Eco Oil Business Plan

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Strategic Business Plan Private & Confidential 2018
The Turning Point for Biodiesel Adoption

The information presented in this document is highly sensitive and confidential and is to be used by authorized parties for the purpose of determining a preliminary indication of interest in Eco Oils Solutions Corporation (“the Company”). The recipient of the Business Plan agrees by its receipt not to reproduce, duplicate, or reveal, in whole or in part, information presented herein without the written permission of the Company.

The information contained in the Business Plan was provided by the Company and other sources. It has been reviewed, approved, and released by the Company, who assumes responsibility for its contents. Estimates and projections contained herein have been prepared by the management of the Company, involve significant elements of subjective judgment and analysis, and are based on certain assumptions. Actual results may vary from estimates and projections and these variations may be material.

No representation or warranty, expressed or implied, is made as to the accuracy or completeness of the information contained in this overview, and nothing contained herein is, or shall be relied upon as, a promise or representation, whether as to the past or the future. The Business Plan does not purport to contain all of the information that may be required to fully evaluate the Company for a potential business relationship, and any recipient thereof should conduct its own independent analysis and due diligence process.

THIS PRESENTATION IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY ANY SECURITY.

COMPANY CONTACT:

Robert McAllister

Eco Oils Solutions Corporation

567 Michigan Drive, Suite 100 Oakville, Ontario L6L 0G4

Tel: 1(905) 339-3555 ext. 101 Email: info@EcoOilsCorp.com

Web: www.ecooilscorp.com

PREPARED BY:

500-666 Burrard Street, Vancouver BC V6C 3P6

(604)689-2556

www.concordbusiness.com

info@concordbusiness.com

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Eco Oils Highlights

Name of the Company Eco Oils Solutions Corporation

Business of the Company Advanced proprietary technology for biodiesel fuel generation in the renewable green energy sector. Produces fuel for auto and commercial trucking, materials handling, shipping, mining, aviation, heating & other sectors. Offering a method for farmers to prosper by off-season crop rotation & yields from more than 18 different renewable plant sources

Trademark #1745556 Canadian Intellectual Property Office, Gatineau, Quebec

Place of Business Head office is in Burlington, Ontario Canada

Business Model Eco Oils has patented technology that offers a complete end-to-end solution in biodiesel adoption, integration and distribution to bring this most plentiful and clean fuel to multiple sectors in the US, Canada & international markets.

Market Size

The global second-generation biofuels (advanced biofuels) market could reach $24 billion by 2020, registering a compound annual growth rate (CAGR) of 49.4 percent annually from 2014 – 2020. Government mandates spur this exponential growth to reduce emissions1 .

U.S. consumers saw a record of almost 2.9 billion gallons of biodiesel and renewable diesel in 2016, outpacing the previous record by almost 40 percent. For the first time ever, the monthly market topped 300 million gallons, with December’s numbers coming in at 362 million gallons.2

Capital Requirements

Phase 1: $34,500,000

Future Plans Phases 2 and 3 expansion plans can be accommodated on the current proposed site. Successive plans will accommodate additional processing plants in the USA, 1 tank farm and increasing the tank farm in proportion to the number of plants, and eventually operating plantations, including overseas to grow renewables as feed stock for biofuels.

1 Allied Market Research, Global Second Generation Biofuels Size, Industry Analysis, Trends, Opportunities, Growth and Forecast, 2013-2020

2 US biodiesel market hits new high, imports pass 1 billion gallons. By The National Biodiesel Board | January 24, 2017.

http://www.biodieselmagazine.com/articles/2147964/us-biodiesel-market-hits-new-high-imports-pass-1-billion-gallons

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| STRATEGIC BUSINESS PLAN Table of Contents 1. 1 Executive Summary.........................................................................................................................................2 1.1 COMPANY DESCRIPTION 2 1.2 MISSION & VISION................................................................................................................................................3 1.3 COMMITMENT 3 1.4 PACIFIC JUNCTION – A NEW BIODIESEL PLANT 3 1.4.1 Ideal Location.................................................................................................................................................................4 1.4.2 Plant & Equipment Design 4 1.5 PROPRIETARY 2STEP PROCESS 4 1.5.1 Stage 1............................................................................................................................................................................4 1.5.2 Stage 2 4 1.5.3 The Eco Oils Advantage 5 1.6 BENEFITS OF ECO OILS TECHNOLOGY VERSUS EXISTING TECHNOLOGIES........................................................................5 1.7 WHAT DOES ECO OILS OFFER THAT SEPARATES IT FROM OTHER BIODIESEL PRODUCERS? 6 1.8 CAPITAL REQUIREMENT, CORPORATE ROLLOUT, TIMELINE 7 1.8.1 Use of Proceeds .............................................................................................................................................................7 1.8.2 Return on Investment 8 1.9 THE OPPORTUNITY................................................................................................................................................8 2. 2 Corporate Overview..................................................................................................................................... 10 2.1 CORPORATE DATA 10 2.2 BOARD OF DIRECTORS 11 2.2.1 Robert McAllister, Founder, President & Chief Executive Officer.............................................................................11 2.2.2 Vince Neves, Vice President, Manufacturing 11 2.2.3 Allan Roden, Process Engineer 12 3. 3 Products & Services 14 3.1 OVER 18SOURCES OF FEEDSTOCK.........................................................................................................................14 3.2 BIOFUEL CROP YIELDS 15 3.3 THE ENVIRONMENTAL BENEFITS 16 3.4 THE ECO OILS DESIGN ADVANTAGES 16 3.5 RESEARCH AND DEVELOPMENT 16 3.6 PLANT LIFE CYCLE FOR FUEL PRODUCTION AND DISTRIBUTION...................................................................................17 3.7 USMANUFACTURING PLANT RATIONALE 17 3.8 PLANT PLANS .....................................................................................................................................................18 3.9 FUTURE PLANS & PROJECTS..................................................................................................................................18 4. 4 Biodiesel Benefits 20 4.1.1 Environmental benefits 21 4.2 ECO OILS INTELLECTUAL PROPERTY -RESEARCH & DEVELOPMENT PROJECT FOR BIODIESEL 21 5. 5 Market Research.......................................................................................................................................... 23 WHY RENEWABLES, WHY NOW? ...........................................................................................................................................23 5.1 ADDITION OF CLEAN ENERGY TO OUR FUEL MIX BY 2030 25 5.2 DIMINISHING USE OF FOSSIL FUELS........................................................................................................................25 5.3 THE STATE OF THE ENVIRONMENT 26 NEED TO SLOW CO2EMISSIONS.............................................................................................................................................27 5.4 THE TRANSPORT SECTOR AND THE ENVIRONMENT 28 5.5 BIODIESEL AS A FUEL SOURCE 29 5.5.1 Biodiesel is considered to be the most promising fuel of the future:.......................................................................30 5.5.2 Biodiesel is Versatile 30
| STRATEGIC BUSINESS PLAN 5.6 THE BIODIESEL GENERATION MARKET WORTH $138.2BILLION BY 2019 ..................................................................31 5.7 BIODIESEL GENERATED FROM MANY SOURCES 31 5.8 BIODIESEL ADAPTATION TO VEHICLES.....................................................................................................................31 5.8.1 Biodiesel Fuel Cell Adaptation to Trucks & Fleets in the USA....................................................................................32 5.8.2 Biodiesel Fuel Cell Adaptation to Trucks & Fleets in Canada ....................................................................................33 5.8.3 Big Auto Betting on Biodiesel Cars 34 5.9 REMOTE COMMUNITIES.......................................................................................................................................35 5.10 ENERGY STORAGE, BACKUP &EMERGENCY POWER 36 5.11 THE FUTURE OF ENERGY 37 5.12 THE FUTURE OF ENERGY IN THE USA.....................................................................................................................37 5.13 THE FUTURE OF ENERGY IN CANADA 39 6. 6 Marketing Strategy 41 VALUE PROPOSITION.............................................................................................................................................................41 6.1 CORPORATE POSITIONING 41 6.2 SALES AND DISTRIBUTION CHANNEL STRATEGY........................................................................................................41 6.3 ADVERTISING AND PROMOTIONAL STRATEGY 41 6.4 BRAND DEVELOPMENT TARGETS 42 6.5 STRATEGY ..........................................................................................................................................................42 6.6 PRICING STRATEGY 42 6.7 COLLATERAL MATERIALS ......................................................................................................................................43 6.8 USAINDUSTRY ASSOCIATIONS 44 6.8.1 Advanced Biofuels Association 44 6.8.2 National Biodiesel Accreditation Commission 44 6.8.3 American Council on Renewable Energy (ACORE) 44 6.9 CANADIAN INDUSTRY ASSOCIATIONS 45 6.9.1 Canadian Renewable Fuels Association (CRFA) 45 6.9.2 Reseau Biofuelnet Canada 45 6.9.3 National Biodiesel Board 45 6.10 TRADE MAGAZINES 46 6.10.1 Biofuels International 46 6.10.2 Biodiesel Magazine 46 6.10.3 Biofuels Digest 46 6.11 GOVERNMENT FUNDING 47 7. 7 Competition 49 7.1 BIOFUEL COMPANIES IN THE USA: ........................................................................................................................49 7.2 BIOFUEL COMPANIES IN CANADA: 54 8. 8 Exit Strategy 56 9. 9 Financial Overview....................................................................................................................................... 58 9.1 PURPOSE OF THIS BUSINESS PLAN 58 9.2 HISTORICAL INVESTMENT .....................................................................................................................................58 9.2.1 Use of Proceeds of Historical Investment 58 9.3 CAPITAL REQUIREMENTS 61 9.4 USE OF PROCEEDS 61 9.5 ASSUMPTIONS....................................................................................................................................................62 9.6 REVENUE PROJECTIONS 63 9.7 INCOME STATEMENT ...........................................................................................................................................64 9.8 PROFITABILITY & RETURN ON INVESTMENT 65 9.9 CASH FLOW 66 9.10 BALANCE SHEET..................................................................................................................................................67
| STRATEGIC BUSINESS PLAN 9.11 BREAK EVEN ANALYSIS.........................................................................................................................................68 9.12 SENSITIVITY ANALYSIS 69 9.13 RATIO ANALYSIS..................................................................................................................................................70 10. 10Appendix A................................................................................................................................................... 71 11. 11Bibliography 76

1 Executive Summary

The End of Fossil Fuels and the Rise of Renewables

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1 Executive Summary

1.1 Company Description

Eco Oils Solutions Corporation (“Eco Oils” or “the Company”) is a private biodiesel production company that owns patented and proven sustainable energy & biodiesel production technology and Intellectual Property (IP). Biodiesel is a clean burning fuel produced from domestic, renewable resources. Eco Oils is the only company in this sector to have advanced patented technology to produce biodiesel fuel from over 18 different renewable sources. This offers maximum benefits to the future of biodiesel production and reduces dependence on imported oil and diesel, creating green jobs and improving the environment.

Eco Oil Solutions is an innovative company dedicated to superior biodiesel production techniques, biodiesel research and development, mechanical operations and safety. Eco Oils offers a complete end-to-end technology solution that bridges the current gap in the adoption, integration and distribution to bring this most plentiful and clean fuel to multiple verticals & industries across the US, Canada and internationally.

Integrator Distributor Incubator Aggregator

Eco Oils has aggregated targeted technologies that offer integral pieces in the biodiesel energy industry value chain. Individual pieces may be mechanical, biodiesel refining technology solutions and IP.

Eco Oils has developed proprietary technology to improve biodiesel production systems. The company incubates promising technology that will further renewable fuel production systems.

Eco Oils is a vertical integrator that generates value by identifying and partnering with key input suppliers, R&D, product development and distribution chain participants that offer important synergies for market leadership.

Biodiesel is sold as a premium fuel and Eco Oils will distribute its energy products in global markets beginning in the USA, then Canada and branching out into international markets.

Eco Oils has assembled a stellar world class team of individual professionals with over 100 + years of combined industry experience. The company aggregates, incubates, integrates and brings to market products, services, solutions and technologies that are positioned to make a significant impact across the national and global biodiesel markets. Eco Oils has strategic relationships with industry leading associated companies that bring immense value to Eco Oils integrated biodiesel vertical markets. A global perspective and local Canadian roots will help accelerate the Company’s profile in this growing industry.

Through innovative thinking and partnering with governments and industry leading pioneers in biodiesel production, Eco Oils is helping to drive the imminent transition from dirty and scarce fossil fuels to clean and plentiful biodiesel. Biodiesel has the potential to help in eliminating the world's dependency on fossil fuels and dramatically reduce greenhouse gases. Today, biodiesel is used to power vehicles, trucks, boats, and planes; materials handling vehicles, remote power stations, mining equipment and emergency backup solutions, as well as for heating oil for homes and businesses.

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1.2 Mission & Vision

Eco Oils mission is to bring biodiesel to the forefront of renewable green biodiesel energy through widespread commercialization and by changing the world’s perception of how energy is produced.

According to a recent report3 , the global biofuel market was valued at USD 168 billion in 2016, is expected to reach USD 218.7 billion in 2022 and is anticipated to grow at a CAGR of 4.5% between 2017 and 2022. Future plans include two additional processing systems.

Key factorswhichhavecontributedto thisgrowtharetechnology advances,publicperceptionandlowercosts achieved through economies of scale. A key element of Eco Oils’ mission is to play an instrumental role in adding biodiesel to the renewable energy equation and create the same acceptance, technological advances, growth and economies of scale as with solar and wind.

1.3 Commitment

Providing the best alternative to fossil fuel products possible while maintaining value for shareholders.

First and foremost,Eco Oils iscommittedto makingtheworld’sabundant andcleanform ofenergy, Biodiesel, aswidely accessible to as many people, businesses and industries as possible. Eco Oils believes abundant, clean and economical energy has arrived and we are committed to making sure it is here to stay

Eco Oils is incorporated in the USA and plans operate in the USA, Canada and abroad. The Company is composed of like-minded environmentally conscious individuals who share common goals, values and visions of making a positive impact on the way the world perceives, creates and uses energy.

Eco Oilsplans to be atthetipof the spearofthe biodiesel industry by creating mass acceptance and appeal for biodiesel power through innovative thinking, strong collaborative partnerships, ongoing research and development and biofuel production.

Eco Oils will strive to maintain a futuristic view of biodiesel products and services that lower carbon emissions, fuel business growth, is more innovative in the products and services developed, in the way problems are solved, and in the way the Company serves the needs of an increasingly global and green customer and partner base.

1.4 Pacific Junction – a new Biodiesel Plant

Eco Oils plans to upgrade a biodiesel plant in Pacific Junction, Iowa, as its first installation. This plant could support a 20 Million Gallon a year capacity that will be scalable to 60 Million Gallons per year in future phases. There are several advantages to this location and the specifications of this first build.

3 Sarasota, FL, Jan. 09, 2018 (GLOBE NEWSWIRE) Zion Market Research has published a new report titled “Biofuels Market Analysis by Type (Bioethanol,Biodiesel),andbyForm(Solid,Liquid,andGaseous)- GlobalIndustryPerspective,ComprehensiveAnalysis,andForecast,2016–2022”.

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1.4.1 Ideal Location

In the State of Iowa ("IA") there are 41 Ethanol producing plants and in the State of Nebraska ("NE") there are 27 Ethanol producing plants all of which are producing Ethanol from corn. The corn by-product becomes Eco Oil’s feedstock. By choosing to invest in Pacific Junction, IA, Eco Oils will be centrally located to prime feedstock sources. The initial plant will use distilled corn oil for feedstock. There is a limited number of Ethanol plants in the US that can produce biodiesel from distilled corn oil. By centralizing in Iowa with local rail access Eco Oil will be ideally situated to service both NE & IA.

1.4.2 Plant & Equipment Design

We have strategic partnerships with industry design and installation specialists with over 40 years of premier refinery design to installation experience. The company has been in the business of designing refineries for edible and nonedibleoils forover40 years and has sold and installed plants worldwide. The key to thedesign is proprietary technology enabling Eco Oils’ operating unit and project to uniquely produce edible oil from most any oil bearing biomass seeds. Eco Oil’s proprietary technology is designed to upgrade the plant to produce biodiesel fuel from Cornoil. The two stage processing platform gives Eco Oil a competitive advantage allowing greater flexibility of feedstock input. Based on the readily available(corn)biomassandEco Oil’stwo separateoutputstages,EcoOilcanreadily switchbetweenfeedstocks and market demand for Biodiesel or Edible oils, corn or soybeans and other feedstocks as maybe available.

1.5 Proprietary 2 Step Process

Eco Oils has a proprietary advanced two stage processing system that produces the purest grade of biodiesel available while maintaining flexibility when using different types of feedstock. Biodiesel is a diesel-like fuel derived from vegetable oil or other renewable sources. It can be made from corn oil, soy, canola oil, waste cooking oil, and even animal fats.

Biodiesel is commercially produced by the 'esterification' of energy crops such as oil seed rape or from waste vegetable and animal oils (from the food industry). The oils are first filtered to remove water and contaminants and are then mixed with an alcohol (usually methanol) and a catalyst. This breaks up the oil molecules before they are separated and purified.

Eco Oils Two Stage Processing System enables the seamless change of the input feedstock to adjust to market forces. Instead of one huge processing plant converting a single feedstock oil into edible oil or biodiesel, Eco Oils has multiple processing plants that can simultaneously use different feedstocks.

The two stage processing system can produce edible oils or biodiesel without any major alteration to the production plant. Full flexibility is maintained at all times.

1.5.1 Stage 1

The first stage converts crude oils such as corn, canola, soy and other such crop seeds into a pure oil designed for human consumption.

1.5.2

Stage 2

The second stage converts this oil into B100, the highest grade of biodiesel available. In the event the price of Biodiesel drops to the point that the economics do not work, the edible oil can be sold to the market instead.

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Biodiesel offers one of the most promising solutions for reducing the world's carbon emissions and dependence on fossil fuels. Eco Oils is dedicated to helping drive the imminent transition from dirty and scarce fossil fuels to clean and plentiful biodiesel by introducing biodiesel powered products and solutions into the economy and by developing innovative and sustainable biodiesel infrastructure solutions to help fuel those products and solutions.

1.5.3 The Eco Oils Advantage

Eco Oils converts low quality Triglyceride Feed Stocks to Methyl Esters (Biodiesel. There are two main challenges in converting low quality triglyceride feed stocks to methyl esters or biodiesel: the first is ensuring that the reaction proceeds to any level; and, the second is ensuring that the final biodiesel output meets the highest quality requirements of the industry. In managing to meet these two primary challenges, the operations must be accomplished at the lowest possible cost and highest efficiency.

The Eco Oils system will meet both of these challenges with multiple technological approaches. The flexibility of employing new technologies, allows for the resolution of problems encountered with feed stocks, and results in a biodiesel product of maximum quality and minimum cost.

Often, the feedstock will contain catalyst poisons that must be removed prior to processing by refining, bleaching and/or bleaching techniques used in the edible and inedible oil processing industry. By employing various techniques either singularly, or in combination, the result is a feedstock that will convert into methyl esters with maximum yields.

In addition, some contaminates will prevent the oil process from advancing to completion. In other cases, pretreatment will not remove all contaminates and may result in a product that fails to meet specifications of high quality finished biodiesel. Refining,bleaching and/or distilling ensures that the final product achieves the highest specification. In addition, the flexibility of the processing system, captures waste materials (by-products) that can be converted to a feedstock (recycling) in a secondary recovery program, thereby further increasing the yield. By-products may also be considered for additional processing; for example, glycerin can be distilled into USP grade products which has the potential to be more economically important than the biodiesel itself. It is also possible to further recover an enriched stream of sterols and cholesterol from the feedstocks that may have a large monetary value.

In summary, the benefit of the Eco Oils process is the high efficiency of its Thin Film Wall Distillation Process. The Thin Film Wall Distillation Process, coupled with the flexibility of the Batch/Continuous processing allows the Eco Oils process to meet the highest world standards for biodiesel. The ability to process low cost feed stock and reprocess waste into biodiesel or other valuable products like glycerin, can further reduce cost and increase profits, thereby positioning Eco Oils as a leader in the biodiesel industry.

1.6 Benefits Of Eco Oils Technology Versus Existing Technologies

▪ Continuous Processing System - From 10 MGY and up

▪ Yield Losses - 2%

▪ Processing System - Pre-treatment of incoming oil, methanol reclamation and product clean-up is part of the design of operations, which avoids excessive waste and process losses. This unique system combines reclaim of methanol out of the glycerin, pre-treat low quality feedstocks, water washes the product as well as dry and removes soap with silica treatment when requires.

▪ Ability to take 100% FFA feedstocks.

▪ Ability to recycle fatty acids and soap stocks. This ability minimizes yield losses to 2%, compared to existing technologies that experience losses of 12 to 17%.

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▪ Eco Oils Thin Film Distiller can be used in the Pre-Treatment of feedstocks and Post-Purification of Biodiesel.

▪ Pre-Treatment: Low cost feedstocks usually contain catalyst poisons that prevent their use in production. By stripping the fatty acids, the feedstocks can then can be converted into Biodiesel.

▪ Post-Purification: The Eco Oils Thin Film Distiller can steam distill the product, producing a “water white” distillate that will always meet the ASTM4 specifications.

1.7 What Does Eco Oils Offer That Separates It From Other Biodiesel Producers?

Eco Oils has proven production capabilities of B100 biodiesel fuel from 18 different oil bearing seeds. Eco Oil’s R&D team will be testing new sources of biodiesel fuel production from additional other oil based seeds

▪ There are few if any biodiesel producers that can convert distilled corn oil into biodiesel B100. Eco Oils has the advantage of removing the fatty acid through its periptery processing system.

▪ Eco Oils unique two stage processing system can produce both edible oils and biodiesel.

▪ Most producers of biodiesel fuel experience a production loss of, on average, between 12 to 17%. Eco Oil’s system has a 2% processing loss, increasing the yield/profitability.

▪ Eco Oils system removes high fatty acids from corn oil from distilled grain

▪ The location chosen represents a continuous source of feedstock. Iowa represents 41 Ethanol plants and Nebraska has 27 Ethanol plants all using corn meal. All Ethanol plants are extracting distilled corn oil and selling it.

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Eco Oil’s ability to produce B100 from 18 proven sources of feedstock provides a sound basis for a business case to build additional plants wherever oil bearing seeds are grown. 4 ASTM is the American Section of the International Association for Testing Materials

1.8 Capital Requirement, Corporate Rollout, Timeline

In order to achieve the goals of this business plan, the Company requires an investment of $34,500,000:

1.8.1 Use of Proceeds

Negotiations have commenced for the purchase of a plant in Iowa. Currently on the market for $1.5M, management is negotiating a purchase price for this plant closer to one million dollars US. As this is a closed plant there is a significant financial edge in taking advantage of what could otherwise cost approximately double the proposed amount to build a new plant.

What Does Eco Oil Get For $1 Million Dollars?

1. A 15 thousand Sq. Ft. plant

2. 2 Rail Sidings

3. Complete Electrical System

4. A Tank farm

5. 2-2.5 million storage tanks (in and out) that can be leased for $280,000 per year.

6. Loading and unloading for both rail car and truck with all pumping systems in place.

7. 8.64 Acres of land

8. Road access

9. Power

10. Water

11. Septic Field, Sewer, Etc.

Retrofitting and Employing the Eco Oils System:

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Financing Structure Phase 1 Financing $34,500,000 Financial Highlights Fiscal Year Ends: 31-Dec Tax rate 30.00% Eco Oils Total Capital Requirement 1-20 Million Tank Biodesel Processing System 28,000,000 $ Installation 5,000,000 $ Additional Small Tanks 200,000 $ Subtotal 33,200,000 $ Administrative Support 300,000 $ Contingency 1,000,000 $ Subtotal 1,300,000 $ Total 34,500,000 $ Office & Admin Capital Requirement Building & Equipment

1.8.2 Return on Investment

Profitabilityand ROI

1.9 The Opportunity

Renewables are being adopted in developed and emerging countries as a natural and substantial part of the fuel economy. They can often be produced more cheaply than high wholesale power prices; they reduce a country's exposure to expected future fossil fuel prices; and renewable production can be scaled quickly to meet unfulfilled demand for fuel The compound annual growth rate (CAGR) of 49.4 percent is projected industry insiders5

The biodiesel industry has steadily grown over the past decade, with commercial production facilities from coast to coast. The industry reached a key milestone in 2011 when it crossed the one billion gallon production mark for the first time. By 2015, the biodiesel and renewable diesel market had doubled to more than two billion gallons. In 2016, the market was record high 2.8 billion gallons, according to EPA figures. 6 According to the U.S. EPA’s EMTS data for 2017, the U.S. market for biodiesel and renewable diesel topped 2.6 billion gallons.7

Biodiesel, the most efficient renewable, has substantial carbon emissions savings and is being sought after as a viable part of the energy sector mix. Global biofuels production cuts consumption of crude oil by 1 million barrels a day and this is just the beginning of anticipated accelerated growth.

Eco Oils offers the opportunity for investors to profit from the dynamic growth in the biodiesel fuel sector by developing leading edge and proprietary technology company. Investors will derive benefit from the Company’s strategic expansion in product and market scope while it improves its efficiencies in manufacturing and distribution processes. Eco Oils is confident of achieving its objective of being a sustainable and leading biodiesel company.

5 Allied Market Research titled, “Global Second Generation Biofuels Size, Industry Analysis, Trends, Opportunities, Growth and Forecast, 2013-2020. 6 http://biodiesel.org/production/production-statistics . 2018.

7 BioDiesel Magazine, Despite challenges, 2017 was a solid year for US biodiesel, By Ron Kotrba | February 01, 2018

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Year 1 Year 2 Year 3 Year 4 Year 5 Revenue 64,680,000 $ 66,620,400 $ 68,619,012 $ 137,238,024 $ 141,355,165 $ Gross Margin 12,570,000 $ 12,941,100 $ 13,323,093 $ 27,100,458 $ 27,905,035 $ Gross Margin (%) 19% 19% 19% 20% 20% Net Income 6,026,067 $ 6,236,893 $ 6,453,386 $ 15,256,400 $ 15,764,007 $ Net Profit Margin (%) 9% 9% 9% 11% 11% Initial Investment 34,500,000 $ 5-Year ROI 17% 18% 19% 44% 46% 5-Year Annualized ROI 8%

2 Corporate Overview

The Company and the Team

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2 Corporate Overview

2.1 Corporate Data

Corporate Data

Name of Corporation Eco Oils Solutions Corporation

Incorporation Date 2012-04-26

Incorporation Number 8178704

Business Number 818916108RC0001

Principal Place of Business 5575 North Service Road, Suite 401 Burlington, Ontario, Canada L7L 6M1

Telephone +1(905) 339-3555

Website www.EcoOilsCorp.com

Email info@EcoOilsCorp.com

Board of Directors Robert W. McAllister, President & CEO

Corporate Attorney Trevor Waterman, In House Counsel

NAICS Codes 2012 – 325190 - Other Basic Organic Chemical Manufacturing

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2.2 Board of Directors

The Eco Oils team consists of highly motivated and dedicated business leaders, entrepreneurs and technology pioneers with 100+ years of collective experience

2.2.1 Robert McAllister, Founder, President & Chief Executive Officer

Robert W. McAllister brings decades of senior level C-Suite management to Eco Oils, the company he founded. In addition to Eco Oils Solutions Corporation, Mr. McAllister is head of Romco Corporation Holdings which has interests in four mid-sized corporations:

▪Capmor Group

▪Comfact Group

▪Compro Group

▪Professional Leasing Group

An entrepreneurial visionary, Robert McAllister leveraged a career in finance and leasing to acquire technology and proprietary systems that enable the development of biodiesel fuels with novel and innovative processes. The technology acquired and held by Eco Oils leads the way to pioneering state-of-the-art production methods of extracting fuels from renewable sources that offer alternatives to the high carbon emissions of traditional fossil fuels.

In addition to developing Eco Oils, Mr. McAllister, through the Romco Corporation, holds interest in Compro International Corporation, a company that designs and manages biodiesel plants worldwide.

Coupled with his legendary status and capabilities in business, Eco Oils is certain to offer exceptional products and innovation in the emerging energy sector of renewable fuels under Robert McAllister’s management

2.2.2 Vince Neves, Vice President, Manufacturing

Vince Neves has 40 years of experience in mechanical engineering and is well qualified to lead the development, market entry and expansion of new technologies, products and business units. Mr. Neves has a history in manufacturing pressure vessels, heat exchangers, and process piping as well as business and technology development with domestic and international experience in food processing and manufacturing services.

Vince Neves is also the VP Production at Compro International Corporation, a company that designs and manages biodiesel plants worldwide. His experience in operations management, employee supervision, strategic planning, technical and economic feasibility studies, marketing and sales, quality control and processing research will ensure the continued success of Eco Oils

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2.2.3 Allan Roden, Process Engineer

Allan Roden, BE, Bachelor of Applied Science (Chemical Engineering), University of Toronto; MBA, Butler University, and MS (Master of Industrial Engineering), Purdue University brings a wealth of experience to his role as Process Engineer at Eco Oils. Mr. Roden has conceived, formulated new products, and received 12 patents for work in fats and their substitutes resulting in their commercialization. He has managed capital programs with budgets up to $12 million and brings extensive knowledge of cost reductions, product reformulation and efficiency improvements to the portfolio of projects in Eco Oils.

Allan Roden has extensive management and leadership experience, has built large scale production plants, developed overseas facilities, and created many products in the edible oil refining sector. He has brought engineering support to many of Eco Oils projects, and, as a valuable member of the team, Allan Roden will direct new product and plant development and operations.

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3 Products and Services

How we are turning the most abundant element in the universe into the cleanest fuel and making it accessible to everyone.

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3 Products & Services

Eco Oils is an innovative company dedicated to a superior Biodiesel production technique, biodiesel research and development, mechanical operations and safety. The main product of Eco Oils is biodiesel fuel

3.1 Over 18 Sources of Feedstock

Eco Oils Solutions Corporation has a large advantage over existing biodiesel producers, as its state of the art technology can produce B100 which is the purest form of biodiesel fuel produced from 18 different sources of renewable feedstock.

Eco Oils is not confined to the same sources of feedstock that fluctuate in price as are its competitors. Eco’s production equipment can convert to any one of 18 different feedstocks with only minor adjustment and no downtime.

Of major importance to environmentalists, Eco Oils can process oil bearing seeds that are not acceptable for human consumption or they can process immature crops that are not marketable. Even with this flexibility, Eco continues to explore new sources of feedstock to grow its deep industry knowledge.

The 18 sources of Feedstock are:

▪ Corn Oil

▪ Soybean

▪ Cotton Seed

▪ Palm Oil

▪ Algae

▪ Rapeseed

▪ Pennycress

▪ Camelina

▪ Carinata

▪ Jatropha

▪ Crude Canola Oil

▪ Yellow Grease (recycled cooking oils from restaurants)

▪ White Grease – Animal fats and tallow, poultry fat

▪ Refined (RBD) Soybean Oil

▪ Crude Soybean Oil

▪ Com Oil Extracted from Distillers Grain

▪ Coconut Oil

▪ Brown Grease

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3.2 Biofuel Crop Yields

Biofuel Crop Yields

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Crop kg oil/ha/yr litres oil/ha lbs oil/acre US gal/acre maize (corn) 145 172 129 18 cashew nut 148 176 132 19 oats 183 217 163 23 lupin (lupine) 195 232 175 25 kenaf 230 273 205 29 calendula 256 305 229 33 cotton 273 325 244 35 soybean 375 446 335 48 coffee 386 459 345 49 flax (linseed) 402 478 359 51 euphorbia 440 524 393 56 pumpkin seed 449 534 401 57 coriander 450 536 402 57 mustard seed 481 572 430 61 camelina 490 583 438 62 sesame 585 696 522 74 safflower 655 779 585 83 rice 696 828 622 88 sunflowers 800 952 714 102 cacao (cocoa) 863 1026 771 110 peanut 890 1059 795 113 rapeseed 1000 1190 893 127 olives 1019 1212 910 129 castor beans 1188 1413 1061 151 jojoba 1528 1818 1365 194 jatropha 1590 1892 1420 202 macadamia nuts 1887 2246 1685 240 brazil nuts 2010 2392 1795 255 avocado 2217 2638 1980 282 coconut 2260 2689 2018 287 oil palm 5000 5950 4465 635 algae (open pond) 80000 95000 70000 10000

3.3 The Environmental Benefits

The main product of Eco Oils is biodiesel fuel which has the following environmental benefits:

• Biodiesel reduces emissions of carbon monoxide by approximately 50% and carbon dioxide by 78%

• Contains no Sulfur

• Increased lubricity

• Biodegradable and non-toxic

• Biodiesel can be used in a pure form or blended with fossil fuels such as petroleum diesel.

• Biodiesel production creates a meal by-product that can be sold to a number of secondary markets such as to be used for fertilizer, cattle feed etc. Nothing needs to go to waste.

• If market prices for fossil fuels drop drastically, the bio oil processed at Eco Oils is edible and can be sold into the food chain offering strong revenues in this fundamental market sector.

• Because of the two stage processing system there is no contamination to the edible oil. The advantages are unique, and no other system has this capability.

• Eco focuses primarily on edible and non-edible feedstock that can be grown on untilled land that farmers may not be otherwise using. Pennycress can be grown in the winter and actually increases the yield of summer crop if it is planted in the same field. This means more food available to the market, not less.

3.4 The Eco Oils Design Advantages

Eco Oils innovative technology and oil processing systems offers significant advantages over other, older biodiesel production systems.

• Can use any oil or fat as a feedstock

• Pre-Treatment allows recycle of alcohol (Methanol-Ethanol)

• Can use any alcohol (Methanol – Ethanol)

• Can be easily and quickly converted to an edible oil inter-esterification plan

• Uses proven technology

• Continuous or batch processes

• Process problems will not affect products

• Compact with limited distillation requirements

• Complete use of all ingredients

• The majority of biodiesel companies use outdated technology and rely on a single input crop, exposing themselves to the risks of availability and price fluctuations.

3.5 Research and Development

The Company has completed years of R&D and will continue to improve its processes and IP. Continued R&D will include:

• Feedstock and fatty acid chain profiling

• Crude glycerin and free fatty acid refinement techniques

• Process water analysis, recovery and decontaminations

• Flux of Sulphur and Acid concentrations through production

• Feedstock and Mythylesters fatty acid chain research and compilation of data-based results to grow profiling capabilities

• Feedstock and fatty acid chain profiling

• Biodiesel and jet fuel

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3.6 Plant Life Cycle for Fuel Production and Distribution

3.7 US Manufacturing Plant Rationale

▪ Management is of the opinion that the US presents a larger market opportunity for their products and has determined that this is advantageous to the revenues of the Company.

▪ The US government supports biofuel production and R&D

▪ Management has chosen the State of Iowa as an optimum place for the biodiesel production plant due to the following reasons:

o Pacific Junction IA is centrally located to our prime feedstock sources.

o By centralizing in Iowa with direct local rail access, we are ideally situated for distribution.

o Available and affordable land with facilities

▪ The US Congress provides two tax credits for every US gallon of bio Diesel produced in the US:

o Congress has approved one ($1.00) for each one US Gallon of biodiesel produced in the US.

o There is another program that provides ($0.85) for each one US gallon of biodiesel produced in the US. This represents a profit over and above the margins of profit of the biodiesel produced and sold.

▪ The size of the plant is designed to facilitate six production plants. As we increase access to more markets and feedstock we will build additional production plants until we have six (6) production plants operating.

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▪ In subsequent phases management plans to build plantations in Central and South America. We need to control our source of feedstock; Jatropha is a good source of feedstock and if we have our own plantations of Jatropha we can reduce our feedstock cost by up to 50%.

▪ In each phase, we will build storage tanks and holding tanks to facilitate the additional production plants.

3.8 Plant Plans

▪ See Appendix A: New Iowa Plant for Sale.

3.9 Future Plans & Projects

Phase 2 and 3 will be accommodated on the same footprint as the Pacific Junction Plant. The Phase 2 expansion can be accommodated within the existing on site structures. Phase 3 expansion will require additional plant construction.

The following figures represent the costs to increase the plant capacity to 40,000,000 US gal of B100 Biodiesel fuel.

Crude Oil Storage Tanks: 20 – 30 ft diameter X 48 ft high capacity 1,040,000 US Gal Tanks

Biodiesel Storage Tanks: 2 - 30 ft diameter 48 ft high capacity 1,040,000 US Gal Tanks

Miscellaneous Storage Tanks: 3 - 10 ft diameter 30 ft high capacity 520,000 US Gal Tanks

Estimated cost $4,000,000

Biodiesel Production Plant $28,000,000

Processing Equipment:

Degumming Esterification

Bleaching Distiller

Vacuum Reaction Methanol Vapor System Glycerin Refining

Auxiliary Equipment:

Boiler Nitrogen System

Incinerator Waste Water Plant

Cooling Towers Laboratory

Air Compressor

Estimated cost $2,500,000

TOTAL COST OF PHASE 2 $34,500,000

Future plans call for the Company to start their own plantations to grow Jatropha and other feedstocks for biodiesel oil. Land can be acquired in countries where the government supports agricultural initiates such as Panama, Costa Rica, and Ghana and potentially Cuba.

Plant installations in offshore regions will cost of $25 to $30M per plant.

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4 Eco Oils Biodiesel Benefits

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4 Biodiesel Benefits

Biodiesel is a clean burning fuel produced from domestic, renewable resources. Biodiesel burns cleaner than petroleum diesel – and reduces greenhouse gas emissions by 57 to 86 percent, emissions of Carbon Monoxide by approximately 50% and Carbon Dioxide by 78%8 .

The use of biodiesel has significant positive impacts on the environment, human health, local economic growth, and the national economy. It provides consumers with meaningful fuel choice – and helps diminish the threats associated with petroleum dependence.

Biodiesel is the most diverse fuel on the planet. It is made from regionally available, renewable resources that are abundant in the U.S., including soybean oil, other plant oils, recycled restaurant grease (“yellow grease”), and tallow and other fats.

Biodiesel is a totally green product and is better for the environment because it is biodegradable and made from renewable resources. The EPA reports that biodiesel reduces greenhouse gas emissions by 57 to 86 percent, depending on the type of oil or fat used in production. That makes it one of the most practical, cost-effective ways to immediately benefit the environment.

100% Green & Renewable

Biodiesel differs significantly from conventional fuels, rising above the myths about first generation products. Biodiesel is made from renewable oil by-products and waste from fat, so portions meant for the dinner table still make their way to the local grocery store. Additional cropland is not needed to grow materials for biodiesel; instead it uses readily available, diverse resources.There are surplus stocksof fats and oils sufficient to meetnear and medium term biodiesel target volumes.

Over its lifecycle biodiesel reduces greenhouse gas emissions by as much as 86 percent compared to petroleum, is easily produced from 18 sources and reduces engine maintenance by up to 50%. Biodiesel offers:

▪ Has the highest energy-in, energy-out ratio of any domestic transportation or heating fuel

▪ 50% carbon emission reduction

▪ Exceptionally clean

▪ Energy security

▪ Energy independence

▪ Safe to produce, store and transport

▪ Easy to store in large amounts

▪ Carcinogen Reduction

▪ Easily produced from different sources

▪ Non-toxicity

▪ Respiratory disease risk reduction

▪ Cost savings

▪ Commodity flexibility

▪ Agricultural profitability

▪ Recycling Income

▪ Job creation

▪ Tax revenue

8 Biodiesel.org,Sep28,2015,America'sAdvancedBiofuelasmuchas81percentbetterthanpetroleum http://biodiesel.org/news/news-display/2015/09/28/nation'sstrictest-regulatory-board-affirms-biodiesel-as-lowest-carbon-fuel http://biodiesel.org/home

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4.1.1 Environmental benefits

▪ 100% Green & Renewable

▪ Reduces lifecycle greenhouse gases by 86%

▪ Lowers particulate matter by 47%, reduces smog and makes air healthier to breathe

▪ Reduces hydrocarbon emissions by 67 percent

▪ For every unit of fossil energy that it takes to produce biodiesel, 5.5 units of renewable energy are returned, the best of any U.S. fuel

▪ Biodiesel is the only commercially available fuel to meet the EPA’s definition of an advanced biofuel. These requirements protect forests and native grasslands and ensure renewable fuels have multiple environmental benefits over fossil fuels.

Made from abundant, diverse resources, biodiesel is America’s only commercially advanced biofuel.

4.2 Eco Oils Intellectual Property - Research & Development Project for Biodiesel

The focus of Eco Oils’ R & D is aimed at developing innovations for both the supply and demand sides of biodiesel to help improve and further accelerate the growth of clean sustainable energy solutions. Eco Oils’ R&D division consists of a stellar team of scientists, engineers, researchers and energy experts with a combined experience of 100+ years.

R&D is the continual improvement of all processes related to biodiesel production. This includes, but is not limited to, developing new catalysts for esterification and transesterification, working with low quality and alternative feedstocks, improving and simplifying quality control testing, developing methods and systems for sidestream management, reducing waste and improving the efficiency of the production process.

Eco Oils requires testing and R&D on-site and the Company plans to install the equipment to not only test and further develop its own processes, but also to work with others interested in testing their products and ideas. Successful ideas will be implemented in the plant in order to go from idea to implementation faster than anybody else.

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5 Market Research

The race for renewable energy has passed a turning point. The world is now adding more capacity for renewable power each year than coal, natural gas, and oil combined. And there's no going back.

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5 Market Research

Why Renewables, Why Now?

Fossil fuels, including coal, oil and natural gas, are currently the world's primary energy source. Formed from organic material over the course of millions of years, fossil fuels have fueled U.S. and global economic development over the past century. Fossil fuels are the remains of prehistoric organisms buried beneath the earth's surface millions of years ago and they are in limited supply. Eventually the reserves of these fuels will run out and when this happens it will be important that we have new solutions available to power our technology.

There is a slow shift underway to replace fossil fuels, but it’s not happening quickly enough considering how fast we are burning through fossil fuels and generating pollution with CO2 emissions. There is constant search for alternate fuels to solve energy shortages without adding to already dangerous levels of pollution. We are looking for alternative fuels for two major reasons:

1. Cleaner fuel – lower CO2 emissions – increased government, corporate and consumer awareness

2. Replacement for diminishing supplies of fossil fuel. The rate of fossil fuel consumption is higher than the rate of the fossil fuel production in nature.

3. Increased demand – economic growth, population expansion, industrialization.

The above reasons for alternative fuel have sharply outlined a current market phenomenon; we are entering an era of competition. There is cheap oil, cheap gas and cheap renewables. There is an abundance of supply in a way not seen for decades. The demand for fossil fuel is lowering as price and availability make renewables attractive.

US Energy Secretary Rick Perry has called for a global alliance of countries to encourage the use of fossil fuels in a clean and efficient way, speaking at CERAweek 2018. 9

10

Global investments were in excess of USD 260 billion in 2016.

Over the past four years, the price of Brent crude plunged from $112.36 to $67.56 per barrel in 2018, 11 international steam coal delivered to north-western Europe hub dropped from $73.70 to $63.20 per ton in early 2018. 12

9 Writtenby TheEnergyAdvocate onMarch 7, 2018

10 U.S. Department of Energy (2016). 2016 Billion-Ton Report: AdvancingDomestic Resourcesfor aThrivingBioeconomy. July. (https://energy.gov/eere/bioenergy/2016-billion-ton-report)

11 http://www.macrotrends.net/2480/brent-crude-oil-prices-10-year-daily-chart

12 http://markets.businessinsider.com/commodities/coal-price

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Natural gas in the US fell on the Henry Hub index from $4.42 to $2.67 per million British Thermal Units in 2018. 13 These figures highlight the improving cost-competitiveness of alternative sources of power.

Renewables are now being adopted in many developing countries as a natural and substantial part of the generation mix: they can be produced more cheaply than often high wholesale power prices; they reduce a country's exposure to expected future fossil fuel prices; and above all they can be built very quickly to meet unfulfilled demand for electricity. And it is very hard to see these trends going backwards, in the light of the Paris Climate Agreement.

Global clean energy investment was $333.5 billion in 2017, up 3% from 2016 and the second highest annual figure ever. The 2017 investment figure is all the more remarkable considering the falling capital costs for the leading technology – solar.14

Global Investment into Renewables by Year 2004 to 2017

13 Henry Hub Natural Gas Spot Price (Dollars per Million Btu). Release Date: 3/14/2018

14 Bloomberg, New Energy Finance, Clean Energy Investment Trends, January 16, 2018.

15 FIGURE 1. GLOBAL NEW INVESTMENT IN RENEWABLE ENERGY BY ASSET CLASS, 2004-2016, $BN

*Asset finance volume adjusts for re-invested equity. Total values include estimates for undisclosed deals Source: UN Environment, Bloomberg New Energy Finance

16 U.S. Department of Energy (2016). 2016 Billion-Ton Report: Advancing Domestic Resources for a Thriving Bioeconomy. July. (https://energy.gov/eere/bioenergy/2016-billion-ton-report)

17 Bloomberg, New Energy Finance, Clean Energy Investment Trends, January 16, 2018

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Year Amount of Investment 2004 $61.9bn 2005 $88bn 2006 $128.3bn 2007 $174.9bn 2008 $205.6bn 2009 $207.3bn 2010 $273.7bn 2011 $318.3bn 2012 $297bn 2013 $271.9bn 2014 $315.9bn 2015 $328.9bn15 2016 $263bn16 2017 $333.5bn17

5.1 Addition of Clean Energy to our Fuel Mix by 2030

It is anticipated that countries will no longer rely on fossil fuels as their sole source of energy but gradually add a mix of renewables that will grow in momentum with time.

5.2 Diminishing Use of Fossil Fuels

As fossil fuels diminish in availability and become more expensive to develop compared to renewable sources of fuel, they will be used less. Below is a 400-year timeline of the use of Energy by source with renewables offering an infinite supply of energy.

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5.3 The State of the Environment

The 2015 United Nations Climate Change Conference held in Paris, France, from 30 November to 12 December 2015, negotiated the Paris Agreement, a global agreement on the reduction of climate change, the text of which represented a consensus of the representatives of the 196 parties attending it.

Climate scientists say greenhouse gas emissions have to be reduced to a level to prevent global temperatures from rising more than 2 degrees Celsius above pre-industrial levels, and the energy sector is at the forefront of this global challenge. According to the organizing committee at the outset of the talks, the expected key result was an agreement to set a goal of limiting global warming to less than 2°C (2 degrees Celsius) compared to pre-industrial levels forever.

The Paris agreement calls for zero net anthropogenic greenhouse gas emissions to be reached during the second half of the 21st century as well. In the adopted version of the Paris Agreement, the parties will also "pursue efforts to" limit the temperature increase to 1.5°C. The 1.5 °C goal will require zero emissions sometime between 2030 and 2050, according to some scientists.

http://www.wri.org/blog/2017/04/interactive-chart-explains-worlds-top-10-emitters-and-how-theyve-changed World Resources Institute ,By Johannes Friedrich, Mengpin Ge and Andrew Pickens - April 11, 2017

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18
18

A groundbreaking paper in Environmental Research Letters was published last August, entitled “Commitment accounting of CO2 emissions.”19 A new truck or car will mean at least 10 years of CO2 emissions. That’s called a carbon commitment. Davis and Socolow’s study estimated how much CO2will be emitted by most things that burn oil, gas, or coal, and it is the first to actually total up all of these carbon commitments.

Based on their work, it is estimated that if we continue to build new fossil fuel burning things at the average rate of the last fiveyears,we’llmakeenough new carbon commitments to blow throughthe2°Ccarbon budget sometimein2018.

Governments globally are taking this seriously with renewed intent to manage their resources and bring carbon emissions down. The renewable energy sector is experiencing increased attention and investment that is sure to grow at strong compounds in the years to come.

Need to Slow CO2 Emissions

As per the goals determined in the Paris conference, it is necessary to slow CO2 emissions and maintain the global temperature without raising it further. Yet, even now, the data shows that we are embracing fossil fuels more than ever. For example, in just one instance out of thousands, Volvo announced in May 2015, that it would build a new $500 million factory in the US that will produce 100,000 cars a year in 2018. The CO2 from the cars from just that one factory, will take us over the 2°C budget, further into the danger zone of climatic disaster. And, there are thousands of existing factories and hundreds of new ones planned and launched that will need to be green in order to maintain current levels.

It is imperative that we slow the emissions of everything we build everywhere. The useof alternative fuels, renewables and low CO2 emissions is more critical than ever.

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19 Princeton University, Davis and co-author Robert Socolow, August 2014.

It is clear that buildingmore things that use coal, oil, and gas equals more CO2 emissions. There is a slow shift underway to replace fossil fuels, but it’s not happening fast enough considering the massive carbon commitments in the things we have already built and continue to build. Eco Oils plans to help limit carbon emissions through a highly adaptive system of biodiesel integration in key industry sectors.

Ultimately, Eco Oils’ mission is to bring biodiesel to the forefront of alternative forms of clean renewable biodiesel energy through widespread commercialization and by changing the world’s perception of how we produce and use energy.

5.4 The Transport Sector and the Environment Transportation is the largest single source of air pollution in North America.

There are currently 1.2 billion vehicleson the world's roads now, with2 billion projected by 203520 .

Total number of new-vehicle sales were 84 million last year, but Navigant suggests that annual sales could soar to 127 million by 2035 bringing the global vehicle total to 2 billion or more. By some estimates, the total number of vehicles worldwide could double to 2.5 billion by 2050.

As noted by Green Car Congress, just 2.5 percent of those will be battery electric, plug-in hybrid, or fuel-cell vehicles the rest will run on gasoline or diesel fuel according to the firm.

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20 Navigant Research, Transportation Forecast: Light Duty Vehicles, Light Duty Stop-Start, Hybrid Electric, Plug-In Hybrid Electric, Battery Electric, Natural Gas, Fuel Cell, Propane Autogas, and Conventional Vehicles: Global Market Forecasts, 2015-2035 http://www.navigantresearch.com/research/transportation-forecast-light-dutyvehicles

It is clear to understand the impact of adding up to 20 percent more vehicles to the planet when 98 percent of them are powered by gasoline or diesel fuel.

A 2.5-billion vehicle "global car park" would mean that to keep carbon emissions level with today's total, average fleet fuel efficiency would have to double. But scientists suggest that it will be necessary to cut average carbon emissions 80 percent if we wish to stabilize the impact of climate change.

And that would require a major proportion of the global fleet to use some other form of propulsion with a far, far lower wells-to-wheels carbon footprint. When you see these numbers, it becomes crystal clear why every automaker has made alternative fuel engines as part of their strategy moving forward.

5.5 Biodiesel as a Fuel Source

The interest in biodiesel as the energy of the future is due to it being an abundant and renewable resource. Biodiesel has attracted worldwide interest as a secondary energy carrier.

Biodiesel offers one of the most promising solutions for reducing the world's carbon emissions and dependence on fossil fuels. Eco Oils is dedicated to helping drive the imminent transition from dirty and scarce fossil fuels to clean and plentiful biodiesel by introducing biodiesel powered products and solutions into the economy and by developing innovative and sustainable biodiesel infrastructure solutions to help fuel those products and solutions.

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Biodiesel is an Abundant Resource and is a Clean Fuel

5.5.1 Biodiesel is considered to be the most promising fuel of the future:

▪ It will still be available when fossil fuels are exhausted

▪ It is available in vast quantities

▪ Pound for pound it contains the same energy of most hydrocarbon fuels

▪ It is non-toxic

▪ It reduces greenhouse gas

▪ It lowers carbon emissions

5.5.2 Biodiesel is Versatile

Biodiesel is a highly versatile energy carrier. Biodiesel can be burned in an engine which is similar to what occurs with gasoline. It can easily be used to power cars or trucks, or even buildings, planes or ships.

• It can be used as the fuel in internal combustion engines to replace diesel fuels

▪ Generate electricity

▪ Domestic energy requirements such as cooking and heating fuel

▪ Remote station power

▪ Transportation Fuel for automobiles

▪ Biodiesel powered industries

▪ Jet fuel

Biodiesel is a strong contender in the alternative fuel sector. Market growth in the global biodiesel generation is driven by the need for adoption of cleaner fuel sources. A rapid rise in the industrial application of biodiesel gas as well as adoptingtechnology in avarietyofapplications,fromtransporttomilitary,personalpowergeneration,etc.,isexpected to boost the global demand for biodiesel generation.

The safety issues with biodiesel are not any different from natural gas or any other energy form. It has some characteristics that, in the long run, may give us some safety advantages.

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5.6 The Biodiesel Generation Market Worth $138.2 Billion by 2019

Whenchoosingpotentialinvestments,itisimportantto seethebig picture. Recognizing changesintheworldofscience and technology helps to identify innovations that may be worthwhile investments. In order to learn about investing in new technology, investors must understand the big ideas in science today. If a company is developing a new technology, the sector and its potential must be understood before making an investment in the company.

The biodiesel generation market will grow from an estimated $103.5 billion in 2014 to $138.2 billion by 2019, with a CAGR of 5.9% signifying an increase in demand for a clean and emission free power source that is biodiesel21 .

5.7 Biodiesel Generated from Many Sources

Like electricity, biodiesel can be generated from all energy resources available including, natural gas, petroleum products, solar and wind electrolysis, biomass, and others. Fuel cells cleanly and efficiently convert chemical energy from biodiesel-rich fuels into electrical power and usable high quality heat in anelectrochemical process that isvirtually absent of pollutants.

5.8 Biodiesel Adaptation to Vehicles

Among other uses, biodiesel is a cleaner fuel. Biodiesel vehicles are seeing a surge with adoption rates growing and new models being released from some big name companies. Vehicles that use biodiesel as fuel offer many benefits and their use is growing. The chart below displays some of the types of vehicles and their adoption rates to 2030.

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21 & Delivery, Applications and Technology - Global Trends & Forecasts to 2019" 22 Lux Research
The Biodiesel Fuel Cell Market is driven by the need for adoption of cleaner fuel sources22

5.8.1 Biodiesel Fuel Cell Adaptation to Trucks & Fleets in the USA

The trucking industry is the lifeblood of the U.S. economy. Nearly 70% of all the freight tonnage moved in the U.S. goes on trucks. Without the industry and our truck drivers, the economy would come to a standstill. To move 9.4 billion tons of freight annually requires nearly 3 million heavy-duty Class 8 trucks and over 3 million truck drivers. It also takes over 37 billion gallons of diesel fuel to move all of that freight.

According to the American Trucking Associations (ATA), 81 percent of the total revenue seen in the shipping sector was the result of activity by trucking companies. Steady increases are expected with revenues swelling by 66 percent by 2022.

By 2026, revenues are expected to climb to $1.52 trillion. This trend is expected to continue following occurrences such as the ten percent jump in combined revenue experienced by the 50 largest trucking companies in the country in 2014.

Many trucking companies will launch expansions in the form of an increase in their truck fleet and/or the addition of new trucks. Many of these new trucks will be the Class 8 trucks as projections expect their numbers to increase to 3.98 million by 2026 from 3.56 million in 2015. More trucking industry capital will be poured into recruiting high-quality drivers to meet the demands that the next year will put on these companies.

Approximately $139 Trillion of goods are trucked every year in the USA.

Estimates show that 15.5 million trucks operate in the U.S.23 Of this figure, 2 million are tractor trailers. There are an estimated over 3.5 million truck drivers in the U.S. Of that one in nine are independent, a majority of which are owner operators.

Estimates show there are 1.2 million trucking companies in the U.S. Of that figure, 97% operate 20 or fewer while 90% operate 6 or fewer trucks.

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Stats
23 http://www.truckinfo.net/trucking/stats.htm#Size

The United States economy depends on trucks to deliver nearly 70 percent of all freight transported annually in the U.S., accounting for $671 billion worth of manufactured and retail goods transported by truck in the U.S. alone. Add $295 billion in truck trade with Canada and $195.6 billion in truck trade with Mexico.

The truckingcompanies,warehouses andprivatesector intheU.S. employs anestimated 8.9 million people intruckingrelated jobs; nearly 3.5 million were truck drivers. Of this figure UPS employs 60,000 workers and 9% are owner operators. LTL shippers account for around 13.6 percent of America's trucking sector.

5.8.2 Biodiesel Fuel Cell Adaptation to Trucks & Fleets in Canada

More trucks on the road equal a strong economy and that is apparent in Canada with its lengthy geographical distances between major centers. Medium and heavy-duty trucks account for approximately 6% of total anthropogenic greenhouse gas (GHG) emissions so it is a sector with an imperative to reduce CO2. From 1990 to 2007, medium- and heavy-truck GHG emissions increased 79%, representing the largest percentage increase of any major transportation mode24 . By 2030, if fuel consumption was reduced and environmental solutions adopted, 45% of total heavy-duty, long-haul fleet CO2 and projected business-as-usual fuel consumption could be avoided.

In 2014, the transportation and warehousing sector, which makes moving people and freight possible, accounted for 4.2 per cent of GDP (or 3.7 per cent of GDP when excluding pipelines and warehousing). This sector grew by 4.2 per cent in real terms in the past year, nearly double the growth rate for all industries.

Canada’s trucking sector statistics:

In 2012, (the latest year for which data are available), the road transportation sector accounted for 80.3 per cent of transportation-related greenhouse gas (GHG) emissions. Building on existing standards covering model years 2011 to 2016, federal regulations have set stricter GHG emission standards for passenger automobile and light trucks produced in 2017 and beyond.

Ontario accounts for about 40.1% of industry establishments, thereby dominating the industry. The province is home to 38.5% of Canada's population and nearly 40.0% of its manufacturing facilities.

The British Columbian trucking industry is bigger than forestry and coal mining According to Statistics Canada, in 2012 the Canadian trucking industry moved over 64 million shipments carrying 650 million tons of cargo and logged a total distance of 40.7 billion kilometers. B.C. has 26,000 registered trucking companies which made it a $1.8 billion industry in 2013. Trucking is bigger than forestry and coalmining in the province and employed 22,964 drivers full and part time

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Canada Trucking Industry Annual Revenue $9 billion Annual Growth 1.4% Number of businesses 25,024 Employment 42,246
24 Air & Waste Management Association

5.8.3 Big Auto Betting on Biodiesel Cars

Some of the world’s largest auto companies are betting big on biodiesel and putting their money, design and technology into the market with a series of hot cars that are certain to attract buyers including early adopters of green technology.

Some of these auto makers and their biodiesel brands are:

Automakers with Biodiesel Models

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Auto Maker Refueling Time in Minutes Travel Distance Before Refueling Toyota 5 250-300 miles Honda 5 250-300 miles Hyundai 5 250-300 miles BMW 5 250-300 miles GM 5 250-300 miles Daimler AG 5 250-300 miles Audi 5 250-300 miles Volkswagen 5 250-300 miles Tesla 570 to 3129 80 Miles
The New Dodge Ram Biodiesel Vehicle

5.9 Remote Communities

The Problem: Worldwide there are many remote communities with no access to a stable electricity distribution grid:

• Up to 4,000 globally

• In the USA, there are over 200 remote communities in Alaska alone with over 70% using renewables25 These communities rely on diesel generators to provide large proportions of the required energy:

• Low efficiency

• High operating costs

• Costly to transport fuel to these communities resulting in very high power costs

• Harmful emissions

Remote Communities have little or No Access to Power

The Opportunity: Renewable energy sources have advantages and disadvantages for remote communities:

Advantages

• Clean energy production

• Very low operating costs

• Remove need for grid extension

Disadvantages

• Intermittent and unpredictable output

If combined with an energy storage system, renewables, along with unstable grid connections, can be used effectively as the means for providing cost effective and stable energy to remote communities.

25 Alaska Center for Energy and Power

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5.10 Energy Storage, Backup & Emergency Power

Renewables are great ideas, but they do not work when the wind isn’t blowing and the sun isn’t shining. Grid-scale energy storage systems are needed to level out the inevitable interruptions in power generation. Storage has become the new ‘solar’ and is on the minds of every biodiesel company. Eco Oils, with the combined products and strategies from its partners has solutions to biodiesel fuel energy storage that provide reassurance that there will be energy in times of need or power interruptions.

Utility-scale storage is a growing business, and cost reductions and growth there are projected to fall, just like solar power, over the next several years as well. That means that large solar power plants also will be able to provide significant power during night times (and wind power during downtimes). Indeed, the utility-scale storage business isn’t just growing, it’s projected to boom, as the graph below, taken from this article that also foresees a bright future for the industry, indicates.

Annual Revenue of Cell Sales for Advanced Battery Storage for Utility-Scale Applications by Region, World Markets: 2014-2023

Energy storage is key to integrating renewable resources In three to five years, storage will be a standard component of residential solar power, not optional, but deployed with every solar system. Developers are pioneering a global network of energy storage projects associated with renewable energy.

There is a demand for 30 GW of new peaker plants by 2024, and by that year, battery production capacity will exceed the peaker need by a factor of four and energy storage will be well positioned to compete.

Eco Oils plants are scalable power generation sources, allowing for affordable and incremental energy investment that meets growing power needs over time with multi-megawatt installations either on-site or distributed throughout an electric utility service area.

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5.11 The Future of Energy

By 2050, biofuels could make up to 27 percent of total worldwide transportation fuel, according to a report published by the International Energy Agency (IEA). This, according to the IEA, would represent an increase in biofuel use to more than 750 million tons by 2050, up from 55 million tons today. Fast-rising energy demand will require some US$45 trillion in new infrastructure investment by 2030.

Renewable energy provides substantial benefits for the climate, health standards, and the economy. It dramatically reduces global warming emissions, improves public health, and provides jobs and other economic benefits. And since most renewables don’t require water for cooling, they dramatically reduce the water requirements for power production compared to fossil-fueled power plants.

5.12 The Future of Energy in the USA

A comprehensive study by the Department of Energy’s National Renewable Energy Laboratory (NREL) shows that the U.S. can generate most of its electricity from renewable energy by 2050. In an 80 percent renewables future, carbon emissions from the power sector would be reduced by 80 percent, and water use would be reduced by 50 percent.

By 2020,theU.S.islikely to beenergy independent, alongwithCanada,itsbiggestimport andexport partner, according to Global Commodities research at Citigroup.

Key findings from The National Renewable Energy Laboratory's (NREL) Renewable Electricity Futures Study (RE Futures), show that an 80 percent renewables future is feasible with currently available technologies, including biopower, wind turbines, solar photovoltaics, concentrating solar power, geothermal, and hydropower. The study also demonstrates that a high renewables scenario can meet electricity demand across the country every hour of every day, year-round.

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TheUSEnergy Department(DOE)ishandingoutupto $90 millioninprojectfunding focusedondesigning,constructing, and operating integrated biofuel facilities.

The department notes the production of biofuels from sustainable, non-food, domestic biomass resources is an important strategy to meet the US administration’s goals to reduce carbon emissions and dependence on imported oil.

The funding is intended to support efforts to improve and demonstrate processes that break down complex biomass feedstocks and convert them to petrol, diesel and jet fuel, as well as plastics and chemicals.

“The domestic bio-industry could play an important part in the growing clean energy economy and in reducing US dependence on imported oil,” said Lynn Orr, DOE’s undersecretary for science and energy.

The US spends approximately $1 billion every three days on imported oil, but the DOE and the US Department of Agriculture estimate that the country could sustainably produce more than 1 billion tons of biomass that could be converted to biofuels, bio-products, and bioenergy. This would spur economic development in rural communities across the nation and those products could be used to fuel vehicles, heat homes, and replace everyday materials such as plastic.

Developing the bio-economy could also potentially displace over 25% of US petroleum use and reduce greenhouse gas emissions by 550 million tons. The production of biodiesel is growing monthly in the USA.

38 STRATEGIC BUSINESS PLAN |
U.S. Energy Information Administration,
EIA-22M Biodiesel Monthly Survey
Form

5.13 The Future of Energy in Canada

WHO WILL SUPPLY THE GROWING DEMAND FOR POWER?

Legacy hydroelectric projects are no longer enough to supply the demand for power in North America and new power installations will bring significant cost.

WHERE WILL OUR ENERGY COME FROM?

Thefirsthalf-century of electrificationwasall about hydro power. Then came coal,oil and nuclear.The futureiswritten in renewables.

Renewables Consumption Growth

Source: Short-Term Energy Outlook Renewables and Carbon Dioxide Emissions

STRATEGIC BUSINESS PLAN | 39
U.S.
quadrillion Btu 2013 2014 2015 E 2016 P Hydroelectric power 2.562 2.469 2.257 2.415 Geothermal 0.214 0.222 0.226 0.236 Solar 0.305 0.427 0.522 0.624 Wind 1.596 1.729 1.765 2.042 Wood biomass 2.170 2.214 2.041 1.980 Ethanol 1.090 1.107 1.141 1.144 Biodiesel 0.205 0.198 0.222 0.261 Waste biomass 0.496 0.488 0.494 0.502 Total 9.349 9.603 9.432 9.970
40 STRATEGIC BUSINESS PLAN | 6 Marketing
Global spending on clean energy projects reached $333.5 billion in 201726 . Eco Oils will take its place as a leader in this sector. 26 Bloomberg New Energy Finance (BNEF) http://www.climateactionprogramme.org/news/investment-in-clean-energy-hit-333-billion-last-year
Strategy

6 Marketing Strategy

Value Proposition

Eco Oils is an end-to-end biodiesel fuel company that has aggregated key players, IP and technologies to bring the most advanced biodiesel systems to people everywhere.

We solve the problem of generating biodiesels from renewables

Until now, biodiesels have to be produced using separate processes

6.1 Corporate Positioning

Our Products are Superior to the Competition

Satisfaction

Our Clients feel they got good value

We deliver the highest quality product with the greatest production systems

Our systems are able to produce superior quality with less production costs

Develop Tag Lines to underline the corporate positioning. Examples below:

• Enter the Renewables era

• Be a part of Greening our World

• Be part of the climate solution

6.2 Sales and Distribution Channel Strategy

The overall selling strategy will be a combination of:

• Actively engaging with major and minor industry players

• Actively support industry events, programs and trade shows

• Actively developing new services

• Actively compete with and attack strong holds of any visible competitors

6.3 Advertising and Promotional Strategy

The following is the current advertising and promotional strategy, and includes:

• Leverage relationships with existing high profile clients

• Social media development

• News features

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• Industry events

6.4 Brand Development Targets

Continue research and development of the primary products

• Develop promotional materials for all products including print materials and website

• Engage marketing and sales expertise

• Continue ongoing sales and marketing efforts

• Maintain quality performance

• Continual development of sales team and strategy

• Development of new product/service offerings

Eco Oils will undertake the following assignments in order to fulfill its operational targets:

• Engage expertise to handle marketing for major product releases.

• Collaborate with Techs and Creatives to direct new product development and design direction, including evaluating processes for each category

• Develop major qualitative and quantitative consumer research, investigating purchase models and segmentation for products and applications and bonus tie-ins.

• Create cross-promotions timed for the release of feature news

• Execute integrated marketing campaigns including web, PR and social media

• Established a global communication process that provides timely information and facilitates coordination across geographic regions and business units.

6.5 Strategy

The core strategy is to grow brand awareness and use the early adopters to help spread the word. Because of the high level of interest in biodiesel products mixed with the extremely low amount of recognition of any current industry leaders in the industry with the exception of Ballard, a successful early marketing campaign would put Eco Oils in an excellent position for continual brand success

The Company will focus on increasing the volume of sales in each of its regional areas and will expand to include additional markets.

6.6 Pricing Strategy

The overall pricing strategy

• Price products based on the consumer’s rate and discounting

• The attainment of at least a 30 to 40 percent gross profit

• Sensitivity - Early Stage Industry - rarely are prices challenged

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6.7 Collateral Materials

The Company has prepared high quality collateral materials that will reinforce its brand as well as detail individual products. These print materials will be informative and in the language of each target market. Brochures and marketing literature will be posted to specific customers. Brochures will display the complete range of products.

Considerable thought has gone into developing these important documents as a frontline information piece for products. Some of these materials will be:

• Brochures for consumers

• Brochures for sales reps

• Brochures to the trade

• Tradeshow materials

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6.8 USA Industry Associations

6.8.1 Advanced Biofuels Association

http://www.advancedbiofuelsassociation.com/

The ABFA has approximately 30 member companies, representing a wide range of technologies, feedstocks, and molecules within the advanced biofuels industry. Our members are developing and commercializing their technologies to provide renewable, lower carbon fuels that will move our nation closer to achieving energy and economic security.

6.8.2 National Biodiesel Accreditation Commission

http://bq-9000.org/

The National Biodiesel Accreditation Program is a cooperative and voluntary program for the accreditation of producersandmarketersofbiodieselfuelcalledBQ-9000®.Theprogram isaunique combinationoftheASTM standard for biodiesel, ASTM D6751, and a quality systems program that includes storage, sampling, testing, blending, shipping, distribution, and fuel management practices. BQ-9000® is open to any biodiesel manufacturer, marketer or distributor of biodiesel and biodiesel blends in the United States and Canada.

6.8.3 American Council on Renewable Energy (ACORE)

http://www.acore.org

ACORE is a national non-profit organization dedicated to advancing the renewable energy sector through market development, policy changes, and financial innovation. With a savvy staff of experts, fifteen years of experience promoting renewable energy and hundreds of member companies, non-profits, and other organizations from across the spectrum of renewable energy technologies, consumers, and investors, ACORE is uniquely well-positioned to strategically promote the policies and financial structures essential to renewable energy growth. The organization’s annual conferences in Washington, D.C., New York and San Francisco set the industry standard in providing important venues for key leaders to meet, discuss recent developments, and hear the latest from senior government officials and seasoned experts.

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6.9 Canadian Industry Associations

6.9.1 Canadian Renewable Fuels Association (CRFA)

www.greenfuels.org

CRFA members and supporting organizations provide Canadians with renewable, clean-burning Ethanol and Biodiesel – fuels that help fight climate change and combat pollution and smog. At the same time, they are working to develop the next generation of Biofuels, which will provide even greater environmental and economic benefits.

6.9.2 Reseau Biofuelnet Canada

http://www.biofuelnet.ca

BioFuelNetCanada isa networkthatbringstogethertheCanadian biofuelsresearchcommunity to aggressively address the challenges impeding the growth of an advanced biofuels industry, while focusing on non-food biomass as biofuel feedstocks. BioFuelNet includes renowned, multi-disciplinary experts from academia, government, industry and investment working together in a concerted and synergistic way. This group is working to develop and apply novel and innovativescience,engineeringandsocio-economicstrategiesthatwillenhanceenvironmentalsustainability forfuture generations.

6.9.3 National Biodiesel Board

http://nbb.org

The National Biodiesel Board (NBB) is the national trade association representing the biodiesel industry in the United States. The group works to create sustainable biodiesel industry growth through education, communication, governmental affairs, technical and quality assurance programs. Serving as the coordinating body for research and development in the US the National Biodiesel Board is comprised of state, national, and international feedstock and feedstock processor organizations, biodiesel suppliers, fuel marketers and distributors, and technology providers

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6.10 Trade Magazines

Eco Oils will place ads in industry specific magazines and journals that will position the firm as a leader in the biofuel sector. Some examples of potential magazines for placement are:

6.10.1 Biofuels International

http://biofuels-news.com

Biofuels International magazine is brought out 6 times a year and is the leading global publication in the market. Designed to appeal to those who wish to learn and be kept abreast of this increasingly important area, the magazine encompasses, biodiesel, bioethanol, and biomass.

Every issue includes in-depth news analysis and features on related subjects, including distribution, handling, storage, equipment and second generation technology.

6.10.2 Biodiesel Magazine

http://www.biodieselmagazine.com

Biodiesel Magazine is a trade journal dedicated to objective, independent coverage of biodiesel news, events and information relevant to the global industry. With editorial focus on U.S. and international methyl ester manufacturing, trade, distribution and markets, Biodiesel Magazine also provides valuable insight into feedstock and market share competition from the non-ester renewable diesel sector.

6.10.3 Biofuels Digest

http://www.biofuelsdigest.com/

Each weekday, 28,000 subscribers receive the Biofuels Digest newsletter, covering producer news, research, policy, policymakers, conferences, fleets and financial news. It is home to:

▪ the Biofuels Digest Index™

▪ the “Transformative Technologies” tournament

▪ the Quarterly Biofuels Business Outlook

▪ the 30 Hottest Companies in Renewable Chemicals and Materials

▪ the Advanced Biofuels Project Database

▪ the “50 Hottest Companies in Bioenergy” annual rankings

▪ Our website

Another 50,000 unique visitors come to our website each month – which houses our complete archive of 10,000+ stories, plus more than 300 free downloads of reports, white papers and databases.

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6.11 Government Funding

Eco Oils will research and apply for government grants in their sector. Many of the grants in the Green Energy sector in the USA, can be found here:

▪ Department of Energy Recovery Act Funding

▪ Use FedConnect to Get Detailed Information about Government Funding Opportunities

▪ Sustainable Development Technology Canada Manages Advanced Biofuels Fund

▪ Biorefinery Assistance Program (loan guarantees)

▪ Bioenergy Program for Advanced Biofuels Payments to Advanced Biofuel Producers

▪ Biomass Crop Assistance Program

▪ Advanced Energy Research Project Grants

▪ Improved Energy Technology Loans

▪ Low and Zero Emission Public Transportation Research, Demonstration, and Deployment Funding

▪ Advanced Biofuel Feedstock Incentives

▪ Biodiesel Mixture Excise Tax Credit

▪ Biodiesel Income Tax Credit

▪ Advanced Biofuel Production Payments

▪ Advanced Biofuel Production Grants and Loan Guarantees

▪ Value-Added Producer Grants (VAPG)

Funding in Canada can be arranged from the following organizations:

▪ http://www.canadabusiness.ca/eng/page/2815/

▪ http://www.mentorworks.ca/what-we-offer/government-funding/research-development/

▪ National Research Council NRC-IRAP http://www.nrc-cnrc.gc.ca/eng/irap/about/

▪ BCIP – Build in Canada Innovation Program https://buyandsell.gc.ca/initiatives-and-programs/build-incanada-innovation-program-bcip/program-specifics

▪ Industrial Research Assistance Program (IRAP) http://nationalrdinc.ca/funding-programs/

▪ http://www.investinontario.com/incentive-programs-and-services

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7 Competition

Eco Oils has aggregated the best in biodiesel, the best people, the best products, the best services and the best IP to make it.

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7 Competition

This section provides an overview of the company’s competitors and the environment in which it competes.

Eco Oils is in the biodiesel production, and products sector. This is an emerging sector in sophisticated markets that need alternate clean fuels and energy. Eco Oils has patented IP as well as an active R&D division to keep abreast of innovation in the field and position itself as a leader in the biodiesel sector

7.1 Biofuel Companies in the USA:

– or Millions of Gallons per Year

STRATEGIC BUSINESS PLAN | 49
Capacity is in MMGY
Biofuel Companies in the USA Name City State Feedstock Capacity AC&S Inc. Nitro WV Soy Oil 3 Adkins Energy Biodiesel Lena IL Distillers Corn Oil 2 Ag Processing Inc. - Algona Algona IA Soy Oil 60 Ag Processing Inc. Sergeant Bluff IA Soy Oil 30 Ag Processing Inc. St. Joseph MO Soy Oil 30 Agribiofuels LLC. Dayton TX Multi-Feedstock 12 Agron Bioenergy Redwood City CA Multi-Feedstock 15 Alaska Green Waste Anchorage AK Used Cooking Oil 0.3 Allied Renewable Energy Birmingham AL Multi-Feedstock 6 Alterra Bioenergy Resources Gordon GA 15 Amereco Arizona LLC Arlington AZ Multi-Feedstock 15 Archer Daniels Midland Co Velva ND Canola Oil 85 Bay Biodiesel LLC San Jose CA Oils/Yellow Grease 5 Beaver Biodiesel LLC Portland OR Multi-Feedstock 0.94 Big Island Biodiesel LLC Kea`au HI Multi-Feedstock 5.5 Bio-Alternative LLC Covington IN Multi-Feedstock 15.5 Bio-Pur Inc. Bethlehem CT Multi-Feedstock 0.8 Biodico Sustainable Biorefineries Five Points CA Multi-Feedstock 10 Biodiesel of Las Vegas Las Vegas NV Multi-Feedstock 8 Bioenergy Development Group Memphis TN Multi-Feedstock 40 BioVantage Fuels LLC Belvidere IL Soy Oil/Corn Oil 3.2 BlackGold Biofuels Philadelphia PA Trap Grease/ Wastewater Sludge 0.26 Blue Ridge Biofuels LLC Asheville NC Yellow Grease 1 Blue Sun St. Joe Refinery St. Joseph MO Corn Oil/Animal Fat/ Waste Vegetable Oil 30
50 STRATEGIC BUSINESS PLAN | Bridgeport Biodiesel LLC Bridgeport CT Multi-Feedstock 14 Brownfield Biodiesel LLC Ralls TX Virgin Vegetable Oil 2 Buffalo Biodiesel Inc. Tonawanda NY Yellow Grease 5 Cargill Inc. - Iowa Falls Iowa Falls IA Soy Oil 56 Carolina Biodiesel LLC Durham NC Waste Vegetable Oil 0.5 Central Washington Biodiesel Ellensburg WA Waste Vegetable Oil 0.02 CGF Clayton LLC Clayton DE 5 Channel Biorefinery & Terminals Houston TX Multi-Feedstock 35 Cincinnati Renewable Fuels Cincinnati OH Soy Oil 60 Clinton County Bio Energy Clinton IA Soy Oil/Corn Oil/Animal Fats 10 Community Fuels Stockton CA Multi-Feedstock 25 Crimson Renewable Energy Bakersfield CA Multi-Feedstock 22 Dallas County Schools Dallas TX Waste Vegetable Oil 0.05 Deerfield Energy LLC Deerfield MO Soy Oil 30 Delek Renewables LLC Cleburne TX Animal Fats 12 Delta American Fuel LLC Helena AR Soy Oil 40 Delta Biofuels Inc. Natchez MS Animal Fats/Soy Oil 80 Dickinson College Biodiesel Carlisle PA Used Cooking Oil 0.01 Double Diamond Energy Dimmitt TX Canola/Soy/Vegetable Oil 40 Down to Earth Energy LLC Monroe GA Multi-Feedstock 2 Eberle Biodiesel Liverpool TX Waste Vegetable Oil 0.3 Ecogy Bio-Fuels LLC St Estill SC Soy Oil Elevance Natchez Inc. Natchez MS Soy Oil 80 Emergent Green Energy Minneola KS Multi-Feedstock 1.2 Enviro-Brite Solutions Oscoda MI Waste Vegetable Oil 0.084 Ethos Alternative Energy Meridian MS Multi-Feedstock 5 Ever Cat Fuels LLC Isanti MN Multi-Feedstock 3 Evergreen Biodiesel Taylors SC Canola Oil/Soy Oil 50 Evergreen Renewables LLC Hammond IN Multi-Feedstock 5 Extreme Biodiesel Inc. Corona CA Multi-Feedstock 2 Filter Specialty Inc. Autryville NC Soy Oil/Yellow Grease 1 Foothills Bio-Energies LLC Lenoir NC Multi-Feedstock 5 Fuel: Bio One LLC Elizabeth NJ Animal Fats/Yellow Grease 50 FutureFuel Chemical Company Batesville AR Multi-Feedstock 60 General Biodiesel Northwest Seattle WA Multi-Feedstock 10 Genuine Bio-Fuel Inc. Indiantown FL Waste Vegetable Oil, Tallow 9.2 Global Alternative Fuels LLC El Paso TX Used Cooking Oil 18
STRATEGIC BUSINESS PLAN | 51 Global Fuels LLC Dexter MO Animal Fats/Soy Oil 5 Golden Leaf Energy LLC Harvey LA Multi-Feedstock 2.2 Green Biofuels Miami LLC Miami FL Used Cooking Oil 4 Green Earth Fuels of Houston Galena Park TX Multi-Feedstock 90 Green Energy Products LLC Sedgwick KS Distillers Corn Oil 2 Green Valley Bio-Fuels Warrenville SC Multi-Feedstock 10 Greenleaf Biofuels LLC New Haven CT Used Cooking Oil, Animal Fats 10 Griffin Industries Inc. Butler KY Used Cooking Oil 2 GTBE Production Houston TX Waste Glycerin/Palm Waste 1.2 Heartland Biofuel W. Flora IN Animal Fats 0.5 Hero BX Erie PA Multi-Feedstock 45 Hero BX Alabama LLC Moundville AL Multi-Feedstock 20 High Plains Bioenergy LLC Guymon OK Animal Fats 30 Imperial Western Products Coachella CA Multi-Feedstock 10.5 Incobrasa Industries Ltd. Gilman IL Soy Oil 32 Integrity Biofuels Morristown IN Multi-Feedstock 5 Iowa Renewable Energy LLC Washington IA Animal Fats/Vegetable Oils /Waste Oils 30 JNS Biofuels New Albany MS Soy Oil 7.5 Kelley Green Biofuel Goshen KY Waste Vegetable Oil 0.1 Keystone BioFuels Inc. Camp Hill PA Multi-Feedstock 45 Louis Dreyfus Agricultural Claypool IN Soy Oil 90 Loyola University Chicago Chicago IL Used Cooking Oil 0.1 Maine Bio-Fuel Inc. Portland ME Yellow Grease 1.5 Maple River Energy Galva IA Corn Oil/Soy Oil 5 Maryland Biodiesel Inc. Berlin MD Multi-Feedstock 1 Mason Biodiesel LLC Westerly RI Multi-Feedstock 1.2 ME Bio Energy LLC Lilbourn MO Multi-Feedstock 5 Mid-America Biofuels Mexico MO Soy Oil 50 Midlands Biofuels LLC Winnsboro SC Multi-Feedstock 0.2 Midwest Biodiesel Products South Roxana IL Multi-Feedstock 12 Milagro Biofuels Memphis TN Animal Fats/Soy Oil 5 Minnesota Soybean Processors Brewster MN Soy Oil 30 Mississippi Petroleum Houston MS Multi-Feedstock 8 Mother Earth Energy Inc. Chester NJ Waste Vegetable Oil 3 Natural Biodiesel Plant LLC Hayti MO Multi-Feedstock 5 New Leaf Biofuel LLC San Diego CA Yellow Grease 6
52 STRATEGIC BUSINESS PLAN | Newport Biodiesel Inc. Newport RI Yellow Grease 2.8 North Alabama Biodiesel Florence AL Animal Fats/Yellow Grease 2 Northern Biodiesel Inc. Ontario NY Multi-Feedstock 20 NuOil Inc. Counce TN Multi-Feedstock 1 Oilmatic Systems LLC Keasbey NJ Yellow and Brown Grease 3 OK Biodiesel Inc. Gans OK 3 Omaha Biofuels Coop Omaha NE Waste Vegetable Oil 0.025 OPDA Biodiesel Production Odessa WA Canola Oil 8 Owensboro Grain Biodiesel Owensboro KY Soy Oil 45 Pacific Biodiesel Technologies Carl's Corner TX Cottonseed Oil/ Yellow Grease 2.8 Paseo-Cargill Energy LLC Kansas City MO Soy Oil 56 Patriot Biodiesel LLC Greensboro NC Multi-Feedstock 6.5 Patriot Fuels Biodiesel LLC Annawan IL Distillers Corn Oil 5 Peach State Labs Inc. Rome GA Soy Oil 10 Petroless Fuel LLC Middle River MD Multi-Feedstock 0.5 Piedmont Biofuels Pittsboro NC Multi-Feedstock 1.4 Pinnacle Biofuels Inc. Crossett AR Multi-Feedstock 15 PK Biodiesel Woodstock OH Soy Oil 5 Pleasant Valley Biofuels LLC Washington UT Multi-Feedstock 5.2 Preformance Biodiesel St. Joseph MO Animal Fats 15 Promethean Biofuels Co-op Temecula CA Used Cooking Oil 2.1 Quantum International Poteet TX Soy Oil 5 R3 Energy LLC Cottonwood KS Multi-Feedstock 1.5 RBF Port Neches LLC Port Neches TX Multi-Feedstock 180 Reco Biodiesel LLC Richmond VA Used Cooking Oil 3.6 Red Birch Energy Inc. Bassett VA Multi-Feedstock 3 REG Albert Lea LLC Albert Lea MN High/ low FFA 30 REG Danville LLC Danville IL High/ low FFA 45 REG Grays Harbor LLC Hoquiam WA Multi-Feedstock 100 REG Houston LLC Seabrook TX Low FFA 35 REG Mason City LLC Mason City IA High/ low FFA 30 REG New Boston LLC New Boston TX High/ low FFA 15 REG Newton LLC Newton IA High/ low FFA 30 REG Ralston LLC Ralston IA Low FFA 12 REG Seneca LLC Seneca IL High/ low FFA 60 REV Biodiesel Gilbert AZ Used Cooking Oil 10 Rio Valley Biofuels LLC Anthony NM Multi-Feedstock 1.5
STRATEGIC BUSINESS PLAN | 53 Sanimax Energy DeForest WI Used Cooking Oil/ Corn Oil 20 Scott Petroleum Greenville MS Multi-Feedstock 20 Seminole Biodiesel Bainbridge GA Soy Oil 1.5 SeQuential Pacific Biodiesel Salem OR Used Cooking Oil 17 Shenandoah Agricultural Clear Brook VA Waste Vegetable Oil 0.3 Simple Fuels Biodiesel Chilcoot CA Yellow Grease 2 South East Oklahoma Biodiesel Valliant OK Soy Oil 3 Southeast Biodiesel LLC North Charleston SC Multi-Feedstock (cooking oil) 5 Southern California Biofuel Anaheim CA Used Cooking Oil/Yellow Grease 1 Stepan Co.-Joliet Joliet IL Soy Oil 21 Sullens Biodiesel LLC Morrison TN Used Cooking Oil 2 Sun Power Biodiesel LLC Cumberland WI Canola Oil/Soy Oil 3 Sun Products Corporation Pasadena TX Palm Oil 4 Synergy Biofuels LLC Pennington Gap VA Waste Vegetable Oil 3 Texas BioTech Inc. Arlington TX Waste Vegetable Oil/Soybean Oil 3 Texas Green Manufacturing Littlefield TX Animal Fats 1.25 The La Grange Plant Inc. La Grange TX Animal Fat/Waste Vegetable Oils 3.5 Thumb BioEnergy LLC Sandusky MI Used Cooking Oil 0.42 Triangle Biofuels Industries Wilson NC Multi-Feedstock 5 Twin Rivers Technologies Quincy MA United Oil Co. Pittsburgh PA Animal Fats/Soy Oil 2 US Biofuels Inc. Rome GA Multi-Feedstock 18 Valco BioEnergy Harlingen TX Multi-Feedstock 3 Viesel Fuel LLC Stuart FL Waste Vegetable Oil 15.8 Virginia Biodiesel Refinery West Point VA Soy Oil/Yellow Grease 8 W2Fuel - Adrian Adrian MI Corn Oil/Soy Oil/Biogenic Waste Fats, Oils, Greases 10 W2Fuel - Crawfordsville Crawfordsville IA Soy Oil/Corn Oil 10 Walsh BioFuels LLC Mauston WI Distillers Corn Oil 5 Washakie Renewable Energy Plymouth UT Multi-Feedstock 22 Western Dubuque Biodiesel Farley IA Soy Oil/Tallow/ Canola/Corn Oil 33 Western Iowa Energy LLC Wall Lake IA Multi-Feedstock 30 White Mountain Biodiesel North Haverhill NH Multi-Feedstock 5.5 Total Number of Plants: 166 Total Existing Capacity(MMgy): 2,756.06

7.2 Biofuel Companies in Canada:

Archer Daniels Midland

Atlantec Bioenergy Corporation

Atlantic Biodiesel

BIOX Corporation

Canadian Renewable Fuels Association

Consolidated Biofuels Ltd.

Enerkem Alberta Biofuels - Edmonton

Waste-to-Biofuels Facility

Enerkem Inc.

Enerkem Inc.

Evoleum

GreenField Specialty Alcohols

GreenField Specialty Alcohols

GreenField Specialty Alcohols

GreenField Specialty Alcohols

Growing Power Hairy Hill

Husky Energy Inc.

Husky Energy Inc.

IGPC Ethanol Inc.

Innoltek

Kawartha Ethanol

Methes Energies Canada Inc.

Methes Energies Canada Inc.

Milligan Bio-Tech Inc.

NorAmera BioEnergy Corporation

Noroxel Energy Ltd.

North West Bio-Energy Ltd.

Permolex International, L.P.

Pound-Maker Agventures Ltd.

Rothsay Biodiesel

Suncor St. Clair Ethanol Plant

Terra Grain Fuels Inc.

VANERCO, a joint venture between Enerkem and GreenField

Lloydminster AB, Canada Renewable diesel

Cornwall, PEI, Canada Ethanol

Welland, ON, Canada Renewable diesel

Hamilton, ON, Canada Renewable diesel

Ottawa, Ontario Association

Delta, BC, Canada Renewable diesel

Edmonton, AB, Canada Ethanol

Westbury, QC, Canada Ethanol

Sherbrooke, QC, Canada Ethanol

St-Jean-d'Iberville, QC Renewable diesel

Johnstown, ON, Canada Ethanol

Chatham, ON, Canada Ethanol

Tiverton, ON, Canada Ethanol

Varennes, QC, Canada Ethanol

Hairy Hill, AB, Canada Ethanol

Lloydminster, SK, Canada Ethanol

Minnedosa, MB, Canada Ethanol

Aylmer, ON, Canada Ethanol

Thetford Mines, QC Renewable diesel

Havelock, ON, Canada Ethanol

Sombra, ON, Canada Renewable diesel

Mississauga, ON Renewable diesel

Foam Lake, SK, Canada Renewable diesel

Weyburn, SK, Canada Ethanol

Springfield, ON, Canada Renewable diesel

Unity, SK, Canada Ethanol

Red Deer, AB, Canada Ethanol

Lanigan, SK, Canada Ethanol

Montreal, QC, Canada Renewable diesel

Sarnia, ON, Canada Ethanol

Belle Plaine, SK, Canada Ethanol

Varennes, QC, Canada Ethanol

54 STRATEGIC BUSINESS PLAN |

8 Exit Strategy

STRATEGIC BUSINESS PLAN | 55

8 Exit Strategy

Eco Oils will have a number of options that will help it to optimize returns for its shareholders. The options have been described below:

Sale – This is the most common exit strategy, where Eco Oils could be acquired by a major player. Cash generated from the sale can be used to repay any shareholder debt held by the company. In this case, the value will be intrinsic to the historic performance of the company. The company will need to achieve a certain critical mass in order to release true shareholder value.

Merger – Eco Oils could merge with another larger organization and the shareholders can receive stock in return. The assets and liabilities would be transferred to the larger organization.

Go Public – Eco Oils may apply to various exchanges in the USA or Canada to obtain legal status as a publicly traded company. In this case, the company will need to achieve a certain critical mass in order to achieve true shareholder value.

Leveraged Buyout – This can happen if another company from the same line of business buys out Eco Oils. In an arrangement of this nature, the final price can be tied to the performance of the business and for a pre-defined period after change of ownership. However, it does provide cash returns and any debt can potentially be repaid from the cash generated or get transferred to the buyer.

Refinancing – The Company can get its assets refinanced in order to pay off investors.

56 STRATEGIC BUSINESS PLAN |

9 Proforma Financial Projections

STRATEGIC BUSINESS PLAN | 57

9 Financial Overview

9.1 Purpose of this Business Plan

The purpose of this business plan is to demonstrate the capabilities and plans of Eco Oils. The Company has the proprietary IP and engineering know how to set up profitable biodiesel plants beginning in North America. The plan describes an investment of $42,500,000 required to buildout an initial pilot plant and full sized biodiesel production plant in the USA.

9.2 Historical Investment

To date, Eco Oils has invested $2,690,000 as follows:

9.2.1 Use of Proceeds of Historical Investment

Design of Biodiesel Plant P&ID (Piping and Instrumentation Diagram/Drawing) Design of Equipment:

Design of Equipment:

▪ Pressure Vessels

▪ Processing Tanks

▪ Distiller

Selection of Equipment:

▪ Heat Exchangers

▪ Pumps

▪ Mixers

▪ Filters

▪ Vacuum System

▪ Thermal Fluid System

58 STRATEGIC BUSINESS PLAN |
Historical Investment for Research & Development 2009 $350,000 2010 $380,000 2011 $350,000 2012 $300,000 2013 $360,000 2014 $350,000 2015 $300,000 2016 $300,000 2017 $200,000 Total Investment to Date $2,890,000

Design of Tank Farm:

▪ Tanks

▪ Piping and Valves

▪ Pumps

▪ Instrumentation

Selection of Utility Package:

▪ Cooling Towers

▪ Water Treatment System

▪ Boilers

▪ Air Compressor

▪ Selection of Instrumentation and Control Valves

Selection of Piping. Valves P.I. T.I Etc.

Design of Layouts:

▪ Package Units

▪ Building Layout

Design of Glycerin Refining P&ID (Piping and I instrumentation Diagram/Drawing)

Design of Equipment:

▪ Pressure Vessels

▪ Processing Tanks

▪ Distiller

Selection of Equipment:

▪ Heat Exchangers

▪ Pumps

▪ Mixers

▪ Filters

▪ Processing Tanks

▪ Thermal Fluid System

Selection of Instrumentation and Control Valves

Selection of Piping, Valves P.I. T.I Etc.

Potential Locations of the Plants:

▪ South Carolina

▪ Sudbury

▪ Hamilton

▪ Niagara Falls

▪ Guyana

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Development of Feedstocks:

CO-OP Cooperation in Northern Ontario

Feedstocks:

▪ Pennycress

▪ Carinata

▪ Corn Oil from Distillers

▪ Jatropha

▪ Palm Oil

Extraction Plants for the Feedstocks:

▪ Design

▪ Procurement

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9.3 Capital Requirements

9.4 Use of

In order to achieve the sales targets outlined in this business plan, the funds raised will be used for the following purposes:

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Proceeds
Financing Structure Phase 1 Financing $34,500,000 Financial Highlights Fiscal Year Ends: 31-Dec Tax rate 30.00% Eco Oils Total Capital Requirement 1-20 Million Tank Biodesel Processing System 28,000,000 $ Installation 5,000,000 $ Additional Small Tanks 200,000 $ Subtotal 33,200,000 $ Administrative Support 300,000 $ Contingency 1,000,000 $ Subtotal 1,300,000 $ Total 34,500,000 $ Office & Admin Capital Requirement Building & Equipment

9.5 Assumptions

The Company completed complex assumptions during the preparation of this business plan. If you would like to access a copy of the assumptions, please direct an enquiry to management.

Revenue Assumptions

62 STRATEGIC BUSINESS PLAN |
Year 1 Year 2 Year 3 Year 4 Year 5 Revenues 64,680,000 $ $66,620,400 $68,619,012 $137,238,024 $141,355,165 Total Sales 64,680,000 $ 66,620,400 $ 68,619,012 $ 137,238,024 $ 141,355,165 $ Cost of GoodsSold Direct Labor 600,000 $ 624,000 $ 648,960 $ 843,648 $ 877,394 $ Corn Oil 45,600,000 $ $46,968,000 $48,377,040 96,754,080 $ 99,656,702 $ Inbound Freight 1,600,000 $ 1,648,000 $ 1,697,440 $ 3,394,880 $ 3,496,726 $ Methanol Cost 3,200,000 $ 3,296,000 $ 3,394,880 $ 6,789,760 $ 6,993,453 $ Clay Cost 140,000 $ 144,200 $ 148,526 $ 297,052 $ 305,964 $ Engineering Salaries 170,000 $ 175,100 $ 180,353 $ 360,706 $ 371,527 $ Utilities Costs 800,000 $ 824,000 $ 848,720 $ 1,697,440 $ 1,748,363 $ Total Cost of GoodsSold 52,110,000 $ 53,679,300 $ 55,295,919 $ 110,137,566 $ 113,450,129 $ GrossMargin 12,570,000 $ 12,941,100 $ 13,323,093 $ 27,100,458 $ 27,905,035 $
Expenses Year 1 Year 2 Year 3 Year 4 Year 5 Office General 300,000 $ 312,000 $ 324,480 $ 324,480 $ 337,459 $ Maintenance 160,000 $ 166,400 $ 173,056 $ 190,362 $ 197,976 $ Advertising 15,000 $ 15,600 $ 16,224 $ 17,846 $ 18,560 $ Travel 15,000 $ 15,600 $ 16,224 $ 17,846 $ 18,560 $ Tank Rental 280,000 $ 291,200 $ 302,848 $ 333,133 $ 346,458 $ Mgt & Sales Salaries 800,000 $ 832,000 $ 865,280 $ 891,238 $ 926,888 $ Telephone 30,000 $ 31,200 $ 32,448 $ 35,693 $ 37,121 $ Insurance 50,000 $ 52,000 $ 54,080 $ 64,896 $ 67,492 $ Bank Charges 3,000 $ 3,120 $ 3,245 $ 3,569 $ 3,712 $ Professional Fees 60,000 $ 62,400 $ 64,896 $ 64,896 $ 67,492 $ Net Tax 20,000 $ 20,800 $ 21,632 $ 23,795 $ 24,747 $ Miscellaneous 15,000 $ 15,600 $ 16,224 $ 17,846 $ 18,560 $ Total Operating Costs 1,748,000 $ 1,817,920 $ 1,890,637 $ 1,985,601 $ 2,065,025 $ Ongoing Business Expenses

9.6 Revenue Projections

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Year 1 Year 2 Year 3 Year 4 Year 5 Total Revenues 64,680,000 $ 66,620,400 $ 68,619,012 $ 137,238,024 $ 141,355,165 $ Total COGS 52,110,000 $ 53,679,300 $ 55,295,919 $ 110,137,566 $ 113,450,129 $ Operating Expenses 1,748,000 $ 1,817,920 $ 1,890,637 $ 1,985,601 $ 2,065,025 $ Operating Income 10,822,000 $ 11,123,180 $ 11,432,456 $ 25,114,857 $ 25,840,010 $
Revenue Summary

9.7 Income Statement

64 STRATEGIC BUSINESS PLAN |
Year 1 Year 2 Year 3 Year 4 Year 5 Revenues Revenues $64,680,000 $66,620,400 $68,619,012 $137,238,024 $141,355,165 Total Revenues $64,680,000 $66,620,400 $68,619,012 $137,238,024 $141,355,165 Cost of GoodsSold Inbound Freight 1,600,000 $ 1,648,000 $ 1,697,440 $ 3,394,880 $ 3,496,726 $ Methanol Cost 3,200,000 $ 3,296,000 $ 3,394,880 $ 6,789,760 $ 6,993,453 $ Clay Cost 140,000 $ 144,200 $ 148,526 $ 297,052 $ 305,964 $ Engineering Salaries 170,000 $ 175,100 $ 180,353 $ 360,706 $ 371,527 $ Utilities Costs 800,000 $ 824,000 $ 848,720 $ 1,697,440 $ 1,748,363 $ Total Cost of GoodsSold $52,110,000 $53,679,300 $55,295,919 $110,137,566 $113,450,129 GrossProfit $12,570,000 $12,941,100 $13,323,093 27,100,458 $ 27,905,035 $ Operating Expenses Office General 300,000 $ 312,000 $ 324,480 $ 324,480 $ 337,459 $ Maintenance 160,000 $ 166,400 $ 173,056 $ 190,362 $ 197,976 $ Advertising 15,000 $ 15,600 $ 16,224 $ 17,846 $ 18,560 $ Travel 15,000 $ 15,600 $ 16,224 $ 17,846 $ 18,560 $ Tank Rental 280,000 $ 291,200 $ 302,848 $ 333,133 $ 346,458 $ Mgt & Sales Salaries 800,000 $ 832,000 $ 865,280 $ 891,238 $ 926,888 $ Telephone 30,000 $ 31,200 $ 32,448 $ 35,693 $ 37,121 $ Insurance 50,000 $ 52,000 $ 54,080 $ 64,896 $ 67,492 $ Bank Charges 3,000 $ 3,120 $ 3,245 $ 3,569 $ 3,712 $ Professional Fees 60,000 $ 62,400 $ 64,896 $ 64,896 $ 67,492 $ Net Tax 20,000 $ 20,800 $ 21,632 $ 23,795 $ 24,747 $ Miscellaneous 15,000 $ 15,600 $ 16,224 $ 17,846 $ 18,560 $ Total Operating Expenses 1,748,000 $ 1,817,920 $ 1,890,637 $ 1,985,601 $ 2,065,025 $ Operating Income / (Loss) $10,822,000 $11,123,180 $11,432,456 25,114,857 $ 25,840,010 $ Depreciation 2,213,333 $ 2,213,333 $ 2,213,333 $ 3,320,000 $ 3,320,000 $ Pre-tax Income / (Loss) 8,608,667 $ 8,909,847 $ 9,219,123 $ 21,794,857 $ 22,520,010 $ Provision for Income Tax 2,582,600 $ 2,672,954 $ 2,765,737 $ 6,538,457 $ 6,756,003 $ Net Income 6,026,067 $ 6,236,893 $ 6,453,386 $ 15,256,400 $ 15,764,007 $
Statement $$20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 Year 1 Year 2 Year 3 Year 4 Year 5 Gross Revenues & Net Income Total Revenues Net Income
Income

9.8 Profitability & Return on Investment

STRATEGIC BUSINESS PLAN | 65
Profitability
Year 1 Year 2 Year 3 Year 4 Year 5 Revenue 64,680,000 $ 66,620,400 $ 68,619,012 $ 137,238,024 $ 141,355,165 $ Gross Margin 12,570,000 $ 12,941,100 $ 13,323,093 $ 27,100,458 $ 27,905,035 $ GrossMargin (%) 19% 19% 19% 20% 20% Net Income 6,026,067 $ 6,236,893 $ 6,453,386 $ 15,256,400 $ 15,764,007 $ Net Profit Margin (%) 9% 9% 9% 11% 11% Initial Investment 34,500,000 $ 5-Year ROI 17% 18% 19% 44% 46% 5-Year Annualized ROI 8%
and ROI

9.9 Cash Flow

66 STRATEGIC BUSINESS PLAN |
Year 1 Year 2 Year 3 Year 4 Year 5 Operating Activities Net Income 6,026,067 $ 6,236,893 $ 6,453,386 $ 15,256,400 $ 15,764,007 $ Deprecitation 2,213,333 $ 2,213,333 $ 2,213,333 $ 3,320,000 $ 3,320,000 $ Subtotal 8,239,400 $ 8,450,226 $ 8,666,719 $ 18,576,400 $ 19,084,007 $ Changes in working capital: Accounts Receivables (6,468,000) $ (6,662,040) $ (6,861,901) $ (13,723,802) $ $(14,135,516) Accounts Payables 87,400 $ 90,896 $ 94,532 $ 99,280 $ 103,251 $ Increase in Inventory - $ - $ - $ - $ - $ Subtotal (6,380,600) $ (6,571,144) $ (6,767,369) $ (13,624,522) $ $(14,032,265) Operating Cashflow 1,858,800 $ 1,879,082 $ 1,899,350 $ 4,951,877 $ 5,051,742 $ Capital Expenditures NET CASH 1,858,800 $ 1,879,082 $ 1,899,350 $ 4,951,877 $ 5,051,742 $ Cash From Financing Anticipated Financing Less: Dividends Paid - $ - $ - $ - $ - $ Less: Increases in Treasury Stock Plus: Increases in APIC Plus: Increases in Capital Stock34,500,000 $ 32,000,000 $ Total Financing $34,500,000 - $ - $ 32,000,000 $ - $ Net change in cash $36,358,800 1,879,082 $ 1,899,350 $ 36,951,877 $ 5,051,742 $ Cash at beginning of year - $ $36,358,800 1,879,082 $ 1,899,350 $ 36,951,877 $ Year End Cash $36,358,800 1,879,082 $ 1,899,350 $ 36,951,877 $ 5,051,742 $
Flow Statement
Cash

9.10 Balance Sheet

STRATEGIC BUSINESS PLAN | 67
Year 1 Year 2 Year 3 Year 4 Year 5 ASSETS Current Assets Cash $36,358,800 1,879,082 $ 1,899,350 $ $36,951,877 5,051,742 $ Accounts Receivable 6,468,000 $ 6,662,040 $ 6,861,901 $ $13,723,802 14,135,516 $ Inventory - $ - $ - $ - $ - $ Total Current Assets $42,826,800 8,541,122 $ 8,761,251 $ $50,675,680 19,187,258 $ Fixed Assets PP&E (net) Depreciation 2,213,333 $ 2,213,333 $ 2,213,333 $ 3,320,000 $ 3,320,000 $ Total Current Assets (2,213,333) $ (2,213,333) $ (2,213,333) $ (3,320,000) $ (3,320,000) $ Total Assets $40,613,467 6,327,789 $ 6,547,918 $ $47,355,680 15,867,258 $ LIABILITIES Current Liabilities Accounts Payable 87,400 $ 90,896 $ 94,532 $ 99,280 $ 103,251 $ Total Current Liabilities 87,400 $ 90,896 $ 94,532 $ 99,280 $ 103,251 $ Long Term Debt (Financing) - $ - $ - $ - $ - $ Total Liabilities 87,400 $ 90,896 $ 94,532 $ 99,280 $ 103,251 $ Shareholders' Equity Retained Earnings 6,026,067 $ 6,236,893 $ 6,453,386 $ $15,256,400 15,764,007 $ Total Equity $40,526,067 6,236,893 $ 6,453,386 $ $47,256,400 15,764,007 $ Total Liability & Equity $40,613,467 6,327,789 $ 6,547,918 $ $47,355,680 15,867,258 $ Balance Sheet

9.11 Break Even Analysis

Benchmarks & Break Even Analysis

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Year 1 Year 2 Year 3 Year 4 Year 5 Average Revenues $64,680,000 $66,620,400 $68,619,012 $137,238,024 $141,355,165 95,702,520 $ COGS $52,110,000 $53,679,300 $55,295,919 $110,137,566 $113,450,129 76,934,583 $ Fixed Costs 978,000 $ 1,017,120 $ 1,057,805 $ 1,101,934 $ 1,146,011 $ $172,637,103 Variable Costs 770,000 $ 800,800 $ 832,832 $ 883,667 $ 919,014 $ 841,263 $ EBIT $10,822,000 $11,123,180 $11,432,456 25,114,857 $ 25,840,010 $ 16,866,501 $ BE % 8.29% 8.38% 8.47% 4.20% 4.25% 6.72% Break Even $5,360,766 $5,581,488 $5,811,369 $5,768,336 $6,002,909 $6,428,351

9.12 Sensitivity Analysis

STRATEGIC BUSINESS PLAN | 69
Revenue 110% Revenue 90% COGS 100% COGS 110% Operating Expenses 100% Operating Expenses 110% Revenue 71,148,000 $ Revenue 58,212,000 $ COGS 52,110,000 $ COGS 57,321,000 $ Operating Expenses 1,748,000 $ Operating Expenses 1,922,800 $ Operating Income 17,290,000 $ Operating Income (1,031,800) $ Operating Profit % 24.30% Operating Profit % -1.77% Revenue 100% Revenue 100% COGS 90% COGS 120% Operating Expenses 90% Operating Expenses 120% Revenue 64,680,000 $ Revenue 64,680,000 $ COGS 46,899,000 $ COGS 62,532,000 $ Operating Expenses 1,573,200 $ Operating Expenses 2,097,600 $ Operating Income 16,207,800 $ Operating Income 50,400 $ Operating Profit % 25.06% Operating Profit % 0.08% SensitivityAnalysis 1 SensitivityAnalysis 2 SensitivityAnalysis 3 SensitivityAnalysis 4

9.13 Ratio Analysis

Ratio Analysis

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Year 1 Year 2 Year 3 Year 4 Year 5 Working Capital 42,739,400 $ 8,450,226 $ 8,666,719 $ 50,576,400 $ 19,084,007 $ Current Ratio 490 94 93 510 186 Net Profit Margin 9.32% 9.36% 9.40% 11.12% 11.15% Return On Assets (ROA) 14.84% 98.56% 98.56% 32.22% 99.35% Operating Income Margin 16.73% 16.70% 16.66% 18.30% 18.28% Return On Equity 14.87% 100.00% 100.00% 32.28% 100.00% Gross Profit Margin 19.43% 19.43% 19.42% 19.75% 19.74% Debts To Assets 0.22% 1.44% 1.44% 0.21% 0.65% Capitalization 0.00% 0.00% 0.00% 0.00% 0.00% Debt To Equity 0.22% 1.46% 1.46% 0.21% 0.65% Debt To Working Capital 0.20% 1.08% 1.09% 0.20% 0.54% Cash Turnover 1.78 35.45 36.13 3.71 27.98 Sales To Assets 1.59 10.53 10.48 2.90 8.91 Fixed Asset Turnover Profitability Ratios Financial Leverage Ratios Efficiency Ratios
Liquidity Ratios
STRATEGIC BUSINESS PLAN | 71
10 Appendix A
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11 Bibliography

Biofuel market

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http://agrisoma.com/carinata/

http://biodico.com/

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http://www.agr.gc.ca/eng/news/science-of-agricultural-innovation/camelina-potential-on-theshelf/?id=1395348551385

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http://www.producer.com/2014/07/regulatory-hangups-slow-growth-of-carinata/

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http://www.projectjatropha.com/

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http://www.susoils.com/camelina/

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http://www.winnipegfreepress.com/arts-and-life/life/greenpage/canadas-biofuels-industry-facingincreasing-headwinds-despite-climate-change-push-371362381.html

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http://www.zero.no/publikasjoner/biofuels-in-ships

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https://en.wikipedia.org/wiki/Algae_fuel

https://www.dieselnet.com/papers/9705howell.html

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https://www.oregon.gov/energy/TRANS/docs/biodiesel.pdf

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