ConfidentialJuly 17, 2015 Wind Opportunities in US & Mexico

Who is xFlashpoint? Exclusive distributor We sell everything that Hi-Energy makes US, Canada, Mexico Many contacts in South America & Caribbean (next markets)

Value Proposition US Wind Energy will double in next 5 years Hi-Energy Turbines are more efficient Protected by 14 patents in 20 countries xFlashpoint has exclusive rights xFlashpoint has partnered with Blue Earth xFlashpoint needs small investment to capitalize on opportunity Can quickly realize significant growth A distribute vehicle for other Korean products

Hi-Energy Products Turbines –Single

Hi-Energy Products Turbines –Single –Towers –Tower Clusters

Hi-Energy Products Turbines –Single –Towers –Tower Clusters Streetlights

Hi-Energy Products Turbines –Single –Towers –Tower Clusters Streetlights Surveillance

Hi-Energy Products Turbines –Single –Towers –Tower Clusters Streetlights Surveillance HVAC

US & Canadian Market Average Cost of Electricity

US & Canadian Market Average Cost of Electricity Average Wind Speed

US & Canadian Market Average Cost of Electricity Average Wind Speed Green Penetration (Particularly Solar)

Mexican Market Average Cost of Electricity ($0.21/kWh) –One utility company (production & distribution) –Regulations changing quickly Average Wind Speed

Market Verticals Direct Sales Indirect Sales HVAC Surveillance Streetlighting Telecommunications Government/Military Agriculture

Subsidies and Incentives 30% Federal Tax Credit 25% State Agricultural Grants Regional “Energy Trust” Grants

New Product Development Integrate Hi-Energy Turbines into new Products specific for our region –Cold Storage Warehouses

New Product Development Integrate Hi-Energy Turbines into new Products specific for our region –Cold Storage Warehouses –Intel

Main Competitors CompanyTechnologyMain ProductsLocation Bergey WindPowerHAWT kWUSA Urban Green EnergyVAWT200 W to 3.2 kWUSA Helix WindVAWT kWUSA Southwest Wind - XzeresHAWT500 W to 1 kWUSA Ventera WindHAWT10 kWUSA Dyo TechHAWT400 WUSA Kliux EnergiesVAWT1.8 kWSpain Turbina EnergyVAWT500 W to 4 kWGermany EoltecHAWT6.1 kWFrance Gaia WindHAWT11 kWScotland Montanari EnergyHAWT kWItaly EvanceHAWT kWUK

Solar/Wind Parity Do we consider Solar a Competitor? No!

Solar/Wind Parity Do we consider Solar a Competitor? Complementary Technologies Solar Panel –250W (on the surface of the sun) –15-20% efficiency –Effective Output: 50W Wind Turbine –300W (in a hurricane) –40% efficiency (5-6 m/s) –Effective Output: 120W Similar Rating, Twice the Output

Solar vs. Wind Price

Solar vs. Wind Footprint Wind requires 10% of the space of solar Hybrid Wind/Solar is best

Marketing & Brand Management Active Social & Web presence Advertising (narrowly targeted industry segments) Budget for promotion to raise brand awareness Industry trade shows

Unique Distribution Opportunities Amazon –Channel for product promotion –Fulfillment potential Don’t need a warehouse Don’t need warehouse and shipping staff Don’t need invoicing and payment process tools and staff Don’t need inventory control and delivery systems and staff Saves Us Money

Risks Completely Risk Free!

Risks Just Kidding! Currency Risk Competition could invent something new ROI’s are 5-7 years (a lot can happen in technology in that time) Regulations changing (reduced subsidies, changing laws)

Financial Projections Main components of the projections –Compounded Annual Growth Rate (CAGR) –Main Driver is Experienced Personnel (reflected as % of revenue) –Invest in Marketing and Brand Recognition –Conservative Promotional Expenses –Cash flow and breakeven (Month 23)

Financial Projections

Summary Great Opportunity! Expanding Market Well Positioned to Capture Significant Market Share Lean Management and Expense Approach Perfect Timing for Renewable Energy Investment Thank You