Two Rivers Water & Farming — Investor Presentation (December 2016)
27 slides from Two Rivers Water & Farming's investor presentation, Dec 14, 2016
Slide 1: Two Rivers Investor Update
LE Two Rivers Ticker: OTCQB - TURV Eno Rivers
Slide 2: Company Safe Harbor Statement
COMPANY SAFE HARBOR STATEMENT The nature of the Company's (GrowCo, Ine. and Two Rivers Water & Farming Company) operations and the environment in which ic operates subject it to changing economic, competitive, regulatory and technological conditions, risks and ‘uncertainties. In connection with the
Slide 3: Agenda
AGENDA + Introduction to Two Rivers Water & Farming + 2016 YTD in Review * Creating a New Future — Our Three Strategic Thrusts I= ‘Two Rivers Investor Update ~ December 2016
Slide 4: Introduction to Two Rivers
= INTROBUST oS Two Rivers operates a revolutionary n¢ for arid regions in \ the naestem ‘We believe in the strategic va er assets for development of greenhouses and = = ¢ ep ey Investing in our water as: the areas we serve through deve gement and delivery LE Iwo Rivers Investor Update ~ December 201
Slide 5: Current Operations
CURRENT OPERATIONS Farming + 2016 setting records + Hemp opportunities + GrowCo + Greenhouse | — Construction completed and rented, 105,000 square feet - $40/sq ft/year/ NNN + Greenhouse Il - Targeted completion January 31, 2017 + Water — Board level task force Investor Update ~ December 2016
Slide 6: TURV Historical Stock Prices
TURV HISTORICAL STOCK PRICES $3.00 Market Cap: $15M (12/2/16) = tf May 2007 2008 «=—-2009S 2010» 2011S «2012S «2013'S «2014S 20152016 High Low ® YE Close Investor Update — December 2016 LE Iw 1!
Slide 7: Statement of Operations History
STATEMENT OF OPERATIONS HISTORY $K $5,000 a a $0 ay | an $5,000 = 2014 = 2015. | 2016 YTD -$10,000 -$15,000 -$20,000 WTotal Revenue Mi Total Operating Expenses _™ Net (Loss) LES Two Rivers Investor Update ~ December 2016 tk & PARSING
Slide 8: $K Revenue History
$K REVENUE HISTORY $3,000 $2,500 $2,000 $1,500 $1,000 $500 1 so —_ 2011 2012 2013 2014 2015 2016 YTD =Farm Water m™Other Investor Update ~ Decernber 2016 Eb Rivers
Slide 9: What's Different
WHAT'S DIFFERENT New leadership Examining each asset — how do we monetize? + Sale Investment + Three strategic thrusts + Irrigated farming + Greenhouses and infrastructure for cannabis growers + Water Investor Update ~ December 2016
Slide 10: New Leadership
NEW LEADERSHIP Wayne Harding, CPA, CGMA + CEO/CFO and Chairman, effective June 2016, CFO since 2008 + Past president of the Colorado Society of CPAs and past member of the American Institute of CPAs Governing Council Bill Gregorak + VP of Finance and Accounting, June 2016 + Extensive experience with
Slide 11: GrowCo greenhouse complex build-out
When fully built out, the complex will have three 90,000 sq ft greenhouse facilities and three 15,000 sq ft warehouse and extraction processing facilities. 3X yield @ 1/3 cost over traditional warehouse production Plan is to spinoff into separate public company Profitable and cash flow positive in 2
Slide 12: Site Plan
Slide 13: Water Is Scarce Because It Is Badly Managed
“WATER IS SCARCE BECAUSE IT IS BADLY MANAGED” ECONOMIST, NOV. 5, 2016 so Water well in Western’ India
Slide 14: Legend
Legend a cree
Slide 15: Two Rivers' Water System
TWO RIVERS’ WATER SYSTEM w
Slide 16: Opportunities to Monetize Assets
OPPORTUNITIES TO MONETIZE ASSETS |. Cucharas dam/reservoir 2. Orlando Reservoir/Crown Valley water taps 3. Hemp/marijuana land & water lease 4. Sales of land for residential use Investor Update - December 2016 LEZ Iwo Rivers
Slide 17: #1, Cucharas Dam/Reservoir
| | | #1, CUCHARAS DAM/RESERVOIR
Slide 18: Slide 18
Slide 19: #1, Cucharas Dam/Reservoir
#1, CUCHARAS DAM/RESERVOIR + Capital Requirements $42M + $2M - existing dam breach (Q! 2017) + $30M - construction of new dam Q3 2017 to Q2 2018 + $7M - debt retirement + $3M - working capital and professional fees + Debt Service - $2.7M/yr. (30 years, 5%) Investor Update ~ December 2016
Slide 20: #1. Cucharas Dam & Reservoir - 1987
Slide 21: #1, Cucharas Dam/Reservoir - Returns
#1, CUCHARAS DAM/RESERVOIR - RETURNS + 35,000 AF reservoir + $500/AF/YR storage fee + 10,000 AF municipal demand identified ($5.0M annual revenue) + Dam valuation after completion $175M (35K AF * $5K/AF) + Other demand: + Ranch & traditional farming + Marijuana & hemp growers + Commercial and reside
Slide 22: #2, Orlando Reservoir/Crown Valley Water Taps
#2. ORLANDO RESERVOIR/ICROWN VALLEY WATER TAPS _
Slide 23: #2, Crown Valley Water Taps
#2, CROWN VALLEY WATER TAPS + Initial Capital Requirements $250K (water usage change) + Capacity estimated to be 8,000 AF + 3 taps per AF + $6,500 per tap (contractual price) + $156,000,000 potential project revenue + Cost per year - negligible + Returns + 2018 —250 taps = $1,626,000 + 2019-400 taps
Slide 24: #3, Outdoor Cannabis/Hemp Growers
#3, OUTDOOR CANNABIS/HEMP GROWERS DEMAND FOR IRRIGATED LAND + Pueblo County — “The Silicon Valley of Marijuana Growers” + Demand for additional growing acres with water for cannabis and hemp is strong (Huerfano Lake) + Market leasing price - $5,000/acre + Capital requirement - $25,000 + Annual reven
Slide 25: #4, Sale of Unused Two Rivers Land for Residential Development
#4, SALE OF UNUSED TWO RIVERS LAND FOR RESIDENTIAL DEVELOPMENT + Two Rivers owns 2,584 acres of land in Colorado's El Paso County + Opportunity: + Significant demand has been identified for 35-40 acre Parcels + Capital requirement - $50,000 + Annual revenue - $500,000/year for 5 years Investor Updat
Slide 26: Summary
SUMMARY + Farming business - higher value crops + Greenhouses Finish the Pueblo site plan Expand as capital becomes available + Potential spinoff into separate public company Profitable and Cash Flow Positive in 2017 + Water asset now a focus with 4 identified projects + Total project capital - $43M
Slide 27: Two Rivers
LE Two Rivers Ticker: OTCQB - TURV Eno Rivers
TWO RIVERS WATER & FARMING — Investor Presentation (December 2016) on 6ix