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Presentation on Biofutures International plc

Summary of Business Case. Strong biodiesel demand driven by legislation and environmental concernDevelopment of large scale biodiesel plantWith opportunity to expand should demand dictateStrategically advantageous locationLow cost feedstock supplySales market flexibilityUse of proven technolog

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Presentation on Biofutures International plc

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    1. January 2007 Presentation on Biofutures International plc

    2. Summary of Business Case Strong biodiesel demand driven by legislation and environmental concern Development of large scale biodiesel plant With opportunity to expand should demand dictate Strategically advantageous location Low cost feedstock supply Sales market flexibility Use of proven technology In both construction and operation Strong management team

    3. Equity Structure and Finance Major shareholders Zurex Corporation 45% Phillip Carter 11% Gartmore Investment Mgmt 7% Modal Capital Partners 5% Credit Suisse Securities 5% Ł14 million raised via listing on AIM November 2006 Bank finance to be finalised

    4. Zurex: Proposed large scale biodiesel production facility Plant at Palm Oil Industrial Cluster at Lahad Datu in Sabah Malaysian Government developing key palm oil logistic hub with deep water port Biodiesel production licence granted Malaysian pioneer tax status

    5. Potential Growth Business Global biodiesel demand expected to treble by 2010 200,000 tonne per annum biodiesel plant start-up in Oct 2008 Further growth opportunity via expansion to 1 million tonnes Structural competitive advantage Palm oil is a low cost pure biodiesel feedstock Malaysia is world’s largest palm oil producer and is geographically well-placed for all biodiesel sales markets

    6. Biodiesel Derived from natural vegetable oils Alternative fuel for diesel engines Usable pure or mixed in any ratio with fossil diesel Reduces greenhouse gases and emissions Safe fuel to store and handle Non-toxic and bio-degradable End products recognised to international standards

    7. The Biodiesel Market is Growing European market Majority of biodiesel sales growing via legislative backing & fiscal support EU Directive of 5.75% biofuels by 2010 should push demand from 6m to nearly 14m tonnes pa Proposal for 10% target for 2020 Asian markets developing US market Intends to raise biofuel use to 4% by 2012 Uses existing distribution infrastructure Ease of adoption

    8. Palm Oil Feedstock Advantage Low cost biodiesel feedstock US$540/tonne is US$190/tonne less than cost of rape seed oil Far higher yield per acre than any other current vegetable oil Palm oil biodiesel proven Meets legislative standards Blended with mineral diesel e.g. 5% blend for European market Palm biodiesel used successfully in German trains

    9. Lurgi Technology Well Proven First biodiesel plant constructed in 1988 SE Asia plant in 1991 Over 25 plants in operation More than 60% of global production expected to be from Lurgi constructed plants by 2007 200 ktpa plants in operation in Germany Other oleochemical plants in SE Asia

    10. Project Schedule and Costs Early concept design and site survey work complete Capital cost estimate Ł28 million Working capital estimate prior to start-up Ł12 million First oil anticipated October 2008

    11. Key Business Variables Feedstock prices Long term growth in supply, forward contracts Biodiesel market Macroeconomics of demand, legislative support via fiscal measures and volume mandates Project delivery Technology choice, project management team experience Plant not yet procured Currency risk Off take market is US$, lending in US$

    12. Management Team Nicholas Gee* (aged 43) – Executive Chairman Petroleum Engineer and MBA Strong oil and gas exploration and production business management background BP, Global Marine, Weatherford International Julie Pomeroy* (aged 51) - Finance Director Chartered Accountant Experienced public company FD Carter & Carter Group plc, Weston Medical Group plc Wayne Rudd (aged 40) – Projects Manager Experienced business manager Strong capital petroleum project management experience Statoil, Halliburton, Weatherford * Main Board director

    13. Management Team (cont.) Iain Young (aged 47) – Commercial Manager Civil engineer and MBA Experienced project manager in oil and gas sector, including project commercial risk management 3 years in biodiesel fuel and technology sector Jack Yong (aged 35) – Operations Manager Chemical Engineer 9 years biodiesel plant development and production management experience in Malaysia See Keat Tatt (aged 43) – Project Financial Controller Chartered Accountant Senior finance roles in US multinational oil services industry

    14. Non-executive Directors Phillip Carter CEO Carter & Carter Group plc Major shareholder of Biofutures Chris Dennison Founding partner of Bywater strategy consultancy Consults in all areas of oil, gas and petrochemical industry Arthur Lim Board member of several companies including, ANC Group Pte Ltd and I-Invest Pte Ltd Previously held senior roles in financial services sector Christopher Price Chartered Accountant FD – Epson UK Limited Joe Wong Board member of several companies including eAssetManagment SB and Fullerton Investments Ltd Previously held senior roles in financial services sector

    15. January 2007 Presentation on Biofutures International plc

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