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February 2014 Investor Presentation 1

Iofina plc Presentation, February 2014

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Page 1: Iofina plc Presentation, February 2014

February 2014 Investor Presentation 1

Page 2: Iofina plc Presentation, February 2014

Forward Looking Statements

In addition to historical information, this presentation contains forward–lookingstatements that are based on assumptions made by management regarding futurecircumstances over which the company may have little or no control and involverisks, uncertainties and other factors that may cause actual results to be materiallydifferent from any future results expressed or implied by such forward–lookingstatements. These factors include, among others, the following: general economicand business conditions; the company’s cost of operations; the success of costcontainment initiatives, including costs arising from changes in regulations;availability and cost of capital; the success of growth initiatives; the effect ofregulation on consolidation of the industry; the ability to generate earnings fromcapital investment; and those risks and uncertainties described in the Risk Factorssection of the Company’s publicly filed reports for the year ended 12/31/12. TheCompany is not obligated to update its forward–looking statements to reflect theimpact of future events.

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Page 3: Iofina plc Presentation, February 2014

Key Personnel

• George Lantz, CEO and President – Co-founder and VP of Voyant Technologies (sold to Polycom)– Former VP of Polycom , VP of Frontier Conference Tech, Corporate Business Manager ROLM (Siemens Company), and Sales Engineer IBM– Design Engineer with Texaco– Bachelor of Science in Civil Engineering and Master of Science in Industrial Management both from University of Wyoming

• Gary Gatchell, Finance Director– Former CFO of two NASDAQ publicly traded companies– Raised over $200 million in equity financings in both secondary and IPO offerings– Extensive trade sale experience– Previous audit manager at KPMG– Registered Certified Public Account, Master degree in Accountancy from the University of Denver

• Dr. Tom Becker, PhD, President of Iofina Chemical– Former VP of Research and Development for H&S Chemical (acquired by Iofina and now Iofina Chemical)– Extensive experience in scale-up of chemical processes from laboratory to pilot to full scale production and the inventor on several chemical

patents, including Wellhead Extraction Technology® (WET®)

• Michael Coddington, CFO of Iofina Chemical– Bachelor of Business Administration degree, Finance and Accounting, University of Cincinnati– Over 30 years of experience from Controller to CFO for manufacturing and production companies– Former Finance Director of Iofina plc

• Forest Dorn, Vice President of Iofina Resources– Former Member/Manager of Avanti Exploration, LLC.; former Board member and Senior Vice President of Forest Oil Corporation (NYSE: FST;

$1.01bn cap)– Over 30 years of broad oil and gas experience

• Dr. Chris Fay, CBE, PhD,BSc, C.Eng, FREng, FRSE, FICE & FEINon-Executive Chairman

– Former Chairman and Chief Executive of Shell U.K. Limited– Former Non-Executive Chairman of Expro International Group plc sold to Candover for £1.8bn in 2008– Former Non-Executive Director of Anglo-American plc (LSE: AAL; £32.547bn cap)

* Further detail on management in Appendix 3

Page 4: Iofina plc Presentation, February 2014

Vertically-Integrated Iodine Company

4

Focused on becoming a major producer of iodine and iodine chemical derivatives through two core businesses:

Raw Iodine

Raw Iodine Iodine Derivatives

Page 5: Iofina plc Presentation, February 2014

Iodine - essential for life and industry

5

Key Uses of Iodine

CT Scans & X-rays Pharmaceuticals LCD Screens Animal Nutrition Table Salt Cosmetics

Iodophors10%

Biocides2%

Fluoro derivatives

6%

Nylon 4%

Human nutrition

4%

Contrast media 22%

Animal nutrition

10%

LCDs 10%

Pharmaceuticals14%

Other 18%

Demand by Sector

Page 6: Iofina plc Presentation, February 2014

Iodine Supply

Source: Iofina plc

6

2012 Global Iodineproduction: 31,900 mt

USA5%

Chile53%

Others3%

Japan25%

Recycling14%

Supply by Region

Others19%

Western Europe

36%

North America

23%

China 8%

Japan 7%India 7%

Consumption by Region

Global Demand: 4% CAGR from 2002-2012

- Global supply controlled by Chile and Japan- Higher production cost in Chile due to water, labour

and energy

Page 7: Iofina plc Presentation, February 2014

$0

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World Production and Average Price (1960-2013)

World Production (MT) Price/kg

Iodine Production and Pricing

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Source Data: USGS Minerals Report prior to 2006 and export records from Chile 2006 and beyond

•Market grown from 18,000MT in 2000 to 31,900MT in 2012

Demand Increasing

•Battles over water ownership in Chile

•Diminishing resource in Japan

Supply Constrained

•Currently trading at $45-$55/KG, up from $15/KG in year 2000

Prices Firm

Page 8: Iofina plc Presentation, February 2014

Iofina Resources Business Model

8

Patented and Patent Pending

Iodine Technology

• Extract iodine from 3rd party produced brine water

• Locate plants near salt water disposal wells

• Low cost producer

• Low cost scalable plants

• Current plant up to 30K bpd

• Mobile plant up to 10K bpd

• Sell iodine as a chemical derivative or as raw iodine

Water supplied through 3rd

party contracts

Iodine Product

Third Party Oil and Gas Production

Page 9: Iofina plc Presentation, February 2014

Oil and Gas Co-produced Water

9

Water by state from Oil and Gas

Production

• Oil and gas wells co-produce water along with hydrocarbons

• Many of the same organisms that broke down to form hydrocarbons also bio-concentrated iodine in these brine streams*

• The current average for every barrel of crude oil produced is 7-10 barrels of water produced 1

• Iofina plant locations

• Texas – IO#1

• Oklahoma

• Producing – IO#2, IO#3

• Under Construction – IO#4, IO#5, IO#6

• Discovering additional sites

• In-house geology team

• 2,000+ samples

1 million gallons= 3.1 acre feet

1. http://www.usbr.gov/research/AWT/reportpdfs/report157.pdf

*Source: U.S. Department of the Interior Bureau of Reclamation

*

Page 10: Iofina plc Presentation, February 2014

Why Do Oil and Gas Producers Contract with Iofina?

• Increasing expense for waste water disposal

• Royalty money from the extraction of iodine can offset cost of disposal

• No additional capital

• Proven extraction model with little to no impact on existing operations

• Iofina system operates in-line with existing oil and gas producer systems

• Water quality is monitored by Iofina to reduce suspended solids, oil and organics

• Turnkey approach – Iofina handles installation, operations and iodine sales

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Page 11: Iofina plc Presentation, February 2014

Proven Model Afforded by WET® with IOsorb™

11

• Texas plant successfully commissioned in August 2012 for major independent oil and gas company

• Proved WET® with IOsorb™technology

• Extraction efficiency range between 80-94% depending on brine temperature

• Continuous operation 24/7

• Iodine rich brine is trucked in which can cause a wide range of iodine concentrations and varied flow

• IO#2 successfully commissioned in Oklahoma January 2013

• IO#3 successfully commissioned in December 2013

• Extraction efficiency range between 88-95% with hot brine stream of over 45°C piped in from wells

• Continuous operation 24/7 -automation added

• Production area in early stages of large oil shale boom

IO#1 IO#2&3 IO#4-6

• IO#4 & 5 anticipated to be online in Q1 2014

• IO#6 anticipated to be online in summer 2014

• IO#5 & 6 tower incorporates FRP fibreglass towers in place of titanium

• IO#2-6 located within 15 miles of each other allowing staff and resource sharing

• Iodine leasing is on-going in target areas

Page 12: Iofina plc Presentation, February 2014

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•Halogen derivative experts with an iodine focus.

•30+ years of manufacturing

•Three consecutive years of record sales

– $ 16.1m in 2011

– $ 18.6m in 2012

– $ 13.7 in H1 2013

•Profit margins have improved in the last three years under current management team

•2013 upgrades for higher throughput and new products

•Expanded sales to Asia, Europe and South America

•Committed to R&D, delivering innovative new products with continued growth in existing products

•Vertically positioned in the $5-6.5bn pa iodine chemical derivatives market

Product Mix of Iofina Chemical:

Methyl Iodide (pharmaceuticals, acetic acid)Hydriodic Acid (disinfectant, teat dip, acetic acid)IPBC (fungicide for paints, coatings, cosmetics)Trichloromelamine (U.S. EPA registered disinfectant)Methyl Fluoride (semiconductor etchant gas) Chloramine-T (aquaculture)

Iofina Chemical – Record sales in 2013

Page 13: Iofina plc Presentation, February 2014

Key Achievements

13

Building multiple plants simultaneously

• 2 plants to be completed in Q1 2014

IO#1 & WET® IOsorb

• Celebrated 1 year anniversary & successfully proved concept

Production from IO#3

• Plant up and producing iodine

First external sale of raw iodine

• Completed January 2014

Significant derivative margins achieved

• Benefiting from vertical integration with Iofina Resources

Page 14: Iofina plc Presentation, February 2014

Iofina plc

– Recognized as leading integrated provider of iodine and iodine chemical derivatives

– Increased revenue and margins

Iofina Resources

– Increase iodine production

• IO#4 and IO#5 online in Q1

• IO#6 online in summer

• Install mobile units at strategic locations

– Build prilling unit

– Ramp up sales of raw iodine

Iofina Chemical

– Increase derivative production

• Add production shifts as necessary

• Add additional production capacity if required

– Increase derivatives sales

• New markets

• Expand partnerships to utilize Iofina’s production and manufacturing integration

14

Road Ahead in 2014

Page 15: Iofina plc Presentation, February 2014

Iofina - Well Positioned for the Future

• Growth company with a unique model for producing a resource with a limited global supply

– Partnered with major and financially stable independent oil and gas companies

– Low cost iodine producer

– Chilean producers’ costs increasing due to water, energy and labour

• Vertically integrated

– Iodine production and iodine chemical derivatives manufacturer

• Patented and patent pending proprietary technology

– Extracting iodine located at the injection site from brine co-produced with oil and gas

• Upside potential on water resource and deep shale rights

– Not included in forecasts

15

IO#2

Page 16: Iofina plc Presentation, February 2014

Iofina plc