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REX: NYSE www.rexamerican.com Stuart Rose, CEO Doug Bruggeman, CFO June 2014 Safe Harbor This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements can be identified by use of forward-looking terminology such as “ project, ” “ may, ” “ expect, ” “ estimate, ” “ anticipate, ” or “continue” or the negative thereof or other variations thereon or comparable terminology. You are cautioned that there are certain risks and uncertainties that could cause actual events or results to differ materially from those referred to in such forward-looking statements. These risks and uncertainties are described in our filings with the Securities and Exchange Commission. 2 REX Overview Successful alternative energy investor since 1998 Synfuel investments of $6M yielded ~$178M return over 10 years (~40% CAGR) Discontinued legacy retail operations in FY’09 to focus on alternative energy Ethanol investments initiated in 2006 $24M profit in FY’07 on $14M early ethanol investment Alternative energy represented 99.9% of revenue and 85.9% of assets Ownership in seven ethanol production facilities In aggregate, 750.2 million gallons of TTM annualized gallons shipped by seven plants REX effective ownership interest of TTM annualized gallons shipped = 262.8 million gallons Pre-tax ROI’s of 25% - 52% (trailing four fiscal years annualized) Revenues from ethanol, distillers grains & corn oil Strong, liquid balance sheet (as of 4/30/14) (based on 8.2M diluted shares) Unrestricted cash $55.5M ~ $ 6.76 / share Net book value of retail real estate $4.6M ~ $ 0.56 / share Carrying value of ownership in seven plants $267.8M ~ $32.65 / share REX shareholders’ book value $302.4M ~ $36.87 / share ROE-focused asset allocation discipline 10.7% average ROE since 1993 (despite low returns on high cash balances) Long-term/active share repurchase program Insider ownership approximately 21% 3 REX Ethanol Strategy Disciplined investment criteria Invest only if project meets strategic and financial risk and return criteria Align with farmers, farm cooperatives and farming communities as co-investors and owners of ethanol production facilities Facilitates access to grain supply, local community support Locate plants close to rail access and feedstocks Utilize state-of-the-art ethanol production technology Dry mill corn-processing All plants are highly efficient Fagen, Inc. constructed utilizing ICM, Inc. technology Fagen is large, respected U.S. green energy design-builder Seek to match grain prices with ethanol and distiller grain sales at consolidated plants Derivative contracts are generally not employed to hedge commodity price risks Maximize ethanol plant returns via: Running plants efficiently, often above nameplate capacity Sell distillers grains as animal feed Production of corn oil Ongoing reduction of plant level debt 4 REX Corn Belt Ethanol Portfolio Illinois ONE EARTH ENERGY, LLC REX AMERICAN RESOURCES TTM GALLONS SHIPPED BY PLANTS IN WHICH IT HAS INTERESTS Gibson City, IL 750.2 MILLION REX OWNERSHIP INTEREST REX’S EFFECTIVE OWNERSHIP OF TTM GALLONS SHIPPED 74% 262.8 MILLION South Dakota NUGEN ENERGY, LLC Marion, SD REX OWNERSHIP INTEREST 99% TTM GALLONS SHIPPED TTM GALLONS SHIPPED REX’S EFFECTIVE OWNERSHIP OF TTM GALLONS SHIPPED REX’S EFFECTIVE OWNERSHIP OF TTM GALLONS SHIPPED Illinois Iowa PATRIOT HOLDINGS, LLC BIG RIVER RESOURCES WEST BURLINGTON, LLC 112.0 MILLION 114.2 MILLION 82.9 MILLION 113.1 MILLION Annawan, IL West Burlington, IA REX OWNERSHIP INTEREST 27% REX OWNERSHIP INTEREST 10% TTM GALLONS SHIPPED 120.7 MILLION TTM GALLONS SHIPPED 107.4 MILLION REX’S EFFECTIVE OWNERSHIP OF TTM GALLONS SHIPPED REX’S EFFECTIVE OWNERSHIP OF TTM GALLONS SHIPPED 32.6 MILLION 10.7 MILLION Illinois Iowa BIG RIVER RESOURCES, GALVA, LLC Galva, IL REX OWNERSHIP INTEREST 10% TTM GALLONS SHIPPED 118.4 MILLION REX’S EFFECTIVE OWNERSHIP OF TTM GALLONS SHIPPED 11.8 MILLION BIG RIVER UNITED ENERGY, LLC Wisconsin BIG RIVER RESOURCES BOYCEVILLE, LLC Boyceville, WI Dyersville, IA REX OWNERSHIP INTEREST 5% TTM GALLONS SHIPPED REX OWNERSHIP INTEREST 121.7 MILLION TTM GALLONS SHIPPED REX’S EFFECTIVE OWNERSHIP OF TTM GALLONS SHIPPED 10% 55.8 MILLION REX’S EFFECTIVE OWNERSHIP OF TTM GALLONS SHIPPED 5.6 MILLION 6.1 MILLION Figures as of 4/30/14 5 High Return Ethanol Investments Plant Investment Timeline REX Total Investment Cumulative Earnings (4/30/14) REX Trailing Four Year Annualized ROI (1/31/14)* One Earth (1) Oct. ’07 $51M $62M 25% NuGen June ‘10 ($12.3M) Nov. ’11 ($19.7M) $32M $68M 52% Patriot (2) Dec. ’06 ($16.0M) Jan. ‘12 ($1.9M) $18M $24M 28% Big River Oct. ’06 ($5.0M) Jan. ‘07 ($5.0M) July ‘07 ($10.0M) Sept. ‘09 ($0.03M) $20M $34M 27% $121M $188M Total * Calculated based upon the weighted average capital invested and pre-tax returns generated over the time period 1 Production commenced in July ’09 2 Production commenced in Sept. ‘08 6 Favorable Quarterly Comps First Quarter 2014 $ in thousands, except per share / per gallon data Sales REX GPRE (3) PEIX (3) $155,936 $733,889 $254,543 Gross Profit 36,550 100,749 38,545 Operating Income 38,676 78,343 34,875 Pre Tax Income (Loss) from Continuing Operation 35,574 69,728 (7,556) Net Income 21,742 43,203 (10,826) $2.67 $1.04 ($0.69) 64.4 (1) 230.8 (2) 39.8 (2) $0.55 $0.30 ($0.19) EPS Ethanol gallons production sold (millions) Pre Tax Income (Loss)/Gallon (1) Rex gallons are ownership adjusted. (2) Based upon gallons produced and sold . (3) Publicly sourced data. 7 Favorable Annual Comps Annual 2013 $ in thousands, except per share / per gallon data Sales REX GPRE (3) PEIX (3) $666,091 $3,041,011 $908,437 Gross Profit 64,151 173,020 32,930 Operating Income 63,480 107,851 18,909 Pre Tax Income (Loss) from Continuing Operation 54,614 72,281 (781) Net Income 35,073 43,391 (781) $4.29 $1.26 ($0.17) 262.4 (1) 734.5 (2) 149.7(2) $0.21 $0.10 ($0.01) EPS Ethanol gallons production sold (millions) Pre Tax Income (Loss)/Gallon (1) Rex gallons are ownership adjusted. (2) Based upon gallons produced and sold . (3) Publicly sourced data. 8 Ethanol Industry Considerations The ethanol industry produced approximately 13.3 billion gallons of ethanol in 2013, thereby reducing U.S. reliance on foreign oil Helps U.S. balance of trade Helps U.S. move towards energy independence Over 462M barrels of imported oil displaced Approximately 1/3 of corn used in ethanol production is returned to feed market in the form of distiller grains, corn gluten meal and corn oil* National benefits Government payments to corn growers have fallen from nearly $9 billion in 2006 to less than $2 billion in 2013* Land transitioned away from “land bank” Ethanol production generates higher tax revenues Ethanol production added over $44B to GDP* Ethanol production increased household income by ~$31B* Industry receives no tax subsidies Farm states are less impacted by challenged economic environment Ethanol estimated to have supported over 387,000 jobs, including across ancillary industries, from agriculture to manufacturing to the service sector* On a life cycle basis, corn-based ethanol reduces greenhouse gas emissions (GHGs) by ~34% compared to gasoline – 13.3 billion gallons of ethanol reduced GHG emissions by 38 million metric tons, the equivalent of taking 8 million cars off the road* $8.3B paid in federal, state and local taxes* Sources:* Renewable Fuels Associations 9 Expense/Demand/Pricing Drivers Corn USDA Crop Production Forecast: 2013 (January 2014 report) 13.9 billion bushels (average acre yield of 158.8 bushels) 2012 (November 2012 report) 10.7 billion bushels (average acre yield of 122.3 bushels) Ethanol Federal EPA ethanol purchasing mandates(1) : Year Target 2013 13.8 BGY 2014 13.0 BGY(2) Efficient plants expected to operate near capacity levels Year Capacity 2013 14.8 BGY (14.0 in operation at Jan. 2014) Distillers Grains / Corn Oil Allows for the recovery of approximately 1/3 of the cost of corn 1 Mandates can be partially met by use of available RINS from the prior years toward the current year requirements and/or to carry forward a deficit into the next compliance year. 2 Proposed – not final EPA number. 10 REX TTM Sales Mix Revenue Mix TTM 4/30/14 Distiller Grains $128.6M 20.7% Revenue Mix TTM 4/30/13 Corn Oil $17.6M 2.8% Syrup $0.2M 0.1% Corn Oil $17.7M 2.6% Distiller Grains $154.2M 22.5% Syrup $2.0M 0.3% Ethanol $474.4M 76.4% Total TTM 4/30/14 Revenue of $620.6M Ethanol $510.0M 74.6% Total TTM 4/30/13 Revenue of $683.8M TTM Sales Mix Ethanol Distiller Grains Corn Oil Syrup TTM 4/30/14 $474,356,813 76.4% 128,553,994 20.7% 17,557,790 2.8% 161,771 0.1% TTM 4/30/13 $509,962,933 74.6% 154,159,507 22.5% 17,716,241 2.6% 1,987,450 0.3% TOTAL $620,630,368 $683,826,131 100.0% 100.0% 11 Operating Results $ in millions, except per share data Three Months Ended April 30, 2014 2013 Twleve Months Ended January 31, 2014 2013 Alternative Energy Real Estate Total net sales and revenue $155.8 0.1 $155.9 $178.3 0.1 $178.4 $665.6 0.5 $666.1 $656.1 0.5 $656.6 Gross profit $36.6 $9.0 $64.2 $13.6 Segment profit (loss) Alternative energy Real estate Corporate expense, net $38.9 (0.1) (0.8) $6.6 (0.1) (0.7) $63.2 (0.4) (3.1) $(1.0) (0.5) (2.3) Net income (loss) from continuing operations $21.7 $3.2 $33.9 $(2.9) Diluted net income (loss) from continuing operations per share $2.66 $0.39 $4.15 $(0.35) Net income (loss) $21.7 $3.5 $35.1 $(2.3) Diluted net income (loss) per share $2.67 $0.43 $4.29 $(0.28) 8.1 8.2 8.2 8.3 Amounts Attributable to REX Common Shareholders Weighted average diluted shares outstanding 12 Strong Balance Sheet $ in millions April 30, 2014 $ 125.6 January 31, 2014 $ 105.1 Total current assets 168.5 148.8 Property & equipment, net 198.4 202.3 Equity method investments 74.4 71.2 Total Assets $ 446.9 $ 427.9 Current portion of long-term debt $ $ Cash and cash equivalents 10.1 12.2 Total current liabilities 31.0 32.1 Long term debt 58.1 63.5 $ 302.4 $ 279.3 Total REX Equity (excludes non-controlling interests) 13 Capital Allocation Priorities Ethanol plants and other industrial investments Repay debt at existing facilities Energy projects using our commodity experience and state-of-the-art technology focus Share repurchases below book value ~1.7M shares repurchased over the last three fiscal years at average price of $17.82 ~2.8M shares repurchased over the last five fiscal years at average price of $16.00 Repurchased 137,015 shares in FY’13 at average price of $25.44 280,006 shares remaining under current repurchase authorization 8.2 million common shares outstanding Growth in Book Value Per Share vs. Annual Average Price of Shares Repurchase $40 $35 $34.06 $30 $30.06 $25 $20 $25.82 $23.51 $15 $10 $24.93 $15.99 $10.82 $10.82 FY08 FY09 $30.04 $25.44 $17.02 $17.82 FY11 FY12 $5 $FY10 FY13 14 Deep Heavy Oil Technology Investment Much of the world’s oil reserves are in the form of heavy oil in deposits at depths below 2,000 feet Heavy oil is too viscous to flow to the well at a reasonable rate under ordinary conditions, so technology is needed to help extract it The most practical method developed so far is to inject steam into the reservoir, to raise the temperature thereby reducing the oil's viscosity Current methods are limited by the heat losses on the surface and in the well bore as the steam is sent down the injection well. For any particular heavy oil reservoir and price of oil, there is a maximum depth of the reservoir that can be economically exploited REX invested in patented technology with potential to steam oil at depths currently unattainable Current technology allows for injecting steam below grade to ~2,000 feet to extract heavy oil New downhole steam generator technology seeks to create steam at depths below 2,000 feet to produce deep heavy oil Modest investment / high potential returns REX has invested ~$1.2M (through 4/30/14) for 60% equity stake in technology developer, to secure patents, and to pursue commercialization of the downhole steam generation technology Presently seeking sites/opportunities to test and prove technology 15 REX Summary Successful alternative energy investor since 1998 Interests in seven ethanol production facilities with annualized sales of ~750 million gallons (TTM) REX effective ownership interest of annualized TTM gallons sold = ~263 million gallons Pre-tax ROI’s of 25% - 52% (trailing four year annualized) Industry leading ethanol production skill and plant efficiencies REX ethanol operations are among best performing plants Alternative energy segment profit of $63.2M in in FY’13 and $38.9M in Q1’14 Growth opportunities in ethanol and other industrial sectors Repay debt at existing facilities and expand ownership of existing facilities Invest in new ethanol plants or industrial projects requiring similar skill sets Proven management team with asset allocation discipline 10.7% average ROE since 1993, despite low returns on high cash balances Long-term program of share repurchases below book value Insider ownership of approximately 21% Strong asset base (at 4/30/14): Shareholders’ equity $302.4M (~$36.87 per share) Consolidated cash $125.6M 8.2M shares outstanding 16 Doug Bruggeman REX Chief Financial Officer (937) 276-3931 Joseph Jaffoni, Norberto Aja JCIR (212) 835-8500 [email protected] One Earth Energy, LLC Gibson City, IL