San Juan Bioenergy Through construction of a vertically integrated oil extrusion and biodiesel production facility in the Four Corners area of Colorado,

San Juan Bioenergy

Through construction of a vertically integrated oil

extrusion and biodiesel production facility in the Four Corners area of Colorado, San Juan Bioenergy seeks to promote a strong agricultural sector, improved national security, air quality benefits, and continued access to

renewable fuels for a sustainable economy.

Marketing / Crop Contracting Region

• Core Area: ~240k dry, plus 110k irrigated acres

• E. Utah: 80k irrigated acres, higher elevation

• NW New Mexico: 80k irrigated acres, lower elevation

• San Luis Valley: 100k+ irrigated acres, growing water limitations

• Uncompahgre River Valley: lower elevation

San Juan Biodiesel Business Plan

• Initiate operations selling 90% sunflower oil into food markets

• 2.5 million gallon per year facility in Dove Creek, initiating operations at half capacity

• Approx. 60k acres of crops required for full capacity• Expansion to 5.0 mmgy possible in the future• Slowly begin biodiesel production to ensure quality

critical to the industry’s success• Move into greater biodiesel production with additional

feedstocks and right market conditions

Crop Yield Basis Price Gross Net

Sunflower 900 lbs/acre ’08 Offer 18.0 ¢/lb. $153 $49

Wheat 16.5 bu/acre Dec. ’07 7.5 ¢/bu. $124 $38

Beans 500 lbs/acre Dec. ’07 $28.0 ¢/lb. $140 $23

Dryland Crop Comparisons

Crop Yield Basis Price Gross

Sunflower 2400 lbs/acre ’08 Offer 14.0 ¢/lb. $432

Oats 90 bu/acre Dec. ’07 $3.36/bu $302

Irrigated Crop Comparison

Crop Yield Basis Price Gross

Sunflower – Dry

658

lbs/acre

Projected 2007 price

15.0 ¢/lb. $98

Beans – Dry XXX lbs/acre

Dec. ’07 price $28.0 ¢/lb. $XX

Wheat – Dry XXX bu/acre

Dec. ’07 price 7.5 ¢/bu. $XX

Dolores County Year 2007 Crops

• 10,000 acres contracted at 14.0¢/lb. w/ oil sales premium up to 15.0¢/lb.

• ~7,000 acres harvested

Feedmeal

Meal Protein Fat Price Index Projected Price(exc. delivery)

Soybean 48% 1% FOB Midwest $351/ton (17.5¢/lb.)

+ delivery

Sunflower

(partially dehulled)

35% - 44%

10% 80%-100% soymeal + delivery

$281/ton (8.8¢/lb.) – $351/ton (17.5 ¢/lb.)

+ delivery

• Sunflower meal excellent for dairy and beef cattle, horses and sheep.

• Lower blends required for swine and poultry.

Questions?

Jeff Berman, Project Manager:970-422-2025, [email protected]

Dan Fernandez, CSU Dolores County 677-2283, [email protected]

www.sanjuanenergy.com