Developer of Enabling stronger, lighter, less expensive nanocomposites 1 Investor Presentation 2008 Forward Looking Statement Certain statements included in this presentation may constitute forward-looking statements. These statements reflect what NaturalNano anticipates, expects or believes may happen in the future. NaturalNano's actual results could differ materially from the outcome or circumstance expressed or implied by such forward looking statements as a result of a variety of factors including, but not limited to: NaturalNano's ability to develop its technologies; the approval of NaturalNano's patent applications; the successful implementation of NaturalNano's research and development programs; the ability of NaturalNano to demonstrate the effectiveness of its technology; the acceptance by the market of NaturalNano's technology and products incorporating such technology; the ability of NaturalNano to effectively negotiate and enter into contracts o ther companies to l i cens e Natural Nano's technol ogy ; competition; the ability of NaturalNano to raise capital to fund its operating and research and development activities until it generates revenues sufficient to do so; and the timing of projects and trends in future operating performance, as well as other factors. The forward-looking statements contained herein are made only as of the date of this presentation, and NaturalNano undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. 2 “We believe nanotechnology could be the next growth innovation, similar in importance to information technology over the past 50 years.” Merrill Lynch Our Halloysite Nanotube (HNTTM) technology has applications today! 3 Significant Market Opportunity National Science Foundation forecasts $1 trillion worth of nanotechnology-enabled products on the market by 2015 $1.4 billion Federal Research and Development Investment in 2008 2005 2010 2015 $273 Million $740 Million $3.8 Billion 4 Source: The Fredonia Group, “Nanomaterials Demand in Composites, 2010”, © 2006 NaturalNano Advantage: Stronger, Lighter, Less Expensive Game Changing Innovative Traditional CONVENTIONAL COMPOSITE High strength Brittle Lower weight METAL ALLOYS High strength High weight 5 NANOCOMPOSITE High strength Not Brittle Lowest weight Case Study: Commercialization Application in Aerospace Composite materials are revolutionizing the aerospace industry 50% Advantages of composite material Reduces costs by an estimated 20 percent Provides higher static strength, damage tolerance, corrosion resistance Allows for higher pressurization in the passenger cabin, increasing the ability to regulate temperature, humidity and ventilation Provides an estimated fuel cost savings of more than 20,000 gallons a year Since 2004, Boeing has placed composite orders estimated at more than $6 billion 6 Source: Design News, Sept. 2007 edition / Boeing The NaturalNano Story Filled HNTTM Product Filled HNTTM demonstrated JDA $3.25 MM capital raise PleximerTM development initiated $4.2 MM capital raise NNAN.OTC 7 PleximerTM Commercialized JDA Management Team Dr. Cathy Fleischer President, Chief Technology Officer Dr. Bob Daly Polymer Research Director Dr. Douglas Kelley Chief Engineer • • • • • • • Led 35 person team at Eastman Kodak that produced over 200 patents in five years Over 20 years experience in nanotechnology and polymer science B.S. Bioengineering, U. of Pennsylvania M.A., Chemical Engineering, MIT Ph.D., Polymer Science, U. of Connecticut Kent Tapper Chief Financial Officer • • • • 10+ years experience in financial reporting Former CIO/CFO of publicly traded CareGuide, Inc. Extensive financial management experience, including development stage companies B.S., Electrical Engineering, Purdue University 8 • • • • 30+ years experience in polymer science and nanomaterials Holds 16 U.S. patents, 17 publications Former unit director of Global Manufacturing Technology for Kodak B.A. Chemistry, U. of Kansas Ph.D., Polymer Science, U. of Arizona Michael Duffy Director of Operations • • • • Dr. Aaron Wagner Director of Research and Development • • • • 20+ years of experience in R&D, Production and Sales. Experience building and selling material science companies. B.S., Chemical Engineering and Mathematics, Clarkson University 25+ years experience in nanotechnology Holds 5 patents, 7 publications Former ESTAR™ Process Group head for Kodak M.A., Aerospace, Mechanical Engineering, Cornell University Ph.D., Chemical Engineering, University of Rochester • • • 10+ years experience in material science and nanotechnology Former senior research engineer for Sud Chemie, Inc. M.A., Business Administration, Simon School of Management, University of Rochester Ph.D., Chemical Engineering, U. of Houston Key Scientific Advisors Prof. Emmanuel Giannelis Cornell University, Director of MSE David Arthur Co-Founder, Chasm • • • Internationally recognized as a pioneer and expert in polymer nanocomposites Author or co-author of over 135 research papers and nine patents • • Dr. Robert Corkery Director, Ytkemiska Institute • • • Globally recognized as a physical chemistry and materials science expert Served as a director for Proctor & Gamble Provides critical expertise in HNT characterization, surface treatment, and elution 9 25 years experience commercializing products using advanced materials. CEO of SouthWest NanoTechnologies, Inc., a manufacturer of single wall carbon nanotubes (CNT) Former COO of Eikos, Inc. an early stage CNT company Dr. Gary Beall Texas State U, San Marcos, Director Nanophase Research Center John Hickman President, Plastech Consulting • • • • Over 20 years experience in development and commercialization of advanced nanomaterial products Holds 42 patents, and over 90 publications Founder and former VP of Nanocor, one of the early nanoclay companies • Founder, President of PCI, an engineering firm providing solutions to the plastics industry 34 years of experience in the plastics industry in engineering, management, and nanocomposites Product Commercialization Process Scientific Discovery Complete lab scale facilities Research & Testing Pilot capabilities Product/Manufacturing Validation Commercialization Corporate headquarters, brownfield redevelopment, multiple tax benefits Lab facilities laboratory 10 Current Costly Process Multi-step Nanoclay Process Nanoclay Treatment Reactor 11 Polymer Synthesis Reactor Expensive Complex system Quality challenges Extruder #1 Final Extruder Non-standard equipment necessary Limited compatibility Industry has struggled to achieve proper dispersion for 10+ years NaturalNano Simplified Process Nanoclay Treatment Reactor Polymer Synthesis Reactor Extruder #1 Final Extruder Stronger + Lighter Less Expensive 12 Sporting Commercialization Model With Supply Chain Partners Equipment Electronics Wire & Cable Market Applications nanotubes Product Commercialization Polymers Market Applications Automotive Medical Office Furniture 13 Pleximer - Chair back example Stronger, Lighter, Less Expensive Original Chair back Nylon with 17% glass fiber 14 16 New improved Chair back Nylon with 2% HNT™ Stronger Better performance under fatigue No whitening Longer lifetime Increased flexibility and toughness Lighter 15% lighter - due to filler reduction from 17% glass fiber to 2% HNT Less expensive Improved appearance, resulting in less defects and lower scrap Easier processing - reduced cycle time, removes the need for expensive, specialized machinery Higher quality - superior surface finish Future Market Opportunities Industrial $460 billion Agriculture Chemical $135 billion Electronics $170 billion Personal Products $303 billion Automotive $510 billion Aerospace $320 billion 15 Cleaning Products $24 billion Construction $24 billion IP Portfolio - Selected patents Pending Patents Issued US Patents - Navy license 5492696 Controlled release microstructures Improved polymeric composite including nanoparticulate filler 5651976 Controlled release of active agents using inorganic tubules Polypropylene nanocomposite master batch composition and method of manufacture 5705191 Sustained delivery of active compounds from tubules with rational control Radiation absorptive composites and methods for production Cosmetic skincare applications employing mineral-derived tubules for controlled release A method for treating agricultural crops using materials associated with tubular carriers Radiation absorptive compositions comprising mineral-derived microtubules Halloysite nanotubes in coatings for adhesion, abrasion resistance, lubrication 16 6013206 Process for formation of high aspect ratio Lipid microtubules 6280759 Method of controlled release and controlled release microstructures 6913828 Process for formation of hollow metal microcylinders from lipids Product Development Roadmap 2008 – 2009 Accelerated Product Growth Mid-2006 – 2007 Pleximer™ Development Commercialize Pleximer™ Explore additional Pleximer™ applications Manufacturing scale testing Execute targeted JDAs End-market targeting 17 Build management / scientific board Leverage IP portfolio Explore additional JDAs HNT supply partnerships •Industry-leading nanocomposite developer •National exchange listing •Leverage public company currency Controlled release/filled tube product development Refine commercialization process • Achieve national reputation • Enter new markets • Continue to recruit top-tier scientists • Continue to build national market reach • Explore additional JDAs • Infrastructure investment • Bring Company story to Wall Street •Continued R&D in nanocomposite additives •Infrastructure investment •Build a following on the Street •Team in place •Leverage IP portfolio •Strong partnership base •HNT supply partnerships •Team in place •Leverage IP portfolio •Strong partnership base •HNT supply partnerships Multiple Products and Market Penetration 2010 – Our Future Stock At-A-Glance Ticker: OTC: NNAN FWB: N3N Market Cap: 18.43M 52-Week Range: $0.11 - $0.38 Average Daily Volume (3 mo): 114,455 Shares Outstanding: 123M Float: 51.12M Institutional Investors: Technology Innovations, LLC NanoVentures, LLC Courier Capital Corporation As of December 27, 2007 18 NaturalNano Highlights Pleximer commercial orders by 2Q08 Nanocomposite market potential is greater than $20 billion by 2020 Industry leading talent and advisors Key investments in infrastructure that puts NaturalNano ahead of the industry Joint Development Agreements (JDA) Extensive intellectual property (IP) portfolio Long term vision 19 – U.S. Government alone expected to invest $1.4 billion in the industry during FY08 - Collectively NaturalNano staff holds more than 100 patents and have published more than 300 scientific article – – – – – – – Onsite pilot capabilities State of the art labs and equipment Nanocomposites agreements executed - Cascade Engineering, NYCOA,… Customer validation of filled tubes - leading to new JDAs in 2008 More than 25 patents issued or pending Filled tubes New nanomaterials Cathy Fleischer President and CTO 585-267-4850 fleischer@naturalnano.com www.naturalnano.com 20