PRIVATE AND CONFIDENTIAL

Disclaimer: Forward Looking Statements

Cautionary Statement Regarding Forward-Looking Statements

This presentation includes forward-looking statements within the meaning of Section 27-A of
the Securities Act of 1933, and Section 21-E of the Securities Exchange Act of 1934.
Such statements include declarations regarding the intent, belief, or current expectations of
the company and its management.
Prospective investors are cautioned that any such forward-looking statements are not
guarantees of future performance, and involve a number of risks and uncertainties that can
materially affect actual results as identified from time to time in the Companys Reports.
Forward looking statements provided herein as of a specified date are not hereby reaffirmed
or updated.

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MagneGas System
Plasma Arc Flow TM Refining Systems

The patented Plasma Arc Flow Refinery gasifies various feedstocks into MagneGas
(Anti-freeze is the preferred input for metal working; the Refinery can also process sewage, sludge)

Electrodes are submerged in liquid waste

and electricity is fired between them
The liquid breaks down to the atomic
level, MagneGas TM bubbles to the
surface for collection
The refinery runs quietly, completely
sealed environment, emits no odor or
noise pollution
Refinery has small footprint (~200 sq. ft.),
mobility and ease of installation
Patented technology based on over 30
years of scientific research by Dr. Santilli

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Company Profile
MagneGas: A Patented Fuel made from a Patented Process

Founded in 2007 by world-renowned Harvard and MIT physicist

Plasma Arc Systems produce a Natural Gas Alternative produced from
various liquids and liquid waste (currently using ethylene glycol)

Hydrogen
CO, CO2
Trace Gases

MagneGas is sold as a cost effective, better performing

replacement for acetylene in the $5 Billion Metal
Working Market
MagneGas fuel is interchangeable with natural gas, propane and
acetylene in the metal working and industrial vehicle markets
Company holds U.S. patents for MagneGas and Plasma Arc Flow
technologies; latest patent issued in 2010

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Our Revolutionary Fuel Product

MagneGasTM Fuel

Large End Market Opportunity - $5 Billion Industry

Cost Effective in Metalworking Priced 20% to 30% Less Than
Acetylene

Cuts Faster and Burns Hotter - Faster, higher quality cuts than acetylene
Cuts Cleaner - Lower toxicity than Acetylene; actually emits 12.5% oxygen;

Welders report that MagneGasTM cuts cleaner and faster, produces higher quality cuts with a narrower
kerf1, less slag, no top edge rollover and a smaller heat affected zone. [Source: Welding Journal]
1Definition:

the width of the groove made by the torch.

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The Hottest Trend in Metal Working

MagneGasTM is a Triple Threat to the $5 Billion Global Acetylene Market

1) Its Less Expensive

Acetylene costs have risen 50-60% over
the last 5 years1

2) Its Faster
BTUs directed, not dispersed target
area heats more quickly

3) Its Cleaner

Attributes

Acetylene

MagneGas

Slag

Significant

Little to None

Top Edge Rollover

Significant

None

Soot

Significant

None

Noxious/Harmful Fumes

Significant Hazard

Minimal (yields 12% oxygen)

Pooling if Leaked

Significant Hazard

None (lighter than air)

Porous Filler / Stabilizer

20% by Volume

None

Useable Gas in Cylinder

80%

100%

Company believes burns cleaner than

fossil fuel actually emits 12.5% oxygen

MagneGas Specs
Flame temperature: has been independently
tested at over 10,000F

MagneGas at Work
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Note 1: Price increase estimate according

to J&M Acetylene Manufacturing Co.

Domestic Distribution
Getting our Revolutionary Fuel to Market in Three Ways
MagneGas
Retail
Platform
Model:

MagneGas
WholeSale
Platform

Sell Fuel Retail Direct to

End Users

Local direct sales at retail prices

Florida Location

Sell fuel wholesale to

Regional Distributors

Execution

Execution

Several large
customers

Model:

end

users

already

Install MagneGas refineries to work

as regional filling stations within
existing fuel distributors
Partner with distributors
Michigan Location

MagneGas
On-Site
Platform
Model:

Install Onsite at Large

Customers

Execution
Install mobile MagneGas refineries
on-site at scrap yards or demolition
sites.
Gas will be pumped directly to
torches to eliminate need for
cylinders. Negotiate metered sale
price.

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Scrap Yards The RJ Torching Model

MagneGas has a Significant Opportunity in the Domestic Scrap Yard Business

Sizeable Market The Company estimates there are 8900 scrap yards
in the U.S., 10% of which use more than $1 MM in cutting fuel every year.

On-Site

Refinery Creates Improves Bottom Line Large Scrap

yards like RJ Torching see the value in placing a MagneGas refinery on
site:

Reduction in Downtime Between Cylinders

Faster and More Efficient Cutting
Less Time Between Cutting and Handling
Need for Waste Removal Addressed
Minimizes EPA Fine Risk from Emissions

Annual Scrap Yard Revenue Opportunity

Total Estimated U.S. Scrap Yards

8,900

Target Market
Scrap Yards using >$1MM in Cutting Fuel

890

MagneGas Penetration of $1MM+ Market

10%

Minimum Implied Revenue ($MM)

MagneGas Retains Ownership of Machines Machines connected

directly to torches have the same capacity yet use far fewer cylinders and
require less overhead, improving both ROI and margins for MagneGas.
"After extensive testing, we determined
MagneGas exceeded our expectations
with its superior metal cutting properties,
reduced secondary smoke while also
increasing our savings on operating
costs."
- RJ Torching President

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$89.0

A 10% share of the targeted scrap yard

market (1% overall) creates revenue
opportunity of over $89 MM annually

MagneGas Recent Business Catalysts

General Motors Concludes
Testing and Begins Purchasing
MagneGas

MagneGas has completed over 18 months of extensive testing with

GM and its union representatives.
Used at Mont Blanc Facility to replace Acetylene

We are always in pursuit of technologies that enhance quality and efficiency while also performing well on a holistic
business case. In its current state, this technology does just that. We're working closely with MagneGas to discuss
possible future applications with potential to reduce our environmental impact. - Manager of waste-reduction efforts at GM

One of the largest demolition companies in the USA

LVI Services Inc. Begins
Purchasing from MagneGas

MagneGas was chosen after demonstrating to be a faster, safer

and cleaner performing metal working fuel than gases currently
used by LVI.

there is no other gas on the planet that can cut some of these very large castings, we have found
that only MagneGas can," - Project Manager at LVI

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MagneGas Recent Business Catalysts

RJ Torching, Inc. To Place
MagneGas Refinery On-Site

MagneGas to provide fuel for metal cutting exclusively at

recycling facilities in Flint, MI.
Installation of a MagneGas refinery on-site

"After extensive testing, we determined MagneGas exceeded our expectations with its superior metal
cutting properties, reduced secondary smoke while also increasing our savings on operating costs.RJ Torching President
Expansion to Latin America with
$2.7 MM Purchase Order for
300Kw Refinery from Clear Sky
Energy of Mexico

Initial contract for 300Kw unit for $2.7 MM with an option to

purchase additional 5 refineries. MNGA will receive a 5% royalty
from all related gross revenues
Clear Sky will be the exclusive MagneGas distributor for Mexico

"We are impressed with the fuel's ability to cut metal effectively, quickly and in an environmentally
friendly way and look forward to working with the company to expand its international customer
base. President of Clear Sky Energy
Military Contract Potential through
Edison Welding Supply Testing

Edison Welding Supply has completed initial testing of

MagneGas for the U.S. Navy in the untapped pacific NW market
and was one of two solutions picked for additional testing.
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MagneGas Growth Strategy

MagneGas Strategic Initiatives are Underway

Drastically increase the amount of refineries and cylinders

in rotation in the U.S. market to fulfill current and future
demand increases
Greatly expand sales efforts and strengthen influential
relationships with key customers and distributors in order
to develop additional strategic partnerships
Gain significant market share in the multi-billion dollar
metal working fuel market, displacing acetylene, propane
and natural gas

Managements Goal is
to Make MagneGas the
Worlds Preferred
Metal Working Fuel

Global media campaign through IR firm KCSA to increase

brand awareness of MagneGas as the worlds preferred
metal working fuel
Leverage academic ties to further validate and improve
proprietary technology

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MagneGas Fuel Target Markets

MagneGas Initially Targeting Fuel Sales in Two Sizeable Markets

Metal-Working Market Immediate

Estimated $5.0 billion global market size ($1.5 billion U.S. market)1,
The existing fuels emit highly toxic emissions
Limited regulatory barriers to entry, sales underway ($7 unit cost2, $24
sale price)
Significantly cheaper than acetylene; 1 cylinder of acetylene is selling
for $35 to $50 compared to $20 - $35 per cylinder for MagneGas

Industrial Vehicle & Hydrogen Market Medium

Term
Hydrogen can be separated from MagneGas
Company believes MagneGas exceeds all EPA standards
and actually emits substantial oxygen
Vehicles already in service at Company HQ
1Source:

IbisWorld, Company Estimates

production at full capacity
3Source: U.S. Natural Gas Vehicle Market, Clean Energy
2Assumes

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Growing Multi-National Customer Base

MagneGas has a Growing Client List of Top Tier Metal Working Companies and Gas Distributors with both
Domestic and International Focus

Not only is MagneGas cost competitive, it is a greener alternative than what we are
currently using for metal working and it has exceeded our expectations in terms of its
metal cutting performance. Our commitment to the environment made the decision to
switch to MagneGas the right choice for us. GM of OneSteels U.S. Operations
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Economics of 300Kw Wholesale Refinery

These results are based on
what management believes are
conservative pricing and cost
assumptions

Assumed 300Kw Wholesale Refinery Performance at 85.0% Capacity

MONTHLY
Gas Sales Revenue
Direct Cost of Manufacturing
Gross Profit
Gross Margin
Net Income
Net Margin

As MagneGas gains market

share, management believes
both demand and sale price
will continue to rise while
many operating expenses
will be reduced from
economies of scale

ANNUAL

$153,000
$53,363

$1,836,000
$640,360

$99,637
65.1%

$1,195,640
65.1%

67,078.33 $ 804,940.00
43.8%
43.8%

Cylinder Cost and Production at 85.0% Capacity

Total Direct Cost / Cylinder
$6.98
Cylinders Produced and Sold Annually
91,800
Note: Assumes $20 / cylinder sale price at full capacity of refinery,
based on management estimates at full capacity

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MagneGas Refineries International Markets

Equipment Sales International Focus on Selling Refineries and Receiving Royalties on Gas Sales

MagneGas recently announced a purchase agreement for a single

refinery with an option for five more at an initial sale price of $2.7 MM.
MagneGas Refinery Sale Summary
Sale Price for a Single 300Kw Refinery
Est. Fabrication and Set-Up Cost
Gross Royalty (%)
Annual Royalty per Refinery at Capacity

$2,700,000
$750,000
5%
$137,700

Note: Assumes $30 / cylinder sale price internationally

Plasma Arc Flow Refinery units come in a range of sizes

and through-put capacities and are built to fit flatbed trailers
allowing for simple transportation and a small installed footprint
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Capital Structure
February 3, 2013
Basic Common Stock Issued and Outstanding
Class A Preferred Shares Outstanding
($.001 Par Value; No Coupon; Voting Rights)

Stock Options (@ $1.50) (employee owned, vesting)

Stock Warrants (@$2.50)

20,042,616
1,000,000
2,910,000
15,000

Stock Warrants (@$3.00) (November 2011 PIPE Investors)

1,980,438

Stock Warrants (@$4.00) (March 2012 PIPE Investors)

1,067,687

MagneGas Executed a Reverse Stock Split of 10:1 on June 26, 2012

Note: 9,982,101 Shares held by insiders are subject to a 90 day lock-up period after the effective date of the prospectus.
Public Float Roughly 42.3% (excluding warrants and options)

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Balance Sheet
September 30,
MagneGas Balance Sheet Summary for Quarter and Year Ending,
2012

December 31,
2011

ASSETS
Cash and equivalents
Total current assets

$4,314,751
$6,134,861

$1,429,412
$2,107,954

$12,782,409

$6,191,737

Total current liabilities

$1,203,273

$966,822

TOTAL LIABILITIES

$1,203,273

$966,822

Total stockholders' equity

$11,579,136

$5,224,915

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$12,782,409

$6,191,737

TOTAL ASSETS
LIABILITIES AND STOCKHOLDERS EQUITY

MagneGas has a clean balance sheet with limited debt

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Contact
COMPANY INFORMATION
150 Rainville Road
Tarpon Springs, FL 34689
www.magnegas.com

CONTACT
Luisa Ingargiola, CFO
MagneGas Corporation
727-934-3448
Luisa.ingargiola@magnegas.com

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