TARBLASTER ASTARBLASTER ASTARBLASTER AS is a Norwegian company who in cooperation with Sintef Energy TARBLASTER AS is a Norwegian company who in cooperation with Sintef Energy Research AS (Research AS (www.sintef.no) has developed a technology for ”dry” recovery of oil from oil ) has developed a technology for ”dry” recovery of oil from oil sand by a patented filed process called TarBlaster.sand by a patented filed process called TarBlaster.

The company has the following contacts points:The company has the following contacts points:

Florø office:Kleiva 20, 6900 Florø, NORWAY

Oslo office:Oslo Innovation Center, Gaustadallèen 21, 0349 OSLO, NORWAY

Olav Ellingsen: Tel. +47 57 74 12 77, cellular +47 48 40 06 14 40, e-mail: ind-o@online.noMorten Borch: Tel. +47 92 01 43 48, fax. +47 67 14 91 50, e-mail: mborch@online.no

Bjarte Sørebø Ellingsen: Tel. +47 48 40 05 51, fax. +47 22 60 44 27, e-mail: bse@nsn.noOrg.no: NO 990 925 526, Bank account: 6546.05.26277, Swift Code: NDEANOKK, Iban: NO3865460526277

• SINTEF ENERGY RESEARCH AS, Trondheim , Norway• Professor Jens Hetland• Ph.D. Jørn Bakken

• NYHAVNA MEKANISKE AS• Engineer Stig Fuglestad

• KGD Development AS• CEO engineer Roger Gale• Professor Finn Drangsholt

R&D PARTNERSR&D PARTNERS

OIL SANDOil sands are a combination of clay, sand, water, and bitumen. They are heavy, black and viscous, but can be mined and processed to extract the oil-rich bitumen, which is then refined into oil. While the energy properties and potential of oil sands have been recognized for centuries, there had been no significant attempt to develop the resource until the mid 1960s.

Oil sands are currently found in about 70 countries, including Canada, the former Soviet Union, Venezuela, Cuba, Indonesia, Brazil, Jordan, Madagascar, Trinidad, Colombia, Albania, Rumania, Spain, Portugal, Nigeria, and Argentina. The United States contains scattered deposits of oil sands, mainly in Utah, Kentucky, Kansas, Missouri, Oklahoma, California, and New Mexico.

Three quarters of the world's reserves are located in two regions: Venezuela and the Athabasca region of northern Alberta and Saskatchewan in Canada. Oil sands represent as much as 66% of the world's total oil reserves, with at least 1.7 trillion barrels in the Canadian Athabasca tar sands and 1.8 trillion barrels in the Venezuelan Orinoco oil sands, compared to 1.75 trillion barrels of conventional oil, mostly located in Saudi Arabia and other Middle-Eastern countries.

• TARBLASTER ANIMATION• TECHNOLOGY ROAD MAP PRESENTATION• OIL SANDS KICK INTO HIGHER GEAR

http://www.memagazine.org/backissues/membersonly/december98/features/oilsand/oilsand.html

• Canada’s Oil and Gas Entrepreneurs http://www.sepac.ca/• CANADIAN ASSOCIATION OF PETROLEUM PRODUCERS

http://www.capp.ca/Pages/default.aspx• WHAT IS HEAVY OIL http://www.lloydminsterheavyoil.com/whatislaunch.htm• OIL SANDS COMPANIES http://oilsands.infomine.com/companiesproperties/• OIL SANDS REPORTS- CHOPS STUDY http://www.energy.gov.ab.ca/OilSands/1189.asp• ALBERTA’S HEAVY OIL AND OIL SANDS http://www.energy.gov.ab.ca/OilSands/1189.asp• OIL SAND OPERATION

http://seattletimes.nwsource.com/flatpages/businesstechnology/albertasoilsands.html• OIL SANDS PRESENTATION http://www.petroleumequities.com/ITOHOS2005.pdf• POLUTED TAR SAND PONDS LEAKING

http://www.theglobeandmail.com/servlet/story/RTGAM.20081209.wtailings09/http://www.theglobeandmail.com/servlet/story/RTGAM.20081209.wtailings09/EmailBNStory/National/homeEmailBNStory/National/home

LINKSLINKS

NEWSNEWS

DIFFERENT QUALITIES OF OILDIFFERENT QUALITIES OF OIL

SOURCES API (*)Light conventional oil: 31-45Medium heavy oil: 22-30Heavy oil: 10-22Extra heavy oil <10Bitumen - oil from Tar sand after extraction 8-12

In addition huge amounts of oil shale containing non liquid hydro carbons. After extraction of the shale oil, it will have an API of about 25-30 API.

(*) American Petroleum Institute measure of specific gravity. In general: As lighter oil as higher API.

CRUDE OIL PRICES VS API (*)

18

3847

72 73

$0

$10

$20

$30

$40

$50

$60

$70

$80

Bitumennetback

CAN

HeavyHardisty

CAN

Bow River CAN

Brent Blend WTI

API 8 API 12 API 25 API 40API 38

(*) American Petroleum Institute measure of specific gravity. In general: As lighter oil as higher API. Prices pr 30. aug-2007

STEPS TO INCREASE VALUE OF TAR SAND (*)

$30

$44

$72

$0,00

$10,00

$20,00

$30,00

$40,00

$50,00

$60,00

$70,00

$80,00

Athabasca Bitumen

Dilbit Syntetic crudeoil (SCO)

Blending

Cost

(adding

light oil)

Upgrading

API 10-12 API 20-22 API 45-49

$14

$28

(*) Source: Corporate presentation Syneco.com

Oil Price

Conventional oil reserves and new discoveries (supply) to replace them are rapidly declining

Global demand for the supply and production of oil will continue to increase despite lower replacement of reserves

Heavy oil will increasingly need to be processed (upgraded) into synthetic crude to replace shrinking conventional supply

Source: Office of Naval Petroleum and Oil Shale Reserves;

U.S. Dept of Energy

Source: EIA and Raymond James Estimates & Analysis

GLOBAL CONVENTIAL OIL SUPPLIESGLOBAL CONVENTIAL OIL SUPPLIES AND DEMAND MARKETAND DEMAND MARKET

OIL SAND OIL SAND

Natural occurring Natural occurring deposits of a deposits of a mixture of heavy mixture of heavy oil and sandoil and sand

World’s greatest World’s greatest deposits (85%) in deposits (85%) in Alberta, CanadaAlberta, Canada

10% < 75 m depth, 10% < 75 m depth, surface miningsurface mining

LOCATION OF CANADA TAR SAND DEPOSITS

ALBERTA OIL SAND PROJECTS

STATISTIC FOR TAR SANDSTATISTIC FOR TAR SANDIN ALBERTA, CANADAIN ALBERTA, CANADA

Total volume in place 1,7-2,5 trillion barrels Total recoverable (probable)335 billion barrels Surface mining proven reserves 35 billion barrels Other methods proven reserves 98 billion barrels Present production 1,1 million bbl/day Projected production 2010 2,0 million bbl/day Projected production 2015 4,0 million bbl/day (*) Tar sand moved per bbl 2,0 ton Water consumption per bbl 430 liter (if no recycling) Number of leases in Alberta 2.800

(*) At this production level it will take about 100 years to empty the proven reserves

OIL SAND MININGOIL SAND MININGIn oil sands In oil sands mining, a mix of mining, a mix of oil and sand is oil and sand is removed from removed from just below the just below the surface using surface using trucks and trucks and shovels.shovels.

THE MINING AND UPGRADING PROCESS

UPGRADING/CRACKINGEXISTING EXTRACTION TECHNOLOGY

The extracted oil is upgraded to a synthetic crude prior to refining

PROBLEMS CONNECTED PROBLEMS CONNECTED EXISTING TECHNOLOGYEXISTING TECHNOLOGY

High consumption of water (40 million liter pr High consumption of water (40 million liter pr 100.000 barrels of oil produced)100.000 barrels of oil produced)

Water polluted with small amount of oil and finesWater polluted with small amount of oil and fines

High level of energy consumption – Natural gas High level of energy consumption – Natural gas main energy sourcemain energy source

High output of CO2 emissionHigh output of CO2 emission

Huge capital investmentsHuge capital investments

Heavy oil which must be upgraded or mixed with Heavy oil which must be upgraded or mixed with light oil prior to refininglight oil prior to refining

PROBLEMS CONNECTED EXISTING PROBLEMS CONNECTED EXISTING TECHNOLOGYTECHNOLOGY

THE BENEFITS OF THE TARBLASTER TECHNOLOGY

Low energy consumption

Self-sustained with energy by combustion of low value energy (the most heavy part of the oil)

Reduced CO2 emission

No water consumption

Extraction and upgrading oil sand in one operation

Reduce capital investments about 80%

Easy to scale up

Increased value of oil by:• Increased API FROM 8 to 25 (*)• Reduce sulphur and metal content

(*) Proved API 18, but believe it will be possible to reach

API 25 by an add on process

TARBLASTER SIMPLIFIED FLOW DIAGRAM

TARBLASTER LOGISTICS

TEST UNIT

First test June 2008

Test rig ready for testing at SINTEF ENERGY RESEARCH AS, Trondheim

EXPECTED RESULTS EXPECTED RESULTS MATERIAL INITIAL

APIUPGRADED

APICOMMENTS

Atabasca tar sand (bitumen)

8-10 18-25 1 w% coke in tailingsTemperature 350-400 CPressure 1,1 barSulphur reduction 50-60%Metal reduction 90-95%

FROM OIL SAND TO OILFROM OIL SAND TO OIL

FEASIBILITY OF THE TARBLASTER TECHNOLOGY

Unique low temperature and pressure thermo mechanical process

Process equipment known to the industry

Mining operation as for existing technology

• Incorporated by 88 shareholders from Norway, England, Sweden, Germany, Switzerland, USA and Canada

• Number of issued shares 11.000.000

• CEO Olav Ellingsen (www.industrikontakt.com)

The company subcontracts its other needs such as accounting, auditing, financial advisors and legal assistance from case to case.

• Board of Directors:

• Chairman, lawyer Morten Borch, Oslo• Engineer, Steve Kent, London• Member, marketing investigator Bjarte S.

Ellingsen, Oslo• Member, engineer Olav Ellingsen, Florø

TARBLASTER ASTARBLASTER AS