OKLAHOMA BIOREFINING CORPORATION

OBC in conjunction with SWAN Biomass Company has developed a biorefinery project to be located in Stuttgart, AR utilizing rice hulls and straw as feedstocks producing a variety of biofuels and bio-based products. The technology utilized by the project has successfully completed bench and pilot scale testing with 1000+ hours at pilot scale including two uninterrupted 40+ day runs and has substantial data supporting full commercialization. OBC has developed a minimally sized commercial scale f... acility which would still have economic viability by selecting a 10 MMGPY capacity facility that would require only 3.2% of the theoretical maximum feedstock available. Feedstock requirements combined with feedstock flexibility inherent in the technology provides OBC with a considerable reduction in feedstock acquisition risk. OBC’s economic modeling is done on an open market price basis and has been done at both current and five year low market prices. OBC is profitable at 5 year low market prices with a projected Net Income of $29 million and a Gross Margin of $67 million. These factors dramatically mitigate OBC’s product sales risk.More