Lube Oil Recycling and Re-refining Gulf Basin Petroleum Recycling Company Lube Oil Recycling and Re-refining

Company Overview Focus Near-Term Plan Mgmt. Team Provide petroleum based environmental services to Gulf Basin industries Recover used oils and re-refine to generate valuable base lube oil and other refined products Near-Term Plan To develop the capability to recycle used oils having a high level of contaminants Construct a new, state of the art, 30 MM GPY used oil recycling /re-re-refining plant in Bienville, MS Utilize the rail and barge capabilities of Port Bienville Mgmt. Team Extensive experience in used oil re-refining operations, used oil collection, commercial, civil and industrial construction Exceptional track record in building and growing business across a wide range of industries

Vision & Mission Our Vision Our Mission To become the leading used oil re-refiner in the Gulf Basin and partner of choice to existing used oil collectors and generators of used oils. Our Mission To make a significant and lasting contribution to the environment and to sustainable development. To aid in the economic recovery of the Gulf Region

More than a billion gallons of used oil is available for re-refining US Lubricant Market (2.5 B GPY) Used Oil Generated (1.6 B GPY) Used Oil Collected (1.2 B GPY) Re-refined Oil (290 MM GPY) Improper Disposal (400 MM GPY) Asphalt, Cement Kilns Re-refineries Fuel Blending

US market is in the early stages of development 1200 MM GPY 620 MM GPY Used oil volume – Million Gallons/year USA   1.2 billion gallons collected 290 million re-refined 8 Plants operating 3 Plants announced Europe 620 million gallons collected 500 million re-refined 28 Plants operating No new plants announced

There is ample room for new re-refineries in each regional market

The feedstock supplier (collector) market is extremely fragmented USED OIL COLLECTION TOP 10 US COLLECTORS (MM GPY) The collection market in the US is highly fragmented and estimated to include ~400 companies nationwide providing collection & recycling services There is only one national company (Safety-Kleen) & approximately 30 significant regional Companies; the balance of the industry participants are small “Mom & Pop collectors These small companies typically sell their used oil to Industry as an alternative to virgin fuels Burning used lubricants is a poor use of the material from both an environmental and economic perspective Used oil generators would prefer to have their used oil recycled Company Annual Volumes Primary Service Area Safety-Kleen 180 ~ 200 National FCC 75 ~ 80 Mid Atlantic / Gulf Coast United Solutions 30 ~ 40 North Central Thermo Fluids 70 ~ 80 Intermountain West DeMenno / Kerdoon 40 ~ 50 California Universal Lubricants 20 ~ 30 Midwest Inter Gulf Corporation 25 ~ 30 Southwest Universal Environmental Svcs 30 ~ 35 Southeast Lorco Petroleum 15 ~ 25 Northeast Aaron Oil 20 ~ 25 Gulf Coast

Supplying re-refineries is the best option for collectors Majority of collectors are now selling into lower margin burner markets as an alternative to virgin fuels Collectors are experiencing erosion of margins Lower cost of natural gas “Warm mix” asphalt reducing demand for fuel General economic malaise Due to margin squeeze, small collectors are losing market share to collectors with re-refining capability or access to higher paying markets such as fuel blending, exporting. More re-refining capacity is needed to support used oil collectors Most collectors desire to get into higher margin re-refining but don’t have the resources or expertise to go it alone Capital cost of re-refining equipment Lack of technical expertise to operate a re-refinery

Strengths Constructed, commissioned & operated a re-refinery Have constructed, commissioned and operated a re-refinery in Chester, SC Team has significant expertise in building and operating oil collection and fuel processing facilities. Established customers for all re-refinery products Understand the challenges and opportunities in the business Have the team & execution capabilities to grow We have a very strong and experienced management and operations team to grow the business across multiple locations Lessons learned from prior operations and commissioning experience give us a strategic advantage for technology selection and commissioning of plants Have significant Business experience over a wide rang of industries Expertise in government, military and government bid contracts Managed and Directed operation of construction firms operating across the globe Managed and directed used oil collection company Managed and directed fuel recovery company

The time is right to build re-refineries in the US CONSCIOUSNESS ATTRACTIVE ECONOMICS Increased public awareness of the harmful effects of unregulated disposal of waste on the environment and on the health of its citizens Increasing consciousness on recycling and people’s willingness to pay the same or more for recycled products Increase in crude oil prices and tight supply of virgin lube oil Payback period for re-refining is now less than 4 years. Re-refined base lube sells at a discount of around ~10% to virgin base lube Propelling Growth GOVERNMENT INITIATIVES TECHNOLOGY IMPROVEMENTS Several national, international regulations are in place for collection and processing of used oil US DOE targets by 2015, 1.0-1.2 B GPY to be re-refined. This will require a tripling of current capacity in the U.S. Thus, re-refining in the US is a phenomenal growth opportunity Through continuous development, the technology has improved and is cost effective. Several players are successfully using the company’s planned equipment set Used oil collection systems have improved, partly through government initiatives

Lubricant Market Overview Lubricating oils are largely (75-95%) made of base oils, a mineral oil produced at an oil refinery; The balance would be additives, which are used to improve the lubricant’s performance It takes approximately 2 barrels (84 gallons) of crude oil to produce 1 gallon of virgin base oil The US Market represents 25% of global Lube Oil consumption, which total global consumption of approximately 10.3 billion per annum Annual US sales of Lubricants between 2004- 2010 have been relatively flat at ~ 2.5 Billion Gallons, due to the link between economic growth – net new vehicle sales and manufacturing equipment sales, offset by extended intervals in oil changes. There are vast differences in per capita consumption – United States 8.40 Gallons; Asia 0.80 Gallons; Western Europe 3.47 gallons Region Demand, Billion (Gallons /Year) Per Capita Demand (Gallons / Year)* United States 2.5 8.4 Latin America 0.8 1.8 Europe 2.8 6.9 Middle East 0.5 3.1 Africa 0.7 APAC 3.2 09-5.3** Total 10.3 1.7