Future Fuels – Adviser Presentation January 2014.

Future Fuels – Adviser Presentation

January 2014

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Investment Benefits

A low risk opportunity to invest in a British Clean Technology business which has raised over £130 million to date, owns a $220 million ethanol plant in Virginia, USA as well as fully permitted land, with constructions works underway, to build an ethanol plant in the UK

For every £1 you invest in Tranche 3a, the Capital Allowances the LLP is entitled to should allow you to reduce your tax liabilities immediately by £1 in the current (2013/14) tax year (subject to your level of taxable income)

The reduction in your tax liabilities should effectively provide you with 100% capital protection for your investment

These tax allowances are entirely statutory and based only on actual expenditure incurred in acquiring c. £115 million of plant and machinery in the 2012/13 tax year

An expected annual post tax rate of return of 44.1%, based on the assumptions regarding the performance of the US plant alone

£1 invested today should return you £2.30 (post tax) over the next eight years. The equivalent pre-tax return, assuming a top rate taxpayer and 45% tax rates, is £3.37

Profits should start to be distributed following the 2014/15 tax year There is potential for additional profits through the build and operation of the UK site

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Key Project Milestones

2006 – Project begins Jan 2008 – FCP becomes involved Dec 2012 – offer to acquire 220m litre ethanol plant in USA March 2013 – Acquired Hopewell plant July 2013 – A strategic review of best outcomes for the project October 2013 – Project focus to re-commission US Operations October 2013 – Budget & timetable established for recommissioning November 2013 – CEO appointed; structure established December 2013 – Vireol Bio Energy LLC incorporated January 2014 – Initial staff (18) join February / March – Finalise recruitment, commission key plant items April – plant start-up

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Current Project Focus

Plant in excellent condition Expert counterparties identified and negotiations concluding US ethanol sector is strong:

legislative requirement of c.13.2 bn gallons of corn ethanol in 2014; & c.800m - 1bn gallon export opportunity

Total productive capacity in US c. 13.5 – 14 bn gallons (so market balanced) No material supply increase in the US since 2010 and none anticipated Strong local support and demand in Virginia US plant could produce an annual EBITDA of $32m (for around $10m of restart

costs) based on historic 3 year ethanol / 5 year corn prices

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Key actions for recommissioning

Recruitment of staff well underway 18 staff currently employed (inc. CFO, Safety & Quality Mgrs) Balance (c.20) to join in February

Plant condition remains as expected (very good) Katzen (technology providers) assisting VBE LLC re recommissioning Main contracts (corn supply / DDGS offtake; & ethanol offtake) well advanced Finalisation of marketing strategies in late February / early March Corn procurement to begin in March Key items of equipment brought to operational readiness through March Plant scheduled to begin production in April

The project is now focused on bringing the US plant into operation as quickly as possible

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Grain storage already operational

Grain Storage

Ethanol Storage

Grain Delivery

Fermenter Tanks

Stillage TanksDryers

Multi-track rail sidings

Distillation Columns

Control Building & Workshop

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Future Fuels LLP owned US Site

Grain Storage

Ethanol Storage

Grain Delivery

Dryers

Multi-track rail sidings

Distillation Columns

Control Building & Workshop

MillingCooling Towers

Offices

DDGS Store

Stillage Tanks

Evaporator

Fermenters

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Commercial overview

US$11m funding required Plant will be debt free Strong demand for ethanol (Mandate,

export, E15 & E85) Supply & demand balanced Corn prices have fallen dramatically

(<$4.20 / bushel) Attractive operating margin (ethanol &

DDGs less corn) State/City support (including from

Governor & Sec. Of State for Agriculture)

Local markets for supply and offtake for all products on strong commercial terms

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Projected returns from US plantBase Case: Ethanol – 3 year average price Corn – 5 year average price Sale at 5 x EBITDA

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Additional activity

The Technical Centre at Grimsby will continue to be built and rented. Initial works by Kier are underway

Alternative uses for the UK land will be considered if they produce income and do not prohibit a build of the intended ethanol plant

Corn storage & handling facilities at US plant already operational through short-term lease (until needed by the plant)

Additional opportunities identified to enhance revenues

Corn spinning – to produce biodiesel

Additional storage capacity

Development of E85 gas station

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Funding for Tranche 3A & 3B

Tranche 3A Initial requirement of $11,000,000 (incl. Contingency £2.5m) for re-commencing

operations These funds are required according to a cash flow plan over the next 3 months It is anticipated that capital allowances with a cash value equivalent to £7.8m

are available in 2013/14 The Tranche 3A “raise” is at an advanced stage

Tranche 3B An additional £5.2m will be raised for UK operational costs and contingencies Tranche 3B benefits from capital allowances of £4.2m (2014/15) and £1m

(2015/16) The LLP means to raise Tranche 3B by Q1 2014

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Financial appraisal of Tranche 3A & 3B

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Case Study – Tranche 3A

This investment opportunity is not suitable for ordinary retail investors. It is a high risk investment which is illiquid and should only be promoted to high net worth, sophisticated and professional investors. Further details are set out in the relevant Information Memorandum. Investors are recommended to seek professional advice. Issued by Future Capital Partners (FS) Limited which is authorised and regulated by the Financial Conduct Authority.

The values used in this presentation are based on commercial principles and financial models that make certain assumptions regarding the tax treatment of the overall project and certain individual elements within that project. The tax position of the legal entities within the project is subject to a final opinion being agreed with our advisers and may be subject to alteration from the assumed treatment in this presentation. It is important that cross border businesses are correctly structured in order to avoid double taxation. Whilst we consider that the calculations used to support this presentation have been prepared with due care and diligence and in line with advice received to date, they are subject to further adjustment once the final opinion has been received.

Important Information

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