The following content is excerpted from the prospectus of Pinnacle Renewable Holdings Inc. dated December 15, 2017 filed on SEDAR.

Regional Supply - United States
The United States is the largest industrial wood pellet supply region in the world, with nameplate capacity
of approximately 8.0 million MTPA (accounting for 38% of global capacity) as of September, 2017. There are
four producers of industrial wood pellets in the United States that produce over 600,000 MTPA, with only
Enviva and Drax having capacity of greater than 1.0 million MTPA. The United States industrial wood pellet
industry is primarily focused in the U.S. South Central and U.S. East, due to a surplus of wood fibre availability
in these regions. Industrial wood pellet mills in these regions primarily utilize whole logs specifically procured by
the industrial wood pellet producers as feedstock. The cost of utilizing this material as feedstock typically
exceeds that of utilizing forest products residuals (such as sawdust and shavings), as additional processing steps
(such as chipping and particle size reduction in a hammermill) are required, and the cost of harvesting and
transportation from the forest is borne by the industrial wood pellet producer. Ownership of forestlands in the
U.S. is fragmented, comprised of individual landowners, timber real estate investment trusts, and timber
investment trusts.
Source: Pinnacle Renewable Holdings Inc. Prospectus filed on SEDAR dated December 15, 2017
Canada >>
Canadian industrial wood pellet producers had nameplate capacity of approximately 2.8 million
MTPA as of September, 2017...
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United States >>
The United States is the largest industrial wood pellet supply region in the world, with nameplate capacity
of approximately 8.0 million MTPA...
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Europe >>
European industrial wood pellet producers had nameplate capacity of approximately 6.9 million MTPA as
of September, 2017...
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Rest of the World >>
Industrial wood pellet nameplate capacity outside of North America and Europe remains relatively modest,
accounting for approximately 3.3 million MTPA...
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