Scott Hays President 970 744-0599 www.alpineshrimp.com scott@alpineshrimp.com The beautiful coastal setting where our shrimp our harvested…. Or where we like to believe it would come from: The Reality of where 95% of where out shrimp come from Close your eyes and imagine the sweetest tasting shrimp you have tasted. Now imagine driving 70 miles north of Denver, having it plucked straight from the water and you are home the same day. It is hard to imagine a salt water shrimp being raised at the base of the Rocky Mountains. Although it is hard to imagine, it isn’t nearly as hard to accomplish. Alpine Shrimp LLC will be using Recirculating Aquaculture Raceway Systems. Each raceway will be able to support an average of 4.3 harvest a year with an estimated total of 26,500 pounds of Pacific White Salt Water Shrimp a year. (5 raceways in the facility) Comparison 5 Tanks will hold a total of 100,000 gallons of water with an estimated 12% replacement. Multiple harvest and several years safely using the same water One individual pond will hold upwards of 1 million gallons with an estimated replacement of the same amount. One harvest per year, ponds must be drained completely after each harvest. Bio-security is in place No bio-security meaning anything can enter the pond Each tank stocked with approximately 12,000 Post Larvae Shrimp and an estimated 90% survival rate. In excess of 1 million Post Larvae with an expected survival rate of 20-30%. Known chemical and anti-biotics used No chemicals or anti-biotics Sold Fresh, not frozen Must be frozen in order to ship overseas. No quality control, slave labor used 70 Miles North of Denver just north of Wellington, Co: A sustainable, hormone, anti-biotic free, healthy source of protein. Sold fresh, not frozen as found in our grocery and specialty food stores. Taken from the water hours if not immediately from the time you arrive to pick up your order. Through the use of a technology known as Recirculating Aquaculture Systems (RAS), shrimp are raised in tanks or raceway systems. The water is recirculated through external bio filters where excess food and waste is filtered and the water is returned to the tanks. The water is a manufactured salt water, with the same make up as ocean water. Whereas the ocean contains .35 parts per thousand salt, we are able to raise these shrimp in conditions from .04 to .35 ppt. The optimum level is .18 ppt. The Shrimp will be raised in a Super Intensive system which will allow them to be harvested in approximately 90 days from the time we receive them. These are known as a 14 day Post Larvae stage. At the end of that 90 day period they will be harvested at a 21-26 count per pound average, meaning there will be 21-26 shrimp per pound. Why Colorado? Why High Country Shrimp? Our current shrimping grounds are highly polluted. The gulf area has an area in excess the size of Connecticut known as the “Dead Zone”. This has been caused by the numerous oil spills as well as the number of pollutants coming down the Mississippi River. The shrimp in the gulf migrate through the “Dead Zone”. What they do find to eat has been sitting in this area. Shrimp also take in nutrients through their shells. So anything that is in the water is being absorbed into their systems. Although the shrimpers are still able to fish certain areas, NOAA is having to reduce their catch annually. Why Colorado continued… 95% of the shrimp the United States consumes are imported from Asia, India and other countries. Shrimp Imports are a $60 BILLION industry/trade deficit in the U.S. Third only behind oil and natural gas. The quality of shrimp is substandard at best. In 2014 the FDA refused 214 shipments of shrimp from overseas. The report did not indicate if a “shipment” was a single container or per farm. However, a single container would be as few as 20 metric tons. In January and February 2015, the FDA has already refused more shipments of shrimp than in all of 2014. These shipments would have been refused as they would have been found to have trace pharmaceuticals in them that are illegal not only in the U.S. but internationally as well. These are just shipments that were tested. The FDA does not have the manpower to test all food shipments that come into the ports. (Approximately 85% of all food the United States consumes is imported. Not just shrimp and seafood). Alpine Shrimp has no intentions of trying to compete with the frozen imported shrimp market, or the frozen shrimp market which is available from the coastal states. The goals HCS will be pursuing is to provide an all natural fresh source of protein for the residence of the Front Range of Colorado, into the Ski Resorts. Never freeze our products. Slowly expand when it is economically possible To provide classes to veterans so they may return to their local home towns and introduce aquaculture and help feed their communities Strive to be a circular self sustaining aquaculture farm. In researching this goal we know we will be the first Recirculating Aquaculture Farm in the United States, if not globally to accomplish this. Introduce additional salt water fish to our business profile with expansion In similar facilities across the nation, fresh shrimp are retailing for $16.00-$18.00 per pound. They are being sold “From the Farm”. The average cost for the farmer will range from $3.00-$7.00 per pound depending on if they own their facility or are leasing or have current loans for their property. These farms have primarily been in the mid-west; Indiana, Iowa, Minnesota, Wisconsin. As well as Massachusetts, New Hampshire and are now in North Dakota and most recently New Mexico. Several other states are developing indoor RAS farms as well. Our facility will be located north of Wellington Colorado. There we have access to property where renewable resources have already been taken from the ground and are already available. They are by products of another industry. These two items are natural gas and water. Our facility will be utilizing the natural gas which is being separated from oil coming off of rigs which were established in the 1920’s. Since this resource is currently coming from the earth with the oil, we have been given permission to use the natural gas to heat our facility as well as the water in our tanks. The second resource is water. Approximately 10 years ago, a program was developed where water that was coming from these same oil wells was being purified. The water is tested weekly through the State of Colorado. Currently it is pure enough to be placed back into the aquifer. We have tested 2 small tanks of fish in this water with no additional external filtering. There was no mortality and their growth rate exceeded expectations. We are currently having the flesh of these fish tested to ensure there are no unexpected issues with chemicals or anything else that would harm humans. If there is we will find another source of water.(02/10/2015) Alpine Shrimp LLC will be running 5 in-ground Recirculating grow out tanks which will be approximately 10’x40’x8’. Each tank will have it’s own nursery tank for the Post Larvae which will be raised for 30 days before they are transferred to the larger grow out tanks. Since HCS will be raising their shrimp in a Super Intensive process, our tanks will be able to hold upwards of 12,000 shrimp. We anticipate a 10% mortality rate. Our goal will be to harvest our shrimp when they reach a weight of 22 grams. Shrimp harvested at 22 grams (+/-) equate to 21-26 shrimp per pound in retail sales. To put that into perspective; the pink pre-cooked shrimp you see in the fish cases are normally 50+ shrimp per pound. At this time with the information available to Alpine Shrimp LLC, our production cost should be right at $6.00 per pound. The going retail rate nation wide for fresh (not previously frozen) shrimp raised in this manner is $16.00$18.00 per pound. Although none of the shrimp farmers Alpine Shrimp LLC personally knows has the stock to sell wholesale (after their retail sales have taken place), HCS does feel that $12.00 per pound would be a fair price for any wholesale sales. RECAP Alpine Shrimp LLC A sustainable, fresh from the water, chemical/anti-biotic free salt water white pacific shrimp raised in Colorado. Environmentally friendly operation utilizing existing resources; meaning we have to use less resources than most agriculture operations. The shrimp Alpine Shrimp LLC will be raising is high in protein and other nutrients that our bodies need. Not having the pollutants that imported shrimp have in them it is an ideal product that will benefit our front range community. RECAP continued With growth we will be able to help with employment in the county. Our goal is to employ Veterans as well as parents with young children or school age children who need a flexible schedule. With growth the ability to add additional species of salt water finfish and other items is endless. The worry of mercury is significantly reduced if not completely removed; however the other nutrients our bodies need are still present. We will also be able to increase our employment power. The abilities for Alpine Shrimp LLC to be a new innovative business in Colorado are endless. Alpine Shrimp LLC is also poised to incorporate the technology, engineering, agriculture and other fields that are such strengths in our state. Our local universities such as Colorado State University and the University of Colorado would also be able to benefit through research in the respective colleges as well. Thank You… Alpine Shrimp LLC would like to thank you for your time today. If you have any further questions please feel free to contact: Scott Hays President/CEO, Alpine Shrimp LLC 970 744-0599 scott@alpineshrimp.com