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Alliance Bioenergy Issues Letter to Shareholders

WEST PALM BEACH, FL / ACCESSWIRE / September 7, 2017 / Alliance BioEnergy Plus, Inc. (ALLM) ("Alliance BioEnergy" and the "Company"), a producer of cellulosic products from agricultural waste streams, released a Letter to Shareholders today from Daniel de Liege, Chairman and Chief Executive Officer, highlighting the Company's assessment of 2017, expectations for 2018, and long-term view.

To Our Shareholders:

I wanted to take this opportunity to update shareholders of Alliance BioEnergy Plus on our progress thus far, and discuss the growth opportunity of Alliance Bio-Products, and importantly, what it means for Alliance BioEnergy Plus shareholders.

Since our inception in 2013, we have worked towards the development of our patented CTS process (Cellulose to Sugar), which converts virtually any cellulose material to its base components through a mechanocatalytic process. We built a pilot plant, analytical laboratory, brought on the inventor of the process and surrounded him with Ph.D.'s and engineers, with a view towards commercializing this revolutionary process.

Why is the CTS process revolutionary?

The CTS process enables virtually any cellulose material (agricultural wastes, yard wastes, specialty plants, paper and wood) to be converted to its base components through a mechanocatalytic process. It's fast, inexpensive, simple, and completely environmentally friendly. There are no hazardous materials necessary, no enzymes, no liquid acids, no applied heat or pressure in the process. There are no waste streams, nothing into the air, the land or the water and everything used in the process is recycled and because the process uses waste it CO2 neutral.

While the versatility of the CTS process is significant, the result is what truly makes this process so exciting. Through the CTS process, we can produce biofuels for less than $1 per gallon. This is important, considering that, for example, the value of cellulosic ethanol has now reached $4.58 per gallon. The value has risen nearly $1.00, or 27% percent in the past 10 months, showing a steady increase in demand.

Simply put, we are able to produce a high-demand product at a significantly lower cost, with a safer process, than anyone else.

Can this process be replicated by a competitor?

Alliance BioEnergy owns the exclusive license to four issued patents and 15 filed and pending patents all revolving around the CTS process. Alliance also has designed, built and filed patents on the CTS Reactor, which is necessary in the process. We manufacture these reactors ourselves, while the remainder of the process can be completed using off the shelf materials. This is a modular system, and is versatile enough to be customized to the space and capacity needed.

With the CTS process now ready for commercialization, we have begun to execute on our business strategy of licensing, as well as owning and operating facilities, retrofitting existing ethanol plants with the CTS process, transforming them into profitable renewable energy centers while providing energy and high value co-products.

Alliance Bio-Products, Inc. was formed as a special purpose wholly-owned subsidiary of Alliance BioEnergy Plus to own and operate a bioethanol plant in the United States. As an investor in Alliance BioEnergy Plus, you will benefit from the growth and eventual profitability of Alliance Bio-Products, and its investments. Currently, we have a funding opportunity through a 506(c) filing to raise $10 million to acquire and retrofit a closed ethanol facility in central, Florida. The purchase of the plant is being funded through a mixture of debt and equity. The equity portion of the investment is being done via the 506(c) filing to reduce as much debt as possible. We expect production will be able to begin at the plant by the end of 2018, potentially generating $32 million in EBITDA and then will look to double capacity to 16 MMGY, potentially generating $64 million in EBITDA in 2020 before maximizing the capacity of 34 MMGY, generating $128 million in 2023.

We were delighted to announce the approval from the United States Department of Agriculture (USDA) Office of Rural Development to move forward with the purchase in early July. The approved purchase includes the fully functional plant, 144+ acres that the plant resides on, and all related equipment and vehicles. The purchase will initially create 100 permanent jobs in the short term with additional employment opportunities as we grow. The community will benefit from an infusion of tax base revenues, as well as an increase in housing, hauling suppliers and more. It will significantly dispose of green waste that would otherwise fill up the landfill and release millions of tons of carbon dioxide. We are currently conducting an exhaustive due diligence on the property and equipment. One of our engineering partners, The Harris Group, has been on the ground for more than three weeks going through major components, maintenance records, licenses and permits as well as environmental impact. Once complete we will have a clear picture if this facility is the best fit for the first commercial application of the CTS process.

In addition, Alliance has identified three additional opportunities to build and/or retrofit existing facilities. From greenfield builds to bolt-on units to existing plants, the Company will continue to explore these opportunities and others as part of the overall strategy to increase shareholder value through licensing, joint ventures and company owned and operated plants.

We have developed a number of strategies which were designed to promote operational efficiencies and excellence. We are encouraged with the progress we've made thus far, but we have lots of room for growth. We are staying committed to implementing these strategies and keeping our focus on building our market, generating attractive revenues and earnings. We are currently in negotiations with several funding sources for multiple projects over the next three years and will report to the shareholders on our progress.

Over the last three months, our company has announced a number of accomplishments.

- Identified high growth potential in the biodegradable plastic market. This market according to research will reach $58-65 billion in 2022. In 2016, it was 19.54 billion.
- Approval and acceptance of the USDA to purchase a closed bioethanol plant.
- We completed the payoff of our short term convertible notes.

I am very confident that, long term, we will continue to grow the business as wider market acceptance of the CTS process and its benefits are achieved. We will continue to look for additional facilities that meet our objectives for investment, as well as licensing opportunities, where we have seen a tremendous interest. Our goal is to have the capabilities to change the market, improving our customers' operations, and make their businesses more productive.

Our employees are a big reason why we are where we are, and with their dedication, we expect to see Alliance grow significantly.

We thank our shareholders for their support and look forward to sharing future successes with you.

Sincerely,

Daniel de Liege
CEO

IR Contact:

Michael Porter
Matthew Abenante
Porter LeVay & Rose Inc
7 Penn Plaza
New York, NY 10001
mike@plrinvest.com
212-564-4700

SOURCE: Alliance BioEnergy Plus, Inc.