MBD Removing nitrogen with algae - a win win bioremediation strategy Low cost technology – delivering zero net discharge Commercial-In-Confidence MBD Vision: The deployment throughout Asia of MBD’s disruptive technology over a wide range of agricultural, mining and industrial applications

The information in this presentation has been prepared by MBD Limited (MBD) from a variety of internal sources, which MBD, to the best of its knowledge and belief, considers accurate. The information in this presentation is general information only and is not intended to provide investment information. The information is intended only to provide a brief overview of MBD’s core activities, strategies and processes. You should seek further information with respect to any proposed investment in MBD, including advice from a financial adviser or stockbroker if necessary. MBD excludes all liability arising out of any inaccuracies in this presentation, except where liability is made non-excludable by legislation. Calculated values are approximate values only and may be subject to change. Disclaimer Commercial-In-Confidence2 © MBD Limited 2015

MBD Energy Limited Access to world class expertise Through an exclusive relationship with James Cook University (“JCU”) – a recognised world leader in the field, giving MBD access to highly developed expertise in the identification and cultivation of algae. MBD has built a sophisticated Algae R&D Facility at JCU which builds on JCU’s 30 years of expertise in marine biology. Leveraging this knowledge and expertise MBD is using this algae knowledge and expertise to create a strong commercial business in: the provision of biological based remediation of industrial waste streams, and the high yield production of valuable algae-based by-products. Compelling business proposition MBD has developed agricultural-based processes and systems that use selected algae strains to clean and convert industrial waste waters into food, oil and energy products that can be sold for commercial profit. Through its R&D facility MBD is able to select and work with algae strains local to any site in the world, assess the viability of a project, establish a cost effective bioremediation service and generate profitable revenues from the sale of algae-based products. Strong project pipeline MBD has an industrial scale bioremediation projects at the Pacific Reef Prawn Farm in Queensland, We are developing a North Queensland Astaxanthin project and water bioremediation projects in China and Thailand. Team to deliver  We have assembled an experienced, integrated scientific, engineering, project development and construction team to deliver our projects. Knowledge, expertise and business model 3Commercial-In-Confidence © MBD Limited 2015

Shandong Ocard (China) Peace River Mine (B.C. Canada) Pacific Reef Fisheries Strategy – Strong Business Partners MBD Energy Limited Principal Research Partners: Cornerstone Investors: Key Project Partners: Tarong Power Station Loxley, Bangchak and Ratchaburi P.S, (Thailand) 4Commercial-In-Confidence © MBD Limited 2015

MBD has an ongoing exclusive relationship with James Cook University (JCU) in Queensland, a recognised world leader in both micro and macro algae research and development. MBD has exclusive access to world expert knowledge and experience in targeted algae strain selection and cultivation (based on optimised remediation and yield performance criteria, harvest and commercial production). Through a six year investment program MBD has built a Research and Development Facility and Pilot Plant Test Facility at the JCU Townsville campus giving it exclusive commercial value and strategic benefits arising from the operation of world-class centres of excellence in micro and macro algae R&D. MBD and JCU have agreed the basis of a 20 year master agreement. Extensive R&D background R&D Centre of Excellence 5Commercial-In-Confidence © MBD Limited 2015

 Is multi-cellular  Requires lower technology / system inputs  Produces bio-mass based commodities, largely for food and energy markets  Has efficient growth with higher density  Current seaweed aquaculture industry is valued at greater than A$8 billion pa  We are investigating the use of biomass in human food, animal feed and bio-fuel trials Two algae types - many species  Is single celled  Requires higher technology / system inputs  Produces oils, proteins, pigments and other higher-value products  Efficient growth but with lower density  Current market is focussed on high-value nutritional and chemical products  We are investigating the use of biomass in animal and aquatic meal trials Macro Algae Micro Algae 6Commercial-In-Confidence © MBD Limited 2015

 To date, the expansion of land-based aquaculture operations throughout Asia and Australia has been restricted by government regulation relating to waste-water discharge.  Deployment of MBD’s bioremediation technology will result in the discharge water returned to the Ocean having the same or lower levels of nitrogen and phosphorous as the intake water drawn from the Ocean.  MBD’s bioremediation technology can facilitate expansion of land-based aquaculture.  MBD technology is modular – Suited to expand to match production  Load based service charge, $30 - $40/kg Nitrogen. Costs offset by strong demand for algae products. Aquaculture Bioremediation Commercial-In-Confidence7 © MBD Limited 2015

Pacific Reef Fisheries Project Nutrients Nitrogen Phosphorus Current full scale module site Initial trial operation 8Commercial-In-Confidence © MBD Limited 2015

Commercial-In-Confidence Page 9 Bioremediation Model Key metrics used in MBD’s Business Plan and 2015 ModelTrial Performance Productivity70 tonnes per annum tonnes per annum Flow per day300 % exchangeUp to 700% exchange Bioremediation ratio (Algae / prawn) 1:10 (10%)>1:10 (10%) Zero Nett gain Model Assumptions All land required for algae bioremediation operations to be provided at no cost; All site infrastructure including sand filters, HRAP, water channels, pumps, road, drainage, electricity and telecommunications infrastructure of to be the responsibility of the prawn farm; 1:10 ratio for algae-farm to prawn-farm ratio - dependent upon the performance of bioremediation services; Algae growth-rate assumed at 20 g/m 2 /day on average; Algae farm design is to be incorporated into the prawn-farm design & operations for optimal use of gravitational flows in agricultural/irrigation channels; Assumes a 3% simple inflation rate over the algae product value. © MBD Limited 2015

Pacific Reef Project – How it works Prawn & Cobia water discharge Nitrogen level: 1.1mg/l – 1.4mg/l Ocean Intake Water Nitrogen level: 0.35mg/l – 0.5mg/l Sand Filter The sand filter performs two key roles: - The removal of suspended solids - The conversion of organic N to inorganic N. Sand Filter Conversion of Nitrogen (organic to inorganic N) Algae Ponds Nitrogen level: 0.15mg/l – 0.2mg/l Ocean Inlet Water is pumped into the prawn farm direct from the ocean inlet. Nitrogen levels vary based on cane farm and animal farming cycles. Prawn farming The water is used by the prawn farm to grow prawns and fin fish. Both increase the level of nitrogen in the water. Water Storage Waste water from the farm is then collected in a central storage dam. The water is high in organic and inorganic nitrogen. Algae Ponds The nitrogen rich water is fed continuously into high growth ponds where algae remediates the nitrogen and phosphorous to levels below the levels in the ocean intake. The cleaned water then flows to the ocean outlet via natural mangroves. 10Commercial-In-Confidence © MBD Limited 2015

Commercial-In-Confidence Page 11 Pacific Reef, N - remediation performance © MBD Limited 2015 Average N remediation: 185kg ha -1 month -1 Average P remediation: 15kg ha -1 month -1 Average N remediation: 185kg ha -1 month -1 Average P remediation: 15kg ha -1 month -1

Commercial-In-Confidence Page 12 N - remediation performance © MBD Limited 2015 Ratio of Prawn to Algae Ponds

Industry Impact – clean water, high quality products Productivity MBD has achieved productivity levels between tonnes of algae growth per hectare per annum depending on the farm cycle and the type of algae grown in the system. The Pacific Reef Fisheries Project has demonstrated that it can significantly reduce nutrient levels in its discharge water and this has provided it with a mechanism to expand. Remediation The key requirement is to take the nutrient level of the aquaculture farm’s discharge water to be below that of the intake level from the Ocean. 1 Ha of algae ponds will remediate between 5 and 10 Ha of prawn farm ponds. (i.e. 10% – 20% of the area) Products In addition to cleaning the waste water the algae produces a wide range of high value products. These include: -Biochar -Aosa and Aonori -Animal and Aquatic feeds Key facts and metrics Zero net Gain Government Environmental Regulations require nitrogen and phosphorous content levels of discharge water to be significantly reduced or eliminated before it can be returned to the waters of the Great Barrier Reef. This has resulted in no new farm permits being issued for the last 15 years. Pathway for Aquaculture Industry expansion MBD’s low cost bioremediation technology provides a cost effective pathway for the Aquaculture Industry in Australia and throughout Asia to expand. 13Commercial-In-Confidence © MBD Limited 2015

Integrated Concept 14Commercial-In-Confidence © MBD Limited 2015

15Commercial-In-Confidence © MBD Limited 2015 Ulva ohnoi inclusion in prawn feed Study design Juvenile Litopenaeus vannamei MBD U. ohnoi, 1%, 2% & 4% + control diet Feed duration 45 days Zootechnical (weight, survival, FCR, Protein Efficiency Ratio, Net Protein Utilisation ) Immunological (protein, free & total phenoloxidase activity, total haemocytes) Bacterial challenge (V. parahaemolyticus)

16Commercial-In-Confidence © MBD Limited 2015 Ulva ohnoi inclusion in prawn feed Results No difference in zootechnical parameters to control Significantly higher phenoloxidase (free & total) activity Significant higher survival to pathogen (V. parahaemolyticus)

Astaxanthin Project Value MBD grows and harvests the astaxanthin. The astaxanthin is a natural red pigment and is also a highly active antioxidant. The wholesale value of the Haematococcus algae ranges between US$200 and US$500/kg depending on pigment concentration. MBD’s experience over the last 12 months is that the astaxanthin yield has remained at the higher end of this range. Current markets Natural Astaxanthin is increasingly being used in the aquafeed, nutraceutical and functional food industry. The global aqua feed market was estimated at US$55Bn in 2012 with a compound annual growth rate of 12% through to The majority of the astaxanthin market uses synthetic pigment, produced by chemical companies e.g. BASF and DSM. The synthetic astaxanthin is mainly used as a colouring agent in aquaculture (mainly farmed salmon) and poultry but unlike natural astaxanthin is not approved for human consumption e.g. directly in supplements or food. Value and markets Aquafeed /Animal Feed The fastest growing sector in the world food economy is aquaculture. Natural astaxanthin is fed to farmed fish particularly Salmon. Food and Functional Food Rising consumer disposable income, growing health awareness and the trend towards natural and fortified ingredients is fuelling growth in the global demand for carotenoid, including astaxanthin. Dietary supplements With rising health care costs, the trend is towards disease prevention. Astaxanthin being a much more powerful anti-oxidant than other carotenoids and is more effective at neutralising free radicals and thus its reputation is growing in the market. Pharmaceutical, Cosmetics These are newer industries that are using astaxanthin for its health and colouring properties. GIA predict that astaxanthin demand will continue to grow with the demand from pharmaceutical research applications. 17Commercial-In-Confidence © MBD Limited 2015

The next 12 months will see progress on the following projects, each offering strong prospects to expand MBD’s technology: Thailand Major opportunity for MBD to apply our technology to the Thai Prawn Industry. Over the last 12 months the escalating problems with the prawn industry (production has declined from 600,000 tonnes per year in 2012 to less than 300,000 tonnes in 2014) see an urgent need for technology that can clean the water at low cost. Water quality and disease have resulted in a reduction is annual sales worth between AUD 4 – 5 billion dollars. The crisis deepened further with the announcement by the EU that they would ban importation of Thai prawns if the industry failed to address water and feed quality issues. MBD is in discussion with the 2 major Thai aquaculture companies and the Thai Department of Fisheries to scope out Thai based projects. China In China we have strong support from the Central Government – who following our successful demonstration project in Jinan sent their G20 delegation to MBD’s QLD site to review the technology first hand – they have since selected MBD as a preferred technology and are working closely with us on the expansion project in Hainan (aquaculture clean up) and mainland China (Jinan water recharge project). Cane Industry, QLD A further positive for MBD’s North Queensland Bioremediation projects is the recent Federal and Queensland Government allocations of $100m (each) of funding to accelerate protection projects for the Great Barrier Reef. MBD’s technology provides a direct fit with the requirement to clean up runoff waters. Whilst still early in the process, details of the fund will be released in the second half of 2015, this fund is a strong opportunity for MBD as we do not know of any competing technologies or projects in the region. R&D Support MBD received the news in May that the federal Government would fund the IMCRC. The AUD 40 million grant fund supports Industry’s commercialisation work with technology. MBD’s programs are nominated for AUD 7 million of these funds. This announcement continues the strong Federal Governments support of MBD. On June 5 our scientists won the UN (Aust) Water Award on world environment day based on the work associated with the reef clean up. MBD Energy Limited Wider development program 18Commercial-In-Confidence © MBD Limited 2015