Stanley, Wisconsin This facility will produce: a) over 400,000 tons/year of one of its Nutri-Ferm™ feed supplements, FermentaGain™, which is a high quality, nutrient rich feed product that demonstrates superior growth and improved feed conversion characteristics in poultry and other monogastric (single stomached) livestock; and b) over 55 million pounds/year of fermentation crude glycerine that will be shipped to the Iowa Plant for refining.
As an adjunct to the operation of the Wisconsin Plant, NATUSA will use the “Excess DDG” from the dry mill ethanol plants (the “Off-Site Ethanol Plants”) that supply raw materials to the Wisconsin Plant to produce over 750,000 tons/year of another of its Nutri-Ferm™ products, AdvantaGain™, at those Off-Site Ethanol Plants by a simple mixing/blending process with proprietary feed additives.

The Nutri-Ferm™ products are all natural, high quality feed ingredients.

Each of them is a proprietary product developed by Natural Chem. Of these products 406,000 tons/year of FermentaGain™ will be produced at the Stanley Natural Nutrients Plant. Ten percent (10%) of the FermentaGain™ will be blended with high quality DDG to produce 750,000 tons/year of AdvantaGain™. The Stanley Plant has the capability to produce several thousand tons/year of Energy Plus™ and ImmunoGain™ for market development purposes. For feed label purposes, the Nutri-Ferm™ products are custom formulations or mixes. We do not make any drug type claims for these products that would result in FDA control or regulation of our product other than compliance with good manufacturing practices which avoid adulteration of the products. However, we can state on the labels or packaging, based on actual test work results, that the products offer “Natural Support For Immune System Function” or “Natural Support For Improved Weight Gain and Feed Conversion.” Like vitamins and health supplements you can buy at virtually any grocery store, we likely would add a statement somewhere on our packaging that: “These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure or prevent any disease.” Below is information about several of the specific Nutri-Ferm™ products developed by Natural Chem and the suggested use of each product.

This product is targeted to poultry producers where it offers better weight gain and feed conversion. This is the product that we will produce in Phase I at the Stanley Natural Nutrients Plant. This product is a 50/50 mix or blend of our Energy Plus™ formulation and non-heat damaged distillers dried grain (not DDGS). It use is recommended at 5% of the total mixed ration (TMR) fed broilers or turkeys (or swine or cattle). 5% FermentaGain™ provides 2.5% Energy Plus™ to the TMR.

This is a dense nutrient product with about 36% protein and 22% corn oil. It serves as a key ingredient for several other of our Nutri-Ferm™ products, such as FermentaGain™ and ImmunoGain™. Its use is recommended at 2.5% of the total mixed ration (TMR) fed broilers or turkeys (or swine or cattle). This product is the key to the better performance of all of the products in which Energy Plus™ is included. It contains a nutraceutical which is one of nature’s most powerful immune system stimulators. The immune system stimulation enables the animals to maintain their health at a peak level resulting in better weight gain and improved feed conversion. The immune stimulation effect of Energy Plus™ has been documented by research at Purdue University. The better weight gain and improved feed conversion in broilers and turkeys have been documented in studies at the University of Georgia.

This product is a combination of Energy Plus™ and Ester Vitamin C. We and Roche Vitamins collaborated to test this product at Purdue University. Purdue has documented that it offers superior immune system stimulation helping to keep the animals healthy with the result being the better weight gain and well being. The amount of Ester Vitamin C required is small, based on the recommended dosage by Roche. Purdue tested ImmunoGain™ in baby pigs, dairy calves and young dairy cattle, including some environmental and transport “stress” testing. This product would be targeted for inclusion in the starter diets of baby pigs and dairy calves, which is a very high value market due to the industry’s reliance on whey protein as a key ingredient in the standard starter diet formulations.

AdvantaGain™ is our high quality, nutrient preserved ingredient with a nutraceutical additive (a highly concentrated form of ImmunoGain™). It is targeted to both the cattle and poultry markets. It is not heat degraded as we do not mix any syrup with it before drying, syrup is the ingredient that leads to the heat damage in the feed products produced by all current dry mills as the syrup contains about 35% glycerine and lactic acid (dry matter basis) which both inherently resist drying as they are pancake syrup like substances. This resistance to drying means the dry mill plants have to run their dryers at higher temperatures, or recycle the DDGS several times through the dryer, before it is dry enough. This causes the heat damage resulting in poor performance by such products in monogastric diets. AdvantaGain™ will be produced at the Off-Site Ethanol Plants that supply raw materials to the Stanley Natural Nutrients Plant.

We have produced DairyGain™, which is high in protein (38%), calcium (5%) and phosphorus (2.5%), and tested it with Purina Mills as an ingredient in dairy rations with favorable results, i.e., equal yields of milk on a fat corrected basis compared to the control diet. In our early test program, we called this product Protein Plus™. A lab analysis report for it is attached. We also did some key analytical, laboratory test work at University of Georgia’s Dairy Science Department with Dr. Scott Martin to document DairyGain™’s impact on the rumen bacterial lactate uptake. DairyGain™ is not an immune system stimulant as are FermentaGain™, Energy Plus™ and ImmunoGain™. Rather, we formulate it and process it to be very rich in a key organic acid, malic acid, which Dr. Martin has researched for more than 15 years. He has documented that malic acid can replace or limit the use of ionophores and hormones in cattle rations, beef or dairy, to improve the uptake of lactate by the rumen bacteria which increase milk yield and weigh gain. We will not produce this product at the Stanley Plant as it is not derived from syrup produced by dry mill ethanol plants. However, we expect to add it in the future to a Natural Nutrients Plant, at least on a limited scale, to help build the market. In DairyGain™ we appear to have the single best source of malic acid for use in cattle rations. Dr. Martin had been testing alfalfa and others grasses as the likely source of the malic acid for his test program but he was able to document by laboratory analyses the high level of malic acid in DairyGain™.

LayerGain™ is similar to DairyGain™ but we use the LayerGain™ name when the target market is egg layers. Given its high level of calcium and phosphorus it would be an excellent ingredient in egg layer diets. A key is that our calcium is calcium lactate which is much more bioavailable to the layer hens than is the calcium in other products such as ground limestone or dicalcium phosphate. There is much food for thought (no pun intended) in the platform we have developed to produce a broad slate of Nutri-Ferm™ products for value-added use in livestock, poultry and aquaculture.