RedChip Presentation

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Derek McLeish President and CEO
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Forward Looking Statement

• Matters discussed in this presentation contain
  statements that look forward within the meaning
  of the Private Securities Litigation Reform Act
  of 1995. When used in this presentation, the
  words "anticipate," "believe," "estimate," "may,"
  "intend," "expect" and similar expressions
  identify such statements that look forward.
  Actual results, performance or achievements could
  differ materially from those contemplated,
  expressed or implied by the statements that look
  forward contained herein, and while expected,
  there is no guarantee that we will attain the
  aforementioned anticipated developmental
  milestones. These statements that look forward
  are based largely on the expectations of the
  Company and are subject to a number of risks and
  uncertainties. These include, but are not limited
  to, risks and uncertainties associated with the
  impact of economic, competitive and other factors
  affecting the Company and its operations,
  markets, product, and distributor performance,
  the impact on the national and local economies
  resulting from terrorist actions, and U.S.
  actions subsequently and other factors detailed
  in reports filed by the Company.

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Entrepreneurship for a Zero Carbon Society

• Entrepreneurs use a founders leadership to
  marshal resources to a particular goal economic,
  social or political
• Entrepreneurs provide a vision, coalesce a team,
  and manage the process
• Entrepreneurs usually deal with limited or Just
  in Time resources
• They live on the right side of the risk/reward
  curve
• Speed of decision making and time to market are
  inherent advantages of this type of leadership
• Can entrepreneurs succeed in a big capital,
  lobbyist, geo-political, and massive problem, and
  opportunity afforded by the challenge of zero
  carbon society?
• Can Carbon Sciences technology help recycle CO2?

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Introduction

• Breakthrough Technology
• Carbon Sciences, Inc. is developing a
  breakthrough technology to transform harmful
  carbon dioxide (CO2) emissions from human created
  sources, such as power plants and industrial
  factories, into high value, earth-friendly
  products.
• Near Term Target Market
• The initial application of our patent-pending
  technology is targeted at a multi-billion dollar
  market. We are developing a proprietary process
  to transform CO2 emissions into a high value
  chemical compound, currently used in the
  manufacture of paper, pharmaceuticals and
  plastics. Unlike existing methods of production,
  our process will be carbon neutral, use less
  energy and result in a lower cost product.
• Long Term Massive Market
• Our business strategy is to transform CO2
  emissions into various high value products for
  existing markets. This strategy allows us to
  achieve business success without waiting for
  effective governmental legislation limiting CO2
  emissions. As CO2 emissions become more heavily
  regulated in the future, we will be
  well-positioned to capitalize on other business
  opportunities in the massive global CO2
  mitigation market. By transforming CO2 into
  carbon products for use in building materials,
  paper, plastics and fertilizers, and fuel our
  patent-pending technology will help create
  environmentally friendly products and industries.

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Team

• Derek McLeish President and CEO
• 30 years of domestic and international management
  experience in technology introduction.
• With The Gillette Company, Panavision, Procter
  and Gamble
• Innovator and entrepreneur
• Michael Wyrsta, PhD Chief Scientific Advisor
• PhD in Materials from the University of
  California, Santa Barbara.
• Chief Technology Officer of SBA Materials,
  guiding intellectual property development and
  breaking new ground in solid-state composite
  materials
• Inventor- Multiple patents
• Naveed Aslam, PhD Chief Technology Advisor
• PhD in Chemical Engineering from the University
  of South Florida
• Over 14 years of research and hands-on process
  engineering experience in the petrochemical,
  organic and fiber manufacturing industries.
• Research Fellow at the University of Texas,
  Houston, and Florida State
• Sagar Gadewar, PhD Process and Systems Advisor
• PhD in Chemical Engineering from the University
  of Massachusetts, Amherst.
• Senior Program Manager at GRT, responsible for
  the development of GRT's bio-feedstock conversion
  technology
• Dr. Gadewar has substantial experience in
  developing process alternatives for capital and
  operating costs reduction.

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CO2 Emissions and the Carbon Economy

• CO2 levels today are the highest in 400,000 years
  causing climate change
• Global industrialization has been and will
  continue to grow dramatically
• Massive amounts of CO2 will continue to be
  emitted from industrial applications
• CO2 emitting energy sources such as coal, natural
  gas and petroleum will continue to power many
  sectors of the global economy
• 78 to 98 of new generating capacity between now
  and 2050 will be fossil fuel based (OECD/IEA)
• CO2 emissions from non-energy related industries,
  such as paper and cement will continue to grow
• CO2 emissions can be mitigated in an economically
  viable manner

Source Emission Database for Atmospheric
Research - 2000
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Legislation and Investments in CO2 Mitigation

• CO2 mitigation is a difficult international and
  national political agenda
• State of California passed the Global Warming
  Solutions Act of 2006 (AB32) mandating reduction
  of CO2 emissions
• Kyoto Protocol sets CO2 emissions caps for 190
  countries (2005 2012)
• DOEs 2009 Office of Fossil Energy budget
  included 241 million to fund the demonstration
  of carbon mitigation technologies for coal-fired
  power plants
• CO2 mitigation technology for large CO2 emitters
  such as coal fired powered plants will take years
  to develop and implement
• Projected market size for CO2 mitigation
  technology by 2030 is 400 billion (OECD/IEA)

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Limited Solutions

• Carbon Credits
• The Kyoto Protocol sets 'caps' or quotas on the
  maximum amount of greenhouse gases that each
  participating country can produce
• High polluters can buy the right to pollute from
  non-polluters
• This is ineffective because developing countries
  like China and India will continue to grow and
  emit CO2
• Carbon Storage
• Fossil fuel power plants are proposing to pump
  CO2 into the ground or ocean floor for storage
• Unknown long term environmental problems
• We may be trading one problem for another
• The ongoing cost of monitoring and managing the
  buried CO2 is infinite
• This is an early stage technology with no
  commercial deployment

Projected 2012 Carbon Emissions Source US
Energy Information Administration
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A Solution

• Carbon Transformation
• CO2 resulting from human industrialization can be
  combined with rock minerals to form carbonate
  products such as calcium carbonate, magnesium
  carbonate and others
• These carbonate products can be used in
  industrial applications such as
• Building materials Paper
• Soil remediation Paint
• Plastics Road fillers
• By transforming CO2, into a useful products, we
  believe this approach is economically viable and
  actively reduces CO2 emissions

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Carbon Transformation A New Paradigm
Immediate Applications
Transformation
CO2
Industrialization
Energy
Coal/Oil
Millions of Years
Storage

• Transforming CO2, an industrial byproduct, into a
  useful raw material to further industrialization

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Carbon Sciences Technology

• A technology platform for transforming CO2 into
  many valuable commodities
• Combines CO2 with rock minerals to form carbonate
  products for industrial use calcium carbonate,
  magnesium carbonate, etc.
• Traps CO2 in carbonate products permanently
• Patent pending technology

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Business Strategy

• The projected market size of CO2 mitigation
  technology by 2030 is 400 billion with gradual
  roll-out (OECD/IEA)
• Our strategic roadmap to this 400 billion dollar
  market was to focus initially on the low-volume,
  high-value carbonate markets

500 / ton
High Grade Calcium Carbonate (10 million tpa
market)
Commercial Value of Carbonate Products
Medium Grade Carbonates (100 million tpa market)
Crude Carbonates (gt 3 billion tpa market)
0
Yr 1
Yr 10
Yr 5
Specialty Industries
Broad Industries
Fossil Fuel Power Plants
(tpa tons per annum)
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Initial Target Market Multi-Billion Dollar PCC
Market

• Precipitated Calcium Carbonate (PCC) Nano sized
  (0.05-5.0 micron) particles of pure calcium
  carbonate derived by passing CO2 into a solution
  of calcium hydroxide
• Primarily used in the production of paper as a
  brightness coating and filler (10-20 of paper).
  The paper industry consumes over 70 of the
  worlds PCC supply

Estimated world consumption of PCC by end use in
2004 8,000,000 tons (Source The Economics of
Precipitated Calcium Carbonate, 2005)
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Initial Target Market Multi-Billion Dollar PCC
Market

• PCC Market
• 8,000,000 tons of consumption in 2004
• Global demand to rise to 10,000,000 tons by 2010
  average of 4.4 per year increase from global
  paper consumption and construction in Asian
  countries
• PCC is a high value commodity with varying grades
• Low range market size 2 Billion
• High range market size 12 Billion

(Source The Economics of Precipitated Calcium
Carbonate, 2005)
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The Worlds First Green Process for PCC

• A Carbon Sciences system optimized for the
  production of high grade PCC made from CO2

Traditional PCC Process

Calcination
Carbonation
Limestone
Carbon Sciences PCC Process
Waste materials from mining operation

Captured CO2 from any source
PCC
CO2
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Carbon Sciences PCC Applications

• PCC manufactured using the process can be used
  directly in existing PCC applications

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Carbon Sciences-PCC Advantages

• Traditional PCC
• Expensive raw materials - high quality lime (75
  per ton)
• Cost of raw materials will increase over time
• Energy intensive process
• Carbon Positive - CO2 emitted in the production
  process
• Carbon Sciences PCC Advantages
• Inexpensive raw material
• CO2 ( 0)
• Waste materials from mining operations ( 0)
• Energy efficient process
• Carbon Neutral - CO2 captured in the production
  process
• Potential for carbon credit subsidies to further
  reduce PCC cost

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Carbon Sciences Reducing the Carbon Footprint
of Paper

• Paper production is a major consumer of energy, a
  major cause of CO2 emissions AND the largest
  consumer of PCC. The industry is under tremendous
  customer and social pressure to reduce their
  carbon footprint.
• A paper mill with an integrated Carbon Sciences
  PCC plant can transform its own CO2 emissions
  into PCC for immediate use in paper production.
• The active recycling of CO2 is a breakthrough
  approach to reducing the carbon footprint of
  highly carbon positive operations like paper
  mills.

CO2
PCC
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Carbon Sciences Revenue Model

• Market PCC technology package to paper companies
  and other PCC manufacturers
• Technology Licensing
• Process design
• System design
• Engineering Support
• Basic engineering
• Technical support
• Specialty equipment

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Strategic Partnerships

• ABO Akademi University, Finland
• Joint research program with the worlds leading
  research university on carbon mineralization and
  transformation - headed by Professor Ron
  Zevenhoven
• Targeting large paper manufacturers
• In progress with a global building materials
  company
• In discussions with power generation partner
• Testing cement submissions
• Processing steel waste products

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New initiative for hyper-growth

• Apply what weve developed to transform CO2
  emissions into the basic fuel building blocks
  required to produce gasoline, diesel fuel, jet
  fuel and other fuels
• Innovate at the intersection of chemical
  engineering and bio-engineering disciplines, to
  develop a scalable bio/catalytic process to meet
  the fuel needs of the world
• Due to its high reactivity, carbon atoms do not
  usually exist in a pure form, but as parts of
  other molecules
• Hydrocarbons are naturally occurring in fuel
  sources such as petroleum and natural gas
• Gasoline hydrocarbons contain 7 to 10 carbon
  atoms and jet fuel has 10 to 16 carbon atoms

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Conventional CO2 to Fuel

• CO2 is one of the most stable molecules requiring
  a great deal of energy to break apart CO2
• This high energy requirement has made CO2 to fuel
  transformation technologies uneconomical in the
  past
• CO2-to-Fuel transformation has been approached by
  direct photolysis which uses intense light energy
  to break off the oxygen atoms in CO2, or
  chemically reacting CO2 gas with hydrogen to
  create methane or methanol.
• These conventional engineering approaches require
  immense energy due to the high pressure and high
  temperature chemical processes
• In certain applications such as military and
  space, the high cost of these technologies may be
  justifiable
• We do not believe these approaches will be
  economically viable in creating transportation
  fuels for global consumption.

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Innovation in CO2 to Fuel

• By innovating at the intersection of chemical
  engineering and bio-engineering, our scientist
  have discovered a low energy and scalable process
  to transform large quantities of CO2 into gaseous
  and liquid fuels.
• The key to our CO2-to-Fuel approach lies in a
  proprietary multi-step bio/catalytic process.
• Instead of using expensive inorganic catalysts,
  such as zinc, gold or zeolite, with traditional
  catalytic chemical processes, the Carbon Sciences
  process uses less expensive renewable organics to
  catalyze certain chemical reactions required to
  transform CO2 into basic hydrocarbon building
  blocks.
• Of greatest significance, our process occurs at
  low temperature and low pressure, thereby
  requiring far less energy than other approaches.
  
• The biocatalyst employed in each step of the
  process serves to create an intermediate
  carbon-infused compound that can be acted on by
  the next step with less energy.
• At the end of the process, the various
  carbon-infused compounds are assembled into basic
  hydrocarbons such as C1 (one carbon atom e.g.
  methane), C2 (two carbon atoms e.g. ethane) and
  C3 (three carbon atoms e.g. propane).

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Carbon Sciences

• Flow Diagram

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Carbon Sciences CO2 to Fuel

• Scalable CO2-to-Fuel Transformation Plant
• The Carbon Sciences CO2-to-Fuel technology
  includes a plant level process that takes CO2
  from a large emitter, such as a power plant, and
  produces usable fuels as the output.
• When complete the process would include the
  following major components
• CO2 Flue Gas Processor Crude purification of
  CO2 stream to remove heavy particulates. This
  Carbon Science process does not require high
  purity CO2, hence low cost CO2 capture and
  processing.
• Biocatalyst Unit Regeneration of biocatalysts
  for the CO2 transformation process.
• Biocatalytic Reactor Matrix The primary and
  largest part of the plant where mass quantities
  of biocatalysts work in a matrix of liquid
  reaction chambers, performing the multi-stage
  breakdown of CO2 and its transformation to basic
  gas and liquid hydrocarbons. These reactors are
  low temperature and low pressure vessels. The
  number of reactors determines the size and output
  capacity of the plant.
• Filtration - The liquid solutions are filtered
  through membrane units to extract liquid fuels.
  Gaseous fuels are extracted through condensers.
• Conversion and Polishing The output of the
  Filtration stage contains low hydrocarbon fuels
  e.g. C1-C3. These hydrocarbons can be processed
  into higher fuels, such as gasoline and jet fuel,
  through commercially available catalytic
  converters.
• The Carbon Sciences CO2-to-Fuel process can be
  configured to produce a variety of hydrocarbon
  fuels by customizing the Conversion and Polishing
  Unit and biocatalytic formulation

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Biocatalytic

• Flow diagram

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• Carbon Sciences Inc.
• (OTCBB CABN)
• Santa Barbara, California
• www.carbonsciences.com
• 805 456 7000

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