“This is a game-changer” John Hines Former Deputy Secretary for Water

1. “This is a game-changer” John Hines Former Deputy Secretary for Water PA Department of Environmental Protection September 24, 2013

2. Forward Looking Statements This presentation contains, in addition to historical information, forward-looking statements regarding Bion Environmental Technologies, Inc. (the "Company"), which represent the Company's expectations or beliefs including, but not limited to, statements concerning the Company's operations, performance, financial condition, business strategies, and other information and that involve substantial risks and uncertainties. The Company's actual results of operations, most of which are beyond the Company's control, could differ materially. For this purpose, any statements contained in this presentation that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate," “projected" or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. Factors that could cause or contribute to such difference include, but are not limited to, limited operating history; uncertain nature of environmental regulation and operations; uncertain pace and form of development of nutrient (N&P) reduction market; risks of development of first of their kind Integrated Projects; need for substantial additional financing; competition; dependence on management; and other factors. Investors are urged to also consider closely the disclosures and risk factors in the Company’s current Form 10-K, filed with the Securities and Exchange Commission, available at www.sec.gov.

3. Two Multi-Billion $ Investment Spaces Agriculture Livestock Clean Water Agriculture consumes 70% of the water used in the US

4. Clean Water Act • Established 1972 • TMDL – Total Maximum Daily Load • Point Sources – REGULATED • Smoke stack or discharge pipe • Sector Allocation to municipal wastewater treatment, power generation, industrial facility, etc. (regardless of cost) • Currently removing high levels of nutrients • Incremental improvements = last-mile costs • Storm Water Runoff – REGULATED • Very expensive • Non-point Sources – NOT REGULATED • Diffuse over a wide area • Agriculture • More than 70% of the problem

5. US Clean Water Spending • Largest cost driver: nitrogen removal • Sector Allocation NO LONGER SUSTAINABLE

6. Bion Overview • Excess nutrients recentlyacknowledged by US EPA as the greatest water quality problem in the U.S. today – livestock/agriculture • Bion’s technology largely eliminates the environmental impacts of large-scale livestock production, focused on nutrients • ONLY technology that provides comprehensive treatment for ‘wet waste’ stream (dairy, beef cattle and swine) • Reclaims renewable energy and nutrients from the waste stream • Proven; scalable; commercially-tested; 7 US, 6 international patents ____________________________________________________________________ • New Integrated Projects • Increased scale – reduced acreage; strategic locations – reduced transportation costs; resource and operational efficiencies • Existing operations • On-site treatment with scale/central processing facilities • Substantially lower-cost alternative to publicly-funded downstream wastewater treatment

7. Livestock: Largest Source of Excess Nutrients Traditional Manure Management Practice Nitrogen released as ammonia gas (NH4) [50%] Manure slurry Lagoon 75% N lost to the environment Manure slurry Field N Run-off [25%] Crop Uptake [25%] Aquifers Surface Waters Downstream Estuaries • Chesapeake Bay, GOM, Great Lakes, etc, etc, etc. • Hypoxia from algae/phytoplankton blooms from excess nitrogen • Pathogens, toxic blooms • Very expensive to treat water downstream now that nitrogen is diluted with millions of gallons of water

8. How Big is the Problem? • 9 million dairy cows (12 million w/ support) • 67 million swine • 100 million cattle/calves • 2 billion chickens and turkeys Nutrient load is 130X human waste - UPSTREAM

9. How Bad is the Problem? US EPA now acknowledges that excess nutrients are the greatest water quality problem in the US today Increasing scrutiny of ammonia and greenhouse gas emissions, pathogens, antibiotics and hormones

10. Chesapeake Bay TMDL • Executive Order 13508 (May 12, 2009) • US EPA TMDL: first watershed-wide TMDL • Reduce 63M lbs of Nitrogen by 2025 • Six states, DC • Estimated cost (Bay-wide): • 2009: $15B to $28B • 2012: $30B to $50B • Substantial penalties for non-compliance

11. Unsustainable Cleanup Costs • $30 to $50 billion • Sector allocation strategy is obsolete/unsustainable • 2012 Chesapeake Bay Commission/RTI Report • 50% to 90% savings through nutrient trading • Distributed treatment approach • Verifiednon-point source reductions fulfill mandated reduction targets • LAST STEP: Mechanism to fund non-point source treatment • Public-Private-Partnerships (PPP) – private sector competes for public funding through an RFP that funds lowest cost solutions • Highly successful precedent: Colorado River Basin Salinity Control Project

12. PA Legislative Initiative • 2013 PA Legislative Budget and Finance Committee Report • Upstream non-point source strategy (large agriculture projects) can cut costs up to 80% of previous estimates = $1.5 billion annually • “Pennsylvania’s compliance with the CB TMDL standard is at risk as there is insufficient funding available to comply under today’s existing cost structure.” • PA Senate Bill 994 (Major Watershed Improvement Act) • Introduced June 5, 2013 • Competitive procurement program for nutrient reductions • Equal access to public funding – all solutions based on cost • 15 to 20 year off-take agreements with PA • Passed Senate Agriculture and Rural Affairs Committee June 11 • Not considered in June session due to extended budget debate • Fall session begins September 23, 2013 • Anticipate passage by full Assembly by Dec 2013

13. Coalition for an Affordable Bay SolutionFounding Members www.biontech.com www.kreiderfarms.com www.fofarms.com www.jbssa.com www.affordablebaysolutions.org

14. Annual Cost of Upstream Alternatives Source: PA LBFC Report; CB Commission Report • Bion can begin delivery of up to 2 million pounds based on full operation of Kreider 1 and 2 systems (target 2015)

15. Kreider Farms EconomicsPending PA SB 994 • Kreider 1: 2,000 dairy cows (system operating) • Kreider 1 financed by PENNVEST (PA Infrastructure Investment Authority) - $7.8 million, non-recourse, low interest, 10 yr • Anticipate Kreider 2 long-term rev agreements for 2015 • Kreider 2: 7 million chickens (target development 2014/15) • Kreider 1 & 2: ~2 million pounds annually at $8+ per pound per year when in full operation (anticipate 2015) • Anticipate $7M to $10M annual EBITDA when Kreider 1 & 2 in full operation at 2M pounds • Future Kreider expansion (Phase 3) could increase to 3 million pounds (target 2016)

16. Utility Revenue Model (Kreider Only) • Customer: Pennsylvania • 15 to 20 year guaranteed off-take agreements (per PA study recommendations) • Comparables P/E • York Water (YORW) 25.5 • Aqua America (WTR) 22.7 • American Water Works (AWK) 20.5 • Implied valuation of Kreider Project (20 P/E) • Phase 1 & 2 (2M pounds) $140M to $200M

17. National Watershed Model The Company has commenced activities related to marketing and potential use of its technology in relation to expansion and/or development of CAFO’s in the Great Lakes watersheds and the Midwest states with current efforts being most advanced in Wisconsin…June 2013 10K • Mississippi River Basin Healthy Watersheds Initiative • Existing unmet local phosphorus TMDLs • US EPA designates LA coastline “impaired” • First step in MRB-wide nitrogen TMDL? • Great Lakes Water Quality Agreement • International treaty • Great Lakes Restoration Initiative – US • Great Lakes Nutrient Initiative – Canada • Driving phosphorus TMDLs

18. Wisconsin • Lake Michigan • Canada-US treaty driving phosphorus TMDLs • Green Bay and Madison Municipal Sewer Districts facing unaffordable costs to upgrade plants and install storm water projects • Bion in discussions with both cities and several large upstream dairies regarding waste treatment at the dairies • No other options except $billons in municipal plant upgrades and storm water projects • Adoption by any other state will validate the national strategy, which will validate the entire regulatory mandated-space as well as Bion’s technology as a solution

19. Market Analysis – Potential U.S. Retrofit • Thousands of farms that meet Bion’s minimum scale thresholds* • No competitors to date • Dairy • 44% of US dairy cows on farms over 1,000 head • 5,280,000 head (including support herd) • Swine • 61% of US swine on farms over 5,000 head • 40,260,000 head • Increased future regulation of Concentrated Animal Feeding Operations (CAFOs)? Ammonia? Greenhouse gases? Pathogens? Antibiotics? Hormones? *Not all farms in nutrient-impaired watersheds, overwhelming majority are; illustration only

20. Federal Court Ruling – Sep 13, 2013 • American Farm Bureau (et al) challenge to US EPA and CB TMDL filed Mar 13, 2011 • US District Court rejected arguments that the “EPA overstepped its bounds under the federal Clean Water Act, created an unfair process and used standards that were flawed or unlawfully complicated” • “…US EPA within its authority…to set and enforce standards to reduce nitrogen, phosphorus…” • Subject to appeal

21. International Initiatives • “The Company has been pursuing these opportunities [project development] within the United States during the later stages of technology redevelopment and has recently begun activities to pursue such opportunities internationally”…10Q March 2013 • 540 dead zones worldwide • Nutrients focus of international concern • Livestock waste now a national security issue in China • Ed Schafer, Bion’s Exec Vice Chairman, is former US Secretary of Agriculture and former two-term Governor of North Dakota

22. Bion Technology: Highest and Best Use • New state-of-the-art, large scale, highly-efficient livestock production facilities in strategic locations, with a minimal environmental and physical footprint, that can be integrated with dedicated food processing (and in some locations biofuels production)

23. Current Beef Supply Chain Problems Finishing Cow calf operations Market Market Refrigerated transport Cow calf operations Refrigerated transport Further Process Slaughter Further Process Backgrounding on grass Refrigerated transport Market Refrigerated transport Market Cow calf operations Slaughter Cow calf operations Finishing

24. Bion Integrated ProjectCompetitive Advantages from Advanced Waste Treatment • Small physical footprint – reduced acreage/CAPEX • Increased scale/density • Co-locate processing • Co-locate biofuels • Non-traditional strategic locations Waste Livestock Biofuels Distiller Grains Inputs • Single-sourcing • Branding • Food safety/security • Energy/resource efficiencies • Onsite production and use of renewable energy • By-products • Substantially reduced transportation costs Energy Meat/Milk Processor Waste Livestock Energy Waste Energy Bion System Bion System Bion System Livestock <50 miles Nutrients Water

25. Bion Beef Supply Chain Model Market Cow calf operations Market Cow calf operations Integrated Backgrounding Finishing Slaughter & Further Process Feeder stock transport Integrated Backgrounding Finishing Slaughter & Further Process Feeder stock transport Cow calf operations Market Cow calf operations Market • Low cost producer • Reduced risks – improved margins

26. Little or No Value for Technology Bion’s technology is proven and accepted but… the SECTOR – clean water spending on non-point sources – has not yet been validated • Evolving opportunity • No comparables – no research

27. Opportunities as We See Them… } • Short-term: sector validation = Bion validation • Non-point source spending • PA legislation • Adoption in another state • International adoption • Integrated Project • Up-list to national exchange • Six months? • Mid-term: system deployment/initial projects development • Initial Bion Services (retrofit) revenues • Research; modeled growth based on project pipeline • 6 to 24 months? • Long-term: revenue ramp • Revenues from multiple Services projects • Integrated project revenues • Future regulation? • 24 months plus Bion Services – Regulatory Mandate Economic Solution