Slide 1: Company Investor Presentation
OTCQB: ENCR Company Investor Presentation” September 2014 = er Te <a,
Slide 2: Disclaimer
pared by Ener-Core, Inc. (the Compan Hered as an offer or invitation to subscribe for or vducement to make ano pect to those securities, No agreement to subs jon, opinions or conclusions expressed inthe course ‘This presentation Is nota prospectus or other offering document under U.S. hy other law.
Slide 3: Investment Summary
33 ENER-CORE Investment Summary Significant Market Opportunity: Addresses large and growing demand for solutions to reduce waste gases. Unique Competitive Advantage: Oxidation technology is the leading solution for reducing waste gases and converting them into revenue streams. Multiple Applications
Slide 4: The Problem
eee The Problem: Our global society releases massive amounts of waste gases as by-products of its energy, industrial, and agricultural processes. Compliance with environmental regulations is costly. Non compliance results in fines, more costly. 33 ENER-CORE OTCQB: ENCR Confidential & Proprictary | ©
Slide 5: The Solution
The Solution: Ener-Core’s Gradual Oxidizer generates clean power from these waste gases... * Preventing and reducing emissions * Generating a new revenue stream for existing industrial producers a Nee CORE OTCQB: ENCR Confidential & Proprietary | © 2014 Ener-Core, Inc. 5
Slide 6: The Size of the Opportunity
The Size of the Oppo: $100 billion potential sects equipment revenues market od ia a ns s-100 ral | Ability to use waste gas to produce pow a oR clean energy represents... OTCQB: ENCR Confidential & Proprietary | © 2014 Ener-Core, Inc. 6
Slide 7: Existing solutions destroy gases. They do not use them productively
Existing solutions destroy gases. They do not use them productively Thermal Oxidation Scrubbers Venting Regenerative fame Ackis Gas OTCOB: ENCR Confidential & Proprietary | © 2014 Ener-Core, Inc. 7
Slide 8: Why do Industries not use their waste gases?
Why do Industries not use their waste gases? For over 250 years, our industries have used and improved combustion-based processes to convert fuels into energy. We have more power with more fuel efficiency, BUT combustion does not work on the poor quality gases produced as by-products from industries
Slide 9: Oxidation: A Natural Process
Oxidation: A Natural Process Oxidation occurs when a substance comes into contact with oxygen molecules— almost everything, over time, reacts with oxygen... However oxidation can be a very slow process. == “<2. -_ ~ Ener-Core’s accelerates the ~ a e ~~ oxidation of methane to 2-3 SBA seconds! Methan
Slide 10: Major Components of the Solution
Major Components of the Solution Source of Low- Quality or Off-Spec Gas Turbine Package Bespoke Interface . Conventional Gas Ener-Core’s Turbine (modified for Generator Gradual Oxidizer = external combustion) 33 ENER-CORE OTCQB: ENCR Confidential & Proprictary | © 2014 Ener-Core, Inc. 10
Slide 11: Target industries and simple project economics
WasteWater Treatment Plant Ethanol Plant Dairy or Poultry Farm Regardless of the industry Ener-Core’s project economics are simple, valued and consistent. Food Processing Plant Coal Mine 3 ener OTCQB: ENCR Confidential & Proprietary | © 2014 Ener-Core, Inc. 11
Slide 12: Typical Project Economics
Typical Project Economics Ener-Core Powerstation Electrical Consumption , Fuel Required Industrial Operation Capital Cost for 2 MW Powerstation: - $5.2 Million Annual Electricity Savings: +$1.1 Million Annual Gas Savings: + $750K Avoided Cost of Emissions Destruction Equipment: + $500K Payback witho
Slide 13: Business Strategy
Business Strategy ug Solar Turbines DRESSERRAND. Potential $100 Billion ‘A Catepter Company power equipment market related to low-quality H+8Kawasaki SIEMENS Rolls-Royce @ fuels Bridge Turbine Manufacturers and the previously nonexistent market of low quality gases. Leverage their existing brands an
Slide 14: Partner Development
Partner Development Gas Turbine Market: + Market structure: one distinct market leader per turbine size segment * Traditional combustion technology limited to higher quality fuels 6 Rolls-Royce a Ge) Partnering with Ener- Core enables turbine suppliers to access large, SIEMENS &. omen Se untapped ma
Slide 15: Company Timeline
Company Timeline Ribbon Cutting Video 2011-12 2013-14 2015 SS —_—_—_—_———— Ener-Core goes public and ships 1st commercial Technology evolves from system prototype to market deployment 33 ENER-CORE OTCQB: ENCR Confidential & Proprictary | © 2014 Enor-Core, Inc. 18
Slide 16: Strategic Intellectual Property Portfolio
Strategic Intellectual Property Portfolio Hundreds of pages of descriptive support: * 100+ independent claims * 600+ dependent claims 50+ Patent Applications filed 13 Patents Granted Ener-Core’s exclusive rights protect the design and utilization Gradual Oxidization Technology of Gradual Oxidation 3
Slide 17: Competitiveness against Traditional Gas Power Generation
Competitiveness against Traditional Gas Power Generation Reciprocating Engine | $85/MWh Gas Turbine $97/MWh Ener-Core 2 MW $63/MWh $14,000,000 $12,000,000 Tote aklsion were poche ‘sing assumed fo pie = ssn $10,000,000 $8,000,000 No Fuel Costs and minimal treatment $6,000,000 expenses drive Ener-Core
Slide 18: Competitiveness Against Renewable Energy
Competitiveness Against Renewable Energy $4500,000 Ener-Core’s technology overcomes higher CAPEX and OPEX with significantly higher capacity factor making its cost to generate $3,500,000 well below the actual levels for wind and $3,000,000 solar $2,500,000 35% _ 5 $2,000,000 73% capacity oreo $120 $
Slide 19: Target Gross Margin (Oxidizer Only)
Target Gross Margin (Oxidizer Only) 000,000 $1,800,000 $1,600,000 $1,400,000 $2,200,000 $2,000,000 Sale price is $800,000 $600,000 *Warranty — 3% of Sale $400,000 $200,000 so - — 250 kW Powerstation 333 kW Powerstation 2 MW Powerstation 3 ENER-CORE Confidential & P
Slide 20: Commercial Expansion
Commercial Expansion Current Partners Projections {© FLexeNERGY| FLEXENERGY Helland 2014 2015 2016 Ener-Core Sales Employees 2 3 4 Sales Reps and Agents 4 7 10 Distributors B 10 12 =awe STORK Turbine Partners 1 2 3 33 ENER-CORE OTCQB: ENCR Confidential & Proprictary | © 2014 Ener-Core, Inc. 20
Slide 21: 2014-2016 Projected Orders & Revenue
2014-2016 Projected Orders & Revenue 2014 2015 2016 | Booked Orders 250 kW 1 3 0 333 kW 0 3 5 2Mw 2 4 z HSiipped Cre sc) 250 kW 1 2 2 333 kW 0 1 4 2Mw 0 2 4 Revenue $900,000 $5,100,000 $15,000,000 33 ENER-CORE OTCQB: ENCR Confidential & Proprictary | © 2014 Ener-Core, Inc. 24
Slide 22: Management Team
Management Team ‘Alain Gastro, Chet Executive Officer and Board Member Executive advice to the USbared Board of Goldwind Sciance & Tectnology (Grdlargest wind turbine manufacturer globally). Previously Presdont of [Akuo Eneray Americas. Aluo Energy isan international ivestor, developer ‘and operator
Slide 23: Board of Directors & Advisory Board
Board of Directors & Advisory Board ‘cha amon chm fhe Board te ttn ‘atorive softwere, one decrnichorinare. ee Cccp tg o's 69 nit 0 tA CECE aa doecpamte oreo Sancta aes tacremtcrmeemesrmsnontst ‘nin Coir, Chet Eeoatve er aad Board Mabon ‘cctv aio tothe US based Board af Goleving Since & Tectnstogy (n
Slide 24: Utilizing Waste: The Rockefeller Effect
Utilizing Waste: The Rockefeller Effect For example, Rockefeller used noxious by- products that other refiners dumped into the river for heat to distill oil. This toxic by-product was gasoline and soon after, the automobile industry was born the automobile promised te STANDARD consume that “vile, us
Slide 25: Watch our Whiteboard video on gradual oxidation
Watch our Whiteboard video explaining the gradual oxidation process and its applications https:/jwww.youtube.com/watch?v=YIwJNOF-SQU