CarbonTech, LLC “ Renewable Energy from MSW & ASR ” © CarbonTech, LLC 2009

Outline © CarbonTech, LLC 2009 Who We Are What We Can Do Our History Technology Advantages How It Works Beneficiaries Cato Compared Our Future

Who We Are

What We Can Do

Our History

Technology Advantages

How It Works

Beneficiaries

Cato Compared

Our Future

Who We Are © CarbonTech, LLC 2009 CarbonTech is the business entity to commercialize CATO Research Corp process “A Method to Recapture Energy From Organic Waste” through an exclusive license with CATO CarbonTech is based in Glendale, AZ , with affiliate in Nabb, IN and has 2 employees CATO Research is owned by Paul Kruesi and Family and owns the US Patent granted September 2008, No. 7,425,315. Paul Kruesi holds 19 Patents in the Fields of Hydrometallurgy, Fuel Cell and Energy Research

CarbonTech is the business entity to commercialize CATO Research Corp process “A Method to Recapture Energy From Organic Waste” through an exclusive license with CATO

CarbonTech is based in Glendale, AZ , with affiliate in Nabb, IN and has 2 employees

CATO Research is owned by Paul Kruesi and Family and owns the US Patent granted September 2008, No. 7,425,315.

Paul Kruesi holds 19 Patents in the Fields of Hydrometallurgy, Fuel Cell and Energy Research

What We Can Do Process MSW (Municipal Solid Waste) and ASR (Auto Shredder Residues) to an energy rich sustainable source of carbon with high BTU value (>12,000 BTU/LB) Utilize CO 2 and CO in an exothermic solid gas chemical reaction to oxidize carbon bonds Hydrocarbon Oxidation: 2{-CH 2 -} + CO 2 = 3C + 2H 2 O (g) Recover recyclable metals contained in these waste streams Capture Furans and Dioxins prior to formation by capturing Chlorides and Fluorides with Mg via MgCO 3 Chloride Capture/Vinyl Chloride : 2{C 2 H 3 Cl) + MgCO 3 = 5C + MgCl 2 + 3H 2 O (g) Reduce the amount of Waste land filled in the World utilizing CarbonTech technology Reduce our dependence on fossil fuels and become part of the DREAM Team. © CarbonTech, LLC 2009

Process MSW (Municipal Solid Waste) and ASR (Auto Shredder Residues) to an energy rich sustainable source of carbon with high BTU value (>12,000 BTU/LB)

Utilize CO 2 and CO in an exothermic solid gas chemical reaction to oxidize carbon bonds

Hydrocarbon Oxidation: 2{-CH 2 -} + CO 2 = 3C + 2H 2 O (g)

Recover recyclable metals contained in these waste streams

Capture Furans and Dioxins prior to formation by capturing Chlorides and Fluorides with Mg via MgCO 3

Chloride Capture/Vinyl Chloride : 2{C 2 H 3 Cl) + MgCO 3 = 5C + MgCl 2 + 3H 2 O (g)

Reduce the amount of Waste land filled in the World utilizing CarbonTech technology

Reduce our dependence on fossil fuels and become part of the DREAM Team.

Proven Unique Technology © CarbonTech, LLC 2009 The technology has been verified directly by Prof. Patrick Taylor and his graduate students at the Colorado School of Mines. Some 56 experiments over 18 months were performed. Columbia University studied a parallel technology and confirmed the capability to sequester CO 2 using similar parameters GK Technologies has confirmed the ability to employ the process in a Fluidized Bed technology for commercialization It is important to realize that this is not an incineration process, but rather a chemical process.

The technology has been verified directly by Prof. Patrick Taylor and his graduate students at the Colorado School of Mines. Some 56 experiments over 18 months were performed.

Columbia University studied a parallel technology and confirmed the capability to sequester CO 2 using similar parameters

GK Technologies has confirmed the ability to employ the process in a Fluidized Bed technology for commercialization

It is important to realize that this is not an incineration process, but rather a chemical process.

Our Technology History © CarbonTech, LLC 2009 The Colorado School of Mines verified the CATO process in an eighteen-month demonstration of the technology. Harmful gases such as furans and dioxins were not detected in their testing. Over 50 tests were run on various carbon based materials The low temperature process preserves metals, such as aluminum foil, allowing them to pass through the process unaltered. The carbon generated from the process has BTU content equivalent to coal and can be utilized as a coal substitute. Steam generated during the process can be used to drive turbines that generate electricity.

The Colorado School of Mines verified the CATO process in an eighteen-month demonstration of the technology.

Harmful gases such as furans and dioxins were not detected in their testing.

Over 50 tests were run on various carbon based materials

The low temperature process preserves metals, such as aluminum foil, allowing them to pass through the process unaltered.

The carbon generated from the process has BTU content equivalent to coal and can be utilized as a coal substitute.

Steam generated during the process can be used to drive turbines that generate electricity.

© CarbonTech, LLC 2009 US MSW Summary (EPA 2006) GENERATED RECOVERED AVAILABLE TO CARBONTECH PROCESS MATERIAL TONS (000) % TONS (000) % Recovered TONS (000) % Available Metals 19,130 7.6 6,950 36.3 12,180 63.7 Organics (C) 215,290 85.5 71,960 33.4 143,330 66.5 Non-Organics 16,920 6.8 2,880 21.8 N/A N/A Total MSW 251,340 100 81,790 32.5 155,550 61.2

Projected CarbonTech Benefits © CarbonTech, LLC 2009 Reduced volume of waste to landfills (minimum 5:1) Recovery of metals without oxidation loss Recycling metals versus mining conserves fossil fuel use Significantly less expensive to build than traditional WTE facilities All harmful emissions captured, no dioxins or furans created Renewable carbon product with BTU content equal to fossil coal (12,000 BTU/pound) Will achieve 1.2 Mw/ton or 30 Mw/hour at 25 ton per hour production rates 1 hour of production (30 MwH) displaces 60 barrels of oil No Sulfur content

Reduced volume of waste to landfills (minimum 5:1)

Recovery of metals without oxidation loss

Recycling metals versus mining conserves fossil fuel use

Significantly less expensive to build than traditional WTE facilities

All harmful emissions captured, no dioxins or furans created

Renewable carbon product with BTU content equal to fossil coal (12,000 BTU/pound)

Will achieve 1.2 Mw/ton or 30 Mw/hour at 25 ton per hour production rates

1 hour of production (30 MwH) displaces 60 barrels of oil

No Sulfur content

© CarbonTech, LLC 2009 How It Works

Colorado School of Mines Reaction at Temperature © CarbonTech, LLC 2009 This demonstrates the sustained reaction over time at temperature .

Hazen Research Reaction at Temperature © CarbonTech, LLC 2009 This demonstrates the sustained reaction at temperature over eight hours.

© CarbonTech, LLC 2009 Beneficiaries Urban Community A community of approximately 220,000 people that uses its generated MSW of 500 tons per day to produce electricity for its own consumption will see cumulative savings of over $25 MM annually.

© CarbonTech, LLC 2009 Consumer electricity purchased = $100/MwH $120,000,000

© CarbonTech, LLC 2009 Automobile Shredders

© CarbonTech, LLC 2009 CarbonTech Advantages Greater BTU conversion to power than other systems CO 2 used to oxidize the carbon contained in waste Single step process. Does not require taking to higher temperatures to complete process. Exothermic, self-sustaining: uses less energy No dioxin or furan formation means no scrubbing at extreme temperatures Works on any carbon content materials MSW/ASR most abundant applications Biomass Waste synergy Low capital requirements to build A complete 6 MW system will cost about $16 MM Reactor, boiler and 6 MW turbine Estimated payback for Urban Community = >9 months Estimated payback for Automobile Shredder = 12 months

Greater BTU conversion to power than other systems

CO 2 used to oxidize the carbon contained in waste

Single step process. Does not require taking to higher temperatures to complete process.

Exothermic, self-sustaining: uses less energy

No dioxin or furan formation means no scrubbing at extreme temperatures

Works on any carbon content materials

MSW/ASR most abundant applications

Biomass Waste synergy

Low capital requirements to build

A complete 6 MW system will cost about $16 MM

Reactor, boiler and 6 MW turbine

Estimated payback for Urban Community = >9 months

Estimated payback for Automobile Shredder = 12 months

© CarbonTech, LLC 2009 CarbonTech vs. Other Technologies Torrefaction/Pyrolysis High temperature, endothermic Lower yield Mass Burn/Incineration Lower efficiency conversion of energy to electricity Severe oxidation/degradation of recovered metals Gasification (Syngas) High energy consumption Requires multiple steps to final product Plasma Arc Extremely high energy consumption High initial capital costs High operating costs Microwave (re: ASR) High energy consumption Failed in pilot facility

Torrefaction/Pyrolysis

High temperature, endothermic

Lower yield

Mass Burn/Incineration

Lower efficiency conversion of energy to electricity

Severe oxidation/degradation of recovered metals

Gasification (Syngas)

High energy consumption

Requires multiple steps to final product

Plasma Arc

Extremely high energy consumption

High initial capital costs

High operating costs

Microwave (re: ASR)

High energy consumption

Failed in pilot facility

© CarbonTech, LLC 2009 Our Future CarbonTech will expand the application process and its uses alone or in combination with other processes to convert the following wastes to sustainable sources of carbon, metals, and environmentally friendly byproducts. Residential construction and demolition (C&D) Tire piles High Sulfur Coal Timber from Pine Beetle infested forests Oil Shale Sands Byproducts Carbon to higher value added uses Methane Butane Propane Patent Pending Fuel Cell technology

CarbonTech will expand the application process and its uses alone or in combination with other processes to convert the following wastes to sustainable sources of carbon, metals, and environmentally friendly byproducts.

Residential construction and demolition (C&D)

Tire piles

High Sulfur Coal

Timber from Pine Beetle infested forests

Oil Shale Sands Byproducts

Carbon to higher value added uses

Methane

Butane

Propane

Patent Pending Fuel Cell technology

© CarbonTech, LLC 2009 What’s Next CarbonTech is actively engaged in identifying the most efficient technology for commercial implementation of our process. Fluidized Bed Reactor Indirect Fired Rotary Kiln We are developing a fully realized business plan to demonstrate the complete financial benefits of the Cato process. CarbonTech is working with equipment manufacturers and generators of ASR as partners to assist in developing a pilot program leading to a fully developed demonstration facility. CarbonTech is aggresively pursuing investors to finance our growth and development.

CarbonTech is actively engaged in identifying the most efficient technology for commercial implementation of our process.

Fluidized Bed Reactor

Indirect Fired Rotary Kiln

We are developing a fully realized business plan to demonstrate the complete financial benefits of the Cato process.

CarbonTech is working with equipment manufacturers and generators of ASR as partners to assist in developing a pilot program leading to a fully developed demonstration facility.

CarbonTech is aggresively pursuing investors to finance our growth and development.

© CarbonTech, LLC 2009 CarbonTech, LLC 4708 W. Pasadena Avenue Glendale, Arizona 85301-7617 www.carbontechllc.com Michael Jaap & Daniel Shapiro