“This is a game-changer” John Hines Former Deputy Secretary for Water PA Department of Environmental Protection April 26, 2013

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 Company’s current Form 10-K, filed with the Securities and Exchange Commission, available at www.sec.gov.

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

____________________________________________________________________ Bion Overview Excess nutrients recently acknowledged by US EPA as the greatest water quality problem in the U.S. today – livestock/agriculture Bion’s technology largely eliminates the environmental impacts of large-scale livestock production, focused on nutrients ONLY technology that provides 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 patents + international ____________________________________________________________________ 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

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

Sector Allocation Ignores Largest Source Point-Source: 20 to 30% of load Regulated since 1972 Currently removing high levels of N Increased removal rates = last mile cost Non Point-Source: 70 to 80% of load Livestock is largest contributor Largely unregulated Significantly lower removal costs Result: we discharge very clean (and very expensive) water into already polluted water – Chesapeake Bay, GOM, Great Lakes

75% N lost to the environment Livestock Largest Source of Excess Nutrients Traditional Manure Management Practice 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 Nitrogen released as ammonia gas (NH4) [50%] Manure slurry 75% N lost to the environment Lagoon Manure slurry Field N Run-off [25%] Aquifers Surface Waters Downstream Estuaries Crop Uptake [25%]

How Big is the Problem? 12 million dairy cows 66 million swine 100 million cattle/calves 2 billion chickens and turkeys Nutrient load 30 to 100X human waste US EPA: Excess nutrients are the greatest water quality problem in the US today Increased scrutiny of ammonia and greenhouse gas emissions, pathogens, antibiotics and hormones

75% N lost to the environment Liability to Asset: Separate and Aggregate Traditional Manure Management Practice Lagoon Manure slurry Field Crop Uptake [25%] 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 N Run-off [25%] Nitrogen released as ammonia gas (NH4) [50%] Aquifers Surface Waters Downstream Estuaries 75% N lost to the environment

Chesapeake Bay TMDL Executive Order 13508 (May 12, 2009) US EPA TMDL: Total Maximum Daily Load Reduce ~75M lbs of nitrogen per year by 2025 Estimated cost (Bay-wide): 2009: $15B to $28B 2012: $30B to $50B

28 million pounds short PA’s TMDL Compliance 31 million pounds of nitrogen annually by 2025 Tier 1 municipal treatment plant upgrades completed 3 million pounds of nitrogen $1 billion CAPEX $15 million annual O&M $35 per pound annual cost 28 million pounds short

PA Legislative Study Report (Jan 2013) PA Legislative Budget and Finance Committee Access lower-cost upstream solutions (primarily livestock) through a competitively-bid RFP program Cost savings up to 80% of previous estimates = several $billion in tax payer savings Greater value in upstream benefits to interior PA waters and communities AT NO ADDITIONAL COST “Absent the implementation of cost-cutting measures, Pennsylvania’s compliance with the CB TMDL standard is at risk as there is insufficient funding available to comply under today’s existing cost structure.”

Annual Cost of Upstream Alternatives Bion can begin delivery of up to 2 million pounds based on full operation of Kreider 1 and 2 systems (target 2014)

Coalition for an Affordable Bay Solution www.affordablebaysolutions.org Support the creation of a competitively-bid nitrogen procurement program in Pennsylvania Capture benefits outlined in PA Legislative Study Open to all sources: public and private; regulated and unregulated Chesapeake Bay Total Maximum Daily Load (TMDL) compliance cost can be reduced by as much as 80% Upstream treatment strategy benefits Reduced cost for freshwater compliance Cost-avoidance of future treatment of nitrate-contaminated aquifers Improved public health and safety Local economic activity – recreation, agriculture, property values Bids will be ‘scored’ to reflect value of upstream benefits Coalition head: Ed Schafer, former Secretary of the USDA and two-term Governor of North Dakota, currently Bion Vice Chairman Introduction of enabling legislation expected in one to two weeks

Coalition Founding Members www.biontech.com www.kreiderfarms.com www.fofarms.com www.jbssa.com

Kreider Farms Economics Kreider 1: 2,000 dairy cows (operating) Kreider 1 financed by PENNVEST (PA Infrastructure Investment Authority) - $7.8 million, non-recourse, low interest, 10 yr Anticipate Kreider 1 revenues Q3/Q4 2013 Kreider 2: 7 million chickens (target 2013/2014) Kreider 1 & 2 – 2 million pounds annually at $8+ per pound per year when in full operation 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)

Utility Revenue Model (Kreider Only) Customer: Pennsylvania 15 to 20 year guaranteed off-take agreements (per PA study recommendations) Comparables P/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 Phase 1,2,3 (3M pounds) $260M to $320M Kreider CAPEX (Bion) $15M PA opportunity 15M to 20M pounds

U.S. Watershed Model US EPA: Chesapeake Bay will be a model for watershed nutrient management in US Great Lakes: ~300 million pounds of nitrogen Mississippi River Basin: ~1 billion pounds Bion is “poster child” for Public-Private Partnership strategy supported by US EPA Bion’s Kreider Farms nitrogen reductions verified under US EPA-approved nutrient trading program Bion was a panelist on US EPA’s inaugural national water quality trading workshop – only representative of private sector solutions

Market Analysis – Potential U.S. Retrofit Thousands of scale-suitable farms* 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 International opportunities No competitors to date Increased future regulation of Concentrated Animal Feeding Operations (CAFOs)? Ammonia? Greenhouse gases? Pathogens? Antibiotics? Hormones? *Not all farms in nutrient-impaired watersheds; illustration only

Economic Benefits to Agriculture New revenue sources – environmental incentives Asset recovery: by-products Renewable energy High-quality stable fertilizer Single-cell protein product – animal feed Aqueous soluble nutrient stream Clean water for reuse “Sustainable” branding Reduced acreage requirements Relocation or expansion absent land acquisition Environment wins; taxpayers win; farmers win

Bion Technology: Highest and Best Use 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)

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

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

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

Bion’s Integrated Projects Industry generally unable to obtain permits since 2000 Kreider full Water Quality Management Permit has the industry’s attention – Bion now has the key to gate Increase annual EBITDA returns by five percentage points (or more) over existing industry metrics IP’s with scale and attributes described are only possible today utilizing Bion’s patented and proprietary technology Preliminary and on-going discussions with several regionally-, nationally- and internationally-known food producers, processors, and distributors

Investment Criteria Paradigm Shift – nitrogen reductions 50% to 90% cheaper; Integrated Projects the logical next step in production efficiencies Technology validated – third generation, scalable, proven, accepted Strong IP portfolio Very large, addressable market with substantial barriers to entry Recognized industry thought leader Strong management team – Exec Vice Chrmn: Ed Schafer, former US Sec. of Agriculture and two-term Gov of North Dakota At the technology and business inflection point – heavy lifting done (tech accepted, policies evolving); anticipate revenues in 2013 Valuation: $34M @ $2.00 ($55M FD) – Kreider projects alone anticipated to produce $7M to $10M operating cash flow (EBITDA) Primary risk: timing Trades OTC BB/QB: BNET (seek up-list this summer)