executive overview:

Vertichem

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Vertichem: An Overview

Vertichem is an innovative green-tech company and one of the worlds leading practitioners of industrial-scale green chemistry. The company produces environmentally friendly chemicals that are sold to the commercial, manufacturing, food, consumer goods and pharmaceutical markets. Vertichem creates three valuable products from hardwood chips: lignin, xylose and cellulose. With ample access to raw materials from sawmills and forestry operations, primarily in North America, Vertichem has the ability to convert low-cost waste into valuable natural products that can act as renewable substitutes for oil-based chemicals. Many Fortune 500 companies need a way to reduce their reliance on petrochemicals. The market for petrochemicals is increasingly volatile and uncertain. For strategic and economic reasons, these companies are searching for viable alternatives to meet their chemical needs. These firms can use Vertichem specialty chemicals to reduce the volume of petrochemicals in widely used goods such as computers, paints, running shoes and packaging. Vertichem holds the exclusive U.S. patents for the breakthrough process that converts woody biomass into specialty chemicals. The company is led by Chairman and Chief Executive David Milroy. Milroy founded the company with a vision to commercialize green chemistry. He is a savvy businessman with a track record of taking large, industrial ideas and turning them into practical realities.

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The Need: Transforming the Global Chemicals Marketplace

For the past 150 years, the global chemical industry has been dominated by the Petroleum or Crude Economy. The Petroleum Business Model required the production of an originally abundant, but non-renewable and non-sustainable, natural resource (petroleum), and the separation of the complex mixture of hydrocarbon materials into its pure component parts. Some of these components were readily useable for numerous valuable applications. Others became platform chemicals that could be transformed by further processing into even more valuable components. This stage-wise refining process added tremendous value, as the sum of the pure components proved to be worth far more than the value of the crude mixture itself. The Crude Economy is unsustainable. Known reserves of petroleum are diminishing, production costs for exploitation of new reserves are rising, and few large deposits are being discovered. Whats more, environmental risks and costs are growing exponentially as exploration moves into Arctic, deepwater and other difficult environments. Vertichems business model is patterned after the well-known and understood petroleum economy business model. But there is a critical difference: Vertichems feedstock biomassis a renewable and sustainable natural resource. Vertichem is facilitating the transition from the crude economy to a new green economy.

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150-year-old Crude Economy

High value products

LPG Petrochemicals Transport fuels Industrial fuels Other Plant and animal matter Fossil fuel Fractionation

The Green Economy

High value products

Xylose (Sweetener) Natural Lignin (Chemicals) Cellulose/ Ethanol Hardwood Vertichem patented biomass fractionation

Direct use as feedstock

In Vertichems view, the real value of biomass is found not in converting it into ethanol, but in recovering the lignin, xylose and cellulose, provided they are recovered virtually intact and without degradation. The highest value of biomass may be realized by separating and recovering each major component lignin, xylose and cellulose for use as green chemicals.

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Composition of Plant Cell Wall

Plasma membrane Secondary wall

Rosette Lignin Cellulose Hemicellulose Protein Middle lamella Primary wall Herbaceous Wood
SOURCE: Nature Reviews (Genetics), Volume 9, June 2008

A liquid transportation fuel created from biomass (such as ethanol) is a fungible commodity product. As such, it reflects the lowest unit pricing of all potential biomass products. It is also most influenced by the market fluctuations of crude oil. On the other hand, chemical productsoften categorized as intermediate, specialty, and fine chemicalsgenerally command a price premium relative to liquid fuels. It is in this space that Vertichem sees the greatest potential for growth and profit. Commodity chemicals are often characterized as those with unit prices below $1/kg and with volumes above (usually exceeding) 1 million kg/yr. Specialty chemicals overlap this range, with some products ranging into the tens of millions of kg/yr, down to tens of thousands of kg/yr. Unit prices range up to $10/kg. These fine chemicals occupy the highest-value and lowest-volume range, characterized by pharma products and custom-produced proprietary materials, most requiring multiple-step synthetic processing. Prices for fine chemicals range from $10/kg to over $10,000/kg (for some pharmaceuticals), with volumes generally less than 1000 kg/yr.

Chemical Price/Volume Profile

Market Price

Pharmaceuticals and fine chemicals Specialty chemicals Commodity chemicals

Volume
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Vertichem recognizes the value potential of specialty chemical products. Eighty percent of Vertichems product revenue is to be derived from lignin and xylose streams (including xylitol, furfural and, potentially, xylose fermentation). Purified lignin products, xylitol and furfural derivatives can all be considered to be value-added chemical products, as opposed to ethanol, which is a commodity liquid fuel. Whereas petroleum may be viewed as ancient stored sunlight, biomass represents modern sunlight as stored in plant cell walls. Vertichems patented biomass conversion process gently separates the complex mixture of hydrocarbon materials found in trees, shrubs and plants into their pure component parts. As with Crude Economy processes, some of the end components are readily useful for valuable applications. Other components may be used as platform chemicals, to be transformed by further processing into even more valuable components.

Biomass Yields Multiple Valuable Co-Products

Wood Fibre/ Residues

BIO-REFINERY

Mixing Transportation Storage

BIO-FUELS AND BIO-ENERGY co-generation district heating pellets

TRADITIONAL PRODUCTS pulp and paper lumber

2ND GENERATION FUELS cellulosic ethanol renewable diesel

HIGH-VALUE CO-PRODUCTS bio-chemicals bio-materials advanced products

RANGE OF POSSIBLE VALUE-ADDED CO-PRODUCTS

SOURCE: Forestry Products Association of Canada Report, February 2011

For too long, the discussion in North America over biomass has centered around ethanol and other plant-based transportation fuels. There has been very little thought regarding industrial processes and green chemicals from waste streams. This oversight presents a tremendous opportunity for far-sighted entrepreneurs and investors.

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Chemicals produced by the oil and gas industry are ubiquitous in manufacturing today. These petrochemicals are the raw materials for glues, resins, polymers and plastics. Many market participants do not yet realize the huge underlying opportunity in developing alternatives to these petrochemicals. Chemicals derived from renewable biomass offer an opportunity to address an entire industry, not just a particular application. Vertichem is positioned to replace the current platform of traditional, petroleum-based chemicals with bio-sourced alternatives. In doing so, Vertichem is fundamentally and structurally altering the need for industrial companies to be dependent on costly fossil fuels as a basis for many of their products. Large industrial companies are looking for viable alternatives to petrochemicals at the beginning of a product life cycle. Vertichem makes products that can be easily substituted for current raw materials at less cost to the purchaser. Large industrial companies also need to solve the problem of toxic-product disposal at the end of a product life cycle. Green specialty chemicals derived from biomass solve this problem with a simple concept: the more natural the input, the less toxic the output. That is the value proposition that Vertichem offers: through the creation of green chemicals, there is the opportunity to make the consumer goods we enjoy every day better, cheaper and more sustainable.

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Vertichems Technology
Vertichems patented process is a total biomass processing technology that produces green chemicals from woody biomass. This biomass comes from hardwoods and hardwood waste streams from the timber and forest products industries. Vertichem takes something that was once thought relatively worthless and transforms it into something valuable and marketable. Vertichems technology was originally developed by BioJoule Limited, a New Zealand company that Vertichem acquired in 2007. Using ethanol as an organic solvent, the process separates woody biomass into its core components: lignin, hemicellulose and cellulose. The unique nature of the process allows the valuable non-cellulose components (lignin and xylose) to be recovered and used as high-value platform specialty chemicals.

Simple Schematic of Vertichems Process

Ethanol 70% Lignocellulosic material

Hot Water

Liquid (fraction 1)

Lignin
(Mw 6000)

Cellulose Distillation Enzyme

Liquid (fraction 2) Water

Ethanol Glucose Water Xylose

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Organic solvents have been used since the early 1920s for the separation and study of wood components. The objective of an organic solvent extraction is to dissolve and remove lignin plant matter, leaving a cellulose-containing pulp. Organic solvents such as methanol and ethanol have formed the basis of environmentally friendly alternatives to the heavily polluting, alkaline Kraft pulping processes that are predominantly employed by the pulp and paper industry. Vertichems process represents an advanced, environmentally friendly technology. The advantage of ethanol-based pulping is that it produces high yields of good-quality pulp in a short amount of time. It also produces a sulfur-free lignin that is easy to capture. Vertichems patented process provides for the production of high-quality lignin. It also produces xylose, a high-value natural sugar. These two products represent over 80 percent of the potential revenue that can be generated from biomass. Vertichems patented process provides: better recovery of high-quality, high-molecular-weight lignin; recovery of hemicellulose as xylose; more efficient conversion of clean cellulose pulp to glucose, and then fermentation to ethanol or other biofuels and biochemicals; and lower operating pressures and temperatures. Vertichems Patent Vertichems patent describes a process for the treatment of plant material. Biomass is put in contact with liquid ethanol to produce (i) a first liquid fraction from which the lignin is extracted, (ii) a solid fraction that is subsequently processed with hot water to produce a. a second liquid fraction containing the hemicellulose sugar (mainly as xylose), and b. a cellulose solid fraction that can be enzymatically hydrolyzed into glucose and then fermented into ethanol. Thus, Vertichems patent protects an integrated process for separating, or fractionating, biomass into green chemicals (lignin and xylose) and glucose-derived biofuels and biochemicals. The patent contains other claims describing the characteristics of the isolated lignin, and additional broad dependent claims relating to the xylose, xylitol, furfural and cellulose isolated by the same process.

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Vertichem Process and Product Streams

Untreated feedstock (hardwood chips)

Organic Solvent (ethanol) Pretreatment

Black Liquor

Lignin recovery + drying

Lignin

Vertichem Digester

Hot Water Pretreatment (Hemicellulose extraction)

Yellow Liquor

Crystallization

Xylose

Optional process

Clean pulp (Sales to existing pulp & paper plants)

Conversion to Ethanol

Ethanol

Award of U.S.-Based Patent On January 19, 2010, Vertichem was awarded an exclusive U.S.-based patent for its gentle, integrated processing of plant biomass. The patent applies to three related but distinct processing stages at the core of Vertichems business. These include: the extraction of highquality lignin from woody plant material; the production of xylose from the hemicelluloses; and the efficient hydrolysis of cellulose present in plant material to form glucose, which is then fermented to produce ethanol. This patent approval secures Vertichems ability to produce natural, environmentally sound green chemicals and biofuels using the companys proprietary process. Vertichems team of scientists is continually researching, developing and assessing the worlds latest specialty chemical technologies, bioproducts, feedstock and biofuel innovations. The authors of Vertichems patents are part of a highly talented, fully integrated team that develops new and innovative ways to create sustainable technology.

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Vertichems Potential Products

Vertichems primary products are lignin, xylose and cellulose. They are alternatives to petrochemicals used in the industrial, commercial, food, consumer goods and pharmaceutical markets. (There is an option for Vertichem to convert cellulose to biofuels/biochemicals or to sell it to hardwood pulp mills.) Of Vertichems initial suite of products, lignin has the greatest sales potential. The term lignin defines the polymeric material located in the plant cell wall, the second most abundant polymer found in nature. Lignin is a complex, high-molecular-weight polymer that occurs naturally in plants and trees, and it is one of the most abundant raw materials available on earth. It is characterized by relatively high strength, excellent rigidity, good impact strength, and high resistance to ultraviolet light. The polyphenolic nature of lignin and its low toxicity, together with many additional positive characteristics (binding ability, thermal stability, specific UV-absorbing capacity and flame-retardant properties), make it an ideal renewable replacement for a number of fossil fuel-derived polymer feedstocks. Its structure makes it suitable for incorporation into adhesives, plastics, glues, paints and resins, and perhaps even carbon fiber.

LIGNIN
Blended sale to progressively replace petroleum based ingredients High quality lignin opens even larger markets with new green applications

XYLOSE
Ingredient sale to food ingredients and pharmaceutical markets Xylose is feedstock for xylitol (healthy sugar substitute) and food base for flavorings industry Food additives Xylitol Personal care products Pharmaceuticals

CELLULOSE/ ETHANOL
Ethanol for commodity biofuel sales Cellulose as direct sales to pulp and paper sector

PVC fillers and additives Adhesives & epoxy resins Polyurethanes Carbon fiber

Transportation fuels Fuel additives Solvents More economical input for pulp and paper plants

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The global petrochemical market is estimated to be US$600 billion. The biggest problems facing petrochemical manufacturers today are the availability and pricing of chemical feedstocks. The petrochemical industry is desperately seeking renewable and sustainable alternatives to petroleum-based feedstocks. There are many examples of industrial chemical and petrochemical feedstocks that potentially can be displaced by lignin. Lignin can be used in plastics, paints, resins and adhesives. This total market alone can be conservatively estimated at over US$60 billion. Lignin has been successfully introduced into a polyurethane resin used for the production of polyurethane rigid foam. Rigid foams are high-grade insulation used in commercial and industrial construction (floors, walls, ceilings and roofs), appliances (refrigerators and freezers) and automobiles (dashboards, roofs, etc.). Additionally, phenol derived from natural lignin could displace phenol currently supplied for adhesive resin production and other uses by the petrochemical industry. Phenolic resins are the primary adhesives in the wood industry for the manufacture of particleboard, oriented strand board, hardboard, plywood and engineered wood products such as laminate. Phenol is also used as a feedstock for the production of chemicals such as bisphenol A, which is used to make polycarbonate and epoxy resins. The total global market demand for phenol is in excess of 10 million tons per annum. Furthermore, the use of lignin to partially displace phenol in adhesive manufacture has also been successfully applied to the manufacture of friction products including automotive brake pads and moldings. Phenolic resins are a critical ingredient for virtually all paints, coatings, glues and other adhesives produced for consumer and industrial uses. Major phenol producers and key niche players worldwide include Dow Chemical Company, Ertisa, Georgia Gulf Corp, Ineos Phenol, Mitsui Chemicals, Rhodia Paulinia, Shell Chemicals, Sunoco Chemicals, Syndial and Enichem. Lignin is also a polyol, which means it reacts easily with a variety of chemical agents. Almost 80 percent of the global polyol production is consumed each year by the polyurethane industry. Therefore, the growth in demand for polyols is largely a function of growth in polyurethane production. The global production of polyurethane is estimated today to be over 10 million tons per annum. China represents the fastest-growing market for polyurethane at 4 million tons (2009). The global production capacity of polyether polyols and polyester polyols is estimated to be in the region of 5 million and 1.5 million tons annually.

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Vertichem expects to be able to recover additional green chemicals from waste streams after establishing core competencies in production and sales of lignin, xylose and cellulose-based products. The company is positioning itself as a total hardwood biomass processing company, using waste hardwood resources to produce renewable and sustainable biobased products that are better-performing, competitively priced and environmentally superior to petroleum-based products and other counterparts currently on the market. Vertichems industrial customers will have the ability to purchase its green chemicals as additives and partial substitutes for existing feedstocks, thereby allowing them to demonstrate to their own end-use customers that they are steadily improving their own sustainability footprint. Its important to note that Vertichem has no expectations of being able to attract green pricing premiums on its products. That is all too often a false hope, one to which many companies and investors cling. It has historically been responsible for many failed enterprises. Vertichems objective is to produce high-quality green chemical products at price points below existing petroleum-based and other feedstocks. The companys patented process has the ability to assist the multi-billion dollar specialty chemical industry in meeting its sustainability objectives, while simultaneously developing commercially viable innovative products.

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Vertichems Advantage
In the Petroleum Business Model, the exploration for, and production of, petroleum comprises the upstream business. The refining of petroleum and distribution of products comprises the downstream business. The most successful petroleum companies are those that achieved vertical integration, taking part in the ownership of production of petroleum (upstream assets), as well as in the development and operation of refineries and petrochemical plants (downstream assets) through the ultimate marketing and sales of finished products. Vertichem believes one of the keys to becoming a leader in the emerging Biomass Business Model will be to achieve vertical integration of upstream and downstream resources. Vertichems business model is to achieve virtual vertical integration through strategic joint ventures, relationships and partnerships with large forestry/biomass resource owners, and with industry partners already in the chemical and petrochemical industries. Achieving true upstream vertical integration through ownership of biomass feedstock resources would be extremely difficult, as it would require the purchase of large tracts of land and/or harvest rights or timber concessions to large tracts of land. The latter almost always come with obligations that require existing forestry management and forest-product manufacturing operations. As such, Vertichems more cost-effective business model is to collaboratively partner with major timber-resource owners and forest-product manufacturers to achieve the same result. In this way, Vertichem can share in the financial potential created by its patented biomass conversion process and thereby add value to the forest resource owners upstream assets. Vertichems business model is to build, own and operate downstream biomass biorefineries in order to achieve maximum return on investment. In addition, Vertichem plans to partner with existing specialty chemical manufacturers to accelerate growth and to benefit from already-established marketing, sales and distribution channels. Vertichems partnering model will provide the company with the effective vertical integration footprint of a much larger enterprise.

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Potential Competition Vertichems process relies predominantly on hardwood wastes produced by the forest products and sawtimber industries (50 percent or more of trees harvested end up as waste materials). Where others see waste, Vertichem sees and creates enormous value. This approach contrasts with most of Vertichems potential competitors in the biomass conversion and green chemicals industry. The majority of those companies are exclusively focused on agricultural residues and softwood resources as feedstocks of choice. Vertichem is aware of only a few biomass biorefining companies currently targeting hardwood biomass as their preferred feedstock. Of course, more companies may seek to develop hardwood-based processes in the future. Similarly, Vertichem expects to face competition for hardwood feedstocks from bioenergy companies seeking sources for conversion into wood pellets or for burning to produce electricity in biomass-fired power plants (or co-firing in fossil-fuel power plants). Vertichem believes, however, that its process for converting hardwood biomass into high-value products is more advantageous economically and environmentally than burning biomass for its thermal energy or calorific content. Vertichem faces competition from the manufacturing operations of hardwood pulp and paper mills, many of which are evaluating the relative merits of integrated biomass refining to recover more than just the cellulose or fiber component of the hardwood feedstocks used in their mills. The company believes its patented process can provide enormous advantages to pulp and paper mills. Vertichem has already engaged in discussions with several pulp and paper industry companies about processing hardwood feedstocks to recover the more valuable green specialty chemical products, and delivering the resulting fiber stream to the mill for traditional processing. The Geographic Difference Vertichem views North America as its primary market for initial biomass biorefinery development, and contains abundant hardwood resources. What the Middle East is to oil, North America is to hardwoods.

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North American Locations for Feedstock Supply

Canada

USA

The market for Vertichems products, however, is global. Additional biorefinery project development potential exists in South America, Europe, Asia, Australia and New Zealand. Each of these geographic areas is distinct in terms of biomass resources, customer base and product requirements. Even within North America, there are regional differences in the types of biomass resources and market opportunities available. For this reason, Vertichem is placing great emphasis on developing biorefinery projects in the United States, particularly the southeastern U.S. region, with sales of products to serve regional and national markets. The southeastern U.S. region has an abundance of both hardwood resources and agricultural residues, both of which make ideal feedstocks for Vertichems process.

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Overall, Vertichem believes that a focused geographic presence and market penetration will facilitate more rapid biorefinery development and greater economies of scale as it expands production and marketing of products. Vertichem expects, however, to be able to move to other regional and national markets by using a modular biorefinery design and standardized construction and operating template for quality and cost control. A Plan for Accelerating Growth Vertichem plans to accelerate business growth and maximize financial performance by employing the following business strategies: Strategic Joint Ventures Pursue profitable, strategic joint-venture and collaborative relationships with industry leaders in the (i) forestry biomass, (ii) specialty chemical processing and (iii) product development and end-use applications sectors and markets in order to achieve virtual vertical integration; Focused Geographic Presence Maintain a focused geographic presence to facilitate early biorefinery development and marketing capabilities, expanding to other regional and national markets prudently while maintaining quality- and cost-controls; and Disciplined Acquisitions Expand and grow through disciplined acquisitions in the biomass-conversion and green chemicals industry to complement Vertichems own emerging market position and manufacturing capabilities. Satisfying Real Markets, Not Political Markets In order to operate on a global basis, a company needs to be able to operate independently and successfully, without subsidies or other forms of external support. If you have a robust business plan and a company that can operate free from such support, then long-term success looks promising. An increasing number of companies in the market are unable to survive on their own and are forced to rely on government help. This is a problem, and, in many respects, there is a remarkable inconsistency between various governments, and indeed various policies. While governments can encourage certain innovations or technologies through tax incentives, from a business point of view, companies can easily find themselves on the wrong track if they are singularly focused on meeting subsidy criteria, rather than doing whats right for their company and shareholders in the long run.

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The Market Opportunity: A Real Market, Not a Political Market

Vertichem is targeting a multi-billion dollar existing chemicals market. The market applications and products already exist, and Vertichem aims to provide useful, high-quality substitutes for a portion of that market. In many respects, Vertichems challenge is much easier than creating new markets for a suite of entirely new products. Put simply, Vertichem doesnt make the consumer products; Vertichem just makes the raw materials for consumer products greener and less expensive. There are three primary ideas at the heart of Vertichems approach to the market. First, for green chemistry companies to be successful in the chemicals industry, their renewable, green products have to perform as well as or better than the existing petrochemicals. Second, the products must be competitively priced. It is not realistic to believe that manufacturers will pay more just to label their product green. Third, and most important, these products need to be non-disruptive. A company cannot oblige manufacturers to make modifications to their existing processes. The green chemicals must substitute neatly and seamlessly into already-existing manufacturing processes. The adoption of Vertichems platform specialty chemicals will be because the companys products meet these three criteria. The fact that Vertichems products are genuinely green alternatives to existing petrochemicals is an appealing extra. But, in some ways, this is the least important aspect of a products adoption in the marketplace. The green technology space is littered with failed companies that created green products not adopted by the marketplace. It is because those products were not cost-competitive, they were of lesser quality than existing products, and/or they required disruptions in existing industrial processes to work. Vertichems products avoid all of these pitfalls. Many industrial companies and end-product manufacturers that currently rely on petrochemicals are actively looking to make their products more sustainable but without raising costs or creating inefficiencies. These and other firms are also interested in protecting against oil-price risk (and, in this era of potential peak oil, instability in the Middle East and so on, these firms are prudent to do so).

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Any company that provides a means of enabling a shift away from petrochemicals, towards reliable, cost-effective alternatives, will be welcome. Vertichem is one of the first companies able to provide the alternatives that companies are currently seeking. Its important to note that Vertichem is focused on a new sector that today hasnt really had the attention or growth of bioenergy. Despite this relative inattention, it has the potential to become a considerable industry on its own terms. Investors are looking at companies in this sector that have patented technology, well-defined processes and a very clear market. As such, Vertichem is well-primed for the next phase of growth.

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Key Personnel
Vertichems management team combines decades of leadership in global businesses with a track-record of bringing advanced technologies to market. The team, which has worked together before on global projects, understands how to turn large industrial ideas into reality. Now, they have united to forge ahead with an ambitious plan to commercialize green chemistry and bring sustainability potential to new products.

David Milroy Chairman & Chief Executive David Milroy is an international entrepreneur with over 20 years of executive leadership experience at high-profile global technology companies in Asia, Europe and North America. Milroy is currently Chairman and Chief Executive of Vertichem, an innovative green-tech company headquartered in Toronto. He founded the company with a vision to commercialize green chemistry. In the past three years, Milroy has grown the companys presence on three continents, succeeded in landing multiple rounds of investment funds and secured the exclusive U.S. patents for Vertichems breakthrough process of converting hardwood chips into green chemicals. Milroy has made a career of converting large, industrial ideas into practical realities. As an executive at Global Crossing in the 1990s, he led groundbreaking projects like the worldwide installation of the worlds first sub-sea, fiber-optic infrastructure. Milroys arrival on the green-tech scene comes at a time when corporations and policymakers are keen to find new ways to meet sustainability objectives, and wean economies off of oil. The products all around us use petroleum-based chemicals, Milroy says, citing a range of regularly used goods like plastics, tennis shoes and computer keyboards. I want to create new sustainability potential for untouched markets. Prior to Vertichem, in the early 2000s, Milroy was President of Asia Global Crossings Asia-Pacific division, and Senior Vice President, Network and Operations, of the companys Hong Kong and Singapore arm. He was responsible for the development, deployment, implementation and operations of East Asia Crossing, a $2.5 billion fiber-optic submarine cable system that connected seven countries in the region. He also supported an IPO roadshow for the company, which led to the raising of nearly $500 million.

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Milroy has also held a number of executive-level positions across the telecommunications industry, including at Global Crossing Ltd., KPN International N.V., Unisource Satellite Services and Telstra Corporation. Milroy received his Bachelor of Commerce in Marketing and Finance from the University of New South Wales, Australia David M. Beatty Vice Chairman David Beatty is Vertichems Vice Chairman, bringing 25 years of experience in investment banking, principally focused on equity financing and mergers and acquisitions of mining and natural resource companies. He is currently CEO of Rio Novo Gold Inc., a gold mining company listed on the Toronto Stock Exchange (TSX). In 2002, Beatty co-founded Westwind Partners Inc., an investment bank (acquired by Thomas Weisel Partners in 2008), and remained as Deputy Chairman, Investment Banking and a Managing Director until January 1, 2010. Prior thereto, Beatty was Head of the Mining & Metals Group at First Marathon Securities (now called NB Financial) and a partner and Head of Mining Group at Gordon Capital Corporation. He was also a member of the TSX/OSC Mining Standards Task Force in 1997-98 that drafted the National Instrument 43/101 regulations and is also a past member of the IDA Corporate Finance Committee. Beatty co-founded Yamana Resources Inc. with Victor Bradley in 1994 and advised on the acquisition of the Santa Elina property in May 2003. Beatty holds a B. Comm. (Queens), M. Phil., International Affairs (Cambridge) and an MBA (Harvard Business School). Roger Williams Senior Vice President, Corporate Development Roger Williams is an accomplished international attorney and businessman, having started his career as a chemical and petroleum engineer, rising through the ranks of industry giant, Exxon. He brings 30 years of engineering, legal and business experience to Vertichem, leading the companys corporate development efforts and serving as General Counsel. Prior to joining Vertichem, Williams founded International Biofuel Partners, a biofuels project development company, which merged into Pure Power in 2007. He focused on development of biofuels projects in Asia and the Americas and forged strategic relationships with oil palm plantation owners in Southeast Asia and wholesale distribution channels in North America.

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For the preceding 16 years, Williams practiced law in Washington, D.C., Singapore and Hong Kong, representing clients developing energy and petrochemical infrastructure projects, leading mergers and acquisitions, and handling complex energy litigation cases. Williams led the Asia-Pacific practice of international law firm, Troutman Sanders LLP, as Managing Partner of its Hong Kong office for four years. In addition to building a vibrant practice and managing an international team of legal professionals, he represented clients in the development and financing of power, energy and water infrastructure projects, and in resolving major contract disputes. During his tenure with leading international law firm Skadden, Arps, Slate, Meagher & Flom LLP, Williams was resident in Singapore, Hong Kong and Washington, D.C., representing top-tier energy clients in M&A deals and infrastructure project development and finance. He served as lead outside counsel to a major energy company in upstream development of the massive Tangguh LNG Project in Indonesia. Williams is a Solicitor of the High Court of Hong Kong, and Member of the District of Columbia and Alabama State Bars. He received his J.D. from the University of Alabama School of Law (1991, Alabama Law Review, Order of the Coif), M.E. in Petroleum Engineering from Tulane University (1991), and B.E. in Chemical Engineering from Vanderbilt University (1979). Ed Guida Vice President, Project Development Ed Guida is a highly skilled international senior executive, with extensive experience in delivering large infrastructure projects on time and on budget across Asia and the Americas. Prior to joining Vertichem, he was Senior Director, Asia Pacific Program Management with Global Crossing Ltd. There, he oversaw the planning and construction of US$2 billion undersea cable systems in this region. Before his stint at Global Crossing, Guida was with Tyco International Telecommunications, where he directed the sales efforts for undersea fiber optic systems. Guida started his career with the Bell System in Bell Labs as a Member of Technical Staff and stayed there for 31 years, rising to become Managing Director for the Asia Pacific Region of an AT&T Division. He graduated from the Virginia Military Institute with a BSc in Electrical Engineering, and from the University of Michigan with a Masters in Electrical Engineering and Computer Technology.

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Contact/General Information Page

David Milroy Chairman & Chief Executive David Beatty Vice Chairman Roger Williams SVP, Corporate Development Ed Guida VP, Project Development Boonhian Kee Manager, Business Operations Jay Rhind Manager, Business Development Melanie McCreath Manager, Communications & Administration Address 155 University Avenue, Suite 1240 Toronto, Ontario M5H 3B7, Canada t. +1 416 368 8288 f. +1 416 368 2988 david.milroy@vertichem.com

david.beatty@vertichem.com

roger.williams@vertichem.com

ed.guida@vertichem.com

boonhian.kee@vertichem.com

jay.rhind@vertichem.com

melanie.mccreath@vertichem.com

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