Slide 1: Water & Wastewater Development Financial Results
Water & eer Wastewater —_ s z Financial Development - Development se Tas Results Presented by Mark Harding, CEO
Slide 2: Safe Harbor Statement
Overview SAFE HARBOR STATEMENT Statements that are not historical facts contained or incorporated by reference in this presentation are “forward- looking statements’ (“FLS”) within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Sect
Slide 3: Water and Wastewater Resource Development Segment
Water and Wastewater Resource Development Segment + Own a large and valuable portfolio of water rights + Sustainable ground and surface water rights we estimate can serve up to 60,000 SFEs + Denver metro land development requires developers to have water service as a condition of zoning, offering us
Slide 4: Water & Wastewater Development
Water & eer Wastewater —_ s z Financial Development - Development se Tas Results Presented by Mark Harding, CEO
Slide 5: Wastewater Collection
ha Wastewater Collection AT A GLANCE
Slide 6: Reclamation
+ Construction of this $10 million investment completed in February 2020 + Comprised of a state-of-the-art tw y 30’ pretreatment building and a two- story 69’ x 167’ main plant structure. RECLAMATION + Provides highly treated irrigation and other reclaimed water uses and can service up op 2 ai ~mily
Slide 7: Water Services Monthly Water Customers
Water Services Monthly Water Customers 5,000 5,000 Growth from: 4500 New Residential 4,000 New service customers added with every neighborhood 3,500 3,000 New Commercial ” Future Sky Ranch 2,500 2570 commercial phases ra 2,000 2,070 Existing Residential ase 1,570 Elbert and hwy 86 = Residents 1,000
Slide 8: Investment in Water and Tap Sales
Investment in Water and Tap Sales All major infrastructure is in service Water/WW Tap Fees to support phase 2 of the Sky Ranch Development FQ2 2021 Water Assets (Net) In millions $2,666,000 2019 2020 2021 @ Ssold ©) Projected (Current Rates)
Slide 9: Land Development
Water & eer Wastewater —_ s z Financial Development - Development se Tas Results Presented by Mark Harding, CEO
Slide 10: Land Development
7 LAND DEVELOPMENT
Slide 11: Sky Ranch Filing 1: All lots delivered (509)
- All lots delivered (509) + Nearly 300 residents + 115 homes under construction - Estimated that homes will be fully sold out by December 2021 + Recognized $36.7 million in lot revenue to date + Recognized $11.5 million in tap fees to date taylor | HOMEBUILDERS MOrTiSON gga @ RICHVIOND UKRMERICAN H
Slide 12: Sky Ranch Filing 2 and partnering homebuilders
+ Approximately 900 lots in total + 800 lots under contract with home builders + 100+ lots reserved for BTR purposes (In yellow) + Broke ground February 2021 + Initial lots expected to be delivered late calendar 2021 + Estimated lot revenues of $72.6 million + Estimated tap fees of $21.5 million » E
Slide 13: Sky Ranch
SKY RANCH ~ sa Filing 1-506 Lots Revenues Lot Sales $ 36.7 million Current Reimbursables $10.5 million 200M 900 Lots Future Reimbursements $ 21.1 million* 506 Lots Tap Fees $ 14.9 million** Taam 14,800,000 Costs $35.8 million 72,600,000 331,254,000 “" in income in 2-202) tnd With S14 expected before
Slide 14: Build-to-Rent
Water & eer Wastewater —_ s z Financial Development - Development se Tas Results Presented by Mark Harding, CEO
Slide 15: Build-to-Rent
BUILD-TO-RENT Build-to-Rent (BTR) is the construction of single family homes with the intent to retain them for long-term rental purposes. Pure Cycle is working with experienced home builders to construct these houses, which Pure Cycle will own and maintain these properties, taking on a new role as
Slide 16: RE@Colorado March 2021 Housing Market
RE@COLORADO, Nake March 2021 Greater Denver Metro Area 7% Homes cLoseD Inthe Denver Metro area this March, 5,169 Homes Closed, which is mare than any ‘other March on record. The number of Mazeh clasings was 7% more than March 2020 and 31% more than last month. In March, the count of listings in Pend
Slide 17: Sky Ranch - Life Within Reach
Sky Ranch - Life Within Reach if d Y i
Slide 18: Pro Forma Single House
Pro Forma Pro Forma Single house Single house Monthly Annualized Rental income $ 2,800 $ 33,600 Annualized Average Estimated Rental Revenue per Home of $33K Operations, repairs and maintenance Property Taxes and insurance Interest Expense Cash flow nnualized Average estimated cash flow per Home of $
Slide 19: Per House Estimates
PER HOUSE ESTIMATES Capitalized costs Financed costs Fair market value $342K $317K $450K Assumptions 15 Year Forecast - 100 Homes + Flexible debt usage, up to 80% of appraised value + Low cost capital (3.75%) + House fair market value estimated at $450,000 based on homes sold in Sky Ranch per NMLS -
Slide 20: Oil and Gas / Other
Water & eer Wastewater —_ s z Financial Development - Development se Tas Results Presented by Mark Harding, CEO
Slide 21: Five Possible Formations
Five Possible Formations Pad Development: 40 Acre spacing 16 wells/mile formation Over 10,000 well capacity Average $250,000 per well Leg [DD service Area 1] Lowry Range $B sky Ranch — Gas Collection ‘Water Transmission © Wells Drilled to date 2019 Sky Ranch Arapahoe County Fairgrounds 21.
Slide 22: Financial Results
Water & eer Wastewater —_ s z Financial Development - Development se Tas Results Presented by Mark Harding, CEO
Slide 23: Six Months Ended February 28, 2021
Six Months Ended February 28, 2021 Revenue coos Gross Margin coos Net Income oo 26,000, $25,708 9,000 $8,835 ey oo sat van ‘ann sued sto $9,607 On 4,000 = 2,000 __ $1,129 e os | — a 2 2 Ss £5 - € € § | #8 e & «& ¢|8 @ www segment @ Land Development @ eww segment @ Land Development ©) Bierce Since th
Slide 24: Summary Balance Sheet Information
SUMMARY BALANCE SHEET INFORMATION ASSETS: Current Assets: Cash, cash equivalents and restricted cash Land development inventories Land development Phase 1 Land development Phase 2 Public reimbursable costs - Phase 2 All other current assets Total current assets Investments in water and water systems
Slide 25: Summary Income Statement Information
SUMMARY INCOME STATEMENT INFORMATION ‘Three Months Ended Six Months Ended February 28,2021 February 29,2020 February 28,2021 February 29,2020, (unaudited) (unaudited) g 2 g 241 e x o e g o o & ‘Municipal water usage revenues a x 8 © 8 é Wastewater treatment revenues j Water and wastewater tap revenu
Slide 26: Leadership and Board of Directors
LEADERSHIP AND BOARD OF DIRECTORS Mark W. Harding Kevin B. McNeill President and CEO Vice President and CFO Peter (G&S inlet gletirey g pues 26.
Slide 27: Contact and Company Information
CONTACT AND COMPANY INFORMATION CORPORATE HEADQUARTERS 34501 E. Quincy Ave, BLDG 34, Watkins, CO 80137 CONTACT INFO info@purecyclewater.com Questions? Stock Price Range 303-292-3456 www.purecyclewater.com 14 Follow us on twitter Ww @PureCycleCorp 8 STOCK INFO . 4 Ticker symbol (NASDAQ Capital 2 Mark
Slide 28: Water & Wastewater Development Financial Results
Water & eer Wastewater —_ s z Financial Development - Development se Tas Results Presented by Mark Harding, CEO