Introducing a Groundbreaking Quantum Leap EV Innovation

Prospectus for ReGen-X

Potential Difference Inc.

BackgroundGiven the uncertainty of the financial state of the world today, it is a challenging time for introducing new technology.

Introducing innovations that represent a quantum leap may be even more daunting, for by their very nature, these innovations push the boundaries of accepted norms.

Occasionally a quantum leap technological innovation causes considerable disturbances not only in the existing technology, but may even challenge standardized views. For even in the scientific world, where there is a lack of understanding or explanation of phenomena, there is a resistance when a scientific foundation’s building block is changed.

However the history of human technological advancement is the story of groundbreaking quantum leap innovations and technologies that shi established paradigms to a higher level and build new foundations of human knowledge.

A Lab in OttawaIn 2009 a researcher named ane Heins, based out of the University of Ottawa, was working to improve the design and efficiency of electrical generators. In the course of his experimentation, he noted a new coil configuration that produced unexpected and dramatic performance. Skeptical but curious, he disassembled the unit and rebuilt it, re-tested and the results were the same. He repeated this process many times, continuing to look for what he believed must have been a basic error on his part.

However further experiments only served to confirm his initial improbable results. Despite the confirmation, it remained difficult to rationalize due the counter intuitive nature of the anomaly.

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Still convinced he had made a simple error, Heins published his demonstration and experiments online and sought out third-party confirmation and explanation for five years. From Toronto to Virginia, Pennsylvania to Boston, Colorado to Russia and full circle back to Ottawa, with over a quarter of a million dollars spent on evaluations and travel and aer hundreds of demonstrations—the results were always the same. e innovation was met with hope and excitement equally balanced with skepticism and caution.

What began then was an extraordinary litany of august researchers, institutions and companies who began to pay great attention to Heins’ lab and Potential Difference Inc’s new cutting edge innovation.

Interested Parties e following is a list of agencies and companies that have expressed real interest in the groundbreaking innovation; many of these have come to PDI’s lab to see the actual technology prototypes:

• Aquasphere • BMW • California Diesel and

Power • Canadian Association for

the Advancement of Science

• Canadian Journal of Physics

• Canadian Journal of Physics

• Canadian Space Agency • Chrysler • Coda Automotive • CODA Automotive • Concordia University

• Defense Research and Development Canada Electric Mobility Canada

• Electron Energy Corporation

• EV WORLD • GM • Google • Green Tech Solutions • Hero Electric • Jaguar-Land Rover • Liberty e-cars • Magna International • Mercedes Benz • MIT • NASA

• National Research Council of Canada

• Neil Young • Nissan • Philips • Professional Engineers of

Ontario • Rocky Mountain Institute • Russian Academy • Technomoteur • Texas A&M University • University of Ottawa • University of Toronto • US Air Force • US Army • Vestas Wind Turbines

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Over the next few years, PDI refined the work to the point where today, early stage patents have been applied for and a complete understanding of the technology is now in hand with new patents pending.

The TechnologyAll generators create electricity by rotating magnets past coils of wire, thereby inducing an electric current in the wires. In all conventional generators, this also creates internal counter rotational forces which resist the rotation of the magnets, thus reducing the efficiency of the system. However, the breakthrough design of PDI’s new coils altered the timing, magnitude and direction of these internal forces so that, rather than resisting, they assisted the operation of the generator instead. Furthermore, the contribution of these internal complementary rotational forces actually increased as more load was placed on the generator. us, input power to drive the generator is measurably reduced even as output power to the load is increased. is input power is reduced regardless of whether it is provided by batteries (as in electric vehicles), a gasoline engine (as in hybrid vehicles), diesel fuel (as in diesel generators), or wind and water (as in turbine generators).

is means greater power (and range) with less batteries, gasoline, diesel, wind or water. With the integration of ReGen-X technology, the efficiency and effectiveness of all these power systems can be significantly increased, with corresponding decreases in terms of cost, complexity and quantity. Electric coils are the basis of virtually every electric motor and generator used in cars, trucks, power generation stations and wind turbines. Regen-X (Regenerative Acceleration Generation Extra-Range) is a technology that directly replaces all these electric coils.

Very simply, compared to existing battery technology, the ReGen-X system uses far less battery power in operation, thereby greatly extending the driving range of an EV (electrical vehicle).

EV 50-80 milesEV with Regenerative Braking 80-120 milesReGen-X Equipped EV with Regenerative Braking 300-400 milesTypical Hybrid Vehicle Electric Range 30 milesReGen-X Equipped Hybrid Vehicle Electric Range 90 miles

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Furthermore, the ReGen-X system can be incorporated into virtually any type of electric generator or motor - regardless of size. ereby making renewable energy technologies, such as wind, hydro, biomass and geothermal substantially far more efficient.

Authenticated ResultsIndependent tests conducted by a National Research Council of Canada scientist in the University of Ottawa’s Power Lab showed that when the 1st generation ReGen-X generator coil was integrated with a standard electric motor - found in today’s electric cars – it needed 40% less input power while delivering over 200% more electric power to the EV’s batteries over the conventional generator coil in identical head to head testing. is is an extraordinary finding and compelled the independent evaluator to exclaim, “is innovation represents the Holy grail for generators.”

While this phenomenon may be difficult to understand, it has been verified repeatedly, including an independent test conducted by MIT, Ottawa University, Electron Energy Corporation, National Research Council of Canada, Magna International, Canadian Association for the Advancement of Science, and Electric Mobility Canada just to name a few.

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e dramatic effect of the new generator innovation was clear and repeatable, and results mirroring Heins' early prototype have now been duplicated by several other researchers around the world including an electrical engineer in Holland: http://www.youtube.com/watch?v=B750RHM9hTc&list=PLA7AF2CA9DE38B1F2&index=1&feature=plpp_video

Significantly, the underlying cause of this effect has also now been mathematically described and modeled by the very same engineer: http://www.youtube.com/watch?v=b9bCAMWetL8&list=PLA7AF2CA9DE38B1F2&index=2&feature=plpp_video

At a recent ReGen-X industry demonstration and documentary 3D film shoot featuring the ReGen-X innovation was shot in Toronto and attended by two independent professional engineers, Mike Brace, Tech Editor of EV World and Mark Anderson of RE Power and Water. Both engineers have provided written endorsements of the innovation below:

ReGen-X 3D Documentary Film Shoot and Industry Demo: http://www.youtube.com/user/aneCHeins?feature=mhee

Mark Anderson RE Power Engineering ReGen-X White Paper: http://slidesha.re/Qqam88

EV WORLD ReGen-X Technology Review: http://evworld.com/blogs/index.cfm?authorid=279

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PDI is now being recommended for National Research Council Industrial Research Funding Assistance.

PDI to National Research Council Tests and Technical Explanation: http://www.slideshare.net/aneCHeins/potential-difference-nrc-report-final

2nd Generation ReGen-XPerhaps the most exceptional aspect of these results is that they are based on the 1st generation ReGen-X coil. e 2nd Generation ReGen-X is a more complex system based on multiple coils integrated into a HERO Electric scooter sidecar. e improvements realized here are singular. ere is a recharge rate measured at over 52% with 70% anticipated.

In short, electric vehicles that incorporate ReGen-X technology will be capable of doubling or tripling their driving range.

Recent Landmarks• BMW will be receiving its 1st generation ReGenX-equipped electric motor prototype once the legal

logistics have been established.

• Jaguar-Land Rover and Liberty e-cars are next in delivery.

• Hero Electric of India is the world’s leading manufacturer of two-wheeled vehicles. Earlier this year, PDI performed a preliminary prototype integration of ReGen-X technology into a HERO Electric scooter. Bench test results indicated an increased range potential of 52% on the first attempt. PDI’s last meeting with HERO Electric’s CEO concluded with PDI providing an introduction to Liberty e-cars of the UK who are the engineering firm responsible for the full ReGen-X scooter integration. PDI / HERO Electric CEO ReGen-X demonstration: http://www.youtube.com/watch?v=_rIYiwF-LyE

• Vestas, the world’s largest wind turbine manufacturer, informed us they have been able to replicate the basic technology at their European facilities using a scaled-down prototype, with confirmed system acceleration and increased generator output.

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• ane Heins and his partners have formed a company called Potential +/- Difference Inc. (PDI) and a pending company called Persistent IP which is to be the primary business development company for all PDI innovations.

Next StepsFollowing a demonstration in July for HERO Electric's CEO, HERO is now planning to consult with Liberty e-cars to discuss scooter integration steps.

PDI will be hosting Liberty e-cars in Toronto, September 11-13th and to begin negotiating licensing contracts and tech transfer shortly thereaer. First steps include HERO Electric ReGen-X scooter integration, Jaguar Land Rover ReGen-X integration and a 30 KW ReGenX prototype for BMW – for BMW is already planning testing:

BMW ReGenX Test Protocol: http://slidesha.re/MEQ3jq

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SummaryIn a recent NY Times article, climate scientist and CEO of Climate Central (a research group) Benjamin H. Strauss, Ph.D., opinioned regarding the need to power the economy without heating the planet, “Our best hope is for some kind of disruptive technology to take off on its own, the way the Internet and the fax took off.”

PDI’s ReGen-X is that technology...able to disrupt the dangerous link between creating power and heating the planet...and it stands ready to take off through the vision of those who have the capacity to grasp the opportunity—as a Roman general once noted when faced with daunting odds—that “Fortune favours the bold.”

We hope you join us.

If you have any questions please feel free to contact us.

ane C. Heins President & CEOPotential +/- Difference Inc. R & D"Using our potential to make a difference"

thaneh@potentialdifference.ca613.795.1602

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Appendix: Technology Endorsements and Industry Comments

"As a mechanical engineer I'm here to explain how it works and why it works. And it does work; over a dozen of us were witness to that last Monday (as well as a film crew--filming in 3D no less!)."–Mike Brace, Tech Editor EV World (2012)

"is is the Holy grail for generators."–NRC Scientist Doug Hartwick at Ottawa University (2009)

"is is a freakin' game changer!"–Mike Elwood, Chairman Electric Mobility Canada at Ottawa University (2009)

"Of course it accelerates when a load is applied...! is represents several new chapters in physics, that is why we are consulting MIT."–Dr. Habash, University of Ottawa (2007)

"It works and it is not something I would have expected, now I am just trying to figure it out."–Dr. Marcus Zahn at MIT (2007)

"A number of your experiments are not lying in the field of Maxwellian electrodynamics? at is fascinating! I will inform you on any progress that I'll make along with reports." –Dr. Evstigneev N.M., leading sc., dep. of chaotic dynamics, Institute for System analysis, Russian Academy of Science. (2009)

"Your claims seem to violate the law of conservation of energy and Maxwell's equations of electro-magnetics." I will send you a short proposal, including my plan of work, estimate of cost, etc. en we can sign a short agreement and proceed."–Mehrdad (Mark) Ehsani, Ph.D., P.E., F.IEEE, F.SAE, Robert M. Kennedy Professor & Director, Power Electronics and Motor Drives Laboratory & Advanced Vehicle Systems Research Program, Department of Electrical & Computer Engineering, Texas A&M University

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"is is absolutely fascinating stuff you are doing!"–Joseph Shin, Electricity and Magnetism Professor, Concordia University (2011)

"If possible would like to meet with you to discuss your approach to the Association and of course to get a better feel about the physics behind your invention. I would still like to see what you are doing and perhaps we can include some of your material on our website newsletter."–David Mann, Canadian Association for the Advancement of Science (2009)

"ane, Your Press Release was most interesting to me as a physicist & an engineer. e level of technical detail was adequate to tell me that you probably have made a very significant advance in applied physics & in safely and successfully handling a new source of electric power. Congratulations!"–Dr. Stanley Townsend, University of Toronto & Former Managing Editor of the Canadian Journal of Physics (2006)

"We are interested in using the ReGenX technology in our LinkVolt Project to reduce roadside refueling."–Neil Young, LincVolt Project (2011)

"e magnetics lab here at Goddard expressed some interest in having you come down to do a colloquium."–NASA (2008)

"We really are more interested in developing its use and application for military power requirements."–US Air Force (2009)

"I have asked Mr. Gilles Brassard, A/Director, Spacecra Payload here at the Canadian Space Agency to look at your technologies and to visit your laboratory."–Canadian Space Agency (2009)

"I am writing to ask you to submit what you feel would be an appropriate document to describe your regenerative acceleration technology for circulation to our Committee members." –Al Cormier, Executive Director Electric Mobility Canada (2009)

"You seem to have made an interesting discovery. Our internal physics experts review this information and have determined that it is very interesting work."–Mike Simpson, Transportation Analyst Rocky Mountain Institute (2009)

"Would you be willing to contribute an article on this technology to the Journal for Engineering and Public Policy?" –Donald Wallace, Executive Director Ontario Centre for Engineering and Public Policy (2009)

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"anks for providing technical information. If the effect of your invention is really true, I am sure there will be strong needs in the market."–Nissan Japan (2012)

"I would like to know why you are not the toast of the town... this technology can be offered as a range extension option to our clients."–omas Fritz, Vice President Electric Vehicle Operations, CODA Automotive (2012)

"e technology looks really interesting and is revolutionary. I would like to learn more about the technology. Is it possible to organize a demo or a lecture in the USA?"–Chrysler Electrified Powertrains (2012)

"is sounds interesting. I'd like you to connect with our Fuel Economy Learning Program manager, to schedule a time for you to come in and share the technology with us. We need to know more about the Physics behind it."–General Motors (2012)

"It would be fitting for the inventor of the automobile to be first with your revolutionary technology and for me to play a role in that would be awesome!"–Mercedes-Benz (2012)

"When we finally understand what ane Heins has discovered, we likely will have to rewrite the laws of electromagnetism." –Mike Brace EV World Tech Editor (2010)

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