Scaling of Algae Biomass Industry – Easy As “A, B, C” Three-Product Model As a Bridge to a Two-Product Model; Profits at Every Stage

Algae in the Advanced Bioeconomy

David Anton, COO

June 2015

This presentation contains certain "forward-looking statements” (as such term is defined in the Private Securities Litigation Reform Act of 1995), including financial projections and projections of market size and pricing, as well as discussions of strategy, each of which involve risks and uncertainties. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the Company or industry to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, among other things, potential delays in regulatory approvals of the Company’s projects and products, potential differences between estimated costs of production and actual costs of production, potential delays or increased costs of securing additional corporate and project financing, and other factors described more fully in the Company’s document entitled “Risk Factors (February 2015)"

This offering material and any other information provided or made available does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there by any sale of, interests in any jurisdictions where, or to any person to whom, such offer, solicitation or sale is unlawful.

This presentation include trademarks owned by us or others. Cellana, ALDUO, ReNew, the Cellana logo, the ReNew logos, the ALDUO logo, and all other Cellana product and service names are trademarks of Cellana in the United States and in other selected countries.

Page 2 © Cellana 2015 Why Algae?

• A unique raw material • Produced on non-arable land • Very low fresh water consumption • Combines feedstock and conversion to products into a single process.

Page 3 © Cellana 2015 Cellana Mission

Cellana’s mission is to develop and operate highly profitable commercial scale algae facilities and to establish Cellana as a leading source of algae-based products serving the human nutrition (Omega-3s, functional foods), cosmetics, animal nutrition, and biofuel markets

Page 4 © Cellana 2015 Cellana’s World-Class Partners Since Inception invested in R&D, facilities, production, product trials

Company formed; ALDUO in-license to technology ALDUO fielded technology

1997 2005  2006  2007  2008  2009  2010  2011  2012  2013  2014 

Pilot Facility Production (10+MT) ($25MM+) Ongoing Demonstration Facility Production (13+MT)

CEROS Funding ($700K) Shell JV Funding ($70MM+) Ongoing DOE / USDA Funding ($15MM+)

ABY

Page 5 © Cellana 2015 Cellana / Saltwater Algae: A Paradigm Shift

• Highest-yielding crop on earth • High-protein, high oil content • Lowest carbon, fresh water, & arable land footprints • Unique ability to cultivate diverse algae at scale (not just extremophiles) • Validated, Modular, Commercial- Ready Platform • Multi-product model; near-term product revenue at hand • Managed cash burn through non- dilutive financing

Page 6 © Cellana 2015 Highest Biomass, Oil, Protein Yields on Earth: Doubles each day; can use all of biomass vs. just seeds/oilseeds/juice

Comparison of Biofuel Feedstock Crops Sugar / Energy Content Average Starch of Oil / Sugar / Plant Biomass Oil Content Content Starch Protein Yields (% dry (% dry (boe / 1000ha / Content (MT / ha / yr) mass) mass) day) (% dry mass)

Microalgae 40 - 100+ 25 - 50%+ 15 - 25% 330 - 785+ 25 - 60%+

Soy/Soy oil 1 - 2.5 20% 18% 3 - 8 37%

Rapeseed 3 40% NA 22 23%

Palm/Palm oil 19 20% NA 63 15%

Jatropha 7.5 - 10 30 - 50% NA 40 - 100 24 - 28%

Corn 10 - 12 4% 75% 240 - 300 4 - 14%

Sugarcane 60 - 70 NA 12 - 16% 230 - 370 3 - 4%

Page 7 © Cellana 2015 Algae Considerations

• Industry is just establishing commercial scale • Algae is an agricultural crop • Strategies must be employed to protect the algae- crop protection • Areal not volumetric productivity is a key • Capital cost per area must be minimized • Energy is a key variable for cost and LCA

Page 8 © Cellana 2015 Intensive, Efficient Algae Production at the Kona Demonstration Facility (KDF) in Hawaii

Aerial View of KDF • 6-acre site in Kona, Hawaii • ~$20MM replacement cost; • ~1MM liter large-scale cultivation capacity • Produced over 13 tons of microalgae since 2010 for testing / biz dev purposes • 10+ novel strains grown at industrial scale to date • Commercially significant biomass/oil yields (15-20+ g/m2/day biomass yields) Algal oils Protein-rich algal meal

Page 9 © Cellana 2015 Proprietary ALDUO™ Technology Enables Cost Effective Productivity : Semi-sterile PBRs (in continuous mode) Inoculate Open Ponds (operated in batch mode)

High 100% PBRs

Cost <50% PBRs / >50% Open Ponds

100% Open Ponds Low

Low Risk of Contamination High

Covered by US Patents 7,770,322 & 5,541,056; similar Patents/Patents pending in RoW

Page 10 © Cellana 2015 Production Flexibility: Multiple Algae produced at Commercial Scale KDF Can Rapidly Move a Strain From Lab to Production

Algal Strains Produced at Large Scale by Cellana Duration Quantity Produced (kg) MT13A Isochrysis sp. May – June 2008 200 C088 Tetraselmis sp. July – Sept 2008 530 Sept – Dec 2008 C323 Staurosira sp. >5,000 & Oct 2009 – May 2011 Ch60 Chaetoceros sp. Dec 2007 – Feb 2008 500 C046 Desmodesmus sp. Jun – Aug, 2011 1,500 C018 Nannochloropsis sp. Dec 2012 50 KA19 Nannochloropsis sp. Mar – Aug, 2012 1,600 C870 Pavlova sp. Oct – Dec, 2012 70 KA33 Tetraselmis sp. Oct – Dec, 2012 500 KA32 Nannochloropsis sp. Feb – Sept, 2013 920 C018 Nannochloropsis sp. Sept 2013 – Present >1,000

Page 11 © Cellana 2015 Multi-Product Business Model: up to 4 Products From Each Strain Via ALDUO™ + “Conventional” Upstream/Downstream Processes

• “Off-the-shelf” ag inputs + sunlight + CO2 + ALDUO™ =

• Existing or new & improved separation/extraction techniques = + +

(aquaculture feed)

Page 12 © Cellana 2015 Commercial-Scale Off-Take Agreement with Neste Oil

• Off-Take Agreement for algae oil announced June 2013 • Neste Oil is the largest refiner of renewable diesel in the world • Multi-year off-take agreement • Commercial-scale quantities of algae oil (up to 100,000 metric tons)

• Contingencies for Cellana production Neste Oil's renewable fuel plant in Rotterdam in the capacity, EU/US sustainability criteria, and Netherlands was commissioned in 2011. other factors • Non-Exclusive for both parties • “Samples have shown that Cellana is able to produce algae oil suitable for renewable fuel production by Neste Oil.” Neste Oil started up the world's largest renewable diesel refinery in Singapore in November 2010. • “The off-take agreement with Cellana allows us access to commercial-scale volumes of cost-competitive algae oil in the future.”

Page 13 © Cellana 2015 Financial Dynamics of the Biorefinery

Page 14 © Cellana 2015 Page 14 © Cellana 2015 Cellana’s Biorefinery Business Model Builds on a Foundation of Biofuel Research to Address Additional Valuable Products

Omega-3 nutritional oils and high-value aquaculture / animal feed products are an extension of Cellana's core competency - screening, developing, and producing algae biofuel feedstock.

= oil separation $4B Omega-3 nutritional oils market 2 $1T+ fuels and energy 1 markets

$20B+ aquaculture feed / fishmeal market

$300B+ Animal feed markets

Page 15 © Cellana 2015 Flexible Biorefinery Production / Revenue Model Bioproducts Generated from the Use of the Entire Algae Biomass

891kg Total per MT* (11% yield loss) $6,928 per MT (dry weight) $82 @ $100/bbl, $0.68/kg 121kg Biocrude Oil (fossil petroleum px benchmark) 2 62kg Omega-3 Oil @ $100/kg (35% conc.) (discount to Martek DHA 1 wholesale px benchmark) $6,138

= oil separation

708kg Algae Meal

(Residual Proteins, Sugars, Minerals, Lipids, & @ $1.00/kg Micronutrients) (premium to soymeal px benchmark; discount to fishmeal $708 px benchmark)

* Reflects recovery based on initial whole algae fraction of 6% Omega-3 oils, 25% Biocrude oil, 69% Algae Meal (Protein/Sugars/Minerals/Lipids/Micronutrients), and 11% total yield loss after two separations

Page 16 © Cellana 2015 Highly Profitable Production of Algae Bioproducts Projected Revenue & Costs per MT for 88-ha. Commercial-Scale Facility in USA, 2016

Estimated 46% Gross Margin and 62% Cash Margin at current yields / costs (Higher margins / lower unit costs at larger scale and over time)

$6,928 per MT

Estimated: Gross Margin 46% Cash Margin 62% Omega-3 Oil $100 per kg (35% conc. DHA/EPA) $3,712 per MT Algae Meal $1.00 per kg depreciation Biocrude Oil $100 per bbl, $0.68 per kg

cash cost

Revenue Production cost

Other target sites around the globe identified – generally lower cost than in USA

2004+ 2004+ 2008+ 2016-2017 2019-2020 Laboratory Pilot Kona N. America, Phase 1 N. America, Phase 2 Research Facility Demonstration (88 hectares; (additional 88 hectares for 176 Facility $83MM capex; 2016 hectares total; $84MM additional (2.5 hectares) Production: ~4,600 MT) capex; 2019 Production: ~11,000 MT)

Page 18 © Cellana 2015 Scaling of Algae Biomass Industry – Easy as “A, B, C” Three-product model as a bridge to a two-product model; profits at every stage

A. Biorefineries with B. Bolt-On C. Standalone High-Value Anchor Expansions Biorefineries for Revenue / Kg Product(s) for Fuel + Feed Fuel + Feed $ Production $ Cost / Kg $4 $ 70 Biomass Yield MT / ha / yr $3 $ 60 $ $2 $ $ 50

$1 $ 40

Crude Oil Production ≤ 1 billion gpy 1-2 billion gpy 10+ billions gpy

Production cost > $2/kg ≤ $2/kg ≤ $1/kg

Algae biomass yield < 70MT/yr > 50MT/yr > 60MT/yr

Food/feed/fuel prices Low Medium High

• Algae is a highly efficient platform for both accumulating feedstock and conversion to products • Cellana’s platform is moving toward near-term commercialization • And the long-term potential is huge and achievable

or contact:

David Anton Chief Operating Officer [email protected] (650) 228-3413