Objective Capital's Proppants Investment Forum David Henson, LWP Technologies City of London - April 21, 2016

1. PROPPANTS INVESTMENTPROPPANTS INVESTMENT
FORUM
Next-Generation Fly-Ash Based Proppants
David Henson – CEO, LWP Technologies ‐ Americas
GRANGE CITY HOTEL, CITY OF LONDON ● THURSDAY, 21 APR 2016
www.ObjectiveCapitalConferences.com

2. PROPPANT FORUM
with
Objecti e CapitalObjective Capital
London
21 April 2016
David Henson
LWP Technologies Limited (ASX:LWP) - Next-Generation Fly-Ash Based Proppants
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David Henson
CEO

3. This disclaimer forms part of and is incorporated in the accompanying material
The information in this presentation is an overview and does not include all information necessary for investment decisions. In making investment decisions,
investors should rely on their own examination of LWP Technologies Limited, (LWP) or consult with their own legal, tax, business and/or financial advisors in
connection with any acquisition of securities. This information has been prepared in good faith by LWP. However, no representation or warranty, express or
implied is made, in relation to the accuracy or completeness of the information provided in this document or any other information by LWP otherwise
provided to the recipients. Whilst every care has been taken with preparation of the information contained in this document, no responsibility is accepted by
LWP or any of its representatives, directors, partners, employees or professional advisers for any information provided in this document or otherwise
provided to the recipients or for any action taken by the recipients on the basis of such information. In particular, no representation or warranty is given as
to the accuracy likelihood of achievement or reasonableness of any forecasts prospects or returns contained in the information Such forecasts prospectsto the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in the information. Such forecasts, prospects
or returns are by their nature subject to significant uncertainties and contingencies. Each recipient of the information should make its own independent
assessment of the information and take its own independent professional advice in relation to the information and any action taken on the basis of the
information.
This presentation includes forward looking statements within the meaning of the Corporations Act. These forward looking statements may be identified by
words such as “may,” “will, “expect,” “intend,” “anticipate,” “believe,” “estimate,” “plan,” “project,” “could,” “should,” “would,” “continue,” “seek,”y, , p , , p , , , p , p j , , , , , ,
“target,” “guidance,” “outlook,” “forecast” and other similar words. These forward looking statements are based on LWP’s current objectives, beliefs and
expectations, and they are subject to significant risks and uncertainties that may cause actual results and financial position and timing of certain events to
differ materially from those described in the forward looking statements: failure of a proposed transaction to be implemented; the challengers of cost and
closing, integrating, restructuring and achieving anticipated synergies; the ability to retain key employees; and other economic, business, competitive,
and/or regulatory factors affecting the business of LWP generally, including those set forth in LWP’s business plan, in particular, the “Risk Factors” section.
Any forward looking statements speak only as of the date hereof or as of the dates indicated in the statements. LWP assumes no obligation to publicly
d t l t f d l ki t t t t fl t t l lt h i ti h i th f t ff ti th f d
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update or supplement any forward looking statement to reflect actual results, changes in assumptions or changes in other factors affecting these forward
looking statements except as required by law.
© LWP Technologies Limited

4. LWP Technologies Limited (ASX:LWP) - Next-Generation Fly-Ash Based Proppants
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5. A Comprehensive Review on Proppant Technologies
Feng Lianga, Mohammed Sayeda, Ghaithan A. Al‐Muntasheria, Frank F. Changb, Leiming Lia
a Aramco Services Company, Aramco Research Center – Houston, 16300 Park Row, Houston, TX 77084, USA
b Saudi Aramco, P.O. Box 5614, Dhahran, 31311, Saudi Arabia, , , ,
Received 1 October 2015, Accepted 5 November 2015, Available online 14 November 2015
65 Year of Fracturing Experience : The Key to Better Productivity
Is Not What we Have Learned, But What We Have Forgotten..
F Syfan Terry Palisch J Dawson – 2013 SPE 166107
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F Syfan, Terry Palisch, J Dawson 2013 SPE 166107

6. Generally, silica sand is used to prop open low stress fractures in shallow formations. Sand is less expensive per
Propping Agents
Generally, silica sand is used to prop open low stress fractures in shallow formations. Sand is less expensive per
pound than Resin Coated Sands or ceramic proppants.
RCS is used where more compressive strength is required to minimize proppant crushing, it has an effective density
that is less than sand.
Ceramic proppants consist of:
Sintered bauxiteSintered bauxite
Intermediate‐strength proppant (ISP)
Lightweight proppant (LWP)
The strength of a ceramic proppant is proportional to its density. Also, the higher‐strength proppants, like sintered
bauxite, cost more than ISP and LWP. Ceramic proppants are used to stimulate deep ( > 8,000 ft) wells where large
values of in situ stresses will apply large forces on the propping agent
When choosing a propping agent, a proppant that will maintain enough conductivity after all crushing and
embedment occurs must be chosen The effects of non Darcy flow multiphase flow and gel residue damage should
values of in‐situ stresses will apply large forces on the propping agent.
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http://petrowiki.org/Propping_agents_and_fracture_conductivity
embedment occurs must be chosen. The effects of non‐Darcy flow, multiphase flow, and gel residue damage should
also be considered.

7. UNDER PRESSURE (ISO 13503‐2)
b / h h d
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Low Krumbein 6K 20/40 Northern White Sand
crushed at 7,000PSI – net result 10.8% fines

8. LWP Ceramics under pressure
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High Krumbein 14k LWP 30/50 Ceramic proppants crushed at 15,000 Psi

9. Kaolin Based Ceramics
• Kaolin - White Bone China aka Porcelain
• ‘High Ridge’ in Chinese.
• Approx. 1450 Degrees Celsius firing
temperature
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10. Bauxite Based Ceramics
Refractory Grade Bauxite
55-60 % Al2O3
< 5 % SiO3
< 5 % Fe2O3
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Dehydration/calcining 1 hr at 1080 deg C
Calcining approx 1 hr at 1800 deg C

11. What is Coal and Flyash?
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Source : EngineeringToolbox.com

12. Flyash basics
ASTM Class F Class C
>70% ------------>50%
Ash content coal up to 40% !!
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Ash content coal up to 40% !!

13. Flyash Classes (US – ASTM C618)Flyash Classes (US ASTM C618)
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14. The difference is?
While both classes of fly ash greatly reduce concrete permeability as compared to the
cement only mixes Class F tends to give proportionately greater permeability reductioncement only mixes, Class F tends to give proportionately greater permeability reduction.
Due to the higher levels of pozzolanic compounds, Class F fly ash mitigates against
sulfate attack, alkali silica reaction, corrosion of reinforcement, and chemical attack.
While Class C fly ash generally improves concrete durability as related to these forms of
tt k hi h l t t b t ff ti l iti t thattack, higher replacement percentages may be necessary to effectively mitigate them.
What about melting behavior?
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http://www.boralna.com/flyash/faq.asp
g

15. Flyash Melt Phenomena ‐ Eutectics
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ASH FUSIONTEMPERATURES AND THE TRANSFORMATIONSOFCOALASHPARTICLES TO SLAG
S.Gupta.T.F.Wall.R.A.Creelman andR.Gupta Department of chemical Engineering University of Newcastle, Callaghan, NSW 2308, Australia

16. Si Al Ca / Si Al Fe (quat)Ternary Diagrams
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Changes in Fly Ash With Thermal Treatment
John M Fox 2005 World of Coal Ash (WOCA), April 11-15, 2005, Lexington, Kentucky, USA

17. Mechanics of Sintering
Sintering occurs by diffusion of atoms through the microstructure. This diffusion is caused by a gradient
of chemical potential – atoms move from an area of higher chemical potential to an area of lower
chemical potential. The six common mechanisms are:
Handbook Advanced Ceramics
Somiya et al 2003
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FLYASH + SINTERING + mechanical densification = ????

18. So lets get at it …..g
Phase 1 R&D 2011‐13
Erlangen, Germany
Phase 2 2014 present
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Phase 2 2014‐present
Brisbane, Australia

19. Area of research Timeline (yrs) Key findings
R&D – Technical Lab
Effects of grinding and classifying 2 Control green and fired strengths
Green strength and density via moisture and binders 2 Sufficient for using commercial equipment such as
vibratory, belt elevator etc
Eutectic melting point effects of combustion impurities and
i dditi ( ti ki )
3, ongoing Key effects of natural impurities and processing additives
t d ti ki id tifi dprocessing additives (sticking) to reduce sticking identified
Porosity control via flux and doping agents 1, ongoing Ability to moderate porosity
Sintering, decalcining and quench curve optimisation 1, ongoing Up to 15% reduction in sintering temp via additive/blend.
Energy consumption.
Krumbein factors (Sphericity /Roundness) 2, ongoing Controllable 0.6<x<0.9
Rapid screening method for flyash testing 1, ongoing Proprietary
Clean coal combustion impacts 2, ongoing Effects of FGD, ammonia, activated carbon and other
cleanup residues
Ageing effects of flyash 1 Confidential
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Rapid on line or in house test methods to enable process and
quality control
2 years Proprietary

20. Flyash Testing Program
Type of flyash / number
of tests
Lab scale - 2015
x flyash @ y tests
Pilot
Scale
20161
K range
(k PSI)
Characteristics /
observations
Australian 3@16 In
progress
5< x < 7
Indian 3@91 1@3 5 < x < 15 Scale up results identical to lab
!!
Chinese None in 14 /15
US 6@43
South African ? TBD
European ? TBD
1 Brisbane pilot plant first production run December 2016
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1 Brisbane pilot plant first production run December 2016

21. R&D – Commercial / Engineering
Key area Target Findings
Logistics models P2P vs Hub vs be - spoke Point of use manufacture,
logistically differentiated
C S C fCommercial model US , Australia complete, ME
under development
Confidential
Site location key factors Oil field, power plant, fuel
availability
Confidential
a a ab ty
Energy consumption Reduced calcination/reaction
energy
Lab analysis complete,
validate with new facility
Standard plant design 50k and 100k TPA facilities Confidential
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Standard plant design 50k and 100k TPA facilities Confidential

22. Conceptual Plant Design
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23. Build this, Get that …
⍬ not to scale
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24. Brisbane Pilot Plant
• Production capacity: 3,000 tons/year
• Construction completed May 2015, commissioning completed August 2015
• First scale up results validated 3rd party December 2016 12k Proppant
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25. 2016 Development Activities
Activity Duration Target result
Australian Ash (lab) 2 months Sinter curve and mix design
Texas Ash (lab) 2 months Sinter curve and mix design
Indian Ash (pilot) Successful scale up Optimise plant design
parameters
( ) S 2 S fAustralian Ash (pilot) Starting q2 Scale up, finalise plant design
parameters
Texas Ash (pilot) 4 months …
Canadian ash Under development ?
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26. CCP’s – A US success, an Emerging Global
Business
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The US leads the world in beneficial reuse of flyash at approx 50%
https://www.acaa-
usa.org/Portals/9/Files/PDFs/2014ReportFinal.pdf
http://ashtrans.eu/onewebmedia/15%20ASHTRANS%202015%20TDUVE.pdf

27. India – A Growing Challenge to Achieve..
Note : also includes mine
filling and ash dyke/dam raising for flyash
P d b fi i l (23%)
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Ponds as a beneficial use (23%)
http://cea.nic.in/reports/others/thermal/tcd/flyash_final_1415.pdf

28. Indian FA CCP exports to Saudi Arabia…
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http://www.infodriveindia.com/india-export-data/fly-ash-export/fc-saudi_arabia-report.aspx

29. Conclusions
1. LWP Flyash proppants ‐ Sand to Ceramic flexibility
2. Proven scale up and repeatability across various feedstocks
3. Logistically differentiated – manufacture close to point of use
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