Algae Industry Expert Services

Ken ReynoldsVice President of Commercialization

NAA Houston, September 23-24, 2010

Safe Harbor StatementMatters discussed in this presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

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OriginOil Recap

Completed main body of inventions – from CO2 infusion through growth and extraction to hydrogen production.Now in market with two key products, working with MBD Energy, world leader in bio-remediation using algae.Collaborating with Desmet Ballestra, global leader in oil seed extraction, on algae extraction systems in Europe.Extraction demo system (MAX ONE) now touring algae systems in USA.Recently added world class CTO, Brian Goodall PhD.Major analytical asset (Energy and Finance Model) developed closely with StrategicFit.Operational experience added in algae and wastewater systems through team development.

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MBD Energy Bio-Capture

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Algae Industry Recap

Various approaches to making algae into cost-effective solutionDisplacement of fossil fuels is ‘holy grail’ of the industryThis requires very low costs (CAPEX, OPEX) & high efficiency of outputDifficult to compete with at today’s pricesOther approaches to shorter-term viability:

Higher value outputs Highly engineered closed platforms, specific feedstocksGMOsSome combination of above

Most of these not flexible, not broadly applicable to diverse range of solutions

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Algae Production Model

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Light/Energy

Water

Nutrients

Carbon Dioxide

Oil

Biomass

Growthsystems

HarvestingExtractionProcessing

Technology&

Process Knowledge

• Fuels• Heating Oil• Specialty Chemicals• Nutraceuticals• Etc.

• Biogas• Fuels• Animal Feed• Fertilizer• Etc.

UPSTREAM DOWNSTREAM

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Economic viability

∆ in location orapplication

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Likely ∆ in technologyand process knowledge

Will depend on:Utilization of waste feedstocksBlended revenue streams, value-added outputsValue of remediation, recycling, carbon credits, etc.Best technologies, process knowhow, automation, Complementary technologies, existing (cogen, digestion, etc) and to be developed

Algae production facilities will largely be distributed by necessityEconomy of scale still critical factorAllowance for local sun, water, other environmental issuesSite-specific design – there is no one-size fits all solution!!!

Gap analysis

Potential algae applications aboundInterest in use high due to potential productivityEarly-stage technologies, processes still evolvingLeads to Catch-22

Decision to scale hinges on feasibility, planning, & tech performanceFeasibility/planning depends on engineering/design Engineering/design companies not widely familiar with algae appsLack of scale facilities hinders ability to test, innovate technologiesEngineers can’t spec, planners lack data

Result = Hesitation to commit investmentResult = Fewer opportunities to evolve technologies and systems

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Achieving Process Scale

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Technology

Actual applicationCurrent

Necessary intermediate step

Ideal future

Processviability

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Wider adoption requires:Co-location with sources of primary feedstocksBest-in-class technologyBest-in-class process knowledgeAnticipation, proper evaluation of new or evolving technologiesMultiple favorable drivers for early adoption (need, champions) Ability to evaluate and model inputs, outputs, economics AND processesCross-industry feasibility, planning, performance modeling based on:

Knowledge of algae biology and growthFamiliarity with upstream and downstream processes and outputsIn-field implementation experienceRegulatory and environmental incentives, impact

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OriginOil Expert ServicesFill the current gap for end-users re: planning & implementationIntended to ‘jump-start’ wider, more rapid adoption of algae solutionsTechnology, solution agnostic

Needs Analysis & Technical Feasibility Assessments – Can it be doneEconomic Evaluations – Should we do itProject Planning – How to go about itImplementation SupportNew Product Development – When existing technologies not sufficientDeveloping sales, licensing, prod dev opportunities for other technologies, systems

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Needs, Technical AnalysisEvaluation of project potential and site(s) based on technical factors

LightCarbon dioxideNutrients, other feedstocksWater available, demand, recyclingLand availabilityClimateOverall fit for algae in the desired application(s)

Identify, capture, clarify project objectives and desired outcomesReview constraints and other possible barriers to successful implementationAnalysis of all finding to provide decision supportRecommendations for options, issues to consider going forward

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Economic EvaluationFinancial modeling

CAPEX, OPEX estimatesEnergy-mass balance

Revenue streamsDirect outputsCredits/incentives

Risks assessment, mitigation strategiesInvestment & financing optionsOther strategies to reduce risk, improve return Social, intangible impact

Job creationEnvironmental benefitSecondary impact on local, regional economies

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Project Planning

Business plan developmentTechnology evaluation review process Final technology & systems selectionResource acquisitionUpdated financial modeling to support investment partnersEngineering/design technical interface

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Implementation Support

Ongoing scientific, technical, and engineering consultingSupport during scale-up from lab to pilot to productionGovernment & regulatory issues managementEngineering and construction technical reviewAssistance in resolving performance issuesReview and testing of process & output assumptions, parameters, QC specs

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New Product Development

When existing technologies, products not sufficient to meet site/application needQuantify/qualify potential for potential for new developmentIdentify science, technology, product partnersConduct review & selection of partners, resourcesManage research, design, development & testing processes to best possible outcomes

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Expert Services TeamManagement:

Ken Reynolds, VP CommercializationExperience with commercialization of emerging technologies, professional services management

Chris Beaven, Director of Business Development and Public AffairsFocus on technical, financial and economic modeling, government policy and public affairs

Direct Resources:Jose L. Sanchez, Vice President of Growth & Production

Industry-recognized algaeculturist, large-scale algae systems manager, legislation expert in algae and biofuelsVikram Pattarkine, PhD, Consulting Scientist

Veteran waste water and bio-remediation engineer, specialist in algae waste water technologies

Supporting Resources:Brian Goodall, PhD, Chief Technology Officer

Expert on harvesting and extraction and downstream processing of algae, transportation fuels and specialty chemicals.Paul Reep, Senior Technical Advisor

25 years as DOE National Laboratory Program Manager, specialist in Intellectual Property, licensing and technology transferScott Fraser, VP Operations

Veteran of scaling from lab to market, algae systems integration, technology implementation management

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NEW TEAM MEMBERS

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20+ years VP level services agency – strategy, competitive analysis, product marketingExperience across wide range of technologies and industriesPower, engineering, manufacturing and industrial products backgroundExpert in commercialization of new/emerging technologies

Intellectual Property managementCompetitive analysis and strategy in emerging markets & technologiesProduct development, product marketing, competitive differentiationDevelopment, analysis business strategy, business plan, risk analysis, risk mitigationEvaluation of M&A opportunitiesCreating & managing JVs, joint development, strategic alliancesCreating, maintaining sustainable competitive advantage for a technology company

Extensive in-country experience in Brazil, fluent in PortugueseCompleting MBA in Technology Management at Pepperdine’s Graziadio School

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Ken ReynoldsVP of Commercialization

Veteran in design and field operation of open pond, photobioreactor and dark-growth algae production systemsExperienced executive in product and intellectual property development. Designed Mexico’s first biodiesel plant, advised lawmakers to create its biofuel industry. General Manager of Aurora Mexico:

Launched Aurora’s Mexico-based field operations, Built and opened its R&D facilities, managed initial scale-up endeavors, Negotiated land acquisition, water rights and CO2 procurement,Introduced landmark Mexican legislation for algae production systems.

Became available to OriginOil after Aurora’s decision to base field ops in Australia.BS in Mechanical Engineering and MS in Manufacturing Systems from InstitutoTecnologico de Monterrey. MS in Environmental Health Management from Harvard University.

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Jose L. SanchezVP of Growth & Production

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To discuss your expert services needs, please contact:

Chris BeavenDir. Of Business Development & Public Affairs

(877) 999-OOILEmail for expert services only:

expert@originoil.com