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Greetings, and welcome to REX American Resources Corporation Second Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Doug Bruggeman. Thank you. You may begin. Good morning, and thank you for joining REX American Resources Quarter 2 2025 Conference Call.

With me on our call today are Stuart Rose, REX Executive Chairman, and

Good morning, and thank you to everyone for joining us today. During the second quarter, REX extended our success in our core ethanol production business, moved our One Earth energy expansion project forward, and saw supportive near-term tailwinds develop for our business as we head to the second half of the year. Overall, REX exited the second quarter in a great position to continue delivering value to our shareholders. Passage of the One Big Beautiful Bill Act during the quarter was very supportive of our carbon capture and sequestration project. The continuation of the 45Q tax credit and extension of the 45

During the quarter, we maintained our strong balance sheet and continue to have ample cash to complete our several growth initiatives as well as other opportunities which could arise. These include any potential acquisition opportunities that meet our strict operational and financial criteria or additional future organic growth. This morning, we announced that our board of directors has authorized a two-for-one stock split that would be effected by a 100% stock dividend. We saw this as an opportunity as our stock recently traded at all-time highs, to reward our loyal shareholders and increase liquidity in our shares. This will affect shareholders of record as of 09/08/2025. Overall, the REX team executed at a high level once again, delivering value to our shareholders and moving our business forward efficiently. We are very proud of the work the team does every day to ensure our company's success and drive value for shareholders. I will now turn the call over to CEO,

Thank you, Stuart. The One ARC facility expansion is progressing steadily. The previously mentioned energy efficiency initiative has been completed, with a focus on optimizing the reduction of the expanded plant's carbon intensity. Most of the previous expansion work is already complete. The initial capacity expansion, which will increase annual ethanol production capacity to 175 million gallons, is expected to be fully operational in February 2026. Turning to carbon capture, the recently enacted Big Beautiful Bill Act has further strengthened the economics of REX's proposed carbon capture and sequestration project by preserving both the 45Q and 45

Thanks,

Thanks, Doug. Our strategy continues to be guided by the three P's: Profit, Position, and Policy. Profit: Our dedicated team has delivered 20 consecutive quarters of profitability, reflecting strength, discipline, and commitment. Our third quarter for 2025 is on pace to outperform the second quarter but will not be as strong as our last year's third quarter, which was our second-best quarter on record. I am particularly pleased with the increased yield of corn oil production, which reflects the consistent and efficient operation of the overall plants. This improvement demonstrates not only the effectiveness of our process but also the dedication of the team in maintaining high standards of performance. Position: Ethanol expansion and carbon capture initiatives remain moving forward and within budget, positioning REX for sustainable long-term organic growth. The 45Q tax credit and extension of the 45

Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Our first question comes from Peter Dastreich with Water Tower Research. Please proceed with your question.

Good morning, and thanks for taking my question. For starters, congratulations on the results and another consecutive quarter of profitability. I have said it before, but that is something that has eluded pretty much all of your peers. So congratulations on that. It is also great to see the regulatory tailwinds that are coming through in your favor. Just a few questions for me. The first one is just regarding an event that you held this summer at your One Earth Energy facility. It looks like it was very well attended with a couple of hundred people. Could you talk about who turned up for that event and any implications for your state and local support for your growth projects, particularly for CCS?

I was at the event, so I guess I will answer that. This is Stuart. People that turned up were mostly local people, and it was the first time we did it at the One Earth facility. And it was, again, we are doing our best to be a good citizen in the community, and almost all the local or many local officials turned up, many shareholders. We only own 75% of One Earth, so many shareholders turned up. A few government officials, state representatives, and people like that showed up. Overall, it was a big success. I think we accomplished what we were trying to do, which is to get some gratitude and have more favor in the local community. I think we are already a major citizen of Gibson City, but this just made us a little bit better.

Okay. Thank you. Just in relation to the CDTS component of the Earth Energy project, something that came up toward the end of last year was an issue with interconnection from the local utility. I may have missed the update, but can you just confirm whether that was resolved?

Yes. That is resolved, and now we are able to get the utility directly from Ameren, and it is no problem anymore.

Okay. That is great. Thank you. So, you know, thanks for the update in terms of the ethanol margins. It looks like we are in a better place today versus earlier this year. But, you know, going into the second half, it would be great to hear your thoughts on the outlook for your co-products, as well. Thank you.

As you know, I already mentioned that we believe that our third quarter will be better than the second quarter. But it will not be as good as last year because last year was our second-best quarter. But as we also see the bumper crops, not only in South Dakota but also pretty good crops in Illinois, particularly in McLean County, is the record corn this year in Illinois, and we see that will be very beneficial to both of our locations. And we also see a bumper crop in Iowa, where we have a minority shareholder company, Big River, which we own approximately 10%. So they have also the record crops this year. So we certainly see that there are going to be plenty of feedstock available. And, also, as you know, the export is increasing of ethanol, and we are very pleased with that. Not only Britain is planning to buy ethanol from the US, but also Japan plans to buy this year. Also, due to the tariff negotiation, we certainly see that if this continues, we will be in pretty good shape in our core business.

In terms of the byproducts, corn oil continues to be very strong. DDG is a little weak relative to corn prices. And with the bumper crop, I do not know if that is going to continue or not, but DDG has not been as strong relative to corn prices as it has in the past. Hopefully, that will turn around.

Yeah. I think that is correct, Stuart, because I think the export of DDG has dropped compared to last year. So that is one of the things we can see. Even Mexico is buying less than last year in the first six months. So that is certainly some concern.

Okay. That is great. Thank you very much. Congratulations again, and I will get back in the queue. Our next question comes from Jared Edeling with South Dakota Investment Office. Please proceed with your question.

Hey, guys. Thanks very much for the opportunity to ask a question and great quarter. Just wanted to see if you could comment on the overall CI score of your two main plants given the change in the recent legislation relating to 45

So what do you want me to take that?

Yeah. Why do not you take it,

Yeah. I think we have not really compared to other few companies that have declared their CI score. As you know, there is no clear guideline at this time. So that is one of the reasons we have not really discussed publicly what exactly is our CI score at this time until we have clear guidelines on what will be our CI score. But we are certainly very happy to see that Smart Farming is no longer part of the calculation, and that will give us four to six points, and that could help us to really be able to go below 50 or close to that number where we could be able to get some CI score reduction without CI score and will be beneficial to us.

Oh, so as part of the One Earth project, we also are doing things to make our plant more energy efficient, which should help our CI score. And there is a chance even without carbon capture, but like

Excellent. Thank you. And given the Illinois moratorium on carbon pipelines, which appears to expire in July, if your Class VI well is approved, would you believe that you would be able to build that soon after that expiration?

That is what our goal is. But as you know, we still have after that is approved, we plan to get from the local county special use permit, and then we also have to have an IEPA permit. And we have discussions with the Illinois EPA, and we also have discussions with the ICC, Illinois Commerce Commission. They are also working on legislation or the guidelines, whichever they wanted to have us follow. We certainly, if those guidelines are issued and all those approvals are received, then we certainly will be able to operate in February 2026, but, naturally, this depends on all of those permits once we receive those.

Excellent. And my final question is related to the short distance that the pipeline is. What is the build time once approvals come to first carbon injection?

I think once we receive, we have to apply. It is less than six and a half miles of pipeline. The owner's answer is we build that pipeline. The reason is because from the very beginning, we wanted to make sure that we are away from the aquifer. Otherwise, we could have built that well right next to our ethanol facility, but we decided we want to be away from the aquifer so that way in the future, there is no concern about the drinking water. And that is what exactly happened later on. The legislation was issued that there should not be any over or under that carbon sequestration where the aquifer is. So we are six and a half miles away from the aquifer, and that is what the that. So it depends on how quickly we can get permission from ICC. Once we receive the permission from ICC, that takes about a couple of months to build the pipeline.

Great. Thanks so much, guys. Thank you.

We have reached the end of the question and answer session. I would now like to turn the call back over to Stuart Rose for closing comments.

I would like to thank everyone for listening. Again, we outperformed most in the industry this quarter, and we currently expect an even better quarter next quarter. It is all due to having great locations for our plants, great plants, and most importantly, the top people in the industry. And that goes from our CEO all the way to all the teams in our plants. That is really what makes us special and what makes us outperform the industry quarter after quarter. We look forward to talking to everyone after the end of our next quarter, and thank you again for listening.