1. A better alternative to natural mica in the production of effect pigments Presented on behalf of Impact Colors, Inc. 1 Innovation Way, Ste.100 Newark, DE 19711 T:302-224-8310 www.impactcolorsinc.com

2. Since commercialization in the 1970s, manufactured from natural mica coated with one or more layers of metal oxides. Indian ruby mica has been favored for this application. 1 Innovation Way, Ste.100 Newark, DE 19711 T:302-224-8310 www.impactcolorsinc.com

3. Natural mica sheet used as substrate for pearlescent pigment: Global estimate :100,000 to 120,000 tons per year 1 Innovation Way, Ste.100 Newark, DE 19711 T:302-224-8310 www.impactcolorsinc.com

4.  At present, 95% of natural mica is imported from India.  Quality is declining and prices are increasing.  Natural mica has deficiencies which are a barrier to development and production of high quality pearlescent pigment.  Development of synthetic mica as a replacement for natural mica lessens the reliance on a decreasing natural resource and lifts the quality of the product type 1 Innovation Way, Ste.100 Newark, DE 19711 T:302-224-8310 www.impactcolorsinc.com

5. Potassium Magnesium Aluminum FluoroSilicate KMg3AlSi3O10F2 : Synthetic Fluorophlogopite First synthesized in 1919 Developed for the electronics industry 1 Innovation Way, Ste.100 Newark, DE 19711 T:302-224-8310 www.impactcolorsinc.com

6. 1 Innovation Way, Ste.100 Newark, DE 19711 T:302-224-8310 www.impactcolorsinc.com High Temperature Precise control of composition Controlled cooling Delamination and grinding Key Technology DifficultiesInnovation Determining the parameters that give optimal crystal growth Conversion of the crystal mass into flake substrate suitable for producing effect pigment Process design and formulation Process scale to 10,000 TPA Physical processing of mass to single sheet flake – new grinding techniques employed

7.  Bulk density ≤0.35 g/cm3  Hue: better that standard sample of natural mica  Brightness: better than standard sample of natural mica  PH value: 6-8  Oil absorption: 60-90 1 Innovation Way, Ste.100 Newark, DE 19711 T:302-224-8310 www.impactcolorsinc.com

8. Technical index Synthetic Natural white mica Pearlescent pigment with synthetic mica Pearlescent pigment with natural mica Optical Transmittance （ μ ） 0.3~4.50.3~2.0—— Whiteness≥9555~70≥95(Silver white series)65~75(Silver white series) Max Use temperature ( ℃ ) 11008001100850 Heavy metal≤ ppmPPM≤ ppmPPM Total iron as Fe2O3 ≤0.2%0.8~2%≤0.2%(Silver white series)0.8~2%(Silver white series) Chroma—— Better than pearlescent pigment with natural mica Brightness—— Better than pearlescent pigment with natural mica 1 Innovation Way, Ste.100 Newark, DE 19711 T:302-224-8310 www.impactcolorsinc.com

9. AppearanceColorless and transparent Flexibility≥30% Total Iron≤0.2% Synthetic mica content ≥98 ％ Heavy metal≤0.2ppm Radius-thickness ratio≥80 Average thickness≤0.3μm Particle size distribution d90/d50≤2 ， d50/d10≤2 Whiteness≥96 1 Innovation Way, Ste.100 Newark, DE 19711 T:302-224-8310 www.impactcolorsinc.com

10. Compared to natural mica, synthetic mica offers:  Higher purity  More consistency  Cleaner, whiter white pearls  Resistance to higher temperature  Greater reflectivity  Interference colors with higher chroma  More compressible in pressed powders  Less bleed from metallic colors  A better value proposition 1 Innovation Way, Ste.100 Newark, DE 19711 T:302-224-8310 www.impactcolorsinc.com