John Biondi President

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C5?6 Technologies
John BiondiPresident
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C5?6 Technologies

• C56 develops and markets enzymes to the
  bio-refining and biofuels industries
• ? Spun out from Lucigen Corporation
• - All technology and molecules transferred
  under a no-charge license arrangement
• ? Platform technology 6 M Grants
• - Discovery tools 8 years, 4.5 M
• - Biofuels enzymes 3 years, 1.5 M
• ? 2M new grants and loans for C5-6

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C5?6s Competitive Advantage

• C56 has solved one of the fundamental problems
  in enzyme discovery.
• ? The entire 25B enzyme market is based on
  material generated from less than 1 of the
  worlds microbes
• ? The remaining 99 cannot be grown in the lab

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C5?6s Technology Application
Unique Cloning ToolsSingle Cell Genomics
Platform Technology
Rare Microbes
High Value Enzymes
Biofuels
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Benefits for Biofuels

• C56 has the ability to find and produce new
  enzymes with targeted attributes
• ? Developing enzymes to fit the process rather
  than a process to fit the enzyme
• ? Bioethanol process 80ºC, pH 5-6
  requiring thermostable enzymes with
  specific
• characteristics

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C5?6 Target Market
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C5?6 Technology Roadmap
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C5?6 Technology Roadmap Corn

• 15 wasted in current process due to
  limitations of current enzymes
• ? CornBuster I 2-3 of starch remains bound
  to cellulose - successful starch release
  enzymes currently in ethanol plant lab
  trials
• ? CornBuster II 11-13 of corn is cellulose
  and hemicellulose - candidate cellulases
  in C56 lab testing
• CornBuster enzymes are process enhancements,
  not replacements, for current enzymes

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Corn Ethanol Value Proposition

• C56 enzymes deliver a strong value proposition
  for corn dry-mill producers
• ? 12 efficiency target 12M additional
  production (50 million gallon typical
  plant/2 gallon ethanol)
• OR
• ? 6M in corn and energy savings if plant is at
  capacity (corn _at_ 2 bushel)
• Sales value to C5-6 800k to 1.5M/year
  per customer

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C5?6 Technology Roadmap Soy

• C56s thermostable hydrolases convert soy
  meal carbohydrate to ethanol
• ? 2 billion gallons of ethanol possible from
  current soy meal production ? Soy market
  dynamics extremely favorable
• -U.S. meal marketing down
• -Biodiesel market needs feedstock
• -Corn plants soon saturated
• Sales value to C5-6 4--5M/year per customer

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Soy Ethanol Value Proposition

• C56s ability to convert soy delivers high
  value to producers and millers in two ways
• ? C5-6 enzymes convert zero value
  carbohydrates to high value ethanol
• ? Cost-effectively concentrating the
  protein, increasing its value
• Current gross margin/bushel 0.80 New gross
  margin 7.20

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Soy Ethanol Market Overview
Global Potential Production Capacity
Production Potential Potential
Plants Country (gallons) _at_ 50M
gal/plant
U.S. 2 billion 40 Brazil 2
billion 40 China 750 million 15
India 500 million 10 Ethanol Plant
Revenue (50Mg/y) Ethanol 100M (ethanol
_at_ 2) Protein 350M (protein _at_ 0.35/lb.)
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Progression of Developments
Enzymes for todays products bridge to tomorrows
biofuels production technologies
Products CornBuster I CornBuster II SoyBuster
Thermostable EnzymesXylanases Cellulases Hemicell
ulases Alpha-galactosidases Mannases Galactanases
Future Process Technologies Cellulosics Biorefini
ng
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Cellulosic Ethanol Overview
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Time to Market Overview

• C56 is set to deliver product to market in a
  short timeframe

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C5?6 Technologies Management Team

• David Mead, Ph.D. Founder CEO
• 20 yrs biotech RD management 4 patents
• John Biondi, MBA President
• 30 yrs business leadership experience 5
  start-ups
• Phil Brumm, Ph.D. Chief Scientific Officer
• 20 yrs management in industrial enzymes 7
  patents
• Rick Remeschatis, MBA, CFA, CPA, CFO
• 30 yrs private public companies

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C5?6 Technologies Intellectual Property

• Platform Technology
• ? CloneSmart vector technology - granted
• ? Ex cyto PCR amplification technology- pending
  
• ? Linear Vector, Host Cells and Enzymes -
  pending
• ? GC Cloning Technology pending
• Molecular Patents
• ? Viral Polymerase - pending
• ? Novel Thermostable Cellulase - pending
• ? Thermostable Viral Polymerase - pending
• ? Novel Thermostable Hemicellulase - in process
• ? Thermostable Enzymes for Soy Meal
  Carbohydrate Hydrolysis - in process
• Process Patents
• ? Process for Freeing Entrapped Starch from
  Corn Fiber- in process
• ? Process for Producing Ethanol from Soy meal -
  in process

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C5?6 Offering

• Raising 5 million
• Structure
• Reg D offering
• Soliciting both individual and institutional
  investment
• Investment History
• Past Grants 6 M
• Current Grants 1.45 M
• Development loans 250k
• Line of Credit 500k
• Uses of Funds
• Completes corn and soy developments
• Deploys direct sales and marketing effort
• Brings company to profitability

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C5?6 Financial Goals
Projected Financials and Market Penetration
Base Case--No Soy Partner
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C5?6 Financial Goals
Projected Financials and Market Penetration Soy
Strategic Partner Case
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Soy Ethanol Market Overview
Projected Market and C5-6 Penetration Plant
Ownership Model
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C5?6 Technologies
John Biondi, Presidentjbiondi_at_c56technologies.com
608 836-3587 ext 3212120 W. Greenview Dr.,
Suite 9Middleton, WI 53562
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Competitive Overview-Corn
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Competitive Overview-Corn
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Competitive Overview-Soy
No known competitors, one known university
project C5-6 Technologies has the only known
significant grant in the area (1.29 million
DOE/USDA)
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C5?6s Technology Advantage

• Unique Enzyme Products
• ? High thermal stability
• ? High activity
• ? Multi-functional activities
• ? Works in current plant process