Investor Update 19 September 2012 ALGAE.TEC AND LUFTHANSA SIGN COLLABORATION AGREEMENT TO BUILD BIOFUEL PRODUCTION FACILITY IN EUROPE Algae.Tec Limited is pleased to announce that Algae.Tec and Lufthansa have signed a Collaboration Agreement for the construction of a large-scale algae to aviation biofuels production facility. The site will be in Europe adjacent to an industrial CO2 source. Lufthansa will arrange 100% funding for the project. Algae.Tec will receive licence fees and profits from the Project, which will be managed by Algae.Tec. As part of the Agreement, Lufthansa commits to a long-term offtake agreement of at least 50% of the crude oil produced at an agreed price The agreement forms the base for a long-term cooperation between Algae.Tec and Lufthansa for the industrial production of crude algae suitable for conversion into aviation kerosene and conventional diesel fuels. The Agreement states: "Both parties will jointly develop a large-scale industrial algae oil production plant based on Algae.Tec's technology and operating support, and Lufthansa's offtake commitment for such algae oils." Algae oil produced by the Project shall fulfill at all times the EU Renewable Energy Directive ("EU-RED") and shall be certified according to ISCC -Standard. This agreement builds on and supersedes the MOU signed between the two parties in January 2012. It is subject to final Board approval of both parties and the final sign off for the algae oil conversion into aviation kerosene. A final feasibility report will be completed once the first site has been selected.           See algae to aviation fuel video here.  See more Algae.Tec images from the ILA Berlin Airshow and the dedicated Alternative Aviation Fuels Pavilion here. ILA Berlin Airshow meetings and media reports Algae.tec was profiled in some of the world's leading aviation media at the Berlin Airshow. They included Aviation Week, Flight Global, and BlueSky as well as the influential Show Daily. Please see some of the reports here. Algae.Tec was also represented on key sustainability and biofuels panels and met with dignitaries including the German Agriculture Minister and leading aviation industry biofuels executives and investors.