p2 solar presentation

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July 2011

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P2 Solar Presentation - July 2011

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Page 1: P2 Solar Presentation

July 2011

Page 2: P2 Solar Presentation

2www.p2solar.com

“Our mission is to develop innovative, eco-

friendly, sustainable solar solutions that have the

potential to reduce global pollution. Currently, we

are focused on developing Solar Power Projects

in regions where land has good exposure to

sunlight and the governments have introduced

attractive Tariff Rates.”

Page 3: P2 Solar Presentation

3www.p2solar.com

Page 4: P2 Solar Presentation

4www.p2solar.com

Stock Summary

Ticker: PTOS.OB

Share Price (July 07 /2011): $ 0.11

Market Capitalization: $5.94MM

Shares Outstanding: 54.0MM

Fiscal Year End: March 31, 2011

Page 5: P2 Solar Presentation

5www.p2solar.com

What We Do?

Our core business strategy:

1. P2 Solar has recognized the rise in sustainable energy development and has set targets to become one of the leaders in developing PV Solar Farms.

2. The company has identified new emerging markets for solar development in India, Europe and Canada. Extensive analysis has been done in order to identify low risk, profitable solar projects in these regions.

3. P2 has a 3 year plan to develop a minimum of 100MW of PV Solar Power capacity by the year 2014.

Page 6: P2 Solar Presentation

6www.p2solar.comPTOS

Investment Highlights

A High Growth Emerging Market for Solar

•Osolar: - a Korea based Solar Integrator•Sinova Capital, - a private equity firm•Photonix Solar PVT. - Solar PV module manufacturer •Solarise Power Inc. - Solar power panel developer

Equity IRR of 20% + driven by:•High insolation levels due to its geographic location•Generous feed in tariffs provided by the governments in our project targeted regions •Economic stability for over 20 years

Investment in Sustainable Energy is expected to reach US$450 billion a year by 2012, rising to more than US$600 billion a by 2020.

Highly Profitable & Stable Economics

Well Defined Growth StrategyStrong Management Team

Leading Partners

•Phase I 2011: Secure 25 MW of PV capacity by end of year

•Phase II 2012: Grow capacity to 50 MW of PV capacity by end of year

•Phase III 2013: Grow capacity to 100 MW of PV capacity by end of year

•Phase I 2011: Secure 25 MW of PV capacity by end of year

•Phase II 2012: Grow capacity to 50 MW of PV capacity by end of year

•Phase III 2013: Grow capacity to 100 MW of PV capacity by end of year

Page 7: P2 Solar Presentation

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Benefits of Solar Energy over Fossil Fuels

Solar Represents Only 0.07% of Total Worldwide Electrical Power Used

Worldwide Electricity Production by Source (Total 2007: 16 Billion KW-h)

Fossil Fuels66%

Hydroelectric17%

Nuclear15%

Other Renewable

2%

BENEFITS

•Environmentally one of the most benign sources of energy

•A renewable source of energy

•Not subject to price volatility risk that is inherent with fossil fuels

•Has a location advantage at the customer site

•Dependency on foreign sources of energy are reduced

BENEFITS

•Environmentally one of the most benign sources of energy

•A renewable source of energy

•Not subject to price volatility risk that is inherent with fossil fuels

•Has a location advantage at the customer site

•Dependency on foreign sources of energy are reduced

Page 8: P2 Solar Presentation

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World Wide Solar PV Market

The photovoltaic market in terms of MW installed has been growing at a 49% CAGR over the last four years, driven by very strong demand from Germany (the largest market) Italy, Czech Republic, South Korea, USA and Japan

In terms of dollars the installed PV market reached $38.5 billion up 4% year over year

Fossil fuels are expected to continue supplying much of the energy used worldwide. Although liquid fuels remain the largest source of energy, their share of world marketed energy consumption is projected to fall from 35% in 2007 to 30% in 2035. The decline is due to projected high world oil prices that lead energy users to switch away from liquid fuels when possible.

Source: SolarbuzzSource: Solarbuzz

PV Supply, Demand & Market Size ($)

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Demand (MW) Supply (MW) Revenues ($ Billion)Source: Sorarbuzz & Isuppli

PV Supply, Demand & Market Size ($)

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Demand (MW) Supply (MW) Revenues ($ Billion)Source: Sorarbuzz & Isuppli

Page 9: P2 Solar Presentation

9www.p2solar.com

Three Solar Technologies Are: Mono-Crystalline Poly-Crystalline Thin Film

  3 Different Mounting System Variations Are: Fixed Mounting System Single Axis Tracking System Dual Axis Tracking System

Technology

The Photovoltaic (PV) Solar panels are the heart of the solar power plant. There are three main types of photovoltaic modules being used in large scale power plants. They are Mono-crystalline, Polycrystalline and Amorphous also known as Thin Film.

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Installation: Horizontal Single Axis Tracking System

• “Horizontal Single Axis Tracking System” tracks the sun as it moves across the sky• One axis and one drive allows moving a module area of up to 300kWp• Economical and easy to install and maintain• Provides an increase in yield of about 20% vs a fixed mounting system

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Corporate Management I

Raj-Mohinder Gurm (President/CEO/Director) Mr. Gurm has over 20 years of experience being involved in the public markets ranging from proprietary trading of the Options and Futures Markets and in the more recent years, the creating and running of various public companies. In 1995 Mr. Gurm was founder and president of Xanatel Communications Inc. a company involved in the wireless communications industry which was sold to a public company listed on the Alberta Stock Exchange. From Jan. 2000 to Nov. 2001 he was also President/CEO Canoil Exploration Corporation, a publicly traded company that did an RTO with a Medical Equipment company.

From 1990 to present, Mr. Gurm has served as President and CEO of P2 Solar, Inc. (formerly Natco International Inc.). P2 Solar, Inc. is a publicly traded company on the OTCBB and is currently now involved in various partnerships and technologies in the Solar Energy sector, primarily focused on setting up power plants in India, Europe and Canada.

Bali Randhawa (Chief Operating Officer) Mr. Randhawa is founder, principal and CEO of TrivCap, a venture incubation, development and management firm operating in Canada, the United States and India. The firm has a focus on green-tech, particularly energy systems, e-tech and energy alternatives in the face of the Peak Oil challenge. From 2000-2004, Mr. Randhawa was an Associate and then Senior Associate for Ziff Brothers Investments, one of the world's largest family investment companies, based in New York. At Ziff he was responsible for assessing investments across the energy, technology and other sectors, with a focus on Europe. From 1997-2000, he was an auditor and then Senior Risk Consultant at Deloitte & Touche in Vancouver and New York. Prior to this, he began his career at Scotia Capital, a major Canadian bank.

Mr. Randhawa graduated with a B.A. in Economics, With Distinction, from the University of Victoria. He undertook post-graduate studies in finance and accounting at Simon Fraser University and has completed both the Chartered Financial Analyst (CFA) and Certified Public Accountant (CPA) programs.

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Corporate Management II

Hans Edblad (VP Business Development/Director) In addition to serving as a director of the Company, Mr. Edblad also works as the Vice President of Business Development for the Company. From 2006 to 2009 Mr. Edblad served as a consultant to the Company. In addition to his work with the Company, Mr. Edblad is also the President of Chag Investments Ltd., a position he has held since 1997. Chag Investments specializes in assisting businesses with business development and investment strategies. Additionally, from 2002 to present Mr. Edblad has served as a consultant with APR Consulting Group specializing in technical market consulting to various individuals and companies. Sham S Dhari (VP Engineering)Mr. Dhari –P.Eng., has over 20 years electrical engineering experience in the technology sector. In 1984, he obtained his degree in electrical engineering from the University of BC, Canada. He progressed into large complex engineering projects while working as project engineer for NLK Consulting Engineers, who specialized in the pulp and paper industry. After NLK Mr. Dhari moved on to the role of a Field Applications Engineer for Electro Sonic in Canada. He also worked for Ishoni Networks, a startup high-tech company out of Santa Clara California, where he was the Senior Applications Engineer. Since 2010 he has served as VP of Electrical Engineering for P2 Solar, Inc. Nav Dhaliwal (Vice President – Ontario Region) Mr. Dhaliwal began his business career as a chartered account with KPMG, where he specialized in restructuring debt and completing business viability assessments for financial institutions, venture capital and private equity clients. He later became a senior associate at Trivandrum Capital where he focused on investment in clean technology start-ups. Since early 2011, he was named VP Business Development for P2 Solar, Inc. - Ontario Region . Dr. Stephen K. Sleigh (Director)

Dr. Stephen K. Sleigh currently serving as a director of the Company, has a BSc., MSc., and a PhD in Chemistry from the University of Manchester, UK. Since 2001, Dr. Sleigh is a Certified General Accountant. In addition to serving as a director of the Company,

Page 13: P2 Solar Presentation

13www.p2solar.com

Corporate Advisors

Brian Kryska (Chief Technical Advisor)Mr. Kryska brings 34 years of seasoned leadership experience in engineering and product development. He currently serves as the Chair for Engineered Energy (E2), and operates E2 internationally in the energy sector. Mr. Kryska has arranged mergers, acquisitions and financing deals in excess of $200 million. He has held various executive, leadership and board roles including general management, research management and product development. Mr. Kryska has also provided business re-engineering, product commercialization and TQM services and has demonstrated efficacy in cost management and maximizing ROI and sales. Previously as the Founder and the Chairman of the Board of Aerotek Engineering (1981), Mr. Kryska has authored patents and has brought proprietary products to market. He is currently the owner of a real estate holding company, which holds bare land and a shopping mall. He holds a senior executive role and significant stake in an international steel distribution company doing over $70 million per year in sales.Mr. Kryska has a BS Electrical Engineering from the University of Alberta and has completed Graduate level courses in Engineering and Business Administration at University of Alberta and Carlton University in Ottawa.Mr Kryska has served on the boards of Governors at University College at the University of Alberta and on the board of Alberta Canada Fusion Energy Institute.

Herb Dhaliwal (Senior Advisor)Mr Dhaliwal holds a Bachellors in Commerce from the University of British Columbia. He has more than 25 years of experience in the private and public sectors as a businessman and entrepreneur, specializing in transportation, maintenance and real estate development. He has also served as vice-chair of the board of directors for the British Columbia Hydro and Power Authority and as chair of British Columbia Hydro's Budget and Audit Committees. He was first elected to the Canadian House of Commons in the 1993 election as the Liberal Member of Parliament (MP) for Vancouver South. Prime Minister Jean Chrétien appointed Mr. Dhaliwal to Cabinet in 1997 as Minister of Revenue. In 1999, he became Minister of Fisheries and Oceans, and in 2002 he was appointed Minister of Natural Resources and Minister with political responsibility for British Columbia. Mr. Dhaliwal played an active and prominent role as a member of the Prime Minister's Team Canada trade mission to India. Mr. Dhaliwal has also taken an active and prominent role in promoting sustainable, environmentally responsible aquaculture development in Canada.

Page 14: P2 Solar Presentation

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Economics of Phase I 25MW PV Solar Plant

•Yields an Equity IRR of 20%

Phase I 25MW of installed PV grid connect capacity

Monocrystalline panels: 16% efficiency

Tracking Single Axis Tracking

Total investment in fixed assets: $74 million (to depreciate over 18 years)

∙25% to be financed by equity capital

∙75% to be financed through debt with a 18 year term at an interest rate of 8%

Annual electricity sold to grid: 40.5 GW-hrs per year

Net projected revenues for 25MW capacity $14.5 million USD

EBITDA $13.4 million USD

Operating cash flow less debt service: $6.9 million USD

Equity payback period 4 years

Inputs Used to Determine Economics of 25MW PV Installation Inputs Used to Determine Economics of 25MW PV Installation

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Valuation of Peers

Prices as of 4/20/2010Prices as of 4/20/2010

Company Name Price(Close) P/E Ratio NTM EV/Sales TTM

CANADIAN SOLAR INC. $18.26 9.17 1.67

JA SOLAR HOLDINGS CO LTD (ADR) 5.96 11.18 1.78

SOLARFUN POWER HOLDINGS CO LTD (ADR) 8.29 10.61 1.07

SUNTECH POWER HLDGS CO LTD (ADR) 13.92 14.65 1.47

TRINA SOLAR LTD (ADR) 24.32 10.67 1.83

YINGLI GREEN ENERGY HOLDING CO LTD (ADR) 12.55 12.11 2.01

Peer Group Median 10.93 1.73

Peer Group Average 11.40 1.64

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Contact Information

P2 Solar Inc.

Company Contact:

Raj Gurm, President | CEOHans Edblad, VP Business Development

Phone: +1-888-945-4440Email: [email protected], [email protected]

Legal Council

Gary Joiner, Esq.Jon Sargent, Esq.Frascona, Joiner, Goodman and Greenstein, P.C.4750 Table Mesa DriveBoulder, CO 80305

Phone (303) 494-3000Email: [email protected] [email protected]

Investor Relations Firm:

Capital Group Communications, Inc.Mark Bernhard | President | Account ManagerPhone: (415) 332-7200 x 222Email: [email protected]

Devin J. Bosch | Founder | CEOOfficer (415) 332-7200 (San Diego)Email: [email protected]

Auditor/CPA

Lake & Associates CPA’s LLC1905 Wright BoulevardSchaumburg, IL 60193

Telephone: (847) 524-0800

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Statements made in this presentation are forward-looking and are made

pursuant to the safe harbor provisions of the Securities Litigation Reform

Act of 1995. Risk factors that could cause actual results to differ materially

from those projected in forward-looking statements include, but are not

limited to, general business conditions, managing growth, and political and

other business risks. All forward-looking statements are expressly

qualified in their entirety by this Cautionary Statement and the risks and

other factors detailed in the P2 Solar, Inc.’s reports filed with the Securities

and Exchange Commission. P2 Solar, Inc. undertakes no duty to update

these forward-looking statements.

Page 18: P2 Solar Presentation

July 2011