Red Leaf Resources, Inc. Economics and Commercial Application - PowerPoint PPT Presentation

Red Leaf Resources, Inc. 
 Economics and Commercial Application � Matthew Greene � Chief Financial Officer � � � � � � EcoShale TM In-Capsule Process - Dr. James W. Patten � - Dr. Laura Nelson - Anton Dammer � - Hatch, Ltd. - Norwest Corp. � Colorado School of Mines – 30 th Oil Shale Symposium October 18-20, 2010

Disclaimer � In preparing this presentation, Red Leaf has relied upon and has assumed the completeness, accuracy and fair presentation of all financial and other information, data, advice, opinions and representations obtained by us from public sources. Red Leaf has not attempted to verify independently the accuracy, completeness or fairness of presentation of any such information, data, advice, opinions and representations. The presentation is rendered on the basis of securities markets, economic and general business and financial conditions prevailing as at the date hereof and the conditions and prospects, financial and otherwise, of Red Leaf. In Red Leaf's analyses and in connection with the preparation of the presentation, we made numerous assumptions with respect to industry performance, general business, capital markets and economic conditions and other matters, many of which are beyond the control of any party. � Certain estimates and financial information contained in this presentation constitute forward-looking information. Such forward-looking information involves known and unknown risks and uncertainties that could cause actual events or results to differ materially from the estimates or results implied or expressed in the presentation. The forward-looking information contained in this presentation is based on a number of assumptions that may prove to be incorrect including, with respect to general economic, market and business conditions; commodity prices and differentials; resource estimates; the accuracy of cost estimates, the relationships with key project contractors, suppliers and customers; production rates and economic returns; the availability of sufficient capital on satisfactory terms; the successful and timely approval and implementation of capital projects; currency exchange rates; government enacted environmental initiatives; the impact of changes in applicable laws and regulations; the timely issuance of required permits; and the successful commercialization of the EcoShale™ In-Capsule Process. Specifically, this presentation contains forward-looking information concerning the use, performance and effect of the EcoShale™ In-Capsule Process; other related technologies; the cost, development, and forecasted operating costs and operation of the EcoShale™ In-Capsule Process; and other aspects of Red Leaf's anticipated future development operations, strategies, financial and operating results and business opportunities. The actual results, performance or achievements of Red Leaf, and the EcoShale™ In-Capsule Process, could differ materially from those expressed in or implied by the results contained in this presentation. � There can be no assurance that the forward-looking information in the presentation will be realized and that actual results of operations or future events will not be materially different from the forward-looking information contained the presentation. The information incorporated into the presentation is made as of the date of the presentation and, although Red Leaf reserves the right to change or withdraw the presentation if it learns that any of the information that it relied upon in preparing the presentation was inaccurate, incomplete or misleading in any material respect, Red Leaf disclaims any obligation to change or withdraw the presentation, to advise any person of any change that may come to our attention or to update the presentation after the date of the presentation. � 2 �

Overview � Proven, Revolutionary World-Class Oil Shale Extraction Management Team Process Advanced Green Significant Owned Oil Technology Shale Resource Substantial Growth Superior Economics Opportunities 3 �

Corporate Timeline � § Company formed � 2006 � § Raised capital through equity sale � § Initial patents filed � 2007 � § Simulation and modeling, laboratory reactor tests � § Designed, constructed, and operated field pilot � § Raised capital � 2008 � § Filed additional patents � § Raised capital � § Field pilot completed – confirmed validity of the EcoShale TM Process � 2009 � § Filed additional patents � § Issued licenses for Jordan, Morocco, and Utah projects � § Raised approximately $50MM additional capital � 2010 � § Commissioned FEED and mine engineering for 9,500 bbl/d project (May) � § Completed Norwest Resource Assessment for Seep Ridge project (October) � § Complete FEED, construction begins for 9,500 bbl/d project � 2011 � § 9,500 bbl/d continuous production starts � 2012 � § 9,500 bbl/d project is cash flow positive - proceed with additional 30,000 bbl/d project � 2013 � 4 �

Estimated U.S. Oil Shale Resources � 2.1 trillion barrels in place (1) U.S. 1.5 trillion barrels in place (2) Green River Formation, Western U.S. 50.6 billion barrels surface recoverable (3) Utah 1.1 – 1.5 billion barrels in place (4) Red Leaf acreage 400MM bbls surface recoverable (5) Red Leaf acreage Notes: (1) 2007 Survey of Energy Resources, World Energy Council (2) John R. Dyni, U.S. Geological Survey (USGS) Scientific Investigations Report (3) Utah Geological Survey (UGS), based on 15 gpt richness, at least 50 ft. thick, under no more than 200 feet of overburden (4) Company estimates using various USGS and State data (5) Company estimates using various USGS and State data, based on 18 gpt richness, under no more than 100 feet of overburden with a strip ratio no more than 1:1 5 �

Company Leaseholds � • Approximately 17,000 acres of Utah state oil shale leases � – State Institutional Trust Land Administration (SITLA) 6 �

Substantial In-Place Resource � Seep Ridge Resource Report � • Engaged Norwest Corporation to complete a resource assessment of the Seep Ridge Block � – Report completed in October 2010 � – Covers approximately 1,500 acres � – Represents less than 10% of Red Leaf ’ s total acreage � – Site of 9,500 bbl/d project � – Similar geology to second Red Leaf site, targeted for 30,000 bbl/d project � • Indicates a large OOIP at Seep Ridge � – Average cumulative resource thickness of 63 feet (selective mining) � – Average overburden of less than 50 feet � – Strip ratio of 0.6 BCY per ton � – Richness of 21.4 gallons per ton � � • 114MM barrels of oil in place / [91.4MM barrels of recoverable oil] � Norwest Resource Assessment Validates Prior Resource Estimate � 7 � 7 �

Planned Production Facility � • Red Leaf is developing a 9,500 bbl/d production facility on their existing leases � – 25 year project life – 6 Capsules started/completed per year – 90 million bbl of oil produced • Use of industry leading firms to design, construct and operate the facility � – FEED, mine plan and resource assessment – 18 – 24 months to design, construct and operate • Red Leaf expects to commence an additional 30,000 bbl/d project � – Existing acreage supports this project 8 � 8 �

Economic Assumptions � Base ¡Case ¡Assumptions All ¡values ¡in ¡US$ ¡unless ¡noted ¡otherwise Commodity ¡Pricing WTI (US$/bbl) $80.00 Commodity ¡price ¡inflation (annual) 2% Kerogen ¡differential (US$/bbl) 0% Capsule ¡Metrics Number ¡of ¡simultaneous ¡capsules 2 Capsules ¡per ¡year 4 Opex ¡contingency 15% Capex ¡contingency 20% Total ¡number ¡of ¡capsules 116 Total ¡production ¡per ¡capsule (bbls) 866,855 Daily ¡production (bbls/d) 9,500 Taxes ¡& ¡Royalties Corporate ¡tax ¡rate 38% Property ¡tax ¡rate 1.2% Starting ¡royalties (1) 5% Financials Interest ¡on ¡cash ¡balance (annual) 2% Inflation ¡rate (annual) 2% Capital ¡costs ¡per ¡capsule (2) $2,301,551 (1) ¡Increases ¡in ¡1% ¡increments ¡to ¡12.5% ¡beginning ¡5 ¡years ¡post ¡first ¡production (2) ¡Based ¡on ¡116 ¡capsules 9 �

Superior Economics � Comparative Process Capital Costs $240,000 CSS SAGD Integrated Oil Shale $200,000 Capital Efficiency (US$/bbl/d) $160,000 $120,000 $80,000 $40,000 - 9.2 Initial Capex Total Capex Notes: Source: Wood Mackenzie (figures nominal to 2009 and real (in 2009 terms) thereafter), company reports 34.9 EcoShale initial capex of US$124 million initiates production of 9,500 bbl/d in 2011; additional capex of US$143MM required in 2023 Average produced product API gravity: non-integrated oil sands projects = 9.2 degrees; integrated oil sands projects = 34.9 degrees 10 �