Presents the

1. Reduction System Presents the

2. KDS Micronex™Grinder-Dryer“your one-step solution for fine grinding and drying” First American Scientific Corporation 6473 64th Street Delta, British Columbia, Canada Tel: 604-940-6220 Fax: 604-940-6221 Email: help@fasc.net Web: www.fasc.net

3. Presentation Outline • Introduction to FASC and the KDS Micronex™ Technology • Processing Results for Different Materials • Biomass Power Plant Concept • Summary

4. About First American • Founded in 1995, First American Scientific Corporation (FASC) is a leading equipment manufacturer and provider of innovative systems that increase profitability and reduce the environmental impact of materials processing. • The KDS Micronex™, FASC’s patented grinder-dryer, efficiently and economically processes a wide variety of raw materials and wastes into fine, dry powders.

5. Introduction to theKDS Micronex™ Technology • KDS stands for Kinetic Disintegration System. The KDS Micronex™ is an high volume grinder that dries WITHOUT needing any heat input. • No heat is needed because the forces causing size reduction also dry the material. • KDS Technology uses LESS total energy than conventional drying and grinding combined.

6. Benefits of the KDS Micronex™ KDS Micronex™ customers benefit by: • Simplifying on-site grinding and drying operations into a single compact, and easy-to-operate system that has low initial and operating costs • Creating high-quality, dry, virtually pathogen-free powders that have value as industrial feedstocks, fuels, fertilizers and animal feeds. • Reducing disposal and handling costs of and long-term liability from materials that were previously non-recyclable

7. KDS Micronex™ Process Flow Input Output

8. The KDS MICRONEXTMProcess Flow • Raw material is dropped into the throat of the mill

9. The KDS MICRONEXTMProcess Flow • An air-lock gate reduces dust and eliminates blow-back

10. The KDS MICRONEXTMProcess Flow • Material moves to the Torus and is subjected to repeated violent collisions with the spinning rotor and strike plates

11. The KDS MICRONEXTMProcess Flow • Material is fractured and pathogen destruction occurs • Water vapor and water droplets are released during the fracturing process

12. The KDS MICRONEXTMProcess Flow • The classifier allows finished product to pass through to the cyclone and forces oversize particles to be reprocessed Cyclone

13. The KDS MICRONEXTMProcess Flow Moisture • Air containing moisture is separated and removed from the system. • Processed solid material is output from the bottom of the cyclone Product

14. KDS MICRONEXTMPhysical Characteristics • 18’ (h) x 14’ (l) x 7’ (w) • Footprint 1000 sq. ft. • Weight 9000 lbs. • Motors 250, 45, 2, 2, 2 HP • Electrical 570V, 400 Amp • High grade steel with some stainless components

15. Target Applications • Biomass waste into fuel and fertilizer • manures, paper sludge, biosolids, wood waste and crop residues • Soft rock minerals into fertilizers and industrial feedstocks • limestone, zeolite, phosphate rock, gypsum, and clay • Agricultural and food waste processing into animal feeds • bread waste, seaweed, oyter shell, fish bones, food processing waste • Specialty applications • glass, metallic mineral ores

16. Cattle and Swine Manure Processing Results * Pilot Plant Data

17. Glacial Clay Processing Results Glacial Clay is used in cosmetics, spa treatments.

18. Container Glass Processing Results

19. Limestone Processing Results

20. Gypsum Processing Results Gypsum plant in California used KDS Micronex for gypsum grinding.

21. Biomass Power Plant Design Using KDS Micronex™ to produce fuel

22. Biomass Power Plant: KDS is part of the Total Solution – KDS as Fuel-Maker • Electricity produced from Biomass fueled power plants helps reduce global warming. • Biomass Power Plants are becoming increasingly popular as a way to reduce Greenhouse Gas Emissions. • About 1000 Wood-fired power plants in the U.S in the 10 - 25 MW range.

23. Biomass Power Plant: KDS is part of the Total Solution – KDS as Fuel-Maker • KDS is an excellent fuel-maker for biomass power plants. • KDS can make dry, pulverized biomass for fuelling suspension burners, very economically. • First American's joint venture AGES has quoted a power plant in California burning horse manure mix.

24. Biomass Plant Flow Diagram

25. Biomass Power Plant: KDS is part of the Total Solution – KDS as Fuel-Maker • Fuel composition: Stable Waste (10 % horse manure, rest wood, straw and hay), 50 % Moisture • 4.5 mTPH of dried, powdered fuel (10 % MC) is produced by 3 KDS machines. • Fuel is burned in dust burner mounted in boiler.

26. Biomass Power Plant: KDS is part of the Total Solution – KDS as Fuel-Maker • Boiler heat input is 23 MW. • Steam drives turbine which drives alternator. • Alternator produces 5 MW of electricity.

27. Biomass Power Plant: KDS is part of the Total Solution – KDS as Fuel-Maker • Exhaust gases are treated using Selective Catalytic Reduction (SCR) and baghouse to meet local California standards. • 40 ppm NOx and 40 mg/m3 Particulates.

28. Biomass Power Plant: KDS is part of the Total Solution – KDS as Fuel-Maker

29. Summary • The KDS Micronex™ provides a simple, compact, low cost and easy-to-operate solution for fine grinding and drying. • Proven applications include sludge drying, grinding glass and soft-rock minerals and preparing biomass fuels for power production. • The machine can quickly pay for itself, by creating high-value end-products, reducing disposal costs and processing costs.

30. Reduction System For more information contact: First American Scientific Corp. Tel: +1-604-940-6220 Fax: +1-604-940-6221 Toll Free: 1-800-561-8656 Email: help@fasc.net Web: www.fasc.net