ETF SECURITIES – TORR POWDER PRODUCER DERIVATIVE FINANCE Volumetric Production Payment 2014

A DIVERSIFIED GLOBAL RENEWABLE ENERGY PRODUCER DELTA GLOBAL AT A GLANCE  Global provider of renewable energy delivered in CAPESIZE quantities to foreign and domestic markets  BiofuelNRG biomass, manure, ag waste, wood waste, etc. Variable feedstocks  BiohydrogenNRG solar steam assisted maglev floating shaft DC (perm mag) generator  BiocarbonNRG torrified powder zero Mercury, zero Arsenic, zero Heavy Metals  BiogasolineNRG small scale facilities 1-5MM Gal/yr GLOBAL PRESENCE THE AMERICAS 5 LOCATIONS 2/CANADA EUROPE, AFRICA AND MIDDLE EAST CO-FIRED 10% - 25% ASIA-PACIFIC CO-FIRED 10% - 50% MINIMATA TREATY APRIL 2015 Ban on Hg, As, Heavy Metals

Fixed Rates of Return RENEWABLE/ALTERNATIVE ENERGY COMMODITIES  High Yield  BTU convertible  EFP  Creation Unit conversion  Redemption Unit conversion  BTU/Forex  VIX benchmark  Energy Trading  Derivative Finance  Derivative Risk Management  Hedge Book RestrucTuring  12% US depletion allowance or  Liquid H2 payments ■FIRPTA ■Volumetric Production Payment ■UPSTREAM equipment rentals ■Real Estate rentals at each project location ■10% EU tax free return Investor Pools Pool "D"Pool "B"Pool "C"Pool "A" * RECs Trading, PJM and WECC ■Power & Acquisition (Renewables & Fossil) ■Real-Time Desk Services ■Power Plant Hedges ■Options, Derivatives ■15% taxable

Derivative Finance Options VOLUMETRIC PRODUCTION PAYMENT ( VPP) MODIFIED VPP STRUCTURES PREPAYMENT (PREPAY) STRUCTURE

VPP OVERVIEW Physical BTU Equivalent Market/Index Fixed $ Floating $ Contract Volume VPP Proceeds Floating BTU volume Floating $ HEDGE PROVIDER Pool Investor  A Volumetric Production Payment (“VPP”) is a conversion tool whereby a specified BTU volume is delivered to the Pool Investor (fixed) for a specified future position (floating)  A Delta Global Structured VPP is a REPO of future hydrocarbon production and is conveyed through the swap of a limited volumetric BTU equivalency  In exchange for the VPP interest, the Counterparty contributes margin or eligible collateral and accepts in- kind BTUs marked-to-future market for upfront option to trigger conversion/redemption  When the total specified volume is created by Producer and available to Pool Investor(s) the fractional VPP terminates and the convertible interests are exchanged bespoken, notionally adjusted, or Fx reconciled SEF

Modified VPP Structure – Delayed Start VPP Delayed Start VPP Reserves Profile  Delayed Start VPP would allow company to receive cash proceeds on day 1 but begin delivery under the VPP at a later date  Delayed delivery is attractive for fields with existing production and additional development opportunities  The modified structure would generate capital for the development upfront, but allow the deliveries to coincide with production under the new development project  Company would thus retain a share of the field’s production at all times, assuming development stayed on schedule

Modified VPP Structures  Any number of modified VPP structures enhance the advance rate/conversion rate/redemption rate and mitigate operational risks. These in-kind creation/redemption trades include:  Volume Limited  IRR/ROI Limited  PDNP/PUD adjustment of iNAV through BTU Facility swapped/collateral substituted in-kind with VPP trades  Pool "D" Structures where VPP Counterparty on bespoken swap is responsible for Opex and Capex related to VPP volumes

Prepay Swap Transaction Example  A Prepayment (‘Prepay’ ) is a in-kind collateral substitution tool whereby Producer hedges a specified volume for a fixed tenor with a financial swap which is then discounted and margin/collateral is advanced to the Producer (fixed/floating or floating/fixed)  Preferred Derivative Tool for BTU Arbitrage Transactions  Transaction Size: $50,000 US - $4,000,000 US BESPOKEN SWAP PREPAYMENT Physical Market Proceeds Floating $ Fixed $ Hydrocarbon Volume Floating $ Pool Investor SEF

Prepay Details Prepay Reserves Profile ¾ Producer hedges volumes to cover LOE in case prices drop ¾ Producer puts/calls upside on unhedged volumes. Producer puts/calls the floating price each month on the prepay volumes ¾ Producer may retain upside or downside position/leg ¾ Producer may retain COPAS overhead on operated properties ¾ Producer EFPs the floating price each month on the prepay volumes ¾ LOE hedges are settled monthly ¾ SEF/Option Writer for "fixing" of all BTU assets ¾ Select Counterparty is responsible for all Operating Expenses and Taxes

Advantages ADVANTAGES OF VPP OVER PRODUCTION PAYMENTS  Higher Advance rate  Term Financing  Accelerate ordinary income to capital gains treatment (VPP only)  Able to monetize and hedge longer tenor  Takes advantage of the contango/backwardation in forward/futures markets  Document Light process, with average structure execution time of approximately 3-6 weeks  Higher Advance rate  Term Financing  Transacted under an ISDA agreement  Able to execute on smaller transaction sizes  Easy structure to unwind, collateral substitute, in-kind or like kind exchange or pay off and redeem  No Facility Fees  Limited Financial Covenants

Commodity/BTU Portfolio Management ADVANTAGES OF VPP PREPAY MODIFICATIONS  Company retains hedge management  Producer retains operational and management control  Potential Tax Benefits disproportionately allocated  Counterparty credit risk mitigated  Average Swap Fees of 2.5% - 3% plus expenses  Average closing time of ~ T+3 converted to STP  The commodity market is currently a buyers market  On algo trading platform vol swings from development premium  Auction strike prices pegged to benchmark values of exchange traded

VPP and Prepayment Approval Process Start BTU Reserve Engineering Title Opinions Physical Marketing Contracts Financial Operating Statements CPO Delivers concise reports of engineering analysis, weather derivatives analysis and technical due diligence Compliance/ Risk Management approves transaction structure and advance amounts Bespoken Swap of BTU equivalence is a binding commitment VPP/Prepay Legal Documentation Completed SEF funds VPP/Prepay

13 Disclaimer This document does not constitute an offer to sell or a solicitation of an offer to buy any securities, commodities or to engage in futures, forwards, forward outright, options, options on futures or options on options trade transactions.. It is an outline of matters for discussion only. This document and its contents are confidential to the person(s) to whom it is delivered and should not be copied or distributed, in whole or in part, or its contents disclosed by such person(s) to any other person. You may not rely upon this document in evaluating the merits of participating in any transaction referred to herein. This document does not constitute and should not be interpreted as either an investment recommendation or advice, including legal, tax or accounting advice. Any decision with respect to participation in any transaction described herein should be made based solely upon appropriate due diligence of each party. Future results are impossible to predict. Opinions and estimates offered in this presentation constitute our judgment and are subject to change without notice, as are statements about market trends, which are based on current market conditions. This presentation may include forward-looking statements that represent opinions, estimates and projections, which may not be realized. We believe the information provided herein is reliable, as of the date hereof, but do not warrant its accuracy or completeness. In preparing these materials, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources. Nothing in this document contains a commitment from SEF, ICAP, Forest2Market or ETF Securities to subscribe, originate, or execute commodities or securities transactions, or to provide debt, to arrange any facility, to invest in any way in any transaction described herein or is otherwise imposing any obligation on SEF. SEF does not guarantee the performance or return of capital from investments. Any participation by SEF in any transaction would be subject to its internal approval process. SEF maintains Representative Offices in certain US States, however it is not licensed to conduct certain business in the United States. With respect to matters pertaining to US securities laws, and to the extent required by such laws, worldwide subsidiaries consult with, and act through a registered broker-dealer and member of FINRA, or another US broker-dealer.

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