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BUILDING NORTH AMERICA’S LARGEST

CONSTELLATION OF STANDARDIZED DRONES

March 2017
Forward Looking Statements
This presentation is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of Deveron UAS’s
securities, or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy, the facilities or any of the Company’s
securities in any jurisdiction. Neither this presentation nor anything in it shall form the basis of any contract or commitment. This
presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment
objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor
of their choosing when deciding if an investment is appropriate. The Company has prepared this presentation based on information
available to it, including information derived from public sources that have not been independently verified. No representation or warranty,
express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or
conclusions expressed herein. Any projections should not be considered a representation of the Company’s potential cash generation
performance in any way. Some of the financial information included in this presentation is preliminary, forward-looking, unaudited and
subject to revision. All forward–looking statements attributable to the Company or persons acting on its behalf apply only as of the date of
this document, and are expressly qualified in their entirety by the cautionary statements included elsewhere in this document. All forward-
looking statements involve risks and uncertainties, which may cause actual results to differ materially from the statements made. Such
statements reflect our current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause
our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian
securities regulatory authorities. Should one or more of these risks and uncertainties, such as changes in demand for and prices for the
products of the company or the materials required to produce those products, labor relations problems, currency and interest rate
fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward-looking
statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected.
The financial projections are preliminary and subject to change; the Company undertakes no obligation to update or revise these forward–
looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events,
except as required by law. Inevitably, some assumptions will not materialize, and unanticipated events and circumstances may affect the
ultimate financial results. Projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant
business, economic and competitive risks, and the assumptions underlying the projections may be inaccurate in any material respect.
Therefore, the actual results achieved may vary significantly from the forecasts, and the variations may be material. The reader is cautioned
not to put undue reliance on such forward-looking statements.

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Deveron UAS provides full
About Deveron UAS service drone data solutions
to the agriculture industry.

Our
Data Solution
Workflow
1
Plan Required Flights
2 Assessment

3UAV Collects Imagery 4


Unlock Insights 5 Increase Yields &
Reduce Costs

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Capital Structure

Cap Structure – CSE: DVR


Current Shares Outstanding 17.8 m
Options @ $0.25 1.5 m
Warrants @ $0.30 1.8 m
Warrants @ $0.40 0.8 m
Total Fully Diluted 22.1 m
Greencastle Resources Ltd. (TSX-V:VGN) owns 52% of
Deveron

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Drones for Agriculture
Agriculture is predicted to be one of the major
industries to incorporate drones in the short
term future. Farmers can employ drones to
assess crop health with thermal imaging, assess
drought conditions, and use them to apply
insecticides.
- dronelife.com

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Drone Data and Farming

PwC forecasts the commercial drone market to be worth $127


billion; agriculture makes up $32.4 billion

Goldman Sachs predicts the agriculture sector to be the


largest user of drones in the U.S. and the second largest in the
world in the next five years

Research company Markets and Markets estimates the


agricultural drone market to grow at a compounded average
rate of 30% through 2022

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Drone Data Market in North America

Canada
Ontario 88.7 M acres
8.5 M acres $710 M market
$68 M market

USA
314 M acres
$2.5 B market
Source: USDA Census, USDA Report on Farm Size

1. Regulation: License required to operate drones


2. Network: Enterprise customers require massive scale
3. Industry Structural Changes: consolidation of farms require technology to
manage and improve efficiencies

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Ag Drone Data Market - Canada

88.7 Million $710 Million


Annually

Acres of crop Market Size


(Canada) (Canada)
Total Available Market In CAD $
Source: Stats Canada Census, Deveron Internal Research

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Data is Transforming Farming

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UAVs are Flying Farms in France

Airinov Acres Surveyed


1,000,000

800,000

600,000
Acres

400,000

200,000

0
2014 2015 2016

Cooperatives are employing drones


in France to more accurately treat
crop: 10% average increase in yields

Source: Bloomberg News, Airnov Company Website, SenseFly


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Competition
Service

General Agriculture
Focus Focus

Hardware/Software
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A Team to Grow the Future in Ag Data

David MacMillan Norm Lamothe


Co-Founder Co-Founder
President & CEO Head, UAS Agriculture
• Ontario farmer
• $30+M raised in venture capital
• Launched Ontario’s first dedicated
• MSc Econ, University of Glasgow
UAV service company for agriculture
• BA Econ, McGill
• BA Business, University of Ottawa

Board of Directors

Roger Dent Jim Pirie Chris Irwin James Borland


• CEO of Quinsam Capital, • President, Greencastle • Public venture capital • Public markets board of
small-cap focused Resources (TSX-V: VGN) focused lawyer director
investment company • 30 + years experience in • $1 + billion in transactions • Previous editor of The
• 25+ years small cap capital public venture capital completed Northern Miner
markets experience companies • Multiple directorships on • Previous Communications
• MBA, Harvard Business • PhD, Queen’s University TSX-V and CSE listed Director at BMO Nesbitt
School companies Burns
• LLB, University of New
Brunswick

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Recognized as an Early Leader

Press

Customers

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Building a Standardized Constellation of Drones

2016
o Full Ontario coverage
o Over 500 flights launched
o +1,000,000 farm data points collected

2017
o Further Canadian expansion
o US coverage
o Standardized drone data collection
o Deveron owned assets and employees

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Integrating Near Real-Time, Field Level Data for
the Enterprise
• Integrate drone data at scale across entire enterprise farming
operations
• Drive near-real time, field level data into current agriculture
data platforms
• Allows enterprise to focus on making decisions from data, not
collecting it
• Standardized data collection solves adoption at scale
• Deveron is 60% more cost effective than internal drone data
solutions

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Value Proposition
Increase Yields and Reduce Costs

• Cost Optimization:
o manage input costs
• Disease & Weeds:
o early detection
• Time Savings:
o crop scouting and field management
• Improve Efficiencies:
o data collection and field focus

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Base Case - 3 Year Growth Profile
Revenue Model Revenue 2017 2018 2019
$ per acre $ 3.00 $ 3.00 $ 3.00
Acres per drone 20,000 30,000 40,000
Revenue Per Pilot $ 60,000 $ 90,000 $ 120,000
# of Pilots 15 30 75
Total Revenue $ 900,000 $ 2,700,000 $ 9,000,000
Total Acres 300,000 900,000 3,000,000
Costs
Per pilot $13,000 $13,650 $14,350
# of Pilots 15 30 75
Total Pilot Costs $195,000 $409,500 $1,076,250
Hardware CapEx $ 35,000 $ 30,000 $ 25,000
# of Hardware 15 15 60
Total CapEx $ 525,000 $ 450,000 $ 1,500,000

Gross Profit $ 705,000 $ 2,290,500 $ 7,923,750


SG&A $ 490,000 $ 1,000,000 $ 2,000,000
EBITDA $ 215,000 $ 1,290,500 $ 5,923,750
Depreciation $ 262,500 $ 487,500 $ 975,000
EBIT -$ 47,500 $ 803,000 $ 4,948,750

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Current Distribution Channels
Deveron sells volume data collection to Ag retailers (chemical and
seed companies) and crop protection companies, who have
millions of acres under their management (customers) that they
currently sell to.

BENEFITS:
1. DVR does not need to invest in a salesforce to get distribution
2. Our customers already have trusted relationships
3. Beachhead contracts for initial value of XYZ acres which can grow as adoption
rates grow
4. Creating new revenue line items for retailers outside of traditional ag product
(chemical, seed, etc)
5. Certain crop protection companies doesn’t have ROI for farmers across entire
fields. They need drone data to support zone based applications

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Scale as a Barrier to Entry

Agriculture
Focus

Network
Established effects and
network of scale to
agriculture Deveron is the only service large
contacts enterprise level drone enterprise
data collection
data solution in North
America for agriculture

Advanced
discussions
with leading Access to
hardware and Capital
software
developers
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Upcoming Catalysts

• Western Canada expansion


• Revenue growth and expansion of acres under management
• Drone fleet expansion
• US market opportunities creating 415 million acre
addressable market
• Targeted investor relations and increased market liquidity as
company has never marketed – RTO transaction $ has
doubled

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Financing

• Can Update

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Contact

For more information:

David MacMillan
President & CEO
416-367-4571 ext 226
dmacmillan@deveronuas.com
www.deveronuas.com

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Appendices

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Case Study
Potatoes (71 Acres)

• Plant Date: May 23, 2016


• First Flight: June 29, 2016
• Normal Practice:
o Even distribution - 185 lbs Calcium Ammonium Nitrate (CAN) per acre
• New Practice – Remote Sensing:
o 168 lbs per acre average across entire field
• Total savings to grower – 17 lbs/acre
• ROI: 2:1

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Quantifying Data
Potatoes

• Nitrogen Prescription
• 2 flights
• Reduced use of Calcium Ammonium Nitrate by 17 lbs/acre

ROI – 2:1

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1st and 2nd Flights

Image Date: Image Date:


June 29, 2016 July 28, 2016

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Other Vertical Opportunities

• Forestry
• Infrastructure and Construction
• Oil & Gas
• Mining

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