1. Feasibility Study Arron McLean Heath Pearce Kurtis Mackow Trevor McMorris Wade McLean

2. Operations Plan

3. Site Location

4. Site Plan

5. Cattle Flow Diagram Cattle leave / arrive via truck / trailer Cattle are weighed Cattle are sorted into pens according to weight Cattle are tagged Cattle Implanted with Growth Hormones Cattle sent to small pens Sick animals moved to hospital and sick pens Animals moved into general population Finished Cattle (1250 lbs) Animals with weights between 450 and 850 lbs.. fed backgrounding ration Animals with weight over 850 lbs.. will be fed finishing ration

6. Ethanol Production Process

7. OperatingExpenses

8. Capital Expenditures

9. Human Resource Plan

10. Human Resource Hierarchy

11. Wage & Salary Expense

12. Employee Benefits

13. Marketing Plan

14. Mission Statement Highway 32 Feeders is a community /government owned wheat-ethanol-feedlot operation that strives to produce high grade ethanol and superior quality finished cattle while providing a market for locally produced cattle and grains.

15. Ethanol Pricing Government Incentive $0.15 Provincial $0.15 Provincial $0.10 Federal $0.10 Federal

16. Cattle Pricing –Price determined by the Chicago Board of Trade and the Winnipeg Commodity Exchange –Average price of finished cattle = $0.82/pound –Ensure break even price to remain profitable forward contracted 30-60% of cattle

17. Sales Projections

18. Promotion Ethanol promotion will be very minimal due to the guaranteed market Initial advertising on the feedlot side is crucial- – packers must be aware of our new feedlot (marketing manager’s responsibility) Cattle buyers will be encouraged to tour feedlot Build a reputation of a consistently produced high quality product

19. Marketing Budget

20. Distribution Channels Ethanol Ethanol will be trucked to Regina where it will be purchased by Federated Co-op to be blended with gasoline. Cattle Cattle will be shipped to IBP Lakeside Packers in Brooks Alberta and XL Foods in Moose Jaw

21. SWOT Analysis

23. Financial Plan

24. Financing Budget

25. Projected Net Income

26. Projected Dividends Dividend Policy Pay out cash in excess of $2 Million after 2005 Pay out cash in excess of $2 Million after 2005

27. Break Even Analysis

31. Sensitivity Analysis

32. Conclusion By investing in Highway 32 Feeders you will be investing in a feasible business that: Receives a 24.9% return on its equity investment over 10 years Pays out dividends after 2007 Provides an additional market for investor produced commodities

33. Invest With Highway 32 Feeders!!