Barley Protein Concentrate

1
Fuel and Food
Montana Microbial Products

• Barley Protein Concentrate
• and
• Ethanol

2
Opportunity

• MMP developed barley protein concentrate, ethanol
  co-product
• 60 high quality protein product
• Demonstrated as a replacement for fishmeal in
  aquaculture feed
• Potential markets in poultry, hog, and specialty
  feeds
• Very Profitable, high value products

3
Aquaculture Market Replacing Fishmeal

• The fastest growing sector of agriculture
• Fishmeal 3 billion market for protein ingredient
  in feeds for farmed fish,
• Need for alternatives
• Supply, price will limit aquaculture growth
• Depletion of ocean fisheries
• Organic toxins, and phosphorus pollution
• Major research effort to develop plant based
  protein sources to replace fishmeal

4
Barley Protein Concentrate

• The first plant protein to replace 100 of
  fishmeal in trout diets USDA
• The first plant protein with the
• Nutritional Quality
• Competitive Cost
• Potential Volume
• To replace fish meal in feeds for high value
  farmed fish

5
Trout Growth Studies
6
Market Entry

• First Market US Trout
• 27,500 tons 75 in South Idaho, Customers 3 feed
  manufacturers
• First production plant Montana
• 5,300 tons BPC, 1.7 million gallons ethanol,
  800,000 bu barley
• Profitable in the first full year of operation

7
BPC Competitive Advantage

• MMP will sell BPC based on three compelling
  advantages
• Lower, stable price
• Equivalent or better feed conversion efficiency
• Zero Phosphorus discharge from BPC

8
Market Opportunity

• Trout 511,00 metric tons
• US Trout -27,500 tons
• Salmon 1,409,000 metric tons
• Norway 600,000 Australia 16,000
• Chile 485,000 Ireland 15,000
• UK 125,000 New Zealand 10,000
• Canada 125,000 US 10,000
• Shrimp 3,200,000 metric tons
• Fishmeal gt1.5 million tons in these markets

9
Expansion Strategy

• Expand Montana Production, North American Salmon
• 30,000 tons BPC, Replace 1/3 of N.A. protein
• 12 million gallons ethanol
• Use 6 million bushels barley
• License Technology into International Markets
• Salmon trout Europe, South America
• Shrimp Asia, South America
• Other species

10
Status

• Independent testing and commercial trials with
  trout completed, willing buyers
• Good results in other species of fish. Salmon
  trials on-going.
• Pilot plant operated at commercial flow rates but
  batch vs continuous operation- no scale-up
  issues.
• Engineering complete for commercial plant
• Conditional purchase orders for BPC and ethanol

11
Financing Requirements

• 12M project produces 5,300 tons of BPC,
  approximately 2M gallons of ethanol, and 19 high
  paying jobs
• Cash positive in second month of operation.
• EBTDA 2.8M first year opeation
• Have commitment of 5.0M from VC firm, need
  additional equity or bank loan

12
Win, Win, Win

• Solutions for sustainable aquaculture
• Improved aquaculture economics
• Value-added products from low input crop
• Renewable fuels
• Rural jobs
• Higher farm incomes
• Solves environmental issues
• Good profitability

13
Good Project for Montana, Good Project for
Agriculture, Good Project for Aquaculture How
do we get it done?