China’s only Integrated Aquatic Products Company HQ Sustainable Maritime Industries, inc.

2 HQ HQ ’s processing facilities and aquaculture operations are located on the pristine tropical island province of Hainan. HQ’s Unique Location

Hainan offers: Hainan offers: Only in Hainan can sashimi- grade tilapia be raised year round. 20% per year increase in Tilapia farms over the last 2 years in Hainan which will continue at the same pace for the next 5 years.

4 Global production of tilapia

5 US. Tilapia Imports : China Now Dominates Market Share Source: American Tilapia Association

6 US Tilapia consumption 229,000 mt of live weight ,410 mt of live weight-2005

7 Value of US Tilapia Forms Imported into the US 297,413,000 (2004) $392,978,298 (2005)

8 Top Ten Seafoods (U.S.) per capita (lbs) Tilapia is the 4 th most popular seafood import in 2006 according to USDA

's1970's1990's2010 Million Metric Tons All seafood & aquaculture productionAll meat production Ocean Catch All meat includes: beef, poultry, swine & sheep. All seafood includes: ocean and farm catch. Ocean Catch: ocean catch only. Aquaculture Market Projected Total World Protein Production Fish consumption is currently 70 percent the size of all other meat products combined. World Fish Consumption will Surpass all other Protein Consumption Combined The future is fish Current

10 World tilapia production expected to reach 1,500,000 mt in 2004 and 2,000,000 mt by world sales over $2 billion 2010 sales projected to be over $5 billion Projected World Tilapia Production and Sales Source : American Tilapia Association

11 HQ’s Cost Advantage Tilapia Production China - $0.70/kg Philippines, Indonesia - $0.80/kg Brazil, Ecuador, Thailand - $0.85/kg Honduras, Costa Rica - $0.90/kg Mexico - $1.00/kg Taiwan Province - $1.05/kg US - $2.00/kg Canada - $2.10/kg Source: American Tilapia Association China - $3.50/kg Philippines, Indonesia - $4.00/kg Brazil, Ecuador, Thailand - $4.25/kg Honduras, Costa Rica - $4.50/kg Mexico - $5.00/kg Taiwan Province - $5.25/kg US - $10.00/kg Canada - $10.50/kg At Pond At Plant (Frozen tilapia fillet) HQ competes at Chinese price levels while producing sashimi-grade frozen fillet.

12 Quality Labor, Quality Conditions, Cost Advantage HQLow labor costs in China let HQ operate at a cost advantage over international competitors, while providing workers with quality working conditions and good pay.

13 HQ Mission Statement Vertically integrated quality HQTo bring quality and excellence to every aspect of HQ’s vertically integrated aquatic products business. To be the world’s leader in tilapia markets based on market driven products of the highest quality while generating strong profitability.

14 Our Business Quality responding to demand HQ is the leading direct Chinese exporter of quality tilapia (frozen) products to the US. HQHQ has uniquely integrated operations: –R & D –Aquaculture (through cooperative supply arrangement) –Processing of aquatic products in response to evolving market demand –Nutraceutical manufacture and –Sales and Marketing

15 The Market Opportunity Global demand ….increasing and changing The global ocean catch has not increased for the last five years and cannot keep pace with demand. The shortfall is being met by aquaculture production, and China is the leading producer. Higher quality aquaculture products are demanded by consumers. HQ’s on-hand orders are greater than current production capacity.

16 HQGrowth Strategy HQ Growth Strategy Distribution and branding initiative. Patented nutraceutically enriched organic feed formulae with expanded plant production.Patented nutraceutically enriched organic feed formulae with expanded plant production. Phase 2 Phase 1 The TiLoveYa brand is the symbol for HQ’s future growth...vertically integrated quality supporting a strong brand

17 HQGrowth Strategy Distribution and Branding Initiative HQ Growth Strategy ® Distribution and Branding Initiative HQ has relocated its corporate and sales offices to the Pacific North-West, and acquired Pacific Supreme Seafoods, headed by Trond Ringstad, who becomes HQ’s Executive VP, Sales and Distribution ; Trond has begun rolling out the new TiLoveYa® brand with appropriate support documents, web site, and marketing campaign. New corporate presentations are airing on CNBC through paid programming on PTG’s Business and Beyond & World Business Review with Alexander Haig Phase 1

18 HQGrowth Strategy Distribution and Branding Initiative HQ Growth Strategy Distribution and Branding Initiative HQ will sell directly to major purchasers of Tilapia a differentiated product at higher margins supported by the new branding and marketing initiative. –Such targetted buyers include; Wholefoods Albertson’s Stop “n Shop Appleby’s Denny’s Red Lobster Restaurants Phase 1 ®

19 HQGrowth Strategy Distribution and Branding Initiative HQ Growth Strategy Distribution and Branding Initiative New Sales Team will; Enhance sales margins through marketing campaign; Manage import of product and distribution; Begin sales of fresh product including zero- toxin shrimp products; HQ’s processing plant and shrimp farms are being certified to ACC standards making HQ the first such certified operations in China; ®

20 Profitability will be enhanced through the demands of traceability and applied technologies including; –Real time inventory of products and raw materials –Business intelligence data analysis tools –Ongoing quality and environmental monitoring HQGrowth Strategy Distribution and Branding Initiative HQ Growth Strategy Distribution and Branding Initiative Phase 1 ®

21 All Tilapia are not created equal,..TiLoveYa Zero toxin Tilapia for Lovers of healthy Food All Tilapia are not created equal,..TiLoveYa ® Zero toxin Tilapia for Lovers of healthy Food Phase 1 ®

22 HQGrowth Strategy Feed Mill and patented Feed HQ Growth Strategy Feed Mill and patented Feed Construction of local Feed Mill ill provide newly formulated feed for HQ including “floating feed” Feed production to organic standards and nutraceutically enriched Partnership through licensing agreement with American organic feed formulation companies and others to benefit from their proven technology R & D input from Chinese nutraceutical and feed experts Phase 2 ®

23 HQGrowth Strategy Nutraceutical Products Manufacture HQ Growth Strategy Nutraceutical Products Manufacture Health and nutraceutical product plant and Specific Gravity Molecular Separator owned by HQ Phase 2 ®

24 HQGrowth Strategy Nutraceutical Products HQ Growth Strategy Nutraceutical Products Phase 2

25 HQGrowth Strategy Expanded Production HQ Growth Strategy Expanded Production Construction of a new production plant or acquisition and upgrade of an existing plant will more than double capacity and introduce some value added products such as breaded fillet. Phase 2 ®

26 Conclusion Responding to demand World protein markets will be dominated by fish in the coming years Traceability and consumer awareness of health issues create opportunities for farmed organic products nutraceutically enriched by a vertically integrated company HQ is the leader in responding to these challenges HQ

27 Highest Quality