“The Practical Solution to Advanced Biofuel Production” “… for decades, we have failed to act with the sense of urgency that this challenge requires…” “There is currently an opportunity to transform the production of biofuels in the U.S. in order to fulfill the mandates of EISA and capture a significant portion of this $70 Billion Dollar a year industry.” - Philip Herman, President and CTO of EPEC Its all in the Sugar… Sweet sorghum: sugar-rich crop can be grown throughout the U.S. efficiently converted to Ethanol 28 time more efficient than corn! Offers the U.S. biofuel industry the same potential as sugarcane did in Brazil… Sweet sorghum “is the only crop that can save the United States” -- Dr. Ismail Dweikat, University Nebraska-Lincoln Ethanol Producers Magazine Sweet Sorghum Attributes of Sweet Sorghum as an energy crop: Sugar-Rich Stalk for direct processing Net Energy Yield of 8:1 (28x Efficiency of Corn) Rapid Growth Rate: Maturity of 12-14’ in 4 months Multiple harvests per year in better climates Uses less water, less fertilizer than corn or sugarcane Drought tolerant Use as biofuel has no effect on food supplies Excellent ethanol yield per acre “Sweet sorghum will do for the U.S. biofuel industry, what sugarcane did for Brazil.” - Steve Vanechanos, Director, Sweet Sorghum Ethanol Ass’n, and Chairman of EPEC Biofuels Holdings, Inc. Introduction to EPEC Biofuels Holdings, Inc. Uncommonly Practical Solution Readily Achievable Production Significantly reduce the technology risk and capital required to achieve commercial scale ethanol production… Introduction to EPEC Biofuels Holdings, Inc. Patent pending business model Designed to optimize the benefits of sweet sorghum, and not corn EPEC… Public Support … Senator Daniel Inouye Senator Mary Landrieu and L.E.D. Senator Thad Cochran, Roger Wicker Governor Haley Barbour Mississippi Development Auth. Senator Marco Rubio Rep. Debbie Wasserman Schultz Florida Opportunity Fund: Florida Farming association for first demonstration facility for Fall 2011 The Opportunity: The Energy Independence and Security Act of 2007 (“EISA”) mandates annual minimum levels of advanced biofuel production as follows: RFS Year Gallons/Yr $ Value 2012 15.2 billion $ 30.4 billion 2015 20.5 billion $ 40.5 billion 2018 26.0 billion $ 52.0 billion 2022 36.0 billion $ 72.0 billion * Based on $2.00 per gallon The Opportunity: Corn-based ethanol capped (15 billion) Cellulosic ethanol production disappointing The EPA recently slashed cellulosic target from 250 million to under 25 million gallons to reflect the industry’s inabilities capabilities to produce cellulosic ethanol! Without a viable alternative, prospects for achieving EISA requirements are unlikely… How are we going to create alternative biofuels to fulfill the mandates of EISA ??? EPEC Has the Answer… A model for affordable, cost-effective ethanol production based on proven methods for converting sugar into ethanol. Goal is to be the low-cost ethanol producer! EPEC’s Model for Ethanol Production A distributed network, of low-cost factory-built, farm integrated, ethanol production facilities. Features of EPEC Business Model: Farm Integrated Production Distributed Network Business Model Low-Capital, Factory Built Modular Equipment Cooperative “Host Farmer” Program Facility Model Facility Capital Costs Large Scale Cellulosic Facilities: Capital Cost up to $10/gal Epec Farm Integrated Facilities: Capital Cost < $2/gal EPEC Business Model Distributed Network of Ethanol Production Units -- “EPU’s” Low-Cost Factory Built Modular Equipment Set up directly on the farm ! EPEC’s Management Board of Directors Steven Vanechanos – Chairman Philip Herman Dr. William Rooney Dr. Danielle Bellmer James R. Hyde Michael Dressner Executive Management Philip Herman – President & CTO Michael Dressner - COO Steven Relis - CFO Steven Heller – CLO Sam Salamay – Bus. Development Host FarmerTM Program Own & Operate EPU on Farmer’s Land Contract Farmer to Grow Sorghum Pay Harvesting and Royalty Fees Provide Valuable By-Products to Farmer “Ultimate Community Economic Development Opportunity” 5 Year Deployment Strategy: EPU Deployment 2011 2012 2013 2014 2015 2016 EPU’s Planned 0 3 12 30 55 100 Total Operating 0 3 15 45 100 200 5 Year Financial Summary Single Facility Model 1,000 acres of farmland for sorghum 875,000 gallons of ethanol per year* $2,000,000 in annual revenues Net Profit per EPU = $468,000 Pre-tax What We Are Seeking EPEC is seeking $5 Million Dollars and a financial sponsor to help finance and guide the company through development and expansion… Long Term Project Financing Opportunity Up to $100,000,000… Self Registration to be Public Entity… Summary EPEC is leading the revolution to ethanol production from Sweet Sorghum… The EPEC Solution Helping the U.S. Economy Empowering U.S. Farmers Creating Local Jobs Cleaner Environment Renewable Fuels Preserve Natural Resources National Security Energy Independence “… for decades, we have failed to act with the sense of urgency that this challenge requires…” EPEC Biofuels Holdings, Inc. 1776 N. Pine Island Road, Suite 316 Plantation, FL 33322 Tel: 866-878-3461 Fax: 954-332-1346 www.epecholdings.com