AllianceAlliance GrainGrain Co.Co.

ANNUAL REPORT2011-2012

Agenda

Twenty-First Annual Mee ng

Alliance Grain Co.North Park Pavilion - Gibson City, Illinois

Tuesday, July 31, 2012 - Mee ng at 5:00 PM

Call to Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CURT MEINER

Invoca on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .CORRINE BLISSARD

Mee ng No ce & Cer fi ca on of Quorum . . . . . . . . . . . . .DENNIS HELMERS

Introduc on of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CURT MEINER

Financial Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TODD STEINBERG

Manager’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . JOE THOMPSON

Elec on Results, Chair of Nomina ons . . . . . . . . . . . . . . . . BRIAN DAMERON

Other Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CURT MEINER

Door Prizes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CURT MEINER

Adjournment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CURT MEINER

Dinner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BERNARDI’S II

Alliance Grain Co.Corporate Headquarters

1306 West 8th StreetGibson City, Illinois 60936

PH: 800-222-2451 FX: 217-784-8949www.Alliance-Grain.com

MISSION STATEMENT

Alliance Grain Co. is a farmer-owned coopera ve providing grain marke ng and handling services focused on enhancing the profi tability of its

farmer-owners while preserving the fi nancial integrity of the coopera ve.

Board of Directors

Dennis HelmersSecretary, District 9

Curt MeinerPresident, District 8

Bob ProvinDirector, District 1

Rick YoungDirector, District 2

David ButlerDirector, District 3

Doug BruckerTreasurer, District 4

Wayne MorrisonVice-President, District 10

Phillip MoritzDirector, District 6

John HarrisDirector, District 7

Mark KerberDirector, District 10

2011 -

2012

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Rodney LandauDirector, District 5

About Us

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Established in 1991, Alliance Grain Co. is a farmer-owned elevator system that includes thirteen elevators throughout East Central Illinois. Alliance Grain has opera ons in Anchor, Bellfl ower, Cabery, Campus, Charlo e, Colfax, Cropsey, Cullom, Gibson City (West and Middle), Melvin, Saybrook and Sibley. Eight of these elevators are rail load-out accessible via the Bloomer Line railroad. Approximately 22 million bushels of grain can be stored at the thirteen loca ons.

On a daily basis, the services of Alliance Grain include grain storage, marke ng assistance and off -farm hauling, to name a few, all at compe ve prices. Being farmer-owned has helped us visualize all aspects of agricultural produc on. Shareholders (producers) elect board members from 10 districts. These 11 board members, with one at large, discuss the opera ons of the elevator and represent their district. This management system has kept Alliance Grain Coopera ve thriving these last 20 years.

September 1991 - Alliance Grain Coopera ve is formed with a consolida on vote from the shareholders of Anchor Grain Co. and The Farmer’s Grain of Gibson City.

April 1992 - Foosland Grain is acquired by contract with facili es at Foosland & Bellfl ower.

August 1994 - Farmer’s Grain of Charlo e and shareholders voted to merge with Alliance Grain Co.

September 1997 - The Cullom elevator is acquired from Tri-Central Coop.

July 2002 - The shareholders of Sibley Grain Co. voted to merge with Alliance Grain Co.

September 2002 - Alliance Grain Co. purchased the Hamilton Elevator, with facili es in Campus, Cabery and Sunbury. Sunbury was later sold.

June 2006 - Alliance Grain Co. purchased Ford Grain of Melvin to be the 13th Alliance loca on.

With 13 loca ons, Alliance Grain’s total capacity stands at over 22 million bushels. We are ready to serve you!

ALLIANCE GRAIN CO.BALANCE SHEET

as of May 31, 2012

ASSETS

CURRENT ASSETS Cash and Short Term Investments 462,097 Receivables 2,310,119 Inventories 63,359,254 Prepaid Expenses 184,734 Total Current Assets $ 66,316,204

NON-CURRENT ASSETS Investments in other Corpora ons 4,206,792 Notes Receivable 2,000,000 Property, Plant & Equipment 22,853,293 Total Non-Current Assets $ 29,060,085

TOTAL ASSETS $ 95,376,289

LIABILITIES AND STOCKHOLDERS EQUITY

CURRENT LIABILITIES Grain Payables 18,675,930 Other Payables 5,366,088 Notes Payable 26,971,011 Total Current Liabili es $ 51,013,029

LONG-TERM LIABILITIES Long Term Note Payable 10,850,400 Other Deferred Payables 3,540,901 Total Long-term Liabili es $ 14,391,301 TOTAL LIABILITIES $ 65,404,330

STOCKHOLDERS EQUITY Capital Stock & Credits $ 7,162,439 Retained Income $ 22,809,520 Total Stockholders Equity $ 29,971,959 TOTAL LIABILITIES & STOCKHOLDERS EQUITY $ 95,376,289

Balance Sheet

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Statement of Income (Loss)ALLIANCE GRAIN CO.

STATEMENT OF INCOME (LOSS)12 months ended May 31, 2012

Volume (Bushels Sold) 57,196,779

Sales 421,047,411 Gross Trading Income $ 7,597,872

Service Income Grain Drying 3,075,513 Grain Storage & PL Charges 2,211,833 Rental Income 53,450 Other Income 163,601 Total Service Income $ 5,504,397 TOTAL GROSS INCOME $ 13,102,269

Opera ng Expenses People & Related Expenses 3,832,331 Facility Expenses 5,696,510 Administra ve Expenses 936,250 Interest - Seasonal 789,468 Total Opera ng Expenses $ 11,254,559 NET OPERATING INCOME $ 1,847,710

Other Income Income From Other Investments 114,000 Patronage Dividend Income 429,312 Income (Loss) from Subsidiaries 110,177 Total Other Income $ 653,489 NET INCOME (LOSS) BEFORE TAXES $ 2,501,199

Federal and State Tax (804,350)

NET INCOME (LOSS) AFTER TAXES $ 1,696,849

BU

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Changes in Financial PositionALLIANCE GRAIN CO.

STATEMENT OF CHANGES IN FINANCIAL POSITION12 months ended May 31, 2012

SOURCES OF WORKING CAPITAL Net Income for the Year 1,696,849 Add (Deduct) Items Not Aff ec ng Working Capital: Deprecia on & Amor za on 2,435,635 Noncash Patronage Refund Received (148,002) Income Taxes Deferred 747,770 Joint Venture (Income) Loss (110,177) Working Capital Provided from Opera ons $ 4,622,075 Decrease in Long-Term Notes Receivable 500,000 Stock Redemp ons 8,360 Term Debt Infusion 6,000,000

TOTAL SOURCES $ 11,130,435

USES OF WORKING CAPITAL Purchase of Property, Plant & Equipment 7,629,227 Re rement of Capital Stock 227,256 Re rement of Long-Term Debt 1,205,600 Other 4,881

TOTAL USES $ 9,066,964 INCREASE (DECREASE) IN WORKING CAPITAL $ 2,063,471

WORKING CAPITAL - Beginning of Year $ 13,239,698

WORKING CAPITAL - END OF YEAR $ 15,303,169

This report is a condensa on of our auditors long form report which is available for your inspec on at our corporate offi ce in Gibson City, or from any of our Directors. If you have any ques ons about this statement or our fi nancial condi on, any director or the manager would be happy to discuss them with you.

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LOCATIONS

Anchor

Anchor Branch2W East Street

PO Box 128Anchor, IL 61720-0128

PH: 309-723-2091FX: 309-723-2011

TOP: Construc on of new bins and dryerABOVE: Joe Hayes,

Maintenance RIGHT: Jessica McCabe, Offi ce Manager; Teresa

Steidinger, Grain Accoun ng

Coordinator; Jonathan York, Opera ons

Support; Garry Cole, Loca on Supervisor

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Bellfl ower

Bellfl ower Branch305 East Melvin StreetPO Box 167Bellfl ower, IL 61724PH: 309-722-3216FX: 309-722-3335

LEFT: Gary Meier, Loca on Supervisor;Chare Robinson, Offi ce Manager

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Cabery

Cabery Branch305 East Main

PO Box 171Cabery, IL 60919

PH: 815-949-1672FX: 815-949-1661

RIGHT: Michael Riedel,

Loca on Supervisor

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Campus

Campus Branch27896 North 3300 East Rd.PO Box 118Campus, IL 60920PH: 815-567-3311FX: 815-567-3430

LEFT: Todd Ashman, Opera ons Support; Chris ne Graveson, Offi ce Manager; Shaun Edwards, Loca on Supervisor

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Charlotte

Charlo e Branch33573 East 1300 North Rd.

Chatsworth, IL 60921PH: 815-689-2673FX: 815-689-2525

ABOVE: Jamie Stein, Assistant Opera ons Manager. RIGHT: Shane

Puls, Opera ons Support; Gloria Hitchens, Offi ce Manager; Jordan

Kintner, Opera ons Support

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Colfax

Colfax Branch200 South Brook StreetPO Box 236Colfax, IL 61728PH: 309-723-2611 FX: 309-723-6090

LEFT: Dennis Farney, Loca on Supervisor;Jeff Grider, Grain Originator and AgriVisor Program; Marci Beitz, Offi ce Manager

BOTTOM: Brandon Bose, Opera ons Support

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Cropsey

Cropsey Branch103 South Main

PO Box 57Cropsey, IL 61731-0057

PH: 309-377-2141FX: 309-377-2018

ABOVE: Ma Dunn, Central Area Support

RIGHT: Bill Farmer, Loca on Supervisor;

Aimee Nugent, Offi ce Manager

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Cullom

Cullom Branch121 North Maple StreetPO Box 296Cullom, IL 60929PH: 815-689-2130FX: 815-689-2717

ABOVE: Brad Wallrich, Loca on Supervisor; Susan Deany, Offi ce Manager; Mike Eimer, Opera ons Support

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TOP OF PAGE: Cullom South. ABOVE: Cullom North

Gibson City - Middle & West

Gibson City - Middle220 West 8th Street

Gibson City, IL 60936PH: 217-784-5402FX: 217-784-5965

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RIGHT: Clint Pearson, Opera ons Support;

Dennis Angus, Middle Loca on Supervisor;

Myron Shelton, Opera ons Support

BOTTOM: Ed Kirkpatrick,

Loca on Support; Bre Dunn, West

Loca on Supervisor

Gibson City - Middle & West

Corporate Offi ce, Gibson City - West1306 West 8th StreetGibson City, IL 60936PH: 800-222-2451 / 217-784-4284FX: 217-784-8949

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GIBSON CITY WEST STAFF: Joe Thompson, General Manager; Gary Allen, Opera ons Manager; J.B. Daughenbaugh, Grain Merchandiser; Todd Stein-berg, Controller. BACK ROW: Joy Boyce, Administra ve Assistant; Bonnie Voyles, Administra ve Assistant; Sue Ann Harsha, Administra ve Assistant; Angela Beach, Administra ve Assistant

LEFT: Adam Moritz, Grain Originator based at One Earth Energy

Melvin

Melvin Branch101 East Main Street

Melvin, IL 60952PH: 217-388-2261FX: 217-388-2855

ABOVE: Roger Ford, Opera ons Support; Kevin Redeker, Loca on Supervisor

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Saybrook

Saybrook Branch509 South Washington StreetSaybrook, IL 61770PH: 309-475-3361FX: 217-388-2855

ABOVE: Tom Williamson, Loca on Supervisor

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Sibley

Sibley Branch312 West Ohio Street

RR 1 Box 101KSibley, IL 61773

PH: 217-745-2336FX: 217-745-2505

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RIGHT: Dan Farmer, Loca on Supervisor and

Bonnie Wurmnest, Offi ce Manager

Transportation

ABOVE: Aaron Ricke s, Richard Hammond, Roger Ford, Kevin Redeker. NOT PICTURED: Randy York

Aaron Ricke s Richard Hammond

Roger Ford Kevin Redeker

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Electrical & Maintenance

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ABOVE: Tracy Grider, Electrician

RIGHT: Kevin Bazzell and Chris Bach,

Maintenance

The Bloomer Line

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The Bloomer Line, shown loading at our Charlo e, Gibson City and Cullom loca ons, hauled over 7,000 carloads of grain this past year.

Notes Location Map