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TITAN OIL RECOVERY, INC. JOINT VENTURE OPPORTUNITY

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TITANOILRECOVERY,INC.

JOINTVENTUREOPPORTUNITY

FORWARDLOOKINGSTATEMENTS

Thispresentationcontainsforward‐lookingstatementswithinthemeaningofthePrivateSecuritiesLitigationReformActof1995.Allstatementsincludedhereinthataddressactivities,eventsordevelopmentsthattheCompanyexpects,believes,intends,oranticipateswillormayoccurinthefuture,areforward‐lookingstatementsaswellaswordslike“could”,“should”,“will”,“can”,andwordsofasimilarnature.Actualeventsmaydiffermateriallyfromthoseanticipatedintheforward‐lookingstatements.AlthoughtheCompanybelievesthattheassumptionsunderlyingtheforward‐lookingstatementscontainedhereinarereasonable,anyoftheassumptionscouldbeinaccurate.Therecanbenoassurancethattheforward‐lookingstatementsincludedinthispresentationwillprovetobeaccurate.Inlightofthesignificantuncertaintiesinherentintheforward‐lookingstatementsincludedherein,theinclusionofsuchinformationshouldnotberegardedasarepresentationbytheCompanythattheobjectivesandexpectationsofthecompanywillbeachieved.

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ANEWMODELFORREALESTATELENDERS

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$300MillionBondInterestRate6%ReturnOver4‐6YearsEquityBehindDebtRisk:EconomicSlowdown

OldBusinessLendingModel

• $300MillionBond• InterestRate9%• Annual Distributions10%+• EquityOwnership• CapitalReturned5Years• 100%EquityBehindDebt• NoDrilling,NoExplorationandNoFracking

• Risk:LowRisk,CashFlowPositiveOilFields

• OilPriceHedged

NewModelwithLowRiskOilFields

LOWRISKOILPROPERTY

ACQUISITIONS

NODRILLINGNOFRACKING

NOEXPLORATIONSTEADYCASHFLOW

UNIQUEBENEFITSTOLENDER

• LowRisk• EarnHighInterest• EarnHighDistributions• Own50%ofMultipleOil

FieldsAfter LoanisRepaid• EquityValueEarned2‐5X

morethanOriginalLoan• Loans100%BackedBy

RealAssetUntilLoanRepaid

• CashFlowPositiveOilFields

YOURLOAN100%ASSETBACKED

ALLOWINGYOUTO:

EARNHIGHINTERESTRATEPLUSDISTRIBUTIONS

PLUSEQUITYINLOWRISKOILFIELDS

UNIQUELOWCOSTOILRECOVERYTECHNOLOGY

SIGNIFICANTLYINCREASESOILFIELDVALUE

AVERAGEGLOBALPRODUCTIONINCREASES:92%

TitanOilRecoveryTheTitanProcessGlobalResults

• 48OilFields• FourContinents• 300WellApplications• AverageProduction

Increase:92%• LowestCostOil

RecoveryintheWorld• Biodegradable

DEALPOINTS• LenderCommits$100milliontostartforacquisitionsoflowriskoilfields

• LenderandTitanOilRecoveryFormSeparateJVCompany(Owned50‐50)

• FieldisPurchasedwith100%DebtfromLender

• Lenderhas100%ofLowRiskOilFieldasCollateralforLoan

• InterestRate9%

• FiveYearTerm

• LenderGets50%ofallDistributionsfromDayOne.MonthlyDistribution.

• AfterLoanRepaid,LenderOwns50%ofFieldsPurchasedbyJVCompany

• AdditionalOilFieldsPurchasedfromInternallyGeneratedCashFlowandAdditionalLoansfromOriginalLenderifDesired

• JVOperationProfitssplit50‐50BetweenLenderandTitan

• ProjectedDistribution toRangebetween10%and30%ofFreeCashFlow

• FirstPhase:$100million.NextPhaseCouldUtilize$100‐500MillionofDebt

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DRAMATICGROSS PROFITCHANGEFROMALTERINGOILPRODUCTIONDECLINE

1000BOPDFIELD,$50OIL,5%ORIGINALDECLINE

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050,000

100,000150,000200,000250,000300,000350,000400,000450,000500,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Annual Oil Production (bopd)

Annual Production Before Titan Annual Production After Titan

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

$10,000,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Annual Gross Profit

Gross Profit Before Titan Gross Profit After Titan

FINANCIALRETURNSTOLENDERAFTERTHREEYEARSAND$300MILLIONLENTTOTHE

JVCOMPANY

• Interestearned:$79million

• DistributionsEarned:$41million

• LendersEquityinOilFieldsLessallDebtAfterYearThree:$549million

• YearFiveValuationofJVCompanyat6xCashFlow:$1.96billion

• EquityValueforDebtLender$980million

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ASSUMPTIONSTOTHEJOINTVENTUREMODEL

• Addyourfirstbulletpointhere

• Addyoursecondbulletpointhere

• Addyourthirdbulletpointhere

Oil Price $50 Starting Field(s) Size BOPD 5,500

Acquisition Cost $100 millionPurchase Price of Field at PV 10%

Debt Level 100%Investment Equity Nil

Debt $100 millionInterest Rate 9%

Original Production Decline -10%Before Titan Lease Operating Expense / Bbl $22.07 Titan Production Increase (1st two years only) 30%

Distribution Payout of Free Cash Flow 30%

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VALUEOFOILASSETSYEARTHREE

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CASHDISTRIBUTIONFROM30%OFFREECASHFLOW70%OFFREECASHFLOWTOACQUISITIONS

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JVCOMPANYECONOMICSSENSITIVITYTOTITANPROCESS

PRODUCTIONINCREASEItem 10%Increase 30%Increase

NPVofFieldsLess DebtYearThree $583million $1.0billionDistributions PaidtoJVOwnersFirstThreeYears $28million $41 millionNetIncomeYearFive $109million $198 millionValuationat10xEarnings $1.0 billion $2.0billionCashFlowYearFive $224 million $333millionValuation ofJVCompanyat6xCashFlow $1.3billion $2.0billion

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DividendpayoutsfromcashflowdependentonTitanProcessProductionIncrease.Thetableaboveassumesa30%allocationoffreecashflowfroma30%productionincreaseonfieldspurchasedthataredecliningbeforeTitanat10%peryear.Alsoshownisa10%productionincreasescenario.Productionincreasesareforthefirsttwoyearsoffieldownershiponly,followedbyagradualreturntothefielddeclineinyearfive.

JVINCOMESTATEMENTMOSTLIKELYTAXESWOULDBEPAIDBYTHEPARTNERS

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Year 1 2 3 4 5

BOPD 6,567 15,434 28,661 37,736 43,137Annual Revenue (000) $120,578 $291,841 $558,114 $756,747 $890,873 Net After Tax (000) $10,313 $44,484 $96,079 $154,561 $198,382

TITANPROCESSCAUSESMAJORCHANGESINOILFIELDECONOMICS:

• OilProductionIncreases• ReservesIncrease• CosttoRecoveranIncrementalBarrelOnly$5‐6• LifeofFieldisExtended• NoCapitalExpenseRequired• HighProfitMarginswithLoworHighOilPrices• GlobalAverageProductionIncreaseson48OilFields,FourContinentsand300WellApplications:92%Increase

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OILFIELDECONOMICS5,550 BOPDFIELD,$50OIL,DECLINEAT10%,LIFTINGCOST/BBL$20,TITAN PROCESS+30%

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OILFIELDECONOMICSTHISISFROMASINGLEFIELD8XRETURNINFIVEYEARS

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THETITANPROCESSPEERREVIEWEDSOCIETYOFPETROLEUMENGINEERSPAPERS

• FourSPEPapersWrittenByCustomers• AverageIncreaseinWellTests:200%+• DocumentedCostPerIncrementalBarrelofOilProduction;$6

NEW ENERGY AND FUEL MAGAZINE 18

THETITANPROCESS At one of the oil industry’s major conferences on new technology, The Rice Alliance 2012 Conference, Titan received the prestigious Most Promising New Technology Award.  This recognition was voted by the gathering of more than 350 industry professionals and experts. 

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THETITANPROCESSGLOBALRESULTS

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Titan Oil Recovery Treatment Summary

Number of Number of Number of  Success OilType Treatments Wells Increases Rate Increase

In‐Situ One Well Production Test* 49 47 36 73% 140%Producers 19 18 17 89% 133%Injectors 238 81 234 98% 54%    Total 306 146 287 94% 92%* In Situ Production Well Test to verify performance of the Titan Process before proceeding with broader applications

THETITANPROCESSWORLDCLASSOILPROFESSIONALSENDORSINGANDINVOLVED

WITHTHISCUTTINGEDGETECHNOLOGY

• BrianMarcotte– FormerPresidentofthreemajorproductioncountriesforUnocal.

• DrAlanHeeger ‐ NobelLaureateinChemistry

• RonHarrell– FormerCEOandChairmanofRyderScott,consideredthetopOilEngineeringandConsultingfirmintheworld;SeniorAdvisertoCarlyleGroupandMorganStanleyEnergyPartners

• ScotEvans– CurrentlyVicePresidentofHalliburton’sIntegratedAssetManagement

• SaadTuraiki– Ex‐ChiefPetroleumEngineeroverseeingthemanagementofalloilandgasfieldsinSaudiAramco.Ex‐VicePresidentmanagingalloilfieldsinSouthernRegionresponsiblefor6‐7millionbblsofproductionperday

• BillDaily– ExVPofAtlanticRichfield(world’s7th largestoilcompanybeforebeingboughtoutbyBP).InhislastCEOpositionhiscompanywasboughtoutfor$3billion.

• GaryAwad– ExVPofUnocal– Hislastenergycompany(LeadBoardmember)wasboughtoutfor$1.2billion

• Dr.WarrenKourt– ProfessorofOil&GasatStanfordUniversity

• SammyHamzah– ViceChairmanoftheIndonesianPetroleumAssociation,Indonesiaistheworld’s23rd largestoilproducer

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THETITANPROCESS

“WebelievethereisnootherenhancedoilrecoverytechnologyavailableanywhereintheworldthatcanremotelycomparetotheTitanProcess.ItisprobablythelowestcostproducerofoilintheworldevenwhencomparedtothefamousSaudilegacyfields,itrequiresnocapitalexpense,anditworkswithin10daysonsinglewellapplications.Itisproven,effectiveandlowcostonshoreandoffshore.Itisbiodegradable.ThesuccessrateonInjectorwellsisaremarkable98%.

Thereisnodoubtwhenthistechnologyiswidelyadoptedbytheindustryitcouldbeheraldedasoneofthemostimportantnewenergytechnologiesofthelast100years.

Since65%oftheworld’soilistrappedinexistingoilfieldsandcannotbeproduced,theTitanProcesspromisestoallowtheworldtoaccessasignificantpercentofthisvitalandvaluableenergysource.TheultimatevalueoftheTitanProcessinthisregardisalmostimmeasurable.”

….KennethJ.Gerbino,FounderandChairmanoftheBoard,TitanOilRecovery

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Contact:KennethJ.GerbinoTitanOilRecovery,Inc.

9595WilshireBlvd.,Suite303BeverlyHills,California

902123102810015

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