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Company Profile

GLG Life Tech Corporation January 2012

Forward-Looking Statements

Contents
Company Background

Stevia Ingredient Business


2012 Year of GLG Opportunities

AN0C Consumer Products Business


Company Financials

Company Background

GLG Life Tech Corporation

Complete Seed to Shelf Vertical Integration


AN0C Consumer Products All-natural zero-calorie food and beverage products. Initial products to launch across 6 major beverage categories, plus functional drinks and tabletop sweeteners. Innovative Products comprehensive product line-up including high-purity extracts, turn-key solutions and pre-mix formulations Advanced Manufacturing Know-how patented process and separation methodologies and advanced extraction technology Leaf Cultivation - 200,000 farmers contracted across 10 major growing regions in China Patented Seeds - ease and lower cost in scaling agriculture vs seedling approach, and consistency in taste
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Stevia Ingredient Business

At the Leading Edge of Innovation


Process Technology Patents
Already granted or submitted patent applications for: Reb A extraction Reb B separation methodology Reb C separation methodology Reb D separation methodology Steviolbioside separation methodology Process for producing a natural sweetener composition (BlendSureTM) Production of high-volume, high-purity STV Environmentally-friendly waste water treatment Leaf processing extraction device

Seeds & Leafs Patents


Already granted or submitted patent applications for: Huinong One (H1) 60% Reb A content in plant leaf Huinong Two (H2) 66% Reb A content in plant leaf 22% more leaf per acre (vs H1) Huinong Three (H3) 76% Reb A content in plant leaf 46% more leaf per acre (vs H1) Advancing stevia through natural propagation

4 key PCT filed in 2010/2011 to further protect GLG intellectual property rights internationally.

Key Product Innovation RebPureTM (RA) PureSTVTM (STV) Reb C AN0CTM Dream Sweetener Line BlendSureTM (RA + STV)
GLG has received 4 Letters of No Objection from the FDA on core finished products.
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Huinong Series of Non-GMO Patented Seeds


Naturally bred for high Reb-A and STV content
80%

60%

GLG Patented High RA Leaf GLG Patented High STV Leaf Other Stevia Strains on the Market

40% 61.8% 20% 22.9% 0% 2009 India Leaf 24.2% 2009 China Common Leaf 28.2% 35.7% 68.0%

76.0%

76.0%

70.0%

2009 Paraguay Leaf

2009 Canada Leaf

2009 Huinong 1

Huinong 2

Huinong 3

Huinong 4

Huinong 5

High Reb-A Content


Huinong 3 (H3) 76% rebaudioside A content in the leaf, a 26% increase from the H1 strain 46% more leaf per acre than H1 strain Available for planting in 2012 growing season Huinong 4 (H4) 76% rebaudioside A content in the leaf 16% more leaf per acre than H3 Available for planting in 2012 growing season To play role of parents in the advancement of next generation of seeds

High STV Content


Huinong 5 (H5) 70% stevioside content in the leaf Leaf yield between H2 and H3 strains (between 22% to 46% more leaf per acre than H1 strain) Believed to be the highest STV seed available in the world today

To help reduce production costs of GLGs Blendsure line of products


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Our Competitive Advantage: Secure Leaf Supply


Huinong 2 Patented Seeds
10% higher rebaudioside A content than the previous generation (H1). the H2 strain also generates 22% more leaf per acre. GLG has upgraded its varieties company wide and has utilized Huinong 2 at all 10 of the Companys growing bases in China for the 2011 crop season. 20% greater processing efficiencies expected 100% of crop expected for harvest in 2011 has been planted using Huinong 2 seeds.

GLG holds 10- and 20year agreements in multiple provinces for exclusive and protected stevia growing areas

Huinong 3 Patented Seeds

Shandong

76% rebaudioside A content in the leaf, a 26% increase Jiangsu from the H1 strain estimated 600kg of additional stevia leaf harvested per Anhui acre, a 46% increase over H1, which improves land and resource utilization estimated 40% overall leaf cost improvement expected as a direct result of the increased RA content and increased leaf yield Greater processing efficiencies expected On track for use in 2012/13

Growth and supply of 100% own leaf needs using GLG proprietary plant variety no dependence on common market leaf
Agricultural expansion continues and planting now spans across 10 growing areas

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Our Competitive Advantage: Technology


Extraction and Refining
Patented high-purity stevia extraction (China and International PCT) Capable of producing all stevia extracts with purity levels up to 99% (RA, STV, RC, etc) Low cost production
GLG Qingdao Facilities

Annual leaf processing capacity is currently 41,000 metric tonnes. Currently, our Runhai campus has 60 acres and Runyang campus is 80 acres . Currently our refining and purification facilities have a capacity of 3,000 metric tonnes. Phase I of our Runhao campus occupies 60 acres but is scalable to 215 acres, and our Runde campus currently occupies 70 acres. All sites are fully third-party (SGS) certified for GMP, ISO, HACCP, HALAL, and Kosher
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Our Competitive Advantage: Capacity


Leaf Growing 200,000 farmers contracted across 10 major growing regions in China Secondary Processing

Primary Processing

41,000 MT

Intermediate Products, such as RA60

2,000 MT 1,000 MT

High-grade Extracts, such as BlendSure, PureSTV and RebPure

Current Leaf Processing Capacity

Runde

Runhao
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Our Trust Providers

Quality control and food safety is our top priority All facilities meet and exceed global GMP standards Major multinational agricultural, food and beverage companies conduct regular audits, including Cargill, Nestle, Pepsico, and others Facilities are certified on scheduled basis for: ISO9001:2008 Halal Kosher SGS, the worlds largest control and inspections authority

4 FDA Letters of No Objection / GRAS

RebpureTM
rebaudioside A

RebpureTM
rebaudioside A

stevioside

PureSTVTM BlendSureTM

steviol glycosides with rebaudioside A and stevioside

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Our Facilities

Runhao Qingdao, Shandong Purification/Refining


Shandong

Runde Qingdao, Shandong Purification/Refining

Jiangsu
Anhui

Runyang Dongtai, Jiangsu Primary Extraction

Bengbu Bengbu, Anhui Plant Research Centre Runhai Mingguang, Anhui Primary Extraction

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Our Facilities

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GLGs Stevia Extract Products

Steviol Glycoside Content Sweetness Factor vs Sucrose * Heat and pH Stable Total Steviol Glycosides (TSG)

Reb A +STV Blend Available in 50%-80% Reb A content 250x

Available in 95 and 97% Reb A content 300x

Available in 95 and 97% STV content 250x

80% Reb A content

30% - 60% Reb A content

250x

250x

Yes
97% Industrial ingredient or formulated Yes

Yes
97% Industrial ingredient or formulated Yes (2)

Yes
97% Industrial ingredient or formulated Yes

Yes
95% Industrial ingredient or formulated
No

Yes
95% Industrial ingredient or formulated
No

Available Form
GRAS / FDA Letter of No Objection
* approximately

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2011 The Year of Industry Challenges 2012 The Year of GLG Opportunities

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General Competitive Conditions in the Global Stevia Industry


Current
Main challenge has been the difficulties that food and beverage companies are experiencing in formulating with stevia to develop a good tasting product Different levels of players entered the industry: Vertically integrated, Partially integrated (primary or secondary processing only), and Distributors/Brokers Managements assessment is stevia supply > demand in 2011 As a result, pricing is very competitive on large volume opportunities Going Forward European Commission recently approved the use of steviol glycosides as a sweetener in the European market New markets expected to open up soon (India) US consumer products sweetened with stevia continue to expand. According to a August 2011 Mintel study, stevia products in the US is expected to reach nearly $1.2 billion in 2013, up from $439 million in 2010.

According to Datamonitor, for the 12 months to September 2011, more than 300 stevia-sweetened products launched in the US and 630 globally
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GLGs Leadership Position in the Industry


AN0C Stevia Solutions addresses the key issue of formulation challenges experienced by food and beverage companies with stevia
AN0C Stevia Solutions has launched key innovative products to provide complete solutions (Dream Sweetener, Pre-Mixes)

GLGs long term strategy in agriculture is now paying off with the first successful harvest of our H2 leaf and H3 leaf this year. In 2012, GLG moves to a significantly lower cost structure with its patented H2 and H3 leaf, and will be well-positioned to drive industry pricing GLGs new international stevia business sales team established in Vancouver, replacing the US-based sales team which did not perform to expectations in 2011. The new sales and marketing team will drive international sales and support distribution partners in the US, Mexico, South America, Europe, Middle East and India. GLG has doubled the number of their distributors and have added sales agents in some key markets to drive sales.
Low-Calorie Healthy Sugar opportunity in China expected to expand in 2012 GLG is positioned to benefit from the industrys explosive growth anticipated in 2012
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AN0C Stevia Solutions Providing Formulation Solutions to International Customers


Providing Turnkey Solutions to Partners Worldwide
AN0C Stevia Solutions has solved many of the traditional problems associated with formulating with stevia.

AN0C
Food & Beverage Formulation Expertise

GLG AN0C Stevia Separation/ Stevia Solutions Extraction Technical


Know-how

Provides technical help on stevia or actual food and beverage formulations to develop zero or low calorie naturally sweetened food and beverage products Leverages GLG and AN0Cs know-how in creating different types of BlendSureTM to develop the best taste

Stevia Solutions team to drive sales with global customers


Formation of AN0C Stevia Solutions Launch of first product Dream Sweetener Sent out samples of Dream Sweetener and AN0C products to F&B companies in US, EU, Mexico, and South America Direct F&B company visits Projects and product trials

Combining stevia technical know-how with formulation expertise

Turn-key formulations for zero or low-calorie products

Demonstrated aftertaste problem solved

Further product sampling, price quotes and business discussions

Product formulation & taste discussions, and product prototypes submitted

July

August

August/ September

September /October

Current

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The Dream Sweetener Product Line


Dream Sweetener Advantages

RA

STV
Proprietary blend of natural sweeteners
(FDA GRAS certified)
(all FDA GRAS certified)

Tastes like cane sugar, is zero-calorie and has no aftertaste Provides a consistent sweetness for much easier formulation for a food and beverage company Easy to handle, unlike typical highpurity stevia extracts which come in a light powder form

AN0C Dream Sweetener Series *


x10, x30, x60, x100
An all-natural zero-calorie sweetener available in varying levels of sweetness

Can reduce the time-to-market for food and beverage companies since the major formulation challenges (aftertaste & consistency of taste from batch to batch) with high-purity stevia extracts have been addressed through our innovative formulations
Compares favorably to the cost of cane sugar and is more cost efficient at large volumes
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* patent application filed with SIPO in China, with PCT application for International patent protection to follow

AN0C Low-Calorie Health Sugar


Reduced calorie solution to 1/3 of cane sugar ideal for use in food and beverage products
Advantages

Low-calorie
Tastes like sugar Easy to directly replace sugar or any other artificial sweetener Formulating food products much easier
Benefits

Relieve sugar shortage issue Ability to bring low-calorie products to the market quickly

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Dream Sweetener Closely Replicates Sugar Taste Profile


A Comparison of AN0C Dream Sweetener to Sugar

Source:

AN0C can help make formulating your beverage and food products much easier.
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How Our Products Fulfill Customer Needs

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AN0C Pre-mixes
Our simple to use and fast-to-market pre-mixes contain either a low-calorie or zero-calorie stevia sweetener and a flavour pack that can be easily added to any beverage or food products. Advantages Lower or zero calorie Easy to handle and use Turn-key solution for fast-to-market opportunities (complete ready-to-use recipe) Examples of Pre-mix Solutions
Zero-calorie green tea AN0C Stevia Solutions will send two packages AN0C Dream Sweetener AN0C Green Tea flavour package Beverage companies just add water and bottle for their own branded product Low-calorie carbonated cola soft drink AN0C Stevia Solutions will send two packages AN0C Low-Calorie Health Sugar AN0C flavour package for a cola beverage Beverage companies just add water and carbonate, then bottle for their own branded product

Examples of Pre-mix Applications


Customized turn-key solutions, like pre-mix packages that contain a low or zero-calorie sweetener and a flavour package, can be used in a wide variety of beverage and food products:
Foods Dairy (yogurt, ice cream) Baked (cookies, biscuits, breads, cakes) Beverages Teas Carbonated Soft Drinks Dairy Juices 25

Dressings (salad, condiments)


Canned Foods (fruits, meats) Candy (gum, chocolate)

Leaf Improvements from China Common Leaf Through GLG Proprietary Strains
The most important part of the supply chain to control is the Leaf
For both consistency of taste in a stevia extract and cost of stevia extract Leaf accounts for over 60% of the cost of stevia extract products Our patented seeds allow ease and lower cost in scaling agriculture vs seedling approach consistency in taste of stevia sweetener GLG to offer sustainable lower pricing in the industry To produce one metric tonne of RA80 the approximate required amounts of different varietal leafs are:

Metric Tonnes 5

4 3 2 1 0 China Common Leaf Huinong 1 Huinong 2 Huinong 3

4.0 2.5 2.0 1.5

RA Content in Leaf Cost Index*

30%-40% 100

60% 62.5

66% 50

76% 37.5 26

* Index assumes constant cost for leaf and processing

Growing Global Distribution Network

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AN0C Consumer Products Business

TM

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AN0C Consumer Products

TM

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Three Important Stakeholders for the AN0C Opportunity in China

Health
Providing healthy beverage and food alternatives to 1.3 billion consumers, especially those with diabetes or obesity Over USD $21+ billion addressable market size across 6 major beverage categories, 2 functional beverages and tabletop products Growing operations with over 200,000 farmers in 10 growing regions, and expanding

Business
Improving Welfare of Farmers

Agriculture

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AN0C National Coverage


AN0C is the only national all-natural zero calorie beverage brand in China. According to a recent brand survey: >11% of respondents recognized the AN0C brand when placed alongside other leading brands zero-calorie and non-fattening were the key messaging remembered most about the AN0C brand When given the choice to buy one brand of tea, 11% choose AN0C
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TM

As of June 2011, AN0C was in approximately 6,000 KA stores and over 59,000 traditional retail outlets.
AN0C also has 13 regional sales offices
TM

Leverage Success of AN0C Ready-to-Drink Teas and Vitamin Enriched Waters for Future Product Launches
New RTD tea bottles redesigned to differentiate and stand out from the pack: New Bottles, New Packaging and an Improved Taste Zero-calorie tabletop sweetener launched in October

Vitamin enriched waters launched in August into a relatively new beverage category in China, which AN0C expects will need more time to grow and gain traction Upcoming products include:

functional drinks herbal tea

carbonated soft drinks

juice milk

childrens drinks
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Key Contacts

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