burcon nutrascience corporation johann f. tergesen president & c.o.o

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Burcon NutraScience CorporationJohann F. Tergesen

President & C.O.O.

Burcon NutraScience CorporationJohann F. Tergesen

President & C.O.O.

Burcon is …Burcon is …

Burcon is …Burcon is …

Mining Canola Meal

Mining Canola Meal

Burcon is … Burcon is …Patented

TechnologyPatented

Technology

Burcon is …Burcon is …

Burcon is …Burcon is …

Exceptional Development Partner

Exceptional Development Partner

Burcon is ...Burcon is ...

... mining the greatestuntapped source of

high quality plant protein in the World.

... mining the greatestuntapped source of

high quality plant protein in the World.

Food IngredientsFood Ingredients

Packaged Foods Market USD$1.97 Trillion

Packaged Foods Market USD$1.97 Trillion

Protein Ingredient IndustryProtein Ingredient Industry

Protein Ingredient Market - Food

Protein Ingredient Market - Food

A Worldwide Industry

A Worldwide Industry

North America

$4.2b

North America

$4.2b

Western Europe$4.9b

Western Europe$4.9b

Asia~$4.0b

Asia~$4.0b

Protein Ingredient IndustryProtein Ingredient Industry

Animal:- Casein (dairy)- Whey (dairy)- Dried egg-

white- Gelatin

Animal:- Casein (dairy)- Whey (dairy)- Dried egg-

white- Gelatin

Plant:- Soybean- Wheat Gluten

Plant:- Soybean- Wheat Gluten

Functionality = ValueFunctionality = Value

Hellman’s Mayonnaise(egg – emulsification)

Knorr Soups(dairy – viscosity &

flavor)

Yves Veggie Burgers(soy – water binding, fortification)

Dr. Oetker Cake Mix(egg white – foaming)

Hellman’s Mayonnaise(egg – emulsification)

Knorr Soups(dairy – viscosity &

flavor)

Yves Veggie Burgers(soy – water binding, fortification)

Dr. Oetker Cake Mix(egg white – foaming)

Macro Forces are all PositiveMacro Forces are all Positive

Plant Proteins:Middle-class Pop’n growth China Health & Wellness trendSustainability EconomicsBSE / e. Coli / Avian FluSecurity

Plant Proteins:Middle-class Pop’n growth China Health & Wellness trendSustainability EconomicsBSE / e. Coli / Avian FluSecurity

Growing DemandGrowing Demand

China's middle class has grown from 65.5 million in January 2005 to 80 million in January 2007. It is

forecast to expand to 700 million by 2020, driven by continued strong economic growth.

(Euromonitor International, July 2007)

“Within Nestle's overall view of health and nutrition as a growth engine, we have identified a $70bn

opportunity in delivering nutrition and affordability in developing markets”.

(Nestle, Paul Polman CEO)

Health & Wellness tops NewsHealth & Wellness tops News

Kraft explains its approach to health and wellness. The main factors driving a

growth in health and wellness in foods are an ageing population, rising obesityrates, nutrient deficiency and consumer demand.

Nestlé is in the midst of transforming from a general food company into ahealth, nutrition and wellness company, "taking on more and more of theapproach of the pharmaceutical industry, focusing on specific 'pipelines' ofresearch."

PepsiCo's number one challenger, Coca-Cola, has aggressively tackled theFunctional beverage industry this year.

General Mills: its three areas of priority are weight management, heart healthand 'proactive health.'

Danone is shifting focus to target growing consumer demand for healthierproducts.

Biodiesel – Canola/RapeseedBiodiesel – Canola/Rapeseed

ADM:

World leader in bio-energy

ADM:

World leader in bio-energy

Animal Protein Prices RisingAnimal Protein Prices Rising

Casein Price

Complementary Proteins Complementary Proteins

OpportunityOpportunity

Canola Production Canola Production

Estimate 2006/2007(million metric tons)Estimate 2006/2007(million metric tons)

USDA estimates: November 2007USDA estimates: November 2007

15.912.7

9.01.0

3.3

5.8

EUChinaCanada (20%)IndiaEastern EuropeOther

Total (47.7)Total (47.7)

Protein Ingredient IndustryProtein Ingredient Industry

Canola meal price benefits from Bio-diesel

Canola meal price benefits from Bio-diesel

Oilseed prices risingOilseed prices rising

OpportunityOpportunity

Opportunity Opportunity

“Health and wellness are the main sources of growth in the soft-drinks industry.

In 2005 global sales of healthy drinks, which include bottled water, fruit juice, and sports and energy drinks, amounted to $138 billion, or 45% of the soft-drinks market.

Growth rates are seven times higher than for carbonated sugary drinks.”

The Economist January 6th, 2007

“Health and wellness are the main sources of growth in the soft-drinks industry.

In 2005 global sales of healthy drinks, which include bottled water, fruit juice, and sports and energy drinks, amounted to $138 billion, or 45% of the soft-drinks market.

Growth rates are seven times higher than for carbonated sugary drinks.”

The Economist January 6th, 2007

Canola Protein - NutritionCanola Protein - Nutrition

Our findings show that this protein source could be of great interest to human nutrition.

In particular, the high biological value of canola protein was remarkable,

presumably due to the high levels of AA, and particularly sulfur AA.

(Bos et al, Journal of Nutrition 2007)

Our findings show that this protein source could be of great interest to human nutrition.

In particular, the high biological value of canola protein was remarkable,

presumably due to the high levels of AA, and particularly sulfur AA.

(Bos et al, Journal of Nutrition 2007)

Supertein™Supertein™

Gatorade-type beverage (left) Citrus soft-drink (right) with 2% Supertein™Gatorade-type beverage (left) Citrus soft-drink (right) with 2% Supertein™

Supertein™Supertein™

2% Supertein in citrus soft drink2% Supertein in citrus soft drink

Supertein™, Soy, Egg and Whey protein, all at 2% in a citrus soft drinkSupertein™, Soy, Egg and Whey protein, all at 2% in a citrus soft drink

Supertein™Supertein™

Solubility TestSolubility Test

Stability – settling testStability – settling test

Soy, Egg and Whey protein settle-out of solution within hoursSoy, Egg and Whey protein settle-out of solution within hours

Supertein™Supertein™

QuickTime™ and aH.264 decompressor

are needed to see this picture.

Puratein®Puratein®

Egg-less CakeEgg-less Cake

Puratein®Puratein®

Egg-less ApplicationsEgg-less Applications

Puratein®Puratein®

QuickTime™ and aH.264 decompressor

are needed to see this picture.

Deal StructureDeal Structure

Royalty on Top Line Revenue

IP Protection

License = Canola Technology

Royalty on Top Line Revenue

IP Protection

License = Canola Technology

Patent PortfolioPatent Portfolio

Seven U.S. patents granted

Seventeen patent applications- Technology & process- Uses- Signature Characteristics

Seven U.S. patents granted

Seventeen patent applications- Technology & process- Uses- Signature Characteristics

Achievements & MilestonesAchievements & Milestones

Applications testing & MTA’s - Ongoing

Production – Supertein & Puratein - Ongoing

Toxicology feeding trialsUnderway

Facility constructionEstimated at 12 months. Starting after toxicology results

Initial production/salesTwo years implies ‘09

Applications testing & MTA’s - Ongoing

Production – Supertein & Puratein - Ongoing

Toxicology feeding trialsUnderway

Facility constructionEstimated at 12 months. Starting after toxicology results

Initial production/salesTwo years implies ‘09

GRAS = Generally Recognized as Safe GRAS = Generally Recognized as Safe Two ways to demonstrate GRAS:

1) Current scientific assessment by an expert review panel, or

2) Show the ingredient was sold in foods prior to January 1, 1958.

Unusual feature is the use of a private expert review panel organized by the company seeking GRAS. Companies must engage highly respected experts whose scientific and personal integrity are beyond doubt.

Two ways to demonstrate GRAS:

1) Current scientific assessment by an expert review panel, or

2) Show the ingredient was sold in foods prior to January 1, 1958.

Unusual feature is the use of a private expert review panel organized by the company seeking GRAS. Companies must engage highly respected experts whose scientific and personal integrity are beyond doubt.

GRAS ProcessGRAS Process

The qualified experts review the available scientific evidence and after consultation recommend additional scientific testing that may be required.

The qualified experts review the available scientific evidence and after consultation recommend additional scientific testing that may be required.

GRAS Process GRAS Process

GRAS self-affirmation is achieved when the monograph, signed by all members of the GRAS Panel, includes the unanimous conclusion of the panel that the substance is both safe and generally recognized as safe for its intended use.

GRAS self-affirmation is achieved when the monograph, signed by all members of the GRAS Panel, includes the unanimous conclusion of the panel that the substance is both safe and generally recognized as safe for its intended use.

Capital StructureCapital Structure

Shares issued : 25,149,259

Warrants : 0

Stock Options : 2,183,243

Fully Diluted : 27,332,502

Current Market Cap. : $129,500,000

Shares issued : 25,149,259

Warrants : 0

Stock Options : 2,183,243

Fully Diluted : 27,332,502

Current Market Cap. : $129,500,000

OpportunitiesOpportunities

Pipeline: Additional applications Product diversification

Example: Anti-oxidants NPPD’s New opportunities

Pipeline: Additional applications Product diversification

Example: Anti-oxidants NPPD’s New opportunities

Why Invest Now?Why Invest Now?

BU Will Be Discovered: Product trials Plant Construction Other ADM Announcement

BU Will Be Discovered: Product trials Plant Construction Other ADM Announcement

Take-home messages Take-home messages

Product trials with global F&B co.’s

Revolutionary Products

Positive Macro Forces

Exceptional Partner

Product trials with global F&B co.’s

Revolutionary Products

Positive Macro Forces

Exceptional Partner

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