KARR GROUP OF COMPANIES

ONALASKA, WA (ENERGY MILL) PANORAMA CITY, CA (CORPORATE OFFICE)

SUSTAINING HUMAN LIFE WITH BIOCHAR

info@karrgroupco.com 805-340-2484/818-929-6332

___________________________________________________________________________ Basic Needs for Sustaining Human Life • Air

– Global warming. 5 million acres of forest fires in 2015 emitted as much air pollutants in he air as all industrial pollution combined

– Toxic air contaminants from chemical fertilizer usage

• Food (agriculture) – Use of prolonged chemical fertilizers resulted in loss of soil carbon – Life underneath the soil is all but dead (yes, there is life below the soil, worms,

microbes, fungi) – Nitrates and phosphates run offs, in efficient absorption of fertilizers – Compromise of plant immune system, plants more prone to disease and pests

attack – Toxic chemicals being absorbed into our fruits and vegetables

• Water – Loss of soil carbon results in water run off, water not being absorbed to charge

the aquafers – Loss of underground water supply – Chemical contamination form excessive chemical fertilizer usage – Nitrates and phosphates run offs have created large dead zone water bodies in

Mississippi –Delta region and around the world – Cancer trains in India – contaminated underground water supply

___________________________________________________________________________ Do We have a Solution in Hand? • Yes, we do have a very low cost and workable

solution in hand……….Large scale cost-effective biochar production and agriculture application

• Nature produced biochar (carbon) over thousands of year of processing, we produce it in 40 minutes through our patented process

• Karr has an operating plant in Onalaska, WA operating 24/7 producing 12,000 tons/yr biochar from green waste derived from sustainable forest residuals/waste wood

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How Biochar addresses Human Existence Problems of Air, Food, and Water

• Air – Biochar use in agriculture is carbon negative, each lb

of biochar applied to soil results in 3.67 tons of reduction in green house gases (GHG), (almost equal to GHG emissions from one car) which cause global warming

– Biochar reduces chemical fertilizer intake by 50% initially and ultimately eliminating it. Significant reduction in toxic air contaminants caused by chemicals spray

– Reduction in pesticides use, result sin reduction in air borne pesticide chemicals

– Better quality of life for people around agriculture fields

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How Biochar addresses Human Existence Problems of Air, Food, and Water

• Food – Biochar increases crop yield up to 30% – Biochar increases plant immunity to fight

diseases…healthier plants – Biochar results in reduced fertilizer and pesticides

usage, less toxins n the fruits and vegetables – Biochar builds carbon and life back in the soil causing

crop residue to break down in to usable and digestible carbon (food) for plants (we all intake carbon in our food for energy and growth, plants do too)

– Biochar provides readily available food and water to plants near its root on 24/7 basis, minimal run off

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How Biochar addresses Human Existence Problems of Air, Food, and Water

• Water

– Biochar application results in 30-40% reduction in irrigation water usage…..60% of water used in CA goes to agriculture irrigation

– Biochar application results in substantially reduced water run off and build the aquafer level back up, providing long term water supply and storage for agriculture and humans (loss of carbon in soil result sin water run off and depletion of water underground)

___________________________________________________________________________ Where do we go from here? • It is abundantly clear that we have an immediately available, cost-

effective solution in hand to sustain human life on a long term basis • 290 million acres of U.S. Crop Land • 21.6 million tons/yr fertilizer usage • 396 million tons of biomass from U.S. Forest land available for

biochar • 132 million tons biochar possible (will reduce global warming gases

equal to 105 million cars) • 61 million acres of crop land/yr can have biochar applied, in 5 years,

all crop land can be covered • We have enough biomass to meet the demand and forever change

the way we as humans live • Government and industry must get in sync and understand this

viable solution and put enough resources to make it happen as soon as possible

• To utilize all biomass, 10,000 Karrbonizers will be needed nation wide, at a total cost of $30 billion (0.8% of U.S. annual budget)

___________________________________________________________________________ Is it Economically Sustainable? • Absolutely yes. Here is how the economic model works…. • Results:

– cut the fertilizer usage by 50% (NPK) resulting in savings of $100/acre, $300,000 total

– Increased crop yield by 33% (20-30 bushels/acre increase in yield) $600,000 increased revenue or $200/acre (pre application 35 bushels/acre)

– Total income: $900,000/year – Total cost = $1.2 million – Payback – 1.33 years – If hypothetically, if it was applied to tomato field, income will be

$6,300,000/yr against an investment of $1.2 million (assuming $10,000/acre production income)

– Increased production would also mean increased revenue from USDA crop subsidies

– In CA, additional savings of $300/acre will result from the reduction in irrigated water (basis $500/acre ft, 2 acre-ft/acre usage, 30% reduction in water usage)

___________________________________________________________________________ What is Biochar • Biochar is 80% carbon content derived from

wood without the addition of any external chemicals

• Biochar has large number of cavities which take in water, fertilizers, microbes for later use by plants

• Biochar is applied approx. 4 inch below the soil and closer to the root mass, where the life can be found underneath the soil

• Biochar is not coal carbon which is totally non porous and has not cavities

• Biochar is totally natural, organic, and completely harmless to the soil and humans

___________________________________________________________________________ Biomass Sources • Forest slash piles

• Forest tree tops

• Forest thinnings

• Forest dead or unhealthy trees

• Agriculture residues, wheat straw, rice straw, walnut shells, pistachio shells, macadamia nut shells, oil seeds/fruits residue, corn husk, bagasse, industrial biomass (agave, corn, hops) other crop residues

• Sawmill residues

___________________________________________________________________________ Karr Technology

• Karrbonizer 6T System Karr Group has developed and is operating a unique and innovative closed

loop patent pending technology to process raw biomass into biochar with high yields (Karrbonizer 6T System).

Karr’s technology is the only of its kind that does not produce harmful byproducts and is safe for the environment. Karr’s patent pending technology crack bio oil in its Karrbonizer and convert it into syngas

Biochar in the soil remains for many years Continuous process, 24/7 operation High yields and process efficiencies Zero discharge, closed loop. No waste bio oil production Ability to handle moist material up to 55% moisture in input Finer grade compost made with small amount of biochar added to biochar Three products: Karrchar – IBI certified , Karr Vinegar (pesticide and

microbial food, wood preservative), Karrgas (thermal or electrical use)

___________________________________________________________________________ Karr’s Production Facility (Onalaska, WA)

___________________________________________________________________________ Biochar Spec Sheet

___________________________________________________________________________ IBI Certification • International Biochar Initiative Certified (IBI)

– Merit given to biochar producers who exceed rigorous quality standards

– Karr is currently the only commercial producer with this certification

___________________________________________________________________________ • Mahesh Talwar – Chief Executive Officer

– Designed, built, owned, and operated Nation’s first biodiesel plant in yr 2001 and successfully ran it for three years before selling it. Now there are over 1000 biodiesel plants in the country.

– Award from U.S. President Bill Clinton and California Governor, Pete Wilson for “Environmental and Economic Balance”.

– Sr. Design Engineer with Parsons Corporation designing oil & Gas production plants, refineries, and implementation. Currently owns an engineering, environmental, and manufacturing business focused on clean fuel and diesel engine emissions reduction technologies.

– M.S. in Chemical Engineering

– Specializes in building commercially successful products from innovative ideas

– Worldwide implementation of conversion of diesel engines to run on natural gas

• Ajay Keshap, Manager, Business Development and Strategic Planning

– Sales and Marketing professional worked at Hewlett Packard and Oracle in Sales Management, 15 years

– Holds patent on MIDI guitar technology, 1987

– Designed, invented, and implemented an efficient back office management software and ISO 9001 2008 certified Hospitality system to manage 26 Denny’s restaurant assets resulting in substantial cost savings

– Senior Executive at ISO 9001 2008 certified company E2 Solutions

– Specializes in turnaround of marginal companies to profitable ventures. Strong management and team building skills

– Within a span of two years, successfully expanded from owning a franchise of five Denny’s to 26 Denny’s in the State of Washington with annual revenue of over $37 million

– Excellent financial management to assure cost controls and profitability

– Worked with major financial institutions, high net worth individuals, and venture capital firms to raise $13 million in financing for the acquisition of 18 new Denny’s restaurants

– Accountability and motivation of employees a key strength as well as delivering regulatory compliance in a tough industry like food service

• Anuj Wadhawan – Chief Financial Officer

– Extensive experience in managing global business models to increase value, maximize investment return and operational performance for public and private companies.

– Key areas of expertize; Strategic planning, Cash management, Budgeting/Forecasting, Financial / Cost accounting, Internal Financial Controls, Mergers and Acquisitions, Investor & Banking Relations, Public/Private Equity & Debt Financing (IPO/PIPE), SEC Relations, Sarbanes-Oxley Compliance and Information System Design and Implementation.

– Led broad based teams for due diligence and participated in successful negotiation of over 22 acquisitions in various parts of the world ranging from $2.0 million to $150.0 million.

– Successfully negotiated and raised over $150 million in private placements and in public offerings of common stock

– Successfully scaled up companies from $10.0 million to $600 million + delivering increased profitability.

• Kevin Talwar – Chief Trader

– Worked as clean fuels trader with Chemoil Corporation

– Owned and operated several new business ventures before joining Chemoil Corporation

– Traveled worldwide to learn different cultures

• James Brown, COO

– 18 years working in Timber Mills.

– 14 years working in wood pellet mills.

– Director of Operations for three pellet mills

– Excellent knowledge of mill residuals and forest products

– Worldwide contacts in sales

Management Team

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• Karr currently owns and operates a commercial 12,000 tons/yr biochar production facility in Onalaska, WA, utilizing biomass waste from timber mills as feed stock

• Karr funded the entire development utilizing its own funds (over $6 million to date), with no government grants

• Can handle all types of biomass waste • Each Karr’s Karrbonizer can remove 66,000 tons of GHG which equates to GHG

emissions of over 16,000 cars • Very low footprint of production process • Continuous process, 24/7 operation • No other technology in the world can claim production of biochar without

waste bio oil co product (Bio oil produced gets converted to Karrgas through our patented process)

• Developed, designed, and built right here in the U.S.A. • World wide application – can address palm plantation fires in Indonesia (some

estimates put it as contributing a good portion of global green house gases emission), can end deforestation in many African countries by utilizing agriculture waste. Karr has received interest from eight countries so far.

Karr Capabilities

https://www.americanforests.org/a-carbon-conundrum/

___________________________________________________________________________ U.S. Locations for Large Scale Rollout of Karrbonizers

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• Forest Fires - Forest fires are caused by drought, overgrowth, pest infestation, burning

of slash piles, etc. - In 2015, over 10 million acres of forest land burned due to forest fires

(primarily in Alaska, CA, OR, WA), which resulted in $2.1 billion worth of fire suppression costs

- Green House Gases (GHG) per acre of wildfire equate to: 75 tons/acre; total GHG emitted due to forest fire in 2015: 750 million tons, equates to annual emissions produced by 180 million cars (average 4.16 tons of CO2 per year emitted per car)

– Average 5 million acres burned per year (primarily in Alaska, CA, OR, WA), costing $1.8 billion in fire suppression costs and emitting 376 million tons of GHG, equate to annual emission produced by 90 million cars

Current Situation

https://www.nifc.gov/fireInfo/fireInfo_documents/SuppCosts.pdf http://www.predictiveservices.nifc.gov/intelligence/2015_Statssumm/fires_acres15.pdf http://www.farmlandinfo.org/statistics/california https://www.americanforests.org/a-carbon-conundrum/ https://www.safnet.org/fp/documents/helms_questions.pdf https://www.nifc.gov/fireInfo/fireInfo_statistics.html

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• California drought, classified as “Exceptional” – In 2015, California drought impacted 25 million acres of farmland,

resulting in a $1.5 billion in loss of crop, and loss of nearly 19,000 jobs due to rising costs of farming.

• Use of chemical fertilizers – Over decades with the use of chemical fertilizers, soil organic

matter (SOM) has depleted as high as 50% in agricultural land – 1% drop in SOM reduces 20,000 gallons/acre of water retention

capacity in soil, 50% reduction in SOM reduces 1,000,000 gallons/acre of water retention capacity in soil

– California has 25 million acres of farm land. A 50% reduction in SOM reduces 25 giga gallons of water retention capacity

– Over a period of time with the loss of aquifers, irrigation wells depth is 1,000 ft from 300 ft

Current Situation cont’d

http://www.carbonbrief.org/paris-2015-tracking-country-climate-pledges https://www.safnet.org/fp/documents/helms_questions.pdf http://www.capradio.org/articles/2015/06/02/california-drought-harsher-impacts-for-ag-industry-in-2015/

___________________________________________________________________________ 2015 Fire Data

• Acres of wildfire burned: Oregon,

Washington, and Idaho - 3 million

California - 1 million

Alaska - 5 million U.S.A. Total - 10

million

http://www.predictiveservices.nifc.gov/intelligence/2015_Statssumm/fires_acres15.pdf

___________________________________________________________________________ Karrbonizer System Benefits

• 2015 Fire suppression costs - $2.1 billion

• 2015 Drought related costs (in California alone) - $2.7 billion

• 2015 Job loss related to drought (in California alone) – 19,000

• Significant improvement in soil condition resulting in increased water retention and yields

• Biochar will reduce the need for chemical fertilizer use therefore promoting organic farming

• Cost per Karrbonizer system - $3.5 million

• Cost of 569 Karrbonizers - $2 billion

___________________________________________________________________________ Biochar Trials in Agriculture Application

• Applied supercharged biochar to soybean, corn, and Milo field, 3,000 acres in Midwest

• Biochar was inoculated with microbes and fungi mix at the production line

• Soil has almost extremely low carbon, mostly chemical fertilizer fed like hydroponic

• Much lower application rates of biochar possible when inoculated, 1 ton/acre instead of 8-12 tons/acre commonly published, easily affordable

___________________________________________________________________________ Biochar in Agriculture Application

• Results:

– cut the fertilizer usage by 50% (NPK)

– Increased crop yield by 33% (20-30 bushels/acre increase in yield)

___________________________________________________________________________ Summary

• We are headed in the wrong direction as a society – Nitrates and phosphates run off have created dead water zones of

over 100 sq miles in Mississippi-Delta – Loss of SOM – Climate shifts, fires, and drought are real and measurable for our

country – We need large scale commercial production of good quality biochar

that is highly active, to reduce water usage, cut down chemical fertilizer usage, and build life in the soil for healthy agriculture and reduced run off

– Karr solution provides this in a tested and proven model – Financial economic model prove that the operation can be self

sustained – Large scale demonstrations through out the country will need

Government-industry partnership initially – Need all agencies to work together to figure out the best way for a

public private partnership

___________________________________________________________________________ Karr Group of Companies

• Website: www.karrgroupco.com

• Contact: Mahesh Talwar 360-978-4449 or 805-340-2484

• Email: mahesht@karrgroupco.com