October 11, 2012 Upgrading Bitumen using Molten Sodium Enabling Cost Effective Upgrading at Modest Scale 1 John Gordon Javier Alvare Neil Camarta

October 11, 2012 Molten Sodium Upgrading Breakthrough Upgrading …Significantly Less Complex …One-Half the Capital Intensity …Twice the Net Margin …Less Hydrogen Required …Greatly Improved Economics …Lower emissions 2

October 11, 2012 Molten Sodium Upgrading 3 Reactor Separato r Electrolytic regeneration Separator H 2 or CH 4 Ni, V, Fe Electrical Power Na salt Na Sulfur Make up Na Simple Process

October 11, 2012 Diluent loop 4 Bitumen production Market Sodium Upgrading Dilbit Mix Diluent Stripper Sweet 20 API Low resid 8 API 36 API 18 API 20 API Diluent return

October 11, 2012 Major Equipment Comparison 5 Molten SodiumCoking ReactorAtmospheric Unit Solids Separator 1Vacuum Unit Condensate StripperCokers Solids DryerCoker Fractionator Solids Separator 2Gas Recovery Unit Electrolysis UnitHydrogen Plant Tank FarmNaphtha Hydrotreater UtilitiesDistillate Hydrotreater Gasoil Hydrotreater Amine and SRU Tank Farm Utilities

October 11, 2012 MSU Treatment Example Fractions boil at lower temperature “Resid” fraction is reduced 6

October 11, 2012 Electro Regeneration 7

October 11, 2012 Electrolysis Cells Na 2 S Solution Molten Sodium Molten Sulfur Anolyte Cathode NaSICON tube Anode Na 2 S Solids Depleted Na 2 S Solution Na 2 S Depleted Solids

October 11, 2012 Tubular Commercial Cells For sodium waste recovery 9

October 11, 2012 Cell Life Tests Very Encouraging 10 Anolyte Replacement

October 11, 2012 Example Metrics & Economics 11

October 11, 2012 Key Crude Valuation Metrics 12 Property Athabasca Bitumen Feed MSU Product Best Run MSU Product Potential Delayed Coking Sweet SCO API Gravity Sulphur, wt%4.9%<0.1% 0.2% TAN, mg KOH/g 2.8<0.1 Olefins wt%0%1.1%<1.0%0% MCRT, wt%13.2%0.3%<0.3%0% C 5 Asphaltenes16.6%<0.3% 0% Ni+V, wppm289<1

October 11, 2012 Key Crude Valuation Metrics 13 Property Athabasca Bitumen Feed MSU Product Best Run MSU Product Potential Delayed Coking Sweet SCO Distillation IBP – 350 F0%4% 17% 350 – 650 F14%34%36%58% 650 – 1000 F35%43%45%25% 1000 F +51%19%15%0% Yield (LV%)N/A90%95%82% Edmonton Price $US/bbl $42.76$74.52$75.65$80.01

October 11, 2012 Economics - Margin 14 MSU Product Potential Delayed Coking Sweet SCO Feedstock Price, US$/bbl$42.76 Product Price, US$/bbl$75.65$80.01 Product Yield, LV%95%82% Gross Margin, US$/bbl$29.93$23.67 Operating Cost, US$/bbl$8.85$16.30 Net Margin, US$/bbl$21.08$7.37

October 11, 2012 Economics – Capital & Return 15 MSU Product Potential Delayed Coking Sweet SCO Net Margin, US$/bbl$21.08$7.37 Capital Cost, US$/bbl$30,000$60,000 Capital Cost, US$MM$750$1,500 IRR, %18.4%1.1% NPV (10%), US$MM$602($835) Profitability Index

October 11, 2012 Emissions 45% Lower CO 2 Emissions Zero SO 2 Emissions 16

October 11, 2012 Niches Smaller operations Diluent scarce Decentralized Remote 17

October 11, 2012 Next Steps Pre-pilot investigation st Pilot scale installation and operation 2013 –

October 11, 2012 Contact Information John Gordon …(801) Neil Camarta …(403)