Future of Renewable Fuels Turning Waste Into High Grade Renewable - PowerPoint PPT Presentation

Investing in the Future of Renewable Fuels Turning Waste Into High Grade Renewable Diesel Cielo Waste Solutions Corp. November 2017 CSE:CMC

Disclaimer This presentation contains certain statements that may be deemed “forward -looking statements” . All statements in this document, other than statements of historical fact, that address events or developments that Cielo Waste Solutions Corp. (“Company”) expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects", “plans", “anticipates", “believes", “intends", “estimates", “projects", “potential" and similar expressions, or that events or conditions” will”, “would", “may", “could" or “should" occur. Turning Waste Into Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance Low Carbon Fuel and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward looking statements include, failure to success fully negotiate or subsequently close such transactions, inability to obtain required shareholder or regulatory approvals and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, CSE:CMC estimates or opinions, or other factors, should change. Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel

Corporate Profile Cielo Waste Solutions Corp: CSE:CMC Market Data  52-Week Trading Range $0.035-$0.27  Shares Outstanding, Basic (mm) 137.5  Warrants & options, Diluted (mm) 196.2  Market Capitalization (mm)* ~$17.8  Net debt Q3/17E (mm) $2.5  Enterprise value (mm) $20.3  *as of Nov 21/17 Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel 3

Who is Cielo? Canadian public company trading on the Canadian Securities Exchange  - Symbol: CMC. Cielo has an exclusive global license to a technology that can convert  multiple different waste streams into renewable diesel at a considerable lower cost than biofuel companies. Currently, Cielo is commercializing a game-changing technology.  Waste to Renewable Diesel refinery company.  Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel 4

Near Term Catalysts  Currently executing Phase 1 of development program  Expected to provide operational updates regularly  Provincial Permit grant expected in a few months  Full scale continuous operations expected shortly after grant of provincial permit  Expectation of first production by spring 2018  Phase II expected start months after Phase I  2018 expected to be packed with activities Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel 5

Progress to Date: R&D Phase Reviewed over 200 upgrading technologies  Performed detailed evaluation on 22 technologies  Selected technology that converts multiple feedstocks - sawdust, plastics,  tires, construction debris and municipal organic and solid waste - into renewable diesel Started R&D in November 2004 – multi million spent to date  Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel 6

Demonstration Pilot Advanced proprietary patent pending process  In operations for over 4 years  Tested wide range of waste feedstocks and  extensively researched proprietary catalyst using Demonstration Plant Obtained multiple third party validation of process  Obtained 5 grants from NRC/IRAP  Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel 7

Key Milestones Achieved in 2017: April 18, 2017 purchased $10.2M High River, AB bio-diesel plant for $2.3M  Municipal Development Permit granted  Provincial Permit submitted expect approval in the near term  Trades and Fabrication contracts awarded  Construction has commenced  Completed over $6.8MM of debt and equity financing to secure full funding  for Phase I Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel 8

Business Plans Completed  Secured feedstock supply for entire production volume for both Phase I & II  Signed off-take agreement to sell all production  Phase I – Retrofit Pilot into a 356 l/h commercial refinery  Phase II – 1,824 l/h refinery to be added  Finalizing drawings  Expected to start shortly after Phase I in operations  Phase III – minimum of 5 cookie cutter plants next door to Edmonton  Waste Landfill Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel 9

Benefits of First Plant in High River Secured plant & land  Demo Plant is being retrofitted into a continuous  flow refinery at a Capex of less than $2.0M 2.45 acre site fully serviced with land use zoning in  place Only 25 km south of Calgary  Close to multiple feedstock suppliers and  contractors Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel 10

Benefits of Second Site in Edmonton Located near Edmonton Waste landfill : Anthony Henday ring road & Hwy 16 Offsetting Edmonton Waste Management Centre (large source of feedstock) Suppliers of used motor oil Many large refiners (buyers of the end product) Rail access through neighbouring firms Secure Gated Site - Class 1A disposal well on property Ample room to build up to twenty model 1,824 l/h refineries Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel 11

Demand for Biodiesel in Canada Demand is created by provincial and federal requirement for a minimum biofuel content in diesel fuel as follows: Blend Diesel Consumed Biofuels Locations % 2015 Required BC 4.0% 1,852 74 AB 2.0% 4,019 80 SK 2.0% 1,315 26 MB 2.0% 794 16 ON 2.0% 5,427 109 QC 0.0% 3,177 0 Maritimes 0.0% 1,140 0 Territories 0.0% 178 0 Canada 2.0% 17,412 348 Total/Average 3.8% 17.4 Billion L/Y 653 Million L/Y Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel 12

Overview of Biofuels Market in Canada 400 MLY of Biofuels are produced in Canada  380 MLY of that production is exported  No renewable diesel is produced in Canada  Renewable diesel receives ~ 25% premium over bio-diesel  Unfilled mandated demand in Canada is ~633 MLY   Canadian demand represents 43 Cielo refineries similar to High River Plant size of 15M L/Y (1,824 litres/hour)  USA is the world’s largest importer of bio -diesel, which is heavily subsidized Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel 13

Benefits of Cielo Renewable Diesel Affordable: Can be made for $0.49/L vs. ~$1.40/L biodiesel  Low Carbon: Carbon intensity ~60% lower than diesel  Unlimited Feedstock Supply: Multiple waste streams available 365 days/year  Compatible: Same properties as fossil diesel so no extra vehicle maintenance  or infrastructure investment needed Long Shelf Life: Can be stored and used year round  High Performance: Low Cloud Point - works in very cold temperatures  No Blending Limit: Can be used in any blending % with petroleum diesel  Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel 14

Cielo Produces A Product that is Higher Quality & Less Expensive Biodiesel Renewable Diesel Production Cost/L $0.36 - $0.50 (Avg $0.43) $0.44 Feedstock Cost/L $0.80 - $1.14 (Avg $0.97) $0.05 Total Cost $1.16 - $1.64 (Avg $1.40) $0.49 Price in Edmonton $1.25/litre $1.52/litre Cielo’s Catalytic Thermal Depolymerisation technology allows  feedstock to be converted in seconds vs hours. Cielo can use a wide range of waste feedstocks that many  companies must pay a disposal fee Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel 15

Management Team Don Allan Michael Yeung, CFA Dr. Roderick Facey VP Business Development President & CEO Chief Technology Advisor & Capital Markets • 30+ years of executive leadership experience including experience in • Professional engineer with a • Over 15+ years experience in public debt and equity capital markets, doctorate degree from the University and private debt and equity markets strategy and planning, risk of Alberta • Experience in equity, debt, mergers management and investor relations. • Chemical Systems, Structural, and acquisitions, capital structure, • extensive background in business Environmental, Mechanical & valuations and research development, marketing and project Process Engineering Specialist development. Cielo Waste Solutions Corp. Turning Waste Into Renewable Diesel 16