Clean Air Power Ltd

John Pettitt, Chief Executive

Peter Rowse, Finance Director

April 2013

1

Dual-Fuel™ Engine Management Software enables heavy duty trucks to operate on a combination of diesel and natural gas, with no change to the base engine.

2

Leyland UK:

Headquarters and

operations

Poway USA:

Engineering R&D, component &

emissions production

Clean Air Power: Overview

Tier 1 supplier of Dual-Fuel™ system to major

European truck manufacturer

Tier 1 supplier of components to Global Truck OEM, Mercedes-

Benz, L3

Natural gas injectors, filter systems, high speed hydraulic valves

Original patent holder remains with the company

Approximately 200 man-years of Dual-Fuel™ know-how

3

In the production phase

2005 2010 2012 2014 2015 2016

European OEM Production

Adm

issio

n to

AIM

Development

Genesis EDGE Euro 5 Sales New

Executiv

e M

anagem

ent

OEM

Demo

Navistar

Phase 1

European OEM Devm’t

US Genesis EDGE

US EPA2010 Genesis EDGE

Production

4

Validation

Agenda

2012 Results

Clean Air Power operators

LNG Infrastructure

Natural Gas truck market

US Genesis EDGE

Summary

5

6

2012 Financial Information

Group Income Statement

7

Summary Income Statement (£’000)

£’000 2011

2012 Prelim

Total Revenue 4,585 7,942

Gross Margin 2,563 3,518

% 56% 44%

Administration Expenses (4,238) (4,580)

Amortisation & Depreciation (430) (1,130)

Other Costs (140) (29)

Operating loss before exceptional costs

(2,245) (2,221)

Financing 5 1

Net Loss (2,240) (2,220)

8

Balance Sheet

Summary Balance Sheet (£’000)

2011

2012 Prelim

Non-Current Assets 4,029 3,893

Inventories 670 1,208

Trade and other receivables 816 1,102

Cash 2,422 3,204

Total Assets 7,937 9,407

Total Equity 6,223 7,131

Total Liabilities 1,714 2,276

Total Equity and Liabilities 7,937 9,407

9

Cashflow Statement

Cashflow Statement (£’000)

2011 2012 Prelim

Cashflow from operating activities

Loss on ordinary activities before tax

(2,240) (2,220)

Amortisation and Depreciation 430 1,130

Working Capital movements 590 (159)

Other non-cash movements 209 (95)

Net Cash outflow from operating activities (1,011) (1,344)

Less: Capital Expenditure (1,955) (1,099)

Add: Net Cash inflow from financing activities and forex

2,978 3,225

Cash and cash equivalents at 1 January 2,410 2,422

Cash and cash equivalents at 31 December 2,422 3,204

Who’s using CAP systems?

10

Sainsburys started with a single Genesis in 2008 and a further 5 in 2009

They were a trial customer for the Volvo MethaneDiesel in 2010

In 2012 they converted 49 Volvo FM13s using the Genesis EDGE Dual-Fuel system

Wiseman Dairies initially ordered 2 Genesis systems in 2007 and a further 20 in 2008

Following a grant from TSB, Robert Wiseman Dairies, collaborating with Chive Fuels, Cenex and MIRA, will, in 2013, trial the use of 40 new warranted dual-fuel 40 tonne articulated trucks substituting diesel with natural gas from two upgraded public access liquefied natural gas stations, one in the West Midlands and one in Scotland.

11

B&Q is committed to reducing its CO2 emissions from business travel and haulage to 50 percent by 2023 “As a national retailer with a global supply chain we have a very big impact when it comes to transportation, which has implications for carbon emissions too. 21% of total UK emissions result directly from transport”

B&Q operating 25 Dual Fuel trucks incorporating Clean Air Power technology at their facility in Swindon

B&Q’s retail logistics service manager Michelle Thomas said: “We’re pleased to announce the introduction of 50 dual fuel lorries which is helping us meet our 2023 deadline to cut transport carbon emissions ahead of time”

12

Stobart Group

Trial customer for European OEM product

Ordered 20 OEM Dual Fuel vehicles in 2012

Phil Spittle, Eddie Stobart General Manager Fleet, said: “The award is recognition from the grocery industry that we are helping to make a real difference with regards to sustainable distribution. The environment is an important issue for both Nestlé and Eddie Stobart so this partnership has been significant and extremely positive. The gas-powered trucks have helped cut carbon emissions and reduce both companies’ impact on the environment"

13

Spain’s HAM Criogénica Group purchased their first Mercedes Axor Genesis Dual-Fuel in 2007 followed by 10 more Genesis EDGE systems in 2010

In 2012, CAP developed the Renault Magnum variant together with HAM and delivered 62 systems in 2012

In 2013, 20 more systems have been delivered

In 2012, a major global logistics company installed 27 Genesis EDGE systems for their UK contract with NISA.

14

LNG Infrastructure:- Europe

15

16

17

LNG Infrastructure:- Europe

Development accelerating

Major players: Shell, Linde, Gazprom & Gas Natural Fenosa

GNF opening 5 new LNG stations in Spain during 2013

Gasrec opening first major UK LNG station in April 2013

6 more planned through 2014

EU Commission “Clean Power for Transport” proposes max. distances between NG filling stations EU-wide: 400 km for LNG by 2020

18

Gasrec, DIRFT, Daventry

Opening April 2013

Eventual capacity to fuel 700 trucks per day

6 more planned in UK 19

LNG Infrastructure:- USA

20

LNG Infrastructure:- USA

Clean Energy Fuels installed 70 LNG stations in 2012

Similar number planned in 2013

Many located at Pilot-Flying J truck stops

Total station capacity by end of 2013 approximately 75,000 trucks per day

Oil giant Royal Dutch Shell is set to invest more than $300m

James Burns, Shell’s manager of LNG transportation fuels, will pay the costs of setting up 200 LNG pumps at 100 locations in the Travel Centers of America chain

Burns says Shell will entice truck fleets to buy LNG-powered trucks and to pump their LNG by selling long-term contracts that guarantee the price they pay for the natural gas derived fuel will be at least 30% cheaper than diesel (on an energy-equivalent basis) for the lifetime of their trucks. “They can lock in their fuel savings for however long they keep that truck,” which is often as long as five years.

21

USA - LNG Distribution map

* Clean Energy Fuels website 22

Clean Energy Fuels

23

Infrastructure driving Natural gas vehicle market

24

25 25 25

Exponential NGV Growth in Progress

CO2 Emissions by Sector

» Within industry transport is the second largest CO2

contributor

26

Within transport long haul duty cycle is the largest CO2 contributor

Source: AEA

North American Class 8 NG Trucks - % of total

27

Source: Westport

Global truck market >16 tons

28

Global truck Volumes

‘000 units

Product / Emissions Standard

Western Europe 242 E5 to 2014 thereafter E6

Other EU 38 As above

N America 216 US2010/US2013

Brazil 112 E3/E5

Russia (est) 100 E5

China 900 E3/E5

India 237 E3

Australia 9 E5

CAP Market strategy

29

Market strategy

30

2013 / early 2014 Euro 5

Genesis EDGE & OEM

Late 2013 / 2014 Euro 5

Genesis EDGE & possibly

OEM product

2014 Euro 5 Genesis EDGE &

possibly OEM product US Genesis EDGE

US Genesis EDGE program

31

US Genesis EDGE - Timeline

32

Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14

Feasibility study

completed

1st engine

sourced

Engine in test cell

Development

truck leased

2nd engine

sourced

2nd engine in test

cell in UK

Truck running in

Dual-Fuel mode

ACT Expo

Washington DC

3rd engine in test

cell in UK

First 10 trial

vehicles

Second 10 trial

vehicles

Certification

testing

Initial production

Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14

US Genesis EDGE

33

Demonstration Unit Installed engine system

US Genesis EDGE – Test cell 1

34

Exhaust side Inlet side

Washington DC 24 – 27th June 2013

35

US Genesis EDGE

Operator interest remains very high

Trial customer agreed, subject to sourcing trucks

Some emission challenges

Three after-treatment companies quoting solutions

Plan to drive demonstrator from San Diego – Washington DC

LNG not available throughout route; some running on diesel required!

Route back will encompass altitude & high ambient operation

36

R&D Activity

2013 product focus is on Euro 5 sales and US2010 development

In addition:

2 year funded research project in partnership with Brunel University to develop the next generation of advanced Dual-Fuel combustion systems using natural gas and diesel

The project will be carried out at Brunel University’s Centre for Advanced Powertrains and Fuels

Euro 6 prototype R&D funding awarded by Niche Vehicle Network for after-treatment packaging development in partnership with Eminox Ltd

37

Summary

Natural gas infrastructure is growing rapidly

Demand for heavy duty products expected to grow exponentially

Targeting US, Eastern Europe & Brazil for sales growth in 2014

Progressing product development partnership opportunities

38