“This is a game-changer”John HinesFormer Deputy Secretary for Water PA Department of Environmental Protection

Jan 5, 2017

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Forward Looking Statements/Risk FactorsThis presentation contains, in addition to historical information, forward-looking statements regarding Bion Environmental Technologies, Inc. (the"Company"), which represent the Company's expectations or beliefs including,but not limited to, statements concerning the Company's operations,performance, financial condition, business strategies, and other informationand that involve substantial risks and uncertainties. The Company's actualresults of operations, most of which are beyond the Company's control, coulddiffer materially. For this purpose, any statements contained in thispresentation that are not statements of historical fact may be deemed to beforward-looking statements. Without limiting the generality of the foregoing,words such as "may," "will," "expect," "believe," "anticipate," "intend," "could,""estimate," “projected" or the negative or other variations thereof orcomparable terminology are intended to identify forward-looking statements.Risk Factors that could cause or contribute to such difference include, but arenot limited to, limited operating history; uncertain nature of environmentalregulation and operations; uncertain pace and form of development of nutrient(N&P) reduction market; risks of development of first of their kind IntegratedProjects; need for substantial additional financing; competition; dependence onmanagement; and other factors. Additional information regarding theCompany’s 3G technology platform should be reviewed in the CompanyOverview, available upon request and at www.biontech.com. Investors areurged to also consider closely the disclosures and risk factors in theCompany’s current Form 10-K, filed with the Securities and ExchangeCommission, available at www.sec.gov.

Toxic Algae BloomStuart, FL July 1, 2016

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GUACAMOLE!!

˃ Proven comprehensive waste treatment for large-scale livestock production facilities– High-impact low-cost verifiable solution to several major

environmental and public health issues in the U.S. and the world˃ Platform simultaneously recovers value from the waste stream:

clean water, renewable energy, and nutrients– High-impact verifiable improvements to resource and operational

efficiencies˃ Enables USDA-certified SUSTAINABLE BRAND˃ First in space: no other proven comprehensive solutions˃ Potential acquisition target??˃ OTC QB: BNET (NOT BION!!!!!)

− ~$20 million market cap− Recent price: $0.58 to $1.09− 30d avg daily volume: ~14,000

Bion Overview

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˃ Mark Smith, Chairman 24 years˃ Ed Schafer, Exec Vice Chairman 6 years˃ Jon Northrop, Director (Founder) 24 years˃ Dominic Bassani, CEO 16 years˃ Steve Pagano, Chief Engineer 24 years˃ Jeremy Rowland, COO 10 years˃ Craig Scott, Dir of Comm 23 years˃ Long-term consultants

− Mike McCloskey, livestock industry− Morton Orentlicher, process engineering− Dennis Tristao, air emissions

Dedicated and Capable Team

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˃ Coalition for Affordable Bay Solutions˃ Founding members

– JBS USA (JBS SA: largest meat processor in the world)– Kreider Farms (a leading U.S. egg producer)– Fair Oaks Farms (National showcase dairy in IN; Mike McCloskey)– Bion

˃ Legislative and policy support– National Milk Producers Federation – Dairy Farmers of America – Land O’Lakes– PA Farm Bureau – PennAg (large farm/livestock coalition)

CABS/Industry Relationships

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The Problem/Opportunity…

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˃ Livestock production: one of the largest sources of pollution in the United States

˃ All but exempt from Clean Air and Water Acts ˃ No longer a question of if it gets cleaned up:

How does it get accomplished?How does it get paid for?

CAFOsConcentrated Animal Feeding Operations

8Account for most of U.S. animal-protein production

Fertilizer or Waste Disposal?

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2 billion poultry80 million beef cattle

62 million swine9 million dairy cows

1.37 BILLION tons of waste130X human waste1

1Pew Commission on Industrial Farm Animal Production (Harkin Report)

75% of nitrogen lost to environment

Livestock Waste Nutrients

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Toxic Algae Bloom – Toledo water crisis Lake Erie in 2014

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Algae Bloom – Gulf of Mexico

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Annual dead zone averages 5,500 square miles

Chesapeake Bay

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Dead Zones

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HypoxiaLow- or no-oxygen

DEAD ZONES from eutrophication

(decomposition of organic matter)

˃ One of America's most widespread, costly and challenging environmental problems…US EPA

˃ Globally, the most prevalent water quality problem is eutrophication, a result of high-nutrient loads…Veolia/ International Food Policy Research Institute Report 2015

Excess NutrientsLocal, Regional, National, Global Problem

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540 dead zones worldwide

˃ Nutrients− Surface− Groundwater contamination− Soil contamination

˃ Air Pollution− Ammonia

˃ PM2.5 – small inhalable particulate matter˃ Atmospheric nitrogen deposition

− Greenhouse gases (methane, nitrous oxide)− Hydrogen sulfide (multiple health issues)− Nitric oxide (acid rain)

˃ Pathogens − Food-borne illnesses − Antibiotic resistance

Livestock Waste Impacts

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Escalating Clean Water Costs

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˃ Resources wasted or underutilized− Energy− Nutrients− Water

˃ Manure handling costs increasing˃ Industry is ‘stuck’ where they are

− No growth/expansion absent land acquisition− No consolidation or relocation to improve efficiencies− Declining margins across the supply chain

˃ Regulatory exposure˃ Public image: consumer demand for sustainability˃ It’s not ‘if’; it’s HOW TO PAY FOR IT?

Escalating Livestock Industry Costs

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Bion’s 2G Technology

˃ Process train: combination of mechanical, biological and thermal processes – comparable to municipal treatment

˃ ONLY technology that provides proven comprehensive on-site treatment for ‘wet waste’ (dairy, beef, swine)

˃ Reclaims clean water, renewable energy and byproducts from the waste stream

˃ Proven at Kreider Farms− PA DEP permit/verification− USDA Technical Assessment

˃ Scalable˃ Commercially-tested˃ 8 US/6 international patents

issued/applied for˃ 2G business depends on ability to sell nutrient reductions

˃ Last two years: series of patent filings, press releases, 8-k’s, etc., related to 3G platform

˃ Focus on increased value from resource recovery: nutrients and renewable energy

˃ Last six months: 3G pilot trials ˃ 3G technology enables profitability in certain locations

and at very large scale, based on byproduct and renewable energy recovery alone and without monetizing nutrient reductions1

˃ Initial Project: Kreider Farms Poultry (KF2)− Nine million egg layers (poultry) in PA

1Subject to a number of risks and uncertainties more fully described in Bion’s Company Overview and SEC filings

3G Platform

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˃ Byproducts− Organic1/natural nitrogen fertilizer− Natural soil amendment products− Feed additives (potential)

˃ Renewable energy− Pipeline-quality renewable natural gas− RE and carbon credits

˃ Nutrient reductions˃ USDA-certified2 sustainable brand1Application for organic certification pending2USDA conditional approval received - pending final inspections

3G: Multiple Revenue Streams

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˃ Ammonium crystals – stabilized nitrogen− Without phosphorus, salts, micronutrients, fiber, pathogens− Preparing application to Organic Materials Research Institute

(OMRI) to certify for use in organic production− HIGHLY DISRUPTIVE PRODUCT

˃ OMRI-certified organic carries a significant price premium− Low-end products (‘impure’) start at $3/lb N− Envirokure @ $12/lb N bulk− Grower’s Secret @ $40/lb N retail

˃ KF2 potential− Ammonium crystals: 6M lbs N/yr− Solids: 60,000 tons/yr @ 85% dry matter

˃ Primary task: develop strategic partners in various market channels

˃ Primary risk: OMRI certification, expected Q2 2017

Organic Nitrogen Byproduct

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˃ Pipeline quality, renewable natural gas˃ Federal energy tax credit: 30% ITC on biogas capex

− Bill in US Congress to extend and apply to nutrient-control˃ RE Subsidies/Credits – robust markets today

− RIN Credits (D3) under the Renewable Fuel Standard – national market

− LCFS Credits under CA’s Low Carbon Fuel Standard market˃ KF2 potential

− Renewable nat gas produced: 475,000 MMBTU/year (~9M gal)− D3 RINs: 11.727 D3 RINs per MMBTU − LCFS Credits: 13.5 MMBTU per LCFS credit

˃ Primary risk: pricing (nat gas; RIN and LCFS credits –historical market data available)

Renewable Energy

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˃ Developing Market˃ 2010 Chesapeake Bay watershed-wide regulations: TMDL

− $30 to $50 billion estimated cost− Similar mandates expected for Great Lakes, Mississippi River Basin

˃ USDA, US EPA, OMB support market-driven strategies like nutrient trading to reduce costs

˃ Competitive bidding will identify and provide funding for low-cost solutions that produce qualified offsets

˃ PA legislation to establish competitive bidding introduced in October 2016 and sponsored by Republican leadership; expect by Q2 2017

˃ KF2 Potential− 1.5 to 2 million pounds (Chesapeake Bay verified N credits)− Projected value: $8 to $12 per pound

˃ Primary risks: timing (policy change opposed by entrenched interests); credit pricing

˃ Bion highly confident that policy change will happen…why?

Nutrient Reductions

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Competitive Bidding

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2013 bipartisan Pennsylvania Legislative Budget and Finance Committee study projected annual savings by 2025 up to $1.5 billion in PA’s Chesapeake Bay compliance costs if the state adopts a competitive bidding program to procure nutrient reductions from large scale agriculture projects like Bion’s (Bion discussed in report).

Up to 80% SAVINGSCompetitive bidding used at all levels of government to

acquire goods and services on behalf of the taxpayer

˃ Environment− Accelerated implementation− Local environmental benefits for ‘free’

˃ Producer − Eliminate manure handling costs − Increased revenue (byproducts, energy, credits)− Sustainable branding – premium pricing− Expansion potential− Mitigate future regulatory exposure

˃ Taxpayer and community− Substantially reduced compliance costs− Public health benefits− Avoid future drinking water treatment costs− Increased property values− Local economic activity/growth; jobs

Win-Win-Win

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˃ Not ‘going to happen’. Happening NOW.˃ Pennsylvania and the Chesapeake Bay

− Real sanctions begin in 2017 − Competitive bidding legislation in PA Senate/ House − Senate bill supported by Republican leadership

˃ Federal energy tax credit for nutrient recovery− Introduced in US Congress (House and Senate)− House bill: bipartisan (30 cosponsors: 19R:11D)− 30% Investment Tax Credit− Tax-free bonds

˃ Market-driven solutions supported by Trump Admin

˃ Livestock industry supports it

Policy Change

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˃ Increasing consumer demand for sustainable practices− Organic industry growing at 11%− No analog in meat production

˃ Livestock industry under attack− Water pollution, greenhouse gases, antibiotics, animal welfare

˃ Ceres and other large activist investors are pushing for increased sustainability in the livestock ag sector

˃ Positive drivers− Market differentiation; premium pricing and higher margins

˃ Negative drivers− Avoid foodborne illness incidents and future regulation; public

image (toxic algae blooms, dead zones, greenhouse gases, antibiotic resistance, ‘Meatless Mondays’, etc.)

Agriculture and Sustainability

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Industry Response

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˃ Global Roundtable on Sustainable Beef: Cargill, JBS, Elanco, Rabobank, McDonalds, A&W, The Nature Conservancy, WWF, Rainforest Alliance, Costco, et al

˃ Food Giants Announce Major “Smart Label” Initiative− Fortune, WSJ (Dec 2015)− Grocery Manufacturing Association: Pepsi, ConAgra, Hormel,

Campbell Soup, Land O’Lakes, Coca-Cola, Nestle, Hershey, General Foods, et al

− Track environmental impact, ingredients, animal welfare, GMO

− “Instantaneous access” - barcode˃ Perdue (chicken) and retailers’ “Never Ever” no-antibiotics

campaign: that is USDA PVP

˃ Verifiable metrics:− Reduced nutrient footprint− Reduced carbon footprint− Pathogen kill

˃ Point of sale verification with barcode− Produced when and where− Farm description and history− Animal husbandry and waste management practices− Steps to improve sustainability− Quantified results/impact calculator

˃ USDA Process Verified Program (PVP)− Provisional approval pending final inspections

˃ Bion will participate in premium pricing: licensing fee/royalty

Bion Sustainable Brand

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˃ 2G tech platform is complete‒ Proven at commercial scale – USDA, US EPA, PA DEP‒ Qualified for federal loan guarantees‒ Requires market for nutrient credits

˃ 3G tech platform: successful pilot trials‒ Can move forward on certain projects WITHOUT a market for

credits (very large scale/ right location)‒ Ongoing trials to improve efficiencies/ reduce costs‒ Next step: commercial scale pilot to refine economic envelope

that includes revenues from byproducts, renewable energy, credits, branding (complete by Q1 2017)

‒ Anticipate initial commercial scale installation for Kreider Farms poultry (KF2) in 2017

Limited Technology Risk

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˃ Kreider is the third largest egg producer in the U.S.˃ Current operations: ~5.5M layers in four locations˃ System capacity: 9M to accommodate planned growth˃ Economics (estimates1)

Kreider 2 Highlights

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1Subject to a number of risks and uncertainties more fully described in Bion’s Company Overview and SEC filings. Detailed projections available with non-disclosure agreement.

CAPEX ~$50M (ITC will apply to a substantial amount)Source Revenue EBITDAFertilizer products $14MRenewable energy $13MNutrient reductions $13M ??Branding ?? ??

$40M+ ??

$15M

˃ PA legislation to implement competitive bidding (Q1/Q2 2017)˃ Energy tax credit bill for biogas/nutrient control technologies now in

the U.S. House and Senate (Q2/Q3 2017)˃ Conclude agreement with Pennsylvania to purchase long-term

verified credits for KF 2 (Q2 2017)˃ Finalize business plan/project financing for KF 2 (Q2 2017)˃ Build/produce ammonium crystals from commercial pilot (planned

for Q1 2017)˃ Apply/secure OMRI approval of organic certification (in process,

expect by Q2 2017)˃ Secure agreement(s) with distribution partner(s) for byproduct sales

(Q2 2017)˃ Conclude strategic agreement(s) with livestock producer(s) (TBD)1Timetable is based on management’s current expectations and is subject to a number of

variables beyond Bion’s control, including political processes, vendor schedules, etc.

Anticipated1 Upcoming Catalysts

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Massive Markets

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Projects2+ billion poultry80 million beef cattle62 million swine9 million dairy cowsMost on CAFOs USDA NASS

Nutrient Reductions (lbs)Chesapeake Bay 51MGreat Lakes >200MGulf of Mexico >1BBion believes at least $8B to $10B in annual clean water spending could be reallocated to non-point source nutrient reductions

D3 Biofuel Mandate2017 312M gal2016 230M gal2015 123M gal epa.gov

Organic NitrogenUS organic row crop production: 9M acres

10% annual growth5-10 lbs N/acre

Greenhouse, turf, blended retail product2015 retail organic lawn & garden: $475MU.S. organic foods market: $39B

11% annual growth

LCFS Credit Trading2015 $176M2014 $ 52M2013 $ 49M arb.ca.gov

IT’S A NEW UNTAPPED SPACE− $110 billion clean water sector− $180 billion animal protein industry− $185 billion (by 2021) biofuels industry

5% market penetration: beef, swine, poultry layers only (not including dairy, poultry broilers)

$565M est. annual revenueBion’s current valuation: <$20M (~$40 million fully-diluted)

Exit Strategy – Acquisition??

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If we can put several ‘cherry’ projects like Kreider 2 in a development pipeline over the next 12 to 24 months, what would the technology platform and development pipeline be worth to a large strategic investor?

Value Proposition

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Compare to KIOR (Biofuels) in 2012

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Idea Generation

Proof of ConceptCommercial Orange Juice Processor; commercial dairy

1st Generation Commercial ScaleLarge, expensive and cumbersome

Learning Curve RefinementRe-Engineer and Re-DesignDevries Dairy, TX

2nd Generation Commercial Scale ProvenKreider Farms

3rd Generation Pilot Scale

$40 M Market Cap (FD)Bion is

• Overlapping $multi-billion markets: cleantech, agriculture, water, energy and the environment

• Proven technology at scale• Little to no current competition

Idea Generation

Proof of ConceptLab

1st Generation Commercial ScaleNot Yet Operating

Problems with scalability of technology

2014 Bankruptcy$1.5 B Market Cap

Kior was• Clean fuels market (only)• Developing technology• One of many technology

developers in the space

KIOR traded at 37x the market cap of Bion when three stages back in the life cycle