1. “This is a game-changer” John Hines Former Deputy Secretary for Water PA Department of Environmental Protection March 1, 2016

2. 2 Forward Looking Statements/Risk Factors 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. Risk 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.

3. ˃ Bion’s technology largely eliminates the environmental impacts of large-scale livestock production ˃ Reclaims clean water, renewable energy and byproducts from the waste stream ˃ 28 years and $100M+ invested ˃ Proven; scalable; commercially-tested ˃ 8 U.S./ 6 international patents issued or applied for ˃ OTCQB: BNET (NOT BION!!!!!)  22.3M shares out/ 35M FD  Recent price: $0.99  12 mo range: $0.45 - $1.46  Avg daily volume (3 mo): 4,300 Overview 3

4. Dairy Yesterday 4

5. Dairy Today 5

6. CAFOs Concentrated Animal Feeding Operations 6 Account for more than 60% of U.S. animal protein production

7. Livestock Waste Disposal/Fertilizer 7

8. U.S. Livestock Census (2014) 8 9 million dairy cows 80 million beef cattle 62 million swine 2+ billion poultry 1.5 BILLION tons 30X to 100X human waste

9. ˃ Approximately 50% of nitrogen volatizes to atmosphere as ammonia; its nitrogen is later re- deposited and subject to runoff ˃ Approximately 25% of remaining nitrogen is lost directly to runoff ˃ Dissolved Reactive Phosphorus (DRP) is mobile and lost to runoff ˃ Particulate phosphorus is retained – increasing concentration Nutrients – Nitrogen and Phosphorus 9

10. Algal Blooms 10

11. Dead Zones 11 Hypoxia Low- or no-oxygen DEAD ZONES caused by eutrophication (decomposition of organic matter) in the Chesapeake Bay, Great Lakes, Gulf of Mexico and many other waters across the U.S.

12. Algal Bloom – Gulf of Mexico 12 Annual dead zone averages 5,500 square miles

13. Toxic Algal Blooms 13 Lake Erie – Toledo water crisis in 2014

14. ˃ Greatest water quality problem in the U.S. today… US EPA ˃ Globally, the most prevalent water quality problem is eutrophication, a result of high-nutrient loads… Veolia/ International Food Policy Research Institute Report 2015 Excess Nutrients Local, Regional, National, Global Problem 14 540 dead zones worldwide

15. Why? 15 Agriculture is essentially exempt from the Clean Water and Clean Air Acts Livestock production is one of the largest (if not THE largest) sources of unregulated nutrients in the U.S.

16. ˃ Nutrient Runoff ˃ Groundwater contamination ˃ Climate change ˃ PM2.5 – ammonia emissions ˃ Odors ˃ Hormones ˃ Pathogens – food-borne illnesses ˃ Antibiotic resistance Environmental/Public Health Impacts 16

17. Escalating U.S. Clean Water Costs 17

18. ˃ Resources wasted or underutilized  Energy  Nutrients  Water ˃ Manure handling costs ˃ Producer limited by acreage to apply manure  Cannot expand/grow absent land acquisition  Stuck where they are ˃ Public image ˃ Regulatory exposure Industry Impacts 18

19. 19 Bion Technology Overview ˃ Process train: combination of mechanical, biological and thermal processes ˃ ONLY technology that provides proven comprehensive on- site treatment for ‘wet waste’ (dairy, beef, swine) ˃ Reclaims clean water, renewable energy and byproducts from the waste stream ˃ Proven  PA DEP permit/verification  USDA Technical Assessment ˃ Scalable ˃ Commercially-tested ˃ 8 US/6 international patents issued/applied for ˃ Recently filed second patent for 3 rd generation platform (3G)

20. ˃ Dramatic environmental improvements ˃ Increased resource efficiencies ˃ Improved economics ˃ Expanded opportunities  Expansion  Relocation  Sustainable branding ˃ Strategic partnership 3G: Cleantech Solution 20

21. ˃ Byproducts  Organic nitrogen fertilizer (national product)  Soil amendments (regional product)  Feed additives (potential – national) ˃ Renewable energy  RE and carbon credits ˃ Sustainable brand ˃ Nutrient reductions Multiple Revenue Streams 21

22. ˃ Pure ammonium bicarbonate separated from phosphorus, micronutrients, pathogens.  Stable readily-available nitrogen source  No chemicals added during process ˃ Use in ORGANIC production (applying for certification)  Crystalline form – easily transportable  Water soluble  Gives up CO2 – greenhouse applications ˃ Very high-end product (with organic certification)  Compare to organic Grower’s Secret ˃ Patented process ˃ Can be produced at scale ˃ Capable of national distribution/ branding Nitrogen Byproduct 22

23. ˃ Nitrogen, phosphorus, micronutrients, salts, fiber ˃ Evaluating opportunities ˃ Potential applications include fertilizer, livestock and pet food additives Residual Solids 23

24. ˃ 3G platform incorporates anaerobic digestion to produce methane ˃ 30% federal biogas ITC for renewable energy- related CAPEX ˃ Conditioned, compressed, injected into pipeline (Renewable CNG)  Renewable transportation fuel qualifies for high-value federal RFS credits  California carbon offsets for methane/NOX emission reductions from dairy waste (other species should qualify upon application) Renewable Energy 24

25. ˃ Environmentally-sustainable brand  Nitrogen and phosphorus removal  Greenhouse gas reductions  Pathogen kill ˃ USDA Process Verified Program ˃ Point of sale verification with barcode ˃ Global Roundtable on Sustainable Beef ˃ Food Giants Announce Major ‘Smart Label’ Initiative  Fortune, WSJ (Dec 2015)  Grocery Manufacturing Association ˃ Pepsi, ConAgra, Hormel, Campbell Soup, Land O’Lakes, Coca- Cola, Nestle, Hershey, General Foods, et al  Environment, ingredients, animal welfare, GMO  “Instantaneous access” - barcode Sustainable Brand 25

26. ˃ Developing Market ˃ US EPA: Greatest water quality problem in U.S. ˃ 2010 Chesapeake Bay TMDL (Total Maximum Daily Load) ˃ Federal requirement to reduce nutrients (6 states) ˃ $30 to $50 billion estimated cost ˃ Similar mandates expected for Great Lakes, Mississippi River Basin, etc. ˃ Feds support market-driven strategy/nutrient trading to reduce costs ˃ Competitive bidding will identify and provide funding for low-cost solutions Nutrient Reductions 26

27. Nutrient Removal Cost Comparisons 27 Annual Cost to Remove Nitrogen (per pound) Reduction SourceMD UMD 1 PA LBFC 2 Point source – Muni Tier 1$43complete On-site septic$311n/a Urban stormwater$633$386 Agriculture$44$54 1 UMD Enviro Finance Center Financing Strategy Report (2015) 2 PA Legislative Budget and Finance Committee Report (2013) Bion can deliver verified credits starting at $8 per pound that are equivalent and can be used to offset EPA requirements.

28. Nutrient Trading Program 28 2013 Pennsylvania Legislative Budget and Finance Committee study projected annual savings by 2025 up to $1.5 billion in PA’s Chesapeake Bay compliance costs if the state adopts a competitive bidding program to procure nutrient reductions from large scale agriculture projects like Bion’s (Bion discussed in report). 80% SAVINGS

29. ˃ Environment  Accelerated implementation  Local environmental benefits for ‘free’ ˃ Taxpayer and community  Substantially reduced compliance costs  Public health benefits  Avoid future drinking water treatment costs  Local economic activity ˃ Farmer  Lose regulatory exposure  Reduced costs (manure handling)  Increased revenue (byproducts, credits)  Expansion potential  Sustainable branding Win-Win-Win 29

30. ˃ Government and NGOs dominate the clean water space ˃ Entrenched interests ALWAYS oppose change  NGOs  Engineering/construction firms  Financing institutions ˃ Market-driven strategy would provide  Innovation  Accountability – purchase verified credits AFTER they are produced. No project funding; no performance risk to public.  Transparency – competitive bidding ˃ INEVITABLE – cost differences are too great to be ignored Lose 30

31. PA: Status Quo vs. Competitive Bidding 31 PA ‘Reboot Plan’ (PSU Cost) vs competitive bidding per PA Legislative Budget and Finance Committee Study (LBFC)

32. ˃ Current strategy is clearly failing ˃ Watershed-wide regulation has started in CB (MRB & GL are next)  US/Canada agree to reduce 40% phosphorus to GL  US EPA challenged over MRB regulation ˃ Pennsylvania facing economic sanctions beginning 2017  AG Special Report ˃ Scientific and recent economic studies clear on need to address alternative solutions (livestock specifically) ˃ ‘Trading’ supported by USDA, US EPA, US OMB ˃ US EPA recently established ‘verified credit’ standard – common currency – that facilitates trading/procurement strategy ˃ Several federal court cases in process ˃ Livestock industry now supports voluntary market-based strategy Recent Developments/Milestones 32

33. Market for Projects/Nutrient Reductions 33 Chesapeake Bay51 million pounds Great Lakes~200 million pounds Mississippi River Basin>1 billion pounds Bion estimates at least $8B to $10B in annual clean water spending will be reallocated to non- point source nutrient reductions 9 million dairy cows 80 million beef cattle 62 million swine 2+ billion poultry 60% on large scale farms

34. Upside: Short- and Long-Term 34 Long Term Inevitable widespread adoption of manure control technologies driven by ˃ Industry economics ˃ Environmental necessity ˃ Consumer demand Short Term Institutional understanding and validation of ˃ a new clean water ‘space’ followed by investment in technologies that can provide solutions ˃ a cleantech solution for the industry that provides economic drivers for adoption

35. ˃ 2014 – Initial pickup by Lux Research  International technology scouting firm ˃ 2015 – Lih-Hann Chiu blog  Analyst for HIP Investor (Human Impact + Profit)  Impact Investment Advisor/Ratings  R. Paul Herman, Founder & CEO Institutional Coverage Beginning 35 Bion Environmental Technologies — Restoring Our Freshwater Resources “With consumers increasingly demanding responsibly produced foods, and the food supply chain becoming increasingly transparent, it’s not unreasonable to believe livestock farms that are better at managing manure pollution will gain a competitive advantage.”