2. Forward Looking Statements
In addition to historical information, this presentation contains forward–looking
statements that are based on assumptions made by management regarding future
circumstances over which the company may have little or no control and involve
risks, uncertainties and other factors that may cause actual results to be materially
different from any future results expressed or implied by such forward–looking
statements. These factors include, among others, the following: general economic
and business conditions; the company’s cost of operations; the success of cost
containment initiatives, including costs arising from changes in regulations;
availability and cost of capital; the success of growth initiatives; the effect of
regulation on consolidation of the industry; the ability to generate earnings from
capital investment; and those risks and uncertainties described in the Risk Factors
section of the Company’s publicly filed reports for the year ended 12/31/12. The
Company is not obligated to update its forward–looking statements to reflect the
impact of future events.
2
3. 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 & FEI
Non-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
4. 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
5. Iodine - essential for life and industry
5
Key Uses of Iodine
CT Scans & X-rays
Pharmaceuticals
LCD Screens
Animal Nutrition
Table Salt
Cosmetics
Iodophors
10%
Biocides
2%
Fluoro
derivatives
6%
Nylon 4%
Human
nutrition
4%
Contrast
media 22%
Animal
nutrition
10%
LCDs 10%
Pharmaceuticals
14%
Other 18%
Demand by Sector
6. Iodine Supply
Source: Iofina plc
6
2012 Global Iodine
production: 31,900 mt
USA
5%
Chile
53%
Others
3%
Japan
25%
Recycling
14%
Supply by Region
Others
19%
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
8. 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
9. 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 produced1
• 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
*
10. 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
10
11. 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
12. 12
•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
13. 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
14. 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
15. 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
