a breakthrough in clean energy… july 22, 2012footer text here1

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a breakthrough in clean energy…

July 22, 2012

Disclaimer

Elementa - Confidential

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Certain statements made in this presentation are forward-looking statements that involve risks and uncertainties. These forward-looking statements reflect the Company’s best judgment based on current information, and although we base these statements on circumstances that we believed to be reasonable when made, there can be no assurance that future events will not affect the accuracy of such forward-looking information. As such, the forward-looking statements are not guarantees of future performance, and actual results may vary materially from the results and expectations discussed herein. Any number of factors could cause Elementa’s actual results to differ materially from those anticipated in forward-looking statements including, without limitation: global and North American political decisions related to alternative energy; technological developments; competitive actions; foreign exchange rates and particularly the value of the Canadian dollar; plant operating performance; capital investments, project execution problems and the related effect on performance; substitute technologies; natural gas prices and usage; electricity prices in various jurisdictions; raw materials availability and prices; changes in environmental, tax and other laws; North American and global economic performance and political developments; and fluctuations in interest and lending rates.

Corporate Overview

October, 2013


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Future ElementaCommercial Demonstration PlantIn Sault Ste. Marie ON - SSM CDP. Converting 50,000 tonnes of MSW

into 9.5 MW ofClean Power.

Elementa – the right time


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Landfills are no longer acceptable and harm our environment. Elementa – no landfill, combustion free technology.

Clean Energy - we need enormous amounts of it in all forms. Elementa has the technology to efficiently create every energy product required globally. Climate Change - Technology needs to act fast – solve the biggest global challenge ever. Elementa technology is designed to substantially reduce GHG’s.

• No pollution• Reduce GHG’s

Eliminate Landfill

• Efficient Energy• Extensive Energy

Products

Clean Energy

• Reduce methane from landfills

• Provide low-carbon energy

Climate Change

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Elementa at a glance

Elementa Group Inc. Public non reporting Ontario corporation Approximately 150 shareholders Incorporated in 2003 Head Office Niagara-on-the-Lake, Ontario

Commercialization Journey

Focus of company has been on perfecting the technology not promoting

Sault Ste Marie Ontario Pilot Plant Waste Agreement signed with City of Sault Ste Marie Power Purchase Agreement with Ontario government Final stages of Certificate of Approval from Ministry of Environment

International Application

Elementa’s platform technology will play a key role in providing economically viable clean energy sources for global economies

Advanced economy countries Emerging economies 3rd world countries

Elementa at a glance.


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Commercial Value Proposition

Eliminate Landfill.

Elementa’s technology is a solution for three of the world’s most pressing environmental problems:

Waste management Generating cost competitive sustainable clean energy Climate change

NO Incineration

Elementa’s process is based on a proven chemistry - Steam Reformation:

New technology applied to old well-known chemistry Modular and scalable Robust off the shelf systems & equipment Surpasses stringent emission standards

Proven & Patented.

Elementa has:

A proprietary & patented process Demonstrated experience and validated success Global clients and world class partner relationships, with a rapidly growing list of potential projects based on Elementa’s results to date

Competes with conventional power generation.

On a life cycle basis Elementa’s technology cost is 3.3 cents/KW with no gov’t funds – comparable to conventional power generation

Elementa Value Proposition


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7

Capital raise

Recent media articles on Elementa:

http://www.battelle.org/media/press-releases/battelle-wins-two-energy-awards http://www.waste-management-world.com/articles/2013/11/steam-reformation-waste-to-energy-technology-wins-u-s-defense-award.html

http://www.saultstar.com/2013/11/05/kudos-for-elementa

http://www.enertechcapital.com/management.asp

http://www.internationalresourcejournal.com/resource_in_action/dec_13/elementa_group.html

Elementa in the News


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http://www.battelle.org/media/press-releases/battelle-wins-two-energy-awards

http://www.battelle.org/media/press-releases/battelle-wins-two-energy-awards

http://www.waste-management-world.com/articles/2013/11/steam-reformation-waste-to-energy-technology-wins-u-s-defense-award.html



http://www.saultstar.com/2013/11/05/kudos-for-elementa

http://www.enertechcapital.com/management.asp



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Capital raise

Sources of capital• Sale of common shares $15.0m• Notes payable note 1 $1.7m• Convertible debentures note 2 $.7m

Total $17.4mAccrued interest on debt $.3m

$17.7m

Common shares issued and outstanding 47m

Common share warrants and options outstanding 5.4m

Other share classes issued none

Note 1 – $1.1m is with the SSM CDP equity investor, $.6m is with private equity firm that has a technology that could be a potential JV partner with Elementa

Note 2 – 3 debentures of which 50% of total is held by members of Elementa’s B of D

A look at Elementa Group Inc. - Existing Capitalization


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Capital raise

Current capital raise of $10M of which $3m are Flow Through Shares

Planned use of funds• Cash reserve for corporate burn $2.2M• SSM CDP related payables $.7M• Corporate payables $1.1M• Pay down corporate debt $2.0M• Investment in SSM CDP $4.0M

Close Q1 2014

Next capital raise Q1 2015 of $15M, target share price $5.00 3m shares issued for a dilution of 5%

Corporate Capital Raise Approach


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Raise capital as needed, under favourable conditions to minimize dilution and increase share value

2013 2014 2015 2016 $-

$3.00

$6.00

$9.00

$12.00

$15.00

$18.00

Elementa - increasing shareholder value

Sign P

PA

SSM CDP

Const

ruct

ion

SSM CDP

stea

dy

stat

e2nd p

lant

const

ruct

ion

Q1 ‘14 $10m raise, price TBD, estimated dilution of 11%

Q4 ‘14 $15m raise target @$5.00/share, dilution of 5%

Q1 ‘16 $30m raise target @ $10.00/share, dilution of 5%

2017 $425m raise @$17.00 /share, Q4 ‘13

Corporate Share Value Increase: to 2017 major equity market capital raise based on major milestones


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Phase 1First 8 plants

Phase 2Next 7 plants

Phase 3Full business

model implementatio

n

Business Model Rollout Plan


• Elementa has minority ownership position• under contract Elementa provides certain services during construction and ongoing operational management once commissioned• Elementa earns performance bonuses and dividends

• Elementa less involvement at plant level compared Phase 1 • Elementa creates JV entities in 3-4 selected markets with market partners for development of plants within market territory owned by the JV entity• market partners have engineering, gov’t relations, BD, and financial capabilities • Elementa earns license and engineering fees from plants, a per plant market fee from JV entity partner and royalty and/or share of plant profits via the JV entity • Elementa little involvement at plant level • Elementa creates other JV entities in remaining markets with market partners for development of plants within market territory owned by the JV entity• market partners have engineering, gov’t relations, BD, and financial capabilities • Elementa earns license and engineering fees from plants, an up front market fee from JV entity partner and royalty and/or share of plant profits via the JV entity

ViaBusiness model is market JV partnerships where Elementa will

earn technology licensing from the plants and share of profits along with JV partner.

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2014 2015 2016 2017 2018 2019 2020 20210123456789

10

50 k tonne

100 k tonne

300 k tonne

Total

# of

Fac

ilitie

s

Phase 1 - 8 plants

Total Capital $630M

Phase 2 – 7 plants

Total Capital $950M

Phase 3 – future plantsTotal Capital

$2,130M

Elementa Plant Rollout Plan - MSW to power


Footer text here13

July 22, 2012

2013 2014 2015 2016 2017 2018 2019 2020 Revenue (note 1) Engineering fees 0 2.0 6.0 16.0 0 0 0 0 License, EP fees 0 0 0 0 48.8 74.0 116.0 171.0 Technology development fees 4.0 9.5 17.5 17.0 18.0 20.0 25.0 Total Revenues 0 6.0 15.5 33.5 65.8 92.0 136.0 196.0 Operating Expenses Engineering 1.4 1.8 3.3 4.9 6.9 8.7 10.5 12.3 Bus.Dev. .2 1.0 1.9 3.0 4.8 6.1 7.1 8.3 G&A 1.2 3.0 4.6 6.3 8.4 10.4 12.1 14.0 R&D plants 0 .2 1.3 1.9 2.4 3.0 3.0 3.0 Total Expenses 2.8 6.0 11.1 16.1 22.5 28.2 32.7 37.6 EBITDA (2.8) 0 4.4 17.4 43.3 63.8 103.3 158.4 Depreciation 0 .5 2.0 2.6 2.6 3.7 4.5 5.1 Profit before tax (2.8) (.5) 2.4 14.8 40.7 60.1 98.8 153.3 Taxes 0 0 0 0

2.5 16.0 26.2 40.6 Net profit (2.8) (.5) 2.4 14.8 38.2 44.1 72.6 112.7

Stabilization period per share value using average $20.51 $33.70 $52.31of 5 publically traded waste management companies Oct 2013 earnings per share multiple

Note 1 – Elementa will not earn revenue from royalty and/or dividends from plant operating results because these revenues fall outside the projection period, i.e. they start in 2021.

Elementa Group Inc. projected Income StatementIn millions of $’s except for per share value


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ShareValue

Increase

2018 2020 2022 2024 2026 2028 2030

$100.00

$75.00

$50.00

$40.00

$30.00

$25.00

$20.00

$17.00

Increase from fossil fuels to all outputs

Increase from Waste to Synthetic Green Fuels &

Chemicals

Increase from Waste to Hydrogen

Increase from MSW to Power

N EW MARKETS

2003

2008

2013

2017

$-

$5.00

$10.00

$15.00

$20.00

Market

capital

raise

Today

Value increases with Technology Platform

& commercialization of new products.

Projected Increase in Share Value: to 2017 major equity market capital raise and Beyond


See Platform Technology Slide 15

IPO Highest Apr 1 13 Oct 3 13

0

5

10

15

20

25

30

35

40

Amyris

Gevo

KiOR

So-lazyme

Average

Industrial synthetic biology platform to convert plant sugars into flexible building blocks that can be used in a wide range of products.

Using a combination of synthetic biology and chemistry produces

isobutanol, a platform chemical for the liquid fuels andpetrochemical marketProprietary technology platform to convert biomassinto renewable crude oil .

Feedstock flexible platform using standard industrial

fermentation equipment to efficiently scale and accelerate

microalgae's natural oil production time to just a few days.

All 4 bio-energy company have a technology to convert a singe feedstock grouping - biomass to produce one output group - petroleum based products, fuels and chemicals

Share price

Elementa converts at least 4 feedstock grouping into 5 output grouping for a maximum of 20 input/output

combinations. The average market value of one input/output combination at $4.23 per share or enterprise value of $300M, therefore Elementa’s share price

should be $111 (Platform Technology Business).

Bio Energy Companies:Post IPO performance and implications for Elementa

Market value stabilization


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See Platform Technology Slide 17

Technology Overview – process schematic


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Elementa’s Patented

Technology

U.S. PatentNo. 7,794,689

“Method for Steam

Reforming Carbonaceous

Material”

A process technology used to convert waste to clean syngas. No combustion

occurs and H2O is used to create

clean energy from waste.

MSW

Power Hydrogen

Green Fuels &

Chemicals

WasteMSW & Bio-

Solids

Biomass

Fossil Fuels

CLEAN ENERGY MATRIX

COMBUSTION FREE

No Oxygen

Indirect HeatingH2

O

Syngas

Cleaned

Syngas

Cleaned

Syngas

CARBONACEOUS MATERIAL

FEEDSTOCK

17 Elementa - Confidential

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Platform Technology: Projected economics of converting MSW to 6 energy products*

0%5%

10%15%20%25%30%35%40%45%50%

Return on Capex

Power

Hydro

gen

Methan

ol

Syngas

Diese

l

Ethan

ol

Bio Fuels

Elementa’s Platform Technology:investment grade potential

beyond MSW to Power – a unique

business potential.

Elementa’s Business ModelUse the Technology Platform asa driver for establishing highly

profitable business opportunities. Opportunities are based upon market and

geographical conditions. The chart assumes best global

economic conditions.

*300,000 tonne of MSW per year plants at selected markets

Projected Elementa Share Value Increase using established metrics

2014 2015 2016 2017Average value using 5 metrics;1. 9.9% cap rate of cash flow $.01 $.20 $.56 $1.302. Multiple of Net Income per share (note 1) $.00 $.38 $1.71 $4.433. Discounted NPV of future cash flow – 8% $3.59 $3.78 $3.02 $3.274. NBV plus 8 multiple of Net Income (note 1) $.05 $.37 $2.07 $3.34Per share value $3.65 $4.73 $7.36 $12.34Elementa enterprise value $204m $278m $595m $997m

Enterprise value increase from additionalFeedstock output combinations ( 67% of current market valuation)5. Biomass to electricity $200m $200m $200m6. MSW to hydrogen $200m $200m7. MSW to diesel $200m

$200m $400m $600mTotal enterprise value $204m $478m $995m $1597m

Number of shares outstanding 55.8m 58.7m 80.9m 80.9mPer share value $3.66 $8.14 $12.30 $19.74

Projected capital raise share value $5.00 $10.00 $17.00

Inputted option value of future earnings $1.34 $1.86 $4.70

Note 1 – Oct 10 2013 listing information of the average of 6 publically traded waste management companies stock symbols as follows WM, RSG, CLH, WCN, SRCL, DAR


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Elementa’s First Plant - Sault Ste Marie Commercial Demonstration Plant (SSM CDP)


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• 20 year waste agreement with city signed• site selected and offer to purchase in place• Certificate of Approval in final stages •20 year PPA with government of Ontario• Investor secured• indicative debt term sheet from Cat Finance• SDTC (Federal) grant application for $9m at board approval stage• CCEMC (Alberta) grant application submitted for $10m• IDF (Ontario) grant application to be submitted in October 12 for $5.5m

Key Metrics

• Capital cost $54m• Tonnes of waste processed 50,000• MW produced 9.5• Average annual revenue $13.5m• Average annual EBITA $4m

Land and building $2,990,000Engineering $8,409,000Waste handling equipment $2,637,000Elementa process and gas cleaning equipment $9,859,000Power generation equipment $15,012,000Misc equipment $4,342,000Contingency (10%) $4,325,000EPCM (15%) $6,487,000Total $54,061,000

Governments grants and statusSDTC - past stage 2 at approval stage $8,929,000IDF – preparation for submission in Oct $5,500,000CRIBE – previously approved for $900k $1,850,000IRAP – approved previous submissions $1,250,000NOHFC – 50% approved $1,000,000

Total $18,529,000Government loans – NOHFC $1,000,000Total government funds $19,529,000Net Capital Cost to be financed $34,532,000

Projected SSM CDP Capital Costs & Gov’t Funding

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Net capital cost to be financed $34,532,000

Capital lease on front end equipment $2,000,000Debt on land, building $2,000,000Toromont owning power island $15,012,000

$19,012,000Remaining capital cost to be financed $15,520,000

Elementa equity $5,000,000

Debt to be provided $10,520,000

Cat Finance $5,270,000EDC $5,270,000

Projected SSM CDP Financing


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20 yr annual averageRevenues

Electrical $7,412,000

Tipping fee $4,952,000

Other $1,114,000Total revenue$13,478,000Operating costs

Labour $3,290,000

Consumables $4,311,000

Maintenance and other $1,623,000Total operating cost $9,224,000EBITDA $4,254,000Cash Flow $2,021,000

Capex$54,061,000Government funding$19,529,000Net Capex$34,532,000Equity $5,000,000Debt and capital lease$14,520,000

Key performance indicators

EBITDA Return net capex12%

Equity cash flow before principal IRR 10%

Debt interest & term 8%, 10 years

DSCR in lowest yr 1.3 in 2024

Debt % of non leased capex 30%

Avg electricity production 9.5mw

Waste processed/yr 56,160 MT

Projected SSM CDP Financials


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20 yr annual average

(000’s $)Revenues

Electrical $55,786

Tipping fee $30,263Other $ 3,317

Total revenue $89,366Operating costs

Labour $9,870Consumables $32,233Maintenance and other $16,430

Total operating cost $48,533EBITDA $40,833Cash Flow $22,379

Capex $198,045Equity $49,511Debt and capital lease $148,534

Key performance indicators

EBITDA Return net capex18.9%

Investor cash flow IRR36.2%

Debt interest & term 7%, 15 years

DSCR in lowest yr 2.5 in 2029

Debt % of non leased capex 75%

Avg electricity production 64.5mw

Waste processed/yr 300,000 MT

Projected Elementa Plant Financials at full scale


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The Waste Challenge


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Key Market Challenges• Waste generation levels are growing rapidly (over 2 billion tonnes per year and

rising)• Landfilling is no longer acceptable• Communities are demanding clean technology• Climate change issues are driving market conditions • Energy security is a global concern• Global requirements for clean energy is rapidly growing• Meeting strict environmental permitting conditions

Via Eliminate Landfilling – Provide

Clean Energy

Elementa Solutions• Advanced Conversion Technology – no landfill• Economically viable in today’s market• Open community approach and outreach – a cleantech solution• Reduces Greenhouse Gases and Exceeds stringent environmental

regulations• Alternative Energy Options – using waste, scalable design and

adaptable outputs• Validated thermal-chemical process – pilot plant tested• Based on proven Germany processing systems with the Elementa

technology

1979 1988 20060

5000

10000

15000

20000

Land fills in operation in USA

Land fills in opera-tion

Technology Breakthrough


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Your “bag of garbage” contains the elements to unleash a cleaner more sustainable world.

Steam Technology Basics - known as the chemistry of “Steam Reformation”:

• Indirectly heat “Waste” to 900oC • No oxygen (therefore combustion free – no burning of

waste)• Add water (already in the waste – moisture of garbage – unique

value), and • Unleash an incredible, clean energy source called–“syngas”

A Patented Steam Technology: Combustion-Free - Unconventional Chemistry

Footer text hereJuly 22,

2012

Elem

enta

Incine

ratio

n

Pyro

lysis

Gasifi

catio

n

Plas

ma

Arc

0

100

200

300

400

Homes Powered /M$ of Capex

Electrical Efficiency Comparison: Elementa out performs other technologies & achieves “Grid

Parity”

The first plank of 6 energy products

$-

$0.020

$0.040

Levelized Cost of Energy LCOE


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WTE Competitors Mature Power Producers

Strong competitor advantages driving unique economic solutions in cleantech.

Elem

ent

a Land

fill

Incine

ratio

n

Gas

ifica

tion

Pyro

lysis

Plas

ma

arc

Energy conversion efficiency

Waste volume reduction

Dioxin and furan emissions

Capital cost $M/net MW

Scalability and modularity

Syngas heating value BTU/cubic ft

Carbon in waste converted to syngas

60%

98%

n/d

2-4

large

350

95%

n/a

nil

n/a

nil

none

nil

nil

17%

85%

large

9-14

some

n/a

n/a

30%

93%

some

6-8

some

180

65%

30%

65%

n/d

5-7

some

300

40%

25%

98%

some

10-13

some

180

65%

Partial oxidation

n/a – not applicable n/d – not detectable

Elementa’s Technology Comparison – other WTE technologiesElementa is clearly superior – why? Elementa is

more efficient


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Elementa Technology Partners

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EPC contractor for the front-end pre-treatment incorporating Vecoplan equipment.

Supplier of front end processing equipment, including shredders, conveying and sorting..

Supplier of gas turbines. First MSW gasification technology to operate with Caterpillar /Solar Turbines

EPC contractor for the Power Island incorporating gas turbine, HRSG and steam turbine.

Engineering design company performing the detailed engineering on the gasification island and syngas cleaning system

Supplier for the rotary kiln equipment.

Collaborating on an approach for the separation and use of hydrogen in bio-fuel production using the Elementa technology with Battelle fast pyrolysis liquids

Establishing a research steam reforming platform to develop and prove new applications for the Elementa technology…... Over $400,000 in NSERC grants on a global scale.


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The reasons to invest in Elementa

• Significant share value increase potential

• Well defined exit strategy (major equity market capital raise in 2017)

• Exiting through the “valley of death” – a VC term for achieving commercial project stage

• Completed development years – commercialization stage

• World class partnerships – Caterpillar, Battelle, Toromont, U of T

• Patented technology

• Strong Platform technology to support high growth in multiple markets

• Strong Core Management team

Reasons to Invest in Elementa


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Summary & Next Steps

A proprietary, patented and proven technology ready for international growth:

•Raise $10m ($3 million in FTS) growth capital and begin journey to a major equity market capital raise

• Finalize the PPA agreement with the OPA (government announcement due in October 2013), Complete C of A work with MOE early 2014 and planned break-ground in early 2014;

• Work with project partners to complete debt financing for SSM CDP with Caterpillar Finance

• Select SSM CDP construction partner

• Grow and secure project pipeline once SSM CDP ground breaking is underway, includes high growth market partners;

• Finalize strategic partnerships for hydrogen and green fuels, working with global leaders such as Battelle; and others

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Contact Us

Jayson ZwierschkePresident & [email protected]: 905-325-1901

Garry RawsonCFO & VP Corporate

[email protected]: 905-988-3260

Office Phone: 905-687-1900

31 Elementa - Confidential

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mailto:[email protected]

mailto:[email protected]

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