“This is a game-changer”John HinesFormer Deputy Secretary for Water PA Department of Environmental Protection

Dec 4, 2017 www.biontech.com

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Forward Looking Statements/Risk FactorsThis 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 informationand that involve substantial risks and uncertainties. The Company's actualresults of operations, most of which are beyond the Company's control, coulddiffer materially. For this purpose, any statements contained in thispresentation that are not statements of historical fact may be deemed to beforward-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 orcomparable terminology are intended to identify forward-looking statements.Risk Factors that could cause or contribute to such difference include, but arenot limited to, limited operating history; uncertain nature of environmentalregulation and operations; uncertain pace and form of development of nutrient(N&P) reduction market; risks of development of first of their kind IntegratedProjects; need for substantial additional financing; competition; dependence onmanagement; and other factors. Additional information regarding theCompany’s 3G technology platform should be reviewed in the CompanyOverview, available upon request and at www.biontech.com. Investors areurged to also consider closely the disclosures and risk factors in theCompany’s current Form 10-K, filed with the Securities and ExchangeCommission, available at www.sec.gov.

A new untapped space at the intersection of the…− $110 billion clean water sector− $180 billion livestock industry− $ 40 billion organic food industry− $185 billion biofuels industry

New Market/ Investment Space

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Untapped Opportunity

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More than 70% U.S. livestock are produced on large farmsscale + concentration = cost-effective treatment

Overview

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˃ Dairy, meat and egg production is one of the largest sources of pollution in the United States and the world.

˃ Industry is under fire from consumers, advocacy groups, and investors for environmental and public health impacts.

˃ Bion’s patented technology provides comprehensive treatment (similar to municipal wastewater treatment for human waste).− Almost eliminates the air and water pollution.− Recovers byproducts/ value from the waste that substantially

improves production efficiencies and economics. ˃ Bion has excellent management and relationships with some

of the largest livestock producers in the U.S. and the world.˃ Bion’s technology is proven and accepted by US EPA, USDA,

and several U.S. states.˃ Policies in the U.S. (and the world) are already changing to

encourage livestock waste cleanup.

Nutrient Cycle

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Sources:− Human waste− Transportation/ combustion− Industrial/ manufacturing− Urban runoff− Agricultural runoff

70% in most major watersheds

Agriculture:− Direct runoff− Atmospheric deposition

Nitrogen and Phosphorus

The Problem…

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2 billion poultry80 million beef cattle62 million swine9 million dairy cows

1.37 BILLION tons of animal waste(130X human waste)

Spread on the ground...

In the United States only

Algae Blooms/ Dead Zones Gulf of Mexico

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Annual dead zone averages 5,500 square miles

2017 dead zone is the largest on record

Texas Coast

Dead Zones

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Low- or no-oxygen DEAD ZONESkills fish, shrimp, crabs, and

almost everything else

Toxic Algae BloomStuart, FL July 1, 2016

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Toxic Algae BloomLake Erie in 2014 – Toledo Water Crisis

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˃ One of America's most widespread, costly and challenging environmental problems…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 NutrientsLocal, Regional, National, Global Problem

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540 dead zones worldwide

˃ Excess nutrients contaminate− Surface water (lakes, rivers, coastal waters)− Drinking water (aquifers/ water wells)− Soil

˃ Air Pollution− Ammonia

˃ Contributes to PM2.5 – small inhalable particulate matter˃ Contributes to nitrogen runoff

− One of the largest sources of greenhouse gases− Hydrogen sulfide (multiple health issues)− Nitric oxide (acid rain)

˃ Pathogens − Food-borne illnesses − Antibiotic resistance

Environmental/ Public Health Impacts

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Economic ImpactsRising U.S. Clean Water Costs

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˃ Dislocated supply chain is inefficient˃ Industry cannot adapt to changing conditions

− Cannot expand without more land − Cannot consolidate or relocate− Profits are falling

˃ Resources wasted or underutilized− Energy− Nutrients− Water

˃ Manure handling costs increasing˃ Regulation will come if they do not clean up voluntarily˃ Consumers and big institutional investors are

increasingly demanding sustainability

Economic ImpactsLivestock Industry

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˃ Proven comprehensive waste treatment for large-scale livestock production facilities– High-impact low-cost verifiable environmental solutions largely

eliminate environmental impacts˃ Platform closes the loop: recovers value from the waste stream

– Clean water, renewable energy, and nutrients– High-value byproducts help offset costs of environmental cleanup

˃ Verification allows USDA-certified SUSTAINABLE BRAND˃ Bion is first – no other proven comprehensive solutions yet

Technology Platform Overview

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˃ Mark Smith, Chairman 25 years˃ Ed Schafer, Exec Vice Chairman 7 years

− Former U.S. Secretary of Agriculture˃ Jon Northrop, Director (Founder) 25 years˃ Dominic Bassani, CEO 17 years˃ Steve Pagano, Chief Engineer 25 years˃ Jeremy Rowland, COO 11 years˃ Craig Scott, Dir of Comm 24 years

Dedicated and Capable Team

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˃ Coalition for Affordable Bay Solutions (CABS)˃ Founding members

– Bion– JBS USA (JBS SA: largest meat processor in the world)– Kreider Farms (a leading U.S. egg producer)– Fair Oaks Farms (large U.S. dairy)

˃ Legislative and policy support– National Milk Producers Federation – Dairy Farmers of America – Land O’Lakes– PA Farm Bureau – PennAg

Critical Industry Relationships

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˃ Second generation tech platform‒ Proven at commercial scale ‒ Patented in U.S. and other countries‒ Accepted by US EPA, USDA‒ Qualified for federal loan guarantees

˃ Third generation (3G) tech platform: successful pilot trials‒ Next generation advanced technology – patents pending‒ Little technology risk: combines processes and equipment with

known reliability and history ‒ Produces high-value byproducts and renewable energy‒ Small-scale commercial pilot in 2018‒ Anticipate initial development of full-scale commercial installation

in mid-2018

Bion’s Technology

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˃ Byproducts− High-value pure organic1 nitrogen fertilizer− Organic1 soil amendment products− Bion’s 3G process was developed to meet OMRI

standards (no chemicals or outside sources)˃ Renewable energy

− Pipeline-quality renewable natural gas− Renewable energy and carbon credits

˃ USDA-certified2 sustainable brand˃ Nutrient reduction credits1Application for organic certification pending 2US Department of Agriculture conditional approval received - pending final inspections

3G: Multiple Revenue Streams

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Credit Trading Will Save Billions

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˃ RTI/ Chesapeake Bay Commission study (2012)˃ Bipartisan Pennsylvania Legislative Budget and

Finance Committee study (2013)− 80 percent savings – $1.5 billion annually – by 2025 if

the state adopts a competitive bidding program to buy nutrient credits from the private sector.

− Bion is featured prominently in the study.˃ Univ of Maryland Chesapeake Bay Financing Strategy

Report (2015)˃ Colorado State Univ/ US EPA/ NPS Study (2016) on

atmospheric nitrogen˃ Pending stormwater requirements represent billions in

additional costs – EPA supports trading

˃ Pennsylvania and the Chesapeake Bay− Real sanctions can begin after 2017 − Competitive bidding legislation in PA legislature – Gov’t reform− Supported by Republican leadership, ag groups, taxpayer groups

˃ Federal energy tax credit for biogas/nutrient recovery− Introduced in US Congress (House and Senate) in 2017− Bipartisan− 30% Investment Tax Credit (ITC)− Tax-free bonds

˃ Market-driven solutions supported by Trump Admin˃ Livestock industry support˃ US EPA Letter of Expectation to PA DEP

Not ‘going to happen’ – happening NOW

Policy Change

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˃ Ammonium bicarbonate crystals – stabilized nitrogen− Without phosphorus, salts, micronutrients, fiber, pathogens− Preparing application to Organic Materials Research Institute

(OMRI) to certify for use in organic production− HIGHLY DISRUPTIVE PRODUCT

˃ OMRI-certified organic carries a significant price premium− Low-end products (‘impure’) start at $3/lb N− Envirokure @ $12/lb N bulk− Grower’s Secret @ $40/lb N retail

˃ KF2 potential− Ammonium crystals: 6M lbs N/yr− Solids: 60,000 tons/yr @ 85% dry matter

Organic Nitrogen Byproduct

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˃ Pipeline quality, renewable natural gas˃ Federal energy tax credit: 30% ITC on biogas capex

− Bill in US Congress to extend and apply to nutrient-control˃ RE Subsidies/Credits – robust markets today

− RIN Credits (D3) under the Renewable Fuel Standard – national market

− LCFS Credits under CA’s Low Carbon Fuel Standard market˃ KF2 potential

− Renewable nat gas produced: 475,000 MMBTU/year (~9M gal)− D3 RINs: 11.727 D3 RINs per MMBTU − LCFS Credits: 13.5 MMBTU per LCFS credit

˃ Primary risk: pricing (nat gas; RIN and LCFS credits –historical market data available)

Renewable Energy

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˃ Increasing consumer demand for sustainable practices− Organic industry growing at 11%− No analog in meat production

˃ Livestock industry under attack− Water pollution, greenhouse gases, antibiotics, animal welfare

˃ Ceres and other large activist investors are pushing for increased sustainability in the livestock ag sector

˃ Positive drivers− Market differentiation; premium pricing and higher margins

˃ Negative drivers− Avoid foodborne illness incidents and future regulation; public

image (toxic algae blooms, dead zones, greenhouse gases, antibiotic resistance, ‘Meatless Mondays’, etc.)

˃ Sustainable brand = market share with pricing power

Sustainable Branding

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˃ Verifiable metrics:− Reduced nutrient footprint− Reduced carbon footprint− Pathogen kill

˃ Point of sale verification with barcode− Produced when and where− Farm description and history− Animal husbandry and waste management practices− Steps to improve sustainability− Quantified results/impact calculator

˃ USDA Process Verified Program (PVP)− Provisional approval pending final inspections

Bion Sustainable Brand

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Beef Cattle Feedlot Comparison

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Revenue/EBITDA AnalysisRevenues EBITDA

Feedlot Bion Feedlot Bion

Cattle Ops $273M $290.4M $5M $11.3M

Branding 0 15.2M 0 11.7M

Byproducts 0 12.5M 0 9.7M

Carbon 0 5.3M 0 3.8M

Nutrient Credits 0 6.6M 0 5.5M

Total $273M $330M $5M $42M

The table below compares a traditional beef cattle feedlot to a state-of-the-art facility with waste treatment and byproduct production. The table only illustrates the added value from waste treatment and resource recovery and is not intended as a model of an actual or anticipated Bion project.

˃ PA legislation to implement competitive bidding (Q4 2017/Q1 2018)˃ Build small-scale pilot/ produce ammonium crystals (planned for Q4

2017/Q1 2018)˃ Apply for OMRI approval of organic certification (in process, expect

to apply by Q1 2018)˃ Energy tax credit bill for biogas/nutrient control technologies now in

the U.S. House and Senate (2018)˃ Begin development of first 3G commercial installation (Q1 2018)˃ Begin development of Kreider 2 (Q2/3 2018)

Timetable is based on management’s current expectations and is subject to a number of variables beyond Bion’s control, including political processes, vendor schedules, etc.

Anticipated Upcoming Catalysts

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2 billion chickens80 million beef cattle 62 million swine9 million dairy cows

5% market penetration of beef, swine, poultry layers only (not including dairy, poultry broilers)

$565M est. annual revenueBion’s current valuation: $20M (~$40 million fully-diluted)

Opportunity

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