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, May 2020

1

Disclaimer

FORWARD-LOOKING INFORMATION

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

to Pinnacle’s future financial outlook and anticipated events or results and may include information regarding its financial position, business strategy, growth

strategies, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding the Company’s expectations of

future results, performance, achievements, prospects or opportunities or the markets in which it operates is forward-looking information. In some cases, forward-

looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an

opportunity exists”, “budget”, “scheduled”, “estimates”, “outlook”, “forecasts”, “projection”, “prospects”, “strategy”, “intends”, “anticipates”, “does not

anticipate”, “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will”, “will be

taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or

circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent

management’s expectations, estimates and projections regarding future events or circumstances. If any of the opinions, estimates or assumptions underlying the

forward-looking information prove incorrect, actual results or future events might vary materially from those expressed in the forward-looking information. The

Company has no obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or

otherwise, except as required under applicable securities laws in Canada. Actual results and the timing of events may differ materially from those anticipated in

the forward-looking information as a result of various factors, including those described in “Risk Factors” which are described in the Company’s most recent

Annual Information Form (“AIF”) filed on SEDAR.

We caution that the list of risk factors and uncertainties is not exhaustive and other factors could also adversely affect our results. Readers are urged to consider

the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such

information. See “Forward-looking Information” and “Risk Factors” in the Company’s AIF filed on SEDAR for a discussion of the uncertainties, risks and

assumptions associated with these statements.

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. We use non-

IFRS measures including “EBITDA”, “Adjusted EBITDA”, “Adjusted EBITDA per Metric Ton”, “Adjusted Gross Margin”, “Adjusted Gross Margin per Metric Ton”,

“Adjusted Gross Margin Percentage” and “Free Cash Flow”. 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. As required by Canadian securities laws, we reconcile these non-IFRS measures to the most comparable IFRS

measures in our Management Discussion & Analysis for the fiscal first quarter ended March 27, 2020.

2

Share information

(millions of shares) Shares Outstanding ¹ONCAP Entities 10.4Other Shareholders 1.5Public Shareholders 21.5Basic Shares Outstanding 33.4Stock Options 2.0Fully Diluted Shares Outstanding 35.4

Ownership

Analyst Coverage

1. As at March 27, 2020.

IPO issue price (Feb. 6, 2018) $11.25Recent closing price (May 13, 2020) $4.0052-week high / low $11.51 / $3.81Market Capitalization (May 13, 2020) ~ $134 millionQuarterly Dividend $0.0375 / shareYield (May 13, 2020) ~ 3.8%

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.

$6.9 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

3rd largest industrial pellet producer in three strategic fibre baskets in a rapidly growing global market

Annual capacity of approximately 2.83 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 Entwistle, Aliceville, High

Level and Demopolis facilities.

1

1

12

Alabama

Aliceville

Pellet Plant

PortMobile

Georgia

River (barge)

Mississippi

1

2

High Level1

Demopolis1

Development

4

1

1 1

2

3 5

8

11 13 13

15

18 20

24

28

31

37

-

5

10

15

20

25

30

35

40

2014A 2015A 2016A 2017A 2018A 2019E 2020E 2021E 2022E 2026E

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. 21, Quarter 3 2019.

• Potential demand for pellets is expected to more than double from 2017 to 2022• 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 rapid demand growth

Industry Growth

Japan

25.0M MT Current Capacity

5

Update on Contracts

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

• $6.9 billion contracted backlog / weighted average remaining term of approx. nine years (as at March 27, 2020)

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 up 15% of UK’s energy mix by 2050 in order to achieve net-zero emissions

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

• European Union import growth of 5% in 1H 2019, net importer of 4.7 million MT

• Netherlands demand expected to increase to 3.1 million MT by 2021

• Continued growth in the Netherlands resulting from the start-up of cofiring at several coal-fired power plants

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

2020/2021 aiming to ensure renewables are competitive

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

• Next growth phase will be existing coal-fired plants switching to co-firing. New energy efficiency calculation offers incentive for biomass cofiring.

• Anticipated growth of 2.0 million MT by 2023• Renewable Portfolio Standard policy aims to

increase of energy generated from renewable sources to 10% by 2024

• Four dedicated biomass-fired power plants are scheduled to commence operations in 2020 and target an additional 750MW by 2023

Source: Hawkins Wright —The Outlook for Wood Pellets, No. 21, Quarter 3 2019.

7

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

• First phase of capital program successfully completed in July 2019

– Resulted in improved fibre flow, processing and operating efficiency

• First full year of production saw quarter over quarter production volume increases and we successfully ended the fourth quarter with an over 50% increase over Q4 2018 production

• Second phase of capital program to commence in Q2 2020

Aliceville Production Facility

70% 20% 10%

8

• Expanded footprint in the US Southeast

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

– Located on the same river system as Aliceville, finished pellets can 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 Q2 2021

• Capital cost of $70 million (Pinnacle share of $99 million)

– Includes barge loading facility

– Funded from draws on existing credit facilities

– Expected to be toward the upper end of the capital cost to run-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 Industries to build an industrial wood pellet production facility in High Level, AB

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

• Annual run-rate production capacity of 200,000 metric tons

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

• Construction began in Q3 2019

– $30.25 million capital cost (Pinnacle share of $60.5 million), not including rail infrastructure costs

– Expect production to commence in Q4 2020

Western Canada Expansion

High Level 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 and achieved commercial production in late December 2018

– Simpler facility design and white fibre supply facilitated seamless commissioning process

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

– Run rate production of 125,000 MTPA achieved in Q3 2019

• Upgrade on an extended schedule and planned for completion in Q1 2021

– Chipper and additional pelleter installation

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

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

70% 30%

11

Williams Lake & Meadowbank

• Williams Lake upgrade program commenced in Q2 2019. Expected completion and commissioning by end of Q2 2020. The dryer upgrade project has been temporarily suspended.

• Meadowbank upgrade program commissioning expected to commence in 2021. Upgrades currently on an extended schedule.

• Once commissioned, upgrades will enhance operating flexibility and enable the facilities to adapt to cyclical changes in wood fibre supply

• Combined production capacity increase of 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

99%

1,422

2,827

• Pinnacle’s annual production capacity will

have grown by 1,420,000 MTPA since the

end of 2017 once facility upgrades are complete and the Entwistle, Aliceville, High Level, and Demopolis facilities reach full run-rate production

• Strategic entry and expansion in Alberta and Alabama significantly grows and diversifies fibre supply

• Positions Pinnacle for new forestry industry partnerships and opportunities

Annual production capacity (MTPA)

13

Investment Highlights

14

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

Enviva

Graanul

Pinnacle

Drax Biomass

RWE (Georgia Biomass)

An Việt Phát

FRAM

SY Energy

Highland Pellet

Pacific Bioenergy

Tanac SA

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. 21, Quarter 3 2019, publicly available disclosure. Pinnacle data has been updated to reflect recently expanded/new facilities

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

Global

Enterprise

Suppliers

Captive

Utility

Suppliers

Smaller

Regional &

Merchant

Suppliers

# of

Facilities

8

12

11

4

1

1

3

1

3

1

Capacity under construction / financed

Temporarily operating at reduced capacity

2

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 (Q3 2019; US$ / tonne)

JAPANSupply Cost Curve to CIF Tokyo Bay1 (Q3 2019; US$ / tonne)

Substantial wood fibrebasket and operating

flexibility✓

Strategically located production facilities✓ Terminal operations✓

Operational efficiencies ✓

2019Average Cost:

$1402 2019 Average Cost:

$1422

Source: Hawkins Wright.1 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 1.32 CAD/USD. No other foreign exchange adjustments have been made to the supply curves. Entwistle was excluded from this cost analysis

given operating on mostly dry-side for 2019.

176

205146

118

108

162

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, Q1-2020

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. Rail infrastructure costs not included.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 • $30.3 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 • $70 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

2,827

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

Q1 2020 Financial Review

($millions, except for %)Q1 2020

(13 weeks)Q1 2019

(13 weeks)

Revenue 109.7 89.6

Production Costs 86.1 67.1

Distribution Costs 14.6 12.8

SG&A Expenses 4.7 3.8

Net profit (loss) (4.1) (7.0)

Net profit (loss) (excluding Entwistle impact) (5.9) (5.4)

Adjusted Gross Margin 9.0 10.4

Adjusted Gross Margin (excluding Entwistle impact) 8.5 12.5

Adjusted Gross Margin % 8.2% 11.6%

Adjusted EBITDA 4.0 7.1

Adjusted EBITDA (excluding Entwistle impact) 4.1 9.2

Free Cash Flow (1.1) 0.6

Free Cash Flow (excluding Entwistle impact) (1.1) 2.7

• Results impacted primarily by higher production costs due to increased sales volume, the sale of high cost finished pellet inventory and third party purchased pellets, and costs incurred to manage the impact of CN Rail disruptions

• Net debt to last twelve month Adjusted EBITDA ratio of 7.7 times and available liquidity of $57.1 million

23

Financial Position

($millions) As at March 27, 2020 As at December 27, 2019

Cash and cash equivalents 3.0 11.3

Debt

Revolver loan (current portion) 11.0 19.2

Long-term debt (current portion) 5.6 4.2

Long-term debt 325.6 292.6

Total Debt 342.2 316.0

Net Debt 339.2 304.7

Well positioned to advance growth strategy

• $185 million available in credit facilities at end of Q1 2020 to support 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 March 27, 2020, Pinnacle had $185 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

Rob McCurdy Director • CEO of the Company

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