Novo Grass Roots Research Report

!
www.grassrootsrd.com Telephone: (415) 454-6985
!
June 30, 2009

Symbol NVNC
Exchange NASDAQ
Recommendation BUY
Current Price 0.20
52 Week High/Low 0.25/0.03
Avg daily volume (3 mo.) 9,000
Shares Outstanding 24.92M
Current Market Value 5.00M
Beta (36 Month) Average 2.90

Cohen!Price!Target!Index in!$
Cohen!Short"Term!Price!Target!Index !! !0.36
Cohen!Medium"Term!Price!Target!Index !! !0.71
Cohen!Long"Term!Price!Target!Index !! !1.25

INVESTMENT THESIS AND RECOMMENDATION
Novo Energies Corporation (OTCBB: NVNC) is an exciting renewable energy company. The
Company, through its subsidiary WTL Renewable Energy Corporation, has developed and designed
an effective and novel proprietary process which combines thermolysis and gasification to transform
plastics and tires to liquid fuels. This will ensure positive fuel plant conversion economics because
gasification is likely to reduce the energy required to convert waste to liquid fuels. Secondly, use of
plastics and tires also ensures abundant raw material supply. Both these factors should boost the
Company’s margins. On our top-line scenario, we expect the Company to benefit from multiple
sources of revenues including sales of liquid fuels and other by-products.
The Company intends to become a leader in the waste to energy industry. The alternative energy
industry is likely to grow exponentially over the next couple of decades as a major worldwide
impetus is provided to reduce depletion of natural resources and reduce dependence on foreign oil.
Revenues are expected to grow from $5.7 million for FYE March 31, 2010 to more than $570.0
million by FYE 2016. The Company will have to raise cash to reach our forecasts. We believe Novo
Energies is a compelling opportunity for risk-averse investors.

Copyright © 2009 by Grass Roots Research and Distribution, Inc. All rights reserved. This report may not be reproduced.

Grass Roots Research and Distribution, Inc.
!
EXECUTIVE SUMMARY

! Novo Energies Corporation (OTCBB: NVNC) is focused on converting plastics and tire waste to
liquid fuels such as diesel, gasoline and fuel additives, thus expanding its presence in the alternative
energy industry.

! The Company plans to build small local industrial plants designed to transform residual plastics and
tires to valuable liquid Low Carbon Fuels such as diesel, gasoline and fuel additives.

! The Company’s subsidiary, WTL Renewable Energy Corporation, has developed and designed an
effective and novel proprietary process which combines thermolysis and gasification to transform
plastics and synthetic tires to liquid fuels such as diesel, gasoline and fuel additives.

! The U.S. government is encouraging more economical renewable energy sources due to its growing
concern over the impact of conventional fuels on the environment. These concerns, coupled with
factors such as depleting oil reserves, combine to drive demand for renewable energy sources.

! Spurred by growing political concerns in Middle East, increase in demand for oil from developing
nations and rising oil prices, have led to alternative fuels quickly becoming vital to domestic energy
supplies.

! As a result, the projected growth for this new and exciting business opportunity of conversion of
waste-to-liquid fuel is estimated at 10% to 50% per year. Novo Energies plans to capitalize on this
impending growth in demand for alternative fuels.

! The Company is in a better position to benefit from the projected growth in demand for alternative
energy sources, as it plans to use the abundant supplies of plastic and tire as its raw material sources.

Financial Forecasts and Valuation

! We project revenues of $5.7 million for FYE 2010 and more than $570 million by 2016. These
projections are based on the Company’s plant construction schedule, sustained level of capital
expenditure and pipeline of opportunities. The Company will have to raise cash to meet our
forecasts.

! Our short-term price target of $0.36 is derived using the multiple based valuation approach which
uses the Price-to-Earnings and Price-to-Book Value ratios. This represents an upside potential of 80%
over the current market price of $0.20.

! We have our targeted multiple approach of valuation to derive our intermediate term price target.
Based targeted Price-to-Earnings and Price-to-Sales ratios and Base Case financial forecasts, the
Novo common stock is valued at $0.71.

! We have valued the stock using our Discounted Cash Flow (DCF) method to arrive at long-term price
target of $1.25, reflecting forward P/E multiples of 29.5x and 16.3x our estimated FYE 2010 EPS and
FYE 2011 EPS, respectively.

Page 2 of 19

!
ABOUT THE COMPANY

Novo Energies Corporation (OTCBB: NVNC) is focused on expanding its presence in the renewable
energy sector by developing and implementing solutions and technology. The Company’s mission is to
develop such solutions while maintaining its commitment to conserve energy, natural resources and help
reduce pollutants and unwanted biological agents. The Company’s subsidiary, WTL Renewable Energy
Corporation, has developed and designed an effective and novel proprietary process which combines
thermolysis and gasification to transform plastics and synthetic tires to liquid fuels such as diesel,
gasoline and fuel additives. The Company plans to build small local industrial plants designed to
transform residual plastics and tires to valuable liquid Low Carbon Fuels such as diesel, gasoline and
fuel additives.

UNDERSTANDING WASTE-TO-LIQUID SOLUTION

Waste-to-Liquid (WTL) or energy-from-waste (WtE) is the process of creating energy in the form of
electricity or heat from waste sources. It is a form of energy recovery that produces electricity using
various processes such as:

! Gasification (produces combustible gas, hydrogen, synthetic fuels)
! Thermal Depolymerization (produces synthetic crude oil, which can be further refined)
! Pyrolysis (produces combustible tar/bio-oil and chars)
! Plasma arc gasification (PGP) or plasma gasification process (produces rich syngas including
hydrogen and carbon monoxide usable for fuel cells or generating electricity to drive the plasma
arch, usable vitrified silicate and metal ingots, salt and sulphur)

ADVANTAGE OF WASTE-TO-LIQUID SOLUTION

These non-polluting waste-to-Low Carbon Fuels facilities will be able to provide energy to nations
seeking independence from petroleum-based fuels, while also helping solve those nation’s
environmental problems. The exhibit below highlights the advantage of waste-to-liquid opportunity
when compared to other conventional source of energy:

Page 3 of 19

!
Figure 1: Overview of Competitive Advantages of WTL Solution

Source: Company Presentation

! Renewable Source of Energy – produced from plastic and tire waste
! Superior Economics – when compared to other renewable energy sources, waste-to-liquid is a
cost effective source of energy
! Abundance Raw Material Supply – unlike other raw materials used for renewable energy, this
solution uses plastic and tire wastes which are readily available
! Landfill Development – dramatically extending the useful life by radically reducing the volume
of recyclable waste being dumped and ultimately reducing the size of the existing landfill
! Reducing Foreign Oil Dependency – providing self-sufficient fuel sources of synthetic fuels in-
country
! Local Economics – creating local jobs, development of economically disadvantaged, generating
tax revenue to the community and energy savings for consumers.

Page 4 of 19

!
COMPANY BUSINESS MODEL

Novo Energies plans to use plastic and tire as raw material to convert the same to liquid fuels provides
two-fold advantages as shown below:

Figure 2: Waste-to-Liquid Opportunity - Advantages


The Company’s business model is based primarily on revenues from the sale of fuel and other by-
products such as steel plates and carbon black.

Page 5 of 19

!
Figure 3: Proposed Business Approach


The key to Novo’s business model is the use of right technology and process. The Company proposes to
combine the gasification and thermolysis processes in a novel manner as it will be able to achieve the
desired level of fuel production with initial levels of energy required for the process being generated
from gasification.
Figure 4: Plastic Waste-to-Liquid Fuel Process


Page 6 of 19

!
Figure 5: Tire Waste-to-Liquid Process


Page 7 of 19

!
COMPANY GROWTH DRIVERS
Figure 6: Novo’s Growth and Value Drivers

Unique! Huge! Experienced!
Innovative!
Business! Industry! Management!
Technology!
Model Opportunity! Team!
•Conversion!of!plastic! •Company!plans!to! •World!energy! •Proactive!and!
and!tire!waste!to! use!a!combination!of! demand!expected!to! forward!looking!
liquid!fuels Gasification!and! grow!by!44%!over!the! management!team!
•Reduces!waste!and! Thermolysis. period!between!2006" with!significant!
converts!the!same!to! •Increases!the!net!fuel! 2030 experience!in!this!
energy production!in!the! •Renewed!focus!on! field.
•Abundant!raw! entire!process alternative!energy! •Company!well!placed!
material!availability sources!to!reduce! for!strong!and!rapid!
•Multiple!sources!of! foreign!dependence growth.
revenues

Source: Cohen Research

FINANCIAL FORECASTS
Figure 7: Revenue Forecasts – Base Case

all!figures!in!$!million 2010E 2011E 2012E 2013E 2014E 2015E 2016E
Plastic!Segment
!"#$%&'()*+,&"-&.%$/#0 &&&&&&&&&&&&&&&&
123 &&&&&&&&&&&&&&&&
423 &&&&&&&&&&&&&1323 &&&&&&&&&&&&&5423 &&&&&&&&&&&&&4323 &&&&&&&&&&&&&6423 &&&&&&&&&&&13323
7+8+/(+0&9+,&9%$/# &&&&&&&&&&&&&&&&
525 &&&&&&&&&&&&&&&&
525 &&&&&&&&&&&&&&&&
525 &&&&&&&&&&&&&&&&
525 &&&&&&&&&&&&&&&&
525 &&&&&&&&&&&&&&&&
525 &&&&&&&&&&&&&&&&
525
%!growth 323: 323: 323: 323: 323: 323:
TOTAL!REVENUES &&&&&&&&&&&&&&&&
525 &&&&&&&&&&&&&1123 &&&&&&&&&&&&&5523 &&&&&&&&&&&&&4423 &&&&&&&&&&&11323 &&&&&&&&&&&1;423 &&&&&&&&&&&55323
Tire!Segment
!"#$%&'()*+,&"-&.%$/#0 &&&&&&&&&&&&&&&&
123 &&&&&&&&&&&&&&&&
423 &&&&&&&&&&&&&1323 &&&&&&&&&&&&&5423 &&&&&&&&&&&&&4323 &&&&&&&&&&&&&6423 &&&&&&&&&&&13323
7+8+/(+0&9+,&9%$/# &&&&&&&&&&&&&&&&
<24 &&&&&&&&&&&&&&&&
<24 &&&&&&&&&&&&&&&&
<24 &&&&&&&&&&&&&&&&
<24 &&&&&&&&&&&&&&&&
<24 &&&&&&&&&&&&&&&&
<24 &&&&&&&&&&&&&&&&
<24
%!growth 323: 323: 323: 323: 323: 323:
<24 &&&&&&&&&&&&&1624 &&&&&&&&&&&&&<423 &&&&&&&&&&&&&=624 &&&&&&&&&&&16423 &&&&&&&&&&&5;524 &&&&&&&&&&&<4323
426 &&&&&&&&&&&&&5=24 &&&&&&&&&&&&&4623 &&&&&&&&&&&1>524 &&&&&&&&&&&5=423 &&&&&&&&&&&>5624 &&&&&&&&&&&46323

Figure 8: Sales, Earnings and Margin Forecasts – Base Case

7+8+/(+0 &&&&&&&&&&&&&&&&
426 &&&&&&&&&&&&&5=24 &&&&&&&&&&&&&4623 &&&&&&&&&&&1>524 &&&&&&&&&&&5=423 &&&&&&&&&&&>5624 &&&&&&&&&&&46323
%!growth 0.0% 400.0% 100.0% 150.0% 100.0% 50.0% 33.3%
?,"00&.,"-@# &&&&&&&&&&&&&&&&
>2< &&&&&&&&&&&&&512> &&&&&&&&&&&&&>52= &&&&&&&&&&&13;2A &&&&&&&&&&&51<2= &&&&&&&&&&&<532; &&&&&&&&&&&>5624
Gross!Profit!Margin 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0%
BCD!EF &&&&&&&&&&&&&&&&
52< &&&&&&&&&&&&&1126 &&&&&&&&&&&&&5<24 &&&&&&&&&&&&&4=2; &&&&&&&&&&&1162< &&&&&&&&&&&1642A &&&&&&&&&&&5<>24
EBITDA!Margin 41.1% 41.1% 41.1% 41.1% 41.1% 41.1% 41.1%
'+#&.,"-@# &&&&&&&&&&&&&&&&
123 &&&&&&&&&&&&&&&&
;26 &&&&&&&&&&&&&1126 &&&&&&&&&&&&&542; &&&&&&&&&&&&&>A26 &&&&&&&&&&&&&6324 &&&&&&&&&&&&&A52=
Net!Profit!Margin 17.4% 23.4% 20.6% 18.0% 17.4% 16.5% 16.3%
B$,/@/G0&.+,&HI$,+&J&C$0@K&L&E@%(#+M &&&&&&&&&&&32355 &&&&&&&&&&&321>A &&&&&&&&&&&325;5 &&&&&&&&&&&3246< &&&&&&&&&&&12111 &&&&&&&&&&&1246= &&&&&&&&&&&52364
N,++&O$0I&N%"P&#"&N@,) &&&&&&&&&&&&&&Q62;R &&&&&&&&&&&&&&Q<2;R &&&&&&&&&&&&
Q1;25R &&&&&&&&&&&&
Q<32=R &&&&&&&&&&&&
Q<>2>R &&&&&&&&&&&&&1>24 &&&&&&&&&&&&&;<2>

Strong focus on commercialization of superior technology platform and potential build-up of new
facilities will result in projected revenues of $5.7 million for FYE 2010 and $28.5 million in FYE 2011.

Page 8 of 19

!
With financing, we project revenues to grow thereafter from $57.0 million in FYE 2012 to $570.0
million by FYE 2016. The key driver for this growth is the continued demand for alternative energy
solutions. Due to its multiple sources of revenues and constant nature of business operations we expect
Novo’s gross margins to remain constant throughout our forecast period (Management Guidance).
However, as the Company constructs larger projects, we expect operating expenses to increase at a
decreasing rate, resulting in higher operating and net profit margins.

The robust industry demand coupled with continuous focus on cost effective and efficient energy
solutions will drive Novo’s operations in North America. Growth prospects are impressive and depend
on the successful fund raising by the Company.

VALUATION

SHORT TERM PRICE TARGET $0.36

We have valued the stock using Multiple Based Valuation Methodology to derive our short-term target
price. This method uses the industry average 2009E Price-to-Equity and Price-to-Book Value multiple.
Our formula is shown below.

Figure 9: Short-Term Multiple-based Valuation

Description Market!Cap!($Mn) Price!to!Earnings Price!To!Bk.!Val
S$0#+&T$/$G+)+/#U&D/K2 1<2A3C &&&&&&&&&&&&&&&&&&&&&&&&1<2A &&&&&&&&&&&&&&&&&&&&&&&&&&&
52>
7+9(*%@K&H+,8@K+0&D/K2 A23;C &&&&&&&&&&&&&&&&&&&&&&&&4<2> &&&&&&&&&&&&&&&&&&&&&&&&&&&
125
H#+,@KVK%+&D/K2 >2<3C &&&&&&&&&&&&&&&&&&&&&&&&5=25 &&&&&&&&&&&&&&&&&&&&&&&&&&&
;2<
S$0#+&O"//+K#@"/0&D/K2 12A4C &&&&&&&&&&&&&&&&&&&&&&&&162< &&&&&&&&&&&&&&&&&&&&&&&&&&&
124
O%+$/&W$,*",0&D/K2 1256C &&&&&&&&&&&&&&&&&&&&&&&&5>23 &&&&&&&&&&&&&&&&&&&&&&&&&&&
52A
Average!Ratios!(used!for!valuation) !!!!!!!!!!!!!!!!!!!!!!!27.4 !!!!!!!!!!!!!!!!!!!!!!!!!!2.9

'"8"&B/+,G@+0
B.H&Q5313B&J&5315BR &&&&&&&&&&&&&&&&&&&&&&&&&&&321
C""X&Y$%(+&Q5313B&J&5315BR &&&&&&&&&&&&&&&&&&&&&&&&1323
Market!Cap!based!on!"! !!!!!!!!!!!!!!!!!!!!!!!!!!4.0 !!!!!!!!!!!!!!!!!!!!!!!28.5
HI$,+0&Z(#0#$/M@/G &&&&&&&&&&&&&&&&&&&&&&&&>>26 &&&&&&&&&&&&&&&&&&&&&&&&>>26
Price!Target!based!on!" !!!!!!!!!!!!!!!!!!!!!!!0.09 !!!!!!!!!!!!!!!!!!!!!!!0.64

Short!Term!Target!Price !!!!!!!!!!!!!!!!!!!!!!!0.36

INTERMEDIATE TERM PRICE TARGET $0.71

Our Intermediate term price valuation methodology is based on Multiple Based Valuation Methodology.
Note: for companies such as Novo which are still in early inception stages, we use the expected multiple
method to derive our intermediate term price target.

Page 9 of 19

!
Figure 10: Intermediate Term Multiple-based Valuation Methodology

Description Price!to!Earnings Price!To!Bk.!Val
B[9+K#+M&D/M(0#,V&F8+,$G+&J&531< &&&&&&&&&&&&&&&&&&&&&&1=254 &&&&&&&&&&&&&&&&&&&&&&&&12A1
'"8"&B/+,G@+0&J&531< &&&&&&&&&&&&&&&&&&&&&&&&3246 &&&&&&&&&&&&&&&&&&&&&&>42;1

Market!Cap.!2013 !!!!!!!!!!!!!!!!!!!!!
10.45 !!!!!!!!!!!!!!!!!!!!!
86.93
HI$,+0&Z(#0#$/M@/G &&&&&&&&&&&&&&&&&&&&&&>>263 &&&&&&&&&&&&&&&&&&&&&&>>263
Price!Target !!!!!!!!!!!!!!!!!!!!!!!0.23 !!!!!!!!!!!!!!!!!!!!!!!1.94

Average!Price!in!2013 !!!!!!!!!!!!!!!!!!!!!!!1.09
E@0K"(/#&N$K#", &&&&&&&&&&&&&&&&&&&&&&&&32<4
Intermediate!Term!Target!Price !!!!!!!!!!!!!!!!!!!!!!!0.71

LONG TERM PRICE TARGET $1.07-$1.47

We have used our Discounted Cash Flow (DCF) method of valuation to create our Long-term per Share
Price Target. Using an assumed cost of equity of 20%, our Base Case target price is a conservative
$1.25 per share. Note our three assumed cases: Base, Optimistic, and Pessimistic.

Figure 11: Discounted Cash Flow Method of Valuation – Base Case

'+#&D/K")+ &&&&&&&&&&&&&&&&
123 &&&&&&&&&&&&&&&&
;26 &&&&&&&&&&&&&1126 &&&&&&&&&&&&&542; &&&&&&&&&&&&&>A26 &&&&&&&&&&&&&6324 &&&&&&&&&&&&&A52=
E+9,+K@$#@"/ &&&&&&&&&&&&&&&&
125 &&&&&&&&&&&&&&&&
<2> &&&&&&&&&&&&&&&&
=2< &&&&&&&&&&&&&1=2A &&&&&&&&&&&&&<A2A &&&&&&&&&&&&&;;21 &&&&&&&&&&&&&A52<
D/#+,+0#&."0#&!$[ &&&&&&&&&&&&&&&J &&&&&&&&&&&&&&&&
32> &&&&&&&&&&&&&&&&
125 &&&&&&&&&&&&&&&&
525 &&&&&&&&&&&&&&&&
>24 &&&&&&&&&&&&&&&&
;2< &&&&&&&&&&&&&&&&
;2=
NOPLAT !!!!!!!!!!!!!!!2.2 !!!!!!!!!!!!10.5 !!!!!!!!!!!!21.2 !!!!!!!!!!!!46.7 !!!!!!!!!!!!94.0 !!!!!!!!!!
142.9 !!!!!!!!!!
191.8
OI$/G+&@/&S",X@/G&O$9@#$% &&&&&&&&&&&&&&Q<26R &&&&&&&&&&&&&&&&
626 &&&&&&&&&&&&Q132>R &&&&&&&&&&&&&&&&
124 &&&&&&&&&&&&&&&&
524 &&&&&&&&&&&&&&&&
524 &&&&&&&&&&&&&&&&
524
O$9@#$%&B[9+/M@#(,+ &&&&&&&&&&&&&&Q;25R &&&&&&&&&&&&
Q512=R &&&&&&&&&&&&Q5623R &&&&&&&&&&&&Q6A23R &&&&&&&&&Q1<123R &&&&&&&&&Q1<123R &&&&&&&&&Q1<123R
Free!Cash!Flow!to!Firm!(FCF) !!!!!!!!!!!!!(7.6) !!!!!!!!!!!!!(3.6) !!!!!!!!!!!
(16.2) !!!!!!!!!!!
(30.8) !!!!!!!!!!!
(34.4) !!!!!!!!!!!!14.5 !!!!!!!!!!!!63.4
Present!Value!of!FCF !!!!!!!!!!!!!(6.4) !!!!!!!!!!!!!(2.9) !!!!!!!!!!!
(11.3) !!!!!!!!!!!
(19.3) !!!!!!!!!!!
(18.9) !!!!!!!!!!!!!!!6.6 !!!!!!!!!!!!23.1

SFOO 5323: 112A: 1526: 152>: 152=: 1>21: 1424:
O"0#&"-&B(@#V 53:

!+,)@/$%&?,"P#I&7$#+ 4:
!+,)@/$%&Y$%(+ &&&&&&&&&&&5<12;
Present!Value!of!Terminal!Value !!!!!!!!!!!!84.5

Total!Enterprise!Value! !!!!!!!!!!!!55.5
]+00^&'+#&E+*# &&&&&&&&&&&&&325>
Total!Project!Equity!Value !!!!!!!!!!!!55.7
!"#$%&HI$,+0&Z(#0#$/M@/G &&&&&&&&&&&&&>>26
Per!Share!Price!Target $!!!!!!!!!!1.25

Page 10 of 19

!
Figure 12: Range of Long-term Target Price based on range of Discount Rate

Long!Term!Price!Target!Range!" Range!of!Cost!of!Equity

3.00!
2.50!
2.00!
in!US$

1.50!
1.00!
0.50!
"
22.0% 21.0% 20.0% 19.0% 18.0%
Optimistic!Case 1.18! 1.42! 1.72! 2.07! 2.49!
Base!Case 0.78! 1.00! 1.25! 1.54! 1.90!
Pessimistic!Case 0.43! 0.61! 0.82! 1.08! 1.38!

Figure 13: Range of Long-term Target Price based on range of Terminal Growth Rate

Long!Term!Price!Target!Range!" Range!of!Terminal!
Growth!Rate
2.40!
2.20!
2.00!
1.80!
1.60!
in!US$

1.40!
1.20!
1.00!
0.80!
0.60!
0.40!
3.0% 4.0% 5.0% 6.0% 7.0%
Optimistic!Case 1.40! 1.55! 1.72! 1.92! 2.17!
Base!Case 0.91! 1.07! 1.25! 1.47! 1.74!
Pessimistic!Case 0.49! 0.64! 0.82! 1.05! 1.33!

We believe all our price targets are conservative because our forecast for Novo’s revenues in 2009 and
2010 is based on minimal investment in capital generating assets i.e. plants. Any additional capital
expenditure will add to the top-line and bottom line, thus resulting in potentially higher share prices. As
a practical matter, if Novo receives between $8-$10 million of funding, the stock could trade at
significantly higher prices in the immediate term.

Page 11 of 19

!
COHEN GROWTH DRIVER ANALYSIS
Figure 14: Cohen Growth Driver Analysis – Base Case

7+8+/(+0 &&&&&&&&&&&&&&&&
426 &&&&&&&&&&&&&5=24 &&&&&&&&&&&&&4623 &&&&&&&&&&&1>524 &&&&&&&&&&&5=423 &&&&&&&&&&&>5624 &&&&&&&&&&&46323
?,"00&T$,G@/ 6423: 6423: 6423: 6423: 6423: 6423: 6423:
Z9+,$#@/G&T$,G@/ >121: >121: >121: >121: >121: >121: >121:
'+#&T$,G@/&J&D/K")+&F8$@%2&!"&HI,+I"%M+,0 162>: 5<2>: 532;: 1=23: 162>: 1;24: 1;2<:
B.H&J&E@%(#+M &&&&&&&&&&&&&3235 &&&&&&&&&&&&&3214 &&&&&&&&&&&&&325; &&&&&&&&&&&&&3246 &&&&&&&&&&&&&1211 &&&&&&&&&&&&&124= &&&&&&&&&&&&&523=
BCD!EF &&&&&&&&&&&&&&&&
52< &&&&&&&&&&&&&1126 &&&&&&&&&&&&&5<24 &&&&&&&&&&&&&4=2; &&&&&&&&&&&1162< &&&&&&&&&&&1642A &&&&&&&&&&&5<>24
N,++&O$0I&N%"P &&&&&&&&&&&&&&Q;2>R &&&&&&&&&&&&&&Q52AR &&&&&&&&&&&&
Q112<R &&&&&&&&&&&&
Q1A2<R &&&&&&&&&&&&
Q1=2AR &&&&&&&&&&&&&&&&
;2; &&&&&&&&&&&&&5<21
O$0I &&&&&&&&&&&&&&&&
325 &&&&&&&&&&&&&&&&
A2< &&&&&&&&&&&&&&&&
<25 &&&&&&&&&&&&&&&&
62= &&&&&&&&&&&&&1A26 &&&&&&&&&&&&&>;25 &&&&&&&&&&&&&A62A
S",X@/G&O$9@#$% &&&&&&&&&&&&&&Q<26R &&&&&&&&&&&&
Q112>R &&&&&&&&&&&&&&Q123R &&&&&&&&&&&&&&Q524R &&&&&&&&&&&&&&Q421R &&&&&&&&&&&&&&Q62;R &&&&&&&&&&&&
Q1321R
]"/G&!+,)&E+*# &&&&&&&&&&&&&&&J &&&&&&&&&&&&&1<24 &&&&&&&&&&&&&542< &&&&&&&&&&&&&;>2; &&&&&&&&&&&11=2< &&&&&&&&&&&1<A24 &&&&&&&&&&&1<624
!"#$%&E+*# &&&&&&&&&&&&&&&J &&&&&&&&&&&&&1<24 &&&&&&&&&&&&&542< &&&&&&&&&&&&&;>2; &&&&&&&&&&&11=2< &&&&&&&&&&&1<A24 &&&&&&&&&&&1<624
!"#$%&F00+#0 &&&&&&&&&&&&&&&&
;21 &&&&&&&&&&&&&<625 &&&&&&&&&&&&&4>24 &&&&&&&&&&&1<<23 &&&&&&&&&&&54A23 &&&&&&&&&&&<6<24 &&&&&&&&&&&>=621
EHZ &&&&&&&&&&&&&<;24 &&&&&&&&&&&&&<;24 &&&&&&&&&&&&&<;24 &&&&&&&&&&&&&<;24 &&&&&&&&&&&&&<;24 &&&&&&&&&&&&&<;24 &&&&&&&&&&&&&<;24
D/8+/#",V&!(,/0 &&&&&&&&&&&&&<;24 &&&&&&&&&&&&&<;24 &&&&&&&&&&&&&<;24 &&&&&&&&&&&&&<;24 &&&&&&&&&&&&&<;24 &&&&&&&&&&&&&<;24 &&&&&&&&&&&&&<;24
N@[+M&F00+#&!(,/0 &&&&&&&&&
<A6235 &&&&&&&&&
<4=2;3 &&&&&&&&&
<4521A &&&&&&&&&
<><25< &&&&&&&&&
<<A2<A &&&&&&&&&
<<=211 &&&&&&&&&
<<62>;
O$0I&OVK%+ &&&&&&&&&&&&&&&&
325 &&&&&&&&&&&&&&&&
325 &&&&&&&&&&&&&&&&
12< &&&&&&&&&&&&&&&&
12< &&&&&&&&&&&&&&&&
12< &&&&&&&&&&&&&&&&
12< &&&&&&&&&&&&&&&&
12<

Annual!Change,!Turns! 2010E 2011E 2012E 2013E 2014E 2015E 2016E
7+8+/(+0 >3323: 13323: 14323: 13323: 4323: <<2<:
?,"00&T$,G@/ 323: 323: 323: 323: 323: 323:
Z9+,$#@/G&T$,G@/ 323: 323: 323: 323: 323: 323:
'+#&T$,G@/ <<2A: J1523: J152;: J<23: J42<: J12>:
B.H&J&E@%(#+M 4;A24: 6;21: 11=2>: A>23: >523: <124:
BCD!EF >3323: 13323: 14323: 13323: 4323: <<2<:
N,++&O$0I&N%"P J4>2A: 5A>21: 6324: J52<: J1<>2=: 54523:
O$0I <=1<2;: J;426: 1>>23: 14<21: 1<423: 11523:
S",X@/G&O$9@#$% 53A2;: JA121: 14323: 13323: 4323: <<2<:
]"/G&!+,)&E+*# 323: =62=: 14423: =<23: 162A: J12>:
!"#$%&E+*# 323: =62=: 14423: =<23: 162A: J12>:
!"#$%&F00+#0 43=2<: >;2<: 1>>25: A>2=: >>25: <32>:
EHZ 323: 323: 323: 323: 323: 323:
D/8+/#",V&!(,/0 323: 323: 323: 323: 323: 323:
N@[+M&F00+#&!(,/0 JA26: J12=: J524: J121: J32>: J325:
O$0I&OVK%+ <42<: 43A2A: 323: 323: 323: 323:

The Cohen Growth Drivers Model is an intelligent road map used by many securities analysts to analyze
the forecasted growth of a given company. We expect significant top-line growth driven by the
Company’s expected plant commercialization. We believe our estimates are conservative as they are
based on the current capital spending capacity of the Company and do not include any additional capital
expenditure the Company may have in due course. Also, gross and operating margin projections are kept
constant.

Page 12 of 19

!
CONCLUSION

Novo Energies is an exciting alternative energy company. The Company’s core business of converting
waste materials such as plastic and tire to liquid fuels utilizing a suite of proprietary technologies targets
significant corporate growth. The Company has a robust business model built on multiple sources of
revenues and positive energy conversion economics. Along with a majority revenues from oil and liquid
fuel sales, the top-line should benefit from income from sale of by-products. Further, the Company plans
to use a combination of gasification and thermolysis technologies, resulting in better conversion
economics. This in our view is a unique business model as it allows the Company to become a low cost
producer of alternative energies.

The alternative energy industry is expected to expand to over $40 billion in the next couple of years. We
expect significant growth potential for the Company’s products, especially after the Company acquires
an equity partner to support its expansion plans. Revenues are expected to grow from $5.7 million for
Fiscal Year End (FYE) December 31, 2009 to more than $570.0 million by FYE 2015. The Company
will have to acquire considerable funding to meet our projections.

We believe the Company’s strong management team, robust revenue streams and growth potential in its
marketplace makes the stock a potential valuable investment proposition. The Company will have to
raise funds to meet our projections. Novo Energies provides an exciting long term investment
opportunity.

RS/Grass Roots Distribution Research

Page 13 of 19

!
LATEST PRESS RELEASE

Atlantic Wine Agencies, Inc. (to Be Known as Novo Energies Corporation) Appoints New President
and Chief Operations Officer

NEW YORK, NY -- (Marketwire) -- 05/08/09 -- Atlantic Wine Agencies, Inc. (OTCBB: AWIN), a
publicly traded Company listed on the Over the Counter Market (OTCBB) under the symbol "AWIN,"
announced today that: (i) it has begun taking the necessary steps to change its name to Novo Energies
Corporation and (ii) Mr. Andre L'Heureux has been appointed as our new President and Chief
Operations Officer effective today.

Mr. L'Heureux has over 25 years of experience in the chemical and biotechnological sector. He will be
responsible for the planning, implementation and production of Novo Energies' first operating plastics
and synthetic tire depolymerization plants in Quebec, Canada, the first such plant in Quebec. Novo
Energies has developed a proprietary waste to liquid renewable energy solution.

Previously, Mr. L'Heureux was the President of Chemco Inc., a private chemical company for industrial
water treatment products. Mr. L'Heureux has been a researcher in the development of polymer and
biopolymer products. In 1984, he finished his studies as mechanical technologist from Limoilou
College. Mr. L'Heureux continued his studies in the field of business administration at the University of
Quebec.

Novo Energies Corporation Chairman and Chief Executive Officer Antonio Treminio stated: "It is a
pleasure to have Mr. Andre L'Heureux join our management team. Andre's extensive experience in the
field, vision and 'can do' attitude will help us build a world-class business providing an alternative and
effective solution to the global energy crises."

Mr. Andre L'Heureux commented: "It is with great pleasure that I accept these responsibilities and look
forward to working with the current management team to meet our objectives in the most efficient and
effective way possible. We are currently facing a global crises where our natural resources are been
constantly depleted and unless we act today and start implementing new renewable solutions, our future
generations and ourselves may face irreversible consequences affecting our natural environment."

More information will be provided as the Company progresses with its developments.

About Atlantic Wine Agencies, Inc. (to be known as Novo Energies Corporation) is a public company
trading on the Over the Counter Bulletin Board Market ("OTCBB") headquartered in New York. The
Company's new mission is to continue expanding within the renewable energy sector by developing and
implementing renewable energy solutions while maintaining its commitment to conserve energy, natural
resources and help reduce pollutants and unwanted biological agents.

Page 14 of 19

!
FINANCIAL EXHIBITS
Income Statement – Base Case
Revenues !!!!!!!!!!!!!!!5.7 !!!!!!!!!!!!28.5 !!!!!!!!!!!!57.0 !!!!!!!!!!
142.5 !!!!!!!!!!
285.0 !!!!!!!!!!
427.5 !!!!!!!!!!
570.0
O"0#&"-&?""M0&H"%M &&&&&&&&&&&&&&&&12> &&&&&&&&&&&&&&&&
621 &&&&&&&&&&&&&1>2< &&&&&&&&&&&&&<42; &&&&&&&&&&&&&612< &&&&&&&&&&&13;2A &&&&&&&&&&&1>524
Gross!Profit !!!!!!!!!!!!!!!4.3 !!!!!!!!!!!!21.4 !!!!!!!!!!!!42.8 !!!!!!!!!!
106.9 !!!!!!!!!!
213.8 !!!!!!!!!!
320.6 !!!!!!!!!!
427.5

H+%%@/G&$/M&FM)@/&B[9+/0+0 &&&&&&&&&&&&&&&&12A &&&&&&&&&&&&&&&&
A26 &&&&&&&&&&&&&1A2< &&&&&&&&&&&&&>=2< &&&&&&&&&&&&&A;24 &&&&&&&&&&&1>>2= &&&&&&&&&&&1A<23
Operating!Profit/!EBITDA !!!!!!!!!!!!!!!2.3 !!!!!!!!!!!!11.7 !!!!!!!!!!!!23.5 !!!!!!!!!!!!58.6 !!!!!!!!!!
117.3 !!!!!!!!!!
175.9 !!!!!!!!!!
234.5

E+9,+K@$#@"/&$/M&F)",#@_$#@"/ &&&&&&&&&&&&&&&&125 &&&&&&&&&&&&&&&&
<2> &&&&&&&&&&&&&&&&
=2< &&&&&&&&&&&&&1=2A &&&&&&&&&&&&&<A2A &&&&&&&&&&&&&;;21 &&&&&&&&&&&&&A52<
EBIT !!!!!!!!!!!!!!!1.1 !!!!!!!!!!!!!!!8.3 !!!!!!!!!!!!15.2 !!!!!!!!!!!!39.7 !!!!!!!!!!!!77.4 !!!!!!!!!!
109.8 !!!!!!!!!!
142.2

D/#+,+0#&B[9+/0+U&'+# &&&&&&&&&&&&&&&J &&&&&&&&&&&&&&&&
324 &&&&&&&&&&&&&&&&
12> &&&&&&&&&&&&&&&&
<21 &&&&&&&&&&&&&&&&
;2> A23
&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&
A26
Z#I+,&D/K")+&QB[9+/0+0R &&&&&&&&&&&&&&&J &&&&&&&&&&&&&&&J &&&&&&&&&&&&&&&J &&&&&&&&&&&&&&&J &&&&&&&&&&&&&&&J &&&&&&&&&&&&&&&J &&&&&&&&&&&&&&&J
EBT !!!!!!!!!!!!!!!1.1 !!!!!!!!!!!!!!!7.8 !!!!!!!!!!!!13.8 !!!!!!!!!!!!36.6 !!!!!!!!!!!!70.9 !!!!!!!!!!
100.8 !!!!!!!!!!
132.5

.,"8@0@"/&-",&!$[$#@"/ &&&&&&&&&&&&&&&&321 &&&&&&&&&&&&&&&&
125 &&&&&&&&&&&&&&&&
521 &&&&&&&&&&&&&1123 &&&&&&&&&&&&&512< &&&&&&&&&&&&&<325 &&&&&&&&&&&&&<A2=
Net!Profit !!!!!!!!!!!!!!!1.0 !!!!!!!!!!!!!!!6.7 !!!!!!!!!!!!11.7 !!!!!!!!!!!!25.6 !!!!!!!!!!!!49.7 !!!!!!!!!!!!70.5 !!!!!!!!!!!!92.8

HI$,+0&Z(#0#$/M@/G&J&C$0@K &&&&&&&&&&&&&>>26 &&&&&&&&&&&&&>>26 &&&&&&&&&&&&&>>26 &&&&&&&&&&&&&>>26 &&&&&&&&&&&&&>>26 &&&&&&&&&&&&&>>26 &&&&&&&&&&&&&>>26
HI$,+0&Z(#0#$/M@/G&J&E@%(#+M &&&&&&&&&&&&&>>26 &&&&&&&&&&&&&>>26 &&&&&&&&&&&&&>>26 &&&&&&&&&&&&&>>26 &&&&&&&&&&&&&>>26 &&&&&&&&&&&&&>>26 &&&&&&&&&&&&&>>26

B.H&J&C$0@K &&&&&&&&&&&32355 &&&&&&&&&&&321>A &&&&&&&&&&&325;5 &&&&&&&&&&&3246< &&&&&&&&&&&12111 &&&&&&&&&&&1246= &&&&&&&&&&&52364
B.H&J&E@%(#+M &&&&&&&&&&&32355 &&&&&&&&&&&321>A &&&&&&&&&&&325;5 &&&&&&&&&&&3246< &&&&&&&&&&&12111 &&&&&&&&&&&1246= &&&&&&&&&&&52364

Page 15 of 19

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