SOLARIS Energy Tobacco Activities and Results SOLARIS Energy Tobacco

Sunchem Holding Sunchem Holding is a research and development company driven to develop the next generation of sustainable energy crops For this purpose Sunchem Holding created, through targeted selection, a GMO free tobacco variety called Solaris Solaris does not contain nicotine and is therefore unfit to grow traditional leaf tobacco, it is characterized by low leaf and high seed production; the separation and pressing of seed generates oil for biofuels, press cake for animal feed and dry biomass for energy generation As a result of multiple annual harvests and related high yields per hectare, the carbon reduction potential of Solaris exceeds all other energy crops Sunchem Holding holds the exclusive rights to exploit and globally develop the industrial patent for “energy tobacco” (PCT/IB/2007/053412); the patent has been deposited in 119 countries and has been granted in over 70 countries (USA, all African Countries, EuroAsia, Italy, Russia)

Mission - Vision - Values To develop and promote through traditional targeted selection next generation energy crops that are deployed in a socially & environmentally sustainable manner Vision To become a global supply chain leader in the biofuels market   Values Our key values are: - Innovation through research & development - Social and environmental sustainability

Energy Tobacco Solaris’ yields The Solaris tobacco variety maximizes the production of flowers and seed and has reduced growth of leaf Solaris is very robust, it can be cultivated in a variety of climates and soils, amongst others on marginal lands unsuitable for food production Solaris’ yields One hectare of Solaris generates an average of 3 tons of seed per harvest, subject suitable conditions 3 or more harvests per year can be obtained Seed contains 40% oil, through cold pressing up to 33% oil and 67% protein cake can be extracted In addition 1 to 2 tons of dry biomass per hectare and per harvest result from the seed separation process Alternatively 60-100 tons per hectare of fresh biomass can be harvested for the production of biogas

Product applications TOBOIL, a crude oil for energy production, biodiesel and bio jet fuel Press cake for animal feed Biomass for the generation of electricity and heat - the calorific value of the dry biomass amounts to 3.800 kcal/kg and for the generation of biogas - fresh biomass produces 190 m3 of gas with 54% methane

Integrated Value Chain

Sunchem History Time Development 2012-2013-2014 – Sunchem enters in the pre-industrial phase 2010-2011 – Sunchem further consolidates test results and knowledge of agro-practice, oil, cake and biomass Sunchem develops a stable agro-protocol, has deep knowledge of its products and engages strong partnerships 2007-2008-2009 – Sunchem tests the plant in different countries: Romania, Brazil, USA, Bulgaria, Egypt, Italy and Algeria Sunchem expands knowledge and improves its international network Time 2003 – Prof. Corrado Fogher designs a variety of seed tobacco that leads to the founding of Sunchem in 2007 for development of international patent PCT/IB/2007/053412 Understanding of technology and product grows The starting principle is developing a strong scientific foundation 1990-2002 – founding partner of Sunchem, plant genetist Prof. Corrado Fogher worked on the analysis, genetics and DNA of Energy Tobacco Development

Italy Since 2008 Sunchem Holding pursued testing at many different sites in order to refine the agronomic protocol for different latitudes, soil and climate conditions In 2012, more than 400 hectares on one site have been cultivated to support setting agronomic parameters for larger scale operations In 2013, the base-case production of seed has stabilized between 2.5 and 3 tons per hectare per harvest, however sites in Africa reach over 4 tons of seed per harvest showing substantial upside can be achieved with ongoing improvement in plant variety and choice of location

Activity selection and variety improvements A large variety of plants are followed throughout their development during which different parameters are recorded. Inflorescences from the most productive plants are collected and evaluated, after which again the most promising lines are selected for selfing Following plant selection, the reproduction capacity is tested in test fields Sunchem’s partner “Plantechno” is managing the genetics and the selection process

Various other lines from the plant’s germoplasm (collection of genetic resources) and crosses aimed at increasing productivity are also being evaluated

Various plant lines of tobacco are being grown to either select highly productive and stable Solaris lines or to evaluate their characteristics to continue the breeding of new varieties. Two test sites with different soil characteristics (clay and sandy) are used, where plants from the following lines are being grown and their development and yields followed carefully Lines N1, N2 and N3: The core of the selection project. These are three Solaris lines that were selected in 2012 that have reached production between 400 and 500gr of seed per plant over two harvests and were chosen as next plants for the selection 2014 Between 280 and 300 plants per line were transplanted per field Lines A1, A2 and A3: Three lines originated with an intra-specific cross aimed at increasing oil production Lines Ca and Cb: Lines originated with an intra-specific cross between high-yield seed varieties Lines II1and II17: Lines originated with an INTER-specific cross and colchicine treatment. Their phenotype has been evaluated under field conditions Line G1: Tobacco from Plantechno’s germoplasm, characterized by extremely large capsules. Their phenotype has been evaluated under field conditions Line PLT103: A tobacco variety originally used in the crosses that were undertaken in the generation of the Solaris variety. Grown for comparison with the different lines grown this year (positive control) Line O1: Early variant of Solaris obtained in 2007. Grown for comparison with the different lines grown this year and original lines (second positive control) Lines PLTA4, PLTA56, PLTA60, PLTA61, PLTA65 and PLTA88: Germoplasm lines grown to evaluate their phenotype under field conditions. Photographic evidence from past years suggests high seed production

Production results selection lines 2013 1° Harvest 2° Harvest Total Seed gr. Line n. capsules Seed gr. Line n. capsules Seed gr. SN3P38 1143 147.5 SN3P38 1212 308 455.5 SN3O42 1187 172.5 SN3O42 1345 275 447.5 PN1S25 1059 229 872 176 405 PN1S25 SN3S38 972 122 SN3S38 1016 206 328 SN1D44 815 128.9 SN1D44 937 135 263.9

SN3P38 1° 2° SN3O42 1° 2°

PN1S25 1° SN3S38 2° 1° SN1D44 2°

The results in USA with 2013 Solaris Field Site 1 Henry County, VA (Mountain Valley Organics) Field Site 2 Callands, VA (Briar View Farm) Field Site 3 Plankinton, SD Seed Yield 6K = 682kg/acre 12K= 714kg/acre 24K= 861kg/acre

SOUTH AFRICA 2013-14

MARBLE HALL (LIMPOPO REGION) Farm: “Terblanche Boerdery” of Jannie Terblanche Farm: “Nyawa Boerdery” of Peter Kok Transplantation: (30 – 09 – 2013) 1° Harvesting: (02 – 02 – 2014) SEED PRODUCTION 1° HARVEST: 3,8 – 4,5 TON/ha

BRASIL 2013 – 2014 RIO GRANDE du SOL MINAS GERAIS

Rio Pardo Uberlandia Mocambigno

In the states of Minas Gerais and Rio Grande, 3 hectares of Solaris were cultivated on 3 separate sites The combination of skilled farming and Sunchem’s technical expertise resulted in a increase of more than 50% in productivity year over year.

EGYPT In the period between 2006 and 2011 Sunchem started a fruitful collaboration with the University of Cairo and the Egyptian Ministry of Agriculture. Cultivations were made in the Giza and El- Bustan regions, with the University of Cairo involved in studying the different characteristics of Solaris Based on favorable climate conditions and with drop fed irrigation 5 harvests of 3 tons per hectare were reached, for the first time exceeding a total of 10 tons and showing the continuous harvesting potential Unfortunately, after the Arab spring of 2012 a large part of this important work has stalled, nevertheless the accumulated technical data remain a reference Sunchem is still working with The University in the context of an international EU project on biofuels

NAMIBIA In collaboration with the Namibian government and related to the electricity constrains and need for labor in the country an initiative was launched to construct a 5 MW biogas installation for which Solaris will be the prime feedstock With 60 to 80 tons of fresh biomass per hectare per harvest Solaris delivers a solid feedstock alternative, given high sugar and oil content gas production yields are over 190 m3 /ton Trials to date show similar production volume of around 3 tons of seed per harvest with a minimum of 3 harvests year

BULGARIA 2013 In Bulgaria Sunchem cultivated 20 hectares of Solaris on 3 different sites, 2 harvests with an average of 3 tons per hectare resulted Results of the 2013 trial were presented at the AGRO-CONFERENCE START TRANSNATIONAL CONFERENCE FOR SME BUSINESS SUPPORT SERVICES IN THE ANIMAL BREEDING AND HORTICULTURE SECTORS 14 November 2013, Sheraton Sofia Hotel Balkan, Sofia, Bulgaria

specific team to follow-up on the Sunchem Holding objectives Sunchem Holding Team Massimo Ghilardi (President) Dr. Sergio Tommasini (Managing Director) Dr. Michael Knap (Strategy Committee) The operational team: Nicola Fogher (Agro Technician) Dr. Francesco Di Lucia (Agronomist) Dr. Massimo Zuin (Agronomist) Prof. Milvio Avogadro (Engineering and Process) D.ssa Serena Reggi, PhD (Genetics) Dr. Stefano Gattolin, PhD (Genetics) Dr. Kiril Perfanov (Genetics) D.ssa Nicoletta di Norscia, PhD Student (bio-energy expert) Eng. Andrea Vaccaro (environment) Dr. Mauro Finguerra (international tax) Dr. Pietro Busi (financial management) Massimo Mela (accountanting) Avv. Paolo Cecchi (International law) D.ssa Valentina Predazzi – SIB (Patent) Every partner company around the world has a specific team to follow-up on the Sunchem Holding objectives

Sunchem Network Sunchem USA – Tyton (Partner Tyton Bioscience Corporation) Tyton BioSciences Corp. is located at the Dan River Business Development Center on Ringgold Industrial Park West, off Highway 729 (Kentuck Road) in Pittsylvania Country. Point of Contact: Dr. Peter Majeranowski ( pmajeranowski@tytonbio.com ), Dr. Iulian Bobe, PhD ( ibobe@tytonbio.com ) *** *** *** Sunchem Terasol Oleos Ltda (Partner Terasol LLC and Argos Oil BV) Terasol is located in Rua Prof. Joao Mendes Franca 155, Sala 07 Bairro Morumbi, San Paulo Brazil Point of Contact: Dr. Henrique Hubrig hubrig@terasolenergy.com), Dr. Carlos Claro (carlose.claro@gmail.com) Sunchem South Africa Ltd (Partner AtlasInvest N.V.) Point of Contact: Dr. Michael Knap (mk@atlasinvest.eu) Eng. Joost Van Lier (joost.van.lier@blueworldcarbon.com) Sunchem Alpha Namibia Ltd (partner Otjozondjupa Holdings Ltd) Otjozondjupa has located in Windhoek, Namibia. Point of contact: Dr. Zedekias Gowaseb (agab@cheetahcement.na) Sunchem Bulgaria (Partner Tae Ltd) Point of contact: Dr. Svetlin Stoev (enertab@gmail.com)

In addition to the countries were Sunchem conducted trials, starting in 2012 working relationships have been developed with many organizations interested in conducting agricultural trials of Solaris, discussions on further development are ongoing in ARGENTINA ECUADOR VENEZUELA PERU NICARAGUA URUGUAY SPAIN MACEDONIA ALBANIA TURKEY GHANA ANGOLA ZAMBIA ZIMBABWE MOZAMBIQUE

A project for agro-energy innovation Through innovation challenging new technological frontiers for a new vision on agriculture and energy