1. TARBLASTER AS TARBLASTER AS is a Norwegian company who in cooperation with Sintef Energy Research AS (www.sintef.no) has developed a technology for ”dry” recovery of oil from oil sand by a patented filed process called TarBlaster. www.sintef.no The company has the following contacts points: Flor ø office: Kleiva 20, 6900 Flor ø, NORWAY Oslo office: Oslo Innovation Center, Gaustadall è en 21, 0349 OSLO, NORWAY Olav Ellingsen: Tel. +47 57 74 12 77, cellular +47 48 40 06 14 40, e-mail: ind-o@online.noind-o@online.no Morten Borch: Tel. +47 92 01 43 48, fax. +47 67 14 91 50, e-mail: mborch@online.nomborch@online.no Bjarte S ø reb ø Ellingsen: Tel. +47 48 40 05 51, fax. +47 22 60 44 27, e-mail: bse@nsn.nobse@nsn.no Org.no: NO 990 925 526, Bank account: 6546.05.26277, Swift Code: NDEANOKK, Iban: NO3865460526277

2. SINTEF ENERGY RESEARCH AS, Trondheim, Norway Professor Jens Hetland Ph.D. Jørn Bakken NYHAVNA MEKANISKE AS Engineer Stig Fuglestad KGD Development AS CEO engineer Roger Gale Professor Finn Drangsholt R&D PARTNERS

3. OIL SAND Oil sands are a combination of clay, sand, water, and bitumen. They are heavy, black and viscous, but can be mined and processed to extract the oil- rich bitumen, which is then refined into oil. While the energy properties and potential of oil sands have been recognized for centuries, there had been no significant attempt to develop the resource until the mid 1960s. Oil sands are currently found in about 70 countries, including Canada, the former Soviet Union, Venezuela, Cuba, Indonesia, Brazil, Jordan, Madagascar, Trinidad, Colombia, Albania, Rumania, Spain, Portugal, Nigeria, and Argentina. The United States contains scattered deposits of oil sands, mainly in Utah, Kentucky, Kansas, Missouri, Oklahoma, California, and New Mexico. Three quarters of the world's reserves are located in two regions: Venezuela and the Athabasca region of northern Alberta and Saskatchewan in Canada. Oil sands represent as much as 66% of the world's total oil reserves, with at least 1.7 trillion barrels in the Canadian Athabasca tar sands and 1.8 trillion barrels in the Venezuelan Orinoco oil sands, compared to 1.75 trillion barrels of conventional oil, mostly located in Saudi Arabia and other Middle-Eastern countries.

4. TARBLASTER ANIMATION TECHNOLOGY ROAD MAP PRESENTATION OIL SANDS KICK INTO HIGHER GEAR http://www.memagazine.org/backissues/membersonly/december98/features/oi lsand/oilsand.html http://www.memagazine.org/backissues/membersonly/december98/features/oi lsand/oilsand.html Canada’s Oil and Gas Entrepreneurs http://www.sepac.ca/http://www.sepac.ca/ CANADIAN ASSOCIATION OF PETROLEUM PRODUCERS http://www.capp.ca/Pages/default.aspx http://www.capp.ca/Pages/default.aspx WHAT IS HEAVY OIL http://www.lloydminsterheavyoil.com/whatislaunch.htmhttp://www.lloydminsterheavyoil.com/whatislaunch.htm OIL SANDS COMPANIES http://oilsands.infomine.com/companiesproperties/http://oilsands.infomine.com/companiesproperties/ OIL SANDS REPORTS- CHOPS STUDY http://www.energy.gov.ab.ca/OilSands/1189.asp http://www.energy.gov.ab.ca/OilSands/1189.asp ALBERTA’S HEAVY OIL AND OIL SANDS http://www.energy.gov.ab.ca/OilSands/1189.asp http://www.energy.gov.ab.ca/OilSands/1189.asp OIL SAND OPERATION http://seattletimes.nwsource.com/flatpages/businesstechnology/albertasoilsand s.html http://seattletimes.nwsource.com/flatpages/businesstechnology/albertasoilsand s.html OIL SANDS PRESENTATION http://www.petroleumequities.com/ITOHOS2005.pdfhttp://www.petroleumequities.com/ITOHOS2005.pdf http://www.theglobeandmail.com/servlet/story/RTGAM.20081209.wtailings09/EmailBNStory /National/home POLUTED TAR SAND PONDS LEAKING http://www.theglobeandmail.com/servlet/story/RTGAM.20081209.wtailings09/EmailBNStory /National/home http://www.theglobeandmail.com/servlet/story/RTGAM.20081209.wtailings09/EmailBNStory /National/home http://www.theglobeandmail.com/servlet/story/RTGAM.20081209.wtailings09/EmailBNStory /National/homeLINKS

5. NEWS

6. DIFFERENT QUALITIES OF OIL SOURCESAPI (*) Light conventional oil:31-45 Medium heavy oil: 22-30 Heavy oil: 10-22 Extra heavy oil<10 Bitumen - oil from Tar sand after extraction 8-12 In addition huge amounts of oil shale containing non liquid hydro carbons. After extraction of the shale oil, it will have an API of about 25-30 API. (*) American Petroleum Institute measure of specific gravity. In general: As lighter oil as higher API.

7. CRUDE OIL PRICES VS API (*) API 8API 12API 25API 40API 38 (*) American Petroleum Institute measure of specific gravity. In general: As lighter oil as higher API. Prices pr 30. aug-2007

8. STEPS TO INCREASE VALUE OF TAR SAND (*) Blending Cost (adding light oil) Upgrading API 10-12API 20-22API 45-49 $14 $28 (*) Source: Corporate presentation Syneco.com Oil Price

9.  Conventional oil reserves and new discoveries (supply) to replace them are rapidly declining  Global demand for the supply and production of oil will continue to increase despite lower replacement of reserves  Heavy oil will increasingly need to be processed (upgraded) into synthetic crude to replace shrinking conventional supply Source: Office of Naval Petroleum and Oil Shale Reserves; U.S. Dept of Energy Source: EIA and Raymond James Estimates & Analysis GLOBAL CONVENTIAL OIL SUPPLIES AND DEMAND MARKET AND DEMAND MARKET

10. OIL SAND Natural occurring deposits of a mixture of heavy oil and sand Natural occurring deposits of a mixture of heavy oil and sand World’s greatest deposits (85%) in Alberta, Canada World’s greatest deposits (85%) in Alberta, Canada 10% < 75 m depth, surface mining 10% < 75 m depth, surface mining

11. LOCATION OF CANADA TAR SAND DEPOSITS

12. ALBERTA OIL SAND PROJECTS

13. STATISTIC FOR TAR SAND 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

14. OIL SAND MINING In oil sands mining, a mix of oil and sand is removed from just below the surface using trucks and shovels.

15. THE MINING AND UPGRADING PROCESS

16. UPGRADING/CRACKING EXISTING EXTRACTION TECHNOLOGY The extracted oil is upgraded to a synthetic crude prior to refining

17. PROBLEMS CONNECTED 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

18. PROBLEMS CONNECTED EXISTING TECHNOLOGY

19. THE BENEFITS OF THE TARBLASTER TECHNOLOGY Low energy consumption Self-sustained with energy by combustion of low value energy (the most heavy part of the oil) Reduced CO2 emission No water consumption Extraction and upgrading oil sand in one operation Reduce capital investments about 80% Easy to scale up Increased value of oil by: Increased API FROM 8 to 25 (*) Reduce sulphur and metal content (*) Proved API 18, but believe it will be possible to reach API 25 by an add on process

20. TARBLASTER SIMPLIFIED FLOW DIAGRAM

21. TARBLASTER LOGISTICS

22. TEST UNIT First test June 2008 Test rig ready for testing at SINTEF ENERGY RESEARCH AS, Trondheim

23. EXPECTED RESULTS MATERIALINITIAL API UPGRADED API COMMENTS Atabasca tar sand (bitumen) 8-1018-251 w% coke in tailings Temperature 350- 400 C Pressure 1,1 bar Sulphur reduction 50-60% Metal reduction 90- 95%

24. FROM OIL SAND TO OIL

25. FEASIBILITY OF THE TARBLASTER TECHNOLOGY Unique low temperature and pressure thermo mechanical process Process equipment known to the industry Mining operation as for existing technology

26. Incorporated by 88 shareholders from Norway, England, Sweden, Germany, Switzerland, USA and Canada Number of issued shares 11.000.000 CEO Olav Ellingsen (www.industrikontakt.com)www.industrikontakt.com The company subcontracts its other needs such as accounting, auditing, financial advisors and legal assistance from case to case. Board of Directors: Chairman, lawyer Morten Borch, Oslo Engineer, Steve Kent, London Member, marketing investigator Bjarte S. Ellingsen, Oslo Member, engineer Olav Ellingsen, Florø TARBLASTER AS