BIONEST ® High Performance Bioreactor and UV disinfection system Technical Presentation

1) Corporate presentation 2) Certifications 3) The BIONEST ® Advanced TTU* System 4) The BIONEST ® Advanced TTU* System combined with UV Disinfection * TTU: Tertiary Treatment Unit Table of contents

BIONEST TECHNOLOGIES INC. / BIONEST DISTRIBUTION INC. / BIONEST TECHNOLOGIES SOUTH INC. - Canadian and US based companies - Founded in R&D started in Employs more than 60 people - Offices in:Grand-Mère (Québec, Canada) Pembroke (Ontario, Canada) Elm Grove (Wisconsin, USA) Fort Lauderdale (Florida, USA) - Certifications in progress in: France, Belgium Corporate Presentation

- ANSI / NSF Standard 40, Class I (North America) - NQ Class III & V (Residential applications, Quebec, Canada) - Recognized as a standard technology for Commercial and Community applications (North America) Certifications

The BIONEST ® Advanced TTU System

Executive Summary of NSF Test Results The BIONEST ® Advanced TTU System

Summary of BNQ* results (with UV disinfection) The BIONEST ® Advanced TTU System Table : Official results of BNQs certification testing Advanced Secondary (class III) Tertiary (class V) BOD 5 C (mg/l) TSS (mg/l) Fecal Coliforms (UFC/100ml) Quebec Requirements Average results after 12 months of certification testing (Annexes A & B of BNQ testing) * BNQ – Quebec testing agency

PROCESS DESCRIPTION The BIONEST ® system is an attached growth, fixed film bioreactor producing and maintaining the ideal conditions for biological wastewater treatment The BIONEST ® System consists of two conventional, dual compartment, septic tank like reservoirs in series. First Tank:Conventional Septic Tank Second Tank : Biological Reactor (Advanced TTU) The BIONEST ® Advanced TTU System

Patented « Ribbon like » media offering a very high surface area for bacterial growth and development (3.6 ft² per gallon of water); Media porosity and etching assures excellent resistance to hydraulic shock and sloughing; Media is non-biodegradable and requires no replacement; Constant aeration with warm air from the house, assures year long nitrification, avoids freezing, promotes high bacteria metabolism, produces a high level of treatment and reduces sludge production; Constant recirculation of treated nitrified water back into the septic tank assures high nitrogen removal and superior overall performance (multi pass vs. single pass); Very high hydraulic retention time (+/- 4 days) reduces sludge production. Main System Characteristics The BIONEST ® Advanced TTU System

Disposal of Treated Effluent Should be done in accordance with local regulations Examples: 1) Soil Dispersal Field 2)Surface Discharge 3)Pressurised Distribution System 4)Shallow Buried Trench 5)Area Bed The BIONEST ® Advanced TTU System

BIONEST ® Advantages Consistent high level of Treatment Nitrogen removal Entirely buried (no visual impact) Low solids and color content (high UV transmittance) Odourless No media replacement Low energy consumption (total of +/- 100 watts) Extended Warranty Available Easy installation (less than a day) The BIONEST ® Advanced TTU System

Models and cost (not including tanks and installation) The BIONEST ® Advanced TTU System To be determined State by State

Warranty 2 years on parts and labor 10 years on all parts 20 years on the polymer media The BIONEST ® Advanced TTU System

Operation and Maintenance Mandatory contract between consumer & Bionest Annual inspection at a cost of $75 per annum starting the third year (1 st & 2 nd years free); Services performed during inspection: Inspection and cleaning of septic tank effluent filter; Measuring of sludge build up in bioreactor; Cleaning of air pump intake filter; Expansion and release of diffuser membranes; Inspection of the re-circulation pump and alarm systems. Energy cost: +/- 100 watts ($65 to $100 Per Year) The BIONEST ® Advanced TTU System

F.A.Q. Why does the BIONEST ® system need constant aeration ? - Oxygen is one of the essential elements in all BIONEST ® TTU systems, we provide permanent aeration with warm air that assures optimal wastewater treatment independent of outside temperatures. Air, in sufficient quantity with the appropriate retention time assures not only total BOD conversion but also ammonia conversion into nitrates. Why is there re-circulation ? - Because of re-circulation, BIONEST ® has outstanding and consistent performance as well as reducing biological sludge production. In the Bioreactor, ammonia is almost totally transformed into nitrates (Nitrification ). By re-circulating the treated wastewater continuously back into the septic tank, nitrates are converted into nitrogen gas (de- nitrification ). Re-circulation makes BIONEST ® a highly effective multi- pass system. The BIONEST ® Advanced TTU System

F.A.Q. Does the BIONEST ® system produce sludge? -The BIONEST ® produces significantly less sludge compared with other biological wastewater treatment systems. This is accomplished because the amount of nutrients in the sewage is insufficient to feed the demand of the abundant micro organisms developing within the system on the media. The BIONEST ® Advanced TTU System

Air pumpDiffusers Recirculation pump

The BIONEST ® Advanced TTU System Patented BIONEST ® Media

The BIONEST ® UV Disinfection Unit

UV rays at a wavelength around 254 nm penetrate bacteria cell membrane and inactivates the DNA chain. This results in the destruction of the reproductive capacity of the cell. (Death of the cell) The BIONEST ® UV Disinfection Unit

Factors influencing UV Disinfection The BIONEST ® UV Disinfection Unit BIONEST ® has virtually no solids in its effluent BIONEST ® requires that domestic water meets EPA drinking water standards. No water treatment backwash can be discharged into the BIONEST ® system BIONEST ® effluent has a high transmittance and no dissolved organic substances such as tannins. Treated water is clear and optimal for UV disinfection Every UV unit installed has flow restriction assuring that the flow rate cannot exceed a certain value. A high level of disinfection is consistently achieved. Solids (shielding of bacteria): Iron, manganese and hardness (fouling of lamp sleeve) : Tannins, lignins and Humic substances (absorb UV light and decreases performance) Flow rate (exposure time to UV rays) :

Photo reactivation - Some irradiated bacteria may have only been injured by the rays and not totally inactivated. Bacteria can sometimes be repaired when exposed to sunlight. - BIONEST ® disposes of the disinfected effluent through underground dispersion instead of direct discharge at the surface, this reduces photo reactivation, prevents freezing and direct human contact. The BIONEST ® UV Disinfection Unit

Must be done in accordance with local regulations Examples: 1)Surface water, drainage fields. 2)Ditch (via diffusion zone) 3)Wetlands, swamps. 4)Pressurised Distribution System, etc. Disposal of Treated Effluent

Warranty / Maintenance / Operation Warranty: 1 year on lamp and on full installation 5 years on ballast, vessel and electrical components Maintenance:- Two visits per year (lamp cleaning after 6 months and replacement after 12 months) - Two coliform tests per year Estimated annual cost: $350 including lamp, tests and normal BIONEST ® maintenance Energy Cost:+/- 40 watts ($25/yr) The BIONEST ® UV Disinfection Unit

Example of indoor installation The BIONEST ® UV Disinfection Unit

Example of outdoor installation The BIONEST ® UV Disinfection Unit

Examples of UV configurations UV The BIONEST ® UV Disinfection Unit Pump

Example of diffusive zone for discharge into a ditch: The BIONEST ® UV Disinfection Unit

Questions ?