Stratean, Inc. Investor Presentation September 2016 We own the technology that converts garbage into fuel – turning a global problem into a renewable solution
Safe Harbor Statement Statements in this presentation relating to plans, strategies, testing and operational performance, projections of results of specific activities and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. This release contains "forward-looking statements" that include information relating to future events and future financial and operating performance. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for the Company's products, the introduction of new products, the Company's ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of the Company's liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in the Company's filings with the United States Securities and Exchange Commission (the "SEC"). For a more detailed description of the risk factors and uncertainties affecting the Company, please refer to the Company's recent SEC filings, which are available at http://www.sec.gov. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. OTC: SRTN 2
Investor Highlights Stratean creates renewable energy through patented gasification technology that addresses growing climate change and waste management problems • Growing and urgent worldwide need for environmentally-friendly and economically-viable waste conversion and alternative fuel production • Owner of valuable patents, licenses and technologies that are capable of producing large volumes of clean, renewable, non-global warming energy On a path to from any carbon compound into synthetic gas achieve • State-of-the art, modular Stratified Downdraft Gasifier is based on revenue and proprietary technology that provides a competitive edge free cash flow • Modular product design requires significantly lower upfront customer generation investment , enables clean gas production to eliminate the need for costly hot gas clean-up and is modular to reduce downtime during maintenance • Recent acquisition of CleanSpark positions Stratean at the forefront of the U.S. microgrid market which is projected to increase 300% from $225M in 2016 to $1B in 2020 • Targeting power companies, municipalities and waste and recycling companies; in advanced stage discussions with multiple potential customers • Diverse, highly-trained and experienced management team with a wealth of knowledge and experience in the technical and business world OTC: SRTN 3
Market Overview U.S. Municipal Solid Waste (MSW) Generation (# in millions of tons) 253.7 254.1 243.5 +68% 217.3 208.3 since 1980 166.3 151.6 127.8 Global 121.1 104.4 opportunity to 88.1 4.7 4.7 4.6 4.5 4.4 divert waste 3.8 3.7 3.3 3.3 3.0 from landfills 2.7 and utilize a valuable 1960 1970 1980 1990 2000 2013 resource Total MSW Generation Per Capita Generation Source: Center of Sustainable Systems, University of Michigan Handling and disposal of MSW is a growing concern as the volume of waste continues to increase • Landfills are the most popular means of MSW disposal, but are not a viable, long- term solution due to environmental impacts • Increasing levels of waste driven by urbanization driving strong demand for renewable energy resources that reduce the carbon footprint OTC: SRTN 4
Proprietary, Patented Technology Stratean’s technologies and processes are capable of producing large volumes of clean, renewable energy from a carbon compound Inputs Outputs Stratified Downdraft Gasifier Stratean’s MSW technologies Coal produce Synthesis Gas Sewage GREEN Sludge POWER RESULT: • Green power with water and air emissions that are environmentally safe • For each ton of MSW and / or coal, ~1 Megawatt Hour (MWH) of electricity or 100 gallons of useable fuel is produced Stratean’s technology avoids the root cause of failure of prior technologies by eliminating the need for costly & difficult hot gas clean-up OTC: SRTN 5
Products / Production Processes • Simplicity is our edge • Fewer moving parts • Durable and efficient patented process OTC: SRTN 6
Products / Production Processes STRATEAN Gasification System was compared to three gasification technologies Efficiency Scalability / Clean Complexity Capability Process Gas Cost Availability Stratean Gasifier Pilot scale Low Low to high 95%+ only volume efficiency* capability; NO GAS Stratean’s modular design CLEAN-UP technologies Gasifier -Oxygen- YES Higher Smaller volumes ~80% $70.6M provide a clear blown auto-thermal required; More Requires gas advantage to bubbling fluidized scalable and clean-up conventional bed design applicable for large installations alternatives Gasifier - Allo- YES Higher Smaller volumes 70%-75% $59.7M thermal circulating required; More Requires gas fluidized bed design scalable and clean-up applicable for large installations Tar Reformer – Allo- YES Higher Smaller volumes 80.9% $70.7M thermal bubbling required; More Requires gas fluidized bed design scalable and clean-up applicable for large installations * Based on third-party test (http://www.stratean.com/s/Stratean-Energy-Gasifier-Evaluation-Report.pdf) OTC: SRTN 7
CleanSpark Acquisition Combining gasification technology with advanced energy software technology to enable end-to-end renewable, reliable energy management More than Power • Announced in July 2016 • All equity transaction valued at ~$36M • CleanSpark existing holders entitled to 6M SRTN common shares + 4.5M Transaction warrants with a 5 year expiration at a $1.50 strike Expands • Transfers ownership of operating subsidiaries, patent-pending fractal Highlights capabilities in grid software technology, contracts, patents , and other assets • Positions Stratean at forefront of exploding U.S. microgrid market which rapidly is expected to increase ~300% from $225M in 2016 to ~$1B in 2020 growing renewable • Invested ~$8M to develop and bring to market innovative Mpulse energy sector software technology which manages energy consumption and production CleanSpark • Generated >$14M in revenue since inception in 2013 • Profile ~$2.6M in existing, executed long-term agreements with a military base, a golf course, and other campuses to deploy and maintain solar microgrids • Growing pipeline of opportunities • Augments CleanSpark’s energy management technology with Stratean's gasifier which can provide a baseload energy source Synergies • Enabling customers to gain further independence from the energy grid OTC: SRTN 8
CleanSpark Overview Developed a proprietary microgrid energy operating platform capable of managing complex power systems from the kW to multi-MW range in real-time Enables 100% clean microgrid solutions with 100% reliability, at or below utility rates Technology agnostic approach working with equipment Most vendors, service providers, and end users advanced tool Completed several turnkey microgrid installations for behind- 1.1MW microgrid for the Department of Defense at Camp the-meter Pendleton in operation since Q1 2014 as well as in the microgrid and commercial market. DERs market Total of 7MW of distributed generation and microgrids completed in 2015 and in operation Developed microgrid ecosystem through partnerships with U.S. Military, Webcor Builders, Sungevity, Lance Capital, Renova Capital & Energy Management, OZZ Clean Energy, and various energy storage and technology vendors OTC: SRTN 9
CleanSpark Platform Integrated microgrid software and control platform for plug-n-play microgrids M ICROGRIDS 101 CleanSpark’s Platform • Optimizes energy consumption • Integrates and Most autonomously advanced tool controls advanced for behind- energy storage the-meter microgrid and • Provides true energy DERs market and cyber security • Enables 100% Microgrids are localized power system comprised of renewable microgrid distributed generation assets, energy storage devices and solutions smart distribution technologies that can operate as a single, autonomous grid either in parallel to or “islanded” from the existing utility power grid. OTC: SRTN 10
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