1. “This is a game-changer” John Hines Former Deputy Secretary for Water PA Department of Environmental Protection February 16, 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. Dairy Yesterday 3

4. Dairy Today 4

5. CAFOs Concentrated Animal Feeding Operations 5 Account for more than 60% of U.S. animal protein production

6. Livestock Waste Disposal/Fertilizer 6

7. U.S. Livestock Census (2014) 7 9 million dairy cows 80 million beef cattle 62 million swine 2+ billion poultry 1.5 BILLION tons 30X to 100X human waste

8. Algal Blooms 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. Algal Bloom – Gulf of Mexico 10 Annual dead zone averages 5,500 square miles

11. Toxic Algal Blooms 11 Lake Erie – Toledo water crisis in 2014

12. ˃ 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 12 540 dead zones worldwide

13. ˃ Nutrient Runoff ˃ Groundwater contamination ˃ Climate change ˃ PM2.5 – ammonia emissions ˃ Odors ˃ Pathogens – food-borne illnesses ˃ Antibiotic resistance ˃ Hormones Environmental/Public Health Impacts 13

14. Escalating U.S. Clean Water Spending 14

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. ˃ Manure handling costs ˃ Resources wasted or underutilized  Energy  Nutrients  Water ˃ Producer limited by acreage to apply manure ˃ Cannot expand/grow absent land acquisition ˃ Stuck where they are ˃ Image ˃ Regulatory exposure Industry Impacts 16

17. 17 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

18. ˃ Significant environmental improvements ˃ Substantially reduced costs ˃ Increased resource efficiencies ˃ Improved economics ˃ Expanded opportunities Cleantech Solution 18

19. ˃ 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 19

20. ˃ 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 20

21. ˃ 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 federal RFS RE credits ˃ California carbon offsets for methane/NOX emission reductions from dairy waste (other species should qualify upon application) Renewable Energy 21

22. ˃ 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 22

23. ˃ Developing Market ˃ 2009 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 nutrient trading – alternative solutions to reduce costs ˃ Feds support market-driven strategy to engage the private sector Nutrient Reductions 23

24. Nutrient Removal Cost Comparisons 24 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.

25. Nutrient Trading Program 25 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

26. ˃ 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 Who Wins? Everyone 26

27. ˃ Government and NGOs dominate the clean water space ˃ Entrenched interests ALWAYS oppose change  NGOs that think it is ‘their’ money  Engineering/construction firms  Financing institutions ˃ Market driven strategy would provide  Accountability – purchase verified credits AFTER they are produced (no performance risk to public)  Transparency – competitive bidding ˃ INEVITABLE – cost differences are too great to be ignored Well…not EVERYONE 27

28. Cost Difference - Pennsylvania 28 PA ‘Reboot Plan’ (PSU Cost) vs PA Legislative Budget and Finance Committee Report (LBFC)

29. ˃ Current strategy is clearly failing ˃ Watershed-wide regulation has started in CB (MRB & GL are next) ˃ Pennsylvania facing economic sanctions beginning 2017; AG Special Report ˃ Scientific and recent economic studies clear on need to address livestock ˃ ‘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/Catalysts 29

30. Market for Projects/Nutrient Reductions 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 source nutrient reductions 9 million dairy cows 80 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 1.Institutional understanding and validation of a new clean water ‘space’ followed by investment in technologies that can provide solutions 2.Institutional understanding of cleantech solution for the industry that provides economic drivers for adoption

32. ˃ 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 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.”