Eco Innovation Forum May 2011 Sydney

Vision To become a world leader in the supply and servicing of ocean renewable energy systems – creating green jobs and reducing greenhouse gas emissions 2

Brief Overview of BioPower Systems The Company Based in Sydney, Australia Developing technologies to produce electricity from waves and tides Key shareholders include Lend Lease Ventures and CVC REEF Established network of partners: Siemens, Bosch Rexroth, Elecnor Technology Status Proof of concept completed: tank tests, simulations and engineering Technologies protected globally by patents (granted and pending) Technology pipeline: bioWAVETM followed by bioSTREAMTM bioWAVETM 250kW pilot in development 250kW O-DriveTM power module built and factory-tested Business Plan Complete 250kW bioWAVE pilot in Victoria Develop (pre) commercial projects in Australia, USA and Europe Provide turn-key ocean energy plants: Project development Ocean energy systems Project management and O&M services bioWAVETM bioSTREAMTM 3

Wave Energy Resource Global "The available global Ocean Energy resource is in the same order of magnitude as the present electricity production worldwide." – International Energy Agency-OES

Wave Energy Resource Consistent Available Reliable "The total required renewable energy quota could be achieved if 10% of the available wave energy resource over a 1000 km section of the Southern Australian margin were converted to electricity." - Hemer & Griffiths, CSIRO, Australia ” Wave and tidal stream energy has the potential to generate about 15% - 20% of the UK’s electricity." - The Carbon Trust, UK "In the Pacific Northwest alone, it's feasible that wave energy could produce 40–70 kilowatts (kW) per meter (3.3 feet) of western coastline. The West Coast of the United States is more than a 1,000 miles long." - U.S. Department of Energy

bioWAVETM Wave energy system Developed in Australia for global application Designed to supply utility-scale power in ocean energy farms Uniquely designed, with clear advantages Strategic partners (Siemens, Bosch Rexroth, Lend Lease) in place to deliver the technology 250kW pilot: 30m 1MW commercial: 40m Illustration depicts bioWAVE ocean wave energy system with globally patented components including: - Oscillating multi-blade structure for optimal energy capture - O-Drive detachable power conversion module - Unique foundation, allowing bioWAVE docking and pivot for wave alignment

bioWAVETM Development Extensively tested

O-DriveTM A Full-scale 250kW Power Take-Off (PTO) Module 8

bioWAVETM Superior wave energy technology - why? Maximum Efficiency - Patented multi-blade design increases capture width Vertically-arranged blades oscillate within the zone of maximum energy flux, allowing for higher energy capture Pivoting ability to continually align with swell direction Low Risk – Low Cost Installation - Patented modular deployment and retrieval Unique Survivability - Onboard sensors automatically trigger unit to lay flat against seabed to avoid extreme wave conditions Servicing A modular detachable Power Take-Off (PTO) module makes O&M easy Environmental and Social Zero visual impact, no noise, no land-use Harmonious to marine environment Wave power distribution with depth bioWAVETM captures power at the surface and below No other competing technologies contain these 5 elements necessary to achieve commercial success

bioWAVETM Commercial Development and Wave Farm Roll-Out Planned progression from pilot to full-scale commercial units 10

Commercialization Plan Pilot Project to Wave Farms

Company Overview History of Technology Development August 2005 Initial concept development completed for bioWAVETM, bioSTREAMTM, bioBASETM, and O-DriveTM technologies May 2006 Initial theoretical and computational predictions completed for bioWAVETM, bioSTREAMTM bioBASETM, and O-DRIVETM March/April 2007 1/16 scale tank test results from Australian Maritime College support power production capabilities for bioWAVETM and bioSTREAMTM August 2007 Preliminary pilot project work initiated and Tasmanian sites identified July 2008 Preliminary design for bioWAVETM and bioSTREAMTM pilots underway; generator and hydraulic systems ordered from Siemens and Bosch Rexroth December 2008 Design structural review completed noting potential risks associated with fully composite design January 2009 Multi-party consultation on design and device fabrication March 2009 Construction of 250kW bioWAVETM and bioSTREAMTM power conversion equipment (O-DriveTM) begins July 2009 Port Fairy VIC site identified for 250kW bioWAVETM pilot test at sea July 2010 BioPower Systems opens new grid-connected Test Centre for O-DriveTM factory trials November 2010 O-DriveTM equipment delivers stable power to grid during initial test phase January 2010 O-DriveTM testing confirms power conversion efficiency at full-scale in grid-connected testing February 2010 bioWAVETM preliminary structure design undergoes initial review by fabrication/engineering company May 2011 Port Fairy pilot project approaching readiness to enter build stage

Company Overview History of Financing and Commercial Development August 2005 Provisional patent applications lodged by Sykel Pty Limited for bioWAVE, bioSTREAM, bioBASE, and O-Drive technologies March 2006 BioPower Systems Pty Ltd founded and all patents re-assigned from Sykel Pty Ltd July 2006 A$60k seed capital raised from private investors November 2006 A$64k COMET grant awarded from AusIndustry A$157k invested by CVC REEF Ltd July 2007 A$1.0 million invested by CVC REEF Ltd November 2007 A$5.0 million REDI grant awarded from AusIndustry January 2008 A$56k Tier 2 COMET grant awarded from AusIndustry March 2008 MOU with Hydro Tasmania for collaboration on pilot projects A$6.0 million invested by Lend Lease Ventures, CVC REEF, and CVC Sustainable Investments August 2009 Collaborative Agreement with the City of San Francisco for Wave Energy Project March 2009 MOU with Siemens for collaboration on business opportunities September 2009 MOU with Elecnor SA for collaboration on 0.75MW pre-commercial pilot in Spain February 2010 Wave Farm Project Agreement signed with Diamond Energy to acquire all rights to Port Fairy site May 2011 In market for grants and equity capital to support completion of Commercialisation Plan

Risks Technical and Commercial risks are understood Technical Risks Performance risk - Low Extensive testing and simulation Full-scale O-Drive built and tested Deployment risk – Low/Moderate Well-developed process Use of experienced marine consultants and contractors Survival risk – Low/Moderate Survivability mode designed and verified by testing O&M risk – Low Moderate Pre-launch testing Modularity Detachable O-Drive Oil and gas precedents Commercial Risks Cost risk – Moderate/High Reliance on cost parity with wind/solar Scale required to demonstrate cost reductions Market risk – Moderate Interest registered by large utilities Market well documented in Europe Projects in development in USA, Spain Business risk – Moderate Strategic partnerships in development Flexible business model Commercial focus on supply and services

Summary www.biopowersystems.com BioPower Systems is commercialising advanced ocean energy technologies The business plan involves supply, management and servicing of turn-key ocean energy projects worldwide Partners include Lend Lease Corporation, Siemens Ltd, and Elecnor SA 250kW bioWAVE pilot under development in Victoria Commercial projects are in planning stages in Australia, Europe and USA Progress will depend on government policy and support www.biopowersystems.com 15