1. High efficiency simultaneous grinding and drying of minerals and sludges Presentation for: 15 th Annual Conference on Markets for Industrial Minerals Oct. 22, 2003 David Dungate, V-P Marketing Dr. Sundar Narayan, V-P Research First American Scientific Corporation, Delta, BC

2. Presentation Outline Introduction to First American Scientific Corp. and the KDS Micronex™ Grinder-Dryer Description of KDS Grinder-Dryer Pure Grinding Applications Glass, Limestone, Gypsum, Gold Ore Grinding AND Drying Applications Zeolite, Glacial Clay, Coal and Paper Sludge Summary

3. About First American Founded in 1995, First American Scientific Corporation (FASC) is industrial equipment manufacturer and provider of innovative systems that increase profitability and reduce the environmental impact of materials processing. The KDS Micronex™, FASC’s patented grinder-dryer, efficiently and economically processes a wide variety of raw materials and wastes into fine, dry powders.

4. KDS stands for Kinetic Disintegration System. The KDS Micronex™ is an high volume grinder that dries WITHOUT needing any heat input. No heat is needed because the forces causing size reduction also dry the material. KDS Technology uses LESS total energy than conventional drying and grinding combined. Introduction to the KDS Micronex™ Technology

5. Soft rock minerals into fertilizers and industrial feedstocks –limestone, zeolite, phosphate rock, gypsum, and clay Specialty applications –glass, metallic mineral ores Biomass waste into fuel and fertilizer –paper sludge, manures, biosolids, wood waste and crop residues Agricultural and food waste processing into animal feeds –food processing waste, oyster shell, fish bones, bread waste, seaweed Target Applications

6. Plastics Rubber (unless cryogenically cooled) Metals (metallic ores okay) Municipal Solid Waste (because it contains the above materials) Description of the KDS Micronex™ Technology Materials that CANNOT be processed include:

7. Benefits of the KDS Micronex™  Simplifying on-site grinding and drying operations into a single compact, and easy-to-operate system that has low initial and operating costs  Creating high-quality, dry, virtually pathogen-free powders that have value as industrial feedstocks, fuels, fertilizers and animal feeds.  Reducing transportation and disposal costs by reducing moisture

8. Raw material is dropped into the throat of the mill The KDS MICRONEX TM Process Flow

9. An air-lock gate reduces dust and eliminates blow-back The KDS MICRONEX TM Process Flow

10. Material moves to the Torus and is subjected to repeated violent collisions with the spinning rotor and strike plates The KDS MICRONEX TM Process Flow

11.  Material is fractured and pathogen destruction occurs  Water vapor and water droplets are released during the fracturing process The KDS MICRONEX TM Process Flow

12. The classifier allows finished product to pass through to the cyclone and forces oversize particles to be reprocessed The KDS MICRONEX TM Process Flow Cyclone

13.  Air containing moisture is separated and removed from the system.  Processed solid material is output from the bottom of the cyclone The KDS MICRONEX TM Process Flow Product Moisture

14. 18’ (h) x 14’ (l) x 7’ (w) Footprint 1000 sq. ft. Weight 9000 lbs. Motors 250, 45, 2, 2, 2 HP Electrical 480V, 800 Amp High grade steel with some stainless components KDS MICRONEX™ Physical Characteristics

15. KDS Micronex™ Testing Site

16. KDS Micronex™ Process Process Results Input Output

17. KDS Micronex™ is the only machine known to us that can produce sub-micron glass powder, in bulk quantities. Powdered glass can be used as a replacement for silica fume cement an brick manufacture or as a filler for various other coatings. KDS Micronex™ Applications Container Glass

18. MaterialFeed Rate (kg/hr) Power (kW) Particle Size, d (microns) Broken Bottles 54315015 % < 1 100 % < 45 KDS Micronex™ Applications Container Glass

19. American limestone producer in Washington State uses KDS Micronex™ machine for limestone milling. Powdered Limestone is used in cement manufacturing and flue gas desulfurization (FGD). Client reports that the KDS Micronex is competitive with other size reduction methods. KDS Micronex™ Applications Limestone

20. MaterialProduction Rate (kg/hr) Power (kW) Particle Size (microns) Limestone3620150<75 FASC Client's Production Figures KDS Micronex™ Applications Limestone

21. ParameterHorizontal Ball Mill for Limestone KDS Micronex for Limestone Power Consumption 35 kWhr/ton KDS Micronex™ Applications Limestone

22. Gypsum plant in California used KDS Micronex for gypsum grinding. MaterialProduction Rate (kg/hr) Power (kW) Particle Size (microns) Gypsum226511275 (est) KDS Micronex™ Applications Gypsum

23. Patented process mechanically separates gold and avoids the use of toxic chemicals. Gold stays in KDS chamber when gold ore (quartzite) is ground to 30 microns. Waste rock is conveyed out of KDS. Research under way to improve operating efficiencies KDS Micronex™ Applications Gold Ore

24. MaterialFeed Rate (kg/hr) Feed MC (%) Power (kW) Prodn Rate (kg/hr) Out MC (%) Particle dia. (micron) Zeolite Glacial Clay Coal 1116 1025 2100 13 10 23 130 120 150 1067 930 1582 9 <1 8 32 45 63 Zeolite is used in fast drying concrete mixtures Glacial Clay is used in cosmetics, face creams. KDS Micronex™ Applications Zeolite, Glacial Clay, Coal

25. Two kinds of Paper Sludge – Primary/Secondary (P/S) Sludge and De-inking Sludge P/S Sludge comes from wastewater from paper pulp-making. Has bacteria. MC = 80 % Deinking sludge results from recycled paper manufacturing. It is 25% clay (kaolin). MC = 50 % KDS Micronex™ Applications Paper Sludge

26. Both kinds contain burnable fiber, but are too wet to burn on grate or in dust burners. Both can be directly applied as fertilizer, but this can lead to respiratory problems and water pollution. Paper Sludge is usually landfilled at $17-35/mT + $0.1/mT/km transportation cost. KDS Micronex™ Applications Paper Sludge Comparison

27. Drying sludge reduces landfill costs. Dried paper sludge can be used to make sound-absorbing material, cattle-bedding. Dried paper sludge is burnable in grate or dust burner. KDS Micronex™ Applications Paper Sludge Comparison

28. MaterialFeed Rate (kg/hr) Feed MC (%) Power (kW) Prodn Rate (kg/hr) Out MC (%) Drying Energy (kJ/kg) Deinking Sludge 12045111079726975 975 kJ/kg is only 42 % of the latent heat of water! Drum Dryer would need 3700 kJ/kg of water. KDS Micronex™ Applications Glacial Clay

29. FASC has processed Oyster Shells with excellent results. Fine, bone-dry powder is produced. Up to 3 TPH of possible. KDS Micronex™ Applications Oyster Shells

30.  Sub-micron glass powder can be made cheaply in large quantities  Limestone and gypsum can effectively be ground to solution grade  KDS dries deinking sludge with 74 % LESS energy than drum dryers  Chemical-free gold extraction system being commercialized KDS Micronex™ Applications Summary

31.  The KDS Micronex™ provides a simple, compact, low cost and easy-to-operate solution for fine grinding and drying.  Proven applications include sludge drying, grinding glass and soft-rock minerals and preparing biomass fuels for power production.  The machine can quickly pay for itself, by creating high-value end-products, reducing processing and disposal costs. KDS Micronex™ Summary

32. Reduction System For more information contact: First American Scientific Corp. Tel: +1-604-940-6220 Fax: +1-604-940-6221 Toll Free: 1-800-561-8656 Email: help@fasc.net Web: www.fasc.net