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AGAN, INC.

AGAN, INC. June 2010. June 2011. July 2012. Disclaimer.

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AGAN, INC.

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  1. AGAN, INC. June 2010 June 2011 July 2012

  2. Disclaimer All statements in this presentation that are not historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by words such as “believe,” “intend,” “expect,” “may,” “could,” “would,” “will,” “should,” “plan,” “project,” “contemplate,” “anticipate,” or similar statements. Because these statements reflect the current views of Argan, Inc. (“Argan” or the “Company”) concerning future events, these forward-looking statements are subject to risks and uncertainties. Argan’s actual results could differ materially from those anticipated in these forward-looking statements as a result of many factors, which are described under the caption “Risk Factors” in Argan’s most recent Forms 10-K and 10-Q filed with the Securities and Exchange Commission. Argan undertakes no obligation to update publicly any forward-looking statements contained in this presentation.

  3. Investment Highlights • Demonstrated track record of performance • Substantial industry growth prospects • Strong backlog and bidding pipeline • Compelling financial characteristics • Experienced management team

  4. Company Overview • Year founded – 1961 • Headquarters – Rockville, MD • Ticker – NYSE AMEX:AGX • Market cap (7/12/12) – $198 million • FY 2012 Revenue – $142 million • FY 2012 EBITDA – $13 million • Q-1 (4/30/12) Revenue - $64 million • Q-1 (4/30/12) EBITDA - $7 million • Employees – 400 • Backlog at 4/30/12 - $358 million

  5. Senior Management Team • Rainer Bosselmann – Chairman and CEO • Arthur Trudel – Chief Financial Officer • Richard Deily – Corporate Controller • Management has an established track record of creating value for the shareholders of Jupiter National, Inc. (AMEX:JPI), Arguss Communications, Inc. (NYSE:ACX) and Argan, Inc. (NYSE MKT:AGX)

  6. William F. Griffin, Jr. – Co-Founder & Chief Executive Officer Daniel L. Martin – President Bill and Dan have more than 60 years combined experience in all facets of engineering, detailed design, procurement, construction management and other support services in the building of power plants and renewable energy facilities. Senior Gemma Management Team

  7. Business Overview • Gemma Power Systems, LLC (“GPS”) – provides engineering, procurement and construction (“EPC”) services to power generation and renewable energy markets • GPS accounted for 91% of total revenues during the three months ended April 30, 2012 • Southern Maryland Cable, Inc. (“SMC”) – provides telecommunications data infrastructure services FY 2013 Q-1 Revenue by Subsidiary 9% 91%

  8. Industry Growth Drivers • Substantial capacity additions will be required to meet rising electricity demand • The retirement of older and inefficient plants and coal-fired generation facilities will further drive investment in new gas fired generation capacity • Federal and state legislation, subsequent to the Fall 2012 elections, is needed to support energy produced by renewable sources. Unless tax credits are renewed or new credits are passed, the number of renewable energy projects will be substantially diminished in the short run.

  9. Overview of GPS • Acquired by Argan – December 2006 • Purchase price – $33.1 million • $12.9 million in cash • $20.2 million from issuance of 3.7 million shares • Funded in part by $8.0 million secured four year amortizing term loan, which has been paid-in-full. • Services – engineering, procurement and construction of natural gas fired and alternative power energy facilities • Customers – utilities and independent power producers • FY 2012 revenue: $133 million • FY 2012 EBITDA: $16 million • Q-1 FY 2013 Revenue - $58 million • Q-1 FY 2013 EBITDA - $7 million • Backlog at 4/30/12: $358 million

  10. Revenue and EBITDA Growth • GPS’s revenue and EBITDA have remained strong since the acquisition by Argan in December 2006 Revenue for Years Ended January 31 * Represents 1st QTR FY2013 only EBITDA for Years Ended January 31 * Represents 1st QTR FY2013 only

  11. GPS Track Record • More than 12,000 megawatts of installed power plant capacity • More than 850 megawatts of power facility development • More than 350 million gallons per year of installed renewable fuels capacity • 40 projects completed on an EPC basis • 51 major turnkey construction projects • Power experience includes combined cycle, combustion turbines, coal/wood fueled projects, wind plants, solar facilities and waste recovery facilities • Renewable fuels experience includes bio-diesel and ethanol facilities

  12. National Footprint • GPS has the ability to provide EPC services to customers throughout the United States Historical Project Locations States in which GPS has completed projects.

  13. Extensive Project Portfolio • Power facilities – simple cycle solution • CPV Sentinel Energy Project • A.L. Pierce Re-powering Project • Vandolah Power Project • DeSoto County Power Project • Indigo Energy Facility • Larkspur Energy Facility • Richmond County Phase I Power • Monroe Power Project • Richland Peaking Project • Rocky Road Unit 4 Project • Broad River Energy Center • Middletown, CT Project • Pollution solution • Brayton Point Power Station • La Rosita SCR Project • Biomass Power Facility - Woodville, Texas • Solar Facility - Canton, MA • Power facilities – combined cycle solution • Colusa Generating Station • Roseville Energy Park • Hines PB-2 Power Project • Rowan County Power Project • Effingham County Power Project • Richmond County Phase II Power Project • Process facilities – biodiesel • Renewable BioFuels Port Neches • Galena Park • Green Earth Fuels Houston LLC • Process facilities – ethanol • Carleton Ethanol Facility • Wind Facilities - LaSalle County, Illinois - Vantage, Washington - Henry County, Illinois - Ebensburg, Pennsylvania

  14. Current Projects • CPV Sentinel Peaking Facility – Southern California Edison - design and construction of a natural gas fired power plant near Palm Springs, California • 800 megawatt single cycle facility • Contract value: $269 million • Commenced project: Spring 2011 • Expected completion: Summer 2013

  15. East Texas Electric Cooperative, Inc. (ETEC) – Woodville, Texas – engineer-procure-construct (EPC) contract to design and build a 49.9 MW biomass-fired power plant. Contract Value: $167 million Commenced Project: May 2012 Estimated Completion: December 2014 Current Projects

  16. U.S. Natural Gas Development • Argan is participating in Marcellus Shale Region development activities with the object of developing large-scale power plants. The approach is to take principal positions in the initial stages of development, secure the rights for an EPC contract for the large scale power plant to be built on the development site. • Argan then sells its equity interest in the site to the ultimate developer of the power plant.

  17. Wind Power Focus • June 2008 - Formed business partnership with Invenergy Wind Management, LLC • Leveraged GPS’ historical expertise in wind power • Argan was the primary contractor for Invenergy sponsored construction of wind farms in the United States and Canada • During 3Q09 GPS substantially completed the expansion of a wind farm in LaSalle County, IL • December 2009 – Gemma acquired remaining ownership of the wind power venture • Vantage Wind Energy awarded Gemma $33 million wind project in Washington State. • November 2010 – Gemma awarded $59 million construction contract for a 200 MW project in Henry County, Illinois • January 2012 – Gemma awarded $18 million construction contract for a 30 MW project near Ebensburg, Pennsylvania

  18. Current Wind Projects • Henry County Illinois – design and build a wind farm - Contract value: $62 million - Commenced project: November 2010 - Completion: Summer 2012 • Ebensburg, Pennsylvania – design and build a wind farm - Contract value: $18 million - Commenced Project: January 2012 - Completion: December 2012

  19. Recent Wind Projects • LaSalle County, Illinois – design and build the expansion of existing wind farm • Contract value: $46 million • Commenced project: August 2008 • Completion: October 2009 • Vantage, Washington - Contract value: $32 million - Commenced project: December 2009 - Completion: September 2010

  20. Canton, Massachusetts – design and build a 6 Mega Watt solar energy facility - Contract value: $16 million - Commenced project: November 2011 - Completion: Summer 2012 Solar Power Focus

  21. Competitive Landscape Larger Projects / Traditional Fuels Smaller Projects / Alternative Fuels

  22. Growth Strategy • Establish additional strategic alliances in the EPC space • Make additional strategic acquisitions that complement our unique market position • Partner with well capitalized investment entities to create larger service opportunities in renewable energy projects • Exploit long-term relationships throughout the industry to aggressively build backlog of traditional and renewable energy projects • Make strategic investments in power plant development projects as a means to create greater opportunities to build backlog of large scale EPC contracts.

  23. Backlog • Argan has significant contract backlog Historical Contract Backlog as of January 31 * * * April 30, 2012 2007 2008 2009 2010 2011 2012 2013

  24. Investment Summary • Demonstrated track record of performance • Substantial industry growth prospects • Strong backlog and bidding pipeline • Compelling financial characteristics • Experienced management team

  25. FinancialsConsolidated Statements of Operations

  26. FinancialsConsolidated Statements of Operations, continued

  27. FinancialsReconciliation to EBITDA, Continuing Operations

  28. FinancialsReconciliation to EBITDA – Power Industry Services

  29. FinancialsConsolidated Balance Sheets – April 30, 2012 & January 31, 2012

  30. FinancialsConsolidated Balance Sheets, continued – April , 2012 & January 31, 2012

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