Pentland Bio-Energy Project Information Brief

Strictly Private and Confidential

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PENTLAND BIO-ENERGY PROJECT

INFORMATION BRIEF

February 2016

STRICTLY PRIVATE AND CONFIDENTIAL

Pentland Bio-Energy Project Information Brief

Strictly Private and Confidential

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INTRODUCTION

Renewable Developments Australia Pty Ltd (“RDA”) will develop a fully integrated biofuel facility using sugarcane as a primary feedstock near the township of Charters Towers in North Queensland, Australia (the “Project”). The Project will incorporate an integrated sugarcane growing and processing facility to deliver up to 190 million litres (“ML”) per annum of fuel grade ethanol to the domestic or international market. An offtake arrangement with a global distribution company is in discussion.

The Financial Advisory division of National Australia Bank Limited (“NAB”) has been appointed to act as financial advisor to RDA. NAB is assisting RDA to raise debt and equity capital to provide funds for the Project’s development.

PROJECT DESCRIPTION

The Project will involve the development of an approximate A$550 million capital cost sugarcane farming, processing and ethanol distillation facility which will incorporate modern processing and co-generation technology.

28,500 hectares of high yield agricultural land approximately 50km south-west of Charters Towers has been secured via a long term lease. On completion the facility is expected to produce up to 190ML of high grade bio-ethanol per annum (“p.a.”) from up to 2.1 million tonnes of sugarcane feedstock. Further expansion is possible post Stage 1 with the option for second generation ethanol production and additional contiguous land secured for future stages of development.

REVENUES AND PRODUCTS

Sugarcane crop is considered one of the highest yielding energy crops in terms of overall energy yield per hectare and is an extremely efficient converter of sunlight and water into energy. The Project will extract the full value of the sugarcane plant’s potential, with production to include:

Bio-Ethanol: Up to 190ML litres of high grade bio-ethanol from first generation processing. An offtake arrangement with a leading global ethanol distributor is in discussion.

Bagasse: Up to 700 kilotonnes (“kt”) of bagasse, a by-product of the diffusion and extraction process, will be primarily used to power a 16 megawatt (“MW“) co-generation plant located on site. Excess bagasse will be returned to the field as a crop mulch and fertiliser.

Large-scale Generation Certificates (“LGC”): 16MW of base load bagasse fired capacity will provide power to the Project and generate LGCs for sale.

INVESTMENT HIGHLIGHTS

Integration of Sugarcane Supply

Traditionally, ethanol processing facilities have relied on supply of sugarcane from third party producers. Supply has therefore been subject to competition from sugar mills and cost variations from growers seeking to maximise on-farm margins. The Project is fully

integrated with feedstock grown on-site and controlled within the project vehicle. Project sponsors will have full control and visibility over the cost and quality of feedstock, materially improving Project performance and economics as compared to traditional operations.

Cost Efficient

Utilisation of the latest sugarcane processing technologies accompanied with an integrated supply chain provides significant cost efficiencies when compared to other ethanol operations globally. With a large proportion of costs either fixed under long term agreements or within the Project sponsors control and not subject to market conditions, the Project offers a high degree of operational cost certainty. The Project will reside within the lowest operational cost quartile on the global ethanol production cost curve.

Proven Technology

Ethanol fuel has a long history of large scale industrial production. The Project will use known and proven technologies currently utilised in modern ethanol production facilities globally.

Water Security and Major Approvals near Finalisation

Water allocation is in the final stage of approval. Other Queensland state and federal government approvals necessary for the construction and operation of the Project are progressing with completion expected in late 2016.

Clear Logistics Chain to Market

The Project has a clear logistics path to market with access to the existing Flinders Highway for transport to Townsville Port. Negotiations are in final stage to secure storage facilities at Townsville with storage agreements expected to be received soon.

Opportunities for Future Growth

There is the potential to expand the facility to incorporate second generation ethanol production with licensing discussions well progressed with a recognised technology supplier. There is also the potential to substitute sugarcane for super sweet sorghum crop. Sorghum has caloric and bio-mass yields three times that of sugarcane providing additional production output at a similar operating cost.

GLOBAL ETHANOL MARKET

The Organisation for Economic Co-operation and Development’s (“OECD”) and the Food and Agriculture Organization’s (“FAO”) 2015-2024 Agriculture Outlook indicates:

Global ethanol consumption is projected to expand significantly with production increasing by approximately 18% from 114 billion litres p.a. in 2014 to 135 billion litres p.a. in 2024 to meet demand. Mandatory blending requirements throughout the Americas, Europe and Asia are expected to increase demand for and support consumption and trade levels globally.

Consumption growth is expected to support prices with prices expected to hold in the near term despite a reduction in feedstock prices and lower oil price forecasts.

PRODUCTION PROCESS

The Pentland production process is representative of proven ethanol production techniques. Sugarcane cultivation, crushing and ethanol production are well understood having been undertaken on an industrial scale for over sixty years in a number of countries including Australia, Brazil, the United States and Thailand.

The milling and ethanol production process of the Project is depicted in the following diagram.

Pentland Bio-Energy Project Information Brief

Strictly Private and Confidential

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The primary outputs from the crushing of sugarcane are mixed juice and bagasse. The mixed juice is filtered and the impurities are returned upstream as a soil conditioner to the farming operations via the irrigation system. The clarified juice is then heated to a sugar concentration of 22%, where yeast is added and after four hours yields a wort – similar to that of wine or beer production. The wort is then centrifuged to remove the yeast and the liquid is transferred to a distillation column where the water and ethanol are separated.

The bagasse is utilised as the primary feedstock into a 16MW co-generation plant that will be sufficient to cover the electricity and steam requirements of the Project.

The Project can operate year round, although at different levels of utilisation. The Project base case utilises sugarcane only and the first generation process will operate over 48 weeks with a four week shutdown and maintenance period.

Growing trials are currently underway on site and are yielding positive results (see below pictures).

INDICATIVE PROJECT TIMELINE

Final design work was undertaken via an early contractor involvement process with Engineering, Procurement and Construction (“EPC”) pricing expected to be finalised in late 2016.

Due diligence for potential financiers and investors is currently being finalised with an initial package proposed for release in late 2016.

Milestone Indicative Date

Completion of Final Design Late 2016

Due Diligence Late 2016

Target Financial Close 1H 2017

Construction Commencement 1H 2017

CONTACT DETAILS

Calvin Liu

Director

National Australia Bank

Phone: +61 2 8220 5633

Mobile: +61 467 801 767

Email: Calvin.Liu@nab.com.au

Bill Halmarick

Head of Financial Advisory

National Australia Bank

Phone: +61 2 9237 1996

Mobile +61 424 020 975

Email: Bill.R.Halmarick@nab.com.au Important Notice

The information contained herein has been prepared by Renewable Developments Australia Pty Limited and National Australia Bank Limited (the “Authors”) solely for the use of the recipient. It is confidential and for informational and discussion purposes only. The information does not constitute, in any jurisdiction, financial or investment advice, a recommendation, invitation, offer, or solicitation or inducement to buy or sell any financial instrument or product, or to engage in or refrain from engaging in any transaction. The recipient should obtain their own independent financial, legal or other professional advice in relation to the information contained herein. It is not the intention of the Authors to create legal relations on the basis of the information contained herein. This information does not purport to contain all relevant information. This document has been prepared without taking account the objectives, financial situation or needs of any recipient. Neither the Authors nor any of its respective affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein.

The information may include estimates and projections and involves elements of subjective judgment and analysis. Past performance is not indicative of future results. The information contained herein is of a general nature intended to provide a broad overview of the relevant market and is not illustrative of a proposed transaction. The Authors believe this information to be accurate, including the certain parts of this information which have been prepared from third party sources, but the Authors do not give any warranty of accuracy or completeness of the information. The information on which the statements are based has been gleaned from public sources or provided to us on a non-confidential basis. To the extent permitted by law, the Authors, their related bodies corporate, their officers, employees, agents and members (a) disclaim any and all liability relating to this information, including, without limitation, any express or implied representation for statements and conclusions contained in and omissions from this information; and (b) accept no liability (whether in negligence, tort, contract or otherwise) for any loss, damage, costs or expenses of any nature which may be suffered or incurred by any person relying on any information or statement contained herein or otherwise arising in connection with any such information or statement. No part of this document may be reproduced without the prior permission of the Authors. All material presented in this document, unless specifically indicated otherwise, is under copyright to the Authors.

The information contained herein may contain “forward looking statements.” These forward looking statements may be based upon certain assumptions. Actual events may differ from those assumed. All forward looking statements included are based on information available on the date hereof and neither the Authors nor their respective affiliates assume any duty to update any forward looking statement. Accordingly, there can be no assurance that any forward looking statements will materialise or will not be materially lower than those presented. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice.

Diffusing Line

Sugarcane Farming

Operation

Harvesting

Transport

Mixed Juice Bagasse

Filtration

Fertiliser

Impurities (organic solids) Wort

Sugar Concentrated and Yeast Added

First Generation

Ethanol

Distillation and dehydration

Electricity

Direct Feed into Co-Generation

Electricity utilised at each stage of the production

process

Mulch/ Fertiliser

Returned and Ploughed into the Field

Milling and Ethanol Production Process