CoResource Solutions – Technology Review Turning oilfield “waste” into our most valuable resource… Water.

The Oil Industry’s Water Challenge Traditional oil industry avoidance of water processing is expensive & risks environmental issues Truck hauling of water to offsite injection wells can be expensive Dealing with permits and drilling costs for a new disposal/injection well can be prohibitive and risks production shut in or over-pressuring on your injection well Surface discharge of fluid often does not meet regulatory specs  Industry’s current water treatment processes are operating and/or capital cost intensive AND often incomplete Plates or cartridges reduce flow, and require much more maintenance Flocculants that only remove suspended solids, without a specific ability to target free hydrocarbons are incomplete solutions Desalination without removal of solids and hydrocarbons uses much more energy and consumables is very problematic CoResource has a  Constant Flow, Low Cost, Low Maintenance SOLUTION

The CoResource PATENTED Technology Micro-encapsulating Flocculating Dispersion (MFD) Video URL https://www.youtube.com/watch?v=vY6nGf_thTo#/watch?v=vY6nGf_thTo Start – Oily Water Samples MFD Process Begins – Nanopolymer begins grabbing Hydrocarbons MFD Completed – Hydrocarbons bound up in the nanopolymer, naturally settled either to top or bottom for removal MFD Nanoparticles Provides very large reactive surface area Leads to rapid and efficient chemistry Binds to FREE OIL and suspended solids Additional chemicals bind into a bulk flocculant The Technology Enables Low chemical dosage rates per barrel Low treatment cost per barrel Custom solutions for the unique chemistry of each water sample

The CoResource Patented Nanopolymer Scavenger Grabs Suspended Hydrocarbons and Solids in Water Patented nanopolymer hydrocarbon scavenger, when mixed with oily water rapidly attaches to nearby carbon based molecules producing a pin-flocculant, which is then rapidly settled by creating a larger bulk flocculant. Active sites grab the suspended oil and solids in water The oil and solids are removed with the nanoparticles

MFD Captured Hydrocarbons and Solids are Settled and then Removed After settling, the bulk flocculant containing the nanopolymer and the hydrocarbons are removed from the water along with any other remaining solids. Clean Water Flocculant After adding an activator and conditioner, the MFD Molecules aggregate to form the bulk flocculant, which settles, leaving clean water

The CoResource Continuous Flow Water Process Patented nanopolymer enables efficient and economical oil and solids removal Step 1 - Oily water (separated from produced oil) is pumped into a patent pending mixing unit with a customized chemical program that includes the patented nanopolymer hydrocarbon scavenger. Step 2 - This unique nanopolymer is mixed into the oily water to bind with hydrocarbons and solid contaminants, and does so more efficiently than most other competitors. Step 3 - Additional chemicals are added to create a bulk flocculant that gathers the nanopolymer containing the hydrocarbons and solids pulled from the water. Step 4 - After settling, the bulk flocculant is removed. Step 5 - The remaining water is run through a back-flushable filter to capture any residual flocculant, leaving water suitable for reuse, release, or desalination if required. Step 6 - If desalination is required, then the system will include equipment (such as reverse osmosis or alternative technologies) to perform this step. The result is water with significantly reduced levels of salt that is suitable for reuse or surface release, and a high salinity brine with market value. Step 7 – Usable End Products: The biodegradable bulk flocculant removed from the water can be composted, or used as a component of aggregate in road construction.

CoResource Patent Pending Process Untreated Oily Water OSR System Settling Tank Mechanical Filter Desalination If Required Processes Filtered Residual Flocculant Settled Flocculant End Products Flocculant Storage for Composting or Aggregate Use Clean water For Reuse or Surface Release (if salt level is low) Concentrated Brine for Sale Fresh water For Reuse or Surface Release

CoResource OSR System Patent pending “Oil and Solids Removal” System Patent Pending Continuous Flow System Chemicals tailored to fit specific site chemistry Continuous flow system can handle anywhere from 2000 barrels to 10,000 barrels per day Multiple systems can be tethered together to handle any amount of water SCADA (Supervisory control and data acquisition) compatible for remote monitoring Dependable, Easy, Low Cost in the Field Fork lift compatible for easy transport and on-site adjustment Automated – Designed for ease of operation/maintenance Remote monitoring of operations to reduce overhead Minimal maintenance by client personnel All OSR systems are Class 1 Division 2 safety rated

CoResource System Design Generation IV OSR System boast a small footprint design (48” X 130”) for minimal space on and off-shore

Valuable End Products Can create an unheard of ZERO waste oilfield operation Produced Water after Processing Residual Oil < 1 ppm Solids < 1 NTU Clean Water: Hydrocarbons and solids removed Great for industrial purpose or reuse in drilling, fracking Surface release or Desalination After Desalination: “Reverse Osmosis” or other technology Desalinated Water: Suitable for surface release or reuse – constructed wetlands, irrigation, industrial processes Concentrated Brine: US Clear Brine industry market size was valued at $870 million in 2015 according to Global Market Insights. Bulk Flocculant End Use Use in Concrete Aggregate for Well Pads, Well Casings, Roads, and Jersey Barriers sold to public and private entities Composting or “land farming” the flocculant

Intellectual Property Strategy Patent and Patent Pending Patent: Micro-encapsulating Flocculating Dispersion (MFD) Strategy: to Expand Rights beyond US and Canada Patent Number: 7750066 – July 6, 2010 Description: Creating and using of nanopolymer to attach to a contaminant Patent Pending: OSR System - Filed July 1, 2015 Possible Future Technologies Proprietary Desalination Process – Lower Energy and Cost Future Applications that may be possible Refineries Bilge Water Emergency Management Systems

On-Shore Applications Clean Produced and Flow Back Water from Ongoing Production Provide clean produced water for reuse in drilling, completions, fracking, and workovers Cleaning Oil Spills Other Industrial Applications, including Refineries

Off-Shore Applications The Oil and Solids Removal system provides a small footprint in order to be mounted on a ship or off- shore rig. Uses Initial Focus: Pipeline Remediation programs Next Step: Expect water management service contracts for drilling and production platforms in the next rounds of bidding. The CoResource system is being considered for emergency processing of oil/hazardous waste spills in the Gulf and Inland waterways.

Environmental Solutions are Smart Business Surface discharge saves significant costs vs. disposal Surface release of treated water (where applicable) creates a new fresh water resource Environmentally sensitive water processing solutions promote a more positive relationship with landowners and local stakeholders Technology that is inherently regulatory compliant leads to increased production opportunities and lower supervision costs Positive corporate image ZERO WASTE has a significant financial impact on bottom line

Environmental Solutions CoResource created a wetland in Custer MT. From completion to today, this site has processed almost 1 million bbls for surface release with a positive impact on the environment.

Competing Systems Compared

Produced Oil Water Market - $5. 8 Billion. Worldwide Produced Oil Water Market - $5.8 Billion* Worldwide *Grandview Research 2015 market size 2016 Oil Production (mm BBLs/Day) Crude Oil* Share of Oil Est’d Water** USA 8.7 mm 10.9% 52.4 mm BBLs per Day Canada 3.9 mm 4.9% 23.4 mm BBLs per Day Rest of World 67.4 mm 84.2% 404.3 mm BBLs per Day Total World 80.0 mm 100.0% 480.1 mm BBLs per Day *  World's Top Oil Producers 2016 U.S. Energy Information Administration ** Assumes industry average of 6 BBL water/1 BBL Oil