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Investor Presentation January 2014

Investor Presentation January 2014. SEL Exchange. Vito Buffone Founder, President & CEO TSX-V: SEL. Forward-Looking Statements.

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Investor Presentation January 2014

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  1. Investor PresentationJanuary 2014 SEL Exchange Vito Buffone Founder, President & CEO TSX-V: SEL

  2. Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the “safe-harbour” provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including changes from anticipated levels of sales, future national or regional economic and competitive conditions, changes in relationships with customers, access to capital, difficulties in developing and marketing new products, marketing existing products, customer acceptance of existing and new products, and other factors. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company has no obligation to update the forward-looking information contained in this presentation. SEL Exchange TSX-V:SEL 2

  3. Electronics sold are returned to retailers 3-12% 70% Of returned electronics are land-filled by retailers 9,000,000tonnes/year Electronic waste sent to landfills in the U.S. SEL Exchange TSX-V:SEL 3

  4. Regulatory Drivers To Reduce Landfill Usage Ontario’s Waste Reduction Act 60% Producers to meet government-set waste reduction requirements: • Collection • Reduction • Reuse • Recycling Ontario waste produced by industries & businesses <14% Waste from industries & businesses recycled Making producers and retailers increasingly responsible and accountable for their waste 4

  5. There is a real need for landfill diversion solutions for electronic waste SEL through its subsidiary SLM provides a responsible and effective solution to manage returned electronics SEL Exchange SEL Exchange TSX-V:SEL

  6. >99% * SLM Recovery Rate Salvage Recycle Resale Donate Recipient of The Recycling Council of Ontario Gold Award * Based on independent waste audits since 2011 SEL Exchange TSX-V:SEL

  7. How We Work… 1 2 3 Dismantle & Components Sold Quality Assurance at SLM Facility • Service • Repair • Refurbish • Warranty SLM Receives Products • Manufacturers • Distributors • Retailers Returned Electronic Products to Retailers • Defective • Change of heart Final Disposition • Sold at SLM Retail Store (Brampton, ON) • Sold to Secondary Retailers Process exceeds ISO 14001 standards One stop service depot to help customers effectively and responsibly deal with returned electronics 7

  8. We Benefit Our Customers… RETAIL STORE ADMINISTRATION COMPLIANCE • Environmental audits • 100% accountability • Low environmental impact • Regular pickups • No disposal costs • No warehousing • Complete reporting of salvaged and recycled materials by volume • Provide retailer and distributor accurate accountability • Distributor and retailer reduce environmental impact • Salvage benefits from asset recovery for both retailer and distributor Reduction in volume of returns due to improved products More satisfied and loyal customers Cost savings = + 8

  9. SLM Helps Clients… Reduce operating costs Lower landfill deposits Demonstrate commitment to reducing environmental impact Increase quality control SEL Exchange TSX-V:SEL

  10. Loyal Customers SEL Exchange TSX-V:SEL

  11. Financial Performance * Qualifying transaction expenses of $272,301 ** Qualifying transaction expenses of $321,006 SEL Exchange TSX-V:SEL 11

  12. Growth Strategy Organic and Strategic SEL Exchange TSX-V:SEL

  13. Organic Growth 150 Provide service and warranty for Canadian Tire store branded power tool lines presently going to landfill Assist Wal-Mart Canada in returns structure for salvage and landfill waste reduction Truck loads prevented from going to landfills per year = Reduced waste costs Increased net margins SEL Exchange TSX-V:SEL

  14. Organic Growth U.S. Expansion in 2014, Servicing Existing Clients Expand Canadian Services SEL Exchange TSX-V:SEL

  15. SRT Acquisition - Strategic Growth 1991 Specialize in Point of Sale (POS) systems service and repair Clients for over 10 years: Fujitsu Canada, NCR Canada, IBM Canada Exclusive service providers to Ontario Lottery and Gaming (OLG) and Fujitsu Canada Servicing over 60% of all POS systems for McDonalds Canada Year SRT was founded >$4.2m SRT 2012 Revenue $890,000 SRT 2012 net income (before extraordinary items) SEL Exchange TSX-V:SEL

  16. SRT Acquisition - Strategic Growth Both companies are cash flow positive Fully accretive acquisition U.S. expansion strategy with immediate positive cash flow opportunity SLM will be entering a new market vertical (high-end electronics, B2B) Cross-selling opportunities Competitive and economic advantage through combined workforce Combined management experience (provides SEL with full time CFO) SEL Exchange TSX-V:SEL

  17. Strategic Growth – SRT and SLM Relations in the U.S. SEL Exchange TSX-V:SEL

  18. SRT Acquisition - Strategic Growth SRT purchase price: $5 million Valuation: 5.6X adjusted EBITDA $1 million in SEL common shares @ $0.10 $4 million in cash on closing SRT shareholders agree to a VTB of $500,000 in case of a short raise with same terms as financing SEL Exchange TSX-V:SEL

  19. SEL/SRT Combined Financials • $321,000 one time QT costs • Adjustments for public tax rate • Adjustments: For illustrative purposes only. Not to be used as guidance. SEL Exchange TSX-V:SEL

  20. 2014 Objectives Develop processes with the Environmental Consortium operated by University of Arkansas and University of Arizona R2 Compliant (Currently exceed standards) Open retail outlets in Canada and the U.S. Expand relationships with key customers: Canadian Tire & Wal-Mart Open operational facility in U.S. & Expand SLM services to U.S. customers ISO 14001 registration (Currently exceed standards) Membership in the Ontario Environmental Stewardship Program SEL Exchange TSX-V:SEL

  21. Board of Directors Vito Buffone Founder, President & CEO Vito is a serial entrepreneur, he started running the family restaurant 1985 and has subsequently built, operated and sold businesses throughout his career. Shareholder and founder in several import, export and manufacturing operations. Has been deeply involved in electronics refurbishing, distribution and recycling since 2001. Paul Haber, CPA, CA Interim CFO Mr. Haber has been the CFO of several TSX / TSX V companies. Henry Tse, B.Comm, MBA, CA, CFP Director Henry has experience in a multitude of business leadership roles. He is a founder of iBroker Power Financial Services, and has served as CFO for several TSX V listed companies. (Jite Technologies and McVicar Industries) Gary Clifford CPA, CA Director An accomplished business leader and a turnaround expert with a broad functional background and strong operating skills. Current Chairman and CEO of Tellza (TSX:TEL) Don Hathaway B.ENG, B.SC, MBA Director Once Vice Chair of the Small Business (Ontario) Institute of Corporate Directors. Board Chair of Compute Canada. Presently sitting on four boards, both private and public. SEL Exchange TSX-V:SEL

  22. Capital Structure & Balance Sheet * from CPC ** from qualifying transaction *** Receivables and Inventory SEL Exchange TSX-V:SEL

  23. Financing SEL Exchange TSX-V:SEL

  24. Terms of Financing – Convertible Debenture Offering • President’s list to raise $2M, with $2.2m to be raised from capital markets ** Redemptions at a premium at the option of the holder as offered by the issuer SEL Exchange TSX-V:SEL

  25. Contact Information Vito Buffone, CEO and President, SEL Exchange email: vito.buffone@slm-logistics.com Paul Haber, interim CFO email: phaber@blackbirchcap.com Expressions of interest should be directed to: Tim Woods Foster and Associates email: twoods@fostergroup.ca Phone: 416-369-3208 Suite 1100, 372 Bay St. Toronto, ON. M5H 2W9 SEL Exchange TSX-V:SEL

  26. Investor presentationJanuary 2014 Certain information contained in this document was obtained from sources we believe to be reliable but is not guaranteed by Foster & Associates and may be incomplete. Foster & Associates is a registered investment dealer in the jurisdictions in which this financing is being offered and is a participating member of the TSX-V Exchange. The Firm and/or its officers, directors, and associates may, from time to time, make purchases and/or sales, in the open market, of the securities referenced here-in. SEL Exchange Vito Buffone Founder, President & CEO TSX-V: SEL

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