ENAPAC: Sustainable DesalinationPlant for Atacama Region, Chile

• Dr. Hagen Gleisner, Engineering Director TRENDS Industrial

Developer & Owner: TRENDS Industrial S.A.

TRENDS Group is basedin Chile and operates inseveral markets andsectors in other americancountries.The proyect ENAPAC isdeveloped by his filialTRENDS Industrial S.A.

Ingeniero Civil Metalúrgico, SVP de Energía Renovables de TRENDS Industrial. Como Director de Ingeniería de ENAPAC, Hagen desarrolló la idea de combinar energía solar con desalinización para el proyecto.

Hagen Gleisner, Director of EngineeringIngeniero Civil Industrial, CEO del Grupo TRENDS. En los últimos 25 años ha fundado y administradomás de 20 empresas de distintas industrias, en Chile y el extranjero.

Rodrigo Silva, CEO of TRENDS

Ingeniero Civil Industrial, Gerente General del proyecto ENAPAC. Rafael tiene más de 35 años de experiencia en el desarrollo, financiamiento y administración, de proyectos y empresas, parael sector Privado y Público.

Rafael Bustos, Project ManagerIngeniero Civil Industrial. Consejera del Directorio de TRENDS. Valerie tiene másde 20 años de experienciaen proyectos de energía, desalinización, financierose inversiones, en Chile y Australia.

Valerie Barnich, Advisor of Board

Ingeniero en MedioAmbiente. Consejero del Directorio de TRENDS , Andrés cuenta con más de 10 años de experiencia en el desarrollo de negocios en el área medioambiental y agua, en empresas comoAbengoa y para el BancoMundial, entre otros.

Andrés Zancada, Advisor of Board

Ingeniero Civil Industrial. Gerente de Ingeniería de ENAPAC, Mario tiene másde 30 años de experienciacomo especialista en Energía. Previamenteestuvo en CGE y comomiembro de la Comisión de Energía del Colegio de Ingenieros .

Mario Rubio, Engineering Manager

Periodista y Master en Comunicación Política y Corporativa. Consejero del Directorio de TRENDS, Nicolas tiene más de 10 años de experiencia en Asesoría en Comunicaciones, paraempresas de Chile y el extranjero.

Nicolás Ibieta, Communicacion Man.Economista. Consejero del Directorio de TRENDS, Borjatiene más de 25 años de experiencia en la industria del agua, alrededor del mundo. Es Director de la International Desalination Association (IDA) y la European Desalination Society (EDS).

Borja Blanco, Advisor of Board

Geographic Location

Región de Atacama

Characteristics of Atacama Region- Highest solar irradiation of the world- Scarcity of water, increasing restrictions on its use- Mining operations and projects

Location of ENAPAC

Project Concept

Project’s Guiding Principles

- Sustainability ENAPAC is technically designed to maximize the use of the most cost-effective energy resource in the region, solar energy. This enables lowest and long-term stable water production costs

- FlexibilityFlexibility is a fundamental requirement for the intensive use of solar energy, to allow adaptability to off-takers’ demand and to changingmarket conditions.

Project’s Guiding Principles- Availability

The plant’s availability might be affected by:- External events (heavy rainfall / flood, earthquake, algal bloom, etc.)- Internal events (malfunction or failure of technical components, etc.)

The answers in the technical concept: - redundancy of main components - big water reservoires- the selection of suitable locations, - special structures, - seismic engineering, - modularity

among others.

Geo-Location

Intake

Intake

IntakeCharacteristics:

redundancy of main components

twelve diffusors separated by 13 m alongsidefrom the end of two discharge pipelines.

Intake

Intake pumps inside columns

andfilter systems

Desalination Plant 2,630 l/s (the biggest of Latinamerica

Binary and modular structure

Water treatment plant – process flow chart (normal operation)

Photovoltaic Plant 100 MW

( imagen referencial )

Intermediate Pumping Station

Reservoirs: 600.000 m3 (at 700 m altitude)

A floating cover lies directly on the water surface and follows the water level

Environmental Permit: Resolution with Unanimity

In October 2018 Trends obtained a positive Resolución de CalificacionAmbiental (“RCA”) for the ENAPAC Project up to the reservoir. It is worth highlighting that the Project was approved with unanimity (11 votes to 0).

http://seia.sea.gob.cl/expediente/ficha/fichaPrincipal.php?modo=ficha&id_expediente=2132536251

Nominated for: Design to Improve Life INDEX AwardNobel Prize for Sustainable Design

Thanks to its unique combination of minimum social and environmental impacts through shared infrastructure and exclusive use of clean energy, the Project was nominated for the Design to Improve Life INDEX Award, commonly referred to as the Nobel Prize for Sustainable Design in April 2018. http://award.designtoimprovelife.dk/nomination/2715

Business Model

Project Timeline until Commercial Operations Date

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Engineering up to Reservoir

Marine Concession ? ? ?

Social LicenceEngineering, Environmental and Other Permits from Reservoir to First, Critical Mass Off-Takers

Financing NegotiationsFinancial Close

Commercial Operation Date (Q1 2023)CONSTRUCTION OF ENAPAC

2018

Water Purchase Agreement with Critical Mass Off-TakersDetailed Engineering /EPC Contracts

2022 2023

Environmental Permit up to Reservoir

Land, Easements, Zoning up to Reservoir

DEVELOPMENT

2014 2016 20172015 202120202019

Working with Off-Takers to make the Project viable Salar de la Isla

Salar de Pedernales

Salar de Maricunga

COPIAPÓ

Caldera

Chañaral

Vallenar

01

03

02

01

02

03

La Coipa

Lobo Marte

Maricunga

0405

0607

Atacama Kozan

CaseronesCarola - CoeminEnamiPucobre

04 Caspiche (Norte Abierto)

05 Cerro Casale (Norte Abierto)

Relincho (NuevaUnión)06

07 El Morro (NuevaUnión)

RESERVOIR

Santo DomingoSierra NorteFranke

Central Cluster

North Cluster

Cluster Maricunga

Cluster Sur

Main Pipeline Routes to Off-Takers

Seeking Partners

TRENDS is seeking CO-DEVELOPERS and EQUITY INVESTORS

Trends is seeking one or several co-developer(s) to support the remainder of the development of the Project at least until financial close based on water purchase agreements with the first off-takers that make the construction of the first phase of the Project viable. This(ese) co-developer(s) do not necessarily have to remain in the equity of the SPV upon financial close.

ENAPAC’s attractive features for co-developers and equity investors• ENAPAC is the only viable water solution for the Third Region.

• Scarcity of water, increasing restrictions on its use

• social pressure make existing mining operations and projects under development seek desalinated water as a long-term viable alternative.

• Most mines in the Third Region cannot afford individual desalination systems due to their smaller size, their distance to the coast, their altitude, hence a multiclient project is their only option except for Norte Abierto (Goldcorp Newmont-Barrick), Nueva Unión (Goldcorp Newmont-Teck) and Santo Domingo (Capstone Mining).

• ENAPAC is the only multiclient project in the Third Region.

ENAPAC’s attractive features for co-developers and equity investors (2)

• ENAPAC offers optimized water tariff through shared infrastructure.

• ENAPAC is the first important milestone in the global water solution for northern Chile, the first step towards a regional (and national) water grid. It enjoys strong national and local government support.

• ENAPAC has a flexible, attractive size: capex ranges between MMUSD500 and MMUS1,800, based on preliminary estimates, leading to MMUSD150 to MMUSD450 equity amounts.

• ENAPAC presents limited risk compared to other desalination projects in Chile. The capacity of the reservoir is equivalent to a 7-day reserve if the project starts at 1,000 l/s. Desalination projects currently being built or developed in Chile have only a few hours of desalinated water reserve.

ENAPAC’s attractive features for co-developers and equity investors (3)• Diversified off-taker risk vs one single off-taker: gold, copper and iron mines

are among the potential off-takers.

• ENAPAC will have long-term stable cash flows with first class off-takers. Canadian, American, Japanese and Chilean first class off-takers

• Stable long-term EBITDA with limited volume risk (fixed monthly payments cover investment and return, pass-through of variable cost).

• Structure allows for project finance, optimizing shareholders’ return

• Timing: project timing matches off-takers needs.

• ENAPAC is an opportunity for newcomers to the Chilean infrastructure and desalination markets & is linked with Chile’s growth driver: the mining sector.

CONCLUSIONS• SUSTAINABLE

• MULTICLIENT

• SCALE ECONOMIES

• COMPETITIVE TARIFFS

• ROBUST AVAILABILITY

• ENVIRONMENTAL PERMIT

• SOCIAL ACCEPTANCE

… any questions: gleisner@me.com