#1ORPC Investment Opportunity Summary February 2019 ORPC Improving people's lives, and their environment, through sustainable energy solutions CONFIDENTIAL & PROPRIETARY#2Legal Disclaimers This Confidential Investor Presentation (this "Presentation") is being provided to the addressee for informational purposes only and may not be distributed by the addressee to any individual or entity without the prior approval from Ocean Renewable Power Company, Inc. ("ORPC"). Any reproduction of this Presentation, in whole or in part, or the divulgence of any of its contents, without prior written consent of ORPC is prohibited. The information set forth in this Presentation is confidential and proprietary to ORPC. This Presentation shall not constitute an offer to sell, or a solicitation of any offer to buy, any securities described or referenced herein in any jurisdiction in which such offer or solicitation is not authorized and, in particular, shall not constitute an offer to sell, or a solicitation of any offer to buy, any securities in the United States of America or to or for the benefit of any United States persons. Any such offer to sell, or solicitation of an offer to buy, will be made only to accredited investors (as that term is defined in Regulation D promulgated under the Securities Act of 1933, as amended (the "Securities Act")) by delivery at the time of such offer or solicitation of offering documents which will contain such information as is necessary and appropriate to lawfully permit such offer or solicitation in compliance with applicable securities laws, including without limitation the Securities Act and state securities laws. Forward Looking Statements This Presentation contains forward-looking statements about ORPC, including statements relating to management's current objectives and plans, future economic performance, and industry and market trends and conditions. Statements that are not historical facts, including statements about beliefs and expectations, are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those described herein. These risks and uncertainties include, among other: economic, business and political conditions in the United States and abroad; intensity of competition; changes in customer demand; costs and results of future capital expenditures and financing efforts; changes in applicable federal, state and local laws and regulations; innovations and changes in technology; risks that closing of the transaction to raise capital is substantially delayed or does not occur at all. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof. ORPC does not assume any obligation to update the information contained in this Presentation. 2 www.orpc.co CONFIDENTIAL & PROPRIETARY ORPC#3Compelling Investment Opportunity Huge, Opportunistic Market Insatiable demand for renewable energy coupled with shift from large utility grids to renewable powered microgrids Total addressable market of 433GW 46GW immediate market in islanded communities High Value Solution Proven, patented marine renewable energy (MRE) technology Predictable, affordable, no-carbon energy from local water currents ● ● ● ● ● No environmental, viewshed, navigation or land use impacts Key element of community sustainability solution First-to-market advantage with limited competition Very Attractive Investment Highly scalable business with steep revenue growth Motivated, seasoned management team Attractive valuation and exit opportunities within 5-7 years ● ● ● 3 www.orpc.co CONFIDENTIAL & PROPRIETARY ORPC#4● ● Built around ORPC's proprietary and proven core technology, the turbine generator unit or "TGU" Highly adaptable, modular TGU adapted for river and tidal applications. 4 ORPC Power Systems www.orpc.co CONFIDENTIAL & PROPRIETARY TidGenⓇ8 Diver RivGenⓇ TidGen Ⓡ4 Shown in relative scale ORPC#5Total Addressable Market 433 GW Theoretical 5 103 GW Extractable 46 GW Today Theoretical 433 GW River 183 GW Tidal 238 GW Ocean Current 12 GW www.orpc.co CONFIDENTIAL & PROPRIETARY ● ● Extractable 103 GW (assumes 5% to 50% of theoretical can be extracted) River 41 GW ● ● ● Tidal 37 GW Ocean Current 6 GW 46 GW (46,000 MW) represents $478 billion of ORPC sales revenue ORPC Addressable Today 46 GW (considers existing demand) River 2 GW Tidal 55 GW Ocean Current 6 GW ● ●#650 45 40 35 30 25 20 15 10 5 46 GW Addressable Market Today Today's Addressable Market (GW) by Price Point Today's Addressable Market (GW) by Region 46.0 1.5 * 6 20.7 23.8 " www.orpc.co CONFIDENTIAL & PROPRIETARY 13.7 Total 18.6 11.0 $0.30-$1.30/kWh $0.20- $0.30/kWh Below $0.20/kWh * 1.5 GW (1,500 MW) represents nearly $16 billion of ORPC sales revenue. ORPC 2.5 North America South America ■ Europe Asia and Southeast Asia#7Immediate Market in Islanded Communities Addressable Market Today (MW) in North American Islanded Communities, by Price of Electricity Addressable Market Size (MW) 1,800 1,600 1,400 1,200 1,000 800 600 400 200 22 Above $1.00/kWh 7 www.orpc.co 150 $0.80 - $0.99/kWh CONFIDENTIAL & PROPRIETARY 330 $0.60 - $0.79/kWh 755 $0.40 - $0.59/kWh 356 $0.20 - $0.39/kWh 1,613 Market above $0.80/kWh represents $1.8 billion of ORPC sales revenue. ORPC Total#8Levelized Cost of Energy (LCOE) Levelized Cost of Energy from ORPC Power Systems 8 LCOE ($/kWh) 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2019 2020 2021 2022 2023 2024 www.orpc.co CONFIDENTIAL & PROPRIETARY 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Historical LCOE ($/kWh) LCOE Power System RivGen (2014) RivGen (2015) RivGen (2019) 2037 TidGen (2012) TidGen (2019) 2038 -RivGen® -TidGen®4 -TidGenⓇ8 -TidGen ⓇOC Ⓡ Ⓡ 2039 2040 2.87 2.21 0.65 15.45 0.64 ORPC#9ORPC Competitive Advantages Versus MRE Competitors Advanced design cross flow turbines Foils structurally supported along length, reducing stresses Rotate in same direction in reversing tidal currents Single gearless driveshaft, only one moving part Low vertical profile suitable for shallower sites: bigger market ● ● ● ● ● ● ● ● ● Versus Wind and Solar Water currents are predictable with much higher energy density • No visibility or land use issues Solar not viable in far northern/southern latitudes ● Completely submerged-no interference with views or vessel traffic Optimized for lower current speeds-significantly increases market Easier to deploy and retrieve with locally available equipment 9 Wind not viable due to harsh, frigid, icy weather Being submerged in extreme weather is a major advantage! www.orpc.co CONFIDENTIAL & PROPRIETARY ORPC#10Formidable Leadership Position Significant protection for ORPC's leadership position: First-to-market advantage in North and South America Proven, patented technology developed over a 14-year period using proprietary, highly complex computer design tools ● ● ● ● ● 10 Unique know-how and trade secrets from the design, build, installation and operation of 5 generations of technology in 11 projects with no observed negative effects to the environment Cited by federal and state agencies as the model for permitting and licensing of MRE projects Strong customer and partner relationships built from the ground up and based on common values and goals Business plan based on early customer cultivation, collaboration, inclusion, measured risk reduction and focus on commercialization www.orpc.co CONFIDENTIAL & PROPRIETARY ORPC#11ORPC Business Model Focus now on high cost markets in islanded communities Drive costs down through optimized design, streamlined supply chain, and volume manufacturing ● ● Penetrate larger lower cost markets as LCOE comes down • Use U.S. success to expand into Canada (via Québec), South America (via Chile) and Europe (via Ireland) ● Tempes 11 ● ● ● www.orpc.co CONFIDENTIAL & PROPRIETARY Reach production scale and global relevance by dominating the islanded community market. Achieve high profitability from power systems sales, technical services and technology licensing fees Invest in select projects through in-kind or direct investment (not included in ORPC financial projections) ORPC#1212 Accomplished Management Team Chris Sauer Chairman, CEO & Co-founder 40 years in energy business Senior management at Wheelabrator and PG&E National Energy Group Led $2 billion in energy deals ● ● ● Abbey Manders Vice President & CFO ● ● 10 years in energy business 15 years financial management experience Cian Marnagh Vice President, Engineering & Program Management 20+ years in systems engineering, operations & product development ● ● ● John Ferland President & COO www.orpc.co CONFIDENTIAL & PROPRIETARY ● 30+ years technology commercialization, port operations, stakeholder engagement Jarlath McEntee, P.E. Senior Vice President & CTO 25+ years in energy technology research amd development Alexandre Paris President & CEO, EMARQ 20+ years as entrepreneur and executive for private and public sector companies across Canada, U.S., Europe & Asia. Former Sr. Manager, Growth & Innovation, Hydro-Québec Nathan Johnson Vice President, Development 20 years in renewable energy, construction management and environmental affairs ● 9 EMARQ ORPC#13ORPC Advisory Board Highly experienced, well-respected leaders contributing technical, programmatic and strategic guidance to ORPC 13 Millard S. Firebaugh, Sc.D. Retired Rear Admiral ● ● ● ● Chair of Advisory Board 35-year U.S. Navy career Chief Engineer, Electric Boat (General Dynamics) James L. Kirtley, Jr., Ph.D. Professor of Electrical ● COO, Satcon Technology Corp. Technology Engineering, MIT • Satcon Technology Corp. General Electric Swiss Federal Institute of Technology ● www.orpc.co CONFIDENTIAL & PROPRIETARY John "Dugan" Shipway Retired Rear Admiral ● ● ● Denis Chartrand Retired Hydro-Québec (HQ) • Former Chief Executive, HQ Distribution Network Strategies Now with DistSmartNet, QUATRIC and Cima+, Montréal HQ rep to Canadian Electrical Assoc. and Electric Power Research Institute ORPC ● 35-year U.S. Navy career Former President, Bath Iron Works (General Dynamics) Special Assistant, Electric Boat (General Dynamics) ●#14RivGen® Power System Power 40 kW onboard power rated at 2.25 m/s 80 kW maximum at 3.5 m/s • Operational up to 3.5 m/s ● Logistics • Transportable in standard shipping containers • Modular onsite assembly Towable, self-deploying system ● Physical • 5 m to 10 m water depths 15.8 m (l) x 3.5 m (h) x 14.4 m (w) • 26,000 kg (dry weight) ●#15TidGen®4 Power System Power • 125 kW onboard power rated ● at 2.25 m/s 350 kW maximum at 3.5 m/s Operational up to 3.5 m/s ● ● Logistics • Transportable in standard shipping containers • Modular onsite assembly Deployment within one tidal cycle ● ● Physical >15 m water depths ● 20 m (l) x 7.9 m (h) x 4.6 m (w) 57,000 kg (dry weight) 55 ●#16TidGenⓇ8 Power System D Power ● • 250 kW onboard power rated at 2.25 m/s ● ● 700 kW maximum at 3.5 m/s Operational up to 3.5 m/s Logistics • Transportable in standard shipping containers • Modular onsite assembly Deployment within a single tidal cycle ● Physical >18 m water depths 34.6 m (w) x 8.8 m (h) ● ● x 5.2 m (d) ● • 160,000 kg (dry weight)#17● Future Products in Development Autonomous TGU (ATGU) Depicted: Autonomous TGU used to refuel UUV Robotic TGU that can self-propel, self- deploy, self-retrieve, generate and store electricity, and perform heavy lifts Markets include underwater vehicle refueling, powering subsea monitors, underwater research, subsea O&M, offshore construction and defense 17 www.orpc.co CONFIDENTIAL & PROPRIETARY ● ● 30 TidGenⓇOC Power System Adaptation of TidGen® technology for unidirectional, constantly flowing, offshore ocean currents Offshore ocean currents exist around the world, Florida Current is the world's most robust (fastest flowing) N. Pacific C North Pacific Gyre N. Equatorial C. S. Equatorial C. South Pacific Gyre West Wind Drift 150 120 East Wind Drift New York. S St. Johns Stream 37 reenland C Greenla N. Atlantic Drift North Atlantic Gyre N. Equatorial C Norwegia London S. Equatorial C South Atlantic Gyre Berlin Walvis Bay Durban Agulhas Soma 120 150 N. Equatorial C. S. Equatorial C Indian Ocean Gyre West Wind Drift Warm Cold East Wind Drift Global Offshore Ocean Currents uwin c Kuroshio C. 30 Australian C ORPC#18ORPC Revenue Model ORPC revenues will come from 3 primary sources: Sales of ORPC power systems Systems will be sold at a margin over production cost Margins will increase over time as production costs come down ● ● ● ● Sales of project development and ongoing technical services Project development can include site assessment and design, 18 ● ● Technology licensing permitting, project management, training, etc. Technical services can include operations monitoring, predictive maintenance, maintenance management, etc. ● Licensing of technology to third parties Technology licensing within joint ventures Investments in projects and revenues received through project investments are not included in projections. www.orpc.co CONFIDENTIAL & PROPRIETARY ORPC#19Millions Per Device Revenue Production Cost, Margin and Sales Price Over Time $5.0 $4.5 $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.2 $1.0 $0.5 $0.0 $77,616 $4.0 Production cost $63,672 $63,672 $2.7 $38,808 ...... ... $30,612 $1.0 $0.6 2032 2022 2032 2022 2032 2022 2032 TidGen4 Margin 2022 19 RivGen Ⓡ $1.6 www.orpc.co CONFIDENTIAL & PROPRIETARY 2032 Average Annual Service Revenue Over Time TidGen Ⓡ8 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 2022 RivGen Ⓡ 2022 $77,616 2032 On average, each MW of power system sales generates immediate revenue of $10.4MM with a margin of $2.97MM and annual service revenue of $0.6MM. TidGen4 TidGen Ⓡ8 ORPC#20Near Term Sales Pipeline Region Quebec Northwest Territories Manitoba Alaska Aysen Los Lagos Magallanes TBD 20 RivGenⓇ TidGen®4 TidGenⓇ8 Country Canada Canada Canada United States Chile Chile Chile Europe Canada Canada Canada Canada United States Chile Europe United States Chile Chile Europe Nova Scotia Quebec British Columbia Nunavut Alaska Magallanes TBD Maine Magallanes Aysen TBD www.orpc.co CONFIDENTIAL & PROPRIETARY Total Total Total Number of Sites/ Customers 1 3 2 4 1 2 1 1 15 2 3 2 2 3 1 1 14 1 1 1 4 Sales Value ($MM USD) $3.6 $11.9 $7.1 $15.5 $3.6 $7.1 $3.6 $3.6 $55.9 $12.4 $17.3 $4.9 $17.3 $44.5 $9.9 $2.5 $108.7 $10.8 $3.6 $3.6 $3.6 $21.70 Target Sale Year 2020 2021 2022 2021 2021 2021 2020 2022 2020 2022 2023 2023 2021 2022 2023 2022 2023 2023 2023 ORPC#217-Year Sales Projection 60 50 40 30 20 10 0 21 2019 ORPC Power Systems Sold Annually 2020 L www.orpc.co CONFIDENTIAL & PROPRIETARY 2021 2022 2023 IL 2024 RivGen® TidGen®4 ■TidGenⓇ8 ATGU Projected sales in year 20 (2039) reach nearly 14,000 devices. ORPC 2025#22Millions Revenue Projections - First 7 Years $250 $200 $150 $100 $50 $0 2019 22 2020 2021 RivGenⓇ Tid GenⓇ8 Services 2022 2023 www.orpc.co CONFIDENTIAL & PROPRIETARY 2024 2025 Revenues by Region (7-year) (Millions USD) Europe $72.0 South America $128.5 TidGenⓇ4 ATGU Licensing fees Projected revenue in year 20 (2039) exceeds $2 billion. ORPC North America $399.2#237-Year Revenue, Expenses and P-T Cash Flow 23 Millions $250 $200 $150 $100 $50 $0 2019 Revenues -Expenses -Pre-Tax Cash Flow 2020 2021 www.orpc.co CONFIDENTIAL & PROPRIETARY 2022 2023 2024 2025 Pre-tax cash flow reaches $1 billion within 20 years. ORPC#24Meaningful Funding to Date $90MM raised to date ● ● ● 24 ● ● Private investment, primarily family offices $37.8MM from a single family office (initially invested in 2009) $4.0MM from J. Sebastian Scripps $7.2MM from other family offices & Patient Capital Collaborative Government funding $30.5MM from U.S. federal agencies ($30MM DOE, $0.5MM USDA) $6.2MM from Maine (Maine Technology Institute & Coastal Enterprises) $2.5MM from Alaska (primarily Alaska Energy Authority) ● ● ● ● ● ● $49MM from private investors $41MM from various government agencies in U.S., Canada and EU (70 percent success rate with grant applications) ● $1.6MM from EU Horizon 2020 & Sustainable Energy Authority of Ireland $0.2MM from Canadian agencies www.orpc.co CONFIDENTIAL & PROPRIETARY ORPC#25Investment Opportunity Total Investment $25MM ● ● 25 Near Term Round: $10MM Target closing 2Q19 Funds the company through 1Q20 ● Matched by $4.7MM of government funding Provides needed growth capital Final Round: $15MM (Estimate) Target closing end of 2020 Funds the company to positive cash flow in late 2021 Exact amount of final capital raise to be determined in 1Q20 Expect substantially higher valuation ● ● ● ● ● ● www.orpc.co CONFIDENTIAL & PROPRIETARY ORPC#26Results from $10MM Round Initial $10MM growth capital will allow ORPC to: Add needed ORPC personnel, most notably to build supply chain management and marketing/sales teams ● ● ● 26 Build, install, operate, benchmark performance of 1st commercial product, RivGen® in Igiugig, Alaska Complete design, procure and assemble 2nd commercial product, TidGen®4 ready for installation in Cobscook Bay, ME Turn initial customer interest into sales commitments in Alaska, Canada and Chile Execute key strategic partnerships in Canada and Chile Position final $10MM investment round for success and higher Company valuation www.orpc.co CONFIDENTIAL & PROPRIETARY ORPC#27Valuation History Total investment of $90MM in ORPC to date, $49MM equity invested by private investors ● ● ● ● ● Biggest risks and uncertainties have been retired through prior (higher risk) investment in successful demonstration projects. Significant recent transactions based on $32.8MM valuation: • Conversion of all private debt to equity in 2017 $1.8MM new investment in ORPC convertible preferred stock in 2017 ($32.75/preferred share), new significant investor $3.7MM sale of common stock ($20/share) since 1Q18, 2 new investors Significant progress since last rounds: JDA's with Hydro-Québec, CIMA+ and Homer Electric Coop., completion of RivGen® design, $2.4MM new grant funding from DOE for Igiugig project ● 27 ● Projected company value between $1.4 to $1.8 billion in 7 years (based on 8 to 10 times estimated 2025 EBITDA) www.orpc.co CONFIDENTIAL & PROPRIETARY ORPC#28Can a Small Maine Town's Innovation Turn the Tides on Sustainable Energy? PBSO NEWS HOUR SBA Thank you For more information contact: Chris Sauer, Chairman & CEO SBIR Program 2013 Tibbetts Award FAST OMPANY 28 The New York Times The Search for Energy Takes a Turn Underwater [email protected] (207) 772-7707 MOST INNOVATIVE COMPANIES 2013 THE WORLD'S TOP 10 MOST INNOVATIVE COMPANIES IN ENERGY www.orpc.co CONFIDENTIAL & PROPRIETARY NATIONAL HYDROPOWER ASSOCIATION POPULAR SCIENCE AMERICAN ENERGY INDEPENDENCE Five clean technologies that will set us free JOURNEY TO MASDAR A technolequesis at the edge of the world THE HUMAN CATAPULT PLUS $.000 MONSTER MODO EARPHONES BARF BAG PHONE MOUNT THE WORLD'S SMALLEST ARCADE! OUTSTANDING STEWARDS OF AMERICA'S WATERS AWARD OPERATIONAL EXCELLENCE RAISED BY ROBOTS training your children ORPC