1 Seair Diffusion Systems Inc. Pulp & Paper Solutions June 2009

2 Diffusion towers used to replace traditional blower systems Reduce aeration power consumption by up to 80%, which frees up more power for production line and ultimately increases overall plant production Achieve higher dissolved oxygen levels, which allows for more use of high-value hardwood feedstock Reduce maintenance Started by testing (and subsequently purchasing) a small unit, now the much larger SA600 is being used DO levels over 3-4 ppm versus prior to SA600 start-up Initial implementation at Canfor`s pulp mill in Taylor, B.C. Pulp & Paper

3 Diffuse ambient air, through Seair’s patented diffusion tower, into mill aeration pond Primary objective is to increase pond dissolved oxygen levels Current Pulp & Paper Applications

4 Increase dissolved oxygen (“D.O.”) levels to … Operational and Business Drivers …achieve/maintain compliance with discharge water standards …Convert anaerobic pond to aerobic condition, thereby facilitating biological cleaning/remediation …be able to run more frequently/longer on higher value, but oxygen consuming, hardwood feedstock …reduce/eliminate odour Higher D.O. levels achieved with significantly lower power consumption than alternative methods (up to 80% horsepower reduction relative to coarse bubble blowers) Extremely low maintenance requirements Allows maximum reuse of water

5 Started by testing (and subsequently purchasing) a small unit Subsequently added the much larger SA600 Aeration pond D.O. levels over 3-4 ppm versus prior to SA600 start-up Installation at Canfor`s pulp mill in Taylor, B.C. Case Example – Canfor (Taylor, B.C.)

6 Canfor Pulp Mill Taylor, British Columbia Canfor Pulp Mill Taylor, British Columbia

7 4 x 900 Horsepower Blowers (energy cost of approx. $975K) 4 x 200Hp Aeration Mixers 2 x 50hp Berm Mixers Aeration System – Prior to Seair Installation System Designed to handle Biological Oxygen Demand (BOD) loads of 20, ,000 kg/day BOD. Hardwood species have higher BOD loads than softwood. Hardwood production has improved dramatically the last year.

8 SA600 installed when temperatures were -40 o C, or worse Units have been operating trouble free for two years Seair Equipment Installed in Dead of Winter

9 Graph 1: Consume of Power Usage with Trial Units Installed

10 Data and Analysis Table 1: Effluent Treatment Performance – Seair A400 and A600 Pilot Units Case Inlet COD (mg) Outlet COD (mg) Average DO Total Amps Effluent Flow m3 COD Reduction COD Redn/Amp One Year Pre- Installation Pre- Installation A400 Only A400 and A Table 2: Preliminary Savings Calculations: A400 plus A600 Pilot Units AMPSVOLTSKWHRSMWHValue/Year $ 263,781

11 Craig Thomson Energy and Environmental Supervisor Canfor Mill, Taylor B.C. “System at its finest”

12 Mill has 2×1800Hp aeration blowers. Pond pushed passed design, straining aeration system Installed 2 Seair SA600 systems to diffuse ambient air into aeration pond Trial Installation at Millar Western`s pulp mill in Whitecourt, Alberta Case Example – Millar Western (Whitecourt, Alberta)

13 Tank based protocol used to determine residence time and efficiency. Millar Western - Implementation Objectives Test determined a success, DO remained above 3 ppm for excess of 20min. Demonstrated the resonance time of the microbubble and transfer efficiency.

14 Black and White liquor oxidation Other Applications Pulp oxidation and bleaching with oxygen and ozone. Color removal for water. Effluent oxygenation for discharge Water recycling. Make up water treatment

15 For More Information Please Contact Harold Kinasewich- President and CEO 9554 Yellowhead Trail Edmonton, Alberta CANADA T5G 0W4 tel fax