RISILICATransforming waste into profitable products

Unrelated Challenges

• High cost

• High energy consumption

• Harmful to the environment

• Bulk waste: 145 mln tons of husk, 750 mln

tons of straw annually worldwide

• Rice husk combustion causes CO2

emission

• Waste putrefaction causes methane

emission

Rise husks utilization Amorphous silicon dioxide

(ASD) production

Preparation of rice husk/straw

Fermentation

Thermal processing,

pyrolysis

Ethanol

Organic Acids

ASD

Purity 99.9%

Risilica technology

Risilica’s

Waste

Utilization

Demand for amorphous silicon dioxide (ASD):

Market of amorphous

silica

CAGR > 5% 10++ years

(Source: Milestone

analytics);

2016 forecast for ASD world consumption

$ 6,4 B

55%of consumption

in Tire Industry

Our Initial Target Market: Tires

The tire industry is relying heavily on amorphous silica. Mainstream manufacturers (such as Pirelli) promote this application in there annual reports.

Adhesives, sealants

• Many applications

Сonstruction

• New materials

Additional markets

Competitors and advantagesCompetitors Risilica technology advantages

Utilization of rice

husks

Rice Husk is typically burned

and resulting heat converts

into thermal and electricity

energy.

5 ton of rice husk = 140 USD

Higher economic efficiency.

5 ton of rice husk yields 1200 USD at a cost of 400 USD

for a profit of 800 USD

5 tons of rice husks can get finished products only to 140

USD (according to the prices of electricity in Russia)

Production of ASD

• Low cost of the primary raw material;

• 6 to 8 times reduction of capital costs for construction

of a-Si production facilities;

• The production process is completely eco-friendly

(clean) which allows to minimize the environmental

safety costs

• reducing the self cost of both products

Strategy of the Company Development Stage I

2011-2013

• R&D

• Assembly of a large-scale experimental laboratory facility (a technological site) to work out the technology

Stage II

2014-2017

• Creation of first Proof-of-Concept factory with production volume of 3,500 tons/year ASD and Bioethanol

Stage III

2017

• Rollout of technology worldwide

• Going public

Financials assumptions

Production Profitability Analysis

Product type YieldSales

$

Costs

$Profit $

5 T

on

s R

ice

Hu

sks

Risilica

Process

1 ton of

ASD1200 400 800

Waste

utilization

1 ton of

BioEthanol300 100 200

Combined Profit 1000

Net Sales 5,25 mln USD

Costs 1,75 mln USD

In 2018 we start

to build 5

factory

Investment

Need:

15 mln

USD/factory

Net Sales by 2022

ASD:

120 mln USD

Bioethanol:

30 mln USD

2018 our proof on concept plant produces and sells

3,500 tons ASD

Capacity:

20 000 tons

ASDannually / per factory

We are looking for:

10 million USD as the 2nd round investment

for construction of a

plant and production of

high-quality

ASD & Bioethanol

Strategic partners in

each world region

1 2

Sergey Pisarenko

CEO

business angel and private investor in the project .

Responsibilities in theproject: strategic andoperational management ofthe company; search, selection and personnelmanagement; attractinginvestment in the project.

Leonid Zjubin

TEO

author and key developer of the technology.

Responsibility in theproject: technical supportand supervision; settingtargets and guidance forsubcontractors; organization andmanagement of research

and development.

AleksandrKomarov

Member of the Board of Directors,business angel andprivate investor inthe project.

Responsibilities: financialand business planning; relationships with stateinstitutions and privateinvestors; promotion &

marketing research.

Arkady Sinitsyn,

Scientific Advisor

Professor, Dr. Sciences, Ph.D.

Specialist in bioconversion of renewable raw materials and production of useful products (biofuels, organic acids, biopolymers), he is responsible for complimentary technology of biofuel production.

Kirill Kandyrin

Consultant

Assistant Professorof chemistry andphysics ofpolymers andpolymeric materials.

Responsible for preparation of formulas and test material for the tire industry enterprises.

Thank you for your attention

s.pisarenko@venova.ru

+7 910 454 6349

Sergey Pisarenko

Risilica

Investment

into a

better

Future!

Technology

- The experimental technological line is designed, assembled, tested and is operated;

- Technology is developed, scalability is proven, other technological risks are removed;

- The manufactured samples of amorphous silicon dioxide have been successfully laboratory tested

Team

- Consists of 7 professionals: CEO, experts in the field of chemistry, physics, tire industry and engineers.

- For construction of an experimental production plant we’ll attract an experienced manager and an engineering company

Intellectual property

- The technology is protected (patent No. 2488558)

- The draft patent for an invention (mode of production) is ready

- Details of the process are protected as know-how

Opportunities

- Feedstock: 750 million tons of rice produced worldwide annually give us more than 150 million tons of rice husks

- Biofuel: it is possible to combine ASD production with bioethanol production , taking byproducts of the 1st technology as the feedstock for the 2nd

We Can

Supplement 1. Green tires

• Pirelli, one of the leading world tire producers, actively promotes tires manufactured with silicone fillers from rice husk

Pirelli Annual Report for 2012, p. 86-87

Supplement 1. Green tires

Supplement 2. Possible technological schemes and byproducts

Amorphous silicon

dioxide, 99,9%

Fumed silica,

Analogous to FS-120

Bioethanol

Pyrolysis gas/heat

Liquid fertilizers

with microelements

Launching a new product.

Price: 30 000 – 50 000 RUB/ton

Price: 45 000 – 50 000 RUB/ton

Output of 1 ton of rice husk: 250 l

Price for 1 l in the EU: €1,4-1,7

With production capacity of 5000+

tons silica per year, gas can be sold

Production in proportion 1:1 to ADS.

Price: 12 000 – 15 000 RUB/ton

Current Status of the Technology

Experimental technological line

is designed, assembled and

tested

Technology is developed,

scalability is proven, other

technological risks are removed

The manufactured samples of

amorphous silicon dioxide have been laboratory tested