Quadrise Fuels: who we are Quadrise Fuels is the licensor and supplier of Our Mission unique and innovative upgrading technology, To be the world's leading oil-in-water emulsion MSAR®, in the downstream oil sector. MSAR® is fuels business, providing our proprietary technology a technology which produces a lower cost and and services to enable our customers to derive cleaner synthetic Heavy Fuel Oil (HFO) for marine, significant economic and environmental advantages power and industrial applications. We offer fully delivered by the production and use of MSAR® integrated solutions for oil refiners and end users. synthetic fuel oil products.

What is MSAR® – Multiphase Superfine Atomised Residue: • MSAR® is proven, proprietary oil • MSAR® fuel is a low viscosity liquid at • Our technology and IP is underpinned refinery upgrading technology room temperature, which makes it by our long term relationship with offering material economic and easier to handle and reduces heating AkzoNobel, one of the world’s leading environmental benefits to MSAR® costs during storage, transport and use specialty chemicals companies. producers and consumers. in comparison to HFO.

Our strategic approach Delivering value globally Our strategy is to work with Marine leading global companies • Initial focus supporting commercial roll out with Mærsk (fleet of circa 600 owned and managed in the refining, shipping and vessels) 9.5M mt/a (6% of marine fuel market). power-utility markets to develop, • Expand into other commercial shipping simultaneously, the capacity to operators through common fuel hubs. both produce and consume Power • Initial focus commercial roll-out in the Kingdom MSAR® emulsion fuels on a of Saudi Arabia – 51M mt/a oil for Power commercial scale. generation (42% of power market). • Expand selectively into other markets in Middle East and Asia. Areas of focus: Complimentary Opportunities • Refinery power and steam opportunities. Major fuel oil hubs • Synergies of working collaboratively with and refining centres refiners at global fuel hubs to provide Major centres of oil-fuelled MSAR® for Marine & Power sectors. power generation • Industrial opportunities.

MSAR® Technology – driving value delivery

Quadrise license and supply MSAR® Provides refiners with a low-cost, rapidly Provides HFO consumers with tangible cost technology and additives to produce deployed upgrading solution for HFO in less savings and environmental benefits a stable ‘oil-in-water’ emulsion fuel than 12 months How it works: Key benefits: Key benefits: 3 Tiny droplets of extra-heavy hydrocarbon are 3 Water and chemicals replace premium fuels. 3 Stable, lower cost synthetic HFO. dispersed in water using proprietary blending 3 Significant value is added. 3 Enhanced combustion and lower emissions processes and additives. 3 MSAR® viscosity is lower. of Nitrogen Oxides – NOx, and Particulate Matter – PM. 3 Modular MSAR® systems. The market opportunity Latest news Substantial Progress for Quadrise in 2016: The global HFO market is a US$106 billion per annum market that exceeds 2016 has been a definitive year for 455 million tonnes annually. Quadrise is focused on two major sectors: Quadrise – significant progress has been made in our core marine and power generation projects:

28% July INDUSTRIAL/OTHER Marine operational trial with Cepsa and Mærsk commenced, progressing as planned: a successful outcome is a precursor to concluding commercial HFO market: 45% contracts for marine operations in 2017. 455 million MARINE tonnes pa. August Kingdom of Saudi Arabia MOU signed, major ‘Production to Combustion’ trial 27% expected to commence in 2017. POWER October £5.25 million raised from placing and open offer (2.5 times oversubscribed). Power Generation Marine MOU with YTL PowerSeraya extended. ($28bn pa.) ($48bn pa.) Main consumers: Middle East and Asia Concentrated in 5 main sales hubs November • Partnership with University of Surrey Key projects: Power MSAR® – Key projects: Marine MSAR® Spain renewed – providing cost-effective Kingdom of Saudi Arabia (KSA) (Cepsa and Mærsk) access to world-class research • Replace oil used for power with MSAR® • 'Operational Trial' contracts with Cepsa capabilities. – total oil use for power generation is and Mærsk signed Q4 2015. • Long-term Akzo Nobel partnership currently 51 mtpa. • Fast-track operational commercial-scale agreements recently extended to, • Significant imports of distillate products MSAR® facility installed within 9 months. at least, November 2018. and subsidies for domestic products • A 6KBPD MSAR® system is installed and energy sales. at the Cepsa 240,000 BPD Gibraltar • 2015 fuel mix: Gas 42%, Crude 32%, San Roque Refinery. Throughout the year HFO 12%, Diesel 13%. • Quadrise is responsible for MSAR® system Continued investment in QRF, our UK • National imperative to reduce domestic installation, commissioning, production Research, Development and Innovation crude oil use. and quality control. facilities, to underpin commercial • Power facilities dominated by SEC (62%). • MSAR® production and Mærsk vessel testing operations and IP. • Recent MOU signature is the culmination progressing well. of extensive work with clients and local • 'Letter Of No Objection' from engine partner over several years. manufacturer anticipated in 2017. • Working actively on engineering activities • Commercial supply opportunity pending Looking forward in anticipation of commercial agreements in operational and LONO trial success 1H 2017 and trial commencement 2H 2017. and contracts. Poised to migrate to commercial revenues during 2017.

Our Executive Management Team

Mike Kirk Hemant Thanawala Jason Miles Executive Chairman Finance Director Chief Operating Officer