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The White Fish Equivalent of Salmon

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Sushi ,Sashimi $ 4 B year 10 chains

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A fish that suits Asian, and European cuisine

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Aquaculture Species Production

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The worlds 3 premium white fish areHalibut, Chilean sea bass, and sablefish

• The supply , has decreased by 75% or 200 million pounds over the last 25 years.

• The demand for high quality marine fish is increasing at the highest rate in history.

• The price has almost doubled in the last ten years.

• These three premium white fish sell for $8.00 to $10.00 a pound, twice that of farmed salmon.

• Only sablefish is suited for aquaculture production. Chilean sea bass grow too slowly and halibut requires too much pen space to be grown economically.

• SFC’s goal is to replace the 200 million

pounds of high end white fish lost from the

wild harvest with farmed sablefish, at the

cost of production of farmed salmon.

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75% Decline In Premium White Fish Harvest

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

Wild Sablefish

Moving average (Wild Sablefish)

Halibut

Moving average (Halibut)

Sea Bass

Moving average (Sea Bass)

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Sablefish CharacteristicsA. fimbria (Sablefish) high-value, luxury fish

• The white flesh is highly regarded by seafood connoisseurs for its beautiful snow-white fillets, rich succulent flavour and flaky, velvety texture.

• High omega-3 baking, broiling, grilling, smoking and frying.

• Large scale hatchery production has been achieved.

• Easy fish to grow in sea-pens.

• Low mortality rates.

• Indigenous to Alaska B.C, Washington, Oregon, California.

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Sablefish Canada Inc. Overview• (SFC) has developed the technology and infrastructure to produce 1 M

plus sablefish from egg to plate at a market value of $30M

• Only company in the world that produces commercial scale sablefish.

• Hatchery 2M fish capacity

• 2 farm sites that are stocked with 456,000 sablefish.

• Technical expertise, brood stock

• Marketing team

• Produced 1.3 million sablefish.

Sold $13 million farmed sablefish.

to Japan, North America, Europe

and Hong Kong.

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CommercializationHuge market over $1 billion annually.

Profitable cost of production.

Large scale hatchery production is proven.

Low mortality rates because if innate robustness and hardiness.

“Own the Species” because the barrier to entry is significant.

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Triple bottom line • 1.) Economically sustainable profitable .

• 2.) Environmentally sustainability

-low mortality rates, very disease resistant , native species

• 3.) Socially sustainable

-SFC operates farm sites in the Kyuquot First Nations community and

is the largest employer in the area.

-SFC has signed a First Nations partnership agreement with the Kyuquot.

-Organic certification achievable

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Market Achievements

Miso-marinated Sablefish:The famous Nobu signature dish.

Canadian company targets restaurants, high-end retail.

“The three-star German restaurant Amador has already placed orders for the fish, while in retail the fish is also now being sold by Manor, the largest department store chain in Switzerland.”

Feb 13, 2014

• SFC has sold $13 million of farmed sablefish since 2009.

• SFC commands a 20% premium over the wild sablefish price in all global markets.

• Farmed Sablefish has an excellent shelf-life and is transported fresh, whole or dressed.

• SFC currently delivers fresh sablefish to end-users in Asia, Europe and North America, where it is positioned as a luxury seafood.

• SFC’s sablefish is served at several Michelin-starred restaurants around the world.

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The Japanese MarketJapan consumes 80% of the world’s Sablefish and SFC has sold $6 million of sablefish in Japan.

SFC sablefish is a popular high-end seafood in Japan, served in sushi restaurants and available at prestigious seafood retailers.

Chuo-gyorui, Japan’s leader, is the key wholesaler for SFC sablefish in Tokyo’s famed Tsukiji Market.

Hokkushin: Japan’s largest seafood store.

Gatten: Popular quality sushi chain.

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N.A. & Europe White Tablecloth Market• SFC has sold $5 million of farmed sablefish into the North American and European

market.

• Some examples of our leading clients are:

• Steven Spielberg’s executive chef at Dream Works Studios in LA• Thomas Keller at the US #1 rated French Laundry in Napa Valley, CA• Robert Deniro’s Nobu’s of Manhattan• Prime Minister Steven Harper was served our fish when he visited Victoria.

• As volumes increase, SFC will sell to premium retail stores. Wegmans and Whole Foods chains have already sold trial sablefish and wish to expand.

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Barriers to Entry “Own the Species” • The barriers to entry are significant. SFC believes that it can “own the species” and

license new entrants that want to produce sablefish.

• Intellectual Property and trade secrets required to commercialize sablefish include:

• Working out the complex hatchery production techniques to produce large numbers of juveniles.

• Developing a selected brood stock population that has the genetic characteristics for commercial fish production.

• Developing the technology to produce all female populations, which grow 25% faster than male populations.

• Farm husbandry best practises that maximize the feed conversion ratio.

• Developing sablefish vaccination protocols to enable Organic Certification.

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The Sablefish Canada Investment Opportunity

To invest in a profitable business in the protein sector that is

economically, environmentally and socially sustainable.

• The high risk development R & D phase is complete.

• SFC has a blue ribbon management team for marine fish production

and marketing.

• Funding raised will be used for infrastructure to scale up production and

grow out inventory.

• Attractive scientific, production and

market attributes support SFC

credentials as a ‘lead program’ for

future licensing of producers.

• The barrier to entry is about ten years

.