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1 Company Profile GLG Life Tech Corporation January 2012

GLG Company Profile-2012 January New

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Page 1: GLG Company Profile-2012 January New

1

Company Profile

GLG Life Tech Corporation January 2012

Page 2: GLG Company Profile-2012 January New

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Forward-Looking Statements

Page 3: GLG Company Profile-2012 January New

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Contents

Company Background

Stevia Ingredient Business

2012 – Year of GLG Opportunities

AN0C Consumer Products Business

Company Financials

Page 4: GLG Company Profile-2012 January New

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Company Background

Page 5: GLG Company Profile-2012 January New

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GLG Life Tech Corporation

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Complete Seed to Shelf Vertical Integration

Patented Seeds - ease and lower cost in scaling agriculture vs seedling approach, and consistency in taste

Leaf Cultivation - 200,000 farmers contracted across 10 major growing regions in China

Advanced Manufacturing Know-how - patented process and separation methodologies and advanced extraction technology

Innovative Products – comprehensive product line-up including high-purity extracts, turn-key solutions and pre-mix formulations

AN0C Consumer Products – All-natural zero-calorie food and beverage products. Initial products to launch across 6 major beverage categories, plus functional drinks and tabletop sweeteners.

Page 7: GLG Company Profile-2012 January New

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Stevia Ingredient Business

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At the Leading Edge of Innovation

Already granted or submitted patent applications for:

Huinong One (H1)

60% Reb A content in plant leaf

Huinong Two (H2)

66% Reb A content in plant leaf

22% more leaf per acre (vs H1)

Huinong Three (H3)

76% Reb A content in plant leaf

46% more leaf per acre (vs H1)

Advancing stevia through natural propagation

Seeds & Leafs Patents

Key Product Innovation

RebPureTM (RA) PureSTVTM (STV) Reb C

Process Technology Patents

Already granted or submitted patent applications for: Reb A extraction Reb B separation methodology Reb C separation methodology Reb D separation methodology Steviolbioside separation methodology Process for producing a natural sweetener

composition (BlendSureTM) Production of high-volume, high-purity

STV Environmentally-friendly waste water

treatment Leaf processing extraction device

AN0CTM Dream Sweetener Line BlendSureTM (RA + STV)

GLG has received 4 Letters of No Objection from the FDA on core finished products.

4 key PCT filed in 2010/2011 to further protect GLG intellectual property rights internationally.

Page 9: GLG Company Profile-2012 January New

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Huinong Series of Non-GMO Patented Seeds

Huinong 3 (H3)

76% rebaudioside A content in the leaf, a 26% increase from the H1 strain

46% more leaf per acre than H1 strain

Available for planting in 2012 growing season

Huinong 4 (H4)

76% rebaudioside A content in the leaf

16% more leaf per acre than H3

Available for planting in 2012 growing season

To play role of parents in the advancement of next generation of seeds

High Reb-A Content High STV Content

Huinong 5 (H5)

70% stevioside content in the leaf

Leaf yield between H2 and H3 strains (between 22% to 46% more leaf per acre than H1 strain)

Believed to be the highest STV seed available in the world today

To help reduce production costs of GLG’s Blendsure™ line of products

Naturally bred for high Reb-A and STV content

GLG Patented High RA Leaf

GLG Patented High STV Leaf Other Stevia Strains on the Market

22.9% 24.2% 28.2%35.7%

61.8%68.0%

76.0% 76.0%70.0%

0%

20%

40%

60%

80%

2009 India Leaf 2009 China

Common Leaf

2009 Paraguay

Leaf

2009 Canada

Leaf

2009 Huinong 1 Huinong 2 Huinong 3 Huinong 4 Huinong 5

Page 10: GLG Company Profile-2012 January New

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Our Competitive Advantage: Secure Leaf Supply

10% higher rebaudioside A content than the previous generation (H1).

the H2 strain also generates 22% more leaf per acre. GLG has upgraded its varieties company wide and has

utilized Huinong 2 at all 10 of the Company’s growing bases in China for the 2011 crop season.

20% greater processing efficiencies expected 100% of crop expected for harvest in 2011 has been

planted using Huinong 2 seeds.

GLG holds 10- and 20-year agreements in multiple provinces for exclusive and protected stevia growing areas

Growth and supply of 100% own leaf needs using GLG proprietary plant variety – no dependence on common market leaf

Agricultural expansion continues and planting now spans across 10 growing areas

Shandong

Jiangsu

Anhui

Huinong 2 Patented Seeds

76% rebaudioside A content in the leaf, a 26% increase from the H1 strain

estimated 600kg of additional stevia leaf harvested per acre, a 46% increase over H1, which improves land and resource utilization

estimated 40% overall leaf cost improvement expected as a direct result of the increased RA content and increased leaf yield

Greater processing efficiencies expected On track for use in 2012/13

Huinong 3 Patented Seeds

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Our Competitive Advantage: Technology

Patented high-purity stevia extraction (China and International PCT)

Capable of producing all stevia extracts with purity levels up to 99% (RA, STV, RC, etc)

Low cost production

Extraction and Refining

GLG Qingdao Facilities

Annual leaf processing capacity is currently 41,000 metric tonnes. Currently, our Runhai campus has 60 acres and Runyang campus is 80 acres .

Currently our refining and purification facilities have a capacity of 3,000 metric tonnes. Phase I of our Runhao campus occupies 60 acres but is scalable to 215 acres, and our Runde campus currently occupies 70 acres.

All sites are fully third-party (SGS) certified for GMP, ISO, HACCP, HALAL, and Kosher

Page 12: GLG Company Profile-2012 January New

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Our Competitive Advantage: Capacity

Current Leaf Processing Capacity

Runde Runhao

1,000

2,000

200,000 farmers contracted across 10 major growing regions in China

Primary Processing

Secondary Processing

Leaf Growing

41,000 MT

MT

MT

Intermediate Products,

such as RA60

High-grade Extracts, such as

BlendSure, PureSTV and

RebPure

Page 13: GLG Company Profile-2012 January New

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Quality control and food safety is our top priority

All facilities meet and exceed global GMP standards

Major multinational agricultural, food and beverage companies conduct regular audits, including Cargill, Nestle, Pepsico, and others

Facilities are certified on scheduled basis for:

ISO9001:2008

Halal

Kosher

SGS, the world’s largest control and inspections authority

Our Trust Providers

“stevioside”

“rebaudioside A”

“RebpureTM”

“PureSTVTM”

“steviol glycosides with rebaudioside A

and stevioside”

“BlendSureTM”

“rebaudioside A” “RebpureTM”

4 FDA Letters of No Objection / GRAS

Page 14: GLG Company Profile-2012 January New

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Our Facilities

Shandong

Jiangsu

Anhui

Runhao Qingdao, Shandong Purification/Refining

Runde Qingdao, Shandong Purification/Refining

Runyang Dongtai, Jiangsu Primary Extraction

Runhai Mingguang, Anhui Primary Extraction

Bengbu Bengbu, Anhui Plant Research Centre

Page 15: GLG Company Profile-2012 January New

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Our Facilities

Page 16: GLG Company Profile-2012 January New

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GLG’s Stevia Extract Products

Steviol Glycoside Content

Reb A +STV Blend Available in

50%-80% Reb A content

Available in ≥95 and ≥ 97% Reb A content

Available in ≥95 and ≥ 97%

STV content

80% Reb A content

30% - 60% Reb A content

Sweetness Factor vs Sucrose *

250x 300x 250x 250x 250x

Heat and pH Stable Yes Yes Yes Yes Yes

Total Steviol Glycosides (TSG)

≥ 97% ≥ 97% ≥ 97% ≥ 95% ≥ 95%

Available Form

Industrial ingredient or formulated

Industrial ingredient or formulated

Industrial ingredient or formulated

Industrial ingredient or formulated

Industrial ingredient or formulated

GRAS / FDA Letter of No Objection

Yes Yes (2) Yes No No

* approximately

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2011 – The Year of Industry Challenges 2012 – The Year of GLG Opportunities

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General Competitive Conditions in the Global Stevia Industry

Main challenge has been the difficulties that food and beverage companies are experiencing in formulating with stevia to develop a good tasting product

Different levels of players entered the industry: Vertically integrated, Partially integrated (primary or secondary processing only), and Distributors/Brokers

Management’s assessment is stevia supply > demand in 2011

As a result, pricing is very competitive on large volume opportunities

Current

European Commission recently approved the use of steviol glycosides as a sweetener in the European market

New markets expected to open up soon (India)

US consumer products sweetened with stevia continue to expand. According to a August 2011 Mintel study, stevia products in the US is expected to reach nearly $1.2 billion in 2013, up from $439 million in 2010.

According to Datamonitor, for the 12 months to September 2011, more than 300 stevia-sweetened products launched in the US and 630 globally

Going Forward

Page 19: GLG Company Profile-2012 January New

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GLG’s Leadership Position in the Industry

AN0C Stevia Solutions addresses the key issue of formulation challenges experienced by food and beverage companies with stevia

AN0C Stevia Solutions has launched key innovative products to provide complete solutions (Dream Sweetener, Pre-Mixes)

GLG’s long term strategy in agriculture is now paying off with the first successful harvest of our H2 leaf and H3 leaf this year. In 2012, GLG moves to a significantly lower cost structure with its patented H2 and H3 leaf, and will be well-positioned to drive industry pricing

GLG’s new international stevia business sales team established in Vancouver, replacing the US-based sales team which did not perform to expectations in 2011. The new sales and marketing team will drive international sales and support distribution partners in the US, Mexico, South America, Europe, Middle East and India. GLG has doubled the number of their distributors and have added sales agents in some key markets to drive sales.

Low-Calorie Healthy Sugar opportunity in China expected to expand in 2012

GLG is positioned to benefit from the industry’s explosive growth anticipated in 2012

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AN0C Stevia Solutions has solved many of the traditional problems associated with formulating with stevia.

Provides technical help on stevia or actual food and beverage formulations to develop zero or low calorie naturally sweetened food and beverage products

Leverages GLG and AN0C’s know-how in creating different types of BlendSureTM to develop the best taste

AN0C Stevia Solutions Providing Formulation Solutions to International Customers

Providing Turnkey Solutions to Partners Worldwide

Stevia Solutions team to drive sales with global customers

AN0C Stevia

Solutions

AN0C Food & Beverage

Formulation Expertise

GLG Stevia Separation/

Extraction Technical Know-how

Formation of AN0C Stevia Solutions

Combining stevia technical know-how

with formulation expertise

Launch of first product “Dream

Sweetener”

Turn-key formulations for zero or low-calorie

products

Sent out samples of Dream Sweetener and AN0C products to F&B companies in US, EU, Mexico, and South America

Demonstrated aftertaste problem solved

Direct F&B company visits

Further product sampling, price

quotes and business discussions

July August September /October

August/ September

Projects and product trials

Product formulation & taste discussions,

and product prototypes submitted

Current

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Tastes like cane sugar, is zero-calorie and has no aftertaste

Provides a consistent sweetness for much easier formulation for a food and beverage company

Easy to handle, unlike typical high-purity stevia extracts which come in a light powder form

Can reduce the time-to-market for food and beverage companies since the major formulation challenges (aftertaste & consistency of taste from batch to batch) with high-purity stevia extracts have been addressed through our innovative formulations

Compares favorably to the cost of cane sugar and is more cost efficient at large volumes

Dream Sweetener™ Advantages

AN0C Dream

Sweetener™ Series *

x10, x30, x60, x100 An all-natural zero-calorie

sweetener available in varying

levels of sweetness

Proprietary blend of natural sweeteners (all FDA GRAS certified)

RA STV

(FDA GRAS certified)

* patent application filed with SIPO in China, with PCT application for International patent protection to follow

The Dream Sweetener™ Product Line

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AN0C Low-Calorie Health Sugar

Advantages

Low-calorie

Tastes like sugar

Easy to directly replace sugar or any other artificial sweetener

Formulating food products much easier

Reduced calorie solution to 1/3 of cane sugar ideal for use in food and beverage products

Benefits

Relieve sugar shortage issue

Ability to bring low-calorie products to the market quickly

Page 23: GLG Company Profile-2012 January New

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Dream Sweetener Closely Replicates Sugar Taste Profile

AN0C can help make formulating your beverage and food products much easier.

A Comparison of AN0C Dream Sweetener to Sugar

Source:

Page 24: GLG Company Profile-2012 January New

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How Our Products Fulfill Customer Needs

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AN0C Pre-mixes Our simple to use and fast-to-market pre-mixes contain either a low-calorie or zero-calorie stevia sweetener and a flavour pack that can be easily added to any beverage or food products.

Advantages

Lower or zero calorie Easy to handle and use Turn-key solution for fast-to-market opportunities (complete ready-to-use recipe)

Zero-calorie green tea – AN0C Stevia Solutions will send two packages

AN0C Dream Sweetener

AN0C Green Tea flavour package

Beverage companies just add water and bottle for their own branded product

Low-calorie carbonated cola soft drink – AN0C Stevia Solutions will send two packages

AN0C Low-Calorie Health Sugar

AN0C flavour package for a cola beverage

Beverage companies just add water and carbonate, then bottle for their own branded product

Examples of Pre-mix Solutions Examples of Pre-mix Applications

Customized turn-key solutions, like pre-mix packages that contain a low or zero-calorie sweetener and a flavour package, can be used in a wide variety of beverage and food products:

Foods

Dairy (yogurt, ice cream)

Baked (cookies, biscuits, breads, cakes)

Dressings (salad, condiments)

Canned Foods (fruits, meats)

Candy (gum, chocolate)

Beverages

Teas

Carbonated Soft Drinks

Dairy

Juices

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Leaf Improvements from China Common Leaf Through GLG Proprietary Strains

For both consistency of taste in a stevia extract and cost of stevia extract Leaf accounts for over 60% of the cost of stevia extract products Our patented seeds allow

ease and lower cost in scaling agriculture vs seedling approach consistency in taste of stevia sweetener GLG to offer sustainable lower pricing in the industry

To produce one metric tonne of RA80 the approximate required amounts of different varietal leafs are:

The most important part of the supply chain to control is the Leaf

4.0

2.52.0

1.5

0

1

2

3

4

5

China Common Leaf Huinong 1 Huinong 2 Huinong 3

Metric Tonnes

RA Content in Leaf

30%-40% 60% 66% 76%

Cost Index* 100 62.5 50 37.5

* Index assumes constant cost for leaf and processing

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Growing Global Distribution Network

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AN0CTM Consumer Products Business

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AN0CTM Consumer Products

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Improving Welfare of Farmers

Health

Agriculture Business

Three Important Stakeholders for the AN0C Opportunity in China

Over USD $21+ billion addressable market size across 6 major beverage categories, 2 functional beverages and tabletop products

Growing operations with over 200,000 farmers in 10 growing regions, and expanding

Providing healthy beverage and food

alternatives to 1.3 billion consumers, especially those with diabetes or obesity

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AN0CTM

National Coverage

As of June 2011, AN0C was in approximately 6,000 KA stores and over 59,000 traditional retail outlets.

AN0CTM

also has 13 regional sales offices

AN0C is the only national all-natural zero calorie beverage brand in China.

According to a recent brand survey: >11% of respondents

recognized the AN0C brand when placed alongside other leading brands

‘zero-calorie’ and ‘non-fattening’ were the key messaging remembered most about the AN0C brand

When given the choice to buy one brand of tea, 11% choose AN0C

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Leverage Success of AN0C Ready-to-Drink Teas and Vitamin Enriched Waters for Future Product Launches

Vitamin enriched waters launched in August into a

relatively new beverage category in China, which

AN0C expects will need more time to grow and gain

traction

New RTD tea bottles redesigned to differentiate and stand out from the pack: New Bottles, New Packaging and an Improved Taste

Zero-calorie tabletop sweetener launched in October

Upcoming products include:

herbal tea children’s drinks carbonated soft drinks functional drinks juice milk

Page 33: GLG Company Profile-2012 January New

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Key Contacts