OPERATIONS CORPORATE OFFICE

Algae Bioenergy Solutions, INC.Graniteville, South Carolina

Contact: Thomas AnhornVP of Operationstanhorn3@pelerin.us

211-A Bobby Jones ExpresswayMartinez, GA 30709706.823.2000 office706.722.0149 fax

Contact: Chuck ParduePresidentchuckpardue3@gmail.com

ALGAE BIOENERGY SOLUTIONS, INC.

“Economic Considerations of Commercial Algae Development or can you make a profit from slime?”

© COPYRIGHT ABS, INC. 8/15/11

~PRESENTERS~CHUCK PARDUE &THOMAS ANHORN

When transportation fuels are compared side-by-side, algae oil-delivered fuels offer significant economic, ecological and safety advantages over petroleum products.

Algae Bioenergy Solutions, INC. (ABS) will use state of the art photo bio-reactors/led air systems in an indoor natural climate controlled environment to produce a high volume of oil each day.

ALGAE OIL

© COPYRIGHT ABS, INC. 8/15/11

(ABS) IS AN ALGAEDEVELOPMENT COMPANY

ABS DETERMINES SITE AND ECONOMIC FEASIBILITY OF ALGAE PROCESSING THROUGH JOINT VENTURES WITH:

• WASTE WATER TREATMENT PLANTS• MUNICIPAL SITES• INDUSTRIAL SITES• AGRICULTURAL OPERATIONS

© COPYRIGHT ABS, INC. 8/15/11

ECONOMIC CONSIDERATIONS OF ALGAE DEVELOPMENT

MOST ALGAE COMPANIES ARE FOCUSED ON TECHNOLOGY

• SPECIES SELECTION AND DEVELOPMENT• PONDS vs PHOTO-BIOREACTORS vs

FERMENTERS• HARVESTING• EXTRACTION

© COPYRIGHT ABS, INC. 8/15/11

FOCUS INSTEAD ON CAPITAL EXPENSEAND OPERATIONAL EXPENSES

• CAPITAL EXPENSE COSTS• LAND, PERMITTING, ENGINEERING• EQUIPMENT, INSTALLATION• $120,000 TO $2,000,000 PER ACRE• LABOR, UTILITIES, FEEDSTOCKS, SEED ALGAE, MAINTENANCE, ADMINISTRATIVE

(MARKETING, INSURANCE, ETC.)

© COPYRIGHT ABS, INC. 8/15/11

THERE’S GOT TO BE A MORE ECONOMICAL WAY TO MAKE ALGAE

DINOSAURS DID IT ON THE CHEAP WHY NOT US?

© COPYRIGHT ABS, INC. 8/15/11

OPERATIONS EXPENSE

ONE TON OF ALGAE REQUIRES:• 1/9 TON OF NUTRIENTS, 1.8 TONS OF CO2 NUTRIENTS COST “$400 to $800” A TON CO2 $20 - $30 A TON

• SUNLIGHT OR ARTIFICIAL LIGHT, ELECTRICITY

.08 - .11 CENTS A KILOWATT

• TO MAKE A PROFIT YOU NEED FREENUTRIENTS, CO2 AND LOW COST ELECTRICITY

© COPYRIGHT ABS, INC. 8/15/11

WHERE TO FIND FREE OR LOW COST NUTRIENTS

• WASTE WATER TREATMENT PLANTS HAVE PLENTY OF NUTRIENTS (NITRATES, ETC)• PERHAPS 300 PPM AFTER THEY HAVE REMOVED THE “NASTY STUFF”• THEY WANT TO REDUCE NITRATES AND PHOSPHATES AFTER THEY CLEAN THE WATER BEFORE DISCHARGE BACK TO RIVERS & STREAMS• DIVERT ONE OF THEIR EFFLUENT STREAMS TO “YOUR” ALGAE PROCESSING PLANT

© COPYRIGHT ABS, INC. 8/15/11

Algae (oil) feedstock for biodiesel will be developed and produced at its South Carolina facility:

• Using inexpensive nutrients from waste water and CO2 from our gassifier and digesters we will produce large volumes of algae on a major scale utilizing state of the art photo-bioreactors at our indoor (300,000 square foot)constructed facility.

In 2011 a nearby biodiesel plant will require up to 40 million gallons of feedstock a year and will pay $2.00 to $3.00 USD for that oil.

• Electricity not used in the production process will be sold to nearby industrial facilities, identified and are viable users.

• Dry Algae product not used to produce electricity will be sold as agricultural fertilizer or animal feed.

Algae Bioenergy Solutions, INC. (ABS) is seeking technology and financial partners to develop a 40 Million gallon a year algae processing plant in South Carolina.

© COPYRIGHT ABS, INC. 8/15/11

Green Valley Biofuels, LLCBiodiesel Plant - Warrenville, SC• Chuck Pardue, President and part

owner

• Developed site selection, property

• Acquisition, permitting, financing

construction and final certification

• Full ASTM compliant and Permitted

• Permitted for 35 Million Gallons

• Ability to utilize Algae oil feedstock

to make biodiesel

ABS HAS A BUILT IN MARKET FOR ALGAE OIL

© COPYRIGHT ABS, INC. 8/15/11

© COPYRIGHT ABS, INC. 8/15/11

ABS will take nutrients from waste water treatment facilities such as this nearby treatment facility.

© COPYRIGHT ABS, INC. 8/15/11

ADDITIONAL FREE NUTRIENT SOURCES

• FARMS• CATTLE AND DAIRY FARMS• CHICKEN FARMS• CATFISH FARMS

REFERENCE: DR. RON PUTT’S “HOW-TO MANUAL ON GROWING ALGAE ON FARMS”

“ALGAE AS A BIODEISEL FEEDSTOCK”

© COPYRIGHT ABS, INC. 8/15/11

PROFITS FROM SALES OF ALGAE PRODUCTS

“HIGH VALUE PRODUCTS/SHORT TERM VS COMMODITY PRODUCTS LONG TERM”

• ALGAE OILS (LIPIDS)• BIODIESEL FEEDSTOCK (THAT IS WHY ABS IS WORKING ON ALGAE DEVELOPMENT)• JET FUEL (EUROPEAN AIRLINE DEMAND 2012)• BOILER FUEL• VARIOUS EXPERIMENTAL FUELS• ALGAE DRY PRODUCT• ETHANOL• ANIMAL AND FISH FOOD• FERTILIZER ALGAE FOR NUTRICEUTICALS, OMEGA-3, COSMETICS, HIGH

VALUE; BUT WILL MARKET BE SATURATED?

© COPYRIGHT ABS, INC. 8/15/11

TO MAKE A PROFIT in algae production technology is IMPORTANT; but finding ways to reduce capital costs by joint ventures, dual uses of existing resources and finding free sources of nutrients, co2 and low cost energy is EVEN MORE IMPORTANT!

© COPYRIGHT ABS, INC. 8/15/11

CAPITAL EXPENSES

1. CO-LOCATE WITH EXISTING INDUSTRIAL SITES.

2. PICK SITES WITH EXISTING INFRASTRUCTURE.

3. CONSIDER JOINT VENTURES WITH COMPANIES WHO HAVE EXISTING INFRASTRUCTURE.

4. CONSIDER EMPTY TEXTILE MILLS AND OTHER INDUSTRIAL SITES LOOKING FOR A USE.

© COPYRIGHT ABS, INC. 8/15/11

“YES WE CAN !”

www.absgreenfuels.com

© COPYRIGHT ABS, INC. 8/15/11

OPERATIONS CORPORATE OFFICE

Algae Bioenergy Solutions, INC.Graniteville, South Carolina

Contact: Thomas AnhornVP of Operationstanhorn3@pelerin.us

211-A Bobby Jones ExpresswayMartinez, GA 30709706.823.2000 office706.722.0149 fax

Contact: Chuck ParduePresidentchuckpardue3@gmail.com