COMPANY OVERVIEW December 201145 Main Street, Suite 309Brooklyn, New York, 11201Tel: email@example.comAbout SunSi Energies:The mission of SunSi Energies Inc. (“Sunsi”) is to consolidate a portfolio of high quality, strategicallylocated Trichlorosilane (“TCS”) production facilities and to position them for growth and expansion.Relatively unknown, but essential to the solar industry, TCS is the industry’s main feedstock material dueto its use in the production of polysilicon (an essential component of most solar panels). The solarphotovoltaic value chain (diagram shown below) consists of a specific and distinct number of steps, fromTCS production (the first step in the value chain) to the production of solar energy systems (the last stepin the value chain).TCS producers and polysilicon manufacturers tend to achieve the highest profits in the chain, followed byingots and wafer producers. SunSi has therefore entered the solar market in the ideal place in the valuechain. SunSi is the first and only "pure play" public company in the world focused on the production ofTCS.The Story:SunSi Energies owns 100% of a Hong Kong-based company, SunSi Energies Hong Kong Inc. (“SunSiHK”), through which SunSi Energies has acquired a Chinese TCS production facility as well as a TCSdistribution company.On December 9th, 2010, SunSi HK completed the acquisition of 90% of Zibo Baokai Commerce andTrade Co. (“Baokai”), a distribution company. With this acquisition, SunSi gained exclusive rights todistribute 25,000 metric tons (“MT”) of TCS produced by the Zibo Baoyun Chemical Plant (“ZBC”) locatedin Zibo China, for both the local Chinese and international markets. This acquisition enabled SunSi toemerge from the developmental stage and to begin generating revenue during the quarter endedFebruary 28, 2011, thereby creating a real presence within the Chinese TCS markets.On March 18th 2011, SunSi HK also completed the acquisition of 60% of Wendeng He Xie Silicon Co. Ltd(“Wendeng”), a TCS manufacturer located in Weihai City. All of the management and employees ofWendeng were retained. Under the terms of the agreement, SunSi paid the sole shareholder of Wendeng(“Seller”) $455,000 in addition to the issuance of 1,349,628 redeemable common shares of SunSi. As partof the transaction, an existing shareholder of SunSi also contributed 1,574,566 shares of SunSi commonstock to the Seller. Currently Wendengs nameplate capacity is 30,000 MT of TCS, counting a recentlycompleted expansion of production by an additional 10,000 MT.
On June 15, 2011 the Seller elected to waive his right to redeem 1,349,628 shares for approximately $2.7million and instead chose to retain those shares. As of the date hereof, SunSi has completed all of itsacquisition payments due to the Seller.Minor preliminary construction of a second expansion commenced at the Wendeng facility in July 2011.However, approximately $15.0 million in additional capital is necessary to complete this expansion. TheCompany’s contribution toward this expansion is expected to be $9.0 million, with approximately $5.0-$6.0 million contributed by Wendeng’s 40% minority partner. The total expansion, which will increaseWendengs capacity to 75,000 MT, is expected to be completed six months after the Companysuccessfully raises approximately $5.0 million of the initial tranche of capital. Additionally, the currentexecutive management team of Wendeng will provide its technical expertise for the construction, trainingand operation of the facility and its expansion.SunSi is in the process of evaluating additional acquisition opportunities in China as it foresees a growth,both in geographic terms and in terms of general TCS demand. Our objective is to acquire TCS facilitiesthrough expansion and/or acquisition that will have a combined total capacity of over 140,000 MT/yearwithin the next three years. In view of our expansion plan, SunSi has already identified North America andEurope as likely potential markets for its TCS. Countries such as Germany and Spain, have led thedemand for solar PV in recent years, while the United States is expected to experience a significantgrowth in the renewable energy markets, including solar energy. Moreover, SunSi expects to continue itsdevelopment as a key supplier to the emerging Chinese and Asian polysilicon and solar energy markets.SunSi Energies Inc.’s common stock trades on the OTCQB under the ticker symbol "SSIE."We recently applied for an up-listing to the NASDAQ Capital Markets exchange and are progressingthrough the qualification process. As of November 18, 2011, we had a total of 486 shareholders. As ofAugust 31, 2011 we had $7.7 million in shareholders’ equity.2011 and Recent Highlights Closed first acquisition of 90% of a TCS distribution company, Baokai, in December 2010. Closed second transaction with the acquisition of a 60% equity interest in a TCS manufacturing company, Wendeng, in March 2011. In 3Q11, emerged from development stage status to an operating entity. In 4Q11, began generating significant revenues and recorded the first profitable quarter in Company history. In June 2011 the Company fulfilled its payment obligation to Wendeng when $2.7 million in redeemable SunSi common stock was converted to equity. Shipped first TCS order outside of China to Nitol Solar (Russia). Initiated the up-listing process to NASDAQ CM. Completed Due Diligence on potential acquisition of a 20,000 MT facility.The OpportunitySunSi is in the process of increasing capacity at the Wendeng facility. In order to accomplish theseobjectives, the Company is seeking to raise an amount of $9,000,000 USD, which will be used as follows: Expand capacity by 45,000 MT of TCS $ 8,000,000 Estimated commission and expenses $ 1,000,000
Main Trichlorosilane Customers:Historically, we have sold our TCS to some of the largest polysilicon companies in the world and to othersignificant Tier II polysilicon companies. Due to the nature of the nature of the industry, the amount ofTCS we supply to these entities may vary from quarter to quarter based upon market demand. The factthat our TCS from both Baokai and Wendeng meets these entities’ high quality standards is indicative ofour capabilities and potential.Baokai has supplied TCS to: 1. Luo Yang Zhong Silicon Hi-tech Technology Development Co. Ltd. 2. Jiangsu Zhong Neng Silicon Industry Technology Development Co. Ltd. 3. LDK SolarWendeng has supplied TCS to: 1. Luo Yang Zhong Silicon Hi-tech Technology Development Co. Ltd. 2. GCL Silicon Technology Holdings Inc. - www.gclsolarenergy.com 3. Wuxi Zhong Cai Technology Co. Ltd. 4. Lian Yu Gang Zhong Cai Technology Co. Ltd. 5. Zhe Jian Xie Cheng 6. Wendeng Huahai Chemical Co. Ltd.Competition:We believe that there are approximately 25 other TCS producers within China whose capacities arecomparatively small, as fewer than 10 of these have a production capacity of over 2,000 MT per year. Asa result of the recent oversupply of polysilicon and the reduction of TSC pricing to historically low levels,many of these companies will be put out of business.Today the number of TCS producers has grown to over 20, holding a combined production capacityexceeding 145,000 MT per year. China’s TCS producers are mainly located in Jiangxi, Tangshan ofHebei Province, Zibo of Shandong Province, Chongqing of Sichuan Province, Wuhan of Hubei Province,and Shanghai.Our Executive Team:North America:Our U.S. team has a significant international experience in operating businesses across nationalboundaries. Each member possesses a wealth of experience dealing with listed public companies andasset management. It is a team endowed with a solid leadership that shares a common vision for thebusiness, as well as envisions strong growth and rapid expansion for SunSi into China and beyond.U.S. Team Members and Board Members:Richard St-Julien, Chairman & Chief Legal Officer, Member of the Board of DirectorsDavid Natan, Chief Executive Officer, Member of the Board of Directors.
Jason Williams, Chief Financial OfficerYifeng Song, Vice-President of Global DevelopmentKebir Ratnani, Member of the Board of DirectorsDavid Vanderhorst, Member of the Board of DirectorsAdrian Auman, Member of the Board of DirectorsChinese Management Team at Wendeng:Wendeng benefits from the experience and technology expertise of Zhang Fahe. Mr. Zhang brings over30 years of experience in the Chinese chemical industry, 10 of which have been specifically focused onworking with TCS. During that time, he has directly contributed to the development of advanced TCSproduction technologies by optimizing key technological processes. He has designed various TCSfacilities, including the Wendeng facility.Chinese Management Team at Baokai and ZBC:The production facility management team in China is led by Mr. Yihua Song. This team holds a combinedwork history of over 30 years with the organization. Stability and future growth are ensured by keepingthis knowledgeable and experienced team in place to manage the day-to-day operations.Conclusion:SunSi is in the position of being able to capitalize now, before the economic recovery, on one of thefastest growing markets in the world – alternative energy. Another exciting angle for investors is the factthat SunSi is the only publicly listed company in the USA that allows for a “pure play” in the TCS sector.Other companies producing Trichlorosilane are either private companies or, if they are publicly held, theirTCS production component is very small.We offer a unique opportunity to become involved with a company that already holds value, has a strongmanagement team, is generating revenues and has a solid and executable plan for significant futureexpansion both through acquisition and organic growth. For more information, please contact Richard St-Julien at firstname.lastname@example.orgWendeng He Xie Silicon Co. Ltd, Shandong, China: