🕐18.05.11 - 23:27 Uhr

AGRIMARINE APPLIES INNOVATION AND ENVIRONMENTAL CONSCIOUSNESS TO ADDRESS MASSIVE
GLOBAL DEMAND FOR FISH






AgriMarine applies innovation and environmental consciousness to
address massive global demand for fish

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Fish farming (or aquaculture) is the fastest growing segment within the global agribusiness sector with a compound annual growth rate of 9%. In the 60-70s, aquaculture represented only 6% of total seafood consumption. Today, it represents 43% and is expected to rise to 50% by 2024 representing a market of over $100 billion US.

FACT: Over 70% of natural fish stocks are fully or severely depleted

With global fish consumption increasing year over year and government imposed quotas over natural fishing due to excessive exploitation, aquaculture is the answer to address the increase in demand for fish created by global population growth and a general increase in fish consumption from another growing segment - the health conscious consumer. In fact, the aquaculture segment is growing more rapidly than all other animal-producing sectors worldwide.

That said, aquaculture is a broad term that generally refers to any manner of fish farming - and not all aquaculture practices are equal. Conventional aquaculture methods such as net cage rearing and land-based closed containment have several issues. Net cage rearing involves the placement of large metal or mesh cages in the ocean that negatively affect the surrounding habitats through use of antibiotics and pesticides among enclosed populations to fight disease, poor water quality and algae impacts, pollution from concentrated fish waste, and the risk of escaping fish which can spread disease to wild species. The alternative, land-based closed containment, while addressing many of the issues presented by net cage farming is a much more expensive alternative with high energy operating expenses. AgriMarine has an opportunity to transform the fish farming industry with the use of safe, fully enclosed systems that are cost effective and promote environmental sustainability.

SOLUTION: Next Generation Aquaculture�Solid-Wall Containment

AgriMarine Holdings Inc. (FSH:TSX-V) is a development-stage company in the process of commercializing a disruptive and proprietary technology using solid-wall closed-containment technology for growing Atlantic and Pacific salmon. The Companys two projects in Middle Bay, Campbell River in British Columbia, and Benxi, China are revolutionizing the aquaculture sector with the installation of fish farming systems in close proximity to high-demand consumer markets to guarantee freshness and better address the growing global demand for fish.

Key Benefits to Solid-Wall Containment:

Maximizes fish health by monitoring and adjusting water intakes to regulate and optimize tank water temperature. Prevents risk of fish escape, thus reducing the potential of contaminating wild species of fish and more importantly protection from their predators. Environmentally friendly waste removal process that eliminates undesirable pollution to the local marine eco cultures, the end result is a compostable, biodegradable fertilizer. Eliminates need to use, pesticides commonly found in net cage farms and the ammonia removal technologies required for land based systems. Reduces the need for antibiotics. Minimizes carbon footprint through use of green hydroelectric power Opportunity to use systems to raise other warm water fish such as tuna, yellow croaker and many other fin fish.

AgriMarines fish is a growing viable commercial product with huge interest being generated in Asia. Those of us living in the West often take for granted how attainable fresh Salmon is. Salmon that is flown into China has an expected time of arrival in the range of 7 to 10 days because of the 5 day Quarantine process currently imposed on imported seafood. Fish farming Salmon was non-existent in China until the implementation of the AgriMarine closed tank system. These systems now enable the Chinese market to have more rapid access to the popular fish, which is largely imported from Scotland and Norway and significantly more costly.

AgriMarine has been able to resolve the negative impacts that the environment has been feeling for such a long period of time surrounding fish farming, and bring the aquaculture industry into a positive light with the promise of better technology, better products and a healthier approach to giving the consumers what they demand.

AgriMarine is poised for growth at a very attractive rate given the increasing global demand for fish, quotas restricting fishing of wild species, and the rapid potential for scalability of their unique tank systems. AgriMarines existing operations, consisting of 3 tanks in China and 1 tank in Canada, enables the company to produce 200 tonnes per tank of fish that are sold to key markets. The Company plans to implement 6 more tanks in China over the next 8 to 12 months, which will increase production to approximately 1200 tonnes and generate an estimated $8.4 M in revenues. More importantly, AgriMarine has entered into a joint venture expanding their reach into Norway where the epicenter of fish farming is. Norway makes up 60-70% of the total global farmed salmon market both in terms of tonnage and value. With the industry under severe environmental scrutiny surrounding net cage fish farming, AgriMarine will provide an alternate eco-friendly option for fish farming in Norway. The large ratio of this rapidly growing global business in Norway is currently worth about $7 Billion, but its at the expense of the environment where net cage farming continues to produce parasites, escapes and other diseases.

Key Attributes:

Aquaculture is one of the fastest growing food production sectors and sources of animal protein in the world, accounting for almost half of the worlds food fish Global demand for fish is increasing FSH named top clean technology company in the TSX Venture 50 2011 rankings. Patented technology AgriMarines attractive yet scalable business model that provides a recurring revenue stream since fish are harvested in scalable cycles that never stop. Compelling valuation

Lets think back a few years to the documentary Who killed the Electric Car, well General Motors in fact did kill the electric car and didnt want it to succeed for many reasons that later became apparent to the "general" public. The same theory can be made for closed containment eco-friendly fish farming, but we are in a time where the environmental impacts are far greater than what GM did with the electric car and as this technology threatens to collapse the Norwegian open net cage industry, closed containment fish farming will continue to grow exponentially year after year.

What makes sustainable aquaculture a compelling and prevalent sector?

1. Output from Wild Fisheries in Peril - "We are fighting a war against fish, and we are winning," according to Dr. Daniel Pauly, a professor at the University of British Columbia, Fisheries Centre and Zoology Department. Dr. Pauly also recently appeared in the documentary "The End of the Line". Over 75% of the worlds commercial species are now fully exploited, overexploited, depleted, or recovering from depletion, reports the Food and Agriculture Organization of the United Nations. Other forms of animal-protein, such as beef, poultry and pork were domesticated over four thousand years ago and this has just begun in the seafood industry, at scale, over the past few decades.

2. Expanding Global Seafood Demand - World per capita consumption of fish and fishery products has risen by 50% in the last decades from an average of 11.5 kg during the 1970s to over 17 kg today.

3. Food Security - In 2008, imports made up 83% of the seafood consumed in the U.S. mostly from countries with practices that are under-regulated and far from sustainable. It is nearly impossible to trace the origins of imported seafood. In contrast, sustainable aquaculture enables local production (which also means fresher produce), year-round availability, and a higher degree of traceability.

4. Fish Consumption is an Efficient & Sustainable Protein Source - In animal husbandry, one of the key efficiency measures is the feed conversion ratio (FCR). The FCR measures feed fed/weight gained for various animals. This ratio is determined by the biological ability for animals to convert food into tissue. The FCR for sheep and cattle is 8:1, pigs 4:1, poultry 2:1, and fish (Atlantic salmon or tilapia) ~1.5 :1.

5. Safety & Health Concerns - Many people are unaware of the full range of potential contaminants in seafood. Fish species that are high on the food chain, such as tuna or swordfish, accumulate greater concentrations of toxins and pollutants. This problem also applies to aquaculture since the main source of protein for farmed fish is fishmeal produced from smaller, wild caught fish, which can contain mercury, PCBs or other containments. Within sustainable agriculture, there are companies creating fishmeal that derives its protein source from plant-based materials instead of fish.

6. Scale - The seafood industry is seeking sustainable aquaculture technologies that can scale at cost parity with the existing incumbent technologies. Technologies such as land-based recirculation aquaculture systems (RAS) have not proven to be cost competitive with incumbent methods or are poised to become so. RAS grows fish in large quantities "indoors" under controlled conditions. AgriMarines system is scalable and cost competitive with the current industry.

7. Opportunity to Innovate - The following are promising next generation solutions for sustainable aquaculture: advanced, closed-loop land-based RAS systems, floating closed containment systems, plant-based protein for replacement of fishmeal, nutrition formulations that replace nutrients found in fishmeal, technologies for conversion of fish waste to biomass and fertilizer, biofiltration for closed-loop systems, and deep-water farming. These innovations have the potential to ripple through the industry and reshape the seafood industry and the industrys suppliers.

8. More Customers Are Demanding Sustainable Products - An increasing number of restaurants, retailers and food processing companies are looking to source seafood from sustainable providers. The Wall Street Journal recently reported that McDonalds, Long John Silver and Red Lobster have embraced the growing movement toward more eco-friendly seafood-buying practices.

9. Local is the New Organic - The concept of �food miles is a measure of the distance that a food product travels from harvesting to where it is sold. For fish, food miles is often 2x to 3x greater than typical produce (1,500 miles) because fish are often caught and processed in very different locations. AgriMarines systems can be installed closer to where products are consumed, and can significantly reduce food miles, transportation costs and simultaneously improve freshness.

10. Global Warming Effect on Wild Fisheries - Scientists believe extra carbon in the atmosphere is causing a decrease in the oceans pH (known as "acidification") which can negatively impact sea life. While computer models can provide clues as to what the rising ocean temperature and carbon absorption may mean to fish, the interactions of those variables is uncertain and therefore the ultimate outcome is unknown.

MANAGEMENT

Richard Buchanan, (President & CEO) - Mr. Buchanan became President in 1990. He has over 26 years of experience in the agriculture and fishery industries. Formerly he was the President and Founder of Agrodev Canada and Envirocon Pacific, responsible for agriculture, fishery, and pulp waste treatment developments.

Frank Guo (CFO, VP Finance) - Mr. Guo has extensive experience in corporate finance, business planning, taxation, corporate governance, public relations, and cross-border transactions. Formerly he was CFO of Daytek Electronics, a division of Daewoo International, accounting manager of Canadian Tire, an auditor with the Australian Audit General, and a
University lecturer in China.

Sean Wilton (President, Agrimarine Industries & Benxi Agrimarine Industries) - Mr. Wilton is a professional engineer and has worked with AgriMarine since 2004. He has over 15 years of experience in environmental engineering, construction, and aquaculture industries.

THE BOTTOMLINE ON AGRIMARINE

The confluence of declining wild fish stocks, increasing global seafood demands, problems with conventional aquaculture and the emergence of new technologies are progressively propelling sustainable aquaculture forward. Sustainable aquaculture offers many economic and product benefits such as consistent harvest, scalable business operations, lower transportation costs for locally produced seafood, and contaminant free products which is the most important environmental impact. For the right innovators like AgriMarine and investors like you and I, this sector and company alike will be growing exponentially - much like the Salmon in their new eco-friendly floating closed containment tank homes.



You can follow AgriMarine at FSH:TSX-V

Sources:

Wall Street Journal, FAO News Room, The Common Sense Canadian, Research Capital

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