Biodiesel… by a green conscience…. Continuing with our commitment….

April 2007

Actual Business

Agroindustria Madero S.A. it is an argentinean company located in the Province of Buenos Aires, dedicated to the processing/crushing of soya/sunflower seed, to obtain crude and refined oil and food for animal feed and human consumption.

The firm is a young Company (2003) that has had a great development from his beginnings, obtaining an excellent level of integration and commitment with the quality of its products.

The directors, engineers and specialized personnel for over 30 years have been developed into the oilseeds industry and meals, being among the best ones of the country in those industries, having a high recongnition and respect in the market.

Agroindustria Madero S.A. has a current personnel of 195 workers.

Accionistas y Management (cont.)

Management

CEO: Jorge VezzuciDirección Técnica:

Ing. Pablo PaganiIng. Héctor Mathiasen

Dirección Administrativa y ComercialAbog. Magdalena Ruete AguirreRicardo Olaviaga

Accionistas DNI/LE/CUIT % tenencia

Fernando Alberto Hernández 10.084.955 50,0%Martin S.R.L. 30-69437391-3 20,0%Arturo Aguirre 8.249.119 14,0%Jorge Vezzuci 5.563.417 12,0%Ricardo Rodríquez 4.438.088 4,0%

100,0%

The pillars of our Company

Add value to agricultural by-products Biotechnology Own development of industrial engineering Quality Enviroment Commitment Social Responsibility

The Firm main local clients are:

Meal (pellets): Granja Tres Arroyos, Cargill, Royal Canin, Sedeamérica, Balanceados Brandsen, Molineros Suarez Ccía., Granel Sur, Ovoprot, Nuestra Huella S.A., Criave S.A., Cabaña Avícola Jorjý S.A., Frigorífico de Ave Soychú S.A., Cremer Gruppe etc.

Crude Oil: Nidera SA, Dánica SA, Flora Dánica SA, Germaiz S.A., Molinos Río de La Plata S.A., etc.

Refined Oil: Oligra S.A., Los Juanes S.A., Orrganización Norte S.R.L., Forest 444, Aceite Lapedriel S.R.L., Yovinnesa, Germaíz S.A., Cremer Gruppe, etc

Legislation and Goverment Authorities Ministry of Health, Secretariat of Environmental Policy.

Deparment of Energy´s

Ministry of the Production

Department of Agriculture, Cattle, Fishing and Nutrition feeding

INTI (National Institute of Insdustrial Technology)

SENASA

Código Alimentario del Mercosur/ Mercosur Nutritional Legislation

Registro Nacional de Establecimiento (RNE) /National Registry of Establishment

Registro Nacional de Producto Alimenticio (RNPA) /National Nutritional Product Registry

Our Brands in th elocal market

Agroindustria Madero S.A. has two brands into the local market: EL CORTIJO y SINGULAR.

The packaging of our oils is also made under the registered tradename of our clients in its different packages (1lt, 2lt, 5lt, 10lt, 15lt, 20lt.)

International Trade

Our direct exports has destinies like Chile, Uruguay, South Africa, Australia and Germany.

The Plant

Equipment (cont.)

Surface 37.500 m2

Storage capacity for Seeds and Pellets

80.000 Tn

Storage capacity for Oil 15.000 Tn

Harina Flash Elaboration 100Tn/día

Texture Vegetable Protein (TVP) 200 Tn/día

Soya/Sunflower seed elaboration capacity

1.000 Tn/día

Refined Sunflower/ Soya Oil capacity

135 Tn/día

EquiptmentEquiptment

Equipment (cont.)

Layout

1) RECEPTION 2) FACTORY 3) CHAMBER: Edesur. 4) CHAMBER: Gas Natural. 5) ADMINISTRATION 6) BIANCHETTI SCALE 7) REFINED OIL TANKS 8) FRACTIONAMIENTO ç) & 10) REFINERY 11) HYDROGENATING PLANT 12/14/51/52) SALCOR CAREN 1 BOILER13) LIQUID EFLUENTS TREATMENT PLANT15/16) SALCOR CAREN 2 BOILER17) LABORATORY, PRODUCTION AND MAINTENANCE OFFICES18/19) RAW MATERIAL STORAGE CELL: 13.800 TNS.20/22/23/24) AIR SILOS21) RAILROAD SCALE25) DRESSING ROOM AND PERSONAL DINING ROOM26) CRUDE OIL STORAGE TANKS27) TRANSFORMING CHAMBER 28) SHELLED BHULER (400 TNS/DAY)29) STORANI AND ALLOCO PRESS (400)30) LAMINATION

31) SMITH CONDITIONING32) PRESSES (300 TNS/DAY)33) PARABOLIC ROOF34) RAW MATERIAL PRODUCTION SILO35) BOXCARS DISCHARGE CHUTE36) PELLETS SILO37) SMET SOLVENT EXTRACTION (800 TNS/DAY)38/39/40) OLD EXTRACTION (NON EXEMPLARY)41/42) FLOUR SILOS & PELLETS MACHINES(960 TNS/DAY)42) PELLETS SILOS43) CELL Nº 3 PELLETS/SEEDS STORAGE 44) ANIMAL FEED AREA45) CELL PELLETS/SEEDS50) PRESS (200TNS/DAY)53/54) SCALE LA TORRE TRUCKS55) SHELLED BHULER 200 TNS/DAY56) EXTRUDERS SECTION57) AUTOMATIC CHARGING CENTER58) CELL Nº 5 PELLETS/SEEDS STORAGE59) ELETRMECHANICAL WORKSHOP60) SOLVENT TANKS

NEW COMPANY

Biodiesel - BioMadero S.A.

BioMadero S.A. is the natural producer and exporter for the vegetable soya oil Biodiesel, according to its actual business plan developed: it keeps the same supliers, integrate and additional producive stage and diversifies its output with a highly profitable product, having also by-products with excellent markets

Our vegetable oil, raw material of Biodiesel, gives it an add value, continuing with our policy in the production chain

BioMadero S.A. has developed it own technology for the construction and production of Biodiesel.

Biodiesel Plant

Equipment

INDEX

BioMadero S.A.

Biodiesel

–Biodiesel characters

– Raw material and competitive advantages of Argentina

–Overview of local and internacional market

– Especifications of the European market

Biodiesel characterization

Biodiesel

Fuel elaborated from vegetal or greasy oils animals, apt like partial or total sustituyente of the diesel oil in diesel engines, without are necessary conversions, adjustments or special regulations of the motor.

Technically, it consists of monoalchemic fatty acid esters of long chain derived from natural lipids.

The conversion rule is of 1,03 tn of crude vegetal oil by each tn of biodiesel, being left glicerol and fatty acids like by-products.

The Agency of Environmental Protection (EPA/USA) it has registered it for use like pure fuel (100% of biodiesel, or B100), as mix-it bases (with 20% of biodiesel and the rest of diesel oil, B20), or like fuel additive derived from petroleum in proportions from the 1 to 5%.

Advantages of the Biodiesel versus Diesel oil

Minimum differences in torque, power and consumption of the motors

Greater point of ignition (it reduces danger of explosions by gas emanation during the storage)

Greater lubricity (it favors the operation of the circuit of feeding and the bulk injection pump)

Greater modifications in the conventional diesel engines for their use are not required, obtaining themselves similar yields

Its substitute use does not demand modifications of the distribution infrastructure and the liquid fuel sale already installed

Safer transport and storage thanks to the high flash point of biodiesel

High biodegradation, comparable to the dextrorse´s

not containing sulfur (it allows to use catalysts for improvement on the combustion and decrease exhaust gases)

It liberate the agricultural countries from the fossil supplying with fuel, from those countries that are producing petroleum (in macroeconomics terms)

Minimum differences in torque, power and consumption of the motors

Greater point of ignition (it reduces danger of explosions by gas emanation during the storage)

Greater lubricity (it favors the operation of the circuit of feeding and the bulk injection pump)

Greater modifications in the conventional diesel engines for their use are not required, obtaining themselves similar yields

Its substitute use does not demand modifications of the distribution infrastructure and the liquid fuel sale already installed

Safer transport and storage thanks to the high flash point of biodiesel

High biodegradation, comparable to the dextrorse´s

not containing sulfur (it allows to use catalysts for improvement on the combustion and decrease exhaust gases)

It liberate the agricultural countries from the fossil supplying with fuel, from those countries that are producing petroleum (in macroeconomics terms)

Biodiesel characterization (cont.)

Environmental impact:

The pure Biodiesel (B 100) comparing with the diesel oil N° 2, reduces the emissions of all the polluting agents, including particle matters, except the Nox

In the general balance sheet, the potential smog is reduced

The poly-aromatics hydrocarbon levels, are reduced (cancerigenic) in a 75%

The benzo (a) antraceno is reduced in a 50%.

Environmental impact:

The pure Biodiesel (B 100) comparing with the diesel oil N° 2, reduces the emissions of all the polluting agents, including particle matters, except the Nox

In the general balance sheet, the potential smog is reduced

The poly-aromatics hydrocarbon levels, are reduced (cancerigenic) in a 75%

The benzo (a) antraceno is reduced in a 50%.

Advantages of the Biodiesel versus Diesel oil (cont.)

Caracterización del Biodiesel (cont.)

Caracterización del Biodiesel (cont.)

For the first time the Des-balance in the petroleum market comes from the side of the demand. We are near to the peak of petroleum

The tendency in the main markets consolidates to protect the atmosphere, from the use of the Treaty of Kyoto

The development of alternative sources of energy is a strategic isue.

New Energetic Paradigm

Why Argentina could become the

green Middle East...

Because is the first World-wide sunflower/soya oil exporter

Exporting 2 million tons of biodiesel in 2010, is possible to generate USD 300 million added value

The profit is considered to be between 12 and 20% Custom Tax: Oils= 24% Biodiesel = 5%

Flow Chart

Caracterización del Biodiesel (cont.)

Raw Material

The only industrial sector that can to provide raw material with the minimum technical requirements (stability, carbonaceous remainder of Conrad, etc.) in the volumes demanded for use extended and continuous by a massive market like the fuels, is the oily industry

The term "oily sources" includes the annual harvests (seeds, as for example the sunflower) as the perennial plants whose seeds, fruits, nuts are valorized fundamentally by the oils that are extracted of them, They also could be sources of other raw materials (as the fibers of the cotton whose seeds could be crushed for vegetal oil

Raw Material and competitive advantages of the country

Uses on world-wide range

Only between 5 and 6% of oil production is used as seed and feed Around 8% is used for human feeding in direct form The remaining percentage is used for the oil manufacture

200

250300

350

400

450500

550

600650

700

Oil price evolution. US$ per tn.

Soya Oil

Sunflower oil

Raw Material and competitive advantages of the country(cont.)

Source: SAGyP

Most Common Characteristics

Nowaday, at world-wide level ,it is the most important oil source, although it´s also widely consumed like grain and as by-product (soya milk, for ex.) due to its high protein content

Soya

Palm

Sunflower

Rape seed

Produces clusters of fruits whose fleshy mesocarpio surrounds an almond with a rind extremely lasts. The palm oil is extracted from the pulp (the yield of a cluster oscillates between the 17 and 27%) whereas the almonds are also oily, with an oil content between the 4 and 10%.

Their seeds are valorized fundamentally by their oil content, although a small percentage of the total production is destined to the direct consumption like human and component food in the rations for feeding of birds.

The commercial value resides basically in its oil content, (also call canola oil).

Cotton Cultivated from its fiber as from its seeds, that contain between 55 and a 65% of oil.

Raw Material and competitive advantages of the country(cont.)

Uses on world-wide range

Comparative advantage of Argentina in the production of oily cultivation

Existence of great apt surfaces to be potentially exploded

Argentina is one of the world-wide leaders in vegetal oil export.

Commitment of the National Government to support Biodiesel project.

Raw Material and competitive advantages of the country(cont.)

Competitive advantages of Argentina (cont.)

Raw Material and competitive advantages of the country(cont.)

In the last decade, the agricultural industry, participated in the argentinean Internal Gross Product, 12% yearly

This one is formed in a 43% by primary products and fishes as well, whereas the rest is manufactures of farming origin.

Its average contribution oscillated around 33,000 million dollars, according to a total of 265,000 yearly million dollars by all concept.

The exports of the Sector in the last triennium totalized 51% of the Argentine total commerce.

With 12,700 million dollars, of which 5,300 million constituted the primary products and 7,400 million the manufactures of farming origin, the total exported, has grow in the last fifteen years, in a rate superior to 4,7% per year.

The agricultural area in the Argentinean economy The agricultural area in the global economy

32.6

27.327.7

24.7

21.822.423.421.1

16.416.1

Oily Milling in Argentina, in mill. Tons.

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

• 1º soyoil world-wide exporter

• 3º world-wide soybeanproducer soybean

• In the last 10 years, the oily milling was duplicated

• In last six decades, the cultivated surface of grains and oily seeds, has expanded in 10 million hectares.

Raw Material and competitive advantages of the country(cont.)

Source: CIARA, Cámara de la Industria Aceitera

Biodiesel Market in Argentina

Total Fuels

Nafta, GNC,etc

Gasoil2004

Gasoil2010

Biodiesel5%

Mercado de combustible actual y estimado, en miles de mill. de litros

23.7

11.4

12.3

14.0

0.7

Overview local and internacional market (cont.)

Source: SAGyP

YPF: Plant of 100 mil Tn

Vicentín: Plant of 240 mil Tn

Oil Fox/ Neckermann: Plant of 240 mil Tn

AGD: Plant of 100-200 mil Tn

Overview local and internacional market (cont.)

Biodiesel Market in Argentina

Announcement of investment

Us

Others

• Plant of 180 mil Tn

• Plant of 540 mil Tn (built in dic-2006)

Start Up in 2008

Start Up June 2007

Start Up en Junio 2008

Source: Newspaper Articules

World Production of Biodiesel

2004/5 2005/6

Germany 1.7 2.0

France 0.4 0.5

Italy 0.4 0.2

UK 0.0 0.2

USA 0.4 0.8

Others 0.1 0.1

Total 3.0 3.8

En billones de litros

Overview local and internacional market(cont.)

Source: European Biodiesel Board

Overview of european market

Actual and estimated demand

• The biodiesel market share in 2005 was 1,5%

• The Instructive Directiva 2003/30 it establishes that for the year 2010, bio-fuels must reach a market share of 5,75%, requiring between 12 to 18 millons Tn of biodiesel

Production

• During the period of 2002-2005, the biodiesel production has increased 35% yearly

• In 2005, 20 european countries produced biodiesel in industrial scale, vs. 11 in 2004

Capacity • In 2006, the estimated installed capacity was aprox. 6 millones de Tn, vs 4,2 in 2005

Germany produces more than half of european biodiesel, in more than 10 plants. It´s also the main consumer: in 2005, the Biodiesel was sold in more than 1.900 gas stations, and it reached a market

share of 2%.

Overview local and internacional market (cont.)

Sources: European Biodiesel Board

Overview local and internacional market (cont.)

European market – Legislation about biodiesel

Composition of 100 Tns of Biodiesel

Equipment (cont.)

103 Tns of Refined Soy Oil

10 Tns of Methanol

0,05 Tns of Potassium Hydroxide

+

+

Raw Material

100 Tns of Biodiesel+

10 Tns of Glicerol

Specifications EN14214.

METHODminimo maximo

ESTER CONTENT % (m/m) 96.5 EN14103DENSITY To 15ºc kg/m3 860 900 EN ISO 3675VISCOSITY To 40ºC mm2/s

3.5 5.0 EN ISO 3104FLASH POINT Cº 120 - EN ISO 3679SULPHUR mg/kg - 10.0 prEN ISO20846CARBONACEOUS RESIDUE % (m/m) - 0.3 EN ISO 10370

SULPHATED ASHES % (m/m) - 0.02 ISO 3987CELANO NUMBER 51.0 EN ISO 10370WATER AND SEDIMENT % (m/m) - 500 EN ISO 12937

TOTAL CONTAMINATION mg/kg - 24 EN 12662

CORROSION Cu (3HR./50ºC) CLASS I EN ISO 2160

STABILITY To The OXIDATION 110ºC Hr 6.0 EN 14112

ACIDITY mg KOH/g 0.5 EN 14104

METHYLIC IODINE ar iodine/100gr 128/132 EN 14111

METHYLIC ESTER OF ACID LINOLEIC %(m/m) 12.0 EN 14103

METHYLIC ESTER POLYINSATURATED %(m/m) 1

METHANOL %(m/m) 0,2 EN 14110

MONOGLYCERIC %(m/m) 0,8 EN 14105

DIGLYCERIDE %(m/m) 0,2 EN 14105

TRIDLYCENDE %(m/m) 0,2 EN 14105

FREE GLYCEROL %(m/m) 0,02 EN 14105TOTAL GLYCEROL %(m/m) 0.25 EN 14105METALS GROUP I mg/kg 5 EN 14108METALS GROUP II mg/kg 5 PprEN 14538

PHOSPHORUS mg/kg 10 EN 14107

LIMITS

Quality Specifications 1708/06Characteristics of Biodiesel

PROPERTY

Result

According to regulation