Redfield Energy, LLC

Redfield Energy, LLC (RE) is a 50-million gallon per year ethanol production facility located two miles north of Redfield, SD. RE is a South Dakota LLC comprised of approximately 850 members who represent three unit classes. Class A equity unit holders are required to deliver corn on an annual fiscal year basis. Class B and Class C equity unit holders do not have a corn requirement.

RE, a dry mill plant, became operational in April 2007 and has the capacity to process approximately 18 million bushels of corn into ethanol per year. The plant will also produce approximately 200,000 tons of modified wet and dried distillers' grain, which will be sold to the local and west coast markets.

RE takes pride in providing economic impact to the agriculture industry, community, State, and its shareholders.

• Distributions will be paid to the Unit holder of record per the RE Board of Directors discretion. The amount and date of distribution are determined by the Board.
• Each Class A member is required to sign a Uniform Marketing and Delivery Agreement (UMDA) upon subscription of Units. The UMDA is intended to protect RE interests by ensuring an adequate supply of corn for the plant. Members will be required to deliver one bushel of corn each year for each Unit held by the member.
• RE has an open delivery system for corn which runs concurrent with their fiscal year (September 1 to August 31).
• Members may opt out of delivery of corn by paying a pool fee of $0.03 per committed bushel.
• Upon confirmation of the sale of Units, the seller of Class A Units will be assessed a pool fee of $0.03 per bushel on non-delivered committed bushels for the current fiscal year before the sale is finalized. The buyer will have no corn obligation until the beginning of the next fiscal year.
• As a price incentive for members, RE has established a freight schedule for actual delivery of committed bushels as stated in the RE Offering Circular.
• For more details or to request a RE Offering Circular that details the above items and more contact the RE office at 605-302-0090.
• Private Party Transfers will be handled on an individual basis by the RE office.

• Minimum Ownership (To Retain Membership): 12,500 Units
• Incremental Sale or Purchase: 2,500 Units
• No Corn Delivery Required
• The Seller will be required to pay Variable Investment Advisors, Inc. a fee of (2%) of the gross sales price or a minimum fee per transaction being ($150.00), to be paid out of the Sellers proceeds at the time of closing.

In order to maintain membership in RE, the holder of Class B Units must hold at least 12,500 Units. A person holding Class B Units is not required to deliver corn. If a member's total membership units are below the minimum threshold they will lose voting membership in RE.

• Minimum Ownership (To Retain Three Cent Commercial Premium): 50,000 Units
• Minimum Sale or Purchase: 2,500 Units
• Corn Delivery Required with Pool System Available
• The Seller will be required to pay Variable Investment Advisors, Inc. a fee of (2%) of the gross sales price or a minimum fee per transaction being ($150.00), to be paid out of the Sellers proceeds at the time of closing.

In order to maintain a Class A Commercial Membership in RE, the holder of Class A Commercial Units must hold at least 50,000 Units. A person holding Class A Commercial Units is required to deliver annually one bushel of corn for every Class A Commercial Unit held. A Pool System is available. Commercial Members are entitled to a three cent ($0.03) per bushel premium on the bushels they deliver either personally or through the Pool System.

In order to transfer Commercial Units in a manner wherein the Units retain their character as Commercial Units, at least 50,000 Class A Commercial Units must be transferred. Commercial level investors must hold at least 50,000 Class A Commercial Units to continue to receive the three cent ($0.03) commercial premium. Members may not "buy-up" to reach the commercial level as the number of Commercial Units in existence was established at the time the initial equity drive closed.

• Minimum Ownership (To Retain Membership): 25,000 Units
• Incremental Sale or Purchase: 2,500 Units
• Corn Delivery Required with Pool System Available
• The Seller will be required to pay Variable Investment Advisors, Inc. a fee of (2%) of the gross sales price or a minimum fee per transaction being ($150.00), to be paid out of the Sellers proceeds at the time of closing.

In order to maintain membership in RE, the holder of Class A Units must hold at least 25,000 Units. A person holding Class A Units is required to deliver annually one bushel of corn for every Class A Unit held. A Pool System is available. If a member's total membership units are below the minimum threshold they will lose voting membership in RE.