LNG FUEL SOLUTIONS – LATEST DEVELOPMENTS NEW FRONTIERS IN ENERGY 2012

SEPTEMBER 25, 2012

Agenda

AGENDA • Introduction to Prometheus • Case for LNG • Why it’s sustainable • Latest developments • Opportunities for investors

2

Prometheus Overview

SPECIALIZING IN NATURAL GAS FUEL SUPPLY SOLUTIONS VIA LIQUEFIED NATURAL GAS (LNG)

• Headquarters in Houston, Texas • Predecessor company started 8 years ago

as a Liquefaction technology play • Repositioned in 2008 as vertically

integrated LNG production and supply • Operations throughout US & western

Canada • Named Platts Energy Award Finalists – in

2011 and 2012 • Privately held--Major Shareholders:

− Shell Technology Ventures Fund 1 BV (June, 2009) − Black River Asset Management (September, 2008)

3

We are a pure-play on the Oil – Natural Gas spread

Source EIA.gov

4

Off Pipeline customers make up a sizeable market

Highway 58%

Marine 9%

Heat 7%

Farm 5%

Industrial 4%

Off Highway 3%

Power 3%

Oilfield 2%

Others 4%

USA Oil-Derived Fuel Consumption 2010 Total = 167MM gpd

USA Hydrocarbon Pricing1

($ per MMBtu)

0.00

5.00

10.00

15.00

20.00

25.00

#2 Diesel Wholesale

Propane Wholesale

Natural Gas1

(1) Natural Gas price is Citygate from ’90-’00 and Industrial after 2001

We provide turnkey supply, logistics, equipment & service

Natural Gas In Natural Gas Out

LNG Fueling for: Drilling Rigs

Industrial Boilers

5

Liquefaction Transportation Onsite storage Regasification

6

The key is our portfolio of supply sources

Surety of supply is critical Customer demand is volatile Supply disruptions are commonplace We manage the transportation cost

implications Our robust supply portfolio enables us to

manage through the surprises

The case for LNG

LIQUEFIED NATURAL GAS (LNG) is less costly and cleaner than Diesel and Propane alternatives

• Lower Cost than Diesel and Proppane • Cleaner – lower NOx and Particulate emissions • Reliable – sufficient supply and predictable delivery times • Safe – comparable procedures to industrial gas • Proven – making deliveries today

7

Today’s spread makes LNG the low cost option for industrials

LNG is more cost effective than oil-derived fuels – and more immediate than Pipeline construction projects

8

0

1000

2000

3000

4000

5000

6000

7000

0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000

Diesel

Propane

LNG

Pipeline

Total Cost of Fuel Dollar per Day

LNG Sweet Spot Delivered 300 Mi

Daily Fuel Consumption – Gallons of Diesel Equivalent

$3.40 ULSD Delivered 100mi

$1.60 Propane Delivered 100mi $6.0MM

2-3mi Pipeline$2.80

gas +LDC

It’s sustainable – customer economics hold up into the future

Innovation, access to capital and customer density are the keys

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Diesel v. LNG – Current Cost Stack Dollar per Diesel Gallon Equivalent

Today: $98 Crude, $2.80 NG

Diesel v. LNG – Future Cost Stack Dollar per Diesel Gallon Equivalent

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Diesel LNG

Storage and Regas

Delivery/Adder

Commodity

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Diesel LNG

Future: $80 Crude, $6.00 NG

20% to Customer 18% to Customer

Source EIA.com

And Natural Gas is a much cleaner alternative

Fuel Switching is the easiest path to achieving emissions control goals

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Combustion Products NOx – g/bhp-hr

01234567

Diesel (3512C) NG (3516B)0

0.010.020.030.040.050.060.07

Diesel (3512C) NG (3516B)

PM – g/bhp-hr

Source Cat Data Sheets for 1300ekw 3516B and 3512C

Prometheus Deliveries 2008 - 2012

LNG is Reliable and Safe

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Source : Prometheus logistics system for delivers through June, 2012 Note:*Tracked since January 2009 through 8/31/2012

Reliability maintained while growing deliveries by 225%

Exposure Hours Since Operation* (Employees + Contractors)

754,544

LTIs / Total Recordable Incidents 1/1

STC for 12 Life Saving Rules 1.0

STC for Defensive Driving Course 0.85

Regulatory Violations/Citations 0

Shell Resources and Practices: • Incident Investigation and Reporting • HSSE Auditing • Crisis Management Program • Contractor Management Program • 12 Life saving Rules • Journey Management Program

Safety Record

The Industrial LNG market is entering a phase of rapid growth

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Prepared for Growth New Markets Opening New Entrants Appearing

• Currently delivering 40-50 kg each day

• Preorder kit to serve anticipating growth

• Opportunity pipeline up 40%+ since June

• Supply network in place to support 4x growth

• Firsts for Prometheus − Dedicated rig in Marcellus − Customers in Canada, NH

and TX − Multi rig/multi year − Temp Power project − Frac engine tests

• New Applications/Inquiries − Bi-Fuel (CAT “DGB”) − Back-up Fuel − Remote Communities

• Linde for equipment and services

• UGI & Centerpoint in LNG supply

• Transgas for transport/logistics in New England

• Equipment manufacturers adding capacity

• Merchant LNG plant developers

Recent Developments

The new entrants validate the opportunity and reduce supply chain risk for buyers – we welcome this healthy competition

We complete by offering a proven solution set

Experience and Learning • Completed over 200 wells using dedicated LNG solutions • Currently supplying

- 9 drilling rigs – under 6 drilling operators - 7 industrial sites

• Strong safety culture and LNG project execution know-how • Delivery reliability (>99.9%) with 225% growth in deliveries • Applied: New Solutions, Commercial Innovation, Supply Market insight

Kit that Fits • Best mix of storage and vaporization capability for each application • Maximize capital efficiency • Interchangeability across applications

Network Density • Build out supply network to reduce delivery radius • Customer aggregation/clustering

Prometheus Energy and its key partners have pioneered and commercially proven the use of LNG as a favorable alternative to distillate fuels

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Opportunities for Investors

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Investment Areas O We are looking for….

• Merchant LNG plant projects • Lease Finance

- Customer Assets - Mobile Kit - Transportation

• Cryogenic equipment makers and fabricators

• Engine technology players – APS, GFS & Westport

• New sources to buy liquefaction capacity

• Sites to build new liquefaction facilities

- Clean and compressed gas - Gas Cryo plants - Close to markets - Large Gas users

• Partners to explore creative ways to grow in this marketplace