CSIRO Enzyme Based BioremediationTechnologyCameron Begley, Commercial General ManagerCSIROJune 2010CSIRO.This Business Plan has been prepared by the Commonwealth Science and Industry Research Organisation (CSIRO) and its officers andemployees to provide background information in relation to BioRemCo (the Company).In accepting this Business Plan, the recipient agrees for itself and itsrelated bodies corporate andtheir respective directors, officers,employees, agents, representatives and advisers (together the Recipient) that it is provided on the terms and conditions of thisImportant Notice.Restrictions on distribution of this Business PlanThe Business Plan is for limited circulation to selected recipients. It is provided on a strictly private and confidential basis to be usedsolely by the Recipient. It must not be made available to, or discussed with, any other person without the prior written consent ofCSIRO and its advisers. It is provided to the Recipient solely for its use in connection with providing background informationinrelation to CSIRO and BioRemCo and it is not to be used for any other purpose.Recipient to conduct own investigation and analysisThis Business Plan is not to be considered as a recommendation by CSIRO and its advisers or any of their officers, employees, agentsor advisers that any Recipient invest in the Shares, or that aninvestment in shares is a suitable investment for the Recipient. TheRecipient should conduct and rely upon its own investigation and analysis of the information in this Business Plan and other mattersthat may be relevant to it in consideringwhether to acquire the Shares. Each Recipient considering an investment in the Sharesmustmake, and will be taken to have made, its own independent investigation and analysis ofthe information in this Business Plan.Independent expert advice (including from aRecipient's accountant, stockbroker, lawyer or other professional adviser) should besought before making a decision to invest in the Shares.Not a document requiring lodgement with ASICThis Business Plan is not a prospectus or other disclosure document required to be lodged with ASIC under Chapter 6D of theCorporations Act as the Offer is only made to persons who, or in circumstances that, fall within one of the exclusions from thedisclosure requirement contained in section 708 of the Corporations Act. Nor is a product disclosure statement or similar documentrequired under Chapter 7 of the CorporationsAct. Accordingly, this Business Plan does not contain the information that wouldbecontained in a prospectus or other disclosure document preparedunder the Corporations Act and does not purport to contain allof theinformation that may be necessary or desirable to enable a potential investor to properly evaluate and consider an investment in theShares.No responsibility for contents of Business PlanTo the maximum extent permitted by law, norepresentation, warranty or undertaking, express or implied, is made and, to the maximumextent permitted by law, no responsibility or liability is accepted by CSIRO and its advisers or any of their officers, employees, agentsor advisers or any other person as to the adequacy, accuracy, completeness or reasonableness of this Business Plan. To the maximumextent permitted by law, no responsibility for any errors or omissions from this Business Plan whether arising out of negligence orotherwise is accepted.This Business Plan contains various opinions, estimates and forecasts which are based upon assumptions that may not prove to becorrect or appropriate. Except to the extent implied by law, no representation or warranty as to the validity, certainty or completenessof any of the assumptions or the accuracy of the information, opinions, estimates or forecasts contained in this Business Planis madeby any of CSIRO and its advisers or any of their officers, employers, agents or advisers.IMPORTANT NOTICECSIRO.About CSIRO•Australia’s major strategic and applied R&D organisation•~ Au$1Billion p.a. (~70% Parliamentary appropriation/30%external)•Ranks in top 1% of world science institutions in 12/22 fields•Over 4000 science papers p.a.•~4000 granted or pending patents•>100 successful spin-off companiesCSIRO.LandGuardTM-Background (1) -OverviewLANDGUARD TM•Unique suite of enzyme technologies•Tailored bio-remediation solutions to targetspecific compound classes•Rapid acting, superior potency•Technology platform that addressespesticide contamination in water extendingto POS / POU horticultural produce•Equity raising now commencing toaccelerate production, product portfolioand market accelerationCSIRO.LandGuardTM-Background (2) –Global Drivers•Widespread use of pesticide products hasgiven rise to situations inwhich trace residues of the applied products are of concern topublic health and/or to the environment. Examples include:•where pesticides are subsequently washed into drainage water whichenters public water-ways and ultimately into sources of drinking water•where pesticide residues remain on treated produce causingrestrictions to trade and consumption•situations involving disposal of ‘waste’after treatment of produce orlivestock.•‘Landguard’proprietary enzymeproducts have been developed toachieve low cost, rapid degradation of undesirable pesticideresidues without the need for highenergy remediation, chemicalmitigation or dilution through flushing high volumes of wateCSIRO.LandGuardTM-Market Opportunities (Immediate)Environmental Water•UK vet pesticides remediation legislation passed in 1Q10. Marketlaunch4Q10•http://www.environment-agency.gov.uk/research/library/position/116250.aspx•http://www.environment-agency.gov.uk/research/library/position/116246.aspx•Incentive to use the product has been created for permit holdersand significantpenalties for breach of permit is also anticipated•California broad acre pesticide remediation in draft. Expected market launchend 2011•http://www.cdpr.ca.gov/docs/emon/surfwtr/regulatory.htmSurface WaterRegulations•http://www.waterboards.ca.gov/centralcoast/water_issues/programs/ag_waivers/ag_order.shtml•regulatory changes in California are expected toresult in a pesticide residue limit of15 parts per trillion (ppt) applicable toboth OP and SP pesticide chemistries.•There are also reports emerging in the media from China and India regardingincreasing concern over environmentalwater quality and the impact ofpesticide use•In Australia, there are drivers emerging for remediation of atrazine from use inforestry operations and on sugarcane crops, with recent press highlighting thepotential damage to the Barrier ReefCSIRO.LandGuardTM-Market Opportunities (1 –3 years)Municipal & Potable water•Rising interest in public health and water quality atconsumer level•Municipal and point of use / entry opportunitiesemerging in US, China and India•Most significant segment identified to date isatrazine residues in mid west USA•segmented by municipal water treatment and pointof use (POU) / point of entry (POE) segments.•certain municipal opportunities will lendthemselves to the use of enzyme basedtechnologies, most likely where membranesystems require concentrate or waste disposal•POU / POE opportunities will likely emerge wherecarbon (rather than membrane) media is thefavoured and enzymes can be immobilized on amedia to remove pesticide residues.CSIRO.LandGuardTM-Market Opportunities (2+ years)Industrial water and Horticulture & Specialties1.Industrial water•Waste water treatment for specific organicresidues2.Horticulture & Specialty•Commodity wash applications at point ofpacking / point of sale•Commodity pesticide removal applications atpoint of sale / point of use•Remediation of golf course irrigation run offCSIRO.Technical performance criteria•We discover & improve enzymes with modern molecular biology•The prerequisites are demanding:•>2 logs detoxification•Preferably single step detoxification•No expensive co-factors•low Km(μM or ppm)•respectablekcat(>100 turnovers/minute)•broad substrate range within a pesticide class•bacterial expression (≥5% yield as enzyme)•broad temperature range•broad pH range•shelf life in months•preferably proprietary platform IP•But are generally achievable with modern biotechnologyCSIRO.OpdA meets all the technical performance criteriaSingle step detoxification•One step hydrolysis yielding short-lived,nontoxic productsHigh catalytic efficiency•Acts upon its best substrates atdiffusion-limiting rates (> 2000 sec-1)Cofactor-less•Non-diffusible metal cofactor, no addedcost to enzyme production or useExpression and stability•Good expression and extremelystablePatent position•CSIRO proprietarySuitable substrate range•Targets most major OPsin the market,except for N-alkyl (e.g. fenamiphos) andaliphatic non-vinyl OPs(e.g.dimethoate)CSIRO.020406080100120140160180200051015202530Time post enzyme addition (min)

Diazinon Concentration (ppm)20,000 Units/100L40,000 Units/100L60,000 Units/100L*: One Unit of enzyme activity is defined as the amount of OpdAthat hydrolyses 1μmoleof ethylparathion perminute at 25oC, in 50 mMTris.HClpH 8.0, 100μMethyl parathion initialSource: Virbac Pty LimitedApproaching 99% pesticidedegradation after 7 minutesLandguardTMOP-A: typicalpesticide degradationCSIRO.Fate of Diazinon following LandguardTMBy-products are always significantlyless toxic than original activePesticideBreakdownProductsDiazinon#1#2LC50Bluegill 96 hr0.121001,200EC50Daphnid 48 hr0.0005100-LD50Trout0.531001,200NNH3C(H3C)2HCO PSOCH2CH3OCH2CH3NNH3C(H3C)2HCOHPSOCH2CH3OCH2CH3HOCSIRO.Product safety•Metabolite impacts of degraded OP using Landguard:•Ecotoxicity issues for CSIRO’s ‘Landguard’- organophosphatedegrading enzyme, Dr John Oakeshott, CSIRO Entomology, 11 November2008•Chlorpyrifos Residues in Corn Runoff Waters, Terry Prichard WaterManagement Specialist, UC Davis.•Toxicity Assessment of Country Diazinon treated with Landguard OPA, Orica Australia Pty Ltd, Test Report, November 2006•Project Report:The Use of Landguard OP-A to Mitigate Residues ofChlorpyrifos in Alfalfa tail water–January 2007•Environmental Toxicity (from NICNAS, REACH registration)1•Acute toxicity (zebra fish) –not observed effect after 96h at 100mg/l•Acute toxicity (daphnia) –not observed immobilization after 48h at 100mg/l•Acute toxicity (algae) –not observed effect at 100mg / l•Biodegradation rate after 28 days is 95%•Considered readily biodegradable and highly water soluble, therefore longterm adverse effects in the aquatic environment can be excluded1. Full Notification Report: 05-06-8587-42CSIRO.Current Product range and status•Landguard OP•Degrades a broad range of organophosphatechemistries•Freeze dried powder added manually (batchtreatment) or via dosing system (continuoustreatment)•Distribution partners identified in California and UK•Landguard ZIM-A•Degrades fungicidal carbamates•Landguard SP•Degrades a broad range of synthetic pyrethroidchemistries•Landguard TRZ•Trials completed in Queensland with 1 logreduction in 4 hours in a 1 ML pond starting with160 ppb atrazineCSIRO.LandGuardTM-Technology pipeline•Advanced research is underway to develop similarenzymatic products for degradation of residues ofother pesticides of interest:•Phenyl-ureas(diuron)•Neonicotinoids(specifically imidacloprid)•Insecticidal Carbamates•Benzimidazoles•Strobilurin•Paraquat•Glyphosate•Chlorinated hydrocarbonsThank youFor further information:Cameron BegleyGeneral ManagerCameron.Begley@csiro.auAcknowledgements:CSIRO: John Oakeshott, Robyn Russell, Colin Scott, Gunjan Pandey, CarolHartley, Colin Jackson, Matt TaylorOrica: Steve Kotsonis, Craig Clarke, Kate Dawson, Steve CarrollHorticulture Australia Limited, Rural Industries Research & DevelopmentCorporation, CRC Sugar Industry Innovation through BiotechnologyCentral Science Laboratory (UK), CEMAS (UK), RCC Ltd (CH)Agentase(USA), Hydrophilixcorporation (USA), University of California(Davis), Stewart Agricultural Research Services (USA)University of The PhilippinesChung-HsinUniversity, TaiwanAustralian Centre for International Agricultural Research, Analytical ConsultingServices, AgrifoodTechnology, Entox(Queensland Health), Agrisearch, ServeAg and VirbacPty LimitedCSIRO Enzyme Based BioremediationTechnology –Technical InformationCameron Begley, Commercial General ManagerColin Scott, Research ScientistCSIROFebruary 2010CSIRO.3⁄417 Hectares of cotton was sprayed with methyl-parathion.3⁄4Field flood irrigated 20 hrs later3⁄4Irrigation return channel (80,000L) treated with LandguardTM OP-A .Untreatedirrigation run-off residue levels varied between5and15 ppboverthe first 40 minTreatedirrigation run-off residue levels were reduced to0.3 ppbprior to returnto the water source3⁄4Repeat performance on 4000haIrrigation Run-Off TreatmentCSIRO.0204060801001201401601800 4 8 12Time (hours)

[Atrazine] μg/LABAn atrazine contaminated holding damVolume = 1.5 megalitresApplicationof EnzymeTime course of atrazine degradationAll very good but –can we use TrzN as abioremediant?>90% reduction in ~ 3 hoursCSIRO.Use Landguard OP in pesticideevaporation pondsAddition of Landguard at low rates (200g/ML), achieves>50%reduction in profenofos>90%reduction inm-parathion and chlorpyrifosin 2 weeksCSIRO.Time (min)02510203060OpdA treated3121(32%)6.2(80%)3.4(89%)0.78(97%)0.52(98%)0.3(99%)Methyl parathion concentration ppm and % reductionachieved by OpdA enzyme at dose rate 1g/100LTreatment of contaminated spray equipmentrinsateusing Landguard OPACSIRO.Diazinonin sludge (soil and organic matter) reduced from90,000 to 1 ug/Lwithin 3 hoursfollowing the application of Landguard OP-A at a rate of20g/100LTreatment of sheep dips using Landguard OPACSIRO.Applications of Landguard OPA to soil following foliarpesticide applicationsLandguardDose rateg/hatimeDiazinonConcentrationin the soil(mg/kg)PesticideBreakdown01 hr2710013.251%2506.576%5000.399%500 + 1-mm rain4.882%07 days34.310014.159%2501.396%5003.989%500 + 1-mm rain2.094%LandguardTMOP-A sprayed onto the ground directly after foliar pesticide sprayingto prevent pesticide run off into surface water following rain or irrigation.CSIRO.Using Landguard OPA for on-commoditydetoxification•Tested cucumbers,tomatoes, egg plant, bittergourd, mangoes... (& wool)•Tested ~10 OPs•Low dose (2g/100L)treatment for ~ 5 minutes•Up to 80%OP removal•But not yet consistent*CSIRO.9Single step detoxification9One step hydrolysis yielding short-lived, nontoxic products9High catalytic efficiency8Wild-type has low activity9Activity improved by enzyme engineering9Cofactor-less9No cofactor9Expression and stability9Good expression and extremely stable9Patent position9CSIRO proprietary9Suitable substrate range9Targets most major SPs)•SP performance: E3 did not initially meet allthe technical performance criteriaImprovement in Bifenthindegradation05101520253035E3 Wt Best mutantCSIRO.9Single step detoxification9One step hydrolysis yielding, nonherbicial products9High catalytic efficiency9Acts upon its best substrates at high rates (> 12 sec-1)9Cofactor-less9Non-diffusible metal cofactor, no added cost to enzyme production oruse9Expression and stability8Wild-type yields little protein9Improved yield by enzyme engineering9Patent position9FTO9Improved enzyme CSIRO owned9Suitable substrate range9Targets all major triazine herbicidesTrzN did not initially meet all the technicalperformance criteriaM 1 2 3 4kDa5037.52575