ReGen III (GIII) Status Update summary

Project Development, Technology, and Execution

• Advancing a Texas City facility to produce high-yield, sustainable Group III base oil from used motor oil, with 5,600 bpd capacity and major industry partners.

• Commercializing patented technology with 53% yield, 3x peer EBITDA margins, and 32 patents awarded or pending.

• Completed pilot testing, FEL2, site selection, and value engineering; over 66% of feedstock secured via LOIs.

• Engaged with major offtake parties and technical partners, with ongoing negotiations and sample shipments to global industry leaders.

• Recent lab work confirmed improved yields, viscosities, and API-qualifying properties for base oils.

Financing and Capital Structure

• Approved to proceed to Part II of the U.S. DOE Loan Programs Office (LPO) Title 17 application, seeking up to 70% debt coverage for project construction.

• Secured a $108 million indicative term sheet from Export Development Canada and working with National Bank Financial and Raymond James for additional financing.

• Closed final tranche of convertible debenture offering, raising CAD $300,000 for engineering, working capital, and M&A.

• Market capitalization of $32M, 118.4M shares outstanding, and 20.7% insider ownership as of July 15, 2024.

• Recently completed a small financing round for operating and testing expenses.

Market Demand, Strategic Positioning, and Sustainability

• Experiencing strong demand for sustainable Group III base oil, driven by global Scope 3 emission reduction targets and the need for lower-carbon raw materials.

• Only company able to produce high-yield, sustainable Group III, with 75% of North American supply currently imported and Group III commanding a 50%+ price premium over Group II.

• ReGen III’s process avoids over 900,000 tonnes of CO₂e emissions annually, with 82% lower CO₂e and 99.7% less eco-toxicity compared to traditional methods.

• Supports circular economy by upcycling UMO and reducing reliance on virgin crude-derived base oils.

• Addresses corporate net zero goals and government mandates for sustainable lubricants.