LETTER TO SHAREHOLDERS Signing of agreements with distributors in Europe and Australia GLYPH<127> Subsequent to year end, Ceapro’s expertise recognized by German-based multinational Symrise through the signing of a licensing and distribution agreement including a major credit line for the next three years. GLYPH<127> From a financial perspective, year 2012 was more challenging and our year-end results were affected by two non-recurring events beyond our control. This resulted in the following: Sales of $5,165,000 compared to $5,786,000 in 2011, a decrease of 11% GLYPH<127> Loss from operations of $515,000 compared to income of $585,000 in 2011 GLYPH<127> Net loss of $538,000 compared to a net income of $578,000 for 2011 GLYPH<127> Based on our upcoming initiatives, we are very positive for the year 2013 which should be a benchmark year. In addition to providing new generation products for our current market, we are attracting serious interest in our innovative technology platforms and products from major players in new market sectors such as nutraceuticals and pharmaceuticals. In order to maintain this momentum, the successful implementation of our upcoming state-of-the-art facility remains our top priority for 2013. We are on track to complete this monumental milestone in the fourth quarter of 2013. We wish to thank our private and public partners like the Government of Alberta who is helping us to make it happen through a significant grant from Alberta Innovates Bio Solutions and Agriculture Financial Services Corporation who has been a long-term supporter and financial partner of Ceapro. Our vision is to be recognized as the Canadian leader in botanical actives and a centre of excellence in bioprocessing by 2015. Looking forward, we expect Ceapro to increase its sales in 2013. While securing a smooth transition to our new facility, we will pursue the development of key prioritized projects with our value drivers, avenanthramides and beta glucan. Our small group of employees has bought into these challenges and we wish to thank everyone for their efforts in striving to make Ceapro one of the best biotech companies in Canada. Finally, we would like to thank our customers and our shareholders for their support and confidence. GILLES R. GAGNON, M.SC., MBA PRESIDENT AND CEO ED TAYLOR, CGA CHAIRMAN OF THE BOARD May 10, 2013 CEAPRO Annual Report 2012 3