Apex Tidal Power

A concentrated flow of water is naturally drawn through the narrow side of our venturi housing, with extra water flowing to the sides. A low pressure zone is thus created behind the venturi that accelerates the water flow across the turbine.

Forward Looking Statements

• This presentation offers forecasts and projections based on assumptions that are outlined in the material and derived from reputable sources.

• While risks are highlighted and mitigation strategies are offered, investors should be advised that risks may prove greater than expected and unforeseen risks may arise. Mitigation strategies may also prove less effective than anticipated.

• Despite prudence and caution, costs and hazards might escalate to the point of making the project economically unviable, which could jeopardize profits, nullify returns, or even result in the loss of funds invested.

Company Overview

• We are a green energy company with patented technology for harnessing the power of tidal currents at a cost that can be more economical than carbon power sources.

• We seek to deploy 3MW commercial-scale, profit-generating turbines in Scotland in 2016.

Management Team• Aaron Davidson & Craig Hill, Patented Inventors

– For over 15 years Davidson (the engineering mind) and Hill (the building mind) have devoted their efforts to designing, building, testing, and refining versions of their venturi turbine for capturing the power of water and wind currents in order to bring abundant, clean, green energy to the world.

– The duo established a world record with the performance of their turbine design.– The inventors have won numerous awards and grants for their work.

• Tim Vos, Seasoned Marketer– After careers in music, computers, teaching, and publishing, Vos has focused his creative

energies in recent years on bringing innovative alternative energy solutions to market. – Believing in the genius of collaboration to solve complex problems, Vos has cultivated

alliances with gifted inventors to deliver viable solutions that promise value to investors and benefit to people around the world.

• Offshore Energy, Deep Sea Experts– Across the globe, Offshore Energy has managed projects worth billions of dollars, where their

wealth of experience working in deep-sea environments has delivered bankable results for their clients.

Opportunity

• We capture over 3 times the power from the same tidal current as our competitors

• Scotland offers fast tidal currents with 100 times the power density of most tidal currents around the world

• The UK is paying a 5-fold premium for tidal energy over carbon energy, backed by 10-year Power Purchase Agreements

Competitive Landscape

• Virtually all of our competitors deploy turbines in free flowing water with no focusing mechanism. As a result, over 3/4 of the kinetic energy in the water flows around these turbines uncaptured.

• The UK has developed the world’s most advanced tidal sector, where Atlantis Resources, DP Marine Energy, and OpenHydro are the dominant players.

• Investment in the sector has lagged, because costs for our competitors have remained stubbornly high, leaving risk largely unrewarded by returns.

Company Strategy

• Develop tidal energy projects that deliver premium power at a premium price

• Streamline deployment and maintenance

• Establish market dominance with patented technology that captures more power for less

Competitive Advantage

• Patented flow-focusing design• Inexpensive, modular components• Alliance with manufacturer of low-

maintenance, broad-range power generators

• Low-cost, low-risk deployment strategies

Risk Mitigation Strategies

• De-risk through innovation. Build a commercial array at demonstration cost.

• Already tested at 1.2m and 2.4m sizes to confirm scalability of power generation

• Government grants are available to grow employment and capacity

• Lloyd’s of London marine risk underwriting

Specific Risks and Mitigation• Permit Delays – may take longer than expected.

– Leverage contacts to expedite approvals. • Tidal Force Magnitude – may be stronger than expected.

– Plan for greater forces than measured. • Engineering Finite Element Analysis – materials may fail.

– Engineering firm bears indemnity.• Contractual Default – permits and PPAs may not be honored.

– Obtain bonding and insurance.• Currency Exchange Fluctuations – low Canadian dollar may rebound.

– Hedge or adjust expectations.• Harsh Environment – debris, corrosion, or pitting may damage turbine.

– Low cost of modular replacement parts mitigates risk.• Fish Kill or Entanglement – may present hazard to aquatic life.

– Slow revolution of turbine (under 12 RPM at peak) reduces hazard.• Lower Cost Competition – other technologies may arise.

– PPA with creditworthy offtaker assures income for duration of contract.

Technology

• Hydrodynamic design channels and focuses waterflow, boosting power capture more than 3-fold over competition

• Self-yawing feature keeps turbine at optimal incidence to current

• Waterflow around the turbine creates a low pressure zone at rear that concentrates flow across the turbine

Economics• On a 3MW deployment in a 3 m/s peak tidal stream, we can

generate about 6M kWh per year, yielding gross revenues of £1.5M. After annual operation and maintenance costs of £300K, we anticipate net annual revenues of £1.2M, or £400 per kW of generating capacity. This represents a 20 percent annual return on a £6M project cost. After debt costs, equity investors would share in 30 percent profits.

• Our projections are based on a 10-year Power Purchase Agreement (PPA) at £0.25 per kWh available from Smartest Energy, the UK’s largest provider of alternative energy PPAs.

• Power Purchase Agreements assure a 5-fold premium on up to 30 MW of tidal energy for 10 years.

Future Growth Plans

• We deploy 3 MW in Year 1• 30 MW by Year 3• 300 MW by Year 5

Liquidity / Exit Strategy

• Pay investors hearty returns from Year 1 to Year 10.

• 10-year contractual income stream from PPA could be sold at minimal discount, given creditworthiness of government-backed utility as power offtaker

Capitalization of Company

• $12M to deploy our first 3 MW array • $5M equity, $4M debt, $3M grants• Patent Holding Company provides

license for technology• 40-percent equity investors will receive

50 percent of gross profits

Summary

• Patented, flow-focusing design delivers triple the efficiency and triple the profits of tidal industry, setting our technology on a path to market dominance

• 5-fold revenues assured by 10-year PPA• Share annualized 30 percent return with

investors• Premium power at premium prices yields

premium profits

Contact

Tim Vos

(403) 875-2121 timvosonline@yahoo.comCalgary, Alberta, Canada