Machinery Update:

John Deere Tractor: Our Farm-Trac tractor was not large enough to handle the amount of material we will be moving, and was traded in on a larger 2010 John Deere tractor this week. The John Deere will be used to handle raw material and maintain the property. It also has pallet forks and can be used as a rough terrain forklift. To be more efficient, we will need to purchase a skid-steer, but can initially use the John Deere as our all-purpose poop-mover.

MCRS 600 Bagging System:The bagging machinery was delivered and assembled last month. In addition to assembly, the rather complicated task of supplying 3-phase power for the machine was also completed with the installation of a 3-phase rotary converter. Jim Mattson, of JEM/Express Scale Parts, visited to go over the MCRS system with me and it is now ready to get busy. The pallet wrapping machine was delivered last week. All this equipment is set up permanently in the existing shop building and is fully operational, so we are now ready to begin bagging product!

CT-5 Ag-Bagger: In the short term, we will generate some cash flow by bagging a crumbled product purchased in bulk, but will continue working to get the additional machinery in place for processing our own product – MightyGrow Living Organic Fertilizer. The CT-5 Ag-Bagger is the machine used to put the raw material into the eco-pods. Rather than purchase a used CT-5 Ag-Bagger as previously planned, we took advantage of an excellent financing program available for the purchase of new agricultural machinery. With this program, we are able to purchase a NEW machine with zero down and we can use it for one year before the first payment is due, allowing us to conserve our cash. Delivery is being arranged.

Ribbon Mixer & Generator: As soon as the concrete work is completed, the 240 cubic foot ribbon mixer will be lowered into place using a crane. The 100 kW diesel generator will be serviced by a local diesel specialist and connected to the ribbon mixer to provide 3-phase power. Eventually, it will be replaced by a large 3-phase converter. The diesel generator can then be sold or retained to provide emergency power.

Shop building expansion: In my last update, I reported that the site work had been completed for adding a 60'X80' expansion to the existing shop building to allow for raw material processing. On May 18th, the crews began forming for the slab and the concrete work should be completed within the next two weeks. The east end of the expansion is being formed 8’ below grade for the ribbon mixer. In addition to the process area, we are also installing a 30'X30' slab for the microbial brewing room, which will be on the other end of the existing building. The current building is adequate for housing our bagging system and pallet-wrapper.

MightyGrow brand organic fertilizer made from crumbled pelletized poultry litter: We are ready to get the MightyGrow brand into the marketplace! Early next week, the first 22 ton load of bulk crumbled poultry litter fertilizer will be delivered from our supplier out of state. This is a 4-2-2 pasteurized fertilizer that we will bag with the MightyGrow trademark, simply labeled as Organic Fertilizer. It is considered a standard processed poultry litter fertilizer, not to be confused with MightyGrow Living Organic Fertilizer. The bags have been designed, approved, and printed and will be delivered this week.

Water for activating the microbial inoculant and mixing/digesting raw material: The digestion process requires quite a bit of non-chlorinated water. Our two options were to install a well or use surface water from the lake already on the property. We opted for the latter, since the lake is relatively close to where the water will be needed. A backhoe was rented for one month for the concrete contractor, so I’ve been putting it to good use when he doesn’t need it. I put on my backhoe operator’s hat and have spent the last few days digging a channel around the perimeter of the lake to ensure availability of water to the pumping point. This will insure an adequate water supply even if the water level drops in the lake.

So, that is where we are right now. We have tentatively agreed to accept 1500 tons of raw poultry waste from our local litter broker, Mitchell Coaker. It will be processed and placed into the EcoPods, becoming the first run of MightyGrow Living Organic Fertilizer. We plan to begin processing raw material sometime in the middle of June. We are steadily working toward our goals and all the recent activity is very encouraging! Anne and I are very excited to see this project coming together. As always, we appreciate your involvement and look forward to making MightyGrow a name recognized for GREAT results!

Michael LaBelle, President/CEO

MightyGrow, Inc.

michael@plusminerals.com