BION ENVIRONMENTAL TECHNOLOGIES INC

The Company is not currently involved (and has not been involved in recent periods) in any litigation matters. However, the Company is currently in discussions/negotiations with its creditors, as described in Management’s Discussion and Analysis, Note C. These negotiations could escalate to litigation if a mutually satisfactory resolution is not achieved.

As is described in the Company’s Financial Statements included herein and discussed above in Management’s Discussion and Analysis, Note C, the Company’s on-going difficulties raising needed funds for its operations/activities over the past 2 years has rendered the Company unable to meet its current creditor obligations on a timely basis. The Company has engaged in discussion/negotiation with its larger creditors (including its largest creditor--- the primary contractor on the Initial Project) but has been unable to reach agreements regarding payments due to the uncertainty as to if, when and how much funding the Company will be able to raise in future periods. As a result, the primary contractor has filed a mechanics lien in Indiana (and its largest sub-contractor has sent notices related to its intention to file a mechanics lien) and other creditors are threatening to commence litigation and/or repossess/remove leased equipment. However, to date they have not escalated to litigation. On September 5, 2024, three members of BION BLG, LLC, met with representatives of two of the largest creditors: the primary contractor and the property lessor. Bion has not reached an agreement with the primary contractor, but is still in discussions with them, and has resumed payments to certain creditors, whose services the Company requires to continue operations at Fair Oaks, including lease payments to the property lessor (and ongoing supplier of digestate used in testing the ARS).

The Company currently is not involved in any other material litigation or similar events.