Disclaimer

1. Disclaimer The following presentation contains forward thinking and may change as time moves ahead. We are not specifically looking for investors at this meeting, it is for informational purposes only.

2. The purpose of this presentation is to give information so that you can be informed on an environmentally correct process of making “Green” products that presents an economic opportunity for South Dakota and this region. It will cover the following topics: • Carbon dioxide emissions and their effect on global warming • Production of fuel without carbon dioxide emissions • Advantages of small biorefineries VS large refineries • Economic impact for South Dakota • Upstream Carbon Offset Program that will stimulate and promote “Green” energy

3. Carbon Dioxide Emissions • Religious sectors in this country are concerned about global warming caused by carbon dioxide • All Presidential candidates are addressing global warming • Obama and Harkins have introduced legislation dealing with CO2 emissions • Minnesota’s legislators are talking about a low carbon fuel standard • There could be State or Federal taxes on CO2 emissions • Rural Energy Marketing is pushing for legislation in Minnesota using the Upstream Carbon Offset Program • On December 2 ABC News had retired Generals and Admirals warning that if the United States doesn’t do something about global warming, we will be dragged into global war • “An Inconvenient Truth” by Al Gore is a movie dealing with the Greenhouse Effect on the planet. This movie won Al Gore a Nobel Peace Prize. The bottom line is that future carbon dioxide emissions will be a liability while processes not producing carbon dioxide will have an asset.

4. Global Warming Infrared rays are trapped by carbon dioxide warming the earth. The equator has increased in temperature by 2 degrees. The poles have increased in temperature by 12 degrees. Infared Rays CO2 From burning fossil fuels

5. http://www.freerepublic.com/focus/f-news/2009401/posts

6. Production of Petroleum Products from Oil Sands Similar to Large Refineries Mine Sand CO2 to Atmosphere Heat Sand CO2 to Atmosphere Refine Oil CO2 to Atmosphere Burn Fuel CO2 to Atmosphere For every gallon of gasoline consumed, 19.2 pounds of carbon dioxide is emitted. This leaves a positive carbon footprint. Net Product: Global Warming

7. Production of Petroleum Products from South Dakota Corn Stover Similar to Vermillion Plant Oxygen is produced over the plants life cycle Grain goes to food Roots turn into organic matter and sequester carbon dioxide in the soil Stover goes to a bio-refinery to produce fuel Carbon dioxide is a food source for the feedstock Fuel provides energy to propel the world. CO2 Net Product: Oxygen

8. Future of the Corn Plant 40% of the plant material is above ground. Plant material (corn stover) for fuel We use 70% of the above ground portion, meaning we use only 28% of the overall plant material. Grain for food 60% of the plant material is below ground. Roots sequester carbon in the soil

9. Value of Stover Estimated 1st year $ Value of Equivalent Available NutrientsCommercial Fertilizer Injected or Surface Injected or Surface IncorporatedAppliedIncorporatedApplied Nitrogen 8lb 3lb $5.60 $2.10 P205 2lb 2lb $1.84 $1.84 K20 12lb 12lb$6.96$6.96 Total Value $14.40 $10.90 Value/ton based on Commercial Fertilizer Costs as of 4/15/08 Nitrogen - $0.70/lb. P205 - $0.92/lb. K20 - $0.58/lb.

12. 28 Year University of Connecticut Study (Hooker ET AL.: Tillage and Corn Stalk Return Affecting C Dynamics)

13. The feedstock contract addresses: • Rented land changing hands • Owned land being rented or sold • Retirement • Health issues • Price and Freight rates • No crop due to natural disaster • Quality control • First rights of investment and purchase of diesel fuel and potentially nitrogen fertilizer if made at this site • Non-Compliance Contracts can be found in the back of the room

14. Corn Stover Fermentation vs Thermo-Chemical • 1/3 of the carbon in corn stover is released as CO2 • Outside source of heat needed to run the process • 1 BTU to produce 2 BTU • Dirt causes bacteria in the fermenters which kills microbes that produce ethanol • 33% of the BTU from the feedstock is recovered • All carbon in corn stover is captured in the process • Exothermic reaction that produces its own heat, therefore only needing a heat source for startup • Dirt doesn’t effect the process • 76% of the BTU from the feedstock is recovered

16. Pilot Plant

17. Diagram for Patenting Bio-fuels Plants

20. Plant Size • Green Fuels L.L.C. will need 60,000 to 70,000 acres of contracted stover production • It will need 400 to 500 tons per day of corn stover (800 to 1,000 bales) • It will produce from 14,000,000 to 17,500,000 gallons per year • The products are F-T Diesel, Gasoline, Kerosene, and Wax.

21. Premier Sites in South Dakota Yankton Yankton County Potential Irrigated 44,859 Potential Dry Land 29,662 Corn Acres 74,521 Vermillion Elk Point Clay County Potential Irrigated 62,046 Potential Dry Land 23,000 Corn Acres 85,046 Union County Potential Irrigated 38,144 Potential Dry Land 55,000 Corn Acres 93,144

22. Vermillion Site Site Water Access

23. South Dakota’s Potential South Dakota holds 12,705,000 tons of corn stover on 5,000,000 acres of corn. These tons could produce 1,270,500,000 gallons of biofuels in South Dakota in as many as 70 processing plants.

24. Employment for South Dakota Biofuels Plants 100 potential jobs per plant between processing and harvesting feedstock. 70 potential plants 7,000 jobs generating roughly $280,000,000 of income Large Refineries 1800 jobs processing oil generating roughly $90,000,000 of income

25. Fuel Cost of Feedstock And How Much Stays in South Dakota Biofuels Plants 12,705,000 tons of corn stover in South Dakota garnering $70 per ton. The total cost from these tons is $889,350,000, all of which stays in-state. Farmers will get this money and spend it in local areas. Large Refineries 140,000,000 barrels of oil per year garnering $130 per barrel. The total cost is $18,200,000,000, all of which is sent to foreign countries. This money doesn’t stay in circulation in South Dakota.

26. Carbon Footprint Biofuels Plants This biofuel plant has a minimal carbon footprint because the fuel burned in the plant or engine is made from plant feedstock and the carbon dioxide goes back to plants growing the next year. There is zero cost for carbon dioxide Large Refineries Produces 54,220,000 tons of carbon dioxide refined oil products. In addition, it produces 83,538 tons of carbon dioxide fueling the plant with over 50 megawatts of power. There could be over $1 Billion cost for carbon dioxide Conclusion: With Carbon Credits, Green Biofuels Plants can be even more competetive with large refineries.

28. Profit Biofuels Plants The potential profit per plant is between $5,000,000 and $25,000,000, or an average of $15,000,000. With 70 processing plants there is a profit of $780,000,000. If South Dakotans own 50% of the project, they will profit $390,000,000 Large Refineries The potential profit is $1,400,000,000 to $3,500,000,000, with an average of $2,450,000,000. How much of this profit actually stays in-state?

29. Waste Heat Potential Biofuels Plants Biorefineries located next to South Dakota towns may some day capture waste heat for use in churches, schools, sports complexes, and industrial manufacturing facilities to sustain towns. Large Refineries There will be no waste heat recovery because the infrastructure involved is not economically viable.

30. Green Fuels L.L.C. Business Plan Financing Seek Local Investors Seek In-State Investors Seek Venture Capitalists from Outside of South Dakota

31. 1,000,000 BTU Natural Gas $8 1,000,000 BTU Green Gas w/ Subsidy $14 1,000,000 BTU Ethanol $31.50 1,000,000 BTU Gasoline $26.44 1,000,000 BTU Green Renewable Diesel $32.84 1,000,000 BTU Diesel $25.70 These “green” products all fight for the same feedstock. How can “green natural gas” compete with the figures for ethanol and green renewable diesel? UCOP will also encourage the production of electricity from coal with carbon dioxide removal, no-till farming, and nitrogen fertilizer.

32. CONSUMERS are free to chose own method to reduce fuel costs while benefiting from UCOP induced efficiencies and innovations that reduce their total annual energy costs. Upstream Carbon Offset Program (UCOP) Cost of fuel incorporates cost of CO2 offsets Fuel deliveries to consumers Fuel suppliers deliver Offset Certificates to UCOP regulator for retirement. (4) UCOP Regulator at Dept. of Commerce oversees compliance with offset targets, project certification, and audits all UCOP based financial operations Fossil Fuel Suppliers apply mandated CO2 offset percentages & incorporate the cost in the price of fuel sold. They purchase certified offsets from the market: either directly from Project Owners, or through privately held Clearing House Fuel suppliers can purchase offset certificates from Clearing House or directly from project owners. (3) Dept. of Commerce publishes table showing CO2 content of various fossil fuels (can use IPCC figures, or can be precisely specific to local-fuels.) Clearing House buys Certified Emission Offsets from project owners, sells the certificates to Fossil Fuel Suppliers. Offset price per ton of CO2e is set by free-market supply & demand. (2) Legislature sets percentage CO2 reduction to be offset for the coming year. Non-fuel based CO2 reduction: cement sector, fertilizer, etc: Energy Efficiency: insulation, bulb exchange, electricity co-generation, etc: Biodiesel: from biomass or waste fats Farmer No-tilling: 1,000 Lbs of CO2 reduction per acre Coal fired utility capturing and sequestering CO2 Biogas: from methane digesters, landfill gas, biomass gasification, etc. Examples of CO2 Lowering Projects That Generate UCOP Offsets (1) State or National Legislature passes UCOP bill. Ethanol plant making its own fuel Wind Farms Cellulosic Ethanol Plants Energy with no surcharge

33. Change of a Utility Bill with UCOP Program Figured for a Family of Four • Cost of Carbon Dioxide is $20 per ton • Electric Bill up $2.29 per month • Gas Bill up $3.36 per month • Motor Fuel up 54.77 per month • Total Carbon Dioxide Offset Cost = 60.42 per month • Suggested is 10% Carbon Dioxide Offset • 10% Carbon Dioxide Offset = $6.04 per month • This is a small fee for reducing carbon dioxide emissions and gaining security and energy independence.

34. Health/Welfare Economic Stability Environment/Global Warming Food VS Fuel

35. We will be seeking rezoning for the Green Fuels L.L.C. site west of Vermillion. We would appreciate your support at the rezoning meeting. There will be future meetings to secure the corn stover needed for the project and for investment opportunities. Everyone is welcome to come and participate. This presentation will be on the web at www.ruralenergymarketingllc.com and will be available for download. Thank you for coming. If there are any questions we will answer them at this time.