CADIZ INC. Sustainable Land, Water & Agricultural Resources B. Riley & Co. Conference May 13, 2015.

CADIZ INC. Sustainable Land, Water & Agricultural Resources

B. Riley & Co. ConferenceMay 13, 2015

May 2015This presentation contains forward-looking statements that are subject to significant risks and uncertainties, including statements related to the future operating and financial performance of the Company. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.

Cadiz Inc.

Safe Harbor Agreement

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Los Angeles

San Diego

Las Vegas

Barstow

Fresno

Bakersfield

San Bernardino

SantaBarbara

Yuma

Kingman

Needles

Laughlin

El Centro

Cadiz Inc.

o California renewable resources company with 45,000 acres of land assets and water rights.

o NASDAQ: CDZI

o Founded 1983

o Permits for agriculture and water supply projects.

o Cadiz Valley Agricultural Development

• Agriculture is a permitted use on all 45,000 acres of Company.

• 9,600 under current CUP.

• Joint venture with Ag company to plant up to 1,500 acres of lemons.

Current Operations

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o Cadiz Valley Water Conservation, Recovery and Storage Project

• Approved for 2.5 million AF of water deliveries over 50 years; maximum annual delivery of 75,000 AF.

• Current existing wellfield on property to pump 20,000 AF/year.

o Land Conservation Bank

• 7,500 acres desert tortoise habitat land certified as mitigation bank by State of CA.

• Bank credits would be sold to development projects with mitigation requirements.

o Cadiz Northwest Pipeline

• 96-mile 30” steel pipeline, idle in ground, with water delivery capacity 20 – 30,000 AF/year.

• Intersects major California water infrastructure.

Other Assets

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o CA in 4th Year of Drought, Hit by Mandatory Rationing, & Lake Mead at lowest level since 1930s.

o Need for New Water Supply Alternatives -

• Major Infrastructure Projects (reservoirs, Delta tunnels) pursued by State.

• Variety of local supply projects (desalination, recycling, supply augmentation, aquifer storage conservation) actively sought by all water providers.

o Rising Price of Water in California -

• Rates have historically increased approx. 6% per year.

• Market prices for reliable water reaching $1,000AF; short-term spot market $2,000/AF.

Market Conditions

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Cadiz Water Project

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o 1,300 sq. mile watershed in eastern San Bernardino County

o Aquifer holds approx. 20 million AF, comparable to Lake Mead w/ natural recharge of 32,500 AF/year.

o Cadiz Inc. only significant overlying land user.

o Prolific groundwater resource provides irrigation for agricultural operation.

Cadiz Water Resource

Cadiz Dry

Lake

Bristol Dry Lake

5 Miles

a

BNSF

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Fenner Valley

OrangeBlossomWash

GraniteMountains

ProvidenceMountains

New York Mountains

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Water Wasted to Evaporation

Dry Lake Crust Beneath Dry Lake Surface

Desert Research Institute measured evaporation from the Dry Lakes at approximately 32,000 AF/year. Billions of gallons of water lost every year.

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Solution: Managed Water Project

o Intercept and conserve groundwater before it reaches dry lakes.

o Put conserved water to beneficial use in So. California water system.

o Without intervention, billions of gallons of water lost.

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A new, innovative and sustainable water source for Southern California

PHASE I: Conservation & Recovery Phase

• Construct wellfield on Cadiz Inc. property to create “picket fence” to conserve water.

• Deliver 2.5 million AF over 50-years via a 43-mile buried pipeline to Colorado River Aqueduct within Arizona & California Railroad right-of-way.

• NO adverse environmental impacts under permits.

• Creates reliable supply for 100,000 families.

Cadiz Water Project

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Once hydraulic barrier established in Phase 1, Project would import water in wet years to store in the aquifer system for return when needed in dry years.

o Total storage capacity = 1 million acre-feet.

o Larger than local surface reservoirs, including Diamond Valley Lake.

o Facilities:

o Convert Northern pipeline

o Spreading basins

o Pump station

Phase 2 - Groundwater Storage Solution

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Innovative Connection between Major CA Water Transportation Routes

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After a complete review of all studies, a 13-member unpaid peer review panel found project can be operated without significant impacts.

“I find the project to be viable and capable of being implemented and administered without deleterious effects on the environment. The monitoring plan will ensure that any unanticipated effects are detected and dealt with.”

Dr. Charles Groat, GSC Member Former Director of the U.S.G.S.

Professor of Geological Sciences, University of Texas at Austin

Peer Reviewers: Project Is Sound

o No impacts to desert springs

o No impacts to endangered/threatened species

o No impacts to air quality

o No impact on adjacent watersheds or aquifers

o Groundwater basin can be sustainably managed to conserve water.

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Project Approvals

o Environmental Impact Report: Certified by Santa Margarita Water District Board of Directors, July 2012

o Groundwater Management, Monitoring & Mitigation Plan: Approval by San Bernardino County Board of Supervisors, October 2012

o CEQA Litigation: Litigation challenging Project EIR and GMMMP denied by OC Superior Court, December 2014.

Project Participants

o Signed contracts, options and LOIs with AA-rates agencies serving water users in 6 Southern California Counties and large agricultural districts in the Central Valley.

o Demand is in excess of Project capacity. Participation being prioritized in final definitive purchase agreements.

o In addition, Arizona & California Railroad has reserved water and power from the Project for critical railroad purposes.

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Supplemental Water Supply Alternatives

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Project Annual Yield Unit Cost ($/AF)

Long-term Annual SupplyCadiz Valley Water Conservation Project 50,000 $875 - 1270OCWD Groundwater Replenishment System 70,000 $900 West Basin Seawater Desalter 22,000 to 112,000 $1,366 to $1,835 MWDOC - Dana Point Desalter 16,500 $1,403 Carlsbad Seawater Desalination 48,000 to 56,000 $ 2,014 to $2,257 Huntington Beach Seawater Desalination 56,000 $1,768 to $1,812 Camp Pendleton Seawater Desalination 56,000 $1,900 to $2,340 Elsinore Valley Repurified Water (Wildomar) 3,000 $1,312 Central Basin Repurified Water (Southeast) 15,000 $1,672

MWD Untreated/Treated Tier 2 Rate - $735 - $1,032Short-term/Dry-year SupplyBuena Vista Water Storage District 12,000 $1,135Madera County Farmers 3,200 $2,190Riverdale Farmers 600 $1,800

Source: 2014 public information

Phase 1 - Project Pricing Structure

1. Water Supply Component

o 2014 contract at $960/AF delivered to Aqueduct.

o 5% cap on average annual escalation.

2. Carry-over Storage Component

o Available at $1,500/AF of reserved storage in option agreements. Capacity in Phase 1 = 150,000 AF.

o Annual storage administrative fee = $20/AF.

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o Primary activities:

• Expand the existing agricultural well field by approximately 12 new wells.

• Construct 43-mile buried pipeline to Colorado River Aqueduct within 200ft. right-of-way.

• Access natural gas power source for the well field and ancillary facilities.

• Water treatment infrastructure for naturally-occurring Cr6.

o Capital cost: Projected at $200 - 250 million.

o Timeline: Early stage pre- construction activity occurring in 2015 on Cadiz property. Pipeline expected to occur in 2016.

Construction

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Next Steps

CEQA Appeals process (Q4 2015)

BLM certification (Q3 2015)

CRA tie-in and exchange terms with Metropolitan Water District. (Q3 2015)

Project financing and construction contracts (Q4 2015)

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CEQA Appeals

o 4th Quarter 2012: Litigation filed by Project opponents challenging environmental approvals and related permits.

6 separate cases proceeded to trial in 2013. All cases coordinated before one Judge.

o October 2014: Court denied all claims against Project and upheld the environmental and permitting approvals. Court also awarded legal costs to the defending parties.

o December 2014: All 6 cases on appeals in California Court of Appeals, 4th District. Decision expected in Q4 2015.

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MWD Role

o MWD is So Cal’s regional water wholesaler, owner of transportation system.

o MWD must only approve space-available conveyance of water under its Administrative Code and California law.

o Project participants and MWD will agree as to how to convey Cadiz water via CRA to water users, considerations include wheeling costs, water quality and capacity.

o All Project water delivered to CRA will meet all drinking water standards.

Colorado River Aqueduct Available Capacity(million acre feet/year)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (2)

Design Capacity 1.250 1.250 1.250 1.250 1.250 1.250 1.250 1.250 1.250 1.250 1.250 1.250 1.250

Volume Carried (1) 0.684 0.760 0.875 0.632 0.713 0.904 1.105 1.099 0.699 0.736 1.013 1.176 0.900

Available Capacity 0.566 0.490 0.375 0.618 0.537 0.346 0.145 0.151 0.551 0.514 0.237 0.074 0.350

(Proposed average annual Cadiz water transfer of 50,000 AF = 0.050 MAF)

[1] Source: “Diversions from Mainstream-Available Return Flow and Consumptive Use of Such Water,” pg. 13, U.S. Bureau of Reclamation “Managing Water in the West: Colorado River Accounting and Water Use Report; Arizona, California, Nevada” for years 2006-2013.Reports for all years can be found here: http://www.usbr.gov/lc/region/g4000/wtracct.html [2] Estimated

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BLM Role

o Project’s use of RR ROW under review by US Bureau of Land Management.

o 1875 Act RR Grant gives RR right to convey and use RR ROW without federal approval, if the use will, in part, further a railroad purpose.

o Solicitor’s M’s Opinion Confirms Scope of 1875 RR ROW Act Grants.

o Project pipeline and appurtenances will further a number of railroad purposes providing:

• Fire Suppression• Access Road• Hydro Power • Communications • Water for railroad operations and

steam powered excursion train

o Farming operation unaffected. Application to use alternative public right of way not precluded.

Agricultural Opportunities

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o High demand for Ag land with access to water rights.

• Cadiz owns: 1,600 acres developed for agriculture; 8,000 acres additional acres permitted with local County; Up to additional 35,000 acres could also be added to permits under current zoning.

o Potential crops include:

• fruits (dates, vineyards, citrus)

• field crops (alfalfa, wheat, sudan grass, Bermuda grass)

• Biofuels (camellia, sweet sorghum and soybean).

o Property benefits: • Hot desert climate with moderate chill period in winter.• No other overlying land uses in surrounding area (good soil quality).• Access to major highway and rail transportation to reach variety of

markets.

Agricultural Opportunities

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2015 CalASFMRA Western Ag Professionals Trend Report

Imperial Valley: Good Adaptability (Produce) Imperial Valley: Average Adaptability (Alfalfa)

Palo Verde Valley: Irrigation Field CropsImperial Valley: Limited Adaptability

Ag land with access to water has traded $8K - $11K per/acre; increasing steadily over the past decade.

$ /

Acre

$

/ Ac

re

$ /

Acre

$

/ Ac

re

2007 2008 2009 2010 2011 2012 2013 2014 -

$ 2,000

$ 4,000

$ 6,000

$ 8,000

$ 10,000

$ 12,000

$ 14,000

2007 2008 2009 2010 2011 2012 2013 2014 -

$ 1,000 $ 2,000 $ 3,000 $ 4,000 $ 5,000 $ 6,000 $ 7,000 $ 8,000 $ 9,000

$ 10,000

2007 2008 2009 2010 2011 2012 2013 2014 -

$ 1,000

$ 2,000

$ 3,000

$ 4,000

$ 5,000

$ 6,000

$ 7,000

$ 8,000

2007 2008 2009 2010 2011 2012 2013 2014 -

$ 2,000

$ 4,000

$ 6,000

$ 8,000

$ 10,000

$ 12,000

$ 14,000

Agricultural Land Value

Corporate Details

Financials (@3/31/15)

SHARES OUTSTANDING = 17.7 MILLION (Nasdaq: CDZI)

CASH

o $13.5 million cash on hand; working capital through Q2 2016.

o Full funding for current construction planning activity, litigation and final certifications.

DEBT

A. Senior Secured Mortgage - $45M

o 8% Interest PIK, $35M Maturity March 2016, $11M Maturity March 2017

B. Convertible Notes - $ 60M

o Convert at $8.05/share, 7% Interest PIK, Maturity March 2018 28

For more information, visit www.cadizinc.com

[email protected]

Twitter: @Cadiz_Inc