A Global Product for A Global Solution Bio-coal

THE CHALLENGE With the worldwide growth of environmental awareness and support for the reduction of CO2 emissions and forest sector waste, combined with new laws and regulations, and related events are encouraging us to seek viable solutions. Logging operations often process only 30% of harvested fibre leaving 70% of fibre that is suitable for bio-fuels. That fibre is often burned or left to rot. The U.S. Energy Information Administration (EIA) notes the country will close numerous coal-fired power plants by 2020 to meet new EPA regulations. Bio- coal can replace much of the coal now burned to significantly reduce emissions. Currently there is an oversupply of hog fuel (tree bark) in B.C. The situation has created large stockpiles of tree bark to the point where producers are faced with curtailing operations. Report indicate much of the surplus is being burned. Hog fuel is a high BTU when converted into bio-coal.

THE SOLUTION Over the past 6 years, GBCE scoured the globe for a credible torrefying technology to produce bio-coal on a commercial scale to meet any customer’s specifications. It must be: • Clean • Simple • Energy Efficient • Cost Effective TECHNOLOGY GBCE acquired exclusive marketing and distribution rights to torrefying technology developed by Wyssmont Turbo-Dryer to incorporate it into its turn-key bio-coal production facility. GBCE designed its facility to be the most cost effective and reliable for both Global’s purposes and those of our customers. PARTNERS GBCE has partnered with: WorleyParsons Wyssmonth Company AltenTec Gudeit Bros Vitol First Nations UBC • Capital • Expertise • Proven fibre sources • Industrial space • Market access GBCE has also attracted several credible clients for the sale of its products. LOCATIONS GBCE is considering a number of suitable locations in various areas in British Columbia. The company has secured its first facility in Lumby B.C. with ample space to store fibre and increase its capacity. The site is fully operative including CN rail spur line. Locations in other parts of Canada and USA are also of interest. Criteria are: • Close proximity to fibre • Stable, experienced labor force • Available land • Rail & highway transportation infrastructure

THE SOLUTION - continued TRANSPORTATION GBCE has established relationships with railways, trucking companies, various ports and international shipping firms to secure the best routes and rates for its clients. GBCE bio-coal can be shipped to Europe in bulk very cost effectively. GBCE slaking process produces bio-coal “wafers” that eliminate dust and stack easily to maximize density for lower-cost shipping and transportation. OFFTAKE AGREEMENTS GBCE has signed an Off-Take Agreement with Vitol (EU), among the world’s top five trading and distribution companies in energy, natural gas and coal. GBCE has also committed to supply bio-coal to other clients in USA and Asia.

HOW GLOBAL BIO-COAL COMPARES GVC (MJ/KG) Green Chips 8-12 White Pellets 16-18 Bio-Coal 22-24 Bituminous Coal 22-26

WHAT IS BIO-COAL? Bio-Coal is created through a process that Torrefies (roasts) biomass primarily from forest harvesting operations waste-wood fibre. Bio-coal is higher in BTU values than white pellets with nearly identical physical qualities as coal thereby creating a value-added product. Bio-Coal is recognized world-wide as a bio-fuel that can help reduce harmful emissions from coal-fired power and cement plants. Densifying is optional but Bio-coal can also be pelletized, briquetted, slaked or used as is out of the processing unit. Bio-coal is favoured by coal-fired power producers because they do not have to retro-fit their facilities. Bio-coal can be manufactured from any biomass material although GBCE is focused on forest waste. Unlike raw wood pellets, bio-coal does not absorb moisture and can be stored alongside natural coal, mixed, shipped and fed to boiler just like coal.

FIBRE SOURCES GBCE can process a wide variety of low-cost fibre including: Hog fuel (bark) Mountain Pine Beetle (MPB) wood Forestry residue (forest slash) Wood chips Sawdust Wood waste (construction) GBCE has been identifying and securing fibre sources for 20 years plus. The BC Fibre Model estimated available fibre at: 27,000,000 M3 in 2013, dropping to 13,000,000 M3 by 2023, 10,000,000 M3 2025 to 2040. FORESTRY RESIDUE (ABOVE) ACCOUNTS FOR A HIGH PROPORTION OF AVAILABLE FIBRE

WYSSMONT TORREFACTION UNIT GBCE has an Exclusive License to use Wyssmont technology for bio-coal. Concluded by Noram Engineering as best torrefier viable in the market. The Wyssmont unit can tailor the Bio-Coal to any specification required by clients. The Wyssmont Turbo-Dryer Thermal Process has a 60 year track record. WorleyParsons Resources & Energy will integrate the Wyssmont system into GBCE’s Turn-Key-Plant. Wyssmont Dryer / Torrefier

Tray System in the Wyssmont Unit (2 Pilot Plants at Wyssmont (NJ) and UBC successfully tested Bio-Coal)

WYSSMONT TECHNOLOGY The WYSSMONT TURBO-DRYER® has a 60-year history of innovation and success. Some modification has been implemented to convert it into Torrefaction. It consists of a stack of slowly rotating circular trays. Biomass is fed onto the top tray. After one revolution the biomass is wiped onto the next lower tray where it is mixed, levelled, and wiped to the next tray until the cycle is completed. The system operates in the absence of oxygen at elevated temperatures, which prevents oxidation of the biomass. As the biomass dries, the water contained within it vaporizes and maintains the inert environment in the torrefier.

ALTENTECH D10 Dryer Robust, reliable & proven Can process high-moisture feed stocks such as hog fuel. Can process hog fuel at Watson Island with 73% moisture. Energy efficient

REDUCING GHG EMISSIONS Each GBCE bio-coal plant producing up to 320K tonnes /year reduces GHG emissions by 704K tonnes of CO2 by displacing fossil coal.

ADVANTAGE OF GBCE “Exclusive Rights” to Wyssmont Technology in Canada and major U.S. States. Process any type of fibre. Long-term fibre supply. Long term Off-Take Agreements. Low transportation costs to destination. Our bio-coal can be mixed, shipped and fed to the boilers without any modification to power plants. Professional and experienced Management Team. Environmentally friendly. Excellent payback 1.7 years.

GLOBAL BIO-COAL ENERGY INC. For Additional Information GLOBAL BIO-COAL ENERGY INC. GUINNESS TOWER 1050-1070 WEST HASTINGS ST. VANCOUVER, BC V6E 2E9 Tel: (604) 683-7955 Fax: (604) 683-7970 Email: info@globalbiocoalenergy.ca www.globalbiocoalenergy.ca