1 of 33

Catalyst Recycling and Lanthanum Supply

2 of 33

Rare Earth Elements

Critical components for various industries

3 of 33

Fluid Cracking Catalyst

(FCC)

Lanthanum

(La)

Lanthanum in FCC

4 of 33

Lanthanum (La) in FCC Catalyst

Global FCC catalyst consumption

725,000 mt

Average La composition

2.5%

La used in FCC catalysts

18,125 mt

Market price of La

$4,800 /mt

Market value of La in FCC catalysts

$87 million

*1 metric ton (mt) = 2,200 lbs

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Catalyst

Manufacturer

Refinery

Current Industry Model

6 of 33

Refinery

Landfill

Current Industry Model

7 of 33

Catalyst

Manufacturer

Refinery

Landfill

Current Industry Model

8 of 33

2006

2007

2008

2009

2010

2011

2012

2013

2014

0 mt

5,000 mt

10,000 mt

15,000 mt

China’s La Export Quota

China supplies 90% of the world’s Lanthanum

9 of 33

Catalyst Recycling and Lanthanum Supply

10 of 33

Refinery

Catalyst

Manufacturer

Carla's Industry Model

11 of 33

Landfill

Refinery

Carla's Industry Model

12 of 33

Catalyst

Manufacturer

Carla's Industry Model

13 of 33

Catalyst

Manufacturer

Refinery

Carla's Industry Model

14 of 33

FCC Catalyst Manufacturers

15 of 33

Business Model

Spent

Catalyst

Patented

Process

Extracted

Lanthanum

Catalyst

Manufacturer

$4,800

16 of 33

Business Model

Spent

Catalyst

Patented

Process

Residual

Material

Cement

Manufacturer

$45

17 of 33

108 U.S. Refineries With FCC Units

37 refineries

18 of 33

Regional FCC Units

19 of 33

Initial Refineries

ExxonMobil Refining

& Supply Co.

​

858.20 mt�(FCC Catalyst)

Valero Refining Co.

​

281.41 mt�(FCC Catalyst)

Deer Park Refining

Ltd. Partnership

​

279.41 mt�(FCC Catalyst)

Houston Refining

Ltd. Partnership

​

439.08 mt�(FCC Catalyst)

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Financial Projections

Year

FY1

FY2

FY3

FY4

FY5

Refineries

4

10

18

31

50

Catalyst Supplied

9,000 mt*

38,250 mt

72,250 mt

127,000 mt

207,400 mt

Revenues

$1.3m

$6.3m

$11.8m

$20.8m

$33.9m

Gross Margin

69%

70%

70%

70%

70%

EBITDA

$(100k)

$3.0m

$6.4m

$12.2m

$20.5m

*Based on partnering with 4 refineries in Year 1

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Revenue Growth

$30 million

$25 million

$20 million

$15 million

$10 million

$5 million

$0

Year

Y1

Y2

Y3

Y4

Y5

Refineries

4

10

18

31

50

Revenue

EBITDA

22 of 33

Capital Needs

CAPEX

$500K

Cash

Burn

$700K

R&D

$100K

$1.3

million

​

23 of 33

Our Team

Alex de la Fuente

CEO

Dakota Fontenot

Jimena Hernandez

Eugenia Williams

Bongky Prahardja

Dr. Allan Jacobson

Inventor

24 of 33

Advisors

Dr. Julie Francis

FCC Technology Director

Collin Leslie

President

Bill Kelley

Product Manager

Jason Smith

FCC Marketing &

Product Manager

Thomas Belgeri

Accountant

Leonard Walther

Refining Additive Chemist

Adrian Gonzalez

Operations Superintendent

Rafael Fernandez

Plant Operations

25 of 33

Catalyst Recycling and Lanthanum Supply

26 of 33

Manufacturers: Market Share

Appendix: I

21%

15%

32%

(152,250 mt FCC catalyst)

(3,806 mt Lanthanum)

(108,750 mt FCC catalyst)

(2,719 mt Lanthanum)

(5,800 mt Lanthanum)

(232,000 mt FCC catalyst)

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FCC Catalyst Composition

Appendix: II

Alumina-silica

95.00%

Lanthanum

2.50%

Clay (Titanium)

2.00%

Iron

0.50%

Sodium

0.50%

Nickel

0.01%

Vanadium

0.01%

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Revenue Per Truckload of Catalyst

Appendix: IV

​

Lanthanum

Other Material

Weight composition

2.5%

97.5%

Market price (per metric ton)

$4,800

$45

Value

$120

$43.88

Total FCC catalyst value

$163.88 /mt

($4,096.88 /truckload)

Revenue composition

73.23%

26.77%

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Break-Even Analysis

Appendix: V

Year

1

2

3

4

5

Fixed Exp.

1,034,733

1,461,733

1,874,733

2,447,733

3,353,733

Gross Margin %

69%

70%

70%

70%

70%

Break-even Rev.

1,499,613

2,088,190

2,678,190

3,496,761

4,791,047

Value per

catalyst truckload

4,097

4,097

4,097

4,097

4,097

Break-even truckloads

366

510

654

853

1,169

30 of 33

Lanthanum Price Fluctuations

Appendix: III

$100

$90

$80

$70

$60

$50

$40

$30

$20

$10

‘01

‘02

‘03

‘04

‘05

‘06

‘07

‘08

‘09

‘10

‘11

*Source: Business Insider

$ Per kg

31 of 33

Lanthanum Sales

Appendix: VI

​

M1

M2

M3

M4

M5

M6

M7

M8

M9

M10

M11

M12

Year 1

​

​

​

​

​

​

​

​

​

​

​

​

= Able to sell Lanthanum

= Unable to sell Lanthanum

32 of 33

DCF Valuation

Appendix: VII

​

EBITDA

Year 1

(101,111)

Year 2

3,019,083

Year 3

6,420,002

Year 4

12,178,229

Year 5

20,489,250

Discount Rate

80%

NPV

4,220,898

*$1.3 million raise = 30.8% equity

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Income Statement

Appendix: VIII

Year

1

2

3

4

5

Revenue

1,351,500

6,357,375

11,810,250

20,815,500

33,940,125

Cost of Goods

417,878

1,876,559

3,515,515

6,189,538

10,097,142

Gross Profit

933,622

4,480,816

8,294,735

14,625,962

23,842,983

Gross Margin %

69%

70%

70%

70%

70%

Operating Exp.

1,034,733

1,461,733

1,874,733

2,447,733

3,353,733

EBITDA

(101,111)

3,019,083

6,420,002

12,178,229

20,489,250

Depreciation

29,780

32,758

32,758

49,137

61,421

Income Tax

-

1,045,214

2,235,535

4,245,182

7,149,740

Net Income

(130,891)

1,941,111

4,151,708

7,883,910

13,278,089