1. “This is a game-changer” John Hines Former Deputy Secretary for Water PA Department of Environmental Protection February 4, 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. Livestock Production 3

4. Livestock Waste Disposal/Fertilizer 4

5. U.S. Livestock Census (2014) 5 9 million dairy cows 92 million beef cattle 62 million swine 2+ billion poultry nutrient load 30X to 100X human waste

6. Algal Blooms 6

7. Toxic Algal Blooms 7

8. Algal Bloom – Gulf of Mexico 8

9. Dead Zones 9 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.

10. ˃ 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 10 540 Worldwide Dead Zones

11. ˃ Groundwater contamination ˃ PM2.5 – ammonia emissions ˃ Climate change ˃ Pathogens – food-borne illnesses ˃ Antibiotic resistance ˃ Hormones Other Livestock Waste Impacts 11 Livestock production is one of the largest (if not THE largest) anthropogenic sources of pollution in the U.S. and the world.

12. Why? 12 Agriculture is essentially exempt from the Clean Water and Clean Air Acts

13. ˃ Resources wasted or underutilized  Energy  Nutrients  Water ˃ Manure handling costs ˃ Stuck where they are ˃ Cannot expand/grow ˃ Image ˃ Regulatory exposure Industry Impacts 13

14. 14 Bion Overview ˃ Bion’s technology largely eliminates the environmental impacts of large-scale livestock production ˃ 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 ˃ 24 years/$100M invested ˃ Proven ˃ Scalable ˃ Commercially-tested ˃ 7 US/6 international patents ˃ 3 rd Gen recently applied for

15. ˃ Significant environmental improvements ˃ Substantially reduced costs ˃ Increased resource efficiencies ˃ Improved economics ˃ Expanded opportunities Cleantech Solution 15

16. ˃ 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 16

17. ˃ No chemicals: Organic (certification pending) ˃ Crystalline form ˃ Water soluble ˃ Readily available ˃ Gives up CO2 – greenhouse applications ˃ Very high-end product ˃ Compare to organic Grower’s Secret - $80,000/ton retail ˃ Can be produced at scale ˃ Capable of national distribution/ branding ˃ Low production costs/ patented process Nitrogen Byproduct 17

18. ˃ 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 18

19. ˃ 3G platform incorporates anaerobic digestion to produce methane ˃ Conditioned, compressed, injected into pipeline (Renewable CNG) ˃ 30% federal Biogas ITC for renewable energy-related CAPEX ˃ Renewable transportation fuel qualifies for federal RFS RE credits ˃ California carbon offsets for methane/NOX emission reductions from dairy waste (other species should qualify upon application) Renewable Energy 19

20. ˃ 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 20

21. ˃ Environmentally sustainable brand  Nitrogen and phosphorus removal  Greenhouse gas reductions  Pathogen kill ˃ USDA Process Verified Program ˃ Point of Sale verification with barcode that provides data, history ˃ Fortune/WSJ - Food Giants Announce Major New Labeling Initiative  Grocery Manufacturing Association  Pepsi, ConAgra, Hormel, Campbell Soup, Land O’Lakes, Coca-Cola, Nestle, Hershey, and General Foods (30 so far)  Ingredients, animal welfare, environment, GMO  “Instantaneous access” - barcode Sustainable Brand 21

22. ˃ Nutrient reductions ˃ Renewable energy in various forms  RE and carbon credits ˃ Byproducts  Organic nitrogen fertilizer (national product)  Soil amendments (regional product)  Feed additives (potential – national) ˃ Sustainable brand Multiple Revenue Streams 22

23. U.S. Clean Water Spending 23

24. Chesapeake Bay Spending Imbalance 24 “A more efficient, market-based approach to financing will reduce costs and accelerate implementation. This process must be exempt from politics and based solely on effectiveness.” University of Maryland Environmental Finance Center, 2015 Report Chesapeake Bay TMDL – Pennsylvania Mandate Spending

25. Nutrient Removal Cost Comparisons 25 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 that are equivalent and can be used to offset EPA requirements at $8 per pound.

26. Nutrient Trading Program 26 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 80% SAVINGS Recent Maryland study validates

27. ˃ Environment  Accelerated implementation  Local environmental benefits**** ˃ Taxpayer and community  Substantially reduced compliance costs  Public health benefits/ cost avoidance  Local economic activity ˃ Farmer  Lose regulatory exposure  Reduced costs (manure handling)  Increased revenue (byproducts, credits)  Expansion potential  Sustainable branding Who Wins? Everyone 27

28. ˃ Government and NGOs dominate the clean water space ˃ Market driven strategy would provide  Accountability – purchase verified credits AFTER they are produced (no performance risk to public)  Transparency – competitive bidding ˃ Entrenched interests ALWAYS oppose change  NGOs think it is ‘their’ money  Engineering/construction firms  Financing institutions ˃ INEVITABLE – cost differences are too great to be ignored Well…NOT Everyone 28

29. ˃ Unsustainable costs and failure of voluntary measures ˃ Scientific and recent economic studies ˃ GOM/CB dead zones; Toledo water crisis – toxic algal blooms National Platform in Place ˃ US EPA established CB TMDL (MRB and Great Lakes next) ˃ Four landmark cases now in federal court  Washington Cow Palace Dairy suit: manure application is solid waste disposal (RCRA statutes) ˃ Nutrient-related legislation in four states (WI, PA, IA, OH) ˃ Establishment of ‘verified credit’ – common currency ˃ ‘Trading’ in 20+ states supported by USDA, US EPA, US OMB Recent Developments/ Catalysts ˃ Livestock industry now supports incentive-based strategy; ready and willing to engage ˃ Pennsylvania facing economic sanctions beginning 2017; AG Special Report Policy Change 29

30. Market for Nutrient Reductions/Projects 30 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 sources 9 million dairy cows 92 million beef cattle 62 million swine 2+ billion poultry 60% on large scale farms

31. Upside: Short and Long-Term Catalysts 31 Long Term Inevitable widespread adoption of manure control technologies driven by ˃ Industry economics ˃ Environmental necessity ˃ Consumer demand Short Term Institutional validation/belief in the future of the space followed by investment in technologies that can provide solutions

32. ˃ 2014 – Initial pickup by Lux Research  International technology scouting firm ˃ 2015 – HIP (Human Impact + Profit) Investor  Impact Investment Advisor/Ratings  R. Paul Herman, Founder & CEO  Lih-Hann Chiu (analyst) Institutional Coverage Beginning 32 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.”