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Asia Bio-Chem Group

September 2009

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Forward Looking Information Statement

The contents of this presentation contain statements that may constitute “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements may include financial and other projections, as well as statements regarding future plans, objectives or economic performance, or the assumptions underlying any of the foregoing. Forward-looking information involves significant risks, assumptions, uncertainties and other factors that may cause actual future results or anticipated events to differ materially from those expressed or implied in any forward-looking statements and accordingly, should not be read as guarantees of future performance or results.

Actual results, performance or achievement could differ materially from those expressed in, or implied by, any forward-looking statements made and, accordingly, investors should not place undue reliance on any such forward-looking statements. New factors emerge from time to time, and it is not possible for management to predict all of such factors and to assess in advance the impact of each such factor on Asia Bio-Chem’s business.

The agents and the agents’ counsel assume no responsibility or liability of any nature whatsoever for the accuracy, adequacy or completeness of the publicly available information or as to whether all information concerning the Company required to be disclosed by the Company has been generally disclosed. The agents’ counsel and the Company's counsel are acting as counsel to the agents and the Company, respectively, and not as legal counsel to the subscriber. The agents have not engaged in any independent investigation or verification with respect to any of the information concerning the Company. Prospective purchasers are responsible for their own due diligence investigation in respect of any investment in the Company.

Investment Highlights

• Surging demand for agriculture products

• Competitive advantages

– Raw material supply

– Proximity to transportation and infrastructure

– Labor and capital costs

• Track record of growth and profitability

• Well defined growth strategies

• Management has successful operating experience with extensive industry and government relationships

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Company Overview

• Manufacturer and distributor of corn starch and related products in China with first plant in Liaoning Province (4th largest producer of corn in China)

• Established in 2003

• 333 employees going to 850

• First plant processing 300,000 tones/year at full capacity

• Second plant under construction to process 600,000 tones/ year

• Completed a $30 million private placement in June 08

• Listing on TSX Venture Exchange (Symbol: ABC)

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Industry Overview

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Industry Overview

• Global corn starch industry is over 80 million tones/year representing over $50 billion in revenues

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Industry Overview

• China is the second largest producer of corn in the world

• Industrial processing in China consumes 40 million tones of corn /year

• Starch production has grown by 20% per annum

China Corn Starch Production(000's tonnes/year)

0200

400600800

1000

120014001600

18002000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

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Chinese Market Consolidation

1996 2006

# of producers with over 50,000 tonnes/year 10 37

# of producers with over 200,000 tonnes/year 0 19

# of producers with over 1 million tonnes/year 0 4

Chinese corn processing industry is in early stage of development:

• Only 4 companies with over 1 million tones /yr of capacity

• No major multinational are significant players in China

Asia Bio-Chem expects to be the 5th largest producer in the PRC by the end of 2009

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Uses for Corn Starch in China

Sweeteners

Food(Soft drinks, beer,

dressings, confectionary goods, children’s vitamins)

Pharmaceutical, industrial, feed, food (Noodles,

pudding, baked goods, adhesives, detergent, MSG,

animal feed, antibiotics)

glucose, fructose, malt syrup

dextrin, citric acid, MSG, lactic acid,

lysine

alkali starch, acified starch,

sorbitol, maltitol, mannitol

Fine chemicals, pharmaceuticals (Toothpaste,

cosmetics, plastics)

Food, textile, pulp and paper

(Textile coatings, paper coatings)

Other Fermentation

Products

Modified Starch

Polyols

9.7 million t/yr 6 .6million t/yr 1.7 million t/yr 1.2 million t/yr

S t a r c hS t a r c h

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Company Operations

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Location

ChangTu County

Beijing

2 Plants

• Existing plant in ChangTu, Liaoning

• New Plant in Zhaoyuan, Heilongjiang

Advantageous location for:

• Abundant supply of corn

• Transportation

ZhaoyuanCounty

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Products

Starch– 65% of revenue, 72% of volume– Textiles, food additives, chemicals,

plastics, pharmaceuticals, biofuels

Germ– 12% of revenue, 6% of volume– Cooking oil, margarine, mayonnaise,

soaps, and a variety of other products

Gluten – 16% of revenue, 8% of volume– pork, poultry and cattle feed

Fiber – 7% of revenue, 14% of volume– cattle feed

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Changtu Facility

Corn StorageProcessing equipment

74 m2 Laboratory

16,000 m2 Manufacturing Plant

• Constructed in 2003

• 300,000 Tones per annum processing capacity

• Operating at full capacity

• Includes waste water treatment facility

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Customers

• Over 30 customers • 7 of top 10 have been customers for over 3 years• None > 10% of revenue• Customers are in high growth industries

Our Customers Manufacture:

Food products 44%

Animal feed 25%

Pharmaceutical 14%

Pulp and paper 3%

Trading and other 14%

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Growth Strategy

• Build Capacity in Starch

• Expand Customer Base

• Become a top player in market

Phase1:

Phase2:

• Diversify Product base

• Add technology and/or distribution thru: Acquisitions, JV, Strategic Partnerships

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Daqing Facility

• 600,000 Tones /y processing capacity (one of largest in PRC)

• Heilongjiang Provincial Government has coordinated the local Railroad Bureau to extend the railroad into our plant at its cost.

• HLJ Provincial Government has also coordinated with the local Electricity Bureau to extend the grid into our plant at its cost.

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Daqing Facility

• 480,000 M3 parcel of land adequate to double the plant size

• The Heilongjiang Provincial Government is promoting the development of a Bio Chemical Industrial Park based on our Daqing Plant in the Province.

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Daqing Plant

Rationale

1.Favorable location (limited local competition and low corn costs)

2.Acceleration of our expansion of capacity

3.All permits and licenses are in place

4.Relationships with a supportive local government

5.Adds key project management staff

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Financial Overview

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Financial Performance

($000 except volumes)FYE

31/12/05FYE

31/12/06FYE

31/12/07FYE

31/12/081H

30/6/09

Volume Production (tones/year)

167,265 230,617 273,735 279,048 129,821

Revenues $39,279 $56,331 $75,898 $84,449 $42,337

Gross Profit $8,899 $12,638 $18,381 $18,486 $5,988

Gross Margin 22.7% 22.4% 24.2% 21.9% 14.1%

• Improved efficiencies has provided 29% average growth • Historically stable margins • Softer market conditions and government purchases of corn in North East China in Q4 08 and Q1 09 have created margin pressure

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Product & Input Pricing

Historically there has been a consistent relationship with our product prices and the price of our major input, corn.

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Product & Input Spread

Seasonally higher margins were not experienced in late 08 due to PRC Government regional purchasing of corn in North East China

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EBITDA and Earnings

• 21% average growth in EBITDA*• Post 2007 additional cost including: Public company costs, Daqing startup costs and taxation

($000 )FYE

31/12/05FYE

31/12/06FYE

31/12/07FYE

31/12/08H1

30/6/09

EBITDA $8,207 $11,433 $19,498 $11,691 $921

Adjusted EBITDA *

$8,207 $11,433 $16,739 $14,361 $3,072

Tax $2,399 $1,544 $627 $1,896 $222

Net Income $4,869 $8,998 $18,227 $8,723 ($407)

* Adjusted for $2.7mm stock-based compensation charge in 08 ($2 .2mm in 1H 09) and $2.8mm in foreign exchange gain and gain on sale of equipment in 07

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Balance Sheet & Capital Structure

As at June 30, 09

Cash $10.3 million

Inventory $2.9 million

Net Debt $14.2 million

The Company has recently secured long and short term debt facilities :

• RMB 35 million ($6.6 million) Working Capital line from China Construction Bank

• RMB 100 million ($18.9 million) Long term loan from China Construction Bank

• RMB 100 million ($18.9 million) Long term loan from Zhaoyuan Government (1% interest)

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Daqing Construction Summary

Completion of the Daqing plant will be financed with two term loans, cash and equipment vendor financing

2008 2009 2010

2009 obligations

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Balance Sheet & Capital Structure

Current Shares Outstanding 76.8 million

Fully Diluted 88.7 million

Market Capitalization (at $0.86 price) $ 66 million

Enterprise Value $ 67.9 million

Shareholder Equity (Book Value/sh) $ 88.4 million ($1.05)

Comparables

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Asia Bio-Chem trades at a significant discount while maintaining superior gross margins

  CurrencyShare Price

Market Cap Ent. Value   %GM 08 %GM H1   2008 P/E 2009 P/E 2010 P/E  

International Comparables  

Archer Daniels Midland US$ $28.03 17,996 24,645 5.9% 3.3% 9.2x 11.9x 10.5x  

Corn Products Intnl US$ $29.55 2,206 2,873 17.9% 11.7% 7.1x 15.8x 12.1x  

Bunge US$ $65.17 8,637 15,730 7.7% 2.6% 8.3x 12.2x 9.8x  

average 8.21 13.3 10.8  

   

   

China Comparables US$ US$  

Global Bio Chem HK$ 1.99 595 1,145 19.9% 12.3% 4.2x 9.0x 7.4x  

China Starch Holdings RMB 0.83 280 248 12.4% 8.8% 7.4x 8.3x 5.9x  

Xiwang Sugar RMB 2.00 219 330 10.4% 3.7% 6.1x 25.0x 10.5x  

average 9.85 13.7 8.0  

   

Asia Bio Chem   0.70 53.7 67.9   21.9% 14.0%   5.0x 10.0x 2.1x 

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Investment Highlights

• Surging demand for agriculture products

• Track record of growth and profitability

• 300% growth within 6 months

• Management has extensive operating expertise in China with strong customer and government relationships