Today Coal Liquefaction converts over 90% of carbon at 500°C minimizing

CO2 footprint.

The Bergius process is a proven high pressure hydrogenation process that

produces on-spec light hydrocarbons from by thermal cracking and hydro-

gen saturation in one process unit called the direct hydrogenation unit. The

main reaction takes place in the Liquid Phase Reactors (LPH). Here a bub-

ble column flow is established. This ensures maximum mixing to achieve

high conversion. Typical reaction parameters are 450 - 490 °C (840 - 910

°F) and 200 - 300 bar (3,000 - 4,500 psi). Further treatment of the LPH

products takes place in the integrated Gas Phase Reactors (GPH) where

the light hydrocarbon products of the LPH get in contact with a fixed bed

catalyst to derive on-spec marketable liquid products. Unconverted prod-

ucts of the LPH are separated prior to the GPH section in the High Pressure

Hot Separator and are recycled.

The Bergius process in its most recent configuration

!

Zeecol Limited

112 A Nayland Street"

Christchurch, NZ 8081

Bergius Process

Table 1: Hydrogenation Plants in Germany 1927-1945

Site Feed LPH GPH Rate

Leuna Lignite Coal 200 bar 200 bar 600,000 t/yr

Böhlen Lignite Coal 300 bar 300 bar 240,000 t/yr

Magdeburg Lignite Coal 300 bar 300 bar 230,000 t/yr

Zeitz Lignite Coal 300 bar 300 bar 300,000 t/yr

Wesseling Lignite Coal 700 bar 300 bar 200,000 t/yr

Brüx Lignite Coal 300 bar 300 bar 400,000 t/yr

Gelsenkirchen

Scholven

Hard Coal 300 bar 300 bar 200,000 t/yr

Gelsenkirchen

Horst

Hard Coal 700 bar 300 bar 350,000 t/yr

Blechhammer Hard Coal 700 bar 300 bar 500,000 t/yr

Bottrop Residue 700 bar 700 bar 180,000 t/yr

Lützkendorf Hard Coal 700 bar 700 bar 50,000 t/yr

Pölitz Residue 700 bar 300 bar 600,000 t/yr

Figure 1: Original drawings, Leuna plant 1924

Source: Die katalytische Druckhydrierung von Kohlen Teeren und Mineralölen

Zeecol Limited

112 A Nayland Street"

Christchurch, NZ 8081

Zeecol intends to produce 5,500 barrels of C380 marine fuel per week and 5,500 barrels of

C180 marine fuel per week. This is 26 contracts for each type per month, FOB Lyttleton

Harbour, Christchurch, NZ, at a site that was recently cleared following the February 2011

Earthquake.

Zeecol Limited

112 A Nayland Street"

Christchurch, NZ 8081

BUSINESS FEASIBILITY STUDY - LYTTLETON HARBOUR

Market Viability -- Excellent

The company is selling marine fuel to an existing marine fuel buyer at Lyttleton Harbour Christchurch New

Zealand at market rates totaling 12% of current volumes. This !made in New Zealand" fuel is more highly

prized than imported varieties. This distinction will continue if supplies from foreign shores are interrupted

or reduced for any reason.

Technical Viability -- Excellent.

The company is using a direct hydrogenation process called the Bergius Process. This process was

developed in 1911 by Frederich Bergius. The process was used in the 1920s by IG Farben throughout

Germany to produce liquid fuels in competition with conventionally produced fuels. In 1932 Dr. Bergius

received the Nobel Prize for his innovations in high pressure hydrogen. In the 1940s World War Two

Germany used it to produce the bulk of its aviation fuel from coal after losing control of the Middle East

and Russian oil fields. Following that war US President Harry Truman backed efforts to build Bergius

reactors in Missouri in 1949. These facilities produced liquid fuels of superior quality at below market

costs. This project continued to operate until shut down under Eisenhower"s National Energy Council,

which was dominated by oil interests. In 2007 China Shenhua Energy Co (CSEC) initiated a program to

make fuels from coal using the Bergius Process citing the superior quality, high yields and lower cost of

this process.

Business Model Viability -- Excellent.

The technique of selling oil instead of equipment and land is widely used in oil field development. This

isolates investors from environmental and other liabilities while providing assured revenues once product

is made and selling into the market. The technique of segregating new technology from commodity sales

while providing significant returns made possible with the new technology has been very successfully

applied by companies like Hughes who developed new deep drilling techniques in the 1920s. From 1920

through 1950 Hughes drilling techniques developed over 1/3 of the world"s newly produced reserves.

Hughes never sold any equipment or services. Hughes continually improved his techniques and

processes. Nevertheless, investors in Hughes oil drilling projects routinely made significant profits

following the very model used here.

Management Model Viability -- Excellent.

The decision points and decision matrix is clearly delineated and events are clearly recognized.

Economic and Financial Model Viability -- Excellent.

The returns offered investors are calculated based on substantial discounts from today"s market prices for

fuel. Over the four year period of the investment prices are likely to rise improving values beyond those

offered here.

Exit Strategy Viability -- Excellent

According to US Department of Energy Energy Information Association the price of fuels have doubled in

the past three years. This trend is likely to continue due to structural difficulties in the oil supply markets

and capital markets. Any new supply of high quality fuels is highly valued as a consequence. Selling a

proven annuity based on fuel sales to institutional buyers in New Zealand and Australia at the prices

offered will likely take place quickly.

PRELI

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ARY

ONE PAGE PRO FORMA

ZEECOL LIMITED

3545231

Entity Type:! ! ! ! ! ! Limited Liability Company

Registered Address

112a Nayland Street Sumner Christchurch 8081

Directors

MOOK, William Harry

1912 Fourth Avenue Sw, Rochester MN 55902

Shareholdings

Total Number of Shares:! ! ! ! 1,000,000

Project Type:! ! ! ! ! ! Bergius

Location:! ! ! ! ! ! Lyttleton Harbour

Start:! ! ! ! ! ! ! August 1, 2011

First Delivery:! ! ! ! ! ! August 1, 2015

Carbon Source:! ! ! ! ! Solid Energy

Rate:! ! ! ! ! ! ! 200,000 MT/yr

Delivery:! ! ! ! ! ! Rail

Cost:! ! ! ! ! ! ! $8,000,000/yr

Term:! ! ! ! ! ! ! 20 years

Off-take Contract:! ! ! ! ! Talley!s Group Ltd.

Rate:! ! ! ! ! ! ! 27,000 MT/yr

Projected Value:! ! ! ! ! $850.00/MT

Annual Sales:! ! ! ! ! ! $22,950,000/yr

Term:! ! ! ! ! ! ! 5 years

Un-allocated Production

Marine Fuel:! ! ! ! ! ! 83,605 MT/yr

Projected Value:! ! ! ! ! $850/MT

Term:! ! ! ! ! ! ! 30 years

Present Value:!(2015)! ! ! ! ! $800,024,930! @8% discount, 30 yrs

Present Value: (2011)! ! ! ! ! $327,690,620! @20% discount, 4 yrs

PRELI

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BUNKER

FUELS

Zeecol manufactures two grades of marine fuel: Low Sulphur Fuel Oil (LSO) 180 centistokes

(CST) and LSO 380 CST.

These fuels are made to meet market specifications for these grades at its Lyttleton Harbour

location to meet the needs of the worldwide market. The specifications followed are those

defined by the International Organization for Standardization in document ISO 8217:2005 (E)

Petroleum products - Fuel (class F) - Specifications of marine fuels.

LSO 380: Specifications generally conform with that for RMG 380. Approximate Kinematic

Viscosity: At 50 C, max 380 cst. Flash point 60 C minimum. Pour point (upper) winter

quality, 30 C maximum; summer quality, same. Ash 0.15 m/m maximum. Sulfur 1.5%

maximum. Vanadium max 300 mg/kg. Aluminum plus silicon, 80 mg/kg max; water, 0.5%

maximum.

LSO 180: Specifications generally conform with that for RME 180. Approximate Kinematic

Viscosity: At 50 C, max 180 cst. Flash point 60 C minimum. Pour point (upper) winter

quality, 30 C maximum; summer quality, same. Ash 0.10 m/m maximum. Sulphur, maximum

1.5%. Vanadium max 200 mg/kg. Aluminum plus siliicon, 80 mg/kg max. ; water, 0.5%

maximum.

Timing: Zeecol bunker price assessments in India reflect the market value for futures at

1630 Mumbai time, for bunker fuel supplied 60 months ahead. If no market value can be

assessed in Mumbai, then the market value for fuels at 1630 Singapore time for the day of

the sale shall be used multiplied by 0.9821

Price: Prices are quoted in $/metric tonne.

Typical Size: Typical size parcel assessed is 500 metric tons for 180CST and 380CST but

can vary depending upon port, but generally there is a 300 metric tonne minimum.

Delivery: Bunkers are assessed on either an ex-wharf or delivered basis which includes all

barging costs. Zeecol assesses the open market rates for the chartering of dirty and clean

tankers. Zeecol charges $/MT assessments equivalent to rates charged.

Zeecol Limited

112 A Nayland Street!

Christchurch, NZ 8081

Zeecol Marine Fuel

Specifications11 April 2012 $706.62 LSO380 $714.42 LSO180