Calci TechPresentation 2010

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Green Breakthrough Projects Technology Delivering Superior and Cost Saving Products for Established Markets April 2010 The Future is Bright, White & Sustainable

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Transcript of Calci TechPresentation 2010

Page 1: Calci TechPresentation 2010

Green Breakthrough ProjectsTechnology Delivering

Superior and Cost Saving Products for Established Markets

April 2010

The Futureis

Bright,White

&Sustainable

Page 2: Calci TechPresentation 2010

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FORWARD-LOOKING INFORMATIONCertain information from CalciTech Ltd. (“CLK”) (website, presentation, fact sheet or any other communications or company related materials), in various filings with United States Regulators, in reports to shareholders and in other communications, is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to management’s expectations as to financial results as well as information with respect to the Company’s beliefs, plans, expectations, anticipations, estimates and intentions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. Forward-looking information describes the Company's expectations as of March 31, 2010.

The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from a conclusion, forecast or projection in such forward-looking information include, among others: general economic factors, adverse industrial events, the Company's ability to deliver its products in a timely manner, reliance on two major customers, the non-renewal of contracts which expire in the near term, complexities and timing of signing large customer contracts, the limited time to capitalize on market opportunities, competition, pricing pressures, fluctuations in its operating results, its ability to make and integrate acquisitions, failures or material changes in its strategic relationships, exposure under contract indemnities or defects in products, its ability to attract and retain key personnel, industry and government regulation, risks associated with integrating new production lines, risks associated with entering new product lines and markets, risks associated with establishing new production facilities and the potential for costs over-runs or delays associated with construction, risks that the Company may be unable to procure needed capital for its growth plans and risks that the Company may not be able to obtain licenses for technology needed for its expansion plans on terms that are acceptable to the Company.

The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward–looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has made certain assumptions regarding the timing of the realization of certain opportunities which it thinks is reasonable but which may not be achieved. Furthermore, the pursuit of these opportunities does not ensure a linear progression of the Company's revenue and earnings, since they may involve significant up-front expenditures. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. For additional information with respect to certain of these and other factors, refer to the risks and uncertainties sections of the Company's Form 20-F Statement dated December 31, 2008 and filed with United States securities regulators.

USE OF MARKET AND INDUSTRY DATACLK information (website, presentation, fact sheet or any other communications or company related materials), includes market and industry data that has been obtained from third party sources, including industry publications, as well as industry data prepared by CLK management and the agents on the basis of their knowledge of and experience in the industry in which CLK operates. Management and the agents' knowledge of the industry have been developed through their experience and participation in the industry. Management believes that the industry data is accurate and that the estimates and assumptions are reasonable, but there is no assurance as to the accuracy or completeness of this data. Third party sources generally state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance as to the accuracy or completeness of included information. Although management believes it to be reliable, management has not independently verified any of the data from third party sources referred to in this investor presentation or ascertained the underlying economic assumptions relied upon by such sources.

SAFE HARBOUR STATEMENT

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SCC Process – Green CredentialsSCC process turns otherwise economically worthless andpolluting industrial waste into a valuable resource.

SCC process reduces the requirement for ecologically harmfulquarrying, reduces dusting problems and saves energy andtransport costs

Upcycling of historical waste dumps reduces land fill and allowsfor regeneration of brown sites.

Per tonne of SCC produced from waste, 44 tonnes ofgreenhouse gas CO2 is consumed (CO2 credits available)

Treatment of paper mill sludge ash consumes CO2 whileyielding valuable minerals, allowing for recycling not possiblewith other processes.

SCC from waste enables end customers to claim that theirproducts use sustainable materials

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Page 4: Calci TechPresentation 2010

Investment OpportunityPatented (green) technology converts wide variety of lime sources, particularly industrialwaste, into new and superior form of calcium carbonate

Technology represents over ten years and $50 million in development costs

Technology delivers products with superior quality and cost of use characteristics

Technology and products extensively validated in real life trials

Projections resulting from market feedback (Letters of Intent) and other extensive internaland third party market research, show that the projects are expected to yield returns well above industry average

The market is ready to take delivery, all that is required is build up of production capacity

European subsidiary now working towards completion of project finance for first 500,000 tpaproduction plants and Phase II development towards 2 million tpa production capacity

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What is SCC?Synthetic Calcium Carbonate

Mineral pigment and specialty filler

Wide variety of multi billion $ applications

Products that• Improve finished product quality• Reduce Running Costs• Increase Productivity

Aimed at high end value segment for each application

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Global Calcium Carbonate and Equivalent Minerals Markets

Application Market SizePaper Coating

Plastics

Food

Pharmaceutical

Cosmetics

Paints

Sealants & Adhesives

Printing Inks

Over $ 5 billion

Over $3 billion

Over $300 million

Over $200 million

Over $200 million

Over $700 million

Over $150 million

Over $100 million

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Optical & Printing quality

Strength, Rheology Control, Filler, Optical

Calcium Fortification

Carrier of Calcium, Tableting

Pigment, texture

Optical, Coverage

Rheology Control

Rheology Control, Pigment Carrier

Function

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SCC Potential

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Market Size (Mtpa)CalciTech Target Sales in 6SCC Potential 14kaolin (paper) 14GCC (non-paper) 46GCC (paper coating) 26PCC (filler) 4.5PCC (Coating) 1

6

14

14

46

26

4.5

1

CalciTech Target Sales in

SCC Potential

kaolin (paper)

GCC (non-paper)

GCC (paper coating)

PCC (filler)

PCC (Coating)

Mar

ket s

ize

(Mtp

a)SCC Potential

Sources: Industrial Minerals, Roskill

6

14

14

46

26

4.5

1

0 10 20 30 40 50

CalciTech Target Sales in 15 yrs

SCC Potential

kaolin (paper)

GCC (non-paper)

GCC (paper coating)

PCC (filler)

PCC (Coating)

Mar

ket s

ize

(Mtp

a)

SCC Potential

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SCC Brings SustainabilityReduces usage of valuable materials

• Higher filler loadings in plastics reduces usage of polymers by up to 20%• Improved opacity and brightness enables less fibre, pigment and less TiO2

Recycles waste from existing processes• Converts mineral waste from paper recycling plant into valuable paper

coating material• Converts carbide waste from PVC acetylene process into useful filler for

plastics• Avoids disposal into landfill• Replaces virgin calcium carbonate with superior sustainable SCC• Reduces environmental damage from quarrying and transporting minerals• Captures 44 tonnes of CO2 per 100 tonnes of product• CO2 credits available

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SCC Brings Cost SavingsIncrease filler loading in PVC profiles reduces cost by 5%

Replaces high volume GCC with lower grammage SCC for same properties, saving pigmentcosts by up to 20%

Increasing filler loading in silicone sealants reduces costs by 18%

Reducing TiO2 ($2,800 per tonne) in PVC & Paint reduces product costs by 5%

Increasing speed of paper machine by reducing drying time potentially reduces costs by 1-2%

Reducing wear on processing equipment reduces maintenance costs

Converting waste material saves disposal costs of � $60/t

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Technology Time Line

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1996 – 1999 ChemicalProcess

Development

1999Patent

Application UK

1999Validationby RVM

2000First pilot

plant: Odda,

Norway

2000Global Patent

Application

2000–2002 IndustrialProcess

Development

2002Leuna small-scale

production plant

Germany

2003 –2009

Product launches & Customer validation

2009New Patent

filings for waste

recycling and new products

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Technology PedigreeUtah University (Prof. J. Bunger)

Lausanne University

Manchester-Synprotec bench plant

RVM research centre (P. Garin)

Centre Technique du Papier – Grenoble

BASF Validation

Paper Producers

Plastics Producers

Food Producers

Geneva Institute of Technology

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SCC versus Competition

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SCC has:

Narrowest particle size distribution

Manipulable particle shape

Smoothest particles

Superior product characteristics

Ability to offer premium products to clients who will acquire quality, running cost savings and increased productivity and hence a competitive advantage

SCC PCC

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SCC Benefits - Paper Coating

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Pap

er G

loss

Brig

htne

ss

Increases quality of finished product with better gloss, whiteness, brightness, opacity, etc.

Replaces costly calcined clay ($450/t)

Enhances kaolin to exceed performance of GCC

Reduces coating process running costs with faster speeds and reduced calendering needs

Increases the lifetime of expensive coating blades due to lower abrasivity

Decreases dusting related maintenance requirements

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SCC Benefits - PolymersImproves gloss and toughness without adverse effects on dispersability and melt viscosity

Increases polymer strength

Purity leads to improved whiteness and thermal stability in sensitive applications

Improves sustainability by offsetting oil based polyolefin resins

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80

110

140Whiteness

Gloss

Thermal StabilityImpact Strength

Output

PVC Window Profile - performance improvement with SCC (%)

SCCStandard GCC

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SCC Benefits – Food & PharmaExtremely high purity complies with strictest current and future purity standards

Low metal content ideal for calcium enriched baby and clinical food

No sedimentation or chalky taste in calcium enriched milk and beverages

Rheology ensures good process filler results for chewing gum, bakery products, cereals, yoghurts, chocolate etc

Superior mixability allows use as excipient for nutraceuticaland pharmaceutical industry

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PCC SCCIron 120 ppm 20ppm

Aluminium 120 ppm 3 ppmLead 200 ppb 150 ppb

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SCC Benefits - Paints, sealants, adhesives & glassEnhances optical properties in decorative paints

Dispersion for paints requires less energy

Optimum balance between mechanical and rheological properties

Enhances formulation flexibility, such as filler loading in sealants and adhesives

More sustainable than other functional extenders including calcined kaolin and PCC

Unique advantage of extremely low iron content for production of special glass such as ultra-clear, ophthalmic and new solar panels

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Commercial Model & StrategyAppointment of industry specialists to work with industry on product development to meet key market drivers

Merchant plants serving customer clusters (e.g. geographic & specific product applications)

Appointment of application specific sales agents

JVs with industrial partners

Joint ventures with distributors for geographic and product markets

Maximisation of revenue and margin through product mix

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Roadmap - AchievementsPrimary patent granted worldwide

Further patents pending

Pilot plant has proven process, makes trial samples

LoI‘s now being secured for plants. Initial plants now ready to build with 100% LoI cover.

MoU‘s with partner suppliers and distributors

Planning 8 plants in Europe with industrial partners

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Roadmap - Next stepTo focus on recycling of paper sludge ash to high grade SCC forpaper coating in Europe and North America

Complete structured finance for 500,000 tpa of SCC production

Develop business plan for North America

Review SCC production from waste materials in India and South East Asia

Plan for more senior listings in North America and Europe

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Companies in discussion for LoIs and JVs

• The paper industry (European based)• The Chemical Industry (European

and American based)• The Food industry (European based)• The Polymer and Plastics industries

(European based)• The Pigments industry (European

and American based)

Major international

players in

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Management

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Roger Leopard, President & CEO. Extensive financial, marketing and entrepreneurial experience

Thomas Livingstone-Learmonth, COO, Extensive senior management experience in various industries among which Chairman and Managing Director of various paper mills in France.

CFO: currently recruiting

Michael Watts, Director of Marketing, consummate commercial professional with extensive industrial expereince, most recently as President and CEO of the BTG Group, a multinational provider of instrumentation and consumables to the pulp and paper industry

Francois Roux: Product Development Director, formerly at National Starch and Huber. Extensive experience in paper and PCC industries

Christoph Jensen: Project Director with 20 years plant building experience especially PCC

Charles Kunesh: Director US, former research director SMI, PCC division of Mineral Technologies Inc.

Jean-Claude Masson: Sales Director Food, Pharma & Cosmetics, formerly at Battelle in Switzerland and Ohio, USA

Robert Higgs: Sales Director Polymer Applications, 25 years with Imerys, a world leader in clays and pigments

Thomas Shortt: Director of Corporate Communications

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Investment CaseUnique, well protected technology with range of product applications, disruptive in mature markets

Highly sustainable & environmentally friendly commercialisation, allowing capture of maximum grants, emission credits & agency project finance

Long-term revenue, cash flow & earnings from mature sources

Innovative high-margin products, proven to meet key industry drivers of quality, cost and productivity

Raised over $50 million in development capital to commercialisation phase

First production plants over-subscribed

Seasoned management team

Strong partners (engineering, technical, production)

Large project pipeline – aggressive rollout strategy

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CalciTech ListingCalciTech is a public company listed on the NASD OTC Bulletin Board in the US

Ticker: CLKTF

Fully SEC compliant foreign issuer, filing Form 20-F annually

Shares outstanding 185,639,086

85% Long-term holders, with institutions, discretionary fund managers and high-net worths

Largest shareholders

Envirinvest 12.16%

Santander Asset Management (6.4%)

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The Future is White, Bright & Sustainable

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