1. HIGH EFFICIENCY SOFTENING PROCESS (HESP ® ) FOR PURIFICATION OF FLOWBACK / PRODUCED WATERS FROM HYDRAULIC FRACKING OPERATIONS “ PURIFY WATER- PROTECT THE MOTHER EARTH” PREPARED BY KEN PANDYA AWTS, INC. 1817 TRIPLE CROWN LN PLANO, TX 75093 OFFICE: 972 733 4404 EMAIL: awtsusa@aol.comawtsusa@aol.com SEPTEMBER 23, 2013

2. WHAT IS HESP ® ? HESP ® IS DESIGNED TO PRECIPITATE AND REMOVE SCALE-CAUSING MINERALS SUCH AS CA, MG, BA, SR, SILICA AND METALS UP TO 99.9% HESP ® HAS BEEN TESTED SUCCESSFULLY ON PRODUCED WATERS CONTAINING UP TO 50,000 PPM HARDNESS, AMONG OTHER SCALE CAUSING ELEMENTS. HESP ® PROCESS USES LIME, SODA ASH, CAUSTIC AND SPECIAL COAGULATION AID CHEMICALS, OPERATES AT HIGH-PH. HESP ® EFFLUENT IS IDEALLY SUITED FOR RECYCLE OR SENDING TO THERMAL EVAPORATOR / CRYSTALLIZER /DRYER HESP ® ALLOWS USE OF WASTE CAUSTIC, CO2 FROM POWER PLANT EXHAUST HESP ® DOES NOT USE ELECTRICITY (OTHER THAN MIXING, PUMPING), ION EXCHANGE RESINS OR MEMBRANE TECHNOLOGIES

3. PANDYA PATENT 8,147,696 HIGH EFFICIENCY SOFTENING PROCESS (HESP ® )

4. WHY HESP ® ? ALLOWS ONSITE OR CENTRALIZED TREATMENT OF FLOWBACK WATER AND PRODUCED WATER FROM HYDRAULIC FRACKING OPERATIONS ELIMINATE LONG DISTANCE TRUCKING AND DEEPWELL INJECTION OF FLOWBACK WATER AND PRODUCED WATER MOST OF THE CONVENTIONAL TECHNOLOGIES PROVIDE ONLY A PARTIAL SOLUTION. WITH HESP ® PROCESS IT IS POSSIBLE TO COMPLETELY RECOVER PURE WATER. EVEN CONCENTRATED SALT STREAM CAN BE VALUABLE AT $1.50 / BBL, HESP ® TECHNOLOGY IS COST COMPETITIVE WITH TRUCKING/DEEPWELL INJECTION COSTS.

5. COMPARISON OF WATER ANALYSIS FROM VARIOUS SOURCES(1) PARAMETER, MG/L CITY WATER (POTABLE WATER) TYPICAL POTW EFFLUENT LIMITS SEA WATERFLOWBACK WATER PRODUCED WATER SOURCECITY OF GRAND PRAIRIE, TEXAS TYPICAL ANALYSIS FORT WORTHCITY OF GRAND PRAIRIE Calcium27400350015,932 Magnesium3.512624702,170 Barium0.02 12<5 StrontiumNR13380616 Sodium55.410,5561400050705 PotassiumNR380 629 Bicarbonate80140580- Sulfate67.82,649200822 Chloride34.418,98026,800103,222 Fluoride0.75102 Nitrate0.6115.510<100

6. COMPARISON OF WATER ANALYSIS FROM VARIOUS SOURCES(2) PARAMETER, MG/L CITY WATER (POTABLE WATER) TYPICAL POTW EFF LIMITS SEA WATERFLOWBACK WATER PRODUCED WATER SilicaNR16134 Iron0.260.00327<5 Manganese0.0010.0004NR Arsenic0.00240.20.002NR1.36 TOCNR<103051 O&GNR200<12128 pH7.95.5-11.08.0-8.27.53.96 Conductivity44465,000?94,000314,300 TDS Calculated26133,000-45,00046,400174,300 TSS131 TurbidityNR

7. CURRENT PRACTICES FOR MANAGING FLOWBACK WATER AND PRODUCED WATER IN STATES SUCH AS TEXAS WIDELY ACCEPTED PRACTICE IS TO TRUCK WASTEWATER TO REMOTE SITES AND DEEPWELL INJECTION IN STATES SUCH AS PENNSYLVANIA AS MUCH AS 80% OF FLOWBACK WATER IS BEING RECYCLED AFTER MARGINAL TREATMENT

8. CONVENTIONAL PRETREATMENT TECHNOLOGIES FOR WASTEWATER TREATMENT (1) API TYPE OILY WATER SEPARATORS – MOST WIDELY USED FOR REMOVAL OF OIL. TYPICALLY 90-95% REMOVAL OF OIL. – NOT EFFECTIVE FOR REMOVAL OF EMULSIFIED OR HEAVY SUSPENDED SOLIDS DISSOLVED AIR FLOATATION (DAF) – MOST WIDELY USED FOR REMOVAL OF LIGHT OIL, LIGHT SUSPENDED SOLIDS. – NOT EFFECTIVE FOR REMOVAL OF EMULSIFIED OIL OR HEAVY LOAD OF SUSPENDED SOLIDS ELECTRO-COAGULATION – MOST WIDELY USED FOR OXIDATION OF OIL, GREASE, ORGANICS AND METALS, DISINFECTION. MAJOR USER OF ELECTRICITY. LABOR INTENSIVE – ONLY PARTIAL REMOVAL OF SCALE-CAUSING MINERALS (E.G. CA, MG, BA, SR) VACUUM FILTERS/BELT FILTER/ FILTER PRESS/ PLEATED FILTER PRESS – MOST OF THESE TECHNOLOGIES REQUIRE PRE-COAT MATERIALS, WHICH MEANS MANAGEMENT OF MORE SOLIDS MEDIA FILTERS, CARTRIDGE FILTERS, BAG FILTERS – ONLY EFFECTIVE FOR LOW LEVELS OF SUSPENDED SOLIDS

9. CONVENTIONAL PRETREATMENT TECHNOLOGIES FOR WASTEWATER TREATMENT (2) INCLINED PLATE CLARIFIERS, TUBE SETTLERS – EFFECTIVE FOR REMOVAL OF SUSPENDED SOLIDS INCLUDING PRECIPITATED SOLIDS. CONVENTIONAL CHEMICAL PRECIPITATORS INCLUDING LIME SOFTENING CLARIFIERS – EFFECTIVE FOR LOW LEVELS OF HARDNESS (TYPICALLY LESS THAN 1250 PPM), REMOVAL OF SUSPENDED SOLIDS, DISINFECTION. INEFFECTIVE FOR TREATMENT OF EXTREMELY HIGH LEVELS OF HARDNESS WHICH IS TYPICAL FOR FLOWBACK WATER AND PRODUCED WATER FROM FRACKING OPERATIONS – MODERATELY EXPENSIVE, COMPETES WITH ELECTRO-COAGULATION PROCESS, CAN BE LABOR INTENSIVE ULTRAFILTRATION, MICRO FILTRATION – EFFECTIVE AS POLISHING FILTERS, FOR REMOVAL OF MICROSCOPIC LEVEL OF CONTAMINANTS. WILL NOT REMOVE DISSOLVED IONIZED SALTS – HIGH CAPITAL COST, HIGH OPERATING COST, LABOR INTENSIVE REVERSE OSMOSIS MEMBRANE SYSTEMS – REQUIRES EXTREMELY CAREFULLY DESIGNED PRETREATMENT SYSTEMS – TECHNOLOGY LIMITED TO ABOUT 45000 MG/L TOTAL DISSOLVED SOLIDS IN FEED – HIGH CAPITAL COST, HIGH USE OF ELECTRICAL POWER, HIGH OPERATING COST, LABOR INTENSIVE

10. CONVENTIONAL PRETREATMENT TECHNOLOGIES FOR WASTEWATER TREATMENT (3) EVAPORATORS – EFFECTIVE FOR CONCENTRATION OF PROPERLY PRE-TREATED, HIGHLY FILTERED STREAMS WITH DISSOLVED SALTS AND LOW LEVELS OF ORGANICS. – WORKS WELL FOR HIGH LEVELS OF DISSOLVED SOLIDS RANGING FROM 40,000 PPM TO 150,000 PPM. – HIGH LEVELS OF HARDNESS OR SUSPENDED SOLIDS OR OIL OR ORGANICS IN THE FEEDWATER CAN QUICKLY LEAD TO SCALING AND FOULING, LEADING TO COSTLY MAINTENANCE AND FREQUENT SHUTDOWNS. – DISTILLED WATER CAN BE RECYCLED AND REUSED. IF FEEDWATER IS NOT COMPLETELY SOFTENED, REJECT (CONCENTRATED STREAM) MAY HAVE TO BE SENT TO DEEPWELL INJECTION – HIGH CAPITAL COST, HIGH ELECTRICAL POWER, HIGH O&M COST DRYERS – EFFECTIVE FOR RECOVERING DRY SALT FROM SEMI-DRY FILTER CAKE – RELATIVELY SIMPLE TO OPERATE – VAPOR CAN BE CONDENSED AND RECYCLED AS PURE WATER STREAM – MODERATE CAPITAL COST, MODERATE OPERATING COST

11. HESP ® BENCH TESTS, CITY OF GRAND PRAIRIE THIS PICTURE SHOWS JAR TEST EQUIPMENT. ON THE RIGHT IS THE PRODUCED WATER SAMPLE, AND ON THE LEFT IS THE CHEMICAL REACTOR. OBSERVE WHITE COLOR PRECIPITATE, MOSTLY CALCIUM AND MAGNESIUM CARBONATE. ON TOP WE CAN SEE CLEAR WATER

12. HESP ® BENCH TESTS, CITY OF GRAND PRAIRIE THE PICTURE ON TOP SHOWS RAW PRODUCED WATER. THIS SAMPLE HAD LOT OF OIL, GREASE AND PETROLEUM PRODUCTS, IN ADDITION TO NEARLY 50,000 PPM OF HARDNESS AND OVER 150,000 PPM TOTAL DISSOLVED SOLIDS THE PICTURE ON THE BOTTOM SHOWS HESP TREATED PRODUCED WATER. THE CLARIFIED WATER (ON TOP) CONTAINED LESS THAN 35 PPM OF HARDNESS. MOST OF THE CALCIUM, MAGNESIUM AND STRONTIUM SALTS WERE PRECIPITATED, AND SETTLED ON BOTTOM.

13. HESP ® TEST RESULTS, PRODUCED WATER FROM CITY OF GRAND PRAIRIE PARAMETERBEFOREAFTER% REDUCTION CALCIUM, PPM CACO3 39,8323999.9 % MAGNESIUM, PPM CACO3 890118897.9 % STRONTIUM616<599.2 % SILICA, mg/l341167.6 % FLUORIDE, mg/l10226.474.1 % ARSENIC, mg/l1.360.1375.7 % pH3.9610.28 CONDUCTIVITY, mmho 314,300358,100- TDS, mg/l174,300133,33023.5 %

14. HESP ® PERFORMANCE: PRODUCED WATER BEFORE AND AFTER

15. HESP ® PROCESS: FROM BENCH TESTS TO COMMERCIALIZATION (1) WHAT IS NEEDED? PHASE-1: 10 GPM PILOT DEMONSTRATION TESTS – CONTRACTUAL RELATIONSHIP WITH A MULTI-NATIONAL OIL AND GAS PRODUCTION COMPANY – ESTABLISH BASIS OF DESIGN: LAB ANALYSIS OF WASTEWATER STREAMS – PILOT EQUIPMENT UTILIZES CONVENTIONAL COMPONENTS, READILY AVAILABLE IN MARKET. – 4-6 WEEKS TO DELIVER EQUIPMENT TO THE SITE, ONE WEEK FOR ASSEMBLY – ESTIMATE $100,000 EQUIPMENT PURCHASE COST – ONE MONTH PILOT TESTS:$25,000 FOR OPERATOR, PART- TIME CHEMIST, LAB WORK AND OPERATING CHEMICALS

16. HESP ® PROCESS: FROM PILOT TESTS TO COMMERCIALIZATION (2) PHASE-2: FULL SCALE SYSTEM – FULL SCALE EQUIPMENT UTILIZES CONVENTIONAL COMPONENTS. – EXAMPLE: 5000 BBL/DAY CENTRALIZED FACILITY 4-6 WEEKS FOR ENGINEERING, 12-16 WEEKS TO DELIVER EQUIPMENT TO THE SITE, 4 WEEKS FOR INSTALLATION SITE SPECIFIC PREFERENCE: TRUCKING LIQUID WASTE TO WASTEWATER TREATMENT SITE, OR TRANSPORT VIA PIPE LINES? ESTIMATE $2 MILLIONS EQUIPMENT PURCHASE COST, FOUR FULL-TIME OPERATORS, ONE FULL TIME CHEMIST, $25,000 INVESTMENT IN LAB EQUIPMENT

17. SUMMARY WITH HESP PROCESS, WE CAN MINIMIZE FRESH WATER MAKEUP WITH HESP ® PROCESS, IT IS POSSIBLE TO ELIMINATE LONG DISTANCE TRUCKING OR DEEP WELL INJECTION HESP ® PROCESS CAN BE IMPLEMENTED BY EMPLOYING CONVENTIONAL EQUIPMENT SUCH AS CLARIFIERS, FILTERS WITH HESP ® NO MORE SCALING OR FOULING OF PROCESS EQUIPMENT WITH HESP ® PRETREATMENT, OTHER CONCENTRATION PROCESSES (E.G. RO, EVAPORATORS) BECOME MUCH MORE EFFICIENT. BY DROPPING OUT SOLIDS IN HESP ® PRETREATMENT, DRIED SOLIDS AND CONCENTRATED SALT STREAMS CAN BE RECYCLED. BENCH TESTS HAVE BEEN DEMONSTRATED. READY FOR PILOT TESTING AND COMMERCIAL OPERATION