls is naturally amorphous, the rice plant itself deposits

silica in the non-crystalline form – therefore the IST process is low intensity and low cost, and

all-natural. IST’s StratoSil® silica has been tested in a number of applications and was

consistently found to be equal to or better than conventional manufactured silica. In addition,

StratoSil® purity is equal to that of the most expensive silica products on the market today. See

Appendix A for full compositional and quality information for StratoSil® silicas.

Facilities Timeline

IST will construct its initial 10,000 tpy facility within the rice growing region of Arkansas. IST

has obtained a supply commitment from a major rice milling company to supply enough rice

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hulls to produce more than 20,000 tpy of StratoSil®. IST’s plan is to initially construct a 10,000

tpy production line and then fund future construction of additional 10,000 tpy production lines

with cash from operations and perhaps project debt. Permitting for the initial production line is

straightforward since the IST process is low intensity and is considered a “minor source” of air

emissions and wastewater. All process equipment utilized in the facility is “off the shelf”

machinery and readily available. A 12 month start to finish cycle is envisioned for construction

of the first plant.

Financial Overview

The patented IST process represents a transformational technology. Advantaged feedstock and

processing costs, coupled with the high quality of StratoSil®, result in extremely attractive

economics.

Pro Forma Income Statement ($ 1,000’s)

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The Global Silica Market

Types of Silica

There are three general types of specialty amorphous silica products in the marketplace that

StratoSil® will compete with: precipitated silica, silica gel and fumed silica. Each is made from

sand as the raw material. Precipitated silica is the largest by volume and the least pure in terms

of silica content. Fumed silica has the highest purity. Silica gel is a hydrated form of

precipitated silica.

Composition of specialty amorphous silicas compared to StratoSil®

Within each of these categories there are even more specialized (and more expensive) silica

products whereby the silica has been further modified to provide some specific functionality.

Uses of Silica

Though not widely recognized, silica materials are important components in a wide variety of

products of daily life, ranging from tires to toothpaste, where they impart desirable properties

such as abrasion or abrasion resistance, adsorption, insulation, and viscosity control. These

silicates and silicas are produced in a variety of forms, are non-hazardous materials, and do not

present any significant environmental concerns. Most importantly, the widely-used amorphous

silica products do not exhibit health hazards associated with crystalline silica. Amorphous silica

is non-toxic and occurs naturally in well water and most foods. As a result, amorphous silica

enjoys an image as safe, non-controversial and inert ingredient.

Applications for amorphous silica

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Quantities Sold

The global market for specialty amorphous silica is in excess of 2.2 million tons per year.

Further, it is growing at a rate of 5 % annually. This is due to increasing world populations and

the resulting demand for various products that either contain silica or are processed in some

manner by silica. In addition, the silica market is further enhanced by increasing per capita

wealth in developing countries which drives demand for items such as personal care products

and cosmetics.

Past, present and future demand for silica in 1,000 metric tons (source: the Freedonia Group)

In recent years, precipitated silica sales have increased by 6 % annually. Sales of silica gel and

fumed silica have increased by approximately 4 % annually.

Pricing

Pricing for conventionally manufactured silica is generally dictated by the cost of production,

which is relatively high. Currently, the market is supplied by a handful of manufacturers, each

utilizing the same non-proprietary methods and inputs. The cost to produce StratoSil® is quite

low, making IST’s approach to producing silica transformative as well as very profitable.

As you will note from the table below, fumed silica carries a much higher price than precipitated

silica and silica gel. This is due to the extreme processing, with its high cost, required to obtain a

high purity of silica. As noted in “Types of Silica” above, StratoSil 200® purity is on par with

fumed silica.

Past, present and future prices for silica in the U.S. ($/lb.) (source: The Freedonia Group)

The values above reflect average pricing for un-modified silica. Silicas that have been further

modified to enhance functionality carry a significantly higher price.

Precipitated silica and fumed silica prices have been growing at a rate of approximately 2.7 %

annually. Silica gel pricing has been more stable, growing at about 0.8 % annually.

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The IST Advantage

Patented IST Technology

Since commercial production of rice began, rice mills have struggled to dispose of the hull

residues from milling, which contain about 20% by dry weight of amorphous, microporous silica

extracted from soil by the rice plant. Direct combustion, to recover the energy value of the

biomass, creates a residual silica waste stream which contains crystalized silica and residual

carbon, thereby rendering the product useless. IST founder Larry Shipley developed and

patented novel technology which transforms the rice hull disposal problem into a significant

commercial opportunity, by efficiently producing a high-purity amorphous silica product,

StratoSil®. The IST process has undergone extensive development and piloting in full scale

process equipment. The result is a robust process without the typical scale-up risks of an early

stage technology.

The key to IST’s technology is the patented pre-treatment process whereby hulls are first washed

with a dilute citric acid solution followed by a dilute hydrogen peroxide wash. The citric acid

chelates and removes trace metals and alkali oxides which act as a flux when untreated hulls are

burned. The hydrogen peroxide treatment partially oxidizes the carbon polymer chains. These

treatments dispose the hulls to burn cleanly and efficiently, leaving behind only a pure

amorphous silica product without the bound impurities seen when un-treated hulls are burned.

The citric acid utilized is a food grade material (think lemonade) and the hydrogen peroxide is

more dilute than what’s in your medicine cabinet. A very low intensity process.

The IST process utilizes the heat obtained from combustion of the treated rice hulls to dry the

wet, treated hulls as well as make distilled water by way of condensing the steam produced in a

boiler. The process produces minimal amounts of low biochemical oxygen demand contact

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water to be treated in a reverse osmosis system to allow re-use of most of the water. Air

emissions are minimal. The IST process uses no fossil fuel for heating and therefore has a small

carbon footprint – and cost structure. Rice hulls are both the raw material and fuel.

Results of conventional combustion of rice hulls compared to the IST process

The IST process was extensively tested over a period of many months within a large scale pilot

plant where 30,000 lbs. of StratoSil® was produced for use in applications studies and customer

sampling. The pilot was located within another company’s facility and was dismantled after the

pilot work was concluded as the host needed their facility space for other purposes.

IST Pilot Plant

Conventional Silica Manufacturing

As discussed previously, the key to high priced silica is to have a 100 % amorphous or non-

crystalline form. While IST lets Nature do the work of depositing amorphous silica into rice

hulls the chemical industry uses brute force to break down the crystalline structure of sand. In

the case of precipitated silica, sand is first reacted with soda ash (caustic) in high termperature

furnaces to make sodium silicate. Sodium silicate is then dissolved in water and sulfuric acid is

added until amorphous silica precipitates out of solution. The acidic silica is then washed and

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dried, followed by milling and packaging. The process uses a great deal of heat which is

generated from fossil fuels. The chemicals involved, soda ash and sulfuric acid, are high

intensity and dangerous materials that carry a large carbon footprint of their own. The intense

nature of the inputs results in a high cost process. Wastewater and air emissions are also high.

Precipitated silica manufacture by conventional means from sand

If making precipitated silica is intense the process of making fumed silica is extrodinarily

intense. To obtain high silica purity (which we obtain naturally with StratoSil®), producers of

fumed silica must create chemical intermediates such as molten silicon and silicon tetrachloride

in a very intensive process conducted at very high temperatures. This results in a very high cost

structure for fumed silica. Wastewater and air emissions are also high.

Fumed silica manufacture by conventional means from sand

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In summary, the IST process of retreiving naturally deposited amorphous silica from rice hulls

could transform the entire silica industry over time. IST’s low intensity process provides a high

quality silica without the high energy/chemical use, high cost and large carbon footprint of

conventional silica manufacture.

IST Cost Advantage

While IST technology offers an Earth-friendly, low carbon footprint approach to making high

quality silica, there is also a significant cost advantage to making silica in this manner. Unlike

many other “green” or “cleantech” projects, IST will offer customers a reasonably priced product

with the added virtue of sustainable, Earth friendly production.

Sustainably Produced Silica

IST firmly believes in good stewardship of our planet and resources. To us, sustainably

producing silica from rice hulls will reduce the environmental toll on future generations which is

simply the responsible thing to do.

Combustion of rice hulls does not contribute to net carbon dioxide (CO2) concentrations in the

atmosphere since the next rice crop simply absorbs this CO2 in a continual cycle. In addition, the

IST process utilizes the heat from combustion of treated hulls to dry treated hulls and to make

distilled water, thus avoiding the use of fossil fuels. The IST process has a small carbon

footprint which comes mostly from the electricity our process will utilize. We did consider

installation of a cogeneration system to produce electricity from rice hull combustion (in addition

to making distilled water and drying treated hulls) but we decided this was not a wise

deployment of capital as compared to building additional IST based silica capacity and thus

reducing the production of conventional silica and reducing emissions from that source.

Carbon Dioxide emissions from producing one ton of StratoSil® and conventional silica

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Marketing Strategy

StratoSil® Silica

There are two forms of StratoSil® amorphous silica. StratoSil 100® is 92 % silica and a direct

alternative to precipitated silica. StratoSil 200® is 99.95 % silica and a direct replacement for

fumed silica. StratoSil® silicas are completely food grade, with high standards for trace metals

content and microbiology. Appendix A contains technical information for each of the products.

Market Segments

IST has done extensive silica market analysis along with applications studies. We believe that

StratoSil® will fit well into most existing applications that utilize precipitated silica and fumed

silica.

Market segments for StratoSil®

Market Entry and Prospective Customers

IST’s marketing strategy for positioning StratoSil® has three general components:

1. StratoSil® is a high quality silica with great functionality

2. StratoSil® is sustainably produced and a biogenic (biological origin), all natural silica

3. StratoSil® has a low cost of manufacture

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IST has engaged a number of prospective customers and each has a unique set of “wants” that

touch on one or more of the above attributes. For example, food, toothpaste, personal care

products and cosmetics customers are interested in the sustainable production aspects and natural

source as well as functionality. For more “industrial” customers in the coatings and elastomers

space, price is a major consideration as they are often fumed silica users.

IST’s first production plant will produce 10,000 tpy of StratoSil®. This represents approximately

0.45 % of global silica sales at present. And, the silica market is growing at about 5 % annually

– enough to absorb production from about 11 production lines the size of IST’s initial plant.

IST has done an extensive outreach to major silica buyers to make them aware of StratoSil®.

Most of these are large, sophisticated organizations with the abilty to assess StratoSil® in their

laboratories. Several are waiting for IST to have production capacity in order to committ to

purchases

Prospective customers contacted and sampled with StratoSil®

Growth Potential

As indicated previously, the specialty silica market is quite large, presently at 2.2 million tons

per year and growing at 5 % annually. StratoSil® is a high quality silica that will obtain good

market acceptance. We anticipate that growing the Company will be a straightforward matter of

constructing additional processing lines and marketing this new capacity. Unlike conventional

silica plants that require large facilities to obtain economies of scale, IST technology may be

employed by the incremental addition of 10,000 tpy processing lines at one or more locations.

These smaller lines offer very low cost of goods and are easily contructed.

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Financial Information

Current Funding Round and Future Expansion

IST is currently seeking $ 23 million to fund construction and startup of its first commercial

plant. A lender has verbally commited to providing a $ 5 million loan, thus leaving IST to obtain

$ 18 million from investors. The first facility will be located within the rice growing region of

Arkansas (for ready supply of rice hulls) and will have a capacity of 10,000 tpy of StratoSil®

production. Anticipated EBITDA for the first year of operation is $ 20 million.

In our engineering analysis we have determined that 10,000 tpy StratoSil® production lines offer

the optimal mix of low production cost and product quality. The plan is to continue building

StratoSil® capacity for years to come to help meet the ever increasing demand for silica.

Financing of this additional capacity will be accomplished via retained earnings, potentially in

addition to project debt.

As we build future capacity it will be in increments of 10,000 tpy StratoSil® lines. This is a very

efficient manner to conduct the buildout in that equipment components will be the same from

line to line. This also facilitates construction, maintenance, operator training and assures that

product from each line will be exactly the same quality. In essense we will be building out

capacity in a modular fashion.

Over a period of several years we anticipate building to a capacity of at least 60,000 tpy of

StratoSil® output. The pace at which we construct new capacity will in fact be governed by our

ability to fund the construction without taking on additional equity, thus preserving ownership

percentages for IST and the new investors.

The buildout sequence for StratoSil® capacity will be dictated by how many production lines

may be supported by the rice hull supply in a given area. The table below assumes two

locations, Arkansas and California. The initial line and two more 10,000 tpy lines will be

located in Arkansas. An additional three lines are anticipated for construction in the rice

growing region of California.

Current concept of buildout for StratoSil® production

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Future buildout beyond the six production line scenario above may include both U.S. based

plants and overseas facilities. There are sufficient rice hulls in the U.S. to produce around

300,000 tons of StratoSil®. Less than 10 % of global rice hull production would be required to

produce enough StratoSil® to supply 100 % of the global silica demand.

Pro Forma Income Statement

As indicated previously, the cost of producing StratoSil® from rice hulls via IST technology is

quite low relative to conventional silica. In the following pro forma income statement you will

note that average StratoSil® prices are in line with precipitated silica prices. We fully anticipate

that StratoSil 200® will replace very expensive fumed silica in many applications. That said, we

went with lower assumed prices to remain conservative in our projections.

Also, please note that the following pro forma income statement is based on the capacity

buildout schedule as presented under the “Current Funding Round and Future Expansion”

section above.

Pro Forma Income Statement ($ 1,000’s)

As you will note, the first two years of operation entail production and marketing of 10,000 tpy

of StratoSil®. The concept is to accumulate cash that will allow us to fund construction of the

second line (10,000 tpy) and bring it online in 2020 without further equity dilution for IST and

the new investors.

Once the second production system is online in 2020 we will add 10,000 tpy of capacity each

year. This rate of construction may easily be ramped up as the cash flow generated will be more

than ample to support a more aggressive buildout strategy.

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Investor Value

Given the cash flow generation indicated in our modelling, there is tremendous financial

potential in the business. If we assume a 10 times EBITDA valuation for the business it has a

calculated value of close to $ 1.6 billion in 2024.

IST Valuation over time

For an initial $ 18 million investment, investors will do extremely well with this project.

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Operations

Raw Material Supply

Rice hulls are a very low value by-product of the rice milling industry. In the U.S. hulls are

typically sold for about $ 10 per ton for use as poultry bedding. Another alternative is to blend

hulls with rice bran to produce mill feed, a low value animal feed ingredient. However, such

blending devalues the rice bran so mill feed is generally viewed as a disposal approach for rice

hulls rather than bringing any additional value.

IST has been in discussions with one large rice milling company that has expressed a willingness

to supply enough rice hulls to produce more than 20,000 tpy of StratoSil®. Other millers have

expressed an interest in supplying similar amounts. IST Management is confident that obtaining

rice hull supply will not be an impediment to growing the business. The prices offered by IST

will be very attractive to rice millers.

The U.S. has a significant amount of rice hulls

In addition, there is 120 million tpy of rice hulls generated in other parts of the World where rice

is much more predominant crop. IST management is well connected in these areas.

The entire global silica market could be supplied with the StratoSil® produced from less than

10 % of the Worlds rice hulls.

Plant Design and Operation

Plant design is straightforward and relatively simple. The key steps in producing StratoSil® are:

1. Aqueous treatment with citric acid and hydrogen peroxide

2. Drying the wet treated hulls

3. Incineration of the dry treated hulls to remove carbonaceous materials

The aqueous treatment with citric acid and hydrogen peroxide is accomplished with a Crown

Iron Works model 4 extractor. This unit is essentially a long enclosed conveyor with several

tank sections built into it. Hulls are slowly conveyed through each successive tank section in one

direction while water flow is in the opposite direction. Citric acid and hydrogen peroxide are

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added at the appropriate spots to accomplish the treatment. The counter current flow of the

system provides maximum efficiency in treatment and conserves water. As treated hulls exit the

system they are washed by incoming distilled water. Contact water is minimal at about 50

gallons per minute for a 10,000 tpy StratoSil® line. This water will be treated in a reverse

osmosis unit to re-capture and re-use most of the water.

When the hulls exit the treatment system they contain about 60 % water and must be dried. We

plan to utilize a standard biomass drier for this purpose. This will be a rotary drum type of drier.

There are a number of companies that manufacture these systems but we are leaning toward a

Thompson drier as the company has a very solid reputation.

The last step is to incinerate the dry, treated hulls to burn away all the carbonaceous materials,

leaving behind pure silica. A McConnel burner is a standard biomass burner that can easily

accomplish this.

Each of the systems discussed above is “off the shelf” and readily available. Similarly, the other

equipment for the plant is readily available. Once the hulls are incinerated, the resulting purified

silica is relatively coarse in particle size. A Sturtevant air mill will be utilized to reduce particle

size to customer specifications. Packaging will be straightforward, into 50 lb. bags or bulk

sacks.

Ancillary equipment includes rice hull conveying and storage and a steam boiler designed to

capture the heat from the incineration to produce distilled water for the treatment process.

The entire process will be controlled by a progammable logic controller (industrial computer)

and software designed to efficiently and safely maintain process parameters.

Utility usage for the plant is minimal. Approximately 0.7 MWH of electricty and 20 mmBTU of

heat are utilized for each ton of StratoSil® produced. Fossil fuel usage is eliminated as we plan

to utilize heat from rice hull conbustion to provide heat for the drier and distilled water system.

Plant Engineering and Construction Time

IST has collaborated with the Memphis based engineering firm, Frazier, Barnes and Associates

in the design and costing of the production plant. FB&A will assist in the construction of the

initial facility as well. We anticipate a 12 month construction timeline.

Construction of the facility will be straightforward. The three major subsystems, aqeuous

treatment, hull drying and hull incineration will come pre-packaged and largely assembled. The

remaining items are relatively small and easily installed. Local contractors will be utilized for

installation, electrical and instrumentation. IST Management will provide project supervision.

We have not yet finalized a site for the initial plant and are looking at a number of options.

Permitting for air and water emissions will be easily accomplished as the plant is considered a

“minimal source”. The Arkansas Economic Development Commission will provide assistance in

site selection and benefits (tax, employee training, etc.) for the first facility.

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Management

Leo Gingras, Chief Executive Officer and Larry Shipley, Chief Technology Officer, are the key

personnel at IST. Each brings a great deal of experience and knowledge to the project.

Leo Gingras

Leo has over 30 years of experience in the global food, feed and agriculture industries. His most

recent assignment before IST was CEO of Nutrinsic Corporation, a Denver based company

engaged in production and marketing of single cell protein. Prior to Nutrinsic he worked for

NutraCea, an Arizona based producer and marketer of products derived from rice bran, as

President and COO. Prior to NutraCea, Leo was a Senior Vice President at Riceland Foods, a

major commodity processor that supplies food and feed ingredients to top companies around the

world. Leo began his career with Lou Ana Foods, a producer and marketer of edible oils where

he worked in the processing, quality assurance and research departments. He holds a MS degree

in Biology and a MBA degree from the University of Louisiana and a BS degree in

Chemistry/Biology from Saint Anselm College.

Leo has an extensive business and technical background and has developed a number of new

businesses and built a number of new production facilities. He is well known to the U.S. rice

industry and has global connections.

Larry Shipley

Larry Shipley is a highly accomplished process engineer and innovator with a 39 year career in

the chemical process industry encompassing operational, technical, and site management

functions. In addition to operational experience, he brings an extensive background in process

development and optimization, as well as plant engineering and construction. Mr. Shipley

started his career with Alcoa in Bauxite, AR, where he assumed supervision of an eight person

technical engineering group within two years. At Alcoa he identified a critical process

bottleneck and implemented a creative and highly cost-effective $15K solution which doubled

plant capacity, avoiding a planned $10MM capital expenditure. Seeking advancement in a

higher value added industry segment, Mr. Shipley gained experience in polymers and plastics

with successive mid-career assignments at General Electric Plastics and Uniroyal Chemical, with

significant technical and operational accomplishments at each company. In 1985 a former GE

colleague recruited Mr. Shipley to Advanced Polymer Systems, a venture-capital backed start-up

to produce polymer-encapsulated active ingredients under Good Manufacturing Practices

procedures. At Advanced Polymer Systems he designed the manufacturing process, supervised

construction, and became Plant Manager. In 1993 Mr. Shipley formed his own consulting

company to apply his skills to a wider range of chemical manufacturing challenges. His creative

problem solving delivered successful results for diverse clients, including regaining air emissions

compliance for a synthetic rubber plant (and a 12% capacity increase), solving a crippling

process problem at an oil refinery, and implementing an FDA compliance program at a specialty

chemical plant. In 1998, Mr. Shipley identified the opportunity to establish a toll manufacturing

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business in Louisiana, leading to the formation of his initial majority-owned company, Process

Management, Inc. (“PMI”). The technology and process for recovery of high purity amorphous

silica and renewable energy from biogenic matter was conceived and developed by Mr. Shipley

within PMI. The two underlying U.S. patents were issued in June 2002 and September 2007 and

International Silica Technologies, LLC (“IST”) was formed in 2003 to commercialize this

breakthrough technology. Mr. Shipley holds a B.S. degree in Chemical Engineering from the

University of Arkansas.

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Appendix A

StratoSil 100® Data Sheet

July 27, 2016

StratoSil® silicas are all-natural, sustainably produced and 100 % amorphous silica.

StratoSil® silicas are produced under cGMP and to USDA food grade standards.

StratoSil 100® is a direct alternative to synthetic precipitated silica and silica gel.

Proximate Analysis:

Typical Properties StratoSil 100® Typical Synthetic Precipitated Silica

Silica content (%) 92 min 90 min Loss on drying (%) 8 max 8 max Soluble salts (%) < 0.01 2 min

Trace Element Content:

Microbiological Properties:

Particle Size, Surface Area and Color:

Particle size and surface area may be modified to meet customer needs. Please contact us for a discussion on your requirements. StratoSil® silicas are bright white in color.

StratoSil 100® is Entirely Safe to Handle and Use:

See StratoSil® 100 MSDS

CAS Number 7631-86-9 100 % amorphous silicon dioxide

Crystalline free, classified as non-hazardous Non-flammable and non-explosive

No environmental precautions No chemical reactivity, stable

Non-toxic, food grade Normal precautions to avoid inhaling dust

Element ppm Sodium < 200

Sulfur < 0.01

Iron < 200

Heavy metals (total) < 0.05

Type (CFU/g) Content Aerobic Plate Count < 10 Coliforms < 10 E. Coli < 10 Salmonella (per 25 gram) Negative Staphylococcus aureus < 10 Yeast and Mold < 100

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Appendix A

StratoSil 200® Data Sheet

July 27, 2016

StratoSil® silicas are all-natural, sustainably produced and 100 % amorphous silica.

StratoSil® silicas are produced under cGMP and to USDA food grade standards.

StratoSil 200® is a direct alternative to synthetic fumed silica.

Proximate Analysis:

StratoSil® 200 Synthetic Fumed Silica

Silica content (%, dry basis) > 99.95 > 99.95 Loss on drying (%) < 1.0 < 1.0

Trace Element Content and Microbiological Properties:

Element Content Heavy metals (total) < 0.05 ppm Arsenic < 0.01 ppm Lead < 0.01 ppm Mercury < 0.01 ppm Selenium < 0.01 ppm Sulfur < 0.01 ppm Phosphorous < 0.01 ppm Iron < 50 ppm Sodium < 75 ppm Potassium < 75 ppm

Particle Size, Surface Area and Color:

Particle size and surface area may be modified to meet customer needs. Please contact us for a discussion on your requirements. StratoSil® silicas are bright white in color.

StratoSil 200® is Entirely Safe to Handle and Use:

See StratoSil® 100 MSDS

CAS Number 7631-86-9

100 % amorphous silicon dioxide

Crystalline free, classified as non-hazardous

Non-flammable and non-explosive

No environmental precautions

No chemical reactivity, stable

Non-toxic, food grade

Normal precautions to avoid inhaling dust

Type (CFU/g) Content Aerobic Plate Count < 10 Coliforms < 10 E. Coli < 10 Salmonella (per 25 gram) Negative Staphylococcus aureus < 10 Yeast and Mold < 100

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For more information please contact:

Leo Gingras, CEO

leo.gingras@istsilica.com

(870) 830-7703

www.istsilica.com