Frequently Asked Questions

Does JBI, Inc. currently have fuel supply agreements?

Yes, beyond the initial fuel sale made in May 2011, the Company has active, on-going fuel supply agreements on several different levels.

On June 10, 2011, JBI, Inc. and Coco Asphalt Engineering, a division of Coco Paving, Inc. entered into a Supply and Service Agreement under which the Company has agreed to supply Coco Asphalt Engineering on a weekly, per demand basis with petroleum distillate.

On December 21, 2011, the Company signed a long-term fuel supply agreement with Indigo Energy Partners, LLC (“Indigo Energy”). Indigo Energy is a service-driven, wholesale distributor of petroleum products and renewable fuels that utilizes an expansive network of distribution terminals and bulk plants across the continental United States.

On December 23, 2011, the Company announced the signing of a multi-year transport fuel supply agreement with XTR Energy Company Limited (“XTR Energy”). XTR Energy will be purchasing Regular Transport Gasoline, Premium Transport Gasoline, Diesel Ultra LS Clear and other acceptable road transport products from JBI, Inc. These products are the fuel output of JBI, Inc.’s Plastic2Oil process, which will then be blended and made available through the Company’s Blending Site in Thorold, Ontario.

What is involved in completing a fuel supply agreement?

Prior to the final execution of a fuel supply agreement, substantial testing and due diligence is undertaken by the Purchasing Company. Typically, the Purchasing Company will request an initial sample of fuel produced by the P2O process to run small scale testing in their independent lab(s). Generally, this initial testing is followed by larger scale testing using the Purchasers own equipment or on-site at one of their customers’ locations. This process may take several months to complete.

What is the difference between No. 6 Fuel produced by JBI, Inc. versus industry standard?

No. 6 Fuel is heavy fuel generally used in industrial boilers and ships.

No. 6 Fuel produced by the P2O process is the Company’s cleanest product when compared with existing industry standards, containing less than 16 ppm of sulphur in comparison with the maximum of 30,000 ppm allowable in mainstream No. 6 Fuels. Other No. 6 Fuel products are residue products of the refining process and are considered residue fuels, where as JBI, Inc.’s No. 6 Fuel is a direct product of its P2O process, meaning it does not require further blending.

JBI, Inc.’s No. 6 Fuel is a clear brown liquid at temperatures of 90º F. It has been tested by major industrial users with positive results.

Has JBI, Inc. applied for any patents on its Plastic2Oil process?

Yes, the Company has filed for international patent protection on aspects of its P2O process through Osler, Hoskin & Hartcourt, LLP.

How much plastic waste can the P2O machine process per hour?

On February 9, 2012, JBI, Inc. received approval from the New York State Department of Environmental Conservation (NYSDEC) for an amendment to its Air Permit that allows the Company to operate Plastic2Oil® (P2O) processors at our Niagara Falls, NY facility at an increased rate of 4,000 lbs per hour. This rate is two times the rate at which the Company was previously authorized to supply feedstock to the P2O processor. The approval of the increased rate of operation now permits the Company to amend its Part 360 Waste Permit to reflect the storage of similar plastic volumes, and is a key component to our plans for long term growth.

Does JBI, Inc. receive its plastic feedstock for free?

Yes, the Company receives free waste plastic for its P2O processor(s) from automotive manufacturers, major food packagers, dairy companies, agricultural plastics and from many other sources. The Company is also recycling thousands of gas tanks, as well as bales of plastic film and many other free industrial-sourced waste plastics that are usually sent to landfill. The Company does not pay for any plastic.

One example of how JBI, Inc. is obtaining free plastic feedstock is with its agreement with Rock-Tenn Company ("RockTenn"). RockTenn's paper mills and MRFs currently produce thousands of tons of plastic per day. To handle the plastic waste stream, RockTenn has been storing this by-product in company-owned plastic-only monofill sites for several years. The agreement gives JBI, Inc. the exclusive rights to mine plastic from these sites.

In August 2011, China implemented regulations that greatly limit waste plastic importing. The regulation strictly limits waste import licenses and the waste plastic product must be used as a raw material in a new product. This regulation was implemented to curb pollution caused by burning waste plastics. As of November 2011, the regulation was tested and enforced in Guangzhou province and it successfully resulted in reducing waste plastic imports by 80%. China warns that strict enforcement of the new regulations will soon be extended to the entire country. The Company expects this regulation to be very beneficial in securing long-term feedstock supply.

Has JBI, Inc. obtained permits to operate P2O processors in Niagara Falls, NY?

As of June 14, 2011, all NYSDEC permits necessary to operate up to three Plastic2Oil (P2O) machines in Niagara Falls, NY were issued to JBI, Inc. The inspection report confirms that the Company is fully compliant. The Company is pleased with the assistance and cooperation it has received from NYSDEC.

Does JBI, Inc. have agreements with other companies?

On April 13, 2011, the Company entered into a referral agreement with Smurfit-Stone Container Corporation whereby Smurfit will, on a best efforts basis, make referrals to the Company of potential sites for the installation and operation of P2O processors. (Subsequent to this agreement Smurfit-Stone Container Corporation was purchased by Rock-Tenn Company.)

On July 29, 2011, the Company entered into a Revenue Sharing Agreement with Rock-Tenn Company ("RockTenn") to convert mill by-product waste into fuel using JBI, Inc.'s Plastic2Oil technology. Under the agreement, JBI, Inc. has an exclusive 10-year license, with a renewal option, to build and operate P2O processors at RockTenn facilities, to process RockTenn's waste plastic at paper mills and Material Recovery Facilities, and to mine and process plastic from RockTenn's plastic-filled mono-fill sites.

How does JBI, Inc. currently manufacture P2O processors?

The Company has retained two fabrication vendors to produce racked modules for Plastic2Oil processors. All modules will be manufactured in the U.S. The Company's management and new hires are working with the fabrication vendors to expedite manufacturing. During the first and second quarters of 2011, the processor was modularized for simplified expedient production and assembly of processors offsite.

What are the latest processor enhancements?

For information on processor enhancements made throughout 2011, please view the Company's SEC filing for 2011 Q3, Managment Discussion & Analysis.

What are the Company's current priorities?

The Company's current priorities include installing 2 additional processors at the Niagara Falls, NY facility in order to become cash flow positive as quickly as possible, and manufacturing 3 processors for an initial North American Rock-Tenn site. Additionally, we are in various stages of fuel testing with high volume fuel users, so that large fuel supply agreements can be finalized. Management anticipates that access to project financing for multiple additional processors will be forthcoming, given our access to free feedstock along with the closing of large fuel supply agreements. These priorities are being attended to simultaneously by company management.

When will shareholders receive further updates?

JBI, Inc. will disclose material events in a timely manner after they have occurred, but will not disclose progress during any negotiations that might lead to material events being announced.

Is JBI, Inc. fully reporting?

Yes. JBI, Inc. is a fully reporting company. This means that the Company meets the full suite of SEC filing requirements irrespective of which exchange the company is listed on. This includes annual audits, quarterly unaudited financial statements, interim filings for any material events, exchange review of all management and Directors, etc.

Who is on the JBI, Inc. management team and the Board of Directors?

Management team information can be found under Management Team and the Board of Directors is located in the Governance section of this website.

Where do JBI, Inc. shares currently trade?

JBI, Inc. trades under the symbol JBII on the OTCQB market.

How many shares are outstanding?

Up-to-date share counts can be verified by contacting our transfer agent.

Is JBI, Inc. cash flow positive?

The Company is not yet cash-flow positive. The Company's financial results are published every quarter and are made available under the SEC filings section.

How much debt does JBI, Inc. currently have and what are the sources of debt?

As of September 30, 2011, JBI, Inc. had short-term loans and notes of $315,618 and $75,000 respectively. JBI, Inc. has long-term liabilities in the form of two mortgages and an equipment loan, in the current amount of $216,832 and $11,621 respectively. Additional debt may be used in the future for new acquisitions or for general corporate purposes, and investors should always check the latest SEC filings for current information.

Are there other sources of information for shareholders?

JBI, Inc. considers disclosure of shareholder information one of its fundamental principles, to ensure as much transparency about the Company's progress as allowed by SEC rules. Information is consolidated on this website which provides links to current market prices for its securities, all Company press releases, all SEC filings, all Company financial statements, and includes detailed information about JBI, Inc.'s people, products, processes, partnerships and plans.

Does the Company follow Generally Accepted Accounting Principles (GAAP)?

Yes. JBI, Inc.'s financial statements conform to U.S. GAAP, and to all U.S. accounting standards and pronouncements, which is the highest requirement for U.S. based companies at this time.

How is the management team compensated?

JBI, Inc. uses performance-based compensation for part of each management position. Where required, any management contracts are disclosed through an SEC filing at the time they are established. John Bordynuik, Founder and CEO of JBI, Inc., has in the past received an annual base salary of $1. A compensation agreement with milestones for future payments was implemented in May 2010.

What are the Company's plans for growth?

Initial revenues from the first Plastic2Oil fuel sales have occurred, and are expected to increase as all permits to operate our processors in Niagara Falls, NY were granted by the NYSDEC on June 14, 2011.

We are currently devoting significant efforts launching the Plastic2Oil division across multiple sites, using revenue sharing models tailored to our prospective business partners. JBI, Inc.'s intent is to cluster several machines at one site, rather than build single machines at different locations. This model allows the most efficient allocation of construction and operational resources, while providing the greatest access to plastic feedstock sources and production capacity.

JBI, Inc.'s assets that are not critical to the development of Plastic2Oil will be pared back to strengthen the focus on our P2O Division.

Where is JBI, Inc. located?

JBI, Inc. is headquartered in Thorold, Ontario at:

JBI, Inc.

1776 Allanport Road

Thorold, Ontario

L0S 1K0 Canada

What is a transfer agent, who is yours, and how do I contact them?

A transfer agent is a regulated organization that keeps track of stockholder records and information. JBI, Inc.'s transfer agent is Pacific Stock Transfer Company. To find out more, please contact our transfer agent.

Does JBI, Inc. pay a cash dividend?

No, JBI, Inc. has never declared or paid a cash dividend nor do we expect to pay any dividends until such time as our cash flow will support it.

When is JBI, Inc.'s year-end and when does the Company report earnings?

Our fiscal year ends on December 31. Our quarters end on March 31, June 30, September 30 and December 31. The quarterly earnings results are usually announced by the end of the second month following a quarter-end. The Company's annual report will be released on or about March 31. Please visit the SEC Filings page for a complete listing of our reports.

Who is JBI, Inc.'s independent accounting firm?

MSCM LLP

701 Evans Avenue 8th Floor

Toronto, Ontario M9C 1A3

Telephone: 416.626.6000

Fax: 416.626.8650

Who is JBI, Inc.’s legal counsel?

As part of our continued growth, we welcome our new securities counsel, Pryor Cashman LLC, effective January 2012. Pryor Cashman has the expertise and sophistication that we believe will help us move our business forward and will be able to handle the complexities a new and emerging green industry participant will require. We look forward to having access to their expertise in financing, regulatory matters, securities reporting as well as corporate governance regulation.

As JBI, Inc., grows we will require a legal counsel that has the capacity and expertise to keep pace with our rapidly expanding business model.

How can I contact Investor Relations?

Refer to our IR Contacts page. We are always happy to answer questions and receive feedback from shareholders. We look forward to hearing from you.