Terraqua Barranca Business Plan A Graphical Presentation

September 18, 2011

This has been prepared as an addendum to the Terraqua Business Plan.

The Business Model in Graphs

This addendum to the Terraqua Business Plan is prepared for those persons having an interest in digging a little deeper into the financial model underlying the Terraqua Business Plan, but lacking the time to do so. The presentation has been prepared simply by copying and pasting into a PowerPoint format graphs that already exist in the underlying Terraqua Barranca business model Excel Spreadsheet

Those electing to view this PowerPoint are urged also to read the business plan itself, as well as the two documents: The Terraqua System and the Terraqua Barranca Business Model – that have been prepared to accompany the plan.

Suggestions as to graphs that might also be added are welcome.

Cash Invested, $8,123,775

Term Loan, $ 12,313,372

Working Loan, $ 1,666,667

Terraqua Barranca Capital Structure

An approximate 60/40 debt/equity ratio

$ 165,000

$ 10,264,87

2

$ 550,000

$ 295,000

$ 240,000

$ 666,000

$ 743,750

$ 705,000

$ 2,060,000

$ 300,000

$ 800,000

$ 480,000

$ 1,080,000

$ 1,227,525

$ 510,000

$ 50,000

$ 50,000

$ 300,000

$ 166,667

$ 333,333

$ 1,166,667

Terraqua Barranca Capital Allocations

Tissue Culture Lab - AD and Stevia

Basic 18.8 l/s WWT Unit (including fish & worms)

Influent Pipeline & Hydraulics

Roads

Security

Electricity and Backup Power Units

Phase II Pilot Project - Santa Catalina

Building design and construction

Fertigation Infrastructure

Fertigation Infrastructure (station/overhead facilities)

Farm Infrastructure & Farm Rolling Stock

Non-Farm Rolling Stock

Extraction Units

Kenaf Equipment, Press and Infrastructure

Miscellaneous Equipment + Spare Parts

Closing Costs

Bridge Financing

Preliminary Expenses

Initial inventory

Initial accounts receivable

Initial operations, admin & sales costs

Labeling begins with the top center ($165,000 for Tissue Culture) and continues around sequentially to the right. For instance, $295,000 is budgeted for roads.

Raw Material; $1,471 Production Labor; $39,634 Production Costs; $39,634

Sales, marketing, & distribution; $1,501

R&D/Quality Assurance & Prelim Expendi-tures; $28,003

General & Admin.; $325,247

Depreciation; $788,564

Terraqua Barranca Year 1. Operating Cost Structure

Year 1, the Construction Year – but beginning operating on a number of fronts. Note absence of raw materials costs and disproportionately high relative costs for G&A and Depreciation, in particular.

Mon01 Mon02 Mon03 Mon04 Mon05 Mon06 Mon07 Mon08 Mon09 Mon10 Mon11 Mon12$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

Terraqua Barranca Year 1. Cost Distribution

Debt Service Depreciation General & Admin.

R&D/Quality Assurance & Prelim Expenditures Sales, marketing, & distribution Production Costs

Production Labor Raw Material

Monthly Operating Costs for Year 1 – the construction year – showing relative distribution across categories. Note that in December, with a big jump in production labor and production costs, “output” is beginning to occur, as are sales of product.

Raw Material; $3,051,822

Production Labor; $1,299,248

Production Costs; $1,299,248

Sales, marketing, & distribution; $857,078

R&D/Quality Assurance & Prelim Expenditures; $496,181

General & Admin.; $1,754,552

Depreciation; $941,560

Debt Service; $2,172,745

Taxes; $1,757,752

Terraqua Barranca Year 2 Operating Cost Structure

Production underway. Note the relatively high debt service, G&A and depreciation costs. Taxes, as stated, probably do not take advantage of tax holidays that should be available during this early phase.

Mon01 Mon02 Mon03 Mon04 Mon05 Mon06 Mon07 Mon08 Mon09 Mon10 Mon11 Mon12$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

Terraqua Barranca Year 2 Cost Distribution

Debt Service Depreciation General & Admin.

R&D/Quality Assurance & Prelim Expenditures Sales, marketing, & distribution Production Costs

Production Labor Raw Material

Production underway. Note the steep increase in Raw Materials costs during the middle of he year.

Raw Material; $7,697,307

Production Labor; $1,961,243

Production Costs; $1,961,243

Sales, marketing, & distribution; $1,800,244

R&D/Quality Assurance & Prelim Expenditures; $698,250

General & Admin.; $2,361,201

Depreciation; $1,334,297

Debt Service; $2,890,619

Taxes; $6,617,501

Terraqua Barranca Year 5 Operating Cost Structure

A relatively mature business now. Note that taxes and raw materials occupy more than 50% of depicted costs. Note relative shrinking of debt service and depreciation – in particular.

2012 2013 2014 2015 2016$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

Terraqua Barranca 5-Year Operating Cost Distribution

Taxes Debt Service Depreciation General & Admin. R&D/Quality Assurance & Prelim Expenditures Sales, marketing, & distribution

Production Costs Production Labor Raw Material

A full, 5-year perspective on Operating Costs showing distribution and relative amounts, year to year.

2012 2013 2014 2015 2016

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

Terraqua Barranca Fixed versus Variable Cost Struc-ture

Total Variable Costs Total Fixed Costs

Predictable relative increase in Variable Costs (vs Fixed Costs) as the project matures.

Mon01 Mon02 Mon03 Mon04 Mon05 Mon06 Mon07 Mon08 Mon09 Mon10 Mon11 Mon120.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

Terraqua Barranca Year 2. Production (tonnes)

Engineered Board & Lumber Powder - Oil Adsorbent Seeds Aquameal Tilapia

Aquameal is a high protein product produced by combining harvested duckweed and aquatic worms – all product is fed, locally to tilapia (and subsequently barramundi and other fish produced on site

2012 2013 2014 2015 20160

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Terraqua Barranca 5-Year Production (tonnes)

Other Extractives Stevia Engineered Board & Lumber Seeds Powder - Oil Adsorbent Tilapia Aquameal

Note the growth in production of engineered board and lumber on a weight basis. Plant extract production barely registers as to tonnage.

Mon01 Mon02 Mon03 Mon04 Mon05 Mon06 Mon07 Mon08 Mon09 Mon10 Mon11 Mon12$ 0

$ 500,000

$ 1,000,000

$ 1,500,000

$ 2,000,000

$ 2,500,000

Terraqua Barranca Year 2. Sales (Dollars)

Other Extractives Stevia Engineered Board & Lumber Seeds Powder - Oil Adsorbent Tilapia

Growth in month-to-month sales during year two is instructive. Note that the lignocellulosic product sales are the last to “take off.” This reflects relative “ease of manufacturing.”

Mon01 Mon02 Mon03 Mon04 Mon05 Mon06 Mon07 Mon08 Mon09 Mon10 Mon11 Mon12$ 0

$ 500,000

$ 1,000,000

$ 1,500,000

$ 2,000,000

$ 2,500,000

$ 3,000,000

$ 3,500,000

$ 4,000,000

Terraqua Barranca Year 5 Sales (Dollars)

Other Extractives Stevia Engineered Board & Lumber Seeds Powder - Oil Adsorbent Tilapia

Year 5 month-to-month sales appear relatively stable, with production efficiency gains accounting for the continuing increase in industrial sales. .

Tilapia Powder - Oil Ad-sorbent

Seeds Engineered Board & Lumber

Stevia Other Extractives$ 0

$ 10,000,000

$ 20,000,000

$ 30,000,000

$ 40,000,000

$ 50,000,000

$ 60,000,000

Terraqua Barranca 5-Year Sales (Dollars)

2016 2015 2014 2013 2012

This format shows the annual distribution of sales by product category in each column. It also allows a quick appreciation of the relative importance of tilapia (and, eventually, other fish).

48.71%

6.70%2.57%8.19%

15.15%

18.69%

Tilapia

Powder - Oil Adsorbent

Seeds

Engineered Board & Lumber

Stevia

Other Extractives

Terraqua Barranca Sales Distribution 2013

35.05%

10.35%1.44%

20.59%

13.51%

19.06%Tilapia

Powder - Oil Adsorbent

Seeds

Engineered Board & Lumber

Stevia

Other Extractives

Terraqua Barranca Sales Distribution 2016Another approach to looking at the relative importance of product lines during the early, immediately post- commissioning phase in 2013, versus the relatively more mature circumstance in 2016. Note that fish fillet sales have gone down to 35% of total income in 2016.

2012 2013 2014 2015 20160

50

100

150

200

250

Total G&A Labor Total Manufacturing Labor

Terraqua Barranca Labor Summary

1 2 3 4 50

50

100

150

200

250

Total Fixed Cost Labor Total Variable Cost Labor

Terraqua Barranca Labor Summary

The Company effectively reaches “full employment” during year 2013, with the balance between Fixed and Variable Cost Labor, as well as Manufacturing Labor and G&A labor thereafter remaining fairly constant through 2016.

2012 2013 2014 2015 2016

-4

-2

0

2

4

6

8

10

12

14

Terraqua Barranca After Tax Net Income

($ millions)

The Bottom Line . . . . Note that expansion into other areas of Barranca Province are not depicted in the attendant plan, or the result depicted here. Logically, the slope of the increase in profits should remain fairly constant through 2016

Mon

01

Mon

02

Mon

03

Mon

04

Mon

05

Mon

06

Mon

07

Mon

08

Mon

09

Mon

10

Mon

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Mon

12

$ 0

$ 1,000,000

$ 2,000,000

$ 3,000,000

$ 4,000,000

$ 5,000,000

$ 6,000,000

$ 7,000,000

$ 8,000,000

Terraqua Barranca Year 1 Cash Flow

First year cash in hand . . . prudent

2012 2013 2014 2015 20160

2

4

6

8

10

12

14

16

Terr. Barranca 5-Year Cash Flow ($ millions)

Five year cash in hand . . . exhilarating

Cash & short-term investments; $

1,905,452

Accounts re-ceivable; $ 20

Inventories; $ 60

Plant & Equipment; $ 14,043,359

Terraqua BarrancaYear 1. Assets

Short-term debt and notes payable; $ 1,579,741

Accounts payable; $ 35,313

Long Term Debt; $ 8,108,591

Equity; $ 6,225,245

Terraqua Barranca Year 1. Liabilities

Classic Year One Balance Sheet – no receivables, accounts payable or inventories.

Cash & short-term investments; $

2,265,923

Accounts re-ceivable; $ 2,203,670

Inventories; $ 190,471

Plant & Equipment; $ 18,222,405

Terraqua Barranca Year 2. Assets

Short-term debt and notes payable; $ 1,197,873

Accounts payable; $ 461,640

Long Term Debt; $ 12,259,613

Equity; $ 8,963,343

Terraqua BarrancaYear 2. Liabilities

Classic Year Two Balance Sheet – receivables, payables and inventories becoming apparent as production ramps up

Cash & short-term investments; $

14,703,396

Accounts re-ceivable; $ 3,449,780

Inventories; $ 2,279,757

Plant & Equipment; $ 21,766,523

Terraqua BarrancaYear 5 Assets

Short-term debt and notes payable; -$ 606,125 Accounts payable; $

2,666,356

Long Term Debt; $ 10,162,071

Equity; $ 29,977,153

Terraqua Barranca Year 5. Liabilities

Classic Year Five Balance Sheet for a successful company – debt way down, cash and retained earnings (equity) way up. Inventories creeping - now close to a par with payables and receivables.

2012 2013 2014 2015 20160

5

10

15

20

25

Terraqua Barranca Current and Quick Ratios

Current ratio Quick ratio

Two useful Liquidity indicators. The current ratio is current assets divided by current liabilities. The quick ratio is cash and receivables divided by current liabilities. Both ratios follow a healthy trend.

2012 2013 2014 2015 20160

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Terraqua Barranca Profit Ratios

Gross margin Operating margin Profit margin on total sales Return on assets

Return on equity

Profit Ratios provide good indicators of system profitability and trends in that direction. The return on equity indicator simply reflects the model’s decision to sequester profits in the “retained earnings category.” In practice, these will be distributed as dividends to stakeholders.

2012 2013 2014 2015 20160

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Terraqua Barranca Sales to Fixed Assets

The Sales to Fixed Assets ratio (Total Sales divided by Fixed Assets) provides a good indicator of fixed asset “leverage.” The trend demonstratedhere is a good one.

2012 2013 2014 2015 2016

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Terraqua Barranca Debt Ratios

Debt to total assets Debt to total capitalization Debt to equity

While the project has reasonable leverage at inception, the strong downward trend for all debt ratios is healthy. The project will be well positioned, five years hence, to attract considerably more debt for expansion purposes.

2012 2013 2014 2015 2016

-0.5

-0.3

-0.1

0.1

0.3

0.5

0.7

0.9

Terraqua Barranca Efficiency Ratios

Production Sales, Marketing & Distribution R&D/Quality Assurance General & Administration

Efficiency ratios show a healthy downward trend – albeit only marginally so. This suggests an assumption of no managerial or technological breakthroughs that might increase efficiencies dramatically. This is, we believe a prudent assumption.

2012 2013 2014 2015 20160

0.2

0.4

0.6

0.8

1

1.2

1.4

Terraqua Barranca Asset Turnover

Asset turnover, which is Total Sales divided by Total Assets shows a decline after 2014 because of retained earnings.

2012 2013 2014 2015 2016$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

Terraqua Barranca Frozen Tilapia Fillets Break Even Price ($/ton)

Break Even Price Target Price

In the latter half of 2013, the profitability of growing and processing Tilapia fish becomes immense.

2012 2013 2014 2015 20160.0

500.0

1000.0

1500.0

2000.0

2500.0

Terraqua Barranca Frozen Tilapia Filets Break Even Volume (tons/yr)

Break Even Volume Target Volume

2012 2013 2014 2015 2016$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

Terraqua Barranca Other Extractives Break Even Price ($/ton)

Break Even Price Target Price

2012 2013 2014 2015 20160.0

50.0

100.0

150.0

200.0

250.0

Terraqua Barranca Other Extractives Break Even Volume (tons/yr)

Break Even Volume Target Volume

Use of fertigation and onsite processing with most common extractive crops provides excellent margins.

2012 2013 2014 2015 2016$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Terraqua Barranca Powdered Kenaf Oil AdsorbentBreak Even Price ($/ton)

Break Even Price Target Price

1 2 3 40.0

200.0

400.0

600.0

800.0

1000.0

1200.0

1400.0

1600.0

1800.0

Terraqua Barranca Powdered Kenaf Oil Adsorbent Break Even Volume (tons/yr)

Break Even Volume Target Volume

As with all of the products selected for production in the Terraqua Barranca project, margins are extremely favorable

2012 2013 2014 2015 2016$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

Terraqua Barranca Kenaf Seeds Break Even Price ($/ton)

Break Even Price Target Price

2012 2013 2014 2015 20160

10

20

30

40

50

60

70

80

Terraqua Barranca Kenaf SeedsBreak Even Volume (tons/yr)

Break Even Volume Target Volume

As the only major kenaf seed producer in the Southern Hemisphere, the Company expect to enjoy robust sales.

2012 2013 2014 2015 2016$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

Terraqua Barranca Engineered Board & LumberBreak Even Price ($/ton)

Break Even Price Target Price

2012 2013 2014 2015 20160.0

1000.0

2000.0

3000.0

4000.0

5000.0

6000.0

Terraqua Barranca Engineered Board & Lumber Break Even Volume (tons/yr)

Break Even Volume Target Volume

With favorably priced high quality lumber almost non-existent in the Peruvian coastal market, there is room for creative pricing with this product.

2012 2013 2014 2015 2016$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Terraqua Barranca Stevia ExtractBreak Even Price ($/ton)

Break Even Price Target Price

2012 2013 2014 2015 20160

10

20

30

40

50

60

70

80

Terraqua Barranca Stevia Extract Break Even Volume (tons/yr)

Break Even Volume Target Volume

With the global market for stevia exploding, and existing margins extremely high, the Company believes it has excellent prospects to work with several major grocery retailers (Wholefoods and HEB) to develop branded products.

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$ 0

$ 500,000

$ 1,000,000

$ 1,500,000

$ 2,000,000

$ 2,500,000

$ 3,000,000

$ 3,500,000

$ 4,000,000

Terraqua Barranca Accounts Receivable

Accounts receivable shows healthy growth, reflecting a continuing growth in demand for the company’s products.

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$ 500,000

$ 1,000,000

$ 1,500,000

$ 2,000,000

$ 2,500,000

Terraqua Barranca Finished Inventories

Finished Inventories shows healthy growth, reflecting a continuing growth in demand for all the company’s signature products.

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6.00

Terraqua Barranca Wastewater Treated (MGDs)

The Company projects reasonably flat supply of wastewater until such time as the new University/Hospital complex has been completed in Eastern Barranca.

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$ 0

$ 500,000

$ 1,000,000

$ 1,500,000

$ 2,000,000

$ 2,500,000

$ 3,000,000

$ 3,500,000

Terraqua Barranca Capital Spending

Capital spending is heavily skewed towards years one and two. The Company projects that a SNIPs process will finance the infrastructure for the new University/Hospital complex WWT system in Year 4. Hence no extraordinary capital outlays are projected for that year

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$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

Terraqua Barranca Outstanding Debt

Debt shows predictable growth during the first 2 years of the endeavor, and hence a steady, very healthy decline.

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$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

Terraqua Barranca Special Project and R&D Spending

Special Projects and R&D spending is targeted at around $70,000 per month. This is adequate for site-specific developments “within” the larger Terraqua framework. Major R&D remains a province of the parent companies, Terraqua, Peru and Agriquatics.

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$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Terraqua Barranca Frozen Tilapia Fillet Sales

Tilapia fillet sales represent around 40% of Company sales. Increases through Year 3 demonstrate construction and a gradual optimization of production and associated processes. Thereafter, “flat sales” for years 4 and 5 reflect “no increase in capacity” during that period.

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$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

Terraqua Barranca Kenaf Fiber Sales

Increases in Year 5 kenaf fiber sales represent an assumption that kenaf fibers will be incorporated into SIP production, sales of which will be driven by an increase in sales of domes to the Peruvian public.

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$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Terraqua Barranca Kenaf Seed Sales

Sales of kenaf seeds fit a tiny, window immediately following the crop harvest cleaning and packaging. Exports to all parts of the world are anticipated.

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$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

Terraqua Barranca Engineered Lumber and Board Sales

Increases in Year 5 sales represent an assumption that SIP production and strut production increase significantly in year 5 – sales of which will be driven by an increase in sales of domes to the Peruvian public.

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$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

Terraqua Barranca Stevia Sales

The company expects continuing increase in both the volume and price of Stevia sales – driven, in part, by relationships now being formed with grocery retailer Wholefoods Market and HEB in Texas.

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$100,000

$200,000

$300,000

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$800,000

Terraqua Barranca Other Extractives Sales

The company expects to develop a strong comparative advantage in production, processing and sale of non-stevia plant extracts. TJVA provides a mechanism by which to continue on a steep growth path for the foreseeable future.

Year 1

Year 2

Year 3

Year 4

Year 5

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

Terraqua Barranca Sales

Other Extractives Stevia Engineered Board & Lumber Seeds Powder - Oil Adsorbent Tilapia Aquameal

Year

Do

llars

in S

ales

Combined total sales for the Company through Year 5 shows healthy growth in all sectors – notably sales of Engineered Board & Lumber. The latter will be driven primarily by internal sales within the Terraqua “family,” but it also represents an increase in sale of dome “kits” to outside buyers in years 4 and 5.

2012 2013 2014 2015 2016 2017$0.000

$2.000

$4.000

$6.000

$8.000

$10.000

$12.000

$14.000

Terraqua Barranca Share Prices

Share prices reflect a “3x” after tax earnings for 2014 – 2016. The 2017 price reflects a “probable market valuation” in the event the company should have an opportunity to do an IPO. In reality this is unlikely to happen. The Company intends remaining a “cash cow” for the foreseeable future.