Texas Natural Resources is developing the SEADOG® Pump wave energy technology. It has undergone successful sea trials and is a patented wave energy conversion device that uses the rising and falling of a buoyancy block to pump water and generate electricity via hydro turbines. The company aims to deploy an initial commercial demonstration project off the coast of Freeport, Texas to showcase the technology and attract strategic partners for further development and licensing.

1. … the world’s first licensee of SEADOG® Pump Technology Texas Natural Resources, LLC MARK A. THOMAS CHAIRMAN 612-817-9497 www.txnaturalresources.com [email_address]

2. Texas Natural Resources, LLC SEADOG® Pump Technology-Introduction Wave Energy Conversion Device What problem does it solve? The growing demand for clean, renewable energy Patented in 79 Countries Primary Renewable Fuel Source Scalable to Different Wave Regimes No Carbon Emissions No Environmental Degradation Reduces temperature gradient and the disruption of ecologically sensitive shorelines Safety Meets or exceeds OSHA’s oil platform standards “ Above the storm surge” security

3. Texas Natural Resources, LLC SEADOG® Pump Technology How it works: Conversion of natural wave activity into mechanical energy using displacement and buoyancy Rising and falling of buoyancy block creates a pumping action A predicable water flow can then can be paired with an energy conversion device to produce electricity (hydro turbine or water wheel) First wave technology to harness both potential and kinetic energy Potential: downward pressure from water weight, gravity and submersion of buoyancy block (“beach ball effect”)

4. Texas A&M Wave Tank November, 2003 Sea Trial I (30 Days)– Freeport, TX February, 2007 Sea Trial II (90 Days) – Galveston, TX July, 2007 Texas Natural Resources, LLC SEADOG® Pump Technology Verification SEADOG ® Pump Technology Frank Warnakulasuriya, Ph.D Texas A&M, Galveston: “ Since the SEADOG ® Pump is one of the first devices that absorbs both potential and kinetic energy, it represents a significant advancement in the harvesting of wave energy over many other devices.” “… when considering the SEADOG ® Pump, most of the above mentioned potential problems [mechanical malfunctions] are not present which can be credited to the simple design of the SEADOG ® Pump” “ The possibility of improving the SEADOG ® Pump to work at an overall effectiveness in the range of 45% to 55% is visible”

5. Texas Natural Resources, LLC SEADOG® Pump Technology-Energy Production Wave Regimes in Europe Directory of Renewable Energy (Suppliers and Services) 1991 Pump Number Possible Location Output per Pump 1.5 Gulf Coast (US) 1 KW 5 West Coast (US) 22KW 10 Ireland 1390KW

6. According to recent estimates by the World Energy Council, ocean energy can potentially supply twice as much electricity as the world now consumes Top Wave Regimes Determined by the following criteria (T W Thorpe 1992): Supply – Swell average, standard deviation and coastline Need – Population per square km, capacity for electricity, and economical growth Opportunities – Consumption per capita, consumption per square km, and political stability Texas Natural Resources, LLC European Wave Energy Market The Top 21 Wave Regimes in the World : http://tonto.eia.doe.gov/country/index.cfm Electricity Generation & Consumption Country Name Net Generation (billion kilowatthours) Net Consumption (billion kilowatthours) Ireland 26.08 25.67 Portugal 46.26 48.0 1. UK 8. Canada 15. Columbia 2. Spain/Portugal 9. Indonesia 16. Peru 3. Chile 10. China 17. Mexico 4. Ireland 11. Philippines 18. Vietnam 5. Oceania 12. Morocco 19. India 6. France 13. Japan 20. Taiwan 7. USA 14. Brazil 21. Argentina

7. Competitor Problems: Intermittency at fuel source Submerged electrical components Breakdowns increase costs Too many moving parts create instability Large surface area creates harmful pounding action on devices (tank leaks in Pelamis) SEADOG® Solutions : Absorbed in holding tank Hydroelectric output onshore prevents these Simplicity of design decreases costs Very few moving parts leads to higher efficiency Elegantly simple, flow through design Texas Natural Resources, LLC Technology Comparison

8. Utilities Ireland, Spain and Portugal multi-national corporations joint venture partners Merely as a byproduct of the Initial Project (showcase) : Celebrities : would purchase an offshore modular platform for private use or charity projects Potential licensees: we anticipate inquiries from the Gulf of Mexico market and the island communities Sir Richard Branson-founder of the Virgin brand and an entrepreneur always searching for new business ventures Halliburton-has inquired about offshore air applications Texas Natural Resources LLC Customers

9. Texas Natural Resources, LLC Business Plan- “Field of Dreams” Showcase Initial Project – Commercial Demonstration 18 SEADOG® Pump Texas Offshore Modular Platform Create Electricity for On-Platform Use Platform as Marketing Tool Funding Equity Government Subsidy Debt Financing Preparation for Subsequent Project(s) Development of Strategic Partnerships Engineering Manufacturing Marketing

10. Texas Natural Resources, LLC Progress To Date Regulatory Permitting City of Freeport Texas General Land Office Carlton Bernhard (Professional Services) : “The lease and assignment are moving through the pipeline (the documents have to be reviewed and signed off on by Legal and other areas within our agency). No major issues just time consuming. I hope to forward an electronic version of the assignment to you by cob tomorrow and, if not, Monday or Tuesday at the latest. The lease should follow a few days afterwards.” Army Corps of Engineers Jason M. Hudson : “The only other things I need is typical plan drawings of the layout of the SEADOG ® Pump with the connecting pipes and a plan and cross section view of the facility you plan to install offshore” Endorsements Craig Richards Senior VP, Greater Houston Partnership: “ GHP has been engaged with INR to site the project in Brazoria County where they have received strong support. I understand they are seeking to partner with the Houston Technology Center. Therefore I encourage you to give them serious consideration” Robert M. Worley CEO of the Economic Development Alliance for Brazoria County (EDABC): “ We are very excited about the wave energy project being planned for Freeport! It is exciting for several reasons – 1) renewable, non-polluting energy is a wonderful thing, 2) this project represents a great project for industrial diversity in Brazoria County, 3) we like the fact that it will be a commercially viable demonstration project and should bring visitors from around the world, 4) good jobs and good addition to the tax base. This project meets several of the economic development goals of The EDABC.” Larry McDonald Mayor of Freeport “ I am very impressed with the plans for your development at Bryan Beach and I am willing to support your project as you presented it during your recent visit to Freeport”

11. Platform Construction: Veriovox (Brookshire, TX)-Pump Fabrication 14 inch custom pistons completed Modified buoyancy block Field Assembly Texas Natural Resources, LLC Progress To Date

12. CHAIRMAN Mark A. Thomas Texas Natural Resources, LLC Management Team CHIEF FINANCIAL OFFICER Dan C. Kind (recruitment in process) CHIEF MARKETING OFFICER Robert Paisley Curriculum vitaes available upon request CHIEF OPERATING OFFICER Michael McMahon CHIEF EXECUTIVE OFFICER E. James Nunez CHIEF OPERATING OFFICER Steven J. Campbell

13. A Company Based Out of Houston, Texas Proprietary patent rights granted via licensing (including Ireland) Primary Renewable Energy Technology SEADOG® Pump: a wave energy conversion device that has been both tested and proven technology Electrical Power Production Scalability makes the technology competitive in different energy markets Solidifying commercial viability Texas Natural Resources, LLC Summary

14. TEXAS NATURAL RESOURCES, LLC 1980 Post Oak Blvd, #1450 Houston, TX 77056 MARK A. THOMAS CHAIRMAN office :281-864-4720 cell : 612-817-9497 email : [email_address] Texas Natural Resources, LLC Contact Information