1. Farmers Cooperative Conference November 18, 2008

2. North American Bison Cooperative History

3. 1993 formed in New Rockford, ND 1993 formed in New Rockford, ND 1993-2000 Sold a total of 16,000 Delivery Shares with requirement to deliver one bison for each share owned. 1993-2000 Sold a total of 16,000 Delivery Shares with requirement to deliver one bison for each share owned. 1994 built 12,000 sq. ft harvesting, processing and distribution plant in New Rockford, ND 1994 built 12,000 sq. ft harvesting, processing and distribution plant in New Rockford, ND Capacity: 10,000 head per yearCapacity: 10,000 head per year 2000-2003 did not pay members for animals delivered. Member received a deferred payment certificate. 2000-2003 did not pay members for animals delivered. Member received a deferred payment certificate.

4. 2002-Purchased New West Foods 2002-Purchased New West Foods 2003-Purchased Great Plains Game 2003-Purchased Great Plains Game 2004-Hired new management 2004-Hired new management 2005-Declared Chapter 11 2005-Declared Chapter 11 2006-Emerged from Chapter 11 2006-Emerged from Chapter 11 2007-Paid first patronage ($.10/lb) ever to membership who delivered animals 2007-Paid first patronage ($.10/lb) ever to membership who delivered animals 2008-Will pay higher patronage rate than 2007 2008-Will pay higher patronage rate than 2007 North American Bison Cooperative

5. TenderBisonProducts

7. North Dakota Natural Beef, LLC

8. 2005: October the company was formed by NABC 2005: October the company was formed by NABC 2005-06: Raised capital 2005-06: Raised capital 2006: Purchased John Morrell building in Fargo and received neighboring building as an equity contribution 2006: Purchased John Morrell building in Fargo and received neighboring building as an equity contribution 2007: 2007: April: Started sales effortApril: Started sales effort July: Started constructionJuly: Started construction

9. North Dakota Natural Beef, LLC 2008 2008 September: Occupied office portion of facilitySeptember: Occupied office portion of facility October: Started warehousing and distributionOctober: Started warehousing and distribution November-December: Add fabrication and further processingNovember-December: Add fabrication and further processing 2009 2009 Full occupancyFull occupancy New Rockford becomes solely a harvest facilityNew Rockford becomes solely a harvest facility

10. North Dakota Natural Beef, LLC Dakota Farms Brand Products

12. Why ? NABC/NDNB NABC/NDNB SynergySynergy Administration Administration Sales Sales Marketing Marketing Operations Operations Lower overhead for both companiesLower overhead for both companies Shared expenses Shared expenses Increased probability of success for NDNB Increased probability of success for NDNB Win-Win Win-Win

13. Key Personnel Dr. Ken Odde: North Dakota State University Dr. Ken Odde: North Dakota State University Lt Gov. Jack Dalrymple Lt Gov. Jack Dalrymple NABC Board and Membership NABC Board and Membership North Dakota State University Administration North Dakota State University Administration Dr. Chapman: PresidentDr. Chapman: President Dr. Coston: Vice PresidentDr. Coston: Vice President Rod Sather Rod Sather Rick Burgum Rick Burgum Farmers Union Farmers Union

14. Functionality 2 separate companies 2 separate companies NDNB has 2 NABC Board members as representativesNDNB has 2 NABC Board members as representatives Act as investors representatives Act as investors representatives NDSU Strategic Alliance NDSU Strategic Alliance Arms length by necessityArms length by necessity Key differentiation for NDNB in marketplaceKey differentiation for NDNB in marketplace Provides NDNB with resources only very large companies have access toProvides NDNB with resources only very large companies have access to

15. Knowledge What have we learned that is applicable to other businesses? What have we learned that is applicable to other businesses? Competition today is internationalCompetition today is international Continuing reduction of operating expenses while increasing quality and consistency a requirement to competeContinuing reduction of operating expenses while increasing quality and consistency a requirement to compete Leveraging assets provides opportunityLeveraging assets provides opportunity Competitors may be customers and vendorsCompetitors may be customers and vendors Scientific credibility of a program provided through NDSU is a critical differentiation for new market entrantScientific credibility of a program provided through NDSU is a critical differentiation for new market entrant

16. North Dakota Natural Beef, LLC North American Bison Cooperative