Transforming Sunlight Into Fuel and Food for the World

September 2010

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©2010 PetroAlgae LLC www.petroalgae.com
 Forward Looking Statements

All information provided in the following slides is confidential and proprietary and should be treated
accordingly. Furthermore, the following slides may contain certain “forward-looking statements.”
Forward-looking statements are based on current expectations and assumptions and are inherently
subject to risks and uncertainties, some of which cannot be predicted or quantified, and many of
which are beyond the company's control. Actual results could differ materially from these forward-
looking statements as a result of a number of factors, including the uncertainty of the launch of our
commercialization strategy, the market’s acceptance for our products and technologies or the
acceptance of our customers’ products or technologies which incorporate our products and
technologies, the failure of our technology to perform as predicted, competition from alternative
fuels or other alternative energy technologies, uncertainties as to the size of the markets, cost and
margins for the Company’s products, current or future government regulations affecting the use of
the Company’s products and technologies, the lack of availability of critical components, the degree
of protection from future patents, other risks associated with the development or acquisition of new
products or technologies and those risks detailed in the Company’s filings the SEC. Given these risks
and uncertainties, any persons looking at this information are cautioned not to place undue reliance
on such forward-looking statements and no assurances can be given that such statements will be
achieved. The company and all affiliated parties do not assume any duty to publicly update or revise
the material contained herein.

©2010 PetroAlgae LLC www.petroalgae.com 2

 PetroAlgae Mission

“To dramatically alter the global energy landscape through

large-scale replacement of petroleum while creating a
new source of food for the world”

©2010 PetroAlgae LLC www.petroalgae.com 3

 What is PetroAlgae?

◊ PetroAlgae expects to be the first renewable energy company to

enable commercialization of drop-in replacements for fossil fuels

Renewable fuels require biomass feedstock (made from

plants), but no conventional source has been able to yield a
sufficient commercial supply. PetroAlgae has broken the
biomass bottleneck with micro-crops.

©2010 PetroAlgae LLC www.petroalgae.com 4

 Why is PetroAlgae Unique?

◊ High biomass productivity is THE KEY to profitability

 Demonstrated productivity above industry norm

◊ PetroAlgae fuels are functionally compatible with petroleum-based fuels –

hence the term “drop-in”
 High value protein co-product subsidizes fuel production

©2010 PetroAlgae LLC www.petroalgae.com 5

 The PetroAlgae Solution

Market
Need Key Answer Issue How

Scalable Economic Micro- Industry 2-3x natural Physics of

Renewable Viable crops vs. currently micro- light
Energy Biofuel Macro- not organism management
Supply Feedstock Crops * producing Productivity combined
(without at economic yielding with
Subsidies) production economic Biochemistry
rate micro-crop

* Micro-organisms = algae, micro-angiosperms, cyanobacter, diatoms, etc. Macro-crops = soy, rapeseed, corn, etc.

©2010 PetroAlgae LLC www.petroalgae.com 6

 Key PetroAlgae Technologies

◊ Large open bioreactors

 Scalable and cost effective

◊ Access to over 150 micro-crop strains

 Proven ability to find, isolate, and grow indigenous strains
 Monocultured properly, the indigenous strains subject to patents

◊ World-class understanding and control of growth fundamentals

 Biology: Isolation and monoculturing of optimal strains
 Chemistry: Optimization and management of nutrients
 Physics: Management of light exposure

 Predictive models built on these fundamentals

allows PA to optimize systems for maximum productivity

Development of analytical model coupled with proprietary

imaging system are keys to achieving economic productivity

©2010 PetroAlgae LLC www.petroalgae.com 7

 Commercial Reactors

©2010 PetroAlgae LLC www.petroalgae.com 8

 Harvest Density – Micro-Crop Size Perspective

©2010 PetroAlgae LLC www.petroalgae.com 9

 Process Overview

Power
Co-Firing

Feedstock

Carbohydrate-
Ethanol
Vacuum Skimming Rich Drying Fermenting
Large-Scale to Stationary Solids
Open Bioreactors Screen Filter

Refined Fuels
Grow Harvest Dewater
Refining
Hydrocarbon
Protein- Protein Conversion *
Drying
Rich Separation
Recycle Water Liquid
Coke
Nutrients
High Protein
Protein
Coagulation/ Solids Purified Proteins
Precipitation

* NOTE: Unlike cellulosic material, PA biomass produces no acid (e.g. acetic, etc.)

©2010 PetroAlgae LLC www.petroalgae.com 10

 Biomass Processing

©2010 PetroAlgae LLC www.petroalgae.com 11

 Product Roadmap

Bio-crude Fermentation Ethanol

Wood Pellet
Combustion
Replacement

Direct Fuel Coal/Oil

Conversion Co-Firing

Micro-
Refinery
crop Coker
Drop-in Fuels

Pyrolysis

Animal
75%
Feed

Protein
90% Human

©2010 PetroAlgae LLC www.petroalgae.com 12

 Biomass Yield Comparison

Biomass
Biomass Source
MT/ha/yr

Soy 1-2.5

Rapeseed 3

Palm Oil 19

Switch grass 15

Alfalfa 3-8

Jatropha 7.5-10

Other Micro-crop Companies 2-50

80-100

©2010 PetroAlgae LLC www.petroalgae.com 13

 Sustainability

◊ PetroAlgae process actively reduces atmospheric

carbon dioxide (CO2)

◊ System can use gray or brackish water and 98% of that

water is recycled

◊ PetroAlgae process does not compete with the food

supply
 Does not require arable land
 In fact, creates a new source of high-protein value meal
that offsets production costs

◊ No toxics coming out of the system

©2010 PetroAlgae LLC www.petroalgae.com 14

 Scalability

◊ Commercial scale bioreactors operating today

 Fellsmere site is operational on a daily basis producing

biomass and protein
– Dewatering, milling, drying systems are all operational
– Site tours for prospective customers, investors, government
officials and media are welcomed

 Standard equipment used in the construction of the

bioreactors and processing plants

 Can be fully deployed very rapidly compared to other

renewable energy technologies (1-3 years vs. 4-20 years)

 Each acre deployed is immediately productive

©2010 PetroAlgae LLC www.petroalgae.com 15

 Low Risk Business Model

◊ License to national oil companies, refining companies, food companies,

etc.
 Licensee pays all Capex
 Licensee provides CO2, land, water
 Licensee pays PetroAlgae
– License fees during construction (high 8 figures)
– Royalties annually thereafter (low 8 figures)
 Licensee receives highly profitable IRR

◊ Licenses are on a unit basis

 5,000 hectares per Unit
 Unit produces ~ 225 thousand metric tons of
bio-crude/unit/year
 Unit produces ~ 90 thousand metric tons of
protein/unit/yr

©2010 PetroAlgae LLC www.petroalgae.com 16

 Summary

◊ Existing Market for Products

 Huge market (> $1T/year) for bio-crude that addresses the growing
need/demand for renewable energy sources
– Compelling economic proposition for refineries
 Large and growing market for protein co-product for animal and human
consumption
– Huge upside with growing need for vegetarian protein in Asia
– Downside protection from quality and price of soy products

◊ Highly Scalable Cost Effective System

 Growth modules demonstrated at full scale
 Proven technology combining bio-chemistry and physics to grow micro-crops
that are economically attractive
– Intellectual property rights protected
 Standard equipment used in the construction of the bioreactors and
processing plants
 Productive use of non-agricultural and marginal land

©2010 PetroAlgae LLC www.petroalgae.com 17

 Summary

◊ Very Attractive Economic Model for Licensees

 Highly productive crop management process using existing micro-crop strains
with proven yields of bio-mass and protein per acre
 Price Assumptions targeted at a discount to existing price points
 High operating margin business
 Rapid payback on capital investment

©2010 PetroAlgae LLC www.petroalgae.com 18

 APPENDIX

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 Management Bios

John Scott, Ph.D. Dr. Scott serves as the Director and Chairman of PetroAlgae Inc. He became chief scientist of a US public
company in the early 1980s following a highly regarded and successful first career as an astrophysicist, academic and consultant
to a number of governments, including the USA and several NATO countries. He then started his first company which was funded
in the traditional angel / venture capital manner. This was sold approximately three years later and was followed quickly by his
second company, both being sold for a profit. By the early 1990s, Dr. Scott had become an investor in several venture funds and
was on the board of various venture-backed companies. In 1993, together with some of the current XL TechGroup management
team, he formed in 1993 a company called XL Vision, later changed to XL TechGroup where PetroAlgae, in turn, was founded.

Dr. Scott has authored business theories surrounding the development of successful technology enterprises and lectures to
business schools throughout the USA. He has served in a number of technical and management positions in the private sector,
including chairmanship of two public companies. Previously, he was a professor at the universities of Maryland and Arizona and a
visiting professor at the University of North Carolina. Dr. Scott has also been a consultant to the US and various European
governments and was a National Research Council fellow at NASA. Dr. Scott holds numerous patents and has been published
extensively in refereed scientific journal papers. He earned a Bachelor of Science in Physics and Astrophysics at Michigan State
University and a PhD in the astrophysics/physics dual program from the University of Arizona’s Steward Observatory.

David Szostak. Mr. Szostak is Chief Financial Officer of PA LLC and is President, Secretary and Treasurer of PetroAlgae, Inc. A
certified public accountant, Mr. Szostak began his career in Chicago, Illinois working as an auditor (CPA) for a large size
accountancy firm (Laventhol and Howarth) and later other smaller accounting firms. In 1987, he was Corporate Controller at
Extel, Inc., a global manufacturer of electronic communication equipment for industry and governments. When Extel acquired
Hetra Computer, Inc., a manufacturer of government specialty computers, in 1990, Mr. Szostak became Vice President and CFO
of Hetra. In 1993, when XL Vision, the predecessor company to XL TechGroup, acquired Hetra, Mr. Szostak continued in the same
position. During his tenure, he was active in both the fundraising and public offerings. Mr. Szostak is a director of TyraTech, Inc.
He earned his Bachelor of Science in finance at Southern Illinois University, with graduate studies at DePaul University in Chicago.

©2010 PetroAlgae LLC www.petroalgae.com 20

 Management Bios

Bill Haskell. Mr. Haskell is responsible for corporate strategy for PA LLC and is part of the executive management team. With
over 25 years experience, Mr. Haskell has created, co-founded and built numerous technology companies. Mr. Haskell’s
experience reflects a combination of executive management, private equity investment and company creation. In 1993, he co-
founded XL Vision (now XL TechGroup) in and served as its president and chief operating officer. Mr. Haskell was also part of the
early management team at Internet Capital Group (NASDAQ: ICGE) where he served as Managing Director of Operations. Mr.
Haskell then rejoined XL TechGroup in 2001 and continued to serve as its President and COO. In 2005, Mr. Haskell assumed the
role of CEO of AgCert International, PLC (LSE: AGC) until its sale in 2008. Prior to XL, Mr. Haskell spent over a decade in various
technical and management roles in private industry. Mr. Haskell earned a Bachelor of Science degree in engineering and applied
mathematics from Iowa State University.

Ottmar Dippold. Mr. Dippold is CEO, Asia Division. As a member of the senior executive team of PetroAlgae, Mr. Dippold is
involved in all aspects of the company’s operations. Mr. Dippold joined Space Systems Laboratory in 1967 where he served as
team leader for the design of next generation optical systems for the US Air Force and NASA. He was the founder, Chairman, CEO
and President of Opto-Mecanik, Inc., a designer and manufacturer of infrared optical and laser-based systems and served in this
capacity for 27 years. Mr. Dippold also served as Chairman of Applied Photonics, a provider of laser-based solutions to the
semiconductor and flat panel display industries. Mr. Dippold received a degree in optical engineering from the Deroy Optical
Institute, Munich, Germany.

Fred Tennant. Mr. Tennant is responsible for Business Development and Marketing for PA LLC. Prior to joining PetroAlgae, Mr.
Tennant was President and Managing Director of Shinkoh Technologies, Inc., a consulting firm specializing in international
business development. His earlier experience includes management and marketing positions with Continental Grain Company
and the agri-chemicals division of W.R. Grace. Mr. Tennant has a Bachelor of Science in Agri-Business from the University of
Arkansas and an MIBA from US International University.

©2010 PetroAlgae LLC www.petroalgae.com 21