Saponin Inc. asked me to give this public presentation at the Agricultural Biotechnology International Conference 2008 in Cork, Ireland.

1. SAPONIN Inc.
- The Prairie Carnation™ Company -
Pink(s) to the Prairies!
Dr. Michael M. Oelck, PAg, Co-founder and CEO
1

2. Pink(s) to the Prairies!
ABIC 2008, Cork Ireland, 2

3. Two Parts
Part I - The SAPONIN business case.
Part II - Why did the investors invest?
3

4. Part I
• Company Intro
4

5. Mission
SAPONIN is the leading supplier of industrial bio-
products from Prairie Carnation™ (Saponaria
vaccaria) . We produce and sell
• the finest native starch from any plant for cosmetics,
• saponins for vaccine adjuvants and
• cyclopeptides for medical applications!
5

6. The Crop
• Prairie CarnationTM
• Saponaria vaccaria L.
• syn. Vaccaria pyramidata
6

7. Brand New Crop!
- A Patent Attorney‘s Dream -
7

8. Agronomy that Works!
8

9. The Seed
Useable Content in %
Starch 60
Protein 13
Lipids 5
Saponins 3
Cyclopeptides 0.3
Phenolics 05
Soluble fibre 5
84 %
9

10. Genetics
• 18 chromosomes
• Self compatible fertilisation > 80%
• Microsospore derived embyro regeneration
• Double haploid breeding lines
• Hybrids for variety protection
• Si system required or molecular male sterility
• Transformation system in progress
• Molecular pharming potential
7/5/2011 10

11. The Products
11

12. The
Biorefinery Starch
Concept
Phenolics
Soluble fibre 12 O
28
16
O
OH
HOOC
HO O O 4
O
H3C FUC
RO
O CHO
OH 23 R3O O
OH O
O
HO GAL ARA
HO O HO OR2 O
RHA
O CH3
R1O OH
OH
Seed Extract H3C
O
HO
OH
Saponins OH
cyclo (gly-val-pro-val-trp-ala)
O
O
N
H
Protein HN O
HN
N NH
H O
NH
N
SEGETALIN A O O
MW 609.3274
Cyclic peptides
Oil
12

13. Micro-Starch
cash flow early
• Novel!
• Granule size of 1 micron - smallest starch known in nature
• Remarkable texture and performance properties
• Proprietary production method
• Premium pricing
• Cosmetic and specialty foods ingredient
• New industrial applications
25 μm 1 μm
13
Wheat starch 20-100um Prairie Carnation starch 1um

14. Saponins
Membrane active because of detergent structure
12 O
28
16
O
OH
HOOC
HO O O 4
O
H3C FUC
RO
O CHO
OH 23 R3O O
OH O
O
HO GAL ARA
HO O HO OR2 O
RHA
O CH3
R1O OH
OH
O OH
H3C
HO
OH
• Mode of action of saponins as cholesterol analogue
• Free cholesterol in the blood stream binds saponins
• Membrane effects against fungi and bacteria
• Cholesterol in cell membrane binds cholesterol
• Cell membranes permeable for seconds
• Removal with cholesterol by the liver
• Catalytic effect to help big molecules into cells
14

15. Saponin Market: Vaccine Adjuvants
• Cholesterol binding
• Immune stimulant
• Less hemolytic than any other saponins
• Antigen developed QS-21Saponin
• GSK has QS-21 for first Malaria vaccine to come
15

16. Saponin Market: Cancer
16

17. Cyclopeptides
Part of Natural Defense System of Plants
cyclo (gly-val-pro-val-trp-ala)
O
O
N
H HN
HN O
N NH
H O
NH
N
SEGETALIN A O O
MW 609.3274
Effects:
• Antimicrobial effect against protozoa, bacteria
Markets:
• Veterinary feed supplement
• Natural Fungicides for Organic Production
• Cardiovascular Therapy
17

18. Ingredient Market Marketing
Starch Cosmetics license for customer products, supply
raw product, customer does
regulatory
Saponins Cosmetics Adstringend , anti-wrinkle, sell to
formulators and cosmetics
Saponins Adjuvant Develop proof of concept, then
license
To vet first, pharma second
Saponins Pharmaceutical Develop proof of concept, then
license (e.g. mouse models in cancer)
Segetalins Pharmaceutical Develop proof of concept,
(cyclic peptides) then license (e.g. mouse models )
18

19. Conclusion of Intro
(Part I)
• SAPONIN is a new bio-pharmaceutical company
• Agriculture and seed production accomplished!
• Regulatory expertise needed at the beginning.
• Creative fractionation easy for more than one product.
• Natural Actives in large scale production!
• Markets are cosmetics, agriculture , vet. and pharma
19

20. Part II
Why did the Investors Invest?
Less Risk, more Rewards!
20

21. Investors Need a Convincing Team
- enriched by their own "experts", just in case…
SAPONIN was founded in 2003. Clarity Capital Corporation invested $2.2 Million
into SAPONIN Inc. in 2006 and $1 Million in 2008. The company is looking for
another investment of $5Million at present.
ABIC 2008, Cork, Ireland 21

22. Own the Value Chain!
Germplasm
Contract production
Processing
Product Quality Control
22

23. Intellectual Property
Position
METHOD FOR PRODUCTION OF SAPONARIA FROM MICROSPORES , PCT/CA2006/000725
EXCLUSIVE LICENCE OF SCOTT LANDLINE FROM AAFC,
Closed loop production system with contract farmers
PROCESSING OF SAPONARIA VACCARIA SEED,
United States Patent 3622389
EXCLUSIVE PRODUCT ACCESS AS USP
23

24. Early to Market Cash Flow: Starch
Low regulatory hurdles for cosmetic applications
Features Benefits
Extremely small, uniform, smooth For improved skin feel
Large inner surface area High carrying load for ingredients
White free flowing powder Easy formulation
Amylose content ~13% Physical-chemical properties for
potentially superior gels
Large scale seed production Domestic production and security of
supply for cosmetic needs
Exclusive partnerships Marketing by product segment
and by geography
Unique Novelty Product Branding exclusivity,
A must for the cosmetic industry
24

25. $10/kg Wild type seed
Prairie Carnation Value Chain
$100/kg Identity preserved double haploid seed
$1kg Contract produced farmer seed
$250kg Seed extract,:60% saponin, phenolics, cyclic peptides
$20kg Seed flower – finest starch, proteins, fibre, oil
$10kg Vaccine adjuvants vet + human
$1000kg Therapeutic saponins
Licence Downpayment$10Mill Cell Proliferation
Joint Venture $50Mill Cardiovascular
Royalties $10Mill
Example with theoretical values Royalties $100Mill 25

26. $10/kg
$25/kg Where is the home run? Focus!
Wild type seed
Double haploid seed
$50/kg Identity preserved certified seed
500 to $1/kg Contract produced farmer seed
50 to $100/kg Seed extract saponins, antioxidants, soluble fibre
400 to $20/kg Seed flower particle starch, conformations
50 to $2/kg Seed Protein protein for food, feed,
15 to $10/kg Seed Oil seed oil for food
30 kg $30/kg Saponin adjuvant vet. adjuvants
30 kg $10/kg Saponin adjuvants vaccines
30 kg $200/kg Therapeutic saponins
Outlicence $1Mill Seed Peptides Library
Downpayment$1Mill Cell Proliferation
Potential Value per 100 ha:
Joint Venture $50Mill Blood Pressure
Royalties $10Mill Drugs
Royalties $100Mill
Example with theoretical values 26

27. Added Value: Cyclopeptide Pharma
Doesn’t this sound like a home run?
• Known multiple pharmacological properties
• Not easy to produce – creates barrier
• Identified application for cardiovascular disease
• Compound library for numerous new drug candidates
• Proprietary production methods in-place
• Patent in preparation
27

28. Productive Agriculture
Taken for Granted
28

29. Broad Markets are a Backup
toothpaste Mouth rinse
shampoo
ore separation
Commercial saponin uses
root beer
fire
extinguishers photographic degreasing and beer
emulsions cleaning products
29

30. The Upscale Potential!
Prairie Carnation ( sales value per bushel)
Saponin – crude $ 250
or
Saponin – animal adjuvant (100µL/dose) $7,500
or
Saponin – human adjuvant (100µL/dose) $3.75 MM
or
Saponin – cancer drug (100 mg/dose) $4.5 MM
and
Cyclopeptides – cardiovascular drug (100 mg) $75,000
30

31. The Business Concept
the six pillar company!
Question:
Why would anybody grow a brand new crop?
Answer:
Control of the crop from the seed all the way to end user products!
• Create a strong intellectual property position,
• Multi faceted (six) uses of all seed contents,
• Multiple pharmaceutical compounds with proof of concept product in
pre-clinics
• Identity preserved germplasm control
Fazit:
Proprietary Technology Platform offering FTO, Genetics, Extraction
for six significant commercial uses , 31

32. The Six Pillars
1. Starch for cosmetic application
2. Saponins for vaccine adjuvants, dermatology,
3. Biological fungicide, nematicide, SAR
4. Cyclic peptides for blood pressure application etc.
5. Antioxidant for food supplement
6. Edible Protein for food and feed
32

33. Investor Speak
ABIC 2008, Cork, Ireland 33

34. Concept for Success
34

35. Contact Info
Michael M. Oelck,
Manotick (Ottawa) Ontario
Canada K4M 1A6
(613) 692-2382
IM Skype: Moelck
Michael M. Oelck, Ph.D., PAg. (Seed Business, Genetics, Regulatory)
Elke Steinmann-Oelck, Ph.D. (Agronomy, Plant Pathology)
35

36. Prairie Carnation
36