tion In Inves estor Pr or Presenta esentation O ff setters - PowerPoint PPT Presentation

tion In Inves estor Pr or Presenta esentation O ff setters Climate Solutions Inc. OO TSX-V: C : COO

Corporate History O ff setters Climate Solutions was formed through the consolidation of three complementary carbon management companies in December 2012: Established in 2005, ERA Carbon O ff sets Ltd. - a leader in • international forest carbon o ff set development and commercialization. Established in 2006, Carbon Credit Corp. (CCC) - a leader in • agricultural and forest carbon, as well as climate software and technology solutions. CCC merged with O ff setters in 2010. Established in 2007, O ff setters Clean Technology - a leader in • technology o ff set development and commercialization, and sustainability consulting.

Management & Board Management Team James Tansey PhD, Chief Executive O ffi cer: James is President and CEO of ERA. He is also the founder of O ff setters. He is an • associate professor at the University of British Columbia's Sauder School of Business and is the Executive Director of ISIS, a Research Centre at the Sauder School of Business dedicated to social innovation and sustainability. He has taught in MBA, EMBA, Executive Education, MSc and Undergraduate programs in the UK and Canada. James received his PhD from the University of East Anglia in 1999 and has written extensively on industrial ecology and climate change.

Management & Board Management Team Je ff Calvert, P.Eng, MBA, Chief Financial O ffi cer : Je ff Calvert is the chief financial o ffi cer and the director of human resources. Je ff • joined ERA from Borealis Carbon O ff sets, where he was founder and managing director. He holds a degree in mechanical engineering from the University of Western Ontario and an MBA with specialization in management consulting from Royal Roads University in Victoria, BC. Je ff is a regular expert panellist in the forestry carbon space and a professional engineer licensed in Ontario. Farran Hobbs CA, Chief Operating O ffi cer : Farran has over 15 years of experience in finance, operations and business • management. Farran has a degree from UBC in International Business and Finance with a focus on Southeast Asia. Farran went on to earn her CA designation, completing her articling with PwC where she oversaw audits of companies in the mining and high-tech sectors before moving into the transaction services group where she performed due diligence and deal support for mergers and acquisitions, equity and debt transactions in the high-tech and retail products sectors.

Management & Board Management Team Joerg Germann P.Eng, Senior VP and CTO Joerg is a German-trained physics engineer, with a Diplom-Ingenieur in • Applied Physics from Munich University for Applied Sciences, and is a BC Registered Professional Engineer in Engineering Physics. He also has been since 2009 the Chairman of the CTO roundtable at British Columbia Technology and Industry Association (BCTIA). Joerg is responsible for our technology product roadmap and software solutions. Frederic Jacquemont, VP Developing Markets Frédéric has wealth of experience in international carbon markets and • environmental law. His international career spans 19 years as an environmental researcher, business consultant and legal counsel for development agencies, environmental institutions and carbon o ff set development companies. Frédéric is an expert in international climate law, particularly the regulatory arrangements of the UN Framework Convention on Climate Change (UNFCCC), the Kyoto Protocol and the Clean Development Mechanism (CDM).

Management & Board Board of Directors • Robert Falls, PhD, RPBio: Chairman • James Tansey, PhD: President and CEO • Jim Logan: CFO, Ledcor • Alexander Zang: Founder, BCC GmbH, Forest Carbon Group AG • Georg Schattney: CEO, Forest Carbon Group AG • John Poulter: CIO, Portfolio Strategies Securities • Graham Harris: Chairman, Redhill Resources

Company Focus 1. Origination • Carbon o ff set project origination, development and commercialization of o ff sets in regulated and pre-compliance markets. • Leading provider of voluntary o ff sets 2. Advisory Services • Advisory Services to medium and large cap corporations for sustainability consulting. • O ff set sales generator and consulting revenue generator. 3. Software Innovation • Software development and integration to support project origination, corporate reporting.

Company Highlights • Canada’s largest o ff set project developer with over 6 million o ff sets developed and sold to date . • The largest fully integrated carbon management and o ff set development team in North America. • Over 200 million tonnes of carbon under management including the largest forest carbon project in the world. • Strategically positioned with activity in every key established or emerging regulated North American carbon market. • Solid revenue foundation with contracted sales and clients.

Carbon Market Growth • Regulated Markets (Kyoto & other compliant) Global markets held steady in 2011, representing 10.3 billion tonnes of • CO2e, US$176 billion in trading (World Bank) North American markets up 70% in 2011 to USD $168M (Thomson • Reuters/Point Carbon) Carbon price forecast $12-$65 between 2013-2020 with regional • North American cap-and-trade (Western Climate Initiative) (Thomson Reuters/Point Carbon) O ff set demand in WCI expected to be worth between $4B - $10B • (Thomson/Point Carbon) • Voluntary/Corporate Social Responsibility (CSR) Markets Global market grew from 12 Mt in 2004 to 93 Mt in 2011, representing • USD $576 million in value (Ecosystem Marketplace) • Total international carbon market to exceed $2.2 trillion by 2020 (HSBC)

Carbon Market Drivers 1. Existing Climate Policy & Legislation: • AB-32 in California, Quebec, Alberta, in North America, Australia, Korea, Kyoto Protocol (EU-ETS), New Zealand. (Legislated regions are growing year over year) 2. Anticipated Regulations: • China, Mexico, Brazil, Japan, Peru, Vietnam, Kazakhstan, Morocco, British Columbia, Ontario (Pre-compliance regions are growing year over year) 3. Corporate Social Responsibility (CSR) • Proactive reporting and readiness for compliance obligations (CDP signatories and reporting growing year over year) 4. Branding & Market Di ff erentiation

Future Growth: Compliance Markets • California and Quebec: Emissions Trading Systems • Estimated demand of 232 million o ff sets under ARB in California between 2013-2020, with o ff set prices ranging from $10-$65 per tonne • Alberta – Specified Gas Emitters Regulation (SGER) • 60 million tonnes of CO 2 e to 2014, carbon price to reach $25/tonne • Federal Oil and Gas Regulations • National sectoral regulations which would create demand for 65 million o ff sets, post 2017 • British Columbia • LNG regulation with possible e ff ect in 2013, with 2018 rollout • Up to 14 million tonnes per year of o ff set obligations • Jurisdictional Nested REDD Initiative (JNRI) in the DRC • Recognition by 2014-15, potential for Mai Ndombe tonnes to be accepted into bilateral markets.

Portfolio Highlights • ARB Pipeline (IFM): • Multiple projects in the U.S. for California market - ARB (Air Resource Board) protocols • Current pipeline up to 1M o ff sets, Value estimated at $10M - $25M • Mai Ndombe (REDD+): • 300,000 Ha project in the Democratic Republic of Congo (first in DRC) – VCS/CCBA protocols • Will produce approximately 175Mt of o ff sets over 30 years. • Pipeline Value $875M+ and revenues of up to $153M • Great Bear Rainforest Carbon Conservation Project (IFM): • Largest IFM project in North America, in BC, (6m Ha) – FCOP protocol • First Nations, Province, Private Sector undertaking, first of its kind. • Will produce 30MT over its lifetime. • Pipeline Value up to $60M • Darkwoods Carbon Conservation Project (IFM): • Second largest IFM project in North America, in BC, (55,000 Ha) – VCS protocol • Award winning, with Nature Conservancy of Canada

Market Achievements to Date • Developed the largest forest carbon project in the world (Mai Ndombe REDD+) generating 175 million tonnes over 30 years in the Democratic Republic of Congo. • Developed the largest forest carbon project in North America (Great Bear Forest) within British Columbia Canada, generating 30Mt of o ff sets over 25 years. • The largest and most diversified supplier of o ff sets into the BC and Alberta regulated markets. • Developing substantial pipeline for ARB in California. • O ffi cial Supplier to the 2010 Winter Olympic and Paralympic Games, making them carbon neutral for the first time in history. • O ffi cial Carbon O ff set sponsor of the 2013 America’s Cup. • Supplier of choice to some of the fastest growing companies in North America, including lululemon athletica, and Aimia.

Clients & O ff set Users

Projected Sales Revenue ¡$16,000,000 ¡ ¡ ¡$14,000,000 ¡ ¡ ¡$12,000,000 ¡ ¡ ¡$10,000,000 ¡ ¡ ¡$8,000,000 ¡ ¡ ¡$6,000,000 ¡ ¡ ¡$4,000,000 ¡ ¡ ¡$2,000,000 ¡ ¡ ¡$-­‑ ¡ ¡ ¡ ¡ 2013 ¡ 2014 ¡ 2015 ¡ 2016 ¡ Revenue ¡ $7,401,808 ¡ ¡ $9,688,688 ¡ ¡ $10,165,196 ¡ ¡ $15,000,000 ¡ ¡ Gross ¡Profit ¡ $191,944 ¡ ¡ $1,692,681 ¡ ¡ $2,173,580 ¡ ¡ $3,730,000 ¡ ¡ EPS ¡ $0.01 ¡ ¡ $0.06 ¡ ¡ $0.07 ¡ ¡ $0.12 ¡ ¡