1. Technology Preview Calgary 21st January 2009

2. Agenda 10.00Welcome and introduction 10.15Presentation of Tarblaster technology, and Q&A 11.15Discussion on perceived strengths of technology 12.00Sandwich lunch 12.45Identification of key challenges, potential solutions, and timeline 13.45Discussion of commercialisation options and preferences 14.30Conclusions and action plan 15.00End of meeting

3. Background

4. Presentation of Tarblaster Technology and Q&A Background Introduction to Technology and Innovations Status and Testing Business Case Next Steps - Commercialisation

5. Tarblaster AS Based in Norway, commenced operations 2007 Incorporated by 88 shareholders from Norway, England, Sweden, Germany, Switzerland, USA and Canada Number of issued shares 11.000.000 CEO Olav Ellingsen The company subcontract its other needs such as accounting, auditing, financial advisors and legal assistance from case to case. Board of Directors Chairman, lawyer Morten Borch, Oslo Member, engineer, Steve Kent, London Member, marketing investigator Bjarte S. Ellingsen, Oslo Member, engineer Olav Ellingsen, Florø

6. R&D Partners Sintef Energy Research AS, Trondheim, Norway Professor Jens Hetland Ph.D. Jørn Bakken Nyhavna Mekaniske AS Engineer Sig Fuglestad KGD Development AS CEO Engineer Roger Gale Professor Finn Drangsholt

7. Statistics For Tar Sands In Alberta, Canada Total volume in place 1,7-2,5 trillion barrels Total recoverable (probable)335 billion barrels Surface mining proven reserves 35 billion barrels Other methods proven reserves 98 billion barrels Present production1,1 million bbl/day Projected production 20102,0 million bbl/day Projected production 20154,0 million bbl/day (*) Tar sand moved per bbl2,0 ton Water consumption per bbl 430 liter (if no recycling) Number of leases in Alberta2.800 (*) At this production level it will take about 100 years to empty the proven reserves

8. Problems Connected With Existing Technology High consumption of water (40 million liter pr 100.000 barrels of oil produced) Water polluted with small amount of oil and fines High level of energy consumption – Natural gas main energy source High output of CO2 emission Huge capital investments Heavy oil which must be upgraded or mixed with light oil prior to refining Environmental footprint Overall recovery Reference- Oil Sands Technology Roadmap, Alberta Chamber of Resources, Jan 2004

9. Problems Connected With Existing Technology

10. Overall Emissions and Waste from Present Oil Sand Operations (Total CO2 emissions ~ 43kg/bbl)

11. Introduction to Tarblaster Technology and Innovations

12. What is Tarblaster? Tarblaster is a “dry” process for the simultaneous extraction and upgrading of oil from oil sand, oil shale and other particle- oil mixes (e.g. sludge) in one operation, without the use of water or steam. Technical feasibility based on: Unique low temperature and pressure thermo-mechanical process Process equipment known to the industry Mining operation as for existing technology Tarblaster AS will develop, refine and commercialize this revolutionary and highly beneficial technology, which offers substantial economic benefits to clients engaged in the extraction of oil from oil sand and oil shale.

13. The Benefits Of Tarblaster Technology No water consumption Clean dry sand emitted – no wet tailings CO2 emissions reduced by at least 30% Extraction and upgrading of the oil in one operation CAPEX reduced by ~80% Increased value of oil by: Increased API from 8 to 25* Reduced sulphur (50-60%) and metal (90-95%) content Low energy consumption Self-sustained with energy by combustion of ~12% of recovered oil Low OPEX Easy to scale up (*) Proved API 18, but believe it will be possible to reach API 25 by an add on process

14. Tarblaster - How It Works Simplified Flow Diagram The basic process can be described in 5 key steps: 1.Oil sand is injected into a low- temperature reactor, heated by partial combustion of the oil in the injected sand. Within the reactor, oil is stripped off the sand, and partial cracking also takes place. 2.The sand is then conveyed pneumatically into a riser by the hot gases, and routed to a cyclone. 3.Within the cyclone, the sand is separated from the stream and is returned to the reactor, and the solid- free gases are transported to a condensation system. 4.The condensation system is a dual procedure, avoiding formation of emulsions, and resulting in two streams of liquid oil and natural water (originating from sand). 5.The sand from the reactor is discharged continuously into a steam boiler which extracts the heat in the sand for steam generation, prior to final discharge of clean, dry sand.

15. Tarblaster – Process Overview

16. Tarblaster – Flow Diagram

17. Tarblaster Main Components Reactor with start up burner Hopper for material feed Cyclone for solids separation Sand filter for fines separation Exhaust gas heat exchanger Solid/gas heat exchanger Fluidized gas super heater Oil condenser Water condenser

18. Status and Testing

19. Development To Date Technology developed by Tarblaster a/s, Norway Investors include energy-sector VC The test rig at SINTEF, Norway was completed for testing in July 2008 Oil sand oil with an initial grade of 10 API has been extracted at 360  C and upgraded to 18 API oil, at a production rate of 2 barrels/ day With aim to reach 25 API first half 2009

20. Test Unit First test June 2008 Test rig ready for testing at SINTEF ENERGY RESEARCH AS, Trondheim

21. Mixed Oil Sand First Oil Recovered Dry Spent Sand Results of Testing

22. Combustor Riser Cyclone Sand box Oil condenser Water condenser Reactor

23. Combustor Hopper Steam condenser Riser Oil tank Knock down tank

24. Oil condenser Water condenser Knock down tank Gas supply Sample condenser

25. Knock down tankCombustor Hopper tank Super heater Oil tank

26. Temp curves first test

27. From Oil Sand To Oil

28. Business Case

29. Tarblaster Logistics

30. Expected Results MATERIALINITIAL API UPGRADED API COMMENTS Atabasca tar sand (bitumen) 8-10251 w% coke in tailings Temperature 350- 400 C Pressure 1,1 bar Sulphur reduction 50-60% Metal reduction 90- 95%

31. Next Steps – Commercialisation

32. Technology Commercialisation ACTIVITYLEVELYEAR% Basic technology research 11999- 02 Basic principle evaluated and theoretical calculations performed 100 Research to prove feasibility 22002- 06 Technology concept and patent application filed 100 Technology development 32007 2008 2009 Construction of the rig completed Initial tests and proof of concept Mass and Energy Balance Tests 100 0 Technology demonstration 42010 2011 2012 Engineering TB 2000 Construction Commissioning on site 500500 System test and operation 52015?Tarblaster proven through successful operation 0

33. Main Commercialisation Activities

34. Summary of Key Benefits For Existing Industry As An Add On Process Reduced Capital Investment Reduced Environmental Impacts and thus reduced Liability Risks Shorter Pay Back Time Lower Recovery Costs And Higher Yield Can Handle Lean Sand Solves The “Water Problem”

35. Agenda 10.00Welcome and introduction 10.15Presentation of Tarblaster technology, and Q&A 11.15Discussion on perceived strengths of technology 12.00Sandwich lunch 12.45Identification of key challenges, potential solutions, and timeline 13.45Discussion of commercialisation options and preferences 14.30Conclusions and action plan 15.00End of meeting

36. Discussion on Perceived Strengths of Technology

37. Agenda 10.00Welcome and introduction 10.15Presentation of Tarblaster technology, and Q&A 11.15Discussion on perceived strengths of technology 12.00Sandwich lunch 12.45Identification of key challenges, potential solutions, and timeline 13.45Discussion of commercialisation options and preferences 14.30Conclusions and action plan 15.00End of meeting

38. Identification of key challenges, potential solutions, and timeline

39. Discussion of commercialisation options and preferences

40. Conclusions and action plan

41. Contacts: Olav Ellingsen, Tarblaster AS Phone: +47 4840 0614 ind-o@online.no www.tarblaster.com Chris Dudgeon, OTM Consulting Ltd Phone: +44 1483 598000 chris.dudgeon@otmnet.com