VG Energy Inc. is an alternative energy and agricultural biotech company that is a majority-owned subsidiary of VG Life Sciences Inc., a biotechnology company researching new treatments and methods of detection for diseases including cancer, HIV/AIDS and others. Using its Metabolic Disruption technology (“MDT”), VG Life Sciences’ cancer research led to discoveries with major consequences in a wide variety of other industries, including bio-fuel and vegetable oils. VG Energy Inc. holds the exclusive worldwide rights to the licensed MDT patents for use in the increase of production of various plant-derived oils including algae and seeds. Importantly, these pivotal discoveries promise to allow the biofuel industry to overcome its major obstacle in the area of production efficiency: namely an increase in production yields leading to feasible economic returns on investment allowing renewable biodiesel to be competitive with fossil fuels.

“VG Energy Inc. seeks to improve the effectiveness and efficiency of global bio-fuel and agriculture producers through the discovery and development of sustainable, functional and renewable oil-producing plants for the global energy and food markets.”

The VG Solution

VG Energy Inc’s proprietary compounds and process, which includes issued and pending patents, provide accelerated and increased oil production in plants of all types leading to opportunities in two key industries:

Energy: Our product can increase the yields of algal oil by up to 300%, dramatically enhancing productivity. We are in the process of commercializing with existing producers. Commercialization is currently centered on scaling up the use of our compounds from small batches to industrial mass production environments with various partners in the energy industry. The promise is that of a sustainable, functional and renewable source of refinable oil for global industry.

Agriculture: We are researching and developing the use of our compounds for enhancement of yields in various edible oils such as palm, soybean and sunflower. By doing so, the productivity of key food supplies is increased bringing benefit worldwide.

Strategy

VG Energy Inc. (“VGE”) is positioned to take advantage of immediate, high-value opportunities in the biofuel and agricultural industries through its key issued and pending patents, as well as certain trade secrets, concerning our Metabolic Disruption Technology. This MDT technology can improve the productivity of current processes. The company expects that additional near-term research results will generate numerous additional high-value opportunities in both industries.

The biofuels opportunity is driven primarily by concerns over the availability and cost of new supplies of refinable crude oil. The trend in recent years is for declining reserves and significantly higher cost of exploration for new oil supplies. This, in addition to near-universal concerns over climate change, energy dependence, and food prices (which suffer via competition with ethanol producers for farmland as well as increased transportation costs), has led to the search for alternative sources of energy.

In the US, the relevance of alternative energy is heightened by federal legislation mandating seemingly unattainable production volumes by 2022. A third generation biofuel, algae lipids has become a front-runner in the race to solve the aforementioned economic, environmental and social challenges. To date, however, major chemical companies, agricultural scientists and algal oil producers have not been able to achieve sufficiently high levels of productivity to allow their oil production to be economically competitive with high-cost traditional crude oil from fossil sources.

VGE’s Metabolic Disruption Technology is the solution to overcoming the limits of current production techniques. Through manipulation of algae cells’ internal metabolism and storage of fats, our compounds can increase oil yield without causing cell damage or employing dangerous chemicals. Preliminary discussions with key stakeholders and market participants indicate that the technology holds great value.