1. “This is a game-changer” John Hines Former Deputy Secretary for Water PA Department of Environmental Protection November 11, 2014

2. 2 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.

3. 3 Bion Overview Bion’s technology largely eliminates the environmental impacts of large-scale livestock production  Nutrients (nitrogen and phosphorus)  Ammonia, greenhouse gases  Pathogens, hormones, antibiotics in the waste stream  Odors Reclaims renewable energy, nutrients and clean water ONLY technology approved to generate verified credits for treatment of ‘wet waste’ stream (dairy/beef cattle and swine) Proven; scalable; commercially-tested; 7 US, 6 international patents Trade on OTCQB: BNET

4. Largest cost driver: nutrient (N & P) removal NO LONGER SUSTAINABLE or necessary US Clean Water Spending 4

5. Primary federal law in the United States governing water pollution Passed in 1972 Applies to “point sources”  Smokestack or discharge pipe  Municipal wastewater treatment, power plant, industrial/manufacturing “Non-point sources”  Diffuse pollution source not from a specific location  Urban/suburban runoff, agriculture  Agriculture consumes 70% of the water in the US  Agriculture is essentially EXEMPT from the CWA Clean Water Act 5 Agriculture accounts for 70% to 90% of nutrients in most major watersheds

6. Lagoon Manure slurry Nitrogen released as ammonia gas (NH 4 ) [50%] Field Manure slurry N Run-off [25%] Crop Uptake [25%] Traditional Manure Management Practice Livestock: Largest Source of Nutrients 6  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 Aquifers Surface Waters Downstream Estuaries 75% N lost to the environment

7. How Big is the Problem? 7 Nutrient load 30X to 100X human waste - UPSTREAM 9 million dairy cows 92 million beef cattle/calves 64 million swine 2 billion poultry

8. US EPA now acknowledges that excess nutrients are the greatest water quality problem in the US today How Bad is the Problem? 8

9. Aug 31, 2014 – Washington Post – Large ‘dead zone’ signals more problems for Chesapeake Bay Aug 5, 2014 – MSNNews – 'Dead zone' in the Gulf of Mexico is the size of Connecticut Aug 4, 2014 – NPR – Toledo Water Ban Persists After New Test Results Cause Concerns Headlines 9

10. Ammonia emissions Greenhouse gas emissions Pathogens Antibiotics Hormones Other Livestock Waste Impacts 10

11. 11 Chesapeake Bay TMDL Executive Order 13508 (May 12, 2009) US EPA TMDL: first watershed-wide TMDL Reduce 78M lbs of Nitrogen by 2025 with two-year milestones Six states, DC Estimated cost (Bay-wide):  2009: $15B to $28B  2012: $30B to $50B Substantial penalties for non-compliance

12. Annual Cost of Upstream Alternatives 12 Bion can begin delivery of up to 2 million pounds based on full operation of Kreider 1 and 2 systems (target 2016) Source: PA LBFC Report; CB Commission ReportPA LBFC ReportCB Commission Report PA spent $2 billion to upgrade 12 municipal wastewater treatment plants to achieve 3 million lbs of nitrogen reduction

13. Heavily vested (and invested) interests benefit from the status quo  Municipal Authorities  Construction firms  Engineering firms  Banking interests  Advocacy groups Resistance to Change 13 National Association of Clean Water Agencies (NACWA) began to support non-point source nutrient trading in 2013

14. The “Verified” Nutrient Reduction A new environmental commodity that allows high-cost, point source reductions to be replaced with low-cost, verified, non-point source reductions Verified (measured not modeled) reductions are “qualified offsets” that can be used by regulated point sources Procuring verified reductions from livestock sources is proven to be the lowest cost means of achieving environmental compliance Commencing Oct 2014, all credits must be verified to trade in PA Bion’s Kreider Farms waste treatment facility in Pennsylvania is the first and only in the nation to generate verified reductions from wet livestock waste under any state trading program 14

15. Verified Reductions: A Huge Win For All For Regulators –Efficient, private sector-led solution that tackles a major source of nutrient pollution presently outside current regulations For Taxpayers –An independent study commissioned by the Pennsylvania Legislative and Budget Committee projected an 80% cost reduction ($1.2 billion annually) in Clean Water Act compliance costs (at $8 per lb N) For Investors –$8 - $10 billion annual verified N reduction market in major watersheds across the US Mississippi Basin (1 billion lbs/year) Chesapeake Bay (100 million lbs/year) Great Lakes (TBD) 15

16. Where Does the Policy Stand? Pennsylvania is now in default of the TMDL Pennsylvania Senate Bill 994 –Establishes an intra-state procurement program for verified reductions through a competitive bidding program –Voluntary adoption –Supported by national and state ag groups –Legal obligation for “least cost” is the ultimate stick –Passage expected by June 2015 SB 994 is widely regarded as a model for national adoption –US EPA, EPA Region III and OMB are supportive of private sector initiatives to further low-cost compliance alternatives. –Other ag-intensive states are closely following the Pennsylvania situation With the debate now mature, we believe the policy risk has been overstated by the investment community 16

17. Excess phosphorus impacting Lake Michigan New phosphorus limits established in 2010 now taking effect WI Manufacturing & Commerce estimates $4.9B to comply –Green Bay and Madison Municipal Sewer Districts facing unaffordable costs to upgrade plants and install storm water projects WI SB 547 – Clean Waters & Healthy Economy Act adopted 4/24/14 –First state program to direct significant financial resources to long term non-point source agriculture projects, like Bion’s –Bion in discussions with WI stakeholders – regulatory, county and municipal, and point- and non-point sources – about potential large- scale projects Wisconsin has second largest dairy herd in the US –1,265,000 head –Largest source of unregulated nutrients in the state –Large potential market for Bion Wisconsin 17

18. Technology platform is effective, cost-effective, accepted  24 years; $100M in development  Seven US patents (two pending); six international (several pending) 30 1Gen systems (dairy, swine) installed in four states by 2003 2Gen platform deployed in PA in 2011  Funded by PENNVEST (PA Infrastructure Investment Authority)  Credit verification in 2012  Full water quality permit issued 2012 (only one in US)  2014 USDA Technical Assessment: “This project is deemed to be functional, verifiable, and sufficiently advanced to qualify for USDA programmatic funding. An official full application is encouraged by USDA.” Third generation platform  Reduced capex  Asset recovery – increased by-product values  Patent filed September 2014  Final commercial pilot scheduled to conclude Jan 2015 Technology 18

19. Kreider 1: 1,200 dairy cows (system operating for 2 ½ yrs) Kreider 1 financed by PENNVEST  $7.8 million, non-recourse, low interest, 10 yr  Today’s cost: $3.2 million Kreider 2: 6 million chickens (develop 2014/15)  Phase 2: capex $10 to $12 million Kreider 1 & 2: up to 2 million pounds annually at $8 to $12 per pound per year when in full operation (anticipate 2015/16) Anticipate $7M to $10M annual EBITDA from nutrient credits alone Additional revenues from by-product sales, other credits Kreider Farms Economics 19

20. $7M to $10M annual EBITDA Customer: Pennsylvania Long-term guaranteed off-take agreements (per PA study recommendations) ComparablesP/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  Higher with by-products  Total investment (today) $15M Utility Revenue Model (Kreider 1&2 Only) 20

21. How Big is Bion’s U.S. Opportunity? 21 Thousands of farms that meet Bion’s minimum scale thresholds 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 No competitors for comprehensive wet waste treatment to date 9 million dairy cows 92 million beef cattle/calves 64 million swine 2 billion poultry

22. International Initiatives 22 The Company has been pursuing these opportunities [project development] within the United States during the later stages of technology redevelopment and has recently begun activities to pursue such opportunities internationally. Bion 10Q March 31, 2014 540 dead zones worldwide Nutrients focus of international concern Ed Schafer, Bion’s Exec Vice Chairman, is former US Secretary of Agriculture and former two-term Governor of North Dakota Livestock waste now a national security issue in China  Sep 5, 2014 – ECNS (China) – China develops rules on curbing world's highest ammonia emission levels  May 20, 2014 – Scientific American – China's Appetite for Meat Swells, along with Climate Changing Pollution  Apr 18, 2014 – NPR – China Admits That One-Fifth Of Its Farmland Is Contaminated  Mar 4, 2014 - Reuters - China to 'declare war' on pollution, premier says

23. Bion’s technology is proven and accepted but… the SECTOR – clean water spending on non- point sources – has not yet been validated Evolving opportunity No research/no comparables/no qualified analysts No institutional knowledge Little or No Value for Technology 23

24. Near Term Upside: Sector/Technology Valuation 24 Kreider Farms: $15M capex; estimate at least $7 to $10M annual EBITDA ONE FARM What will Bion’s technology be worth if/when the sector is “validated” and institutional investment begins?