1. “This is a game-changer”
John Hines
Former Deputy Secretary for Water
PA Department of Environmental Protection
Dec 30, 2017

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. Additional information regarding the Company’s 3G technology platform should be reviewed in the Company Overview, available upon request and at 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

3. New Market/ Investment Space
A new untapped space at the intersection of the…
$110 billion clean water sector
$180 billion livestock industry
$ 40 billion organic food industry
$185 billion biofuels industry

4. Untapped Opportunity
More than 70% U.S. livestock are produced on large farms
scale + concentration = cost-effective treatment

5. Overview
Dairy, meat and egg production is one of the largest sources of pollution in the United States and the world.
Industry is under fire from consumers, advocacy groups, and investors for environmental and public health impacts.
Policies in the U.S. are already changing to encourage livestock waste cleanup – inevitable.
Bion’s patented technologies provide comprehensive treatment (similar to municipal wastewater treatment for human waste).
Almost eliminates the air and water pollution.
Improvements are 3rd-party verified: sustainable brand.
Recovers byproducts/ value from the waste.
Bion’s 2G technology is proven; performance accepted by US EPA, USDA, and several U.S. states. Piloting 3G tech.
Bion has relationships with some of the largest livestock producers in the U.S. and the world.

6. Nutrient Cycle Nitrogen and Phosphorus Sources: Agriculture:
Human waste
Transportation/ combustion
Industrial/ manufacturing
Urban runoff
Agricultural runoff
70% in most major basins/ watersheds
Agriculture:
Direct runoff
Ammonia emissions from livestock waste redeposit to contaminate surface and groundwater

7. The Problem… 2 billion poultry 80 million beef cattle 62 million swine
9 million dairy cows
In the United States only
1.37 BILLION tons of animal waste
(130X human waste)
Spread on the ground...

8. Algae Blooms/ Dead Zones Gulf of Mexico
Texas Coast
Annual dead zone averages 5,500 square miles
2017 dead zone is the largest on record

9. Low- or no-oxygen DEAD ZONES
kills fish, shrimp, crabs, and almost everything else

10. Toxic Algae Bloom Stuart, FL July 1, 2016

11. Toxic Algae Bloom Lake Erie in 2014 – Toledo Water Crisis

12. Excess Nutrients Local, Regional, National, Global Problem
One of America's most widespread, costly and challenging environmental problems…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
540 dead zones worldwide

13. Environmental/ Public Health Impacts
Excess nutrients contaminate
Surface water (lakes, rivers, coastal waters)
Drinking water (aquifers/ water wells)
Soil
Air Pollution
Ammonia
Contributes to PM2.5 – small inhalable particulate matter
Contributes to nitrogen runoff
One of the largest sources of greenhouse gases
Hydrogen sulfide (multiple health issues)
Nitric oxide (acid rain)
Pathogens
Food-borne illnesses
Antibiotic resistance

14. Economic Impacts - Consumer Rising U.S. Clean Water Costs

15. Economic Impacts - Producer Livestock Industry Still in the 19th Century
Industry ‘socializes’ its environmental costs - unsustainable
Resources wasted or underutilized
Energy, nutrients, water
Industry cannot adapt to changing conditions
Dislocated supply chain is inefficient
Cannot consolidate or relocate
Cannot expand without more land
Already thin margins declining
Consumer confidence/ trust eroding
Manure handling costs increasing
Regulation will come if they do not clean up voluntarily
Consumers and big institutional investors are increasingly demanding sustainability

16. Technology Platform Overview
Proven comprehensive waste treatment for large-scale livestock production facilities
High-impact low-cost environmental and public health solutions
Technology focused on capturing and recovering ammonia
Platform closes the loop: recovers value from the waste stream
Clean water, renewable energy, and nutrients
Verification unlocks renewable energy and water quality trading credits
High-value byproducts help offset costs of environmental cleanup
Verification allows USDA-certified SUSTAINABLE BRAND
Bion is a technology and policy leader

17. Dedicated and Capable Team
Mark Smith, Chairman 25 years
Ed Schafer, Exec Vice Chairman 7 years
Former U.S. Secretary of Agriculture
Jon Northrop, Director (Founder) 25 years
Dominic Bassani, CEO 17 years
Steve Pagano, Chief Engineer 25 years
Jeremy Rowland, COO 11 years
Craig Scott, Dir of Comm 24 years

18. Critical Industry Relationships
Coalition for Affordable Bay Solutions (CABS)
Founding members
Bion
JBS USA (JBS SA: largest meat processor in the world)
Kreider Farms (a leading U.S. egg producer)
Fair Oaks Farms (large U.S. dairy)
Legislative and policy support
National Milk Producers Federation
Dairy Farmers of America
Land O’Lakes
PA Farm Bureau
PennAg

19. Bion’s Technology Second generation tech platform
Proven at commercial scale
Patented in U.S. and other countries
Performance accepted by US EPA, states
USDA Technical Assessment; qualified for federal loan guarantees
Third generation (3G) tech platform: successful pilot trials
Next generation advanced technology – patents pending
Little technology risk: combines processes and equipment with known reliability and history
Produces high-value byproducts and renewable energy
Small commercial pilot in 2018
Anticipate initial development of full-scale commercial installation in late-2018/19

20. 3G: Multiple Revenue Streams
Byproducts
High-value ‘pure’ organic1 nitrogen fertilizer
Organic1 soil amendment products
Feed additives
Renewable energy
Pipeline-quality renewable natural gas
Renewable energy and carbon credits
USDA-certified2 sustainable brand
Nutrient reduction credits
1Application for organic certification pending; 3G process was developed to meet OMRI standards (no chemicals or outside inputs)
2US Department of Agriculture conditional approval received - pending final inspections

21. Credit Trading Will Save Billions
RTI/ Chesapeake Bay Commission study (2012)
Bipartisan Pennsylvania Legislative Budget and Finance Committee study (2013)
80 percent savings – $1.5 billion annually – by 2025 if the state adopts a competitive bidding program to buy nutrient credits from the private sector.
Bion is featured prominently in the study.
Univ of Maryland Chesapeake Bay Financing Strategy Report (2015)
Colorado State Univ/ US EPA/ NPS Study (2016) on atmospheric nitrogen
Pending stormwater requirements represent billions in additional costs – EPA supports trading

22. Not ‘going to happen’ – happening NOW
Policy Change
Pennsylvania and the Chesapeake Bay
Real sanctions can begin after 2017
Competitive bidding legislation in PA legislature – Gov’t reform
Supported by Republican leadership, ag groups, taxpayer groups
Federal energy tax credit for biogas/nutrient recovery
Introduced in US Congress (House and Senate) in 2017
Bipartisan
30% Investment Tax Credit (ITC)
Tax-free bonds
Market-driven solutions supported by Trump Admin
Livestock industry support
US EPA Letter of Expectation to PA DEP
Not ‘going to happen’ – happening NOW

23. Organic Nitrogen Byproduct
Ammonium bicarbonate crystals – stabilized nitrogen
‘Pure’: without phosphorus, salts, micronutrients, fiber, pathogens
Preparing application to Organic Materials Research Institute (OMRI) to certify for use in organic production
HIGHLY DISRUPTIVE PRODUCT
OMRI-certified organic carries a significant price premium
Low-end products (‘impure’) start at $3/lb N
$12/lb N bulk
Grower’s $40/lb N retail
KF2 potential
Ammonium crystals: 6M lbs N/yr
Solids: 60,000 85% dry matter
Primary risk: successful OMRI certification
3G system designed to meet OMRI requirements

24. Renewable Energy Pipeline quality, renewable natural gas
Federal energy tax credit: 30% ITC on biogas capex
Bill in US Congress to extend and apply to nutrient-control
RE Subsidies/Credits – robust markets today
RIN Credits (D3) under the Renewable Fuel Standard – national market
LCFS Credits under CA’s Low Carbon Fuel Standard market
KF2 potential
Renewable nat gas produced: 475,000 MMBTU/year (~9M gal)
D3 RINs: D3 RINs per MMBTU
LCFS Credits: 13.5 MMBTU per LCFS credit
Primary risk: pricing (nat gas; RIN and LCFS credits – historical market data available)

25. Sustainable Branding
Increasing consumer demand for sustainable practices
Organic industry growing at 11%
No analog in meat production
Livestock industry under attack
Water pollution, greenhouse gases, antibiotics,
Ceres and other large activist investors are pushing for increased sustainability in the livestock ag sector
Positive drivers
Market differentiation; premium pricing and higher margins
Negative drivers
Avoid foodborne illness incidents and future regulation; public image (toxic algae blooms, dead zones, greenhouse gases, antibiotic resistance, ‘Meatless Mondays’, etc.)
Sustainable brand = market share with pricing power

26. Bion Sustainable Brand
Verifiable metrics:
Reduced nutrient footprint
Reduced carbon footprint
Pathogen kill
Point of sale verification with barcode
Produced when and where
Farm description and history
Animal husbandry and waste management practices
Steps to improve sustainability
Quantified results/impact calculator
USDA Process Verified Program (PVP)
Provisional approval pending final inspections
Gold-standard verification program

27. Beef Cattle Feedlot Comparison
The table below demonstrates the difference between a traditional beef cattle feedlot and a state-of-the-art facility with waste treatment and byproduct production. The table only illustrates the potential added value from waste treatment and resource recovery and is not intended as a model of an actual or anticipated Bion project.
Revenue/EBITDA Analysis
Revenues
EBITDA
Feedlot
Bion
Cattle Ops
$273M
$290.4M
$5M
$11.3M
Branding
15.2M
11.7M
Byproducts
12.5M
9.7M
Carbon
5.3M
3.8M
Nutrient Credits
6.6M
5.5M
Total
$330M
$42M

28. Anticipated Upcoming Catalysts
PA legislation to implement competitive bidding (2018)
Build small-scale pilot/ produce ammonium crystals (planned for Q1 2018)
Apply for OMRI approval of organic certification (in process, expect to apply by end of Q1 2018)
Energy tax credit bill for biogas/nutrient control technologies now in the U.S. House and Senate (2018)
Begin development of first 3G commercial installation (2018)
Begin development of Kreider 2 (Q4 2018/19)
Timetable is based on management’s current expectations and is subject to a number of variables beyond Bion’s control, including political processes, vendor schedules, etc.

29. Opportunity – Big Untapped Market
2 billion chickens
80 million beef cattle
62 million swine
9 million dairy cows
5% market penetration of beef, swine, poultry layers only (not including dairy, poultry broilers) would yield
$565M est. annual revenue
Bion’s current valuation: $20M (~$40 million fully- diluted)