Pellet PlantWawasum Corporation

Wawasum

• 50/50 Partnership BNA & AZA

• Planned Location: BNA Reserve

• 67,000 tpa

Wood Pellet Market (Categories)

INDUSTRIAL RESIDENTIAL

Wood Pellet Market (Product/Spec)

INDUSTRIAL RESIDENTIAL

Wood Pellet Market (Logistics)

INDUSTRIAL RESIDENTIAL

Key Market Questions

1. What product will we produce? (Residential or Industrial)

2. Where is our target market?(N.America or Overseas)

3. How will we deliver the product to them?(Rail, Vessel, Truck – cost?)

Ontario Power Generation

Atikokan Generating StationProposed Conversion

Who Buys Wood Pellets?

INDUSTRIAL• European Union• United Kingdom

RESIDENTIAL• Italy

Great North BioEnergy (GNBE)

1. Wawasum Corp. (BNA/AZA)

2. Atikokan Renewable Fuels

3. Whitesand FN

Great North BioEnergy (GNBE)

• 3 Production Plants • Same Equipment• Same Process• Same Product

• 1 Marketing Front

Why GNBE? – European Demand

• Reliability of Supply

• Repairs & Maintenance

• Larger Volume

Wawasum Wood Allocation

113,000 m3/yr

25% Birch75% Poplar

10 year Commitment

(likely 20yrs)

Class 30 Engineering Study and Business Plan Development

Class 30 Engineering & Business Plan

• Analyses and design of plant• Equipment identification and layout• Process flow diagram• Budget Construction Opinion of Cost

(+ - 30%)• Simplified Project Schedule and GANTT

chart

Class 30 Engineering & Business Plan

RESULTS:• Cost to produce Industrial?• Cost to produce Premium?• Adjustments to Business Plan required?• Solid numbers to secure financing

WAWASUM – PELLET PLANT

NEXT STEPS:• Review results of the Class 30 Engineering• Review business plan & financials• Make any adjustments necessary• Secure off-take agreement• Secure financing for construction• Site preparation & begin construction

Pellet PlantWawasum Corporation