A preliminary prospectus and an amended and restated preliminary prospectus containing important information relating to the securities described in this presentation has been filed with the securities regulatory authorities in eachof the provinces and territories of Canada. A copy of the amended and restated preliminary prospectus, and any amendment, is required to be delivered with this presentation. The amended and restated preliminary prospectus isstill subject to completion. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued. This presentation does not provide full disclosure of all material factsrelating to the securities offered. Investors should read the amended and restated preliminary prospectus and the final prospectus and any amendment for disclosure of those facts, especially risk factors relating to the securitiesoffered, before making an investment decision.

Pinnacle Renewable Energy Inc. (TSX: PL)

Investor Presentation, September 2020

1

Disclaimer

FORWARD-LOOKING INFORMATION

This presentation contains “forward-looking information” within the meaning of applicable securities laws in Canada. Forward-looking information may relate to

our future financial outlook and anticipated events or results and may include information regarding our financial position, business strategy, growth strategies,

budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding our expectations of future results,

performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. Some of the specific forward-looking

information contained herein include, but are not limited to, statements with respect to: our expectations regarding growth in biomass-based fuel sources within

the European and Asian power generating portfolio; growth in global demand for wood pellets; anticipated supply delivery times under our off-take contracts;

anticipated capital cost and maintenance capital expenditures required by our facilities; COVID-19 and anticipated production from our facilities.

Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those

expressed or implied by forward-looking statements, including, without limitation, the factors discussed in the “Risks and Uncertainties” section of this MD&A and

in the “Risk Factors” section of our Annual Information Form (“AIF”) dated March 31, 2020, which can be accessed under the Company’s profile on SEDAR at

www.sedar.com. The Company cautions that the list of risk factors and uncertainties described herein and in the AIF are not intended to represent a complete list

of the factors that could affect us. Readers are urged to consider such risks, uncertainties and factors carefully in evaluating the forward-looking information, and

are cautioned to not place undue reliance on such information.

Any forward-looking information contained in this presentation represents our expectations as of the date of this presentation (or as of the date they are

otherwise stated to be made) and are subject to change after such date. Future-oriented financial information (“FOFI”) contained in this presentation was made

as of the date hereof and was provided for the purpose of providing shareholders with information on Pinnacle’s financial outlook.

Pinnacle disclaims any intention or obligation to update or revise any forward-looking information or FOFI contained in this document, whether as a result of new

information, future events or otherwise, unless required pursuant to applicable securities laws in Canada. Readers are cautioned that the FOFI contained in this

document should not be used for purposes other than for which it is disclosed herein.

NON-IFRS MEASURES

This presentation makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS, and do not have a standardized

meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided

as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective.

Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. These non-IFRS

measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not

otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-

IFRS measures in the evaluation of issuers. Our management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to

period, to prepare annual operating budgets and forecasts and to determine components of management compensation.

The following measures are used by management as key performance indicators for our business: Adjusted Gross Margin Percentage, Adjusted EBITDA, Free Cash

Flow, Annualized Return on Invested Capital and Annualized Cash Flow Return on Assets.

2

Share information

(millions of shares) Shares Outstanding ¹ONCAP Entities 10.4Other Shareholders 1.5Public Shareholders 21.5Basic Shares Outstanding 33.4Stock Options 2.1Fully Diluted Shares Outstanding 35.5

Ownership

Analyst Coverage

1. As at August 10, 2020

IPO issue price (Feb. 6, 2018) $11.25Recent closing price (Sep 1, 2020) $6.5652-week high / low $11.51 / $3.63Market Capitalization (Sep 1, 2020) ~ $215 millionQuarterly Dividend $0.0375 / shareYield (Sep 1, 2020) ~ 2.4%

3

British Columbia Alberta

Rail line

Pellet Plant

Port

Development

Office

WestviewHouston

Burns Lake

Williams Lake

Vancouver

Richmond

Armstrong

Lavington

EntwistleMeadowbank

Prince George

Smithers

Our Company

Nine production facilities in western Canada / Southeast U.S., two under construction in Alberta and Alabama

and a wholly-owned port terminal in B.C.

$6.8 billion of contracted backlog under long-term contracts with large utilities in Europe and Asia

Lowest quartile cost supplier

Canada / US Facility Network

Management team that drives continuous improvements and maintains industry-leading safety

2nd largest industrial pellet producer in three strategic fibre baskets in a rapidly growing global market

Annual capacity of approximately 2.8 million MTPA³

1. The Aliceville, Houston, Lavington, Smithers, High Level and Demopolis facilities are partially-owned by Pinnacle.

2. Pinnacle does not own shipping terminals at the Vancouver or Mobile ports.3. Assuming full run-rate production from facility upgrades and the High Level and Demopolis

facilities.

1

1

12

Alabama

Aliceville

Pellet Plant

PortMobile

Georgia

River (barge)

Mississippi

1

2

High Level1

Demopolis1

Development

4

13 13 14 17

15 16 17 18 18 18

- 1 1

1 5 5

7 10 12 12

13 13 15

18 19

21

25

28 30 30

-

5

10

15

20

25

30

35

40

2015A 2016A 2017A 2018A 2019A 2020E 2021E 2022E 2023E 2024E

Potential demand is significantly higher than current operating capacity

Global Industrial Wood Pellet Demand (millions of MT per annum)

Source: Hawkins Wright —The Outlook for Wood Pellets, No. 24, Quarter 2 2020.

• Potential demand for pellets is expected to more than double from 2015 to 2024• European potential demand expected to be primary growth driver through 2021; Asia forecast to drive potential

demand growth beyond 2021, largely driven by Japan• Hawkins Wright forecasts that global production capacity of pellets will need to continue to grow through 2026 to

meet expected potential demand

The industrial wood pellet industry is experiencing an extended period of demand growth

Industry Growth

Asia

25.0M MT Current Capacity

5

Long-term Contracts

• In 2018 and 2019, Pinnacle entered into 12 new long-term contracts in Japan and South Korea totaling ~$4.6 billion

• Contracted backlog totalling $6.8 billion

Counterparty Annual Volume (MTPA) Start Year

100,000 2023

100,000 2022

110,000 – 120,000 2021

70,000 Late 2019

50,000 in year 1 / 150,000 thereafter Second Half of 2020

170,000 2021

30,000 Late Fiscal 2021

315,000 2021

75,000 2022

75,000 Early 2022

75,000 Late 2022

200,000 2022

Strong progress in business development in Asia

6

Regulatory frameworks driving continued industrial wood pellet demand

Industry / Market Update

Industrial wood pellets help countries and regions meet de-carbonization targets• Frameworks and policies have been put in place to facilitate a shift to a cleaner energy mix

Global Regulatory Frameworks

South Korea

EU (excl. U.K.)

U.K.• Largest pellet market in the world• UK’s Committee on Climate Change calls for

sustainably harvested biomass to make up15% of UK’s energy mix by 2050 in order toachieve net-zero emissions

• Continued growth in next 5 years of ~1.2million MT, driven by investment from MGTPower

• European Union net importer of 2.3 millionMT in Q1 2020

• New target expected for GHG emissions to bereduced to at least 50% by 2030

• New climate law proposed to make goal tocut GHG emissions to zero by 2050

Japan• Feed-in-tariff (¥21 – ¥24 / kWh), review expected in

2020/2021 aiming to ensure renewables arecompetitive

• Targeting 22% - 24% of electric supply generatedfrom renewables by 2030, with 3.7% - 4.6% frombiomass (20 million MTPA in pellet equivalent)

• Next growth phase will be existing coal-fired plantsswitching to co-firing. New energy efficiencycalculation offers incentive for biomass cofiring.

• Anticipated growth of 2.0 million MT by 2023• Basic Energy and Power plan aims to increase energy

generated from renewable sources from 15% to 40%by 2034

• Four dedicated biomass-fired power plants arescheduled to commence operations in 2020 andtarget an additional 750MW by 2023

Source: Hawkins Wright —The Outlook for Wood Pellets, No. 24, Quarter 2 2020.

7

• US$10 million capital spending program (US$7million Pinnacle share) to improve safety, productquality and plant efficiencies completed.

• First full year of production saw volumeincreases and an over 50% increase in Q42019 over Q4 2018 production

• Second phase of capital program commenced inQ2 2020:

• Addition of truck unloading system to themill’s infrastructure

• Broaden access to additional supplies ofsawmill residuals

Aliceville Production Facility

70% 20% 10%

8

• Expanded footprint in the US Southeast

– Partnership expanded to build an industrial wood pelletproduction facility in Demopolis, AL, near the Alicevillefacility and adjacent to a large sawmill

– Located on the same river system as Aliceville, finishedpellets will be barged and loaded at the port in Mobile

• Annual run-rate production capacity of 360,000 MT

– Product to be sold through contracted long-term take-or-pay off-take contracts

– Broke ground in Q1 2020, commissioning beginning in Q22021

• Capital cost of $94.6 million (Pinnacle share of $135 million)

– Includes barge loading facility

– Total expenditures of $27.1 million as at end of Q2 2020

– Expected to be toward the upper end of the capital cost torun-rate EBITDA ratio target range

US Southeast Expansion

Demopolis Production Facility 70% 20%

New facility diversifies fibre supply and leverages existing relationships and infrastructure established in Alabama

10%

9

• Expanded relationship with Tolko Industries

– 50% / 50% partnership with Tolko to build an industrialwood pellet production facility in High Level

– High-quality wood fibre sourced primarily from Tolko’sexisting sawmill

• Annual run-rate production capacity of 200,000 MT

– Product to be sold through contracted long-term take-or-pay off-take contracts

• Construction began in Q3 2019

– $31.9 million capital cost (Pinnacle share of $63.8million), with $16.0 million in expenditures thus far as atthe end of Q2 2020.

– Expect production to commence in Q4 2020

Western Canada Expansion

High Level, Alberta Production Facility

50% 50%

New facility contributes to growth of Alberta production platform and further diversifies fibre supply

10

Western Canada Expansion

Smithers Production Facility

• Commenced initial pellet production in Q4 2018 andachieved commercial production in late December2018

– Simpler facility design and white fibre supplyfacilitated seamless commissioning process

– No storage silo required due to close proximity toWestview shipping terminal

– Run rate production of 125,000 MTPA achieved in Q32019

• Upgrade on an extended schedule and planned forcompletion in Q1 2021

– Chipper and additional pelleter installation

– Upgrade to decrease costs and increase productionrun-rate output by 15,000 MTPA

– $4.2 million capital cost (Pinnacle share of $6.0million) funded from existing credit facilities

70% 30%

11

Williams Lake & Meadowbank

• Williams Lake upgrade program commenced inQ2 2019 and completed in Q2 2020. The dryer isin its commissioning phase with run rateproduction expected in Q3 2020.

• Meadowbank upgrade program commissioningexpected to commence in 2021. Upgradescurrently on an extended schedule.

• Once commissioned, upgrades will enhanceoperating flexibility and enable the facilities toadapt to cyclical changes in wood fibre supply

• Combined production capacity increaseof 80,000 MTPA

Williams Lake

Meadowbank

Production Facility Upgrades and Capacity Expansion

12

Adding production capacity to meet growing contracted backlog

Production Capacity Expansion

YE 2017 Pro Forma

100%

1,422

2,842

• Pinnacle’s annual production capacity will

have grown by 1,420,000 MTPA since the

end of 2017 once facility upgrades arecomplete and the Aliceville, High Level, andDemopolis facilities reach full run-rateproduction

• Strategic entry and expansion in Alberta andAlabama significantly grows and diversifiesfibre supply

• Positions Pinnacle for new forestry industrypartnerships and opportunities

Annual production capacity (MTPA)

13

Investment Highlights

14

One of three global enterprise suppliers

Leading Producer and Global Supplier of Bioenergy Products in a Rapidly Growing Global Market

Nameplate Production Capacity of Global Industrial Wood Pellet Suppliers (000s of MT per annum) 1

We are one of only three global enterprise suppliers in a fragmented market✓

Major utilities demand reliable, long-term supply from counterparties with established

operational capabilities✓

Trusted supplier to the global utility market✓

Source: Hawkins Wright —The Outlook for Wood Pellets, No. 24, Quarter 2 2020, publicly available disclosure.

Industry consolidating around three global suppliers with scale and capabilities required to service major global utilities

• Growth in potential demand expected to be driven by major utilities, concentrating procurement around global enterprise suppliers

Capacity under construction / financed

Temporarily operating at reduced capacity

Global

Enterprise

Suppliers

Captive Utility

Suppliers

Smaller

Regional &

Merchant

Suppliers

- 1,000 2,000 3,000 4,000 5,000

Enviva

Pinnacle

Graanul

Drax Biomass

An Việt Phát

FRAM

Highland Pellet

SY Energy

Pacific Bioenergy

Rainbow Pellets

Tanac SA

15

Integrated network and scale create significant barriers to entry and position Pinnacle as a lowest quartile cost supplier to Europe and Asia

Production Facility Port OfficeStrategically located production facilities

Fibreco2B

1. Houston, Lavington, Aliceville, Smithers, High Level, and Demopolis facilities are partially owned by Pinnacle

2. Pinnacle is not the owner of Fibreco or Mobile.

WestviewA

Houston1 Burns Lake Williams Lake Lavington1 ArmstrongMeadowbank

Illustrative Cost to Transport One GJ Energy 100 km

Truck (Raw Fibre) $2.00

Rail (Pellets) $0.14

Sea (Pellets) $0.01

Alabama

9

Aliceville1

Smithers1

Mobile, AL2

8

Entwistle

Leading Producer and Global Supplier of Bioenergy Products in a Rapidly Growing Global Market

10

High Level110

1 2 4 5 63 87

9

C

11

Demopolis111

16

Geographic diversification of our asset base provides enhanced flexibility to cost-effectively

allocate supply to our customers in both Europe and Asia

Leading Producer and Global Supplier of Bioenergy Products in a Rapidly Growing Global Market

Scaling our platform

17

0

100

200

0 5000 10000 15000 20000

Cumulative Global Industrial Wood Pellet Supply, Thousand MT per Annum (90% Operating Rate)

0

150

300

0 5000 10000 15000 20000

Cumulative Global Industrial Wood Pellet Supply, Thousand MT per Annum (90% Operating Rate)

Cost advantage in supplying global markets

Scale, Vertical Integration and Operational Efficiencies Result in an Attractive Cost Position

Lowest-quartile cost supplier to rapidly growing markets in both Europe and Asia

EUROPESupply Cost Curve to CIF ARA1 (1H 2020; US$ / tonne)

JAPANSupply Cost Curve to CIF Tokyo Bay1 (1H 2020; US$ / tonne)

Substantial wood fibrebasket and operating

flexibility✓

Strategically located production facilities✓ Terminal operations✓

Operational efficiencies ✓

Q2 2020Average Cost:

$1282

Q2 2020 Average Cost:

$1402

Source: Hawkins Wright. The Outlook for Wood Pellets, No. 24, Quarter 2 20201 Represents the short run marginal cost curve to each specified location, excluding capex recovery. ARA represents Amsterdam-Rotterdam-Antwerp area, a generic term for the area encompassing the three

ports in the Netherlands and Belgium.2 Our costs have been converted to USD at an exchange rate of 1.386 CAD/USD. No other foreign exchange adjustments have been made to the supply curves.

180

194137

113

101

158

18

Growing contracted backlog in Asia

Increasing customer diversification

Customer Base Diversification

• Our contracted backlog consists of contracts with customers in Japan, the U.K., South Korea, and Europe.

• To date we have signed nine long-term off-take contracts totaling $3.0 billion with customers in Japan. Our growing contracted backlog in Japan underlines both the increasing adoption of biomass and the strength of our competitive position in this market.

10%

86%

4%

Contracted Backlog, Q4-2017

Japan

UK

Europe

48%

17%

33%

2%

Contracted Backlog, Q2-2020

Japan

South Korea

UK

Europe

Contracted Backlog by Customer Region

19

Proven Project Development Capabilities & Attractive Project Pipeline

Note: Run-Rate EBITDA is the incremental annual earnings, before depreciation and amortization, finance expense and provision for income taxes that the Company expects to generate from the project.1 Represents Pinnacle’s proportionate share of overall spending.2 Includes wholly-owned, partially-owned and in-development facilities (please refer to the Annual

Information Form dated March 31, 2020 for detail).

Key Project Facts

Ram

pin

g u

p P

rod

uct

ion

High Level, AB

Capital Costs • $32 million1 (In 4.0 - 5.5x EBITDA range)

Run-Rate EBITDA• Anticipated to be in line with Pinnacle’s

other production facilities

Status • Production expected in Q4 2020

Demopolis, AL

Capital Costs • $95 million1 (In 4.0 - 5.5x EBITDA range)

Run-Rate EBITDA• Anticipated to be in line with Pinnacle’s

other production facilities

Status • Commissioning expected in Q2 2021

Historical & Forecast Tons Sold (000s MT)

FacilityYear of COD or

Acquired

Demopolis

High Level

Q2’21

Q4 ‘20

Aliceville

Smithers

Q4 ‘18

Q4 ‘18

Entwistle Q1 '18

Lavington 2015

Westview 2013

Burns Lake 2011

Meadowbank 2008

Armstrong 2007

Houston 2006

Williams Lake 2004

Strong track record of successful project development

2

2,842

1,722

2,280-2,340

230

220

72

225

380

300

400

155

300

200

360

2019 2020E AnnualCapacity

20

Financial Review&

Growth Strategy

21

$293

$347

$378

2017 2018 2019

$56 $55

$47

2017 2018 2019

$67 $68 $65

22.9%

19.5%17.2%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

0

10

20

30

40

50

60

70

80

2017 2018 2019

Financial Review

Revenue ($ millions) Adjusted Gross Margin ($ millions) Adjusted EBITDA ($ millions)

$9.9 millionNet loss in 2019

$2.7 millionNet profit in 2018

$17.2 millionFree cash flow in 2019

$32.2 millionFree cash flow in 2018

22

Q2 2020 Financial Review

($millions, except for % and $/MT)Q2 2020

(13 weeks)Q2 2019

(13 weeks)

Revenue 132.2 104.2

Profit before finance costs and other income (expense) 7.1 5.2

Net income 0.02 1.5

Net income (excluding Entwistle impact) 0.02 1.0

Adjusted Gross Margin 20.0 20.3

Adjusted Gross Margin per MT $32.19 $42.56

Adjusted Gross Margin % 15.1% 19.5%

Adjusted EBITDA 16.1 15.3

Adjusted EBITDA per MT $25.98 $31.97

Adjusted EBITDA % 12.2% 14.7%

Free Cash Flow 10.1 6.3

Annualized return on invested capital 12.4% 13.6%

Annualized cash flow return on assets 13.6% 7.6%

23

Financial Position

($millions) As at June 26, 2020 As at December 27, 2019

Cash and cash equivalents 19.8 11.3

Debt

Revolver loan (current portion) - 19.2

Long-term debt (current portion) 15.1 4.2

Long-term liabilities 377.8 324.6

Total Debt 392.9 348.0

Net Debt 373.1 336.8

Well positioned to advance growth strategy

• $168 million available in credit facilities at the end of Q2 2020 to support our growth plan

• Full compliance with bank covenants

24

$34.1$43.9

$56.1 $55.1

$47.2

15.1% 16.5%19.2%

16.2%12.5%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

0

10

20

30

40

50

60

70

2015 2016 2017 2018 2019

5-Year Financial Review

Production1 (millions of MT per annum) Revenue (C$ millions)

Adjusted Gross Margin (C$ millions) Adjusted EBITDA (C$ millions)

$226

$266

$293

$347

$378

2015 2016 2017 2018 2019

$44.8 $53.1

$66.9 $67.6 $65.0

19.9% 19.9%22.9%

19.5%17.2%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

0

10

20

30

40

50

60

70

80

2015 2016 2017 2018 2019

1,137

1,320 1,357

1,6071,722

2015 2016 2017 2018 2019

1. Includes 100% of production from the Houston facility.

25

Selecting logistically advantageous locations

2

Identified Growth Projects

Project Identification and

Initial Evaluation:

1.0 – 1.5 million MTPA

Conceptual Design

and Engineering

Final Development

and Construction

Stra

tegi

c Fi

t

Fin

anci

al A

ttra

ctiv

en

ess

Cap

acit

y to

Exe

cute

Development Blueprint Development FunnelQualifications Before a Capital Project

is Undertaken

Securing long term sales agreements for our production

output1

Obtaining all permits and authorizations

4

Utilizing proven engineering, design, construction, and commissioning program

5

Securing a sustainable long-term supply of wood fibre

3

As at June 26, 2020, Pinnacle had $168 million available under its bank credit facility. Given our 4.0-5.5x CAPEX to EBITDA investment model, we can spend approximately $30 million for each 0.1 turn of our senior debt to EBITDA coverage ratio. Pinnaclereceives credit for run rate EBITDA during the commissioning of new facilities.

1

2

3

26

Significant room to grow

Future Growth

BCAB QC

GAAL

MSLATX

OR

WA

SCNC

NL

NB

NS

PEI

FL

Satisfy end market demand✓

Leverage development and operational expertise✓

Enhance geographic, customer and wood fibre supply diversity✓

• We have identified and intend to pursue several new production development opportunities in geographies such as Western Canada, Eastern Canada, U.S. Southeast, and / or the U.S. Pacific Northwest

• Strategic acquisition targets are assessed based on the quality of the asset, price and ability to integrate within our network of production facilities

Proven ability to exploit growth opportunities

Support fibre suppliers✓

27

U.S. Southeast Growth Opportunity

• Extensive sawmill development plans from major forestry companies (including Canadian firms) entering Southeast U.S. fibre basket

• Exceptional opportunity pipeline for Pinnacle to partner with forestry companies • Pinnacle’s operating strategy of targeting long-term residual fibre supply agreements is attractive to

new sawmills

Mississippi

Alabama

Louisiana

Arkansas

Pinnacle’s strategic entry into the key U.S. Southeast fibre basket

broadens scope of future growth opportunities

28

Investment Highlights

Leading Producer and Global Supplier of Bioenergy Products in a Rapidly Growing Global Market

Scale, Vertical Integration and Operational Efficiencies Result in an Attractive Cost Position

Long-Term Contracted Revenue with Stable Free Cash Flow Characteristics

Proven Project Development Capabilities & Attractive Project Pipeline

Strategic Entry and Expansion to U.S. Southeast Broadens Scope of Future Growth Opportunities

29

Appendix

30

Directors and Executive Officers

Management Team

Name Position Notable Prior Experience

Rob McCurdy Chief Executive Officer, Director • LafargeHolcim Ltd.

Andrea Johnston Chief Financial Officer • Dassault Systèmes GEOVIA, Natural Resources Industry, NGRAIN, BC Hydro

Scott Bax Chief Operating Officer • Interfor Corporation

Vaughan Bassett Senior Vice President, Sales & Logistics • Sappi Trading, VP of the Wood Pellet Association of Canada

Erin Strong Director of Human Resources • Mark Anthony Group, Tolko Industries

Ranj Sangra General Counsel & Corporate Secretary • Ritchie Bros Auctioneers, CHC Helicopter Corporation

Adnan Khan Vice President, Strategic Capital • Allnorth Consultants, Ostara Nutrient Recovery, Jacobs

Board of Directors

Name Position Notable Prior Experience

Gregory Baylin* Director, Chair of the Board • Managing Director at ONCAP

Pat Bell* Director, Vice Chair of the Board • Former Minister of Forests for the Province of British Columbia

Leroy Reitsma Director • Former COO of the Company

Michael Lay* Director • Managing Partner of ONCAP

Hugh MacDiarmid* Director• Former President and CEO of Atomic Energy of Canada; Former President and CEO of Laidlaw

Transit; Director of SeaCube Container Leasing, Terrestrial Energy and BWXT Canada

Jane O’Hagan* Director• Former CMO and EVP of Canadian Pacific Railway; Director of USD Partners GP, the general

partner of USD Partners based in Houston, Texas and Descartes Systems Group

Rex McLennan* Director• Former CFO and EVP of both Placer Dome and Viterra Inc.; Director of Endeavour Silver Corp,

and former director of Boart Longyear

Duncan Davies* Director• Former President and CEO of Interfor Corporation, Vice Chair of Binational Softwood Lumber

Council, former Co-chair of B.C. Lumber Trade Council and Canadian Lumber Trade Alliance

* Denotes independent board member

31

Pelletizing Process

• Raw fibre is delivered to the production facility, either from nearby sawmills, or directly from the forest block• We strategically allocate raw fibre amongst our facilities, to optimize the wood fibre input mix across our network Sourcing &

Logistics

• In order to achieve the industrial wood pellet quality standard, larger fibre particles must be reduced in size and filtered• We target 95% fibre reduced to fewer than two millimetres, of which 65% is less than one millimeter

Grinding & Hammering

• For a pellet to achieve the optimal energy density and combustion rate, it needs to have a moisture content that is approximately 5%

• We achieve optimal moisture content by utilizing either bed drying or a rotary drum drying technologyDrying

• Pellets are created by taking the previously ground, hammered and dried fibre and putting it through a roll and die system• The pelletizing machines form a pellet through a combination of temperature and pressure created as the fibre is forced

through holes in the diePelletizing

• Pellets are air-cooled in order to allow for the pellets to solidify and strengthen• We use a vibrating screen to remove any fine material (particles less than 3 millimetres)

Cooling & Screening

• We have developed, along with our logistical partners, loading systems to maintain the pellet quality• Gentle pellet loading, storage and transport systems are essential to minimize the amount of dust or fine material

generated during the handling operationsStorage &

Load to Rail