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Presentation Overview
Page
I. Sales Market 5 Market
Development 2011-2014 6 Current Industry
Production 7 Industry Production
Projection 8 RFS2 Mandated
Volumes 9 Market Segments 10 G
ulf Oil Refiners 11 RFS2 Biodiesel
Producers 14 Tri-State Fuel
Distributors 15 Public Relations
Plans 16 PL Proforma Analysis _at_
12Mgy 17 PL Proforma Analysis _at_
30Mgy 18 II. 2nd Generation Biofuels
19 Technology Evolution 20 Most
Prevalent Feedstocks 21 Nationwide Woody
Biomass 22 Gulf Area Woodshed
Size 23
3
Presentation Overview
Page
Existing Competition for Biomass 24 Future
Potential Competition for Biomass 25 Feedsto
ck Sources 26 BCAP, USDA Subsidy
Program 27 Ester vs. Cellulosic
Biodiesel 28 Industry Trend Evolution
(through 2022) 29 Plethora of
Technologies 30 National Biofuels
Activity Map for U.S. 31 Louisiana Biofuels
Industry 32 III. 2nd Generation
Technology Development 33 Vanguard
Technology Selection 34 Project
Development Overview 35 Project
Development Costs (estimated) 36 PL
Proforma 37
4
Presentation Overview
Page
IV. Business Development
38 Investment Source Options 39 Developin
g Relationship Strategies 40 Investor
Relations 41 Public Relations 4
2 JatroDiesel Options 43 Company
Valuation Analysis 44
5
I. Sales Marketing
6
Market Development2011 to 2014

• Business strategy Move to Full Production
  ASAP

• 12mgy plant to handle animal fats and other high
  FFA oils
• Start production April 2011
• Establish feedstock agreement (2 yrs.), start
  Jan. 2011
• Establish sales reps. In market area (Louisiana)
• Develop markets and obtain off-take agreements,
  start Jan. 2011
• Summer 2011 expand to 30Mgy (reduce processing
  cost)
• Expand market area to Texas, Miss. And
  surrounding states

Projected, not final
7
Market DevelopmentCurrent Industry Production

• Biofuels 2010 Production, Aug. to Nov.

August
September
October
November
Source EIA 12/10/10
8
Market DevelopmentIndustry Production Projection

• Biofuels Industry Production Projection thru
  2015

2010 2011 2012 2013 2014
2015
MILLIONS OF GALLONS
1
2
3
Source Biofuels Digest 10/7/10. Red indicates
categories applicable to Vanguard Notes Items
in RED(1, 2, 3) include diesel fuel, ASTM-D975,
Jet Fuel D1655, and Gasoline D4814
9
Market DevelopmentRFS2 Mandated Volumes

• RFS2 - Equivalence Values of RINs Ethanol
  (Corn starch) 1.0 Biodiesel (Ester)
  1.5 Cellulosic Advanced
  Biodiesel 1.7 Butanol (Advanced)
  1.3
• Obligated Parties (fuel importers refiners)
  Must meet all four categories of biofuel type or
  incur fine of 37,500/day for each
  category not met.
• Volume Requirements in Billion Gallons/Yr
  2011 2012 2013
  2014 2015 2022 Ethanol
  (Corn starch) 12.07 12.83
  13.42 14.09 14.79
  15.00 Biodiesel (FAME)
  .72 .92 .92
  .85 .85 .85
  Cellulosic Biodiesel .10
  .20 .41 .71
  1.22 6.52 Advanced
  Biodiesel .22 .17
  .12 .39 .53
  .82 Cellulosic Ethanol
  .08 .15 .31
  .54 .92 4.92
  TOTALS 13.38
  14.48 15.61 16.93 18.85
  28.11
  
  
  

plus imports of 8Mgy
Source EPA 2010, will
be adjusted 3Q 2011 for 2012
based on analysis of industry capability

10
Market DevelopmentMarket Segments
Marketing to LA, TX, MS, Tolling Export
Thru oil company specialty reps.with direct
contacts.Comm. 0.01/g
Thru oil company specialty reps.with direct
contacts(w/exclusions).Comm. 0.01/g
Direct sales to local market.Through reps.
toall othersComm. 0.01/g
Oil Companies
FuelDistributors
Tolling Export
To service stations, large commercial and
municipal (B20)
Contract sales for tolling. Spot export sales
(B100)
To fulfill RFS2 requirements (B5)
25 (local)15 (states)
MarketVolumes
50
10
0.250.20
EBITDA/g Potential
0.22
0.18
11
Market Development Gulf Oil Refiners

• Oil Refiners (obligated parties)

LouisianaAlliance Refinery (ConocoPhillips),
Belle Chasse 250,000 bb//d (40,000 m3/d) Baton
Rouge Refinery (ExxonMobil), Baton Rouge
503,000 bbl/d (80,000 m3/d) Chalmette Refinery
oJV w/ ExxonMobil and PDVSA), Chal.
193,000 bbl/d (30,700 m3/d) Convent Refinery
(Motiva Enterprises), Convent 255,000 bbl/d
(40,500 m3/d) Cotton Valley Refinery (Calumet
Lubricants), Cotton Val. 13,000 bbl/d (2,100
m3/d) Garyville Refinery (Marathon Petroleum
Company), Gary. 436,000 bbl/d (69,300
m3/d) Krotz Springs Refinery (Alon), Krotz
Springs 85,000 bbl/d (13,500 m3/d) Lake Charles
Refinery (Calcasieu Refining), Lake Charles
30,000 bbl/d (4,800 m3/d) Lake Charles Refinery
(Citgo), Lake Charles 425,000 Lake Charles
Refinery (ConocoPhillips), Westlake
247,000 Meraux Refinery (Murphy Oil), Meraux
125,000 bbl/d (19,900 m3/d) Norco Refinery
(Motiva Enterprises), Norco 242,000 bbl/d
(38,500 m3/d) Port Allen Refinery (Placid
Refining), Port Allen 48,500 bbl/d (7,710
m3/d) Princeton Refinery (Calumet Lubricants),
Princeton 8,300 bbl/d (1,320 m3/d) Shreveport
Refinery (Calumet Lubricants), Shreveport
35,000 bbl/d (5,600 m3/d) St. Charles Refinery
(Valero), Norco 260,000 bbl/d (41,000
m3/d) Mississippi Lumberton Refinery (Hunt
Southland Refining), Lumberton 5,800 bbl/d (920
m3/d) Pascagoula Refinery (Chevron), Pascagoula
325,000 bbl/d (51,700 m3/d) Vicksburg Refinery
(Ergon), Vicksburg 23,000 bbl/d (3,700
m3/d) Rogerslacy Refinery (Hunt Southland
Refining), Sandersv. 11,000 bbl/d (1,700 m3/d)
12
Market Development Gulf Oil Refiners

• TexasBaytown Refinery (ExxonMobil), Baytown
  557,000 bbl/d (88,600 m3/d)
• Big Spring Refinery (Alon USA), Big Spring
  61,000 bbl/d (9,700 m3/d)
• Beaumont Refinery (ExxonMobil), Beaumont
  348,500 bbl/d (55,410 m3/d)
• Borger Refinery (ConocoPhillips/EnCana), Borger
  146,000 bbl/d (23,200 m3/d)
• Corpus Christi Complex (Flint Hills Resources),
  C. Christi 288,000 bbl/d (45,800 m3/d)
• Corpus Christi Refinery (Citgo), Corpus Christi
  156,000 bbl/d (24,800 m3/d)
• Corpus Christi E. W. West Refineries (Valero),
  C.Christi 257,000 bbl/d (40,000 m3/d)
• Deer Park Refinery (Shell Oil Company), Deer Park
  333,700 bbl/d (53,050 m3/d)
• El Paso Refinery (Western Refining), El Paso
  120,000 bbl/d (19,000 m3/d)
• Houston Refinery (Lyondell), Houston
  270,200 bbl/d (42,960 m3/d)
• Houston Refinery (Valero), Houston 83,000 bbl/d
  (13,200 m3/d)
• Independent Refinery (Stratnor), Houston
  100,000 bbl/d (16,000 m3/d)
• McKee Refinery (Valero), Sunray 158,300 bbl/d
  (25,170 m3/d)
• Pasadena Refinery (Petrobras), Pasadena
  100,000 bbl/d (16,000 m3/d)
• Port Arthur Refinery (Total), Port Arthur
  174,000 bbl/d (27,700 m3/d) Port Arthur
  Refinery (Motiva Enterprises), Port Arthur
  285,000 bbl/d (45,300 m3/d)
• Port Arthur Refinery (Valero), Port Arthur
  325,000 bbl/d (51,700 m3/d)
• Penreco (Calumet disambiguation needed),
  Houston
• San Antonio Refinery (Age Refining), San Antonio
  10,300 bbl/d (1,640 m3/d)
• Sweeny Refinery (ConocoPhillips), Sweeny
  229,000 bbl/d (36,400 m3/d)

13
Market Development Gulf Oil Refiners
Alabama Tuscaloosa Refinery (Hunt Refining
Company), Tuscaloosa 52,000 bbl/d (8,300
m3/d) Saraland Refinery (Shell Oil Company),
Saraland 80,000 bbl/d (13,000 m3/d) Mobile
Refinery (Gulf Atlantic Refining Marketing),
Mo. 16,700 bbl/d (2,660 m3/d) Oklahoma Ardmore
Refinery (Valero), Ardmore 74,700 bbl/d (11,880
m3/d) Ponca City Refinery (ConocoPhillips), Ponca
City 194,000 bbl/d (30,800 m3/d) Tulsa Refinery
(Sinclair Oil), Tulsa 70,300 bbl/d (11,180
m3/d) Tulsa Refinery (Holly Corporation), Tulsa
83,200 bbl/d (13,230 m3/d) Wynnewood Refinery,
Wynnewood 71,700 bbl/d (11,400 m3/d) Ventura
Refining and Transmission, Thomas 14,000 bbl/d
(2,200 m3/d) Arkansas El Dorado Refinery (Lion
Oil), El Dorado 70,000 bbl/d (11,000
m3/d) Smackover Refinery (Cross Oil), Smackover
6,800 bbl/d (1,080 m3/d) Tennessee Memphis
Refinery (Valero), Memphis 180,000 bbl/d
(29,000 m3/d)
Total Production
8,962,100 bbl/day 376,408,200
gallons/day
Required Obligation under RFS2 525,500,000
gallons/year

Southern Oil Companies approx. 65 of total
fuel production nationwide, and share of 850M
gallons required for ester-Biodiesel under RFS2
for 2011 Total U.S. daily consumption is
21,000,000bbbl/d
14
Market Development RFS2 Biodiesel Producers
TexasAgribiofuels, LLC12,000,000 Beacon
Energy12,000,000 Direct Fuels10,000,000 Green
Earth Fuels of Houston 90,000,000 RBF Port
Neches, LLC 180,000,000 Texas Green
Manufacturing, LLC1,250,000 The Sun Products
Corp15,000,000 Oklahoma High Plains
Bioenergy130,000,000
Alabama Eagle Biodiesel, Inc. 30,000,000
Arkansas Delta American Fuel, LLC40,000,000
Louisiana Vanguard Synfuel, LLC 12,000,000 Missi
ssippi Delta Biofuels, Inc.80,000,000 Scott
Petroleum Corporation20,000,000
Total Production
632Mgy (8.3 over-production
meeting RFS2)
Total Req. under RFS2 for ALL southern oil
companies
525Mgy4.92.0
Vanguard Market Share _at_ 26.2Mgy
_at_ 10.7Mgy
15
Market DevelopmentTri-State Fuel Distributors
LouisianaRichard Oil Fuel Holding
Co  Donaldsonville Amar Oil Co Inc  Hammond Siarc
Inc  Gramercy Breaux Petroleum Products
Inc  Lockport E S Inc  Kentwood James R
Drummond Inc  Alexandria John W Stone Oil
Distributor  Gretna Lacassine Fuel
LLC  Lacassine Lard Oil Co Inc  Denham Springs
Leake Oil Co Inc  Saint Francisville Martin
Midstream Partners LP  Amelia Robertson Oil Co
Inc  Bogalusa Russell Daniel Oil Co Inc  Saint
Francisville Wilcox Oil Co Inc--Lm  Saint
Francisville Rpl Oil Distributor Supply  
TexasH W Petroleum Co Inc  Houston Koenning
Inc  San Antonio Beacon Energy  Cleburne Petroleu
m Wholesale LP  Spring Allstar Fuel  Graham
Brenco Marketing Corp  Bryan Brotherhood
Investments LP  Dallas Brotherhood Investments
LP  Red Oak Derrick Oil Supply Inc of  Port
Arthur Devon Inc  Houston Dfw Biodiesel
Inc  Fort Worth Dixie Oil Co  San Antonio Dunhill
Products, LP  Houston Fuelone Inc  Houston Goodin
Fuels Inc  Hereford H W Petroleum Co
Inc  Longview H W Petroleum Co
Inc  Lufkin Landers Oil Co  Higgins North Texas
Locomotive Service  Burleson On Site
Fuels  Helotes MississippiBuffalo Services
Inc  McComb Lard Oil Co Inc  Laurel, MS
Southland Oil Co  Jackson, MS
16
Market Development Public Relations

• Local Statewide

Press Release written adapted for each group
listed below. Continued contact describing and
creating awareness for green technologies and
their benefits to local area and society at large

• Personal letters to Mayor, City Council, County
  Board
• Local new organizations (daily, weekly,
  newsletters)
• Letters to Chamber of Commerce
• Education program for School Districts (K-12th
  grades)
• City, County and local State government
• Local businesses (oil, chemicals, forestry
  etc.).

17
Market DevelopmentPL Analysis _at_12Mgy
17
18
Market Development PL Analysis _at_30Mgy
18
19
II. 2nd Generation Biofuels
20
Technology EvolutionFeedstock Yield Comparison

• Ester-Biodiesel Future is Limited (i)
  Max. availability of animal fats (USA)
  2 Bgy (ii) Soy, canola, palm -
  low yields 45 g/ac
  (Latter groups have food vs. fuel issues)
  (iii) Jatropha, non-food, also limited yield
  170 g/ac (iv) Future
  optimization maybe 2 x above (v) Algae has
  excellent yields 2k-3k g/ac
  (Contamination issues could slow progress)
• Cellulosic Biomass Preferred for Biofuels
  Massive amounts of low cost feestocks
  2011 2030 (i) Waste biomass
  (agri, animal, MSW) Approx. 300Mt/y
  (ii) Forest waste, 5 tons dry/acre
  300g 1,500/ac (iii) Grasses, up to
  16 tons/acre 600g 2,000/ac (iv)
  Certain so. hardwoods, 28 tons/acre 900g
  3,000/ac (v) Algae
  15,000/ac? (vi) Sugar Cane 400g
  700/ac (vii) Jatropha 170g
  300/ac

Goal by 2030 through optimization will
substantially increase out-puts including minimum
reliance on water and fertilization
21
Technology EvolutionMost Prevalent Feedstocks

• Feedstock Sources For Next Twenty Years (in
  order of availability) (i) Waste Biomass
  (Agri, Animal, MSW, scrap wood) (ii) Grasses
  (Miscanthus, Sorghum, Switchgrass)
  (iii) Algae (iv) Forest Residue
  (Pre-thinnings, Commercial thinnings,
  Harvesting waste, Plant waste) (v) Sugar
  Cane (approx. 15 from USA) (vi) Jatropha
  (Less than 10 from USA) (vii) Crop food for
  ethanol (sugar beets, cavassa) (viii) Crop food
  for biodiesel (castor, palm oil) (ix) Corn
  (x) Soy

Industry survey conducted 6/2010, Biofuels
Digest
22
Technology EvolutionNationwide Woody Biomass

• Sources of Woody Biomass (Advanced
  Biofuel)
• Southeast 49.8
• Northeast 2.0
• Northwest 4.6
• West lt0.3
• Central East 43.3
• To meet 2022 production goal of 21bgy 527
  plants x 40mgy
• In Southeast to produce 10.5bgy 263
  plants x 40mgy

Source USDA Biofuels Strategic Production
Report, June 2010
23
Technology EvolutionWoodshed Size (Gulf area)

• Biomass Availability Within 120 and 180
  Miles from Alexandria, LA

2-hrs 3-hrs of
Suppliers 221 570 Whole Tree
Chip 27 31 Forest Residue 23
28 Pricing projections CIF Vanguardon an
annual contract basis
Source Ecostrat , General Biofuel, Ontario,
CANADA
24
Technology EvolutionCompetitors for Biomass

• Existing Competitors (for biomass)

24
Source Ecostrat , General Biofuel, Ontario,
CANADA
25
Technology EvolutionCompetitors for Biomass

• Potential Future Competitors (for
  biomass)

Source Ecostrat General Biofuel, Ontario,
CANADA
26
Technology EvolutionFeedstock Sources

• Feedstock Acquisition Strategy

- Purchase through aggregator
- Through local sources
- Long term supply agreements of woody biomass
5 yrs
- Warranted through a credit wrap with major
international financial institutions (Noble
Group) www.thisisnoble.com

• .

- Latter cost adds about 3/ton
- Current price about 29/ton delivered
- Logistics assessments transport by barge,
rail and truck
- Access to the latest government regulatory and
subsidy programs information (e.g. USDAs BCAP
Program to provide up to 45/ton incentive to
foresters)
- Assurance all products meet sustainability and
renewable energy standards
27
Technology EvolutionUSDA Subsidy Program

• USDA, Biomass Crop Assistance Program (BCAP)

• BCAP provides matching payments
• Up to 45/dry ton to forester only
• Material must be an approved type- Must be
  sold to qualified biomass conversion
  facilities
• Qualified facilities Those that convert biomass
  to heat, for power biobased products
  (electricity) and for advanced biofuels
• Two year program (to be extended to 5-Year)
• New program under final USDA review

28
Technology EvolutionEster vs. Cellulosic
Biodiesel

• Technology Comparison

Cellulosic

Biodiesel

Ester-Biodiesel Ethanol
(FAME-based)
Carbon Reduction (2010)
60
20-30
80
Scalability (by 2030)gallons per acre
n/a
2,500
2,500
Sustainability Pot. (by 2030)
Poor
High
High
Product Quality
Poor
Good
Good
Unsubsidized 10 year Market
Poor
Good
Very GoodCompetitiveness Potential
_at_45/bbl oil
_at_45/bbl oil
_at_45/bbl oil
Production Cost (excl. feed.)
High (0.50/g)
Med-Low (0.35) Med-Low
(0.35)
Technology
Static
Active Development
Active Development
Specifications
Cloud Point (C)
-5 to 15

-20 to 10
Cold Flow
Poor

Excellent
Specific Gravity
.88

.78
Cetane
50-65

75-90
Pipeline Fungible lt B5
(some pipelines All Europe)
No
Yes
Shelf Life
lt 6 months
Good
lt12 months
Oxidative Characterisitcs
Poor

Excellent
29
Technology EvolutionIndustry Trend Estimate

• How the Game Plays Out

2010 Cellulosic production begins. Green
diesel comes on market. Blends to B100
use existing national fuel pipeline
lowering transportation costs. Dynamic
Fuels turns on 75Mgy plant using poultry
fat.2011 Enzyme and catalyst development
reaches commercial level2012 Twenty new
plants come on line using forestry
waste, municipal waste and grasses.
Achieve significant large scale,
lowering production costs 2020 Genetic
engineering, plant breeding and grass
cocktails are used to amplify energy yields of
biofuels, decrease environmental impact, and
lower costs2022 Chemists introduce biofuels
that go beyond butanol.
40
CELLULOSIC ETHANOL RENEWABLE DIESEL
35
CORN ETHANOL
And other biofuels
30
25
Biofuels of Total Demand for Transportation
fuels
20
15
10
5
0
2006 2008 2010 2012 2014 2016 2018
2020 2022
Source Vinod Khosla, Biofuels Trajectory to
Success 2008
30
Technology EvolutionA Plethora of Technologies

• Companies to Watch

Product
Core Technology
Company
Feedstock
Imperium, Future Fuel, Vanguard
Vegetable Oil
Transesterification
Ester-Biodiesel
Cilion, AventineAltra, Poet, Verasun
Dry mill yeast fermentation
Ethanol
Sugar/Starch
ZeaChem
Ethlvacetate production/hydrocracking
Ethanol
Companies in feed- stock improvement
BP-Dupont BiofuelsAdvanced BiofuelsGreen
BiologicsCobalt, Gevo
MonsantoDuPont, PrajSyngentaAllelyx,
TeriCeresBical, AgrividaEdenspace
Bacterial fermentation
Butanol
Lower Feed Cost Higher
AmyrisLS9
Diesel/GasolineBiocrude
Synthetic/fermentation
Virent Energy
Aqueous phase reforming
Diesel/gasoline
GreenFuel, PetroSunAurora BiofuelsLiveFuels
BiocrudeLipidsFatty acid esters
Growth with CO2 and light / transesterification
of hydrocracking
Algae
Mascoma, VereniumLogen, Poet, AbengoaSunEthanol,
TMA
Enzyme hydrolysis/fermentation
Ethanol
Biomass Forestry waste Agricultural Animal
RangeFuels, BRICoskata, Chorena
Ethanol
Gasification/catalysis or syngas fermentation
Kior
Catalysis/pyrolisis
Biocrude
Lanza
CO fermentation
Ethanol
Municipal Waste
BlueFire
Acid hydrolysis/fermentation
Ethanol
Changing World Tech.
Thermal depolymerization
Fuel oil
31
Technology EvolutionNational Biofuels Industry

• Renewable Fuels Plants in Pilot, Under
  Construction or Planned (46)

Source Biofuels Digest 10/7/10
32
Technology EvolutionLouisiana Biofuel Industry

• Companies located in Alexandria Woodshed (within
  250 miles)

2012 - 2014Production
RFS2 Cat.
Company
Feedstock
Process
Current Status
Aquatic EnergyLake Chalres, LA
Algae
BioCrude Oil
Algal Oil Extraction
30k
BP/Verenium,Jennings, LA
Starting 2012. BP sold 50 stake to Verenium in
2010.
Enzymatic Hydrolysis
Bagasse
Cellulosic Ethanol
36mgy
Dynamic Fuels/Syntroleum/TysonGeismer, LA
Pyrolysis/Gasification Fischer Tropsch
Animal fats (Tyson)
Renewable Diesel
75mgy
In production as of 10/10
Plans to build three more plants including in
Newton County and at Bude, MS
Pyrolysis/Gasification Fischer Tropsch
KiorColumbus, MS
Multiple Biomass
BioCrude oil
120mgy
RentechNatchez, MS
Renewable Diesel,Jet Fuel
HQ, Rialto, CA.Also biorefinery
250mgy
Multiple Biomass
Fischer Tropsch
Darling/Valero JVDiamond Green Diesel, LLC.
Norco, LA
Innovative pretreat-ment and hydro-treating/some
rization
Obtained DOE guarantee 1/26/11
Animal fats
Renewable Diesel
137mgy
Funding/Public Co. Mkt Cap 630k
Raven BiofuelsParamus, NJ
Cellulosic Ethanol
Forestry waste
Acid Hydrolysis
10mgy
Source Biofuels Digest 10/7/10 Volume in RED
plant is operating at about this capacity
33
III. Technology Development
34
Technology DevelopmentProject Technology
Selection

• Technology Overview

• Product choice Bio-oil from biomass(decision
  explanation, see next slide)
• Technology proprietary, but uses off-the-shelf
  science
• IP development belongs to Vanguard
• Possible trade secret vs. patent (TBD)
• Project concurrent with productionafter ramp-up
  to 30Mgy (new trans) 9/11
• Plant size 30Mgy to 50Mgy (TBD)
• 100 funded through Vanguard
• JatroDiesel will provide engineering thru new
  process commissioning
• Approx. 30 of existing assets are usable (tanks,
  pumps, piping)
• Feedstock milling and main processor main new
  items
• Total cost including bench work, piloting, demo
  and plant lt30M
• Relationship options with http//www.JatroDiesel
  (see page 43).

35
Technology DevelopmentProject Overview

• Product Overview

• Product choice Bio-oil (or bio-crude)
• Made from biomass (grasses, wastewood, municipal
  solid waste)
• Conversion process called hydrothermal.
  Process uses water and methanol (or equal) at
  high temp.and pressure to extract oil
• Oil sent to an oil refinerys coker unitand is
  thermally cracked into a drop-in-fuel
  (gasoline, diesel or jet fuel)
• Bio-oil plant is 1/6th cost of making green
  dieselor drop-in gasoline or jet fuel A
• Plant is easily and rapidly scalable, with known
  costs
• Low adoption hurdles
• Leverages existing transport and storage
  infrastructure
• Leverages existing refinery infrastructure
• Plant easily replicable modular scalable from
  5Mgy to ?

36
Technology DevelopmentProject Development Costs
Plant operations begin

• Development Cycle (Overview)

750k
25M
Pilot test-ing complete.Final drawingsfor
30Mgy plant
600k
20M
Installation complete begin commissioning
Pilot test-ing processorstarts operation
500k
15M
Build pilot test-ing processor.Approx. 50kg/m
T e c h n i c a l D e v e l o p m e n t C o s t
C a p i t a l P l a n t C o s t
Equipment in and ready for install-ation (4
months)
400k
10M
300k
5M
30Mgy trans expansion complete. Begin bench
testing 2nd Gen
Main plantdrawings complete. Order equipment.
200k
2.0M
Equipmentinstallation begins6 week build
Complete draw-ings. Order pilot plant equipment
100k
1.0M
Dec. 11
March 12
July 12
Oct. 12
Jan. 13
April 13
Oct. 13
Jan. 14
April 14
Sept. 11
Operation concurrent with existing 30Mgy trans.
Biodiesel ops.
Technical Development Cost
Capital Plant Cost
37
Technology DevelopmentPL Proforma
37
38
IV. Business Development
39
Business Development Investment Options

• Government

• USDA loan guarantees to show commercial
  capability (vs. for RD)
• Dept. of Energy for commercially feasible
  technologies (drop-ins?)

• Institutional (equity investment of common
  and/or preferred stock)

• Pension fund
• Mutual fund
• Investment trust
• Investment banking
• Hedge fund
• Sovereign wealth fund
• Endowment fund
• Private equity firms
• Insurance companies

• Public Partnership

• Enterprise Zone Tax Credits or Funding

40
Business Development Investment Options

• Developing Relationships

• Targeting institutional and private investors
  with quarterly newsletter announcing company
  progress.
• In addition, direct contact with certain
  qualified investors, businesses, banks and
  other lending institutions, including
• Oil companies (as an adjunct to marketing
  effort)
• Investment companies with a history investing
  in renewable energy
• Following up inquiries of investment interests
  from PR
• Grant organizations (Federal, State and
  Private)

41
Business Development Investor Relations

• Companies Invested in Biofuels (sample, many
  more)

42
Business Development Public Relations

• National. International and State

Press Release written adapted for each group. A
first story might be about time line for the
development of new technology and anticipated
production start date. Distributed to

• Special interest publications - consumer
• Daily newspapers business section editors
  business consumer
• Business/Investor publications business
  investors
• Energy organizations (print and on-line)
  trade consumer
• Renderers Association - trade
• Biofuels Digest - trade
• Chemicals Digest - trade
• Biodiesel Magazine - trade
• Biofuels Business - trade

. . . and addressing Local market (as shown on
slide 14).
43
Business DevelopmentJatroDioesel Investment
Options

• Step 1 Technology Procurement Options

Criteria
Positive Impact
Negative Impact

• Hire scientists and develop

• Company owns IP. License and distribution rights
  opportunity

• Acquire talent keep talent track work history
  potential long lead time

• Hire Vendor to Develop

Own IP with all right thereof
Cost. Future development certainty

• Potential shorter lead time technologyready
  and strong market position ability to
  re-license and distribution rights increased
  company valuation

• Initial and long term cost lack ofcontrol for
  development financingmore difficult to obtain
  legal issuesover use

• Exclusive License

• Lower initial and on-going royalty cost
  technology tested and ready to deploy
• mitigated legal issues potential

• Lack of competitive advantage lack
  ofdevelopment control financing moredifficult
  to obtain

• Non-Exclusive License

• Control over IP development joint ownership in
  IP ability to maximize re-licensing and
  distribution rights no licensing fees to others.
  Increased JV company valuation. Easier financing

• Separate company issue cost of development
  trust in JV partner issues harder to finance the
  non-JV component of business

• Joint Venture (stand alone JV entity)

• Control over IP development joint ownership in
  IP ability to maximize re-licensing and
  distribution rights no licensing fees to others.
  Increased company valuation. Easier financing

• Equity Partner (w/preferred and/or common
  stock)

• Give up equity. Cost if preferred stock option
  has guarantees and goals notmet etc.

44
Business DevelopmentCompany Valuation

• Business strategy to migrate from
  Ester-Biodesel to Renewable oil by 2014
  Basis for common stock share value

• Plant Current valuation 12Mgy
  22,000,000 5 x EBITDA assets (port
  assets leased)
• Plant at 30Mgy (trans.) 55,000,000 5x
  EBITDA assets
• Plant at 30Mgy (2nd Gen) 100,000,000 7 x
  EBITDA assets
• Plant at 90Mgy (2nd Gen) 200,000,000 10 x
  EBITDA assets