Volumetric Production Payment 2014

A DIVERSIFIED GLOBAL RENEWABLE ENERGY PRODUCER

DELTA GLOBAL AT A GLANCE

! Global provider of renewable energy delivered in CAPESIZE quantities to foreign and domestic markets ! BiofuelNRG biomass, manure, ag waste, wood waste, etc. Variable feedstocks ! BiohydrogenNRG solar steam assisted maglev floating shaft DC (perm mag) generator ERCOT ~ SOCAL ! BiocarbonNRG torrified powder zero Mercury, zero Arsenic, zero Heavy Metals ! BiogasolineNRG small scale facilities 1-5MM Gal/yr ! BiosourceNRG torrified powder and Biogasoline ! BiocoalNRG torrified powder and interstate electrical sales

GLOBAL PRESENCE

THE AMERICAS 5 LOCATIONS 2/CANADA

EUROPE, AFRICA AND MIDDLE EAST CO-FIRED 10% - 25%

ASIA-PACIFIC CO-FIRED 10% - 50%

MINIMATA TREATY APRIL 2015

Ban on Hg, As, Heavy Metals

Fixed Rates of ReturnRENEWABLE/ALTERNATIVE ENERGY COMMODITIES

! High Yield ! BTU convertible ! EFP ! Creation Unit

conversion ! Redemption Unit

conversion ! BTU/Forex ! VIX benchmark

! Energy Trading ! Derivative Finance ! Derivative Risk

Management ! Hedge Book

RestrucTuring ! 12% US depletion

allowance or ! Liquid H2 payments

■ FIRPTA ■ Volumetric Production

Payment ■ UPSTREAM equipment

rentals ■ Real Estate rentals at

each project location ■ 10% EU tax free return

Delta Global ETC

Investor Pools

Pool "D" Pool "B" Pool "C" Pool "A"

* RECs Trading, PJM and WECC ■ Power & Acquisition (Renewables & Fossil) ■ Real-Time Desk Services ■ Power Plant Hedges ■ Options, Derivatives ■ 15% taxable

Derivative Finance Options "  VOLUMETRIC PRODUCTION PAYMENT ( VPP) "  MODIFIED VPP STRUCTURES "  PREPAYMENT (PREPAY) STRUCTURE

VPP OVERVIEW

Physical BTU Equivalent Market/Index

Fixed $

Floating $ Contract Volume

VPP Proceeds

Floating BTU volume

Floating $

SEF HEDGE PROVIDER

Pool Investor

! A Volumetric Production Payment (“VPP”) is a conversion tool whereby a specified BTU volume is delivered to the Pool Investor (fixed) for a specified future position (floating)

! A Delta Global Structured VPP is a REPO of future hydrocarbon production and is conveyed through the swap of a limited volumetric BTU equivalency

! In exchange for the VPP interest, the Counterparty contributes margin or eligible collateral and accepts in-kind BTUs marked-to-future market for upfront option to trigger conversion/redemption

! When the total specified volume is created by Producer and available to Pool Investor(s) the fractional VPP terminates and the convertible interests are exchanged bespoken, notionally adjusted, or Fx reconciled

Modified VPP Structure – Delayed Start VPP Delayed Start VPP Reserves Profile

! Delayed Start VPP would allow company to receive cash proceeds on day 1 but begin delivery under the VPP at a later date

! Delayed delivery is attractive for fields with existing production and additional development opportunities

! The modified structure would generate capital for the development upfront, but allow the deliveries to coincide with production under the new development project

! Company would thus retain a share of the field’s production at all times, assuming development stayed on schedule

Modified VPP Structures ! Any number of modified VPP structures enhance the advance rate/

conversion rate/redemption rate and mitigate operational risks. These in-kind creation/redemption trades include:

! Volume Limited ! IRR/ROI Limited ! PDNP/PUD adjustment of iNAV through BTU Facility swapped/collateral

substituted in-kind with VPP trades ! Pool "D" Structures where VPP Counterparty on bespoken swap is

responsible for Opex and Capex related to VPP volumes

Prepay Swap Transaction Example ! A Prepayment (‘Prepay’ ) is a in-kind collateral substitution tool whereby Producer

hedges a specified volume for a fixed tenor with a financial swap which is then discounted and margin/collateral is advanced to the Producer (fixed/floating or floating/fixed)

! Preferred Derivative Tool for BTU Arbitrage Transactions ! Transaction Size: $50,000 US - $4,000,000 US +

LOE HEDGE PREPAYMENT

Company X

Physical Market

Proceeds

Floating $ Floating $

Fixed $

Biomass Powder Floating $

Prepay Details Prepay Reserves Profile Producer hedges volumes to cover LOE in case

prices drop Producer puts/calls upside on unhedged volumes. Producer puts/calls the floating price each month on the prepay volumes Producer may retain upside or downside position/leg Producer may retain COPAS overhead on operated properties Producer EFPs the floating price each month on the prepay volumes LOE hedges are settled monthly SEF/Option Writer for "fixing" of all BTU assets Select Counterparty is responsible for all Operating Expenses and Taxes

Advantages ADVANTAGES OF VPP OVER SENIOR CONFORMING DEBT ! Higher Advance rate ! Term Financing ! Accelerate ordinary income to capital gains treatment (VPP only) ! Able to monetize and hedge longer tenor ! Takes advantage of the contango/backwardation in forward/futures markets ! Document Light process, with average structure execution time of approximately 3-6 weeks ! Higher Advance rate ! Term Financing ! Transacted under an ISDA agreement ! Able to execute on smaller transaction sizes ! Easy structure to unwind, collateral substitute, in-kind or like kind exchange or pay off and

redeem ! No Facility Fees ! Limited Financial Covenants

Commodity/BTU Portfolio Management ADVANTAGES OF VPP PREPAY MODIFICATIONS

! Company retains hedge management ! Producer retains operational and management control ! Potential Tax Benefits disproportionately allocated ! Counterparty credit risk mitigated ! Average Swap Fees of 2.5% - 3% plus expenses ! Average closing time of ~ T+3 converted to STP ! The commodity market is currently a buyers market !  Algo trading platform volume swings from development premium ! Auction strike prices pegged to benchmark values of exchange traded

VPP and Prepayment Approval Process Start

BTU Reserve Engineering Title Opinions Physical Marketing Contracts Financial Operating Statements

CPO Delivers concise reports of engineering analysis, weather derivatives analysis and technical due diligence

Compliance/ Risk Management approves transaction structure and advance amounts

Bespoken Swap of BTU equivalence is a binding commitment

VPP/Prepay Legal Documentation Completed SEF funds VPP/

Prepay

Contacts:

International Forex Finance Group, Ltd. Houston, TX

(832) 289 5669

Http://internationalforexfinancegroup.simdif.com