McBride 2011

his document describes a plan to ancillary build businesses hour per megaWatts 36-60 a to complement augment and Preface & Document Outline & Document Preface T thermal electricity generating plantthat use sustainable, renewable will biomass fuel, sited on land owned by ecoTECH Energy Group near McBride, British Columbia. The businesses are in produce, the sustainable fresh indoor, aquaculture and land-based power station and the silviculture ancillary businesses are food sectors. being developed fish The by ecoTECH Incorporated, (“EEGI”) a Nevada corporation, Energy a Group fully reporting public company, traded on the rules. under US SEC exchange OTC:BB ecoTECH subsidiary ecoTECH Canada Inc Energy is the developer in Group the region and station. power the of owner majority the be will Management, training and technologies be will provided by EEGI and its affiliates described herein.

he statements made in contain this forward-looking presentationstatements that involve may risks and uncertainties, which may prevent T expected future results from being achieved. Forward- looking statements include, statement without that may predict, forecast, indicate limitation,or imply any future results, performance or achievements, and may contain the words “believe”, “estimate”, “project”, “anticipate”, “will “expect”, be”, “will continue”,likely “will result” or similar looking words or statements phrases. involve Forward- whichcausemay actual results differ risksto materially from and uncertainties, the forward-looking statements. The Company cautions that actual future performance could be affected by of success a the factors, numbercompetitive change, technological of factors, to ability includingfuture our programs, development and research competition, profitable, become and operations our fund alliances, our securing ability and corporate maintaining to increase our customer base, the or servicesour customers thatwill introducewe and the benefitsend that users will receive from these services; the impact of entering property, new intellectual of markets, strength the marketproducts, Company’s acceptance of the financingreliance capability, on subcontractors and key personnel and other risks detailed from time-to-timeinformation in other and statements financial Company’s the are statements Forward-looking shareholders. to provided made as of and the the date hereof, Company disclaims any intention and has no obligation orexcept responsibility, as required by law, whether statements, forward-looking as a result future of tonew Therefore, update otherwise. or or events, revisefuture information, any and events results from whatmay vary substantially the foresees. currently Company Reader Advisoryand Disclaimer Document Contents

Introduction: The Participants & Project Background page 2 The Corporation of McBride & the McBride eco-Industrial Park page 3 About McBride page 4 The new energy source that empowers the project page 5 The emancipation of a community; businesses of the Park page 6 Location maps page 8 Site data page 10 History of the site page 14 The Combined Heat and Power Station Fuel page 16 Type, structure and system page 17 Scope of work for construction & development page 19 Shaping electricity delivery page 20 Super efficiency of systems page 24 World class contract operators page 26 Training for all of the Park's businesses page 27 ecoGROW total natural food circle of sustainable businesses page 30 Hydroponic Horticulture business page 33 Performance forecasts page 38 Capital requirements page 40 Financial forecasts page 42 Aquaculture business page 43 Intensive Recirculating Aquaculture System explained page 44 Planned food fish species page 50 Processing & productivity page 58 Construction budget page 59 Profitability forecasts by species page 60 Silviculture Project page 63 Greenhouse types page 67 HydroNov projects to date page 68 Contacts page 69

© The logos, images, technical data and motifs are the property, intellectual and actual, of the ecoTECH Energy Group, HydroNov Inc. and Dr Nick Savidov: all rights reserved. This document was created on behalf of the Project by ecoTECH Energy Group Incorporated and is copyright EEGI, and C. Victor Hall.

Page 1 McBride 2011

Introduction: The Participants & Project Background

he objective of this project is to provide “green” power for the Robson Valley, sustainable electricity for the BC Hydro power grid, healthy fresh grown food products for sale to Tlocal and regional British Columbia city populations; to provide employment and sustainable income for the residents of McBride and the central Robson Valley; to reduce the carbon footprint of importation of food from other states and countries (e.g. Mexico, USA) and to replace now defunct former forest products operations with a trio of dynamic new enterprises. The site is at the old Lamming Mills Village, derelict for many years. Rezoning by the Regional District of Fraser Fort George is under review, but we are assured that this community development will have no problems in obtaining whichever zoning or permits are deemed pertinent. The driving initiative for the programs described herein is the planned power station complex that will share the site. The power station, to be built by ecoTECH Energy Group, is set to produce up to 60 megaWatts per hour of power in winter conditions and less during the months of high mountain drainage water run-off (when run-of-river independent power producers produce the most under a power line sharing and delivery shaping agreement), by using renewable forestry derived fuel, for thermal conversion to combustion gas -derived energy. The thermal energy is conveyed via a custom boiler and site hot oil circulatory system from which part is utilized in a steam on steam turbine generation hall of the power station. The mean annualized delivery from the power station will average 36 megaWatts per hour, using combined cycle steam systems and fuelled by forestry-derived fuel. Generation is scheduled to commence construction eighteen months after site ground-breaking, scheduled for Spring 2011, which has been moved ahead to provide local energy to the site businesses as soon as possible. Thermal electricity power generation by-produces heat in the process of generating electricity. The heat that is surplus to power generation is to be utilized by the proposed businesses for production year round, which can also consume some of the exhaust carbon dioxide in the process of transpiration. During the construction phase, one of the large ecoPHASER heat conversion reactors will be bought on line ahead of installation of the power station, so that the planned ancillary businesses can be brought to early operation. Power Station Operation & Management: The power station will be operated and managed on a 24 hour, 365 days per year basis, by North American Energy Services Inc. ( www.naes.com ). N.A.E.S. is the world’s largest contract operations manager with over 27,000 MW of generation capacity under operation. The three sustainable industry businesses planned for the site are: • A HydroNov hydroponic produce greenhouse. • A HydroNov indoor aquaculture fish production facility. • A silviculture (seedling propagation) greenhouse. All the businesses will provide training curricula in arrangements with Caledonia College, and the fuel for the combined heat and power (CHP) facility is to be supplied by the McBride Community Forest operation, building on the expertise from their forest husbandry. ecoTECH is the official developer for HydroNov Inc. ( www.hydronov.com ) for projects in Western Canada involving hydroponic cultivation and aquaculture.

Page 2 The McBride eco-Industrial Park

he site for the McBride Ecological Industries and Sustainable Production Park is 203 km (126 miles) Southeast of the major transportation hub and Northern Capital of British TColumbia, Prince George. The site is 180 kilometres (112 miles) Northwest of Jasper, Alberta, at map co-ordinates W120o 16’20.64” - W120o 15’28.8” and on the longitudinal line N53o 20’28.32” at its centre.

Background:

The Corporation of the Village of McBride, British Columbia

ounded in 1912 as an “end of steel” railhead town as the Canadian National (successor to Grand Trunk Pacific Railway, Fthe pioneering developer then) line was pushed through the Robson Valley, from Jasper to Fort (now Prince) George and on to Prince Rupert Port, the area originally called “the Flats” at Mile 90 became the Grand Trunk’s planned divisional staging point due to its strategic location between Fort George and Edson, Alberta. The townsite had ample water supplies and large flat area for the installation of a railway marshalling yard and roundhouse.

Mile 90 became McBride in honour of then British Columbia Premier, Sir Richard McBride, who led the Province of British Columbia from 1903 to 1915. McBride Village official birth- day was 1st July 1913. The Trans Canada Extension (Yellowhead Route) Highway 16 was eventually built in 1968, making McBride a truly inter modal hub for the Robson Valley. Situated in the Robson Valley amid the Cariboo and the Rocky Mountains, McBride is lo- cated 211 km east of Prince George, British Columbia and 178 km west of Jasper, Alberta on Highway 16 (the recently declared ‘Asia-Pacific Transportation and Manufacturing Corridor’ between the port of Prince Rupert, British Columbia and Edmonton, Alberta). McBride, the economic centre of the Robson Valley , is a vibrant, rural community. Forestry, agriculture, tourism and small business form the economic base. The McBride Eco-industrial Park is set to introduce industries that embody the skill sets already in practice in those sec- tors, but with an emphasis on ecology and sustainability. Strategic alliances are in place with higher education colleges (staff training) and local and provincial government offices and the cabinet ministers and local officials responsible for all aspects and permitting required for the project. McBride has a Community Forest corporation and an Economic Development office. Any diligence required for this project for local and permitting/site reference confirmation of the data herein should be directed to Margaret Graine STI PFP Economic Development Officer McBride, British Columbia, CANADA telephone: 1-877-569-7556 e-mail: [email protected]

Page 3 McBride 2011

About McBride:

Facts & Figures Village of McBride:

Population: 740 & growing Robson Valley: > 2,500 elevation: 722 m / 2,350’ latitude: 53 degrees 22 minutes N longitude: 120 degrees 15 minutes W average annual rainfall: 490 mm / 19.5” average annual snowfall: 189 cm / 6’ January average temps: max: -3.5 oC, 26 oF min: -11 oC, 12 oF July average temps: max: 22 oC, 72 oF min: 7.8 oC, 46 oF economic base: forestry, agriculture, tourism

Site of McBride eco-Industrial Park Reclosure switches at the ecoTECH Lamming Mills site for community islanding. When a power outage on the Robson Valley feeder line occurs, the switch isolates the McBride community for 20 kilometres of Highway 16 from this northwest switch to the southeast isolator at Holmes River. In the interim (until the IPP facility is on line, BC Hydro has installed mobile bio-diesel generators to service the “island”.

Page 4 Energy: the Combined Heat and Power Station

he CHP station is planned as a 24 hour, 365 days per year generation facility, with the ability, due to its sustainable, renewable fuel source, to provide full time “firm” Tenergy at variable rates, due to its modular design and variable delivery electronics. This proprietary system configuration, which embodies the unique ecoPHASER solid fuel sublimation reactor and sonic standing wave (SSW) pulsed oxidation thermal energy delivery module, allows for the variable output needed in the Robson Valley in accord with the other green energy run-of-the-river (“ROR”) powerhouses to be built by affiliated independent power producers (“IPPs”) that will share the main delivery electricity transmission lines to Jackman Flats (Valemount) (85 kilometres southeast of McBride, close to headwaters divergence of the Fraser River - running NE in the Robson Valley) and the North Thompson River (running SW from the Valemount region).

NW reclosure switch at our Lamming Our Company is supporting the concept of another two way Mills site: installed October 2010 to transmission line to run NE from McBride to BC Hydro’s major facilitate islanding of power to pro- Williston (Prince George) hub, which we would like to see tect McBride area: completed in the next ten years to provide a looped, integrated (20 km + radials of Highway 16) system for the entire region northeast of Kamloops, BC (The Robson, Canoe, Thompson and northern Fraser Valleys).

The nature of ROR is that it peaks during mountain snow meltdown periods (“freshet”), and the flows wane as winter freeze-up takes hold. Two major stream systems with active IPP development under way in the Robson Valley have the potential of delivering over 100 megawatts per hour electrical power (100 MWe) to the BC Hydro Valemount hub.

In order to deliver a balanced amount of power to enable BC Hydro to meet load requirements throughout the regional section of the grid, we have embarked upon a plan in association with our fellow IPPs to provide maximum output from our generators during the peak demand freeze-up months, scaling back to minimums in the freshet and allowing us to bring our firm electric power output up and down accordingly.

The following pages describe how we will do this.

However, the winter demand plan has caused a rethink of our equipment requirements and a revamp of our previously published forecasts from the resulting increased cost of generation capacity capital equipment to meet demand, although the annual averaged output is little changed. Fuel availability for a guaranteed 30 year operation limits output to peak at 60 MWe/hour.

A further moderator is the supply of fuel, timing of delivery and the cost of carrying fuel inventories as we build reserves during the better forestry harvest months, which roughly coincide with the freshet, in readiness for the maximum output times. Winter will also put higher demands on our site businesses heating requirements, so those calculations are included in our rather complex model that has evolved from including these factors. We have included mean sunshine hours tabulation in the greenhouses’ requirements, along with the lighting make-up necessary for those operations.

Page 5 McBride 2011

McBride Eco-Industrial Park The Emancipation of a Community Why cBride, British Columbia has had its troubles. In 2008, with the entire community economy dependent on a now-closed veneer mill and two sawmills, the Community Mdecided to adopt a plan developed by ecoTECH to re-vitalize and diversify the economy of the region. With a determination to never again rely on single-source employment, McBride stands ready to operate the first and most innovative eco-industrial mall and energy park in Canada. The plan calls for the build and deployment of an ecoTECH combined heat and power generating station that will deliver 5 megaWatts of continuous (firm) electrical power to the British Columbia electricity grid, whilst providing electrical and heat energy to 3 diverse heat and power energy usage businesses in the industrial estate. These are the “starter” enterprises for the project that expect to be phased into secondary and perhaps tertiary expansion modules as they develop business and market maturity.

Although a 5 MW biomass fuelled energy plant (when viewed alone and without the profits forecast for the other businesses), has marginal viability at prevailing tariffs, the Company has a fully developed plan to provide “firm” electricity (24/7 power) to the entire Robson Valley with sale of energy into the BC Hydro province wide grid system. Where The site for the McBride Eco-Industrial Park is located approximately 8 kilometres (5 miles) northwest of the centre of the village of McBride, British Columbia, Canada. McBride, despite it’s recent downturn, continues to be the commercial, government, ranching, agricultural and tourism centre of the stunningly beautiful Robson Valley, that domiciles the famous Fraser River, from near its source in the Rocky Mountains. McBride lies in the southern Rocky Mountain Trench with the mighty Fraser flowing northwest via McBride to Prince George, British Columbia, before making a U-turn south to Vancouver, which is 700 kilometres by road from the site. The Robson Valley is a geographic region of the Canadian province of British Columbia, comprising the section of the Rocky Mountain Trench, flanked on its east by the Rocky Mountains and on the west by the Cariboo Mountains, that lies southeast of the city of Prince George. The Valley hosting the Fraser River runs southeast from Prince George to the Yellowhead Pass. When The project has the blessing and support of the Village of McBride, the Fraser-Fort George Regional District and the Northern Development Initiative Trust. Everyone involved wishes to start development immediately. What The Project comprises a cluster of businesses, with energy as the common link. Each is in a separate market sector, each provides many employment opportunities in a variety of skill- sets and for semi and unskilled workers. Each promises longevity of operation, very good profit margins and a healthily attractive return on investment. Aside from the exporting of power for sale to the BC grid, there are two businesses that have long-time proven performance in the hydroponic and aquaculture food production industry sectors, and one that services a climate-change and pollution reduction awareness-driven, long term opportunity, for “greening” fossil-fuel power plants around the world. These businesses are described in the table on the next page (upper section).

Page 6 SERVICES (products) from BUSINESS DESCRIPTION OF OPERATIONS ecoTECH CHP PLANT

ecoTECH W2E (Wastes to Energy) Provides Sustainable ("Green") firm electricity to BC Hydro Combined Heat & Power (CHP) and firm electricity, process heat and gases to on-site Generating Plant businesses.

"ecoGROW" Hydroponic Mixed Crop Essentially, a proven HydroNov "technology franchise", this facility will provide fresh produce to distribution hubs CARBON Greenhouse, technology and training by HEAT POWER in the cities of Prince George and Kamloops BC (with all DIOXIDE HydroNov, Quebec centres in-between) and Jasper, Alberta. Essentially, a proven HydroNov "technology franchise", "ecoGROW" Recirculating Water Raceway this facility will provide fresh whole fish and fillets to distribution hubs in the cities of Prince George and aquaculture facility: technology and HEAT POWER Kamloops BC (with all centres in-between) and Jasper, training by HydroNov, Quebec Alberta; (also major brand national fish wholesalers for fillets). Uses Einstein's heat exchanger technology to utilize the by- ecoTECH "Einstein Technology" cold store produced CHP plant heat to refrigerate produce and HEAT POWER for above operations frozen fish and an electric Advanced IQF tunnel flash freezer for initial blast freezing. Torrefied wood, emulates coal in typical pulverized coal- ecoTECH Roasted (or "torrefied") wood fed combustion systems, without coal pollution, as a fuel INERT HOT HEAT POWER briquette manufacture. replacement to meet the new statutory emission GASES reduction quotas and mandates in effect now.

Status The two sites that will be combined for the McBride eco-Industrial Park have been optioned. ecoTECH Energy Group has been registered to proceed through the steps necessary under the BC Hydro Call for Community Based Independent Power Production and was accepted to participate (May 2010).

The new BC Hydro Initiative for the purchase of biomass-derived power over 5 MW per hour capacity, launched 31st May 2010 has also been applied for by ecoTECH, for a power station, that is a separate, but adjunct initiative to the first power call project where we are awaiting the commencement of build of a 138 kVA power transmission line from McBride through to Valemount, covering the 90 km to the nearest major BCH uplink. We expect the gestation pe- riod for that program to exceed one year.

So PHASE ONE is the 5 MW to BCH plus approximately 2 MW to local users, per this plan. Investors in this project will be invited to participate in the BioEnegy Power Project PHASE TWO.

Page 7 Site Location McBride 2011

Page 8 McBride eco-Industrial Park

Rainbow over Lamming Mills

SITE

The beauty of McBride

Horseshoe Lake

Page 9 Site Layout McBride 2011

Page 10 McBride eco-Industrial Park

Site features and recent improvements

oads on the Site have many decades of compaction and areas of hard standing, so they will be kept and utilized wherever possible. Cedar 3 Mill has electrical power that is adequate for all construction purposes Rand distribution lines for power and telephone are in place on both site sections. October 2010- BC Hydro has opened a $2.3m biodiesel power generating station at McBride in British Columbia. The power station consists of three 1.5 MW generators that run on biodiesel - a fuel which consists of a blend of conventional diesel fuel mixed with quantities of organic material derived from waste vegetable oil or animal fat. The facility is temporary until the independent power production of ecoTECH (firm power) and 2 run-of-river IPPs can come on line. Water is available for all hydroponic and steam treatment needs. Site garbage will be utilized in the ecoPHASER and the pozzolanic ash will be used for road substrate, on-site barriers and kerbs. Sewage for the site, augmented by the abundant local beef cattle manure piles, will be treated in an Algaewheel facility. The Algae (60% bio-oil) will provide oil for binding torrified pellets and augment diesel for site vehicles and short haul trucks. Squeezed algae cake will provide bio-still feed.

Page 11 McBride 2011 NW

Panorama view of Lamming Mills section of the site from the Yellowhead Highway 16. Cedar 3 site is of the same frontage length, beginning at the red line left, heading northwest.

Not shown on this preliminary plan

The following facilities and best strategic placement are not yet detailed as they are mainly subject to local input, yet to be discussed. We expect to apply for local stimulus and Provincial grant programs and to take advantage of the programs from both Northern Development Trust and the new Pacific Carbon Trust. As discussions are at the early stages, delineation and site location of most of the following have therefore been omitted from the above preliminary layout. Site Offices and tenant products show room Public display centre products samples; species aquaria College affilliated training facility Caledonia College satellite training facility 3 classrooms plus one laboratory/workshop Firehall 1 full time engine 24/7 staffed Ambulance Station 1 dedicated vehicle affilliated to McBride General Hospital First Aid clinic for site minor emergencies staff medical examinations Shuttle Bus maintenance garage McBride - Lamming Mills travel pooling Local Deliveries Trucks (for train shuttle McBride CNR) maintenance garage Truck maintenance away from food producers Site Security office Closed circuit surveillance 24/7 staffed Police Facility (part-time use dedicated rooms) RCMP small site office parking for police car Site Maintenance Includes snow plough grass cutters

Thermax Oil & site water (electronic control) pumphouse district heating circuit Heat for all processes and buildings Sewage and wastewater treatment Algae wheel www.algaewheel.com Vermiculture & ecoGROW natural fertilizer plant See ecoGROW products www.ecogrow.ca http://www.ecogrow.ca/Agriculture-Horticulture-Nutraceutical Products.htm Switching & power uplink to McBride district system surplus to BC Hydro / BCTC grid

Organic food restaurant features ecoGROW fish ecoGROW vegetable

Helicopter pad (medi-vac) plus helicopter logging drop located near pellet facility

Page 12 SE

The BC Hydro islanding reclosure switch system on the road verge, in front of the site section designated for the substation. McBride Village is 8.2 km to the image right.

The McBride eco-Industrial Park

The Images on this Page

he header image is a panorama taken from Highway T16 of the section shaded in the image key - right. >>>>> These two pages show the preliminary layout ideas for the site which are subject to revision pending the ongoing engineering studies and the outcome of deliberations over the power services to be provided in the Robson Valley.

Page 13 McBride 2011

The Rich History of the Site:

Valley Museum & Archives: 2007.01.72 E. Lamming Collection Taken in 1956 looking south-west over Lamming Mills. The future Highway 16 is on the far side of the mill site.

Valley Museum & Archives: 2007.01.22 E. Lamming Collection Lamming Mills in about fall 1957. The school and ball diamond are at lower right. The winter road for hauling logs from the Blackwater is visible at upper left.

Page 14 The Land Parcels that Comprise the Site The McBride Eco-industrial Park Site Description & Compilation

The McBride Eco-industrial Park Site Description & Compilation he site for the McBride Ecological Industries and Sustainable Production Park is in fact two sites, to be purchased from two owners. We know that the Cedar 3 Mill operation, Tthe active business that is owned and operated on the site and will continue to operate in a new facility to be designed as part of the site, is the successor to the mill operations named after the four the Lamming Brothers, who arrived looking for merchantable standing forest wood, from Alberta in 1942, expecting at first to buy the logs and timber that survived the total loss of the Adrian Monroe Mill that was on the site, adjacent to the Garrett Farm. Part of the Garret Farm begat the small mill and railway worker community that came to be called Lamming Mills, named after the post office near the mill that was bought by the brothers.

“Mills” refers to the number of portable mills that were used in the area, and the little township grew due to the poor road to McBride and the heavy snow falls in the 1940’s. The symbiosis of the two sites lasted until the mill closed. The community was inhabited until the late 70’s when the attrition of the site began. It has housed few people since. ecoTECH has a trust deposit and an offer on the industrial site for over a year and only recently became able to secure the contiguous old township site. We plan to dismantle all of the buildings on both sites, rehouse Cedar 3 as a tenant and use the demolition timber, plus the site fellage as part of the start up fuel supply for the power house and as feedstock for the torrified briquette system respectively, thereafter fed by McBride Community Forest, our 30+ year contract supplier. It is also possible for us to buy and lease back the equipment used by Cedar 3 Mill. Descriptions of the Land Parcels for Compilation: Cedar 3 site legal description “Cedar 3 Land” means the land situate in McBride British Columbia, commonly known as 3874- 16 Hwy, McBride, BC and legally described as: Lot One, District Lot 5339, Cariboo District, Plan 20852. PID # 008-742-511.

Lamming Mills Unincorporated Township description “Lamming Mills Township Land” means the land situate in McBride British Columbia, commonly known as Lamming Mills - Garrett Road and 16 Hwy, McBride, BC: Street Address 3180 Garrett Road, McBride, B.C. and legally described as: Fractional N.E Quarter of District Lot 5339, Cariboo District, Plan 20852. Zoned CR-1 PID # 015 304 272.

Page 15 McBride 2011 McBride 2011

Energy: The Power Station, it’s Fuel, Thermal Generation System and the heat distribution and circulation system. Features of the McBride CHP Energy Project

• Firm power contract possible due to equipment redundancy and • Large CHP use for businesses planned for the site. modular energy generation equipment ease of swapping. • Planned greenhouses and aquaculture requires heat and • Equipment redundancy reduces module duty cycles and power. High regional sunshine index for greenhouse. guarantees longer equipment life. • Percentage of Carbon Dioxide to be utilized by • State of the art near zero NOx combustion system. greenhouse. • Power demand shortages ensure potential for long term viable • BC Government Carbon Credit Trust candidate. This contracts. project will qualify for credits. • Fuel available for many years beyond the “beetle kill” glut, as • On-site heavy equipment fabrication and assembly plant the area has diversified mixed species feedstocks. can provide structural items at reduced cost. • Local Village Executive and McBride Community Forest • YTO subsidiary Dong Fang Electric can supply discounted Corporation have already contracted to participate in biomass high quality turbines & generators. disposal and forestry industry revival via this project. • The entire site will operate year round and will be • No First Nation or public consultation issues. controlled by a successful group of established operating companies. Savings from the costs of heat • Regional District of Fraser Fort George prepared to rezone and power will ensure ongoing viability. areas of the site to required status. • Not reliant on dead standing pine, or mill residues. • Wide range of fuels possible with ecoPHASER. • No fuel transportation costs. Fuel price is inclusive • CHP Plant is forecast to be profitable. • Waste- derived fuel is very economical.

McBride Community Forest McBride Community Forest Corporation has a Information Capsule 99 year tenure from the BC Ministry of Forests

Contact: Mike Frazier, Mayor of McBride, Marc von der Gonna, Managing Director.

n Oct 25, 2000 the Village of McBride’s proposal was chosen as the province’s Oninth community forest pilot site. The McBride pilot site covers 32,000 hectares and has an allowable annual cut of about 50,000 cubic metres. This saw-log cut represents 40% of the available forestry biomass (residues and culls) for fuel. McBride works closely with companies in the small business forest enterprise program. As well as timber harvesting, the Village hopes to encourage business and recreation. The Corporation of the Village of McBride, located in the Robson Valley, has long sought an opportunity to provide the village and surrounding community with a greater socioeconomic diversity within the scope of a healthy environment. The McBride and District Community Forest Corporation is designed to serve the social, environmental and economic needs of the community. In general terms, we will be managing the forest for all of its product potential rather than just timber. McBride CFC Objectives include generating the following products from the forest: 1. Timber 2. Water 3. Recreation/Tourism

Page 16 The ecoTECH Modular Power Station

coTECH constructs its power stations ebased on a common denominator sized module of its proprietary ecoPHASER technology.

Each module embodies a sublimation reactor (for turning solids directly into gas), a high tech pulse oxidation unit, a boiler, super-heater, an economizer, providing high pressure energy for cascading steam-on-steam turbine generators that produce electricity at maximum system efficiency. The size is determined by these logistics and thermochemistry demands as dictated by the characteristics of the sublimation reactor.

Each ecoTECH module is rated with a power output of 12 MW per hour. A modular system enables power stations to be designed with maximum mitigation of risks of outages caused by equipment failure. The modular configuration enables variable delivery output within each power station. This economical and most efficient use of resources results in ecoTECH being able to offer full duty cycles up Page 17 to 100% when a standby module is deployed in the design. Page 17 McBride 2011 McBride 2011

The ecoTECH “ThermaxR” Process Heat Delivery Circuit System: Thermax is a registered trade name of Royal Dutch Shell Corporation

Page 18 Scope of Work to develop the Project

coTECH Energy Group Incorporated (“ecoTECH”) will manage the Project development & installation. eThe scope of consultancy and service work by ecoPHASER as Project Developer is as follows:

• Liaison with Civil Engineers (etc.) and City/Country/Provincial Officials. • Research and planning for environmental compliance. • Research and planning for operational logistics. • Structuring applications for permits. • Structuring applications to meet BC Hydro sustainability enviro-power compliance. • Structuring applications and service cycles to meet Prevention of Significant Deterioration (PSD) and performance degradation mitigation CCME compliance. • Executive overseeing of geotechnical survey and planning of site and leachate mitigation reference groundwater compliance. • Design of site landscaping, (plus soil remediation and gas extraction/capture system if required) to provide aesthetics plus habitat repatriation. • Architectural design of all site buildings to an aesthetically appealing standard, that meets the demands of mountain weather patterns. • Design of the biomass sorting systems, materials handling, recycling, fuel storage, power generation and emission control systems. • Procurement of all components, systems and services/sub-contractors for the Project. • Recruitment, screening and training of local personnel for construction and operation of the project. • Run up and debugging of the Project.

coTECH Energy Group Incorporated (“ecoTECH”) will also undertake the following optional executive eand management work.

• Surplus heat capture for thermal industrial or local heating requirements. • Carbon Dioxide capture and liquefaction for greenhouse use. • Design and delivery of a greenhouse if required. • Transpiration carbon (GHG CER) credit creation and placement.

• CO2 lift avoidance carbon (GHG CER) credit creation and placement. • BC Hydro, provincial or federal financial assistance, grants, subsidized loans,environmental adder accreditation or tax credit applications and placements. • Grants and job assistance credit applications for indigenous personnel. • Expansion phased management.

Page 19 McBride 2011 McBride 2011

Integration of an ecoTECH Energy power-station with other green energy projects

coTECH Energy Group Inc. has examined the potential of balancing the electric power eoutput fluctuations experienced with sustainable “green” energy systems such as wind farm installations and solar array power generators, each of which is hampered by natural weather fluctuations, such as air speed drops at wind farms, or less than forecast clear sky days with solar, then night fall - just as loads increase on the grid. Seasonal variances, although less dramatic in time intervals, affect run-of-river hydro installations, with high outputs during the freshet, tailing off to low output in the middle of winter.

The fickle air flow patterns experienced in most land-based wind-power energy installations, solar array cloud cover and winter long nights, plus the seasonal downturn of stream flow dependent hydro, incur the losses from the difference in achievable electricity prices for firm versus non-firm energy sales. Thus these shortfalls engender a need to provide an economically feasible firm energy backup generation system that meets the ‘green energy’ designation.

If there is an abundance of forestry husbandry and logging operations in the region, such as in McBride, we have made the conclusion that a thermal on-demand power generation facility can be the balancing (shaping) medium.

However, ahead of a feasibility study to determine the actual amounts available to secure a 30 year supply of fuel, we assume that there is enough wood residue and culled tree fraction to power a plant capable of producing the required buffer megaWatts on-demand. The description that follows is for the supply of energy to give a firm electricity power output to meet each variable criteria.

We always specify an additional 12 MW capacity over the buffer requirement, which represents 1 ecoPHASER module on standby, although all can be used intermittently. Each 12 MW generation model requires 3.97 tonnes (4.38 US short tons) of hogged wood fuel per hour, or 34, 777 tonnes (38,255 US short tons) per year. Aggregate capacity of 36 MW/hour mean, 48 MW/hour peak, minimum output 6 MW/hour, is the standard 4 module structure.

As a sustainable ‘green’ energy, thermal sublimation of wood fuel and the oxidation of the resultant bio-gases in the ecoPHASER system deployed in the generation station qualifies for consumption in mandated green energy power portfolios, (such as in California). The “green power” can be utilized by utilities with fossil fuel portfolios to meet mandated state/provincial green energy percentage demands.

The plant envisioned will be the firm power backstop component of each wind, solar or hydro generation complex, complementing and consolidating the output for a firm electric power supply of the required or contracted mega-Watts per hour from the perceived thermal green power cluster.

This is achieved using the ecoTECH shaping system described in the following pages. The load balancing system was designed by ecoTECH contract electrical engineering specialists, ECM Engineering Consultants Inc. and will feature in ecoTECH installations where the shaping of non-firm power clusters, (wind, solar or run-of-river hydro-power), is required.

Structure: Biomass thermal plant set up in structures of 4 modules, to the required buffer output. Each structure has load shaping capacity, delivering firm power; additional process/district heat by- produced, =15% at full firm operation, pro-rated for intermittent duty.

2 x 4 module separate structure banks. Area required including fuel storage and truck movement and unloading is 30 acres. Each bank of 4 modules in a structure has one electrostatic cloud scrubber and one exhaust. The duty cycle is 91% of full capacity.

Page 20 © Copyright C. Victor Hall, ECM Engineering Inc.& ecoTECH Energy Group Incorporated August 2010. All rights reserved ecoTECH Power Shaping Method METHOD: Integration of ecoTECH Energy power-station with wind-powered, solar and stream flow dependent hydro projects:

Synopsis

coTECH Energy recognises that unlike traditionally-fuelled power-projects, sustainable eenergy projects are subject to widely varying climatic conditions, yet green-power projects are subjected to the same contractual supply constraints as their more traditional cousins. N.B. Although thermal biomass to electricity (wood residues, MSW etc.) Is classified as green energy, this document describes the non-ecoTECH “main” electricity as “green” to differentiate with ecoTECH produced power.

With this in mind, we at ecoTECH Energy have incorporated design-features into our system to better cope with the vagaries of wind and solar power, and the seasonal freshet-to-freeze- up hydro differentials, thus allowing our clients to continue optimizing revenue potential and reduce contractual supply liabilities.

Our design philosophy in control and generation, incorporates both predictive as well as reactive capabilities to minimise our client’s exposure.

Overview of control design.

Our control system has only one primary function: namely to ensure that both the green- power and ecoTECH elements work in concert to meet short-term active power maxima and minima and to meet or exceed, if asked, the required energy deliveries for each contract period. The control system itself would be digital with Ethernet or LAN for full local and remote control, monitoring or data capture.

The predictive component has seasonally-based inputs, based on historical data, which will determine, inter alia:

• Spinning reserve and static reserve ratios

• Fuel-supply/reserve metrics

• Response to load/demand and wind-power supply dynamics

• Grid outage expectations based on weather and exigencies, fire and flood predictions etc

• kW/kVAR combination requirements

• Changes in grid configurations

• Seasonal supply/demand changes

• Efficiency optimization under all load conditions

• Co-ordination of predictive maintenance with demand expectations

Page 21 McBride 2011 McBride 2011

ecoTECH 2011 ecoPHASER CHP Stations with Power Delivery Shaping Overview of plant-design he same design-philosophy as in the control system, is mirrored in the design of all the Tcomponents comprising the ecoTECH generation system; • Fast response to changes in demand (both grid and wind-power supply) by a combination of multiple smaller turbines

• Use of a combination of high-pressure and low-pressure turbine systems

• Multiple boilers to increase plant efficiencies

• Duplicated/redundant fuel treatment/handling plant to reduce potential downtime

• Duplicate/ bypass on-site power distribution

Overview of control Methodology The system functions on data provided by, inter alia, the following inputs and outputs:

Inputs

• Instantaneous export kW, kVAR from the wind-power supply source versus datum

• Instantaneous grid power factor versus datum

• Energy exports short-term and long-term versus datum

• Availability reports, individual and combined for turbine and wind-power

• Feedstock quantitative data

• Individual system “state of health” inputs, qualitative and quantitative

• Individual output set-points to determine spinning and static reserve capacities, including predictive elements

Outputs

• ecoTECH Instantaneous kW, kVARS to maintain export datum

• Integrated energy exports relative to contract period datum

• System qualitative and quantitative data

• Determination of system “lead” and “lag” Turbo-alternator (T/A)sets

Page 22 System Function

he “system” consists of both the main producer green power (herein “green” power) and the ecoTECH power supply. The controls ensure that the instantaneous contract Tpower outputs, both active and reactive, are met, and this is broadly achieved as follows:

• The combined system power output is made up of the green energy output at maximum under prevailing weather or seasonal conditions, with the balance, up to datum-point, being provided by the ecoTECH power station.

• The “lead” and sequentially selected “lag” sets operate at an output between rated and the set-point to bring another machine on-line and share active and reactive power equally.

• The station control system controls T/A set governors and generator automatic voltage regulators to control active and reactive power respectively of each individual T/A set.

• “Spinning” reserve is provided by the combination of the spare capacity between set-point and rated load, the 110% intermittent load-capability and the degree of boiler-pressure “reserve”.

• The boiler pressure and temperature for each pair of T/A sets is monitored by the control system. As the T/A sets demand increases, pressure and temperature drop below set-point, the controller increases fuel in-feed rate and a superheat temperature monitor modulates induced-draft and/or forced-draft fans to increase degree of superheat of the steam fed to the high-pressure turbines. The steam pressure/vacuum pressure of the low-pressure condensing T/A set is controlled by condenser coolant flow-rate, also a system-controller output.

• When wind-farm power-output increases, demand on the ecoTECH system drops, and T/A sets equally reduce power-output via the governor controls. Surplus steam-capacity is vented in the short-term until fuel feed-rate and feed-air induction rates are reduced.

• If power-demand on the ecoTECH system continues to drop, the on-line T/A sets will continue to proportionally and equally reduce out-put until output drops below set-point. After a predetermined time period below set-point, the last-sequential T/A sets are taken off-line and the associated boiler/ecoTECH system goes into “active standby” for a period determined by prevailing conditions and the predictive controls.

• If green energy power-output were to drop, the ecoTECH system picks up the balance to bring system output back to datum. Wind-farm equipment failures would result in sudden load-increases on the ecoTECH system and this “sudden” capacity would be provided by the spinning reserve.

The spinning-reserve capacity would be determined by the ratio of wind-turbine/T/A set capacities.

Page 23 McBride 2011 McBride 2011

Why the ecoPHASER Energy System is so Efficient.

e are often asked why the ecoPHASER system uses less fuel than conventional Wgrate and/or fired boiler systems. There are several reasons why this is so:

»] the ecoPHASER System was originally designed to conserve fuel, whereas most other solid fuel systems, especially biomass and garbage fuel systems, are designed to incinerate (reduce) fuels with the emphasis on volume reduction over economical energy production.

»] the ecoPHASER is not a one combustion chamber design. In conventional solid fuel systems, all of the combustion, even in one-chamber “zoned” so-called gasification combustion units, occurs in a thermal firebox with hot spots and erratic, uneven fuel oxidation resulting in Nitrous Oxide creation, after the simple elements of combustion are liberated from the fuel.

The erratic hot spots that occur with conventional burners give rise to silicon (ash) fusing (clinker creation) and dioxin/furan molecular combinations with some fuels.

»] In contrast, the ecoPHASER system consists of three separated chambers for sublimation, air/gas mixing and combustion, that give full reduction of fuel in the sublimation reactor, full gas/air mixture in the carburettorand a high frequency, staccato, short flame front from the Sonic Standing Wave oxidation unit.

The SSW oxidation unit delivers clean radiant energy in the firebox, which has its own particulate burn out and ash removal section. Massive refractory linings constructed from the most avant garde insulation components, stabilize and isolate the chambers, which are devoid of hot spots or chill zones. Sublimation is effected above the creosote potential heat threshold and below the ash fusion temperature. This allows foreign or tramp materials, (sand crystals, soil components, stones, bolts screws and nails etc.) to simply drop out into the ash, without the silica fusing to form clinkers. The fuel is consumed in a substoichiometric atmosphere, giving a smoulder of high steam content combustible and other gases, that lifts without high velocity, to be thoroughly mixed in the carburetion chamber, whilst the unique character of the pulsed burn enables heat to radiate without high gas velocity in the firebox, having an element recombination disruption frequency calculated to eliminate the formation of NOx and other noxious greenhouse gases.

The performance of the Mark VII ecoPHASER producing heat values of 52 Mega British Thermal Units (Mbtu), or 55 GigaJoules (GJ) per hour is compared in the tables on the page opposite with the actual results in 7 years of reports of a 35 Mbtu/hour unit that operated in McBride, British Columbia, Canada at a veneer plant, recorded independently by inspectors and analysts during emissions testing for air-shed clean exhaust compliance. In each test run, the ecoPHASER Mark III clone consumed 2 tonnes of 35-50% total moisture content forestry residue wood (unwashed bark and trimmings) per hour. This unit was fitted with our earlier, less efficient Vortex Ramjet Burner with no exhaust scrubber. The new SSW pulse burner delivers exhaust with near-zero NOx emissions.

© Copyright C. Victor Hall.& ecoTECH Energy Group Incorporated Aug 2010. All rights reserved

Page 24 The Efficient Thermal System Why the ecoPHASER Energy System is so efficient: Data from operation of an existing 35 Mbtu/hour unit

. Lanfranco & Associates Ltd. is a BC Ministry of Environment approved air emissions testing organization with decades of experience. During the example testing period Anoted above the 35 Mbtu (37 GJ) per hour unit consumed two tonnes (2.2 US short tons) of wood residue (hog fuel).

As the major improvements between the Mark III of this test and the current Mark VII versions are in NOX reduction, full particulate burnout and hot zone gas stream residence times, it is reasonable to assume that a 69 Mbtu unit will 69 consume /35 or 197.14% = 3.97 tonnes per hour as noted in our ecoPHASER specifications.

Accordingly, we believe that our system is not only the cleanest, but also the most economical in the world today.

Mark III Mark VII Page 25 McBride 2011 McBride 2011

Plant Operations: We contract to the world best.

North American o p e r at i o n s & maintenance Energy Services Inc. Information: DEDICATED TO MAKING POWER PLANTS RUN SAFELY, www.naes.com RELIABLY AND COST-EFFECTIVELY.

Broadest Technology & Fuel Experience in the Business

As the largest third-party O&M provider in the world, NAES offers unparalleled experience. Using a variety of fuels, NAES operates the broadest range of generating technologies in the business, including industrial combustion and aeroderivative turbines (simple and combined cycle), reciprocating engines, coal and fuel oil fired steam plants, and district heating and cooling facilities.

NAES also offers a growing renewables portfolio that is the most diverse and innovative in the business:

■ Biomass ■ Biosolids processing ■ Geothermal ■ Hydroelectric ■ Waste-to-Energy: municipal solid waste (MSW) | tire derived fuel (TDF) | refuse derived fuel (RDF)

■ Wind

NAES O&M Performance Pays Off!

NAES implements highly effective operational programs that emphasize safety, environmental compliance, operations, maintenance, NERC compliance, chemistry, training, human resources, and administration. NAES tailors each program to the plant, aligning them with plant processes. The programs consistently deliver outstanding O&M performance straight to the bottom line.

Owner Satisfaction

As an independent operator, NAES is loyal to you. With cost-effective, objective, and proven O&M services, NAES reduces O&M risks and ensures owner satisfaction.

Energy People Making Energy Facilities Work — Better

1180 NW MAPLE STREET, SUITE 200 - ISSAQUAH, WASHINGTON 98027 USA PHONE: 425.961.4700 FAX: 425.961.4646 WWW.NAES.COM

Page 26 The Technologies and Training

DEEP WATER HYDROPONIC GROWING TECHNOLOGY ydroNov Inc. is currently installing greenhouse hydroponic growing systems with complete operational back-up for customers around the world. HydroNov Inc. has Hbeen built following the success of a small research and development project at the beginning of the eighties that has been able to create from scratch a unique growing system.

This technique garners interest from growers and business people all over the world. Now the biggest hydroponic lettuce grower in the world, HydroSerre Mirabel Inc. is producing lettuce at a rate never reached before.

HydroNov’s technical services include technology transfer, growing system material and installation, production software, professional follow-up and turn-key project.

While current production figures for protected soil crops in Europe show harvests of 108 plants/m²/year, HydroSerre Mirabel Inc. is now harvesting 500 plants/m²/year in a climate far from being ideal in eastern Canada.

Page 27 McBride 2011

The Technologies and Training

GREENHOUSE HYDROPONIC AGRICULTURE

ydroponic means growing without soil. From there, several different systems have been put together since the early nineteen-sixties, starting mostly in England and HIsrael. Early systems were very basic, replacing soil by a growing media like sand, peat moss or rock-wool. Why does it work? Because plants are not feeding on soil but on minerals hidden in the soil. The purpose of hydroponic agriculture is to make those minerals available to the plants directly through water. Modern hydroponic growing systems are using more water plus nutrients growing media, preventing depletion of natural resources such as peat moss for example and accumulation of residues like rock-wool and other fibers. Outdoor Soil Farming: The ultimate hydroponic growing system will combine water conservation, zero media residue, 3 Harvests / Year biological fertilization and water revitalization. HydroNov’s deep pool growing system is very close to that.

AQUACULTURE

ecent development in water recirculation systems (Recirculated Aquatic Systems, or RAS), for fish production are quite similar to those made for recirculated hydroponic Rplant production. New technologies now allow indoor production levels to 200 Kg per square meter annually, (+/- according to species), helping to overcome the dramatic decrease output from traditional wild fishing.

Recirculated Aquaculture The development of water recirculation applied to fish production has made possible to grow several fish species in a wide range of locations in the world. One of the main advantages is to save water whilst increasing production levels, thus helping to protect water resources while helping to feed the world. Protected Soil Horticulture: 5 Harvests / Year Advantages of water recirculation technology applied to fish production: • Capacity to control temperature, oxygen, salinity and pH to maximize growth according to each species requirements, • Protection against fish diseases, • 98% reduction of water use, • Complete control of waste rejection to the environment, • Most importantly: these systems are indoor, contained and safe environments that allow no leakage, species release or risk of contamination to watercourses or indigenous fish stocks, or predation that occurs with outdoor fish farming. Protected Hydroponic Floating Technology: 18 Harvests / Year

Page 28 The Technologies and Training QUALIFICATIONS

ith eighteen successful major installations around the world, HydroNov Inc. is the acknowledged leader in the field of deep water hydroponics, RAS aquaculture and Wthe combined sciences that are sometimes under one roof - “aquaponics”. Whilst the ecoGROW division of ecoTECH Energy Group Incorporated creates the facility, skilled and knowledgeable HydroNov staff select and train recruits to operate the facilities. Just as with our contracted power station operator (North American Energy Services Inc. - www.naes.com, the world’s largest power station operator), training systems and facilities are set up to empower local workers with specific operations that cover an extremely wide range of skill sets and capabilities.

We believe that the scope of activities will encompass the job creation needs of the local communities with opportunities for participant workers of all ages, each gender and any indigenous background.

It is planned for ecoTECH to set up a power generation technology, hydroponics, aquaculture and silviculture curriculum with Caledonia College, in the empty Ministry of Forests building in McBride. Skills training required by NAES & Hydronov is the primary target, together with cold store maintenance and site safety courses.

SILVICULTURE

t this time, the Ministry of Forests sends its seeds, gleaned from its own forests, under a species-specific set of rules of selection, to many silviculture contract nurseries, that Anow encompasses all Forest Service needs. However, with now over one billion trees killed in British Columbia by the Northern Pine Beetle diseased fungus, there is a burgeoning need for replacement seedlings. Although the MOF will determine whether species will be changed in order to modify the forest tree types to prevent further outbreaks, or if there is a resistant strain of Pine developed in federal laboratories remains to be seen, but the need, and therefore a huge market for seedlings, is apparent.

Accordingly,

Performance forecasts of the Businesses

The businesses hereafter described are in the environmentally sustainable sector, with two in food production and one will be an enabling contributor to reforest the disease decimated regions of BC and adjacent provinces, where millions of trees are dead or at risk.

All can be described as being in true growth industries in every meaning of the words. The businesses are: 1. Year round hydroponic produce; vegetables and herbs. 2. Food fish propagation via aquaculture, with some filleting preparation. 3. Tree seedlings greenhouse nursery operations. Due to the differences in operations and marketing in each of these projects, each is treated in this document with a short form economic business case, or “mini business plan”.

Page 29

Wisdom from Experience McBride 2011

1. Hydroponic horticulture produces off-cut and residual vegetable leaves and stems Full Circle Nutrition 2. The leaves form the feed for the vermiculture section 3. The organic vegetable-fed worms give worm casts and liquid plant supplement. The total nutrition 4. Worms are fed to the carnivorous fish species in the aquaculture section and growth circuit 5. Diatoms from the horticulture aqua-troughs are fed to herbivorous fish species 6. Fish manure-laden water is filtered and used to float the hydroponic plant trays in the hydroponic section Page 30 7. The enhanced trough water flows through the system, feeding the plants with 17 nutrients for complete nourishment 8. Fish offal is utilized in the liquid plant nutri-stimulant production facility. The ecoGROW Total Cycle Concept

he ecoGROW Total Cycle System embodies a series of co-operative inter-species Multiple produce tested at the symbiotic sequences that utilize as many of the benefits possible from deep trough South Alberta Crop Diversification hydroponic horticulture, where plants are supported in floating trays, with the feeder Centre, photographed in 2004. T roots in a nourishing organic water mix, which in this case does not use the typical hydroponic Note how healthy these deep chemical feed with its emphasis on NPK (Nitrogen, Phosphorous, and Potash (Potassium)) as water raft grown plants are on proffered by chemical refineries over the past 100 years, but instead garners the 17 nutrients fish-waste nutrient water. found in active fish effluent.

In aquaculture, the water quickly becomes nutrient rich due to the fish digesting their food and excreting waste. The waste water in non-ecoGROW systems is usually filtered and/or disposed of to keep the tank water free of toxic buildups. The fish waste provides a food source for the growing plants and the plants provide a natural filter for the fish. This creates a mini ecosystem where both plants and fish can thrive. This symbiosis is called Aquaponics and it is the ideal answer to a fish farmer’s problem of disposing of nutrient rich water and a hydroponic grower’s need for nutrient rich water.

The food fish that provide these all-natural additives are themselves fed on organic fish foods, such as our tank grown Periphyton, a complex mixture of algae, cyanobacteria, (also known as blue- green algae, blue-green bacteria, and Cyanophyta), heterotrophic microbes, and detritus that is attached to submerged surfaces in most aquatic ecosystems, where it has the ability to remove contaminants. The ecoGROW System incorporates a separate Periphyton room, where it is fed high levels of carbon dioxide from the power station, which is disassociated into carbon (in the algae growth) and high levels of dissolved oxygen in our pass through water circuit that provides habitat and nutrient for the herbivorous fish, such as Tilapia.

In the ecoGROW System, the plants and fish are in separate buildings, separated by the pump-house that has filtration circuits and air-sparging to enhance the ability to maintain optimum qualities in each environment. Although the symbiosis enables the fastest and healthiest growth rates, each species has different ambient needs of temperature and light, so sectional propagation areas in greenhouses and aquaculture buildings are essential. Species-specific, tuned LED lighting systems are utilized to augment sunlight.

Page 31 McBride 2011

The ecoGROW Total Cycle Concept

ff-cuts, outer lettuce leaves, roots that are not pulped for vegetable drinks, surplus algae etc. Oare conveyed via the automatic processing system (shown in the Horticulture section following), to the vermiculture facility located between the horticulture and aquaculture main buildings. In the vermiculture grow pens, our organically-fed worms dine on the rejected vegetation, converting it into worm casts and worm tea, a fine nutrient to add to the plant trough water in the pump room. As the entire complex relies on flowing, carefully monitored water, nutrient loading is maintained by computerized analysis and metering.

The worms are grown to be organic home-grown clean live food for the carnivorous species of fish (trout, etc.). With young fingerlings, zooplankton, (Daphnia etc.) Are provided by our Periphyton facility.

Occasional import of high nutrient organic feed is necessary, but the Total Cycle system is as near to self-sustaining as we can get, essentially turning sunlight, oxygen, nitrogen and carbon dioxide into clean, living and balanced food fish and vegetables.

Page 32 Technology by:

ydroNov Inc. is an international leader in greenhouse production, in operation since 1987, has developed and adapted several agricultural production technologies, leading Hto harvests far superior to traditional growing methods, both in quality and quantities. HydroNov’s distinctive approach is to get involved on a long term basis into technical and production supervision, bringing 20 years of hands-on experience available to each new project.

HydroNov has been active and successful during the last 18 years, in exporting and implementing its technology over 30 hectares in Canada, China, Mexico, USA, Japan. Projects are currently under development in Dubai, Malaysia, Ivory Coast, Mongolia and China.

More information, pictures & videos at: www.hydronov.com

Page 33 McBride 2011

Introduction to the growing technology

ydroNov’s expansion has been achieved based on the development of a revolutionary Hgrowing technique: The Floating Rafts Technology (FRT), for vegetables and flowers.

Floating Rafts Technology is certainly the most “water-conscious” system among existing hydroponic growing systems. One of its key features is the use of a large volume of water allowing enormous buffer for fertilisation and oxygen control as well as economic plants transportation by flotation. This large buffer brings a level of security and easiness that no Lettuce yields 18 crops per year other growing system can match.

With FRT:

• absolutely no water is lost through soil or growing media, • no direct evaporation to the sun, • no dumping of growing solution, • no dripping gutters; just plant’s needs, making it the most economical system in terms of water usage.

FRT leads also to a much higher productivity, bringing the possibility to grow up to 18 crops/ year of lettuce for example, at average head weight of 200 grams, (7 oz.).

FRT provides an integrated internal transportation system, simply using the flowing growing water as a conveyor system. As plants move from starter station to trimming and pruning station, to harvesting station, to packaging, as each floating raft is removed at the end of the growing channel, for packaging, those behind are moved up one raft length as they touch, buoyed on by the nutrient enriched current of highly oxygenated water flowing through the roots.

A biological support base is quickly established in the growing pools, giving the plant this extra strength and a healthy immunity.

No herbicides or fungicides are ever needed.

Page 34 Page 35 McBride 2011

Fast Growing Short Leaf Crops

n all locations developed by HydroNov to date, the market has been enthusiastic to the arrival of a new upscale commodity, grown under a protected environment, fresh, Oclean, and with a constant supply. Butterhead lettuce has been adopted as a main standard for most of the greenhouse production units for one simple reason: European breeders have been offering Butterhead varieties since the middle of the past century, selected for their ability to grow well indoors. It was then and still is the standard lettuce for Western Europe, although recently the varietels array offered is much wider, just like in North America. No other types of lettuce seeds adapted for indoor production were offered until recently.

Constant research is now bringing up the possibility to also produce a wider base of lettuce types including Romaine, Cos, Curly Lolo Biondo and Lolo Rosso, Oak Leaf Green and Red, as well as Leaf Green and Red.

Besides lettuce, other leafy crops can also be grown successfully, including aromatic herbs, medicinal herbs, American spinach, Chinese spinach, watercress, …..

AMONG OTHER PRODUCTION CHOICES: Cooler night locations are suitable for the production of red lettuces, due to a natural mix of quality light and cool night weather. The market has great expectations for a reliable source of quality greenhouse red lettuce. Red Butterhead, Lolo’s, Oak Leaf and Red Leaf types are showing great market possibilities.

HydroNov Japan

Page 36 Fast Growing Short Leaf Crops

he Romaine, Cos type of lettuce has a very fast growing market segment among the field grown lettuce varietals. To complement the large size field types, greenhouse Tproduction is providing the market with smaller versions, that can be grown in a fraction of the time, whilst bringing more quality and taste compared to the field grown counterpart.

A recent evolution of the FRT system has enabled the possibility to produce all the direct seeded high density (usually Short leaf) crops, either herbs like Basil, greens like Arugula, or baby version of vegetables like spinach and lettuce.

HIGH DENSITY FLOATING SYSTEM FOR SEEDED CROPS: The HD board developed for this application integrates the advantages of Floating Rafts Technology with the simplicity and spacing flexibility of peat based media.

The end result is a highly mechanized system, where 5 workers can produce up to 320,000 KG per year of first quality baby leaf vegetables per hectare (= 250,000 lbs per acre, per year).

The direct production costs are limited to a small quantity of peat mix and a variable quantity of raw seeds, usually available at low cost.

Direct labor cost is greatly reduced, the machines specially developed for this process having the capacity to supply tens of acres of production within 1 shift per day.

LOCALE & CLIMATE CONDITIONS: Available weather statistics for the location are indicating a climate with cool night temperature year round, an important factor for quality leafy vegetables.

We are as well expecting humidity to be on the low side, and winter light not sufficient to grow a quality crop without artificial lighting.

TWO PRODUCTION SYSTEMS WILL BE USED:

For the purposes of this plan, we will limit our project description to whole head lettuce.

The high density vegetables remains an option to consider. The choice between whole head and high density is a question of market. Obviously high density leaf must sell at a higher price to compensate for the lower productivity.

Page 37 McBride 2011

Fast Growing Short Leaf Crops Performance

si units US Measure

Production Area Block identification 1 Length 150.00 m 492.13 ft Width 153.60 m 503.00 ft Covered Area 23,040 m2 248,000.00 ft2 Growing Area 19,833 m2 213,480.00 ft2 * - flotation boards/trays *Production Boards 26,096 26,096.00

Nursery Area Length 150.00 m ft Width 48.00 m ft Covered Area 7,200 m2 77,500.00 ft2 Growing Area 4,958 m2 53,370.00 ft2 *Nursery Boards 6,524 6,524 Testing Area *Testing Boards 0 0

Summary

Total Project Area 37,974 m2 410,000 ft2 Total Greenhouse Area 30,240 m2 325,500 ft2 Working & transportation Area 5,449 m2 59,000 ft2 Pump & Filtration House Area 280 m2 3,000 ft2 Packing & Warehouse Area 1,075 m2 2,655 ft2 Cold Store Area 930 m2 10,000 ft2

Capacity of Production Density number of plants per 24 m2 2.23 ft2 Annual Crop Rotation 18 per year Total Harvest 432 m2 4,650 ft2 Marketable Plants 85%

Potential Harvest Plants per Year 367 m2 34 ft2 Plants for Growing Area 7,278,466 per year For Sale 606,209 dozen per year By Weight per Year 1,515,520 kg 3,334,144 lbs

Rejected to Vermiculture facility per year 267,445 kg 588,378 lbs

Expected Water Requirements At Fill-up 7,437,360 litres US Gallons Per Month Usage 1,239,560 litres US Gallons

Page 38 Cost of Greenhouse (only - no cold store)

uilding, equipment and Services for the project are proposed by HydroNov at a firm price of USD $7,432,432. Other expenses related to land preparation, infrastructure Band construction are estimated at $1,455,000.

Ashland: n.b. These guide figures are for the main structure of the facility ecoGROW/HydroNov Greenhouse Only only. The following does not include the Cold Storage Facility, the Site Complex Combined Water Make-up Facility or the Price Summary : Phase 1 Vermiculture Facility. Budget for the 3 service facilities is $4,000,000 USD.

NOTES 1 Land & Services $200,000 Primary Services

2 Greenhouse Building $1,642,368 $800,000 Installation

3 Greenhouse Equipment $1,827,840

4 Services Building (Equipped) $183,456 $55,000 Internal Partitions

5 Cold Storage Staging Area $87,360

6 Floating Raft Growing System $2,032,128

7 Production Equipment $833,280 $100,000 Contingency

8 Delivery & Insurance $112,000

9 Installation & Concrete Works $294,000 $300,000 Concrete & Drainage

10 Follow-up & Production Supplies $420,000

sub-totals $7,432,432 $1,455,000 TOTAL: $8,887,432

TERMS & CONDITIONS

Travelling Expenses Included C.I.F.Site Status of this draft proposal: PRELIMINARY This is a preliminaty quotation only from HydroNov Payable by Irrevocable Letter of Credit ALL IN USD

Page 39 McBride 2011

McBride as a Horticultural Prospect

ased on HydroNov’s experience with large-scale greenhouse production, a project that is presenting the necessary elements can become a highly profitable venture, able to Bnormally show a payback period of 36 to 60 months. Here are the major elements to be considered regarding the potential profitability of modern greenhouse production:

• Sunny, temperate weather year round, (or ecoPHASER heat + LED lighting). • Cooler nights. • Manageable relative humidity. • Proximity to urban markets and/or access to export markets; or ecoPHASER Cold storage. • Access to good quality water. • Available labour force at competitive price. • Accessibility to competitive energy sources (ecoPHASER biomass). • Efficient management (trained by HydroNov).

This section presents the production capacity of this project, and gives an idea of the potential financial results from such production. Although based on similar HydroNov production facilities and circumstances and adapted to local conditions, the financial information presented here is given as information and indication only, and cannot be understood or interpreted as a guarantee of future performance.

Some important items have a positive effect for the potential success of this project. Among those, light availability, (supplemented by artificial lighting), and weather conditions, size of the product, sales price, labour, energy cost, and financing costs have a major influence.

• Quantity and quality of available natural and artificial light along with average weather conditions will allow regular and fast cropping of high quality product, without the burden of investing in heavy heating, (except where ecoTECH CHP surplus is available, an important positive factor). • Trend has already been created for Greenhouse Boston lettuce to be sold between 150 and 250 grams. This project should be able to easily maintain a 200 grams minimum for its product, and still keep a fast turnover based on 18 crops per year. • Selling price has been budgeted at an average of $9.70 per dozen; This selling price should allow an easy penetration of the market. • Labour and energy costs normally account for 15% of the operational costs of a north ern climate greenhouse. This figure is here reduced to 7% for this project, a decisive advantage.

NB: there are 2200 + sunshine hours per annum – in the Robson Valley region, 2028 in Mirabel Quebec, home of the HydroNov first and most successful greenhouse, since 1998.

Page 40 Financial Prospects for the Horticultural Project

Based on those assumptionsBased on those and assumptions several andothers, several this others, projec thist projectis definitively is definitively presenting presenting financial financial interest, with a profit before taxes viability,of 43 %, with and a profit a return before on taxesinvestment of 43 %, ofand 23% a return on investment of 23%. Sales are budgeted at $5.5M, bringing in a gross profit after depreciation of $2.4M, a net profit before taxes and financing of $1.6M and a cash-flow profit before debt service and Sales are budgeteddepreciation at 5,5 M $,of bringing$2.1M. in a gross profit after depreciation of 2,4 M $, a net profit before taxes and financing of 1,6 M $ and a cash-flow profit before debt service and depreciation of 2,1 M $ HYDROPONICS ONLY PROFORMA FINANCIAL STATEMENT

PRO-FORMA FINANCIAL STATEMENT 12 MONTHS / JAN.-DEC.

TOTAL %

SALES 5,594,385 $

RAW MATERIALS 1,216,775 $ 22% DIRECT LABOUR 993,549 $ 18% FACTORY OVERHEAD 985,000 $ 18%

GROSS PROFIT 2,399,061 $ 42.9%

SALES/ADMINISTRATION 718,958 $ 13%

PROFIT BEFORE FINANCE COSTS 1,680,102 $ 30.0%

FINANCE COSTS - $ 0%

PROFIT BEFORE TAXES 1,680,102 $ 30%

INCOME TAXES - $ 0%

NET PROFIT 1,680,102 $ 30%

Page 41

13 McBride 2011

McBride Horticultural Forecast

CASH-FLOW 12 MONTHS / JAN.-DEC.

JAN. FEB.

SALES 400,200 $ 376,533 $ 5,594,385 $

CASH INFLOW 400,200 400,200 5,594,385

EXPENSES RAW MATERIALS 88,813 88,813 1,127,962 DIRECT LABOUR 59,466 67,713 993,549 FACTORY OVERHEAD 82,083 82,083 985,000 AMORTIZATION -40,833 -40,833 -490,000 SALES/ ADMINISTRATION 54,731 52,873 718,958 INTEREST 0 0 0 DEBT 0 0 0 IMMOBILISATION 0 0 0 INCOME TAXES 0 0 0 244,260 $ 250,649 $ 3,335,470 $

CASH SURPLUS 155,940 149,552 2,170,102

CASH AT THE BEGINNING 0 155,940

CASH AT THE END 155,940 $ 305,492 $

RETURN ON INVESMENT (R.O.I.) 23% ESTIMATED OVER 10 YEARS

155,940 149,552 2,170,102 CASH INFLOW YEAR 1 2,170,102 INVESTMENT $ (8,500,000) YEARS 1 $ 2,170,102 2 $ 2,191,803 3 $ 2,213,721 4 $ 2,235,859 5 $ 2,258,217 6 $ 2,280,799 7 $ 2,303,607 8 $ 2,326,643 9 $ 2,349,910 10 $ 2,373,409 N= 10 INDEXATION= 0.01 T.I.= 0.1

Page 42

14 Aquatic Food Industry Worldwide Status

Aquaculture is developing, expanding and intensifying in almost all regions of the world. Global population demand for aquatic food products is increasing, the production from capture fisheries has levelled off, and most of the main fishing areas have reached their maximum potential. Sustaining fish supplies from capture fisheries will, therefore, not be able to meet the growing global demand for aquatic food. ( The State of World Fisheries And Aquaculture 2006 , FAO of the United Nations, Rome, March 2007 ) UAE and Saudi Arabia are net importers of fish for an amount estimated to USD $100 Millions and USD $200 Millions respectively in 2006, an increase of 21% over the previous year. Beside more exotic species like trout and arctic salmon, Tilapia is a market winner, as well as new introduction Barramundi which have been gaining very large acceptance on North American and European markets over the last 10 years The current food fish consumption per capita is average, at 18,6 kilograms per person per year in UAE, and only 8,5 Kg in Saudi Arabia, Vs 60 Kg per person in Japan and 24 Kg per person in China and USA. ( IFPRI / WorldFish Centre : FISH TO 2020 Supply and Demand in Changing Global Markets, & FAO National aquaculture sector overview ) Fish production is big business on the international trade. In 1984 the net exports earnings in term of foreign exchange was US $ 5 billion ; in 2004 the value was more than US $ 20 billion, a fourfold increase. No other agricultural products come even close. ( The State of World Fisheries And Aquaculture 2006 , FAO of the United Nations, Rome, March 2007 ) Fish production using conventional aquaculture systems, outdoor ponds, cages, tanks, etc. have important limitations; in most instances, inability to control quality of water, weather changes, predators, fish diseases and high mortality, resulting in low productivity, inconsistency in fish production and quality and severe threat to the environment. The Food and Agriculture Organization of United Nations have highlighted in some of its studies, the intensification of aquaculture farming systems including the adoption of Recirculating systems as a way forward to alleviate problems caused by conventional aquaculture. ( FAO Fisheries Circular No. 1017/2, REGIONAL REVIEW ON AQUACULTURE DEVELOPMENT)

Page 43 McBride 2011

Intensive Recirculating Aquaculture System (RAS)

ntensive Recirculating Aquaculture System (RAS), offers a safe and healthy alternative to open pond fish farming, salt and freshwater pen farming, controlling all factors to produce Iup to 20 times more than ponds, cage or flowing trough fish farming systems, and at the same time bringing consistency and quality fish production. It also brings the possibility to install production units closer to market, thus reducing delivery costs while bringing a fresher ecological product to the consumer.

Whereas the other types of aquaculture are exposed to bad weather risks, non-indigenous fish species escapes through accidents, faecal contamination, disease spread and are difficult to monitor in real time, RAS offers human food quality and safety above all of the other legion of advantages it brings to the industry. Fish environments are constantly flowing, tuned to optimum for each species as to water makeup, temperature, salinity, pH and are constantly monitored. With no stress, no diseases to fight and organic feeding, the fish growth and weight gains are ideal.

The Hydronov Intensive Recirculation Aquaculture System is a closed system, spread over 24 independent and individually controlled pools per hectare. Water is circulated continuously to guarantee optimum growing conditions, and passed through mechanical filtration, UV sterilization and biological enhancement. Oxygen is provided and fresh water added at a rate varying from 5 to 10 % per day.

A typical production unit can start from a minimal 1 Hectare (110,000 ft2) size and expand as needed up to 20 Hectares (2,150,000 ft2) and more if market and water resources allow it. The initial production target should focus on well established fresh water species as Arctic Char, Barramundi, Trout, Yellow & Silver Perch, Tilapia and introduce progressively more exotic and/or local species.

The typical productivity will be oscillating from 1,000 metric tonnes per 1 Hectare module (1100 US short tons per 110,000 ft2), for cold water fish like Arctic Char to 2,000 tonnes per 1 Hectare module for warm water fish like Tilapia.

This compares very positively with a typical production of 30 to 50 tons per Hectare for the pond system under the best conditions.

The investment cost for the 1 Hectare module is estimated at USD $4.5 million for the Recirculating Aquaculture System and related equipment, while USD $1.5 million will be needed for the buildings and infrastructure. Savings can be made on buildings and infrastructure according to existents on projected site.

Sufficient land for future expansion need to be secure, with access to sufficient fresh water of acceptable quality.

The average projected cash flow profit per module is USD $1.5 - 2 million, carrying a potential return on investment ( ROI ) of 25 to 35 % .

Although this technology, installed close to consumer markets, will favour easy distribution of fresh fish, there is also an important potential for downstream activities, from filleting and freezing to extraction of Omega 3 fish oil and use of Tilapia skin for fine leather processing.

Page 44 The RAS System from HydroNov

RECIRCULATING FLOW (RAS) TANK SYSTEM CUTAWAY ydroNov’s Recirculating Aquaculture System ( RAS ) is a closed system spread over 24 independent and individually controlled pools per hectare. Water is circulated Hcontinuously to guarantee optimum growing conditions, and passed through mechanical filtration, UV sterilization and biological enhancement. Oxygen is provided and fresh water added at a rate varying from 5 to 10 % per day. The features of HydroNov’s RAS are as follows : - > Each 1 Hectare module consists of:

• 24 independent production pools measuring 27 m X 9 m X 1,2 m • 6 purification pools to prepare fish for market • 1 stabilization section to raise small fish from fingerlings • 1 hatchery section to raise fingerlings from eggs • Control room & laboratory • Dry & cold storage area • Electrical & heating equipment room • Administrative office & workers area

Page 45 McBride 2011

Intensive Recirculating Aquaculture System (RAS)

Aquaculture Building

Page 46 The RAS System from HydroNov

Fish Production Pool Recirculating System

Recent developments in water recirculation systems for fish production are quite similar to those made for recirculated hydroponic plant production. New techniques now enable indoor production levels to achieve outputs up to 200 kilograms per square metre (40 lbs per square foot) per annum, (varies with species). This highly productive system helps to compensate in part for the dramatic decrease in wild fish catches worldwide.

Recirculated Aquaculture System (RAS) The development of water recirculation systems for high density fish production has made it possible to grow several fish species in their natural temperature and water pH conditions, using fully self-contained indoor tanks in buildings designed for optimum light and oxygenation conditions, sometimes many thousand miles removed from the species’ natural habitat: free from predation, run-off leachate from industry or agriculture, parasites and disease.

This state-of-the-art system, coupled with non-chemical organic fish feeding, saves huge volumes of water in comparison to standard fish farming and is has none of the above mentioned dangers. The result is guaranteed fresh, clean and wholesome fish, grown in optimum conditions at the most profitable sustainable rate. As each pool provides an optimum habitat where oxygenated water flow is adjusted to simulate water currents and flushing rates found in the fishes’ evolutionary environment, all ranges of normal ambients, (temperature, salinity, pH values, optimum current speeds and healthy food) can be accommodated, with no danger of losing fish to the wild, where indigenous species can be lost.

Fish environments can be customized, so that even endangered species can be repopulated using our methods under the control and management of local fish and wildlife authorities.

Advantages of the Recirculated Aquaculture System in food fish production • Capacity to control temperature, oxygen, salinity and pH to maximize growth according to each species requirements. • Protection against fish diseases. Regular fish health monitoring and inspections. • Clean and healthy organic fish feeding, with no build-up of wastes and toxins. • 98% reduction in water use, compared to traditional fish farming. • Multi-species in-house capacity to suit local tastes and markets.

Principles of the Recirculated Aquaculture System in food fish production 1. Mechanical filtration removes solid particles from fish excreta. 2. Ultra Violet infusion disinfects the recirculated water. 3. Biofiltration plus zeolitic natural filters remove trace ammonia and nitrates. 4. Oxygen saturation plus 2% fresh spring or rainwater is added. 5. pH is adjusted with all-natural toning filters of species specific types.

Page 47 McBride 2011

Recirculating Aquaculture System Pool Layout

RECIRCULATING FLOW (RAS) TANKS ARRAY IN 110,000 FT2 BUILDING

Page 48 Advantages of the RAS System from HydroNov

Advantages of HydroNov’s RAS

Reduced water requirements by 95% vs flow-through or outdoor systems

Water quality control bringing complete food safety, free from contamination by heavy metal, growth hormone, antibiotics, pesticides……..

High stocking density & efficient feed conversion ratio bringing up production output 20 times more than conventional pond farming system

Site flexibility & year round stable production of healthy fish

Waste management control and treatment, with no adverse impact on environment

Low production costs versus potential sales prices

A high level of integrated bio-security, making it possible to implement all certification processes like GREEN FOOD, HACCP, HALAL, ….etc.

Page 49 McBride 2011

Planned Fish Species: Tilapia for Whole Fish or Fillets

Raising organic tilapia can be effected when there is a profuse and sustained growth of algae, bryophytes, (mosses, liverworts, and hornworts, etc.) phytoplanktons, phytoplankton use CO2 for survival, which means that the more phytoplankton there are, the more CO will be sucked out of the air and zooplanktons 2 in the natural habitat of the fish. Enhanced growth of these natural foods of the fish also results in the production ofan ample supply of dissolved oxygen that tilapia needs. That is the objective of our Periphyton room.

To promote the growth of these natural foods, OAF is applied four weeks before the fingerlings are dispersed into the RAS system. They are fed a ready supply of natural foods in the system. By feeding the fingerlings daily with OAF in addition to the prepared vegetable food, the month-old tilapia grow fast, Male Tilapia Colours gain weight quickly, and develop their immune system.

Tilapia Fingerlings

Tilapia Eggs Hatching

Tilapia Fingerlings Eggs from Tilapia

Page 50 Planned Fish Species: Tilapia

Page 51 McBride 2011

Planned Fish Species: Barramundi & Murray Cod

Baby “Barra”

Barramundi Eggs

Barramundi Fry

Murray Cod

Page 52 Planned Fish Species: Perch

Jade Perch

Very small Jade Perch Larvae

Perch Larvae

Injecting Golden Perch

Small Jade Perch

Jade Perch

Page 53 McBride 2011

Planned Fish Species: Arctic Char& Carp

Char Fingerlings

Dolly Varden

Perch Regulations Fingerlings Followed

Page 54 Planned Fish Species: Sleepy Cod & other Goby

3 months old Goby Fingerlings

Weighing an adult Goby

Market-ready Goby

Page 55 McBride 2011

Planned Fish Species: Trout & Catfish

Catfish Fry at various development stages

Harvested small Catfish

Page 56 Cutthroat Trout

Brook Trout

Larvae to fry to fingerlings

Page 57 McBride 2011

Processing & Productivity

o illustrate the potential of the technology, we will use a typical 30 Hectares production project producing several fish species adapted to South-East Asia market, as this Teconomic model has been developed for this part of the world; these production choices and numbers should be further adapted to Montana market. The proposed fish production plant comprises 30 X 1 Ha Modules with a projected 720 production pools, on a 40 Ha land. We do not recommend to start with such a diversified production and so large a scale, but we use this example to demonstrate the differences between different types of fish. The actual strategy towards the Canadian market needs to be further discussed, but it appears certainly wise to start relatively small and expand as market penetration is established. When selecting sites, it will be important to keep in mind future expansion needs in terms of land, water and electricity capacity. HydroNov’s Recirculating Aquaculture System ( RAS ) offers the flexibility to schedule the production of fish species according to market demands. A detailed permutation of the number of modules and pools for the various species to maximize production and profitability can be carried out mathematically. The following allocation of number of modules and pools per specie on this page are just examples of fish species that can be grown in HydroNov’s RAS. They are by no means fixed. New species are being adapted to aquaculture every year

Production Months Cycles per Fish Species Modules Pools Size (metric per Cycle Year (gr) tonnes)

1 Rainbow Trout 1 24 9.0 1.25 600 1,101

2 Arctic Char 1 24 9.0 1.25 600 1,101

3 Murray Cod 1 24 9.0 1.25 800 756

4 Jade Perch 1 24 9.0 1.25 800 756

5 a: Tilapia 2 48 4.8 2.50 600 5,842 for fresh market 5 b: Tilapia 8 192 6.0 2.00 900 16,862 for filleting 6 Barramundi 3 72 8.0 1.50 700 3,334

7 Silver Catfish 2 48 6.0 2.00 600 2,016

8 Catfish 3 72 1.5 8.00 250 12,700

9 Ikan Sepat 2 48 5.0 2.25 150 3,572

10 Nile Perch 3 72 9.0 1.25 600 3,302

11 Marble Goby 1 24 12.0 1.00 1200 339

12 River Carp 2 48 10.0 1.20 1500 1,654

30 720 53,335

Page 58 Construction Costs

4 HECTARE PROJECT (450,000 ft2) A TYPICAL INVESTMENT BUDGET FOR A 4 MODULE HYDRONOV AQUACULTURE SYSTEM

GROWING SYSTEM: FISH Production RESPONSIBLE # / Pool # / Project

CONCRETE FOR POOL STURCTURE HYDRONOV 1 96 POOL LINER HYDRONOV 1 96 WATER CIRCULATION PUMPS HYDRONOV 8 768 UV FILTER HYDRONOV 2 192 DRUM FILTER HYDRONOV 2 192 VORTEX & FECAL TRAP HYDRONOV 2 192 BIOFILTER MEDIA HYDRONOV 2 192 OXYGEN EQUIPMENTS HYDRONOV 2 192 DEGASSING SYSTEM HYDRONOV 2 192 SEPARATION GRILL HYDRONOV 12 1152 RECIRCULATION HEATING / COOLING ecoPHASER 0 NEW WATER DISTRIBUTION HYDRONOV 2 192 RECIRCULATION PIPING & FITTINGS HYDRONOV 2 192 WALKWAY GRATING HYDRONOV 1 96 TOTAL THIS SECTION 13,749,120 GENERAL PURPOSE EQUIPMENT ELECTRICAL DISTRIBUTION FOR EQUIPMENT HYDRONOV 1 system PRIMARY WATER TREATMENT HYDRONOV 1 system BACTAPUR, EGGS, FEED, (3 MONTHS) HYDRONOV WATER DISTRIBUTION HYDRONOV 1 system

O2 TANK RENTAL POOL DRAINAGE HYDRONOV 1 system EQUIPMENT INSTALLATION & START-UP HYDRONOV CASUAL LABOUR FOR SYSTEM INSTALLATION HYDRONOV SPECIALIZED INSTALLATION HYDRONOV COMPUTER CONTROL & MANAGEMENT HYDRONOV 1 PURIFICATION POOLS HYDRONOV 6 HATCHERY & LABORATORY HYDRONOV 1 system PRE-PRODUCTION POOLS HYDRONOV 6 TRANSPORT & MISCELLANIOUS HYDRONOV AUTOMATIC FEEDING SYSTEMS HYDRONOV 4 systems TOTAL THIS SECTION 5,586,000 TECHNOLOGY & TECHNICAL SUPPORT DESIGN & CONSTRUCTION DRAWINGS HYDRONOV Included EQUIPMENT SELECTION & BUYING HYDRONOV PROJECT MANAGEMENT & TECHNICAL SUPERVISION HYDRONOV PRODUCTION START-UP & 1 YEAR SUPPORT PERIOD HYDRONOV TOTAL THIS SECTION TOTAL GROWING SYSTEM & PRODUCTION SUPPORT 19,335,120

BUILDING & INFRASTRUCTURE MAIN WATER SUPPLY & STORAGE LOCAL Budget ELECTRICAL TRANSFORMER ecoPHASER Budget ELECTRICAL MAIN PANEL & BACK UP GENERATOR ecoPHASER Budget SITE PREPARATION & DRAINAGE BEP Engineering Budget FISH PRODUCTION BUILDING BEP Engineering Budget SERVICE BUILDING BEP Engineering Budget CONCRETE & INSTALLATION BEP Engineering Budget OPTIONAL WATER HEATING/COOLING ecoPHASER Budget

OPTIONAL O2 GENERATOR ecoPHASER Budget PROCESSING & PACKAGING EQUIPMENT ecoPHASER Budget COOLING, FREEZING, SMOKING EQUIPMENT ecoPHASER Budget SLUDGE WATER PROCESSING ecoTECH Budget TOTAL THIS SECTION 4,680,000 4 HA Fish Project Investment Costs $ 24,015,120

Page 59 Productivity & Profit by Type of Fish

IN THESE EXAMPLES, 4 SPECIES ARE DEMONSTRATED FOR PRODUCTIVITY AND PROFIT PER TYPE. FROM THE MIX DECIDED FOR THE FACILITY, FULL FEASIBILITY CAN BE DETERMINED. xamples: Hereunder are current performance forecasts based on actual results, for a hypothetical 4 Emodule system using HydroNov proprietary fish rearing technology.

FISH RECIRCULATION TECHNOLOGY FISH RECIRCULATION TECHNOLOGY TYPICAL PRODUCTION COSTS / ($US) TYPICAL PRODUCTION COSTS / ($US) 1 module per year of production 1 module per year of production product/species MODULE TROUT 600 Grams product/species MODULE ARCTIC CHAR 1 kg. DIRECT COSTS PER PRODUCTION POOL DIRECT COSTS PER PRODUCTION POOL

WATER PER POOL M3 160 WATER PER POOL M3 160 PRODUCTIVITY/M3 #KG 450 PRODUCTIVITY/M3 #KG 365 #KG #KG POOLS 1 POOLS 1 PER POOL / YEAR #KG 72,000 PER POOL / YEAR #KG 58,400 #FISH 120,000 #FISH 58,400 PER HA / YEAR #KG 1,728,000 Eu. Exchange Rate PER HA / YEAR #KG 1,401,600 Eu. Exchange Rate 1.486 1.486 UNIT UNIT ITEMS QUANTITY COST USD ITEMS QUANTITY COST USD COST COST FINGERLINGS (Units) $0.18 132,000 $23,538 FINGERLINGS (Units) $0.30 64,240 $19,092 FEED (KG) $1.49 79,200 $117,691 FEED (KG) $1.49 70,080 $104,139 ELECTRICITY (kW/Hr) $0.10 300,000 $31,206 ELECTRICITY (kW/Hr) $0.10 300,000 $31,206 OXYGEN (kH/Hr) $0.10 30,855 $3,210 OXYGEN (kH/Hr) $0.10 30,855 $3,210 HEATING (per cubic metre) $0.52 20,000 $10,402 HEATING (per cubic metre) $0.52 12,000 $6,241

TOTAL DIRECT COSTS PER YEAR $186,047 TOTAL DIRECT COSTS PER YEAR $163,888 Costs per kilogram of sales this fish product $2.58 Costs per kilogram of sales this fish product $2.81 LABOUR & TECHNICAL SUPERVISION $29,411 LABOUR & TECHNICAL SUPERVISION $25,076 Labour cost per kilogram of sold production $0.41 Labour cost per kilogram of sold production $0.43 COST OF OPERATIONS (Total Cost of Cash‐flow)** $215,458 COST OF OPERATIONS (Total Cost of Cash-flow)** $188,964 All‐in cost of production pr kg. TROUT 600 Grams $2.99 All-in cost of production pr kg. ARCTIC CHAR 1 kg. $3.24 **= Excluding sales & marketing costs **= Excluding sales & marketing costs SELLING PRICE per KG $5.20 SELLING PRICE per KG $5.94 TOTAL SALES PER POOL PER YEAR $374,472 TOTAL SALES PER POOL PER YEAR $347,130 GROSS PROFIT (CASH FLOW $159,014 GROSS PROFIT (CASH FLOW MARGIN PER POOL PER YEAR) $158,166 MARGIN PER POOL PER YEAR) NUMBER OF POOLS THIS TROUT 600 24 NUMBER OF POOLS THIS ARCTIC SPECIES & PRODUCT TYPE Grams 24 GROSS PROFIT ‐ THIS SPECIES & TROUT 600 SPECIES & PRODUCT TYPE CHAR 1 kg. $3,816,339 GROSS PROFIT - THIS SPECIES & ARCTIC PRODUCT TYPE Grams $3,795,975 PRODUCT TYPE CHAR 1 kg. INDIRECT & OVERHEAD COSTS Amortization # years (straight line) 20 INDIRECT & OVERHEAD COSTS Amortization $8,916,000 $445,800 Amortization # years (straight line) 20 Amortization $8,916,000 $445,800 Factory Overhead $185,750 ** Sales & Administration $185,750 Factory Overhead $185,750 INTEREST & FINANCE COSTS 6% $6,687,000 $401,220 ** Sales & Administration $185,750 6% $2,229,000 $133,740 INTEREST & FINANCE COSTS 6% $6,687,000 $401,220 INDIRECT & OVERHEAD COSTS TOTAL $1,352,260 6% $2,229,000 $133,740 INDIRECT & OVERHEAD COSTS TOTAL $1,352,260 NET PROFIT FOR 1 TROUT 600 $2,464,079 NET PROFIT FOR 1 ARCTIC product/species MODULE Grams $2,443,715 product/species MODULE CHAR 1 kg. Productivity & Profit by Type of Fish

he figures shown are in US Dollars ($USD). The net profit per annum in this 96 pool example, (rearing 4 species of proven saleable fish) is $9,403,610 for ROI of 105.5% per annum with a 25:75 equity to debt ratio, Tor, allowing for full amortized cost, ROI of 2109% during the 20 year life of the project. After that time, an annual return of over $18 m, or 51% ROI will occur for the duration of the project life. We expect a refit at 25 years, plus expansion growth during the project not included here.

FISH RECIRCULATION TECHNOLOGY FISH RECIRCULATION TECHNOLOGY TYPICAL PRODUCTION COSTS / ($US) TYPICAL PRODUCTION COSTS / ($US) 1 module per year of production 1 module per year of production product/species MODULE BARRAMUNDI 600 Grams product/species MODULE TILAPIA 600 Grams DIRECT COSTS PER PRODUCTION POOL DIRECT COSTS PER PRODUCTION POOL

WATER PER POOL M3 160 WATER PER POOL M3 160 PRODUCTIVITY/M3 #KG 300 PRODUCTIVITY/M3 #KG 400 #KG #KG POOLS 1 POOLS 1 PER POOL / YEAR #KG 48,000 PER POOL / YEAR #KG 64,000 #FISH 80,000 #FISH 106,667 PER HA / YEAR #KG 1,152,000 Eu. Exchange Rate PER HA / YEAR #KG 1,536,000 Eu. Exchange Rate 1.486 1.486

ITEMS UNIT COST QUANTITY COST USD ITEMS UNIT COST QUANTITY COST USD FINGERLINGS (Units) $0.15 117,333 $17,436 FINGERLINGS (Units) $0.22 88,000 $19,615 FEED (KG) $1.19 76,800 $91,300 FEED (KG) $1.49 57,600 $85,594 ELECTRICITY (kW/Hr) $0.10 200,000 $20,804 ELECTRICITY (kW/Hr) $0.10 200,000 $20,804 OXYGEN (kH/Hr) $0.10 20,000 $2,080 OXYGEN (kH/Hr) $0.10 20,000 $2,080 HEATING (per cubic metre) $0.52 20,000 $10,402 HEATING (per cubic metre) $0.52 20,000 $10,402

TOTAL DIRECT COSTS PER YEAR $142,022 TOTAL DIRECT COSTS PER YEAR $138,495 Costs per kilogram of sales this fish product $2.22 Costs per kilogram of sales this fish product $2.89 LABOUR & TECHNICAL SUPERVISION $26,314 LABOUR & TECHNICAL SUPERVISION $23,219 Labour cost per kilogram of sold production $0.41 Labour cost per kilogram of sold production $0.48 COST OF OPERATIONS (Total Cost of Cash-flow)** $168,336 COST OF OPERATIONS (Total Cost of Cash-flow)** $161,714 All-in cost of production pr kg. TILAPIA 600 Grams $2.63 All-in cost of production pr kg. BARRAMUNDI 600 Grams $3.37 **= Excluding sales & marketing costs **= Excluding sales & marketing costs SELLING PRICE per KG $4.83 SELLING PRICE per KG $6.69

TOTAL SALES PER POOL PER YEAR $309,088 TOTAL SALES PER POOL PER YEAR $320,976

GROSS PROFIT (CASH FLOW GROSS PROFIT (CASH FLOW $140,752 $159,262 MARGIN PER POOL PER YEAR) MARGIN PER POOL PER YEAR) NUMBER OF POOLS THIS TILAPIA 600 NUMBER OF POOLS THIS BARRAMUNDI 24 24 SPECIES & PRODUCT TYPE Grams SPECIES & PRODUCT TYPE 600 Grams GROSS PROFIT - THIS SPECIES & TILAPIA 600 GROSS PROFIT - THIS SPECIES & BARRAMUNDI $3,378,048 $3,822,289 PRODUCT TYPE Grams PRODUCT TYPE 600 Grams INDIRECT & OVERHEAD COSTS INDIRECT & OVERHEAD COSTS Amortization # years (straight line) 20 Amortization # years (straight line) 20 Amortization $8,916,000 $445,800 Amortization $8,916,000 $445,800

Factory Overhead $185,750 Factory Overhead $185,750 ** Sales & Administration $185,750 ** Sales & Administration $185,750 INTEREST & FINANCE COSTS 6% $6,687,000 $401,220 INTEREST & FINANCE COSTS 6% $6,687,000 $401,220 6% $2,229,000 $133,740 6% $2,229,000 $133,740 INDIRECT & OVERHEAD COSTS TOTAL $1,352,260 INDIRECT & OVERHEAD COSTS TOTAL $1,352,260 NET PROFIT FOR 1 TILAPIA 600 NET PROFIT FOR 1 BARRAMUNDI $2,025,788 $2,470,029 product/species MODULE Grams product/species MODULE 600 Grams McBride 2011

Productivity & Profit by Type of Fish

t is proposed to implement a first phase of 4 Ha with 4 growing modules to demonstrate the potential of the technology. This first phase should focus on well established fresh Iwater species as Arctic Char, Barramundi, Trout, Yellow & Silver Perch, Tilapia, Catfish, and introduce progressively local and other high value species which may need to be further adapted to aquaculture.

Once technology is well demonstrated and market penetration strategy established, phase 2 can then take place following market needs and investment capital available First phase construction can start 2 months after funds confirmation and be completed within 12 months. Production of fast growing species can reach market within 4 months, making it a total of 1 year after contract signature.

GENERAL COMMENTS ON THE ECONOMIC VALUE AND MARKET POTENTIAL OF DIFFERENT FISH SPECIES 1. Rainbow Trout - A classic for aquaculture production, already produced by several small and medium scale growers; not a novelty anymore. 2. Arctic Char - This fish is said to be a cross between a Salmon and a Rainbow Trout, is better tasting than both, and is progressively replacing Salmon as a healthier alternative. It is already being produced in Canada but in relatively small volume. Market prospect is very good 3. Murray Cod - This fish is widely produced from aquaculture in Australia. Highly popular fish, it carries an ex-farm price of $ 8 – A$ 10 per kilo,depending on the season. It has an appeal like the marine cod fish. Murray Cod >>>>> 4. Jade Perch - This fish is also from Australia. It is considered as the most healthy fish containing more Omega-3 fish fatty acid than any other fish, as much as 2 % per 100 grams of fish meat. It is also a good tasting fish. 5. Tilapia - This is the most popular fish in the world. It is grown in several countries with different results and outlook. While in North America it is considered as a high-end fish with similar pricing as Trout and Salmon, in some Asian countries it has suffered adverse reputation as having an “ unsavory earthy smell “ and being grown in unhygienic conditions. The poor growing conditions is the reason for the problem in those countries, effectively producing that bad taste. Already produced in good volume by North American aquaculture industry, it requires warm water to develop well. 6. Barramundi - Also known as Sea bass, this fish is a relatively new introduction in aquaculture production and is gaining rapid acceptance as a good value fish. 7. Silver Catfish- A high priced fish on some Asia markets, it can be a niche market fish with a good pricing if properly marketed. 8. Small catfish - A highly popular fish in Malaysia, this fish is sold at 250 grams only, making it a very fast producer. Presented as an example of a small fish type; local equivalent may be identified for china market. 9, 11 & 12 are typical south Asian species. The species will change to marketable North American species. 10. Nile Perch It is a very popular fish in Middle East countries and Egypt. This fish is also in good demand in EU, fetching high prices.

Page 62 ilviculture is the practice of controlling the establishment, growth, composition, health, and quality of forests to meet diverse needs and values of the many landowners, Ssocieties and cultures. The name comes from the Latin silvi- (forest) + culture (as in growing). Silviculture the growing of trees instead of field crops as in conventional agriculture (silva, ager, and cultura are the Latin words for woodland, field, and cultivation, respectively).

Why there is a need for large volume seedling production During the past several years, the West has been under a drought situation and the conifers have been attacked by Mountain Pine Beetle. Most of the forest land base is federal lands in the West and the trees in these lands have been poorly managed due to many reasons--court cases stopping cutting, federal internal rules, or just the hope of a cold winter to kill the pests.

The epidemic has grown to be so large that the decision has been made now to let it run its course. The mortality has been great but there is still a reluctance to salvage the dead timber, to cut the amount of financial losses. However, the threat of holocaustal fires has cleared large stands of dead and live timber.

This appears to be great news for the forestry waste-to-energy companies like ecoTECH, of course, but it is not how the Company can function with a long term energy contract. The power station is planned around using the surplus residues from normal logging, in a cyclic and sustainable fashion. The bonanza of dead trees will take years to reduce, but in the meantime there is a desperate need to replace over 25% of the forest, providing a market for replenishment seedlings that will take decades to fill.

Page 63 McBride 2011

General Plan

very year, British Columbia Forestry Division operatives gather seeds from the Etree orchard forests and send them to propagation facilities and greenhouse nurseries where they are sprouted and grown into seedlings and the number of seedlings requested are returned to the forests for the replenishment planting program. It has, until recent years been a balanced and equitable arrangement.... then a natural disaster, in the shape of the Northern Bark Beetle epidemic, interfered with the balance in British Columbia and all the northwestern provinces and states.

Now there are tens of millions of dead or dying trees, recently officially calculated to now exceed 1 billion trees in British Columbia alone, too many to replace with current resources and many decades of planting wasted. The dead trees are a fire fuel hazard, threatening holocaustal crown fire hazards that are far from the prescribed burns that are set to induce certain species to deliver their seeds. Singeing the trees for propagation is one thing; dealing with dry, dead trees and windfall debris is entirely another, so forestry authorities are clearing firebreaks and cutting down trees in the hope that an exceptionally cold winter will halt the advance of the epidemic.

We see that there is a tremendous opportunity available to build a seedling propagation business.

As there is no precedent for a contract hydroponic seedling producer, we believe that this unique facility will be the first of its kind. Hydroponic seed propagation is not new and there are some pictures of facilities on these pages, so with the ecoGROW-HydroNov systems already planned we are contemplating the build of a major greenhouse complex to assist with the need for seedlings for the decades to come.

HydroNov and ecoGROW (ecoTECH Energy Group subsidiary) are prepared in every way to obtain funding. The expertise will be provided as described at the beginning of this brochure.

A HydroNov Installation

Page 64 Planned Method

he Company plans to use a hydroponic growing technique, either with pebble base pots in floating rafts per the HydroNov model shown in the beginning of the book or in a Ttiered cascade system, to maximize light. To achieve “wintering” of the seeds year round to induce sprouting in continuous batches, the ecoTECH Einstein-Szilard Technology cold store, also used for fish and produce, will be deployed.

The simplified diagram above shows the essence of the method. The cascade system could look something like this:

Page 65 McBride 2011

Other Aspects of the ecoTECH Initiative

t is well known that the forestry industry is in a serious state. Initiatives like ecoTECH’s forestry residue fuelled combined heat and power (CHP) generation facilities and the use Iof dry, dead or unmarketable trees to make torrified briquettes to give straight equivalency for coal and thereby radically reduce air emissions in coal fed power generation, will provide the difference between profit and loss for logging operations.

However, the Company would like to go a stage further with its forestry operations that will provide income and assist the balance of the Robson Valley economy.

INVASIVE SPECIES REDUCTION: The Company would like joint venture with a first nations band and together use First Nations preferred contractor status to secure a contract to fall and remove invasive tree species, such as Russian Olive and perhaps replace them with species approved by the MOF and even propagated in our own facility. The Band we have in mind has trained and skilled forestry operatives that can effect the program in British Columbia, and Alberta.

REPLACING PINE OR PROPAGATING IMPROVED STRAINS: The Company is expecting to liaise with Ministry of Forests and Range officials about the types of seedlings to replace the dead pines without further attacks. Hopeful that federal and local scientists can eventually produce a beetle resistant strain, (one that is not poisoned by the beetle’s symbiotic fungus, or carries a sap-borne fungicide), we expect that eventually new super pines will be grown in our facility and our forests.

However, in the meantime we expect to be producing large numbers of other high value alternative species for the replanting program.

ECONOMICS OF THE SILVICULTURE PLAN: At this time there has to be detailed research into the opportunities and risks of this aspect of the program. Although the Horticulture and Aquaculture projects are based on years of positive results that can be considered factual for the main program and are expected to proceed in McBride, the silviculture initiative will require much input from provincial and federal officials to create a full feasibility.

Therefore no financial forecasts are in this section of the plan.

Page 66 Types of Greenhouses

coTECH’s preferred greenhouse manufacturer is probably the most successful large ecommercial greenhouse building organization in the northwest. Prins Greenhouses has been building greenhouses in British Columbia since 1981. Prins expanded its market area into Alberta, Washington, Oregon, and California, so is fully aware of the climatic nuances of areas like McBride, being expert in snow loading and varied ambient control systems.

Teamed with the Hydronov expertise, ecoTECH is looking forward to being able to develop tall, all glass units, with enough versatility to manage multiple species arrangements.

BEP Engineering Inc. have a range of super insulated and corrosion resistant steel buildings for the aquaculture systems.

PRINS GREENHOUSES:

Page 67 McBride 2011

HydroNov Completed Projects

Location Size Production Year

Bois-Franc, Ham-Nord, Canada 1.0 Hectares Boston Lettuce 2008 Livingston, Tennessee, USA 5.0 Hectares Boston Lettuce 2007 Drummondville, Québec, Canada 1.0 Hectares Boston Lettuce 2006 Shenyang, China 1.0 Hectares Boston Lettuce 2005 Hiroshima, Japan 1.5 Hectares Boston Lettuce 2004 Leon, Mexico 5.2 Hectares Boston Lettuce 2003 Rainbow Trout, Boston Shenyang, China 1.0 Hectares Lettuce, Strawberry, Green 2003 Peppers Dalian, China 1.5 Hectares Boston Lettuce 2002 Shanghai, China 1.5 Hectares Boston Lettuce 2001 Mirabel, Quebec, Canada 2.3 Hectares Boston Lettuce 2000 Beijing, China 1.5 Hectares Boston Lettuce 1999 Shenzhen, China 1.5 Hectares Boston Lettuce 1998 Orlando, Florida, USA Boston Lettuce 1995 Mirabel, Quebec, Canada 2.0 Hectares Boston Lettuce 1992 Mirabel, Quebec, Canada 2.7 Hectares Boston Lettuce 1987 Quebec, Canada Boston Lettuce 1982

HydroNov Current New Developments

Location Size Production Year

Abidjan, Ivory Coast 1.0 Hectares Tilapia, Catfish 2010 Beijing, China 1.0 Hectares Arctic Char, Barramundi 2009 Shanghai, China 1.0 Hectares Tilapia & Others 2010 Shenyang, China 1.0 Hectares Boston Lettuce 2010

Page 68 Contacts

ecoTECH Energy Group (Canada) Inc. 101 – 26633 Gloucester Way Langley, BC V2S 6E5 Ph: 604 288-8263 Fx: 604 357-1363

ecoTECH Energy Group Incorporated 800 Fifth Avenue, Suite 4100 Seattle, Washington 98104 www.ecotechenergygroup.com www.etwm.ca www.ecophaser.ca www.ecogrow.ca e-mail: [email protected] www.hydronov.com

Margaret Graine STI PFP Economic Development Officer McBride, British Columbia, CANADA telephone: 1-877-569-7556 e-mail: [email protected]

1.6 ecoTECH Energy Group Incorporated.

#101 - 26633 Gloucester Way, Langley, British Columbia CANADA, V4W 3S8 tel; +1 604 288 8263

© Copyright C. Victor Hall, & ecoTECH Energy Group Incorporated October 2010. All rights reserved