1. This is a game-changer John Hines Former Deputy Secretary for Water PA Department of Environmental Protection May 8, 2014

2. 2 Forward Looking Statements This presentation contains, in addition to historical information, forward-looking statements regarding Bion Environmental Technologies, Inc. (the "Company"), which represent the Company's expectations or beliefs including, but not limited to, statements concerning the Company's operations, performance, financial condition, business strategies, and other information and that involve substantial risks and uncertainties. The Company's actual results of operations, most of which are beyond the Company's control, could differ materially. For this purpose, any statements contained in this presentation that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate," projected" or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. Factors that could cause or contribute to such difference include, but are not limited to, limited operating history; uncertain nature of environmental regulation and operations; uncertain pace and form of development of nutrient (N&P) reduction market; risks of development of first of their kind Integrated Projects; need for substantial additional financing; competition; dependence on management; and other factors. Investors are urged to also consider closely the disclosures and risk factors in the Companys current Form 10-K, filed with the Securities and Exchange Commission, available at www.sec.gov.

3. Clean Water Agriculture Livestock Agriculture consumes 70% of the water used in the US Two Multi-Billion $ Investment Spaces

4. 4 Bion Overview Excess nutrients recently acknowledged by US EPA as the greatest water quality problem in the U.S. today Largest source in most watersheds is livestock/agriculture Bions technology largely eliminates the environmental impacts of large-scale livestock production, focused on nutrients ONLY technology that provides proven comprehensive treatment for wet waste stream (dairy, beef cattle and swine) Reclaims renewable energy and nutrients from the waste stream Proven; scalable; commercially-tested; 7 US, 6 international patents ____________________________________________________________________ New Integrated Projects Increased scale – reduced acreage; strategic locations – reduced transportation costs; resource and operational efficiencies Existing operations On-site treatment with scale/central processing facilities Substantially lower-cost alternative to publicly-funded downstream wastewater treatment

5. Largest cost driver: nutrient removal Current strategy: Sector Allocation to regulated point sources and storm water – regardless of costs or efficiencies NO LONGER SUSTAINABLE US Clean Water Spending 5

6. Lagoon Manure slurry Nitrogen released as ammonia gas (NH 4 ) [50%] Field Manure slurry N Run-off [25%] Crop Uptake [25%] Traditional Manure Management Practice Livestock: Largest Source of Excess Nutrients 6 Chesapeake Bay, GOM, Great Lakes, etc, etc, etc. Hypoxia from algae/phytoplankton blooms from excess nitrogen Pathogens, toxic blooms Very expensive to treat water downstream now that nitrogen is diluted with millions of gallons of water Aquifers Surface Waters Downstream Estuaries 75% N lost to the environment

7. How Big is the Problem? 7 Nutrient load 30X to 100X human waste - UPSTREAM 9 million dairy cows (12 million w/ support) 66 million swine 100 million cattle/calves 2 billion chickens and turkeys

8. US EPA now acknowledges that excess nutrients are the greatest water quality problem in the US today Increasing scrutiny of ammonia and greenhouse gas emissions, pathogens, antibiotics and hormones How Bad is the Problem? 8

9. 9 Chesapeake Bay TMDL Executive Order 13508 (May 12, 2009) US EPA TMDL: first watershed-wide TMDL Reduce 63M lbs of Nitrogen by 2025 Six states, DC Estimated cost (Bay-wide): 2009: $15B to $28B 2012: $30B to $50B Substantial penalties for non-compliance

10. $30 to $50 billion Sector allocation strategy is obsolete/unsustainable Non-point sources (agriculture) are low hanging fruit Chesapeake Bay Commission/RTI ReportReport –50% to 90% savings through nutrient trading Verified non-point source reductions fulfill mandated reduction targets Mechanism to fund non-point source treatment –Public-Private-Partnerships (PPP) – private sector competes for public funding through an RFP that funds lowest cost solutions –Highly successful precedent: Colorado River Basin Salinity Control ProjectColorado River Basin Salinity Control Project Unsustainable Cleanup Costs 10

11. 2013 PA Legislative Budget and Finance Committee ReportReport Upstream non-point source strategy (large agriculture projects) can cut costs up to 80% of previous estimates = $1.5 billion annually Pennsylvanias compliance with the CB TMDL standard is at risk as there is insufficient funding available to comply under todays existing cost structure. PA Senate Bill 994 ( Major Watershed Improvement Act) Major Watershed Improvement Act Introduced June 5, 2013 Competitive procurement program for nutrient reductions Equal access to public funding – all solutions based on cost 15 to 20 year off-take agreements with PA Passed Senate Agriculture and Rural Affairs Committee June 11 Anticipate passage of 994 or similar action in 2014 PA Legislative Initiative 11

12. Coalition for an Affordable Bay Solution Founding Members 12 www.biontech.comwww.kreiderfarms.com www.fofarms.comwww.jbssa.com www.affordablebaysolutions.org

13. Annual Cost of Upstream Alternatives 13 Bion can begin delivery of up to 2 million pounds based on full operation of Kreider 1 and 2 systems (target 2015) Source: PA LBFC Report; CB Commission ReportPA LBFC ReportCB Commission Report

14. Kreider 1: 2,000 dairy cows (system operating) Kreider 1 financed by PENNVEST (PA Infrastructure Investment Authority) - $7.8 million, non-recourse, low interest, 10 yr Anticipate Kreider 1 long-term rev agreements for 2015 Kreider 2: 7 million chickens (target development 2014/15) Kreider 1 & 2: ~2 million pounds annually at $8+ per pound per year when in full operation (anticipate 2015) Anticipate $7M to $10M annual EBITDA when Kreider 1 & 2 in full operation at 2M pounds Future Kreider expansion (Phase 3) should increase to 3 million pounds (target 2015/16) Kreider Farms Economics Pending PA SB 994 14

15. Customer: Pennsylvania 15 to 20 year guaranteed off-take agreements (per PA study recommendations) ComparablesP/E York Water (YORW) 25.5 Aqua America (WTR) 22.7 American Water Works (AWK) 20.5 Implied valuation of Kreider Project (20 P/E) Phase 1 & 2 (2M pounds) $140M to $200M Utility Revenue Model (Kreider Only) 15

16. Bion has commenced discussions that may lead to installation of Bion systems on existing and/or new dairies, beef facilities and swine farms in the Midwest and/or North Central states. The most advanced discussions currently involve an initiative by Bion in Wisconsin…The Company is actively involved in discussions with various stakeholders in Wisconsin including state and local government officials and agencies, wastewater authorities and agricultural industry entities. Bion 10Q March 31, 2014 Mississippi River Basin Healthy Watersheds Initiative Existing unmet local phosphorus TMDLs US EPA designates LA coastline impaired First step in MRB-wide nitrogen TMDL? Great Lakes Water Quality Agreement Great Lakes Restoration Initiative – US Great Lakes Restoration Initiative Great Lakes Nutrient Initiative – Canada Great Lakes Nutrient Initiative Driving phosphorus TMDLs 40 States with Livestock Waste Problem 16

17. Excess phosphorus impacting Lake Michigan New phosphorus limits established in 2010 now taking effect WI Manufacturing & Commerce estimates $4.9B to comply –Green Bay and Madison Municipal Sewer Districts facing unaffordable costs to upgrade plants and install storm water projects WI SB 547 – Clean Waters & Healthy Economy Act adopted 4/24/14 –First state program to direct significant financial resources to long term non-point source agriculture projects, like Bions –Bion in discussions with WI stakeholders – regulatory, county and municipal, and point- and non-point sources – about potential large- scale projects Wisconsin has second largest dairy herd in the US –1,265,000 head –Large potential market for Bion Wisconsin 17

18. Thousands of farms that meet Bions minimum scale thresholds* No competitors to date Dairy 44% of US dairy cows on farms over 1,000 head 5,280,000 head (including support herd) Swine 61% of US swine on farms over 5,000 head 40,260,000 head Future increased regulation (or incentives) for Concentrated Animal Feeding Operations (CAFOs)? –Ammonia? –Greenhouse gases? –Pathogens? –Antibiotics? –Hormones? Market Analysis – Potential U.S. Retrofit 18 *Not all farms in nutrient-impaired watersheds, overwhelming majority are; illustration only

19. International Initiatives 19 The Company has been pursuing these opportunities [project development] within the United States during the later stages of technology redevelopment and has recently begun activities to pursue such opportunities internationally. Bion 10Q March 31, 2013 540 dead zones worldwide Nutrients focus of international concern Livestock waste now a national security issue in China Ed Schafer, Bions Exec Vice Chairman, is former US Secretary of Agriculture and former two-term Governor of North Dakota

20. Bions technology is proven and accepted but… the SECTOR – clean water spending on non- point sources – has not yet been validated Evolving opportunity No comparables – no research Little or No Value for Technology 20

21. Bion Technology: Highest and Best Use 21 New state-of-the-art, large scale, highly-efficient livestock production facilities in strategic locations, with a minimal environmental and physical footprint, that can be integrated with dedicated food processing (and in some locations biofuels production)

22. Bion is presently involved in the very early development and pre-development activities related to its initial Integrated Project(s) in Pennsylvania. The Company is also involved in pre-development evaluations and discussions regarding opportunities for Integrated Projects in the Northeast, Midwest, and the North Central United States (dairy and/or beef). While all such discussions are still in preliminary stages, multiple meetings and discussions are ongoing with local and state level Pennsylvania officials related to the development of a Bion Integrated Project involving a major international livestock entity with existing operations in Pennsylvania. Additionally, the Company is involved in early stage discussions regarding development of Integrated Projects to meet specific needs of certain international markets (and regarding licensing our technology for use in overseas locations). Bion 10Q March 31, 2014 If an Integrated Project with a major ag player moves forward it will validate Bions technology as an economic solution, not dependent on regulatory mandate Integrated Projects 22

23. Current Beef Supply Chain Problems Cow calf operations Backgrounding on grass Further Process Refrigerated transport Further Process Refrigerated transport Market 23 Finishing Slaughter

24. Bion Integrated Project Competitive Advantages from Advanced Waste Treatment 24 Small physical footprint – reduced acreage/CAPEX Increased scale/density Co-locate processing Co-locate biofuels Non-traditional strategic locations Single-sourcing –Branding –Food safety/security Energy/resource efficiencies –Onsite production and use of renewable energy –By-products Substantially reduced transportation costs Livestock Waste Nutrients Water Energy Inputs Meat/Milk Processor Waste Livestock Bion System Bion System Bion System Biofuels Distiller Grains Waste <50 miles

25. Bion Beef Supply Chain Model Cow calf operations 25 Market Feeder stock transport Integrated Backgrounding Finishing Slaughter & Further Process Integrated Backgrounding Finishing Slaughter & Further Process Cow calf operations Low cost producer Reduced risks – improved margins

26. Short-term: sector validation = Bion validation –Non-point source spending WI adoption PA legislation International adoption –Integrated Project –Up-list to national exchange –6 to 12 months? Mid-term: system deployment/initial projects development –Initial Bion Services (retrofit) revenues –Research coverage; modeled growth based on project pipeline –12 to 24 months? Long-term: revenue ramp –Revenues from multiple retrofit projects –Integrated project revenues –Regulation; BACT –24 months plus Opportunity as We See It… 26 } Bion Services – Regulatory Mandate Economic Solution