Co-Products Update. Dear Members and Staff, Volume No Plymouth Energy Newsletter December 15, 2010

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1 Volume No Plymouth Energy Newsletter December 15, 2010 Dear Members and Staff, I would like to inform you of a number of changes at board level that took place during the last quarter. Dave Hoffman, Greg Popkes and Rob Plendl have decided to step down from the board of Plymouth Energy for the time being, to concentrate on a number of opportunities presented to them in our neighbor company Plymouth Oil as well as their other extensive personal business endeavors. Prior to stepping down it was unanimously agreed that I would assume the role of Chairman and President of the board. Dave, Greg and Rob have made a tremendous contribution to the success of Plymouth Energy Company through development, start up and running to date. Their astute business sense and awareness of local shareholder needs have been a huge asset to Plymouth Energy. All three founding members can be very proud of what they achieved to date in the company. Plymouth Energy has had a strong performance year to date and can look forward to another profitable year in Our goal is to pay a dividend to our membership as soon as possible. We also need to consider that we will have to keep paying our debt down at the bank. This will give us some breathing room and also maybe lower our interest rate. On behalf of the board, we would like to thank Eamonn and the staff for a successful year. We would like to wish you all a Merry Christmas and a Happy New Year. John Becker, President Plymouth Energy Company Co-Products Update Thanks to the livestock feeders in northwest Iowa, most of the distiller s grain produced by Plymouth Energy LLC is fed locally, with very few of our DDGs exported. Last year about 18% of DDGs produced in the US were exported. This year the projections are that over 21% will be exported. With this increased demand, look for Distillers grain prices to stay firm. With the separator we installed in our plant we are able to produce wet and dry distillers at the same time keeping both products fresh. At this time we are making about 60% dry and 40% wet distillers. I want to wish everyone a very Blessed Holiday Season! Henry Mayland

2 Plymouth Energy Dear Shareholder, Update As I write this it now looks likely that VEETC, the small producer credit and the import tariff are going to get passed by congress. As I mentioned in my last letter to you, the ethanol industry needs this support from congress and the support is completely dwarfed by the huge subsidies the oil industry is receiving. What continues to baffle me is the little you read or see about this in the national media. In Iowa alone the ethanol industry supports over 70,000 jobs. As we have seen in the biodiesel industry these jobs were at risk without the extension of the tax credits. What seems to take precedence with our national media centres around simple un-truths. On the policy front Iowa Renewable Fuels, Growth Energy and the Renewable Fuels association have been completely on top of this situation for the past year. They have done a stellar job in helping the industry navigate the complexities of our Capital in Des Moines and Washington DC. We are thankful for their support and make our membership worthwhile. Operationally the plant continues to operate above name plate through December. Our crush margins have improved significantly. We have made some changes to our evaporators which should make them run more efficiently. The past few weeks have been particularly tough with the cold winter conditions but Charles Stremick and his team have enable the plant to run at an average of 109% for the past quarter. As I said before the company is lucky to have such a dedicated team of people as we have. During the last few months Carl Anderson and Linda Urban left the company to pursue other career opportunities. Carl was with us from the start and his skills will be missed. Linda played an important role as office manager also. We wish both every success in their future roles Financially we are going to have a good year with the company showing a much improved position on last year. We continue to aggressively pay down debt. Our risk management policy continues to serve us well. We are conservative in our approach and the work of Steve Meyer, our CFO, and Henry Mayland, our grain merchandiser has to be commended. The business is committed to aggressively paying down debt and building strong cash reserves. As I have said to many of you before this is a pennies game and we need to remain vigilant and capitalize on positive months and quarters so we are in a position to weather the storm in the negative times. Finally I want to thank you our valued shareholders and staff for your support I would like to take the opportunity to wish you and your families a happy and peaceful holiday season and hope the success we have enjoyed this year continues well into the future Yours in trust, Eamonn Byrne CEO

3 The price of Corn Purchased and Ethanol Sold Members 2010 has been both a challenging and rewarding year for the Company. Throughout the year, we have seen margins range from $.17 per gallon to over $.65 per gallon. The price of Corn Purchased and Ethanol Sold has been as volatile as ever given the global economics we now operate within. During 2010, we exported over 50% of our ethanol to Canada and the European Markets. I am pleased to report through prudent risk management practices and our ability to capture inherit benefits of these new markets, for the period September 30, 2010, the Company had positive net earnings of approximately $3,000,000, with the outlook for a strong fourth quarter. The Company will also reduce its debt level by over 5 mm with the reduction of term debt by $5,500,000. Furthermore and most importantly, we have continued to build working capital to continue this positive trend. Although we are not quite to the position to pay a dividend to the membership, please note that the enterprise value of your investment continues to grow as the Company s Balance Sheet Continues to Strengthen. On another note, for yearend tax planning purposes, we expect to realize approximately 10 million dollars in tax losses which will be reflected on your K-1. This difference is due to the acceleration of depreciation on plant equipment which is permitted under IRS regulations. Other key aspects to report for the year was the retention of Bruce Edward CPA to perform our yearend audit and the Construction of a New 850,000 bushel Grain Bin which we expect to be placed into service early in We thank all the members for their support during 2010 and look forward to a prosperous and strong Steven R. Meyer, CPA Chief Financial Officer Corn Outlook R.J. O'Brien In the last 6 months, corn has rallied from $3.50 to trade over $6.00. Several factors have combined to drive this rally. The most important of these was the disappointing finish to the 2010 crop year. For much of the growing season, the corn market anticipated a large crop due to favorable early season weather. However, heat and dryness in the 2 nd half of the growing season hurt crop potential. In August, the USDA was projecting a national yield of bu/acre. By November, that number had fallen to bu/acre. At the same time, demand from the ethanol and livestock industries has remained very strong. The combination of the smaller crop and strong demand has the USDA forecasting a very tight ending carryout of 827 million bushels. Relative to usage, this would be the tightest ending carryout since the historical 1995/96 crop year. Shortly after the November supply and demand numbers were released and the market made new highs above $6.00, the market endured a small sell-off. Year-end fund selling, lighter trading volume, and a lack of fresh news has since put the corn in a sideways trading pattern. For the past 2-3 weeks, the March corn has been trading in the $5.20- $5.80 range as it waits for the next big thing. That next big thing is likely to be the January 12 th Production, Stocks, and S&D reports. They will

4 include a rash of data that will set the tone for the rest of 2010/11 crop year. First of all, the USDA will make one final estimate regarding the 2010 corn crop. A strong historical tendency exists that when they lower the yield on the October and November reports, as they did this year, they further lower that figure in January. As such, most of the trade is anticipating even smaller 2010 final crop figures than the current estimates. However, the quality and test weight of the 2010 bushels have been very good. This may keep them from lowering the crop size too dramatically. The 2 nd thing they will look at on January 12 th will be the Dec 1 st stocks of US corn. This data will give the trade a good indication of how strong US demand was in the months of Sep, Oct, and Nov. Obviously, it will also show how much corn we have on hand to make it through the next nine months. With more concrete production, stocks, and demand figures, the USDA will also then release an updated balance sheet. If the ending carryout is still below 1.0 billion bushels, the trade will remain very nervous about the tight supply. Once the January reports are out of the way, the market is likely to turn its attention to the battle for 2011 acres. In Iowa, this will continue to be a showdown between corn and soybeans. In other parts of the country other high-priced crops such as cotton and wheat will also try to work their way into the acreage mix. With the 2010/11 corn, soybean, and cotton carry outs all forecast to be very tight, none of those markets will want to be outdone by the other two. In summary, the market has seen one significant rally and is now waiting to see if it needs to rally further or if it has done enough to ration demand and encourage production. The January reports and 2011 acreage decisions are likely to hold the answers. Currently the corn supply looks very tight. Therefore, barring a significant bearish surprise, the market should remain wellsupported and the potential exists for another round of new highs in Thomas Meierotto R.J. O'Brien Feature Employee: Getting to know us, Dan Goodman Maintenance Technician Hi! My name is Dan Goodman. I am currently serving as a maintenance technician for Plymouth Energy. I was born in Minneapolis, MN on August 5 th, I moved to Iowa in April of 1995 where I then attended school at LeMars Community. I graduated from LeMars High School in After graduation I attended Western Iowa Tech Community College for various classes and programs. I also attended several classes at NCC in Sheldon. I have been doing maintenance work for different companies since I graduated from high school which I have enjoyed. I am currently a maintenance technician here at Plymouth Energy, where I have been since September 2 nd of I enjoy working with the people at Plymouth Energy and the team atmosphere. I live on acreage east of Merrill, with my beautiful wife Maria to whom I have been married to for seven years. We have four children, Bailey who is 7, Trayden is 4, Carter who is 3 and Hunter who is 10 months. I have several hobbies which include golfing, hunting, fishing, church, work and most important family activities.

5 I have learned a lot about the ethanol industry in my time here at Plymouth Energy and look forward for what is to come.