CNH3 TECHNOLOGIES INCORPORATED PRESENTATION

A CHEMICAL AND BIOLOGICAL PROCESS FOR THETREATMENT OF PETROLEUM HYDROCARBON BASED

CHEMICAL WASTES

INTRODUCTION• CNH3 TECHNOLOGIES INC. HAS DEVELOPED A PROPRIETARY BIO OXIDATION PROCESS FOR THE TREATMENT OF OIL BASED DRILLING WASTE PRODUCTS THAT CONTAIN HIGH LEVELS OF PETROLEUM HYDROCARBONS.• WE CAN ALSO PROCESS SOME OF THE LOWER “C” RANGE SOLVENTS INCLUDING ACETONE, MEK ( METHYL ETHYL KETONE) AND 2-BUTOXY ETHANOL PROPANE, AROMATIC SOLVENTS INCLUDING BENZENES, XYLENE’S AND TOLUENE’S

• IT REDUCES THE AMOUNT OF CO2 & METHANE PRODUCED WHEN COMPARED TO OTHER ANAEROBIC BIOLOGICAL PROCESSES SUCH AS LANDFILLS, LAND FARMING AND INCINERATION.

• IT PRODUCES A USEABLE END PRODUCT OF CLAYS AND OTHER MINERALS THAT PROVIDE NITROGEN AND OTHER NUTRIENTS MAKING IT AN EXCELLENT SOIL AMENDMENT THAT SUPPORTS PLANT GROWTH.

• PROVEN PILOT STAGE, BIOLOGICAL OXIDATION OF OIL BASED OBM INVERT DRILLING WASTES. RECENT ADDITIONAL EXPERIMENTS WITH ‘OXIDATION / DESTRUCTION’ OF VARIOUS SOLVENTS AND INDUSTRIAL WASTE CHEMICALS.

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From this To this!

CNH3’s waste treatment process can turn oil based drill mud cuttings:

TECHNICAL DESCRIPTION•

• WE OFFER TOTAL PETROLEUM HYDROCARBON DESTRUCTION, TREATED CLAYS AND MUDS PASS TOXICITY CHARACTERISTIC LEACHATE PROCEDURE AND OTHER SOIL CONTAMINANT TESTS. CHLORIDE LEVELS ARE WELL BELOW REGULATORY LEVELS.

• THE CNH3 PROCESS IS TARGETING THE ‘COMPLETE’ AND ‘TOTAL’ ELIMINATION OF THESE PETROLEUM BASED CHEMICALS. BIOLOGICAL OXIDATION IS KNOWN TO BE THE CLEANEST AND THE MOST COMPLETE FORM OF SAFE CHEMICAL DESTRUCTION.

• CNH3 COMMERCIAL PROCESS IS FULLY SCALABLE TO ANY SIZE THROUGH THE USE OF MODULAR UNITS. DESIGNS HAVE BEEN COMPLETED FOR FACILITIES THAT CAN PROCESS 150 TO 1000 TONNE’S PER DAY.

• WE HAVE ONLY JUST BEGUN TO UTILIZE THE FIRST APPLICATIONS FOR OUR BREAKTHROUGH, THE GREATEST POTENTIAL LIES IN OUR FUTURE RESEARCH AND DEVELOPMENT.

• THIS TECHNOLOGY IS A FINAL SOLUTION AND AN END TO THE LIABILITY FOR THE HAZARDOUS WASTES THAT WE PROCESS.

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GHG EMISSIONS COMPARISON• CONVENTIONAL DRILLING WASTE – CUTTINGS & INVERT DRILLING FLUID, STABILIZED WITH SAWDUST/WOOD

CHIPS AT 1:3 MIXING RATIO (DRILLING WASTE TO AMENDMENT)• CALCULATIONS FOR GHG POTENTIAL ARE EXPRESSED AS CO2 EQUIVALENTS AND BASED ON MIXING

SAWDUST/CUTTING AT A 1:1 RATIO IN CANADA

Landfill Disposal

CNH3 Bio-slurry

Total volume (M3) oil contaminated waste 2,000 2,000

Calculated Carbon Equiv (tonnes) base on 25% by weight oil 382.5 382.5End Product Potential - CO2/Biomass/Methane (tonnes) 96/38/249 134/134/0GHG Potential (CO2 Equivalent Tonnes) 5718 134Sawdust amendment required 2000 N/ACarbon Equivalent of the sawdust (tonnes) 1200 N/ASawdust End Product Potential – CO2/Biomass/Methane (tonnes) 300/0/780 N/A

Total GHG End Product Potential – CO2 Equivalent Tonnes 11894 134

* As a GHG, one molecule of Methane is 23 times more efficient at absorbing heat than CO2, therefore Methane is expressed as `CO2 Equivalents` after multiplying Tonnes x 23.

WHY THE PROBLEM IS WORTH ADDRESSING

• OIL AND GAS PRODUCERS ARE FACING MORE PRESSURE THAN EVER TO COME UP WITH NEW AND ALTERNATIVE METHODS TO DISPOSE OF THEIR DRILLING WASTE IN AN ENVIRONMENTALLY FRIENDLY MANNER.

• GOVERNMENTS, FIRST NATIONS AND INDIGENOUS PEOPLE AROUND THE WORLD ARE DEMANDING BETTER ENVIRONMENTAL STEWARDSHIP AND AN END TO TOXIC WASTE STOCKPILING AND RE-INJECTION

• THE NEXT DECADE WILL SEE MORE STRINGENT GOVERNMENT LEGISLATION, FINES AND RESTRICTIONS UPON INDUSTRY BOTH LOCALLY AND GLOBALLY.

• COMPANIES , IF NOT ALREADY DOING SO, WILL BE FORCED TO TAKE RESPONSIBILITY FOR THEIR PRODUCTS, BY-PRODUCTS, EMISSIONS , AND RESIDUES FROM GENERATION, THROUGH TO USE, EVEN TO ULTIMATE DISPOSAL

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WHAT’S BEING DONE TO ADDRESS THE PROBLEM

• MOST WORK AT THIS TIME SEEMS TO BE FOCUSED ON INCINERATION TECHNIQUES BUT MASSIVE FAILURES TO TRAP FUGITIVE EMISSIONS AND THE ACCOMPANYING GHG IS LESS THAN IDEAL.

• MIXING OR BLENDING THE DRILLING WASTES WITH ABSORBENTS SUCH AS SAWDUST OR WOOD WASTE ADDS TO AND INCREASES THE GHG FOOTPRINT BY A FACTOR OF NEARLY 10X.

• ESTIMATES IN WESTERN CANADA IS THAT A MIXTURE OF BETWEEN 1 PART OF WOOD WASTE AND UP TO 3 PARTS OF WOOD WASTE PER 1 PART OF DRILLING WASTES OVER THE PAST 30 YEARS HAS CREATED OVER 150 MILLION TONNES OF TOXIC LANDFILLED DRILLING WASTES.

• DEEP WELL INJECTION OF CUTTINGS IS EXPENSIVE AND NOT COMPLETELY SAFE OR PREDICTABLE DUE TO CHANGES IN GEOLOGIC FORMATIONS AND RISKS TO THE AQUIFER.

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KEY BENEFITS OF THE CNH3 PROCESS:•OUR CHEMICAL TECHNOLOGY ELIMINATES THE USE OF ABSORBENT MATERIALS SUCH AS SAWDUST & WOOD CHIPS WHICH:

•REDUCES THE VOLUME OF DRILLING WASTE, REDUCES THE COST OF DISPOSAL, AND REDUCES TRANSPORTATION COSTS.

•ELIMINATES THE NEED FOR LANDFILL DUMP SITES, RE-INJECTION AND SALT CAVERN STORAGE FACILITIES FOR OIL WASTE/DRILL CUTTINGS DISPOSAL.

•CLEANED BY-PRODUCT IS SAFE FOR USE AS A POTENTIAL LAND RECLAMATION MATERIAL.

•IS THE BEST AVAILABLE TECHNOLOGY (BAT) FOR OIL CONTAMINATED WASTE TREATMENT, AND MEETS OR EXCEEDS EVERY CRITERION FOR THE SAFE & COMPLETE OXIDATION OF YOUR DRILLING WASTE.•OUR PROCESS PRODUCES A SMALL FRACTION OF THE GREEN HOUSE GAS EMISSIONS COMPARED TO LANDFILLS THAT CONTAIN WOOD WASTE AS AN AMENDMENT. THIS IN TURN WOULD MEAN OUR PROCESS COULD ALSO OFFERS GHG CARBON TAX REDUCTIONS.

WHERE WE ARE TODAY• THE CNH3 CONCEPT IS TO DEVELOP A CENTER OF ENVIRONMENTAL EXCELLENCE

SOUTH OF CALGARY IN ORDER TO DEVELOP A FULLY SCALABLE TRAINING BIO OXIDATION UNIT TO TEST AND IMPROVE THE PROCESS WITH IDENTIFIED PROCESS ENHANCEMENTS FROM OUR ‘YEARS’ OF DEVELOPMENTAL WORK. IT WILL INCLUDE A COMPLETE OPERATIONAL AND FUNCTIONAL TRAINING UNIT FOR DEMONSTRATION AND PERSONNEL TRAINING FOR OPERATIONS COMPANIES.

• CNH3 IS MANAGING THE RESEARCH, PROGRAM DEVELOPMENT AND ENGINEERING OF PLANT ADAPTATION. WE ARE ACTIVELY SEEKING A COLLABORATIVE ARRANGEMENT WITH CAPABLE OPERATIONS COMPANIES.

• OUR TEAM IS COMPOSED OF SENIOR BIOCHEMISTS , CHEMICAL ENGINEERS AND MECHANICAL SPECIALISTS FOR EQUIPMENT SCALE UP PROFESSIONALS. ANALYTICAL RESEARCH AND SENIOR SCIENCE PHD’S ALONG WITH15 YEARS OF RESEARCH AND DEVELOPMENT ARE BEHIND OUR DISCOVERIES.

• AT THIS TIME WE ARE FOCUSED ON ‘ECONOMIC PERFORMANCE’ AND FUTURE APPLICATIONS.

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CNH3 CONCLUSION:

•THANK YOU FOR YOUR TIME AND FOR THE OPPORTUNITY TO PRESENT THIS NEW PROVEN TECHNOLOGY TO YOU. WE LOOK FORWARD TO ANY DISCUSSIONS AND WELCOME ANY QUESTIONS OR COMMENTS ON OUR ADVANCED CAPABILITIES.

DANNY BRICKBUSINESS DEVELOPMENT(780) 897-7327DANNYBRICK@TELUS.NET

BRIAN KROPP MANAGING DIRECTOR BKROPP@SHAW.CA