Water Resources technologies are competitive by world standards and were originally licensed by the Company from Campbell Applied Physics Inc (CAP), a US engineering and advanced technology company. CAP is closely affiliated with the US Department of Energy (DOE). For the past sixteen years, CAP and its associated companies have been developing, installing and operating advanced technologies and systems in the water treatment industry.

CURRENT TECHNOLOGIES

Plasma Chemical Reactor (PCR)
The PCR is a breakthrough proprietary device for producing very low cost ozone on site from ambient air. Ozone is a very aggressive oxidizing agent, used to replace chemicals in water disinfection treatment and is a key component in the proprietary water pre-treatment stage of the Company's desalination systems. The net effect is lower produced water cost.

bullet point Highly cost effective
bullet point Reliable, no residue, low maintenance
bullet point Removes pathogens, odors and certain metals from treated water
bullet point Uses ambient air, eliminates oxygen supply, enables on site deployment

Advanced Salt Water Reverse Osmosis (ASWROTM)
ASWRO is small to medium scale desalination systems produce low cost potable water from sea water and CBM waste water.

bullet point Removes salts and other elements from sea water and brackish water
bullet point Highly cost effective for populations from 2,000 people and greater
bullet point Eliminates design and construction time and variables
bullet point Readily transportable, ?connect and operate?
bullet point Modular, enabling cost effective capacity increases.

EMERGING TECHNOLOGIES

The following proprietary technologies will be incorporated in advanced systems, following engineering completion. The Capacitive Desalination system is planned for demonstration in late 2008.

Capacitive Desalination (O3CDTM)
Capacitive desalination or capacitive de-ionization as it is known technically uses an electro-chemical process to remove salts from brackish water. This simplified approach is made economically feasible due to the unique, low cost, purifying properties of the company's proprietary ozone pre- treatment technology. Compared to reverse osmosis, the 03CD system design has few moving parts and is a more cost effective low pressure, low power system which eliminates the use of chemicals, high pressure pumps and membranes. Following successful pilot scale operations, the overall operating cost is expected to be 80% less than a comparable reverse osmosis system which is the only other system applicable for CBM waste water / brackish water treatment.

Hyper-Critical Ejector Distillation (HCED)
HCED is in pilot stage development and is a breakthrough, next generation, chemical free vapor compression distillation system, designed to reduce cost and improve produced water quality. The major advantages of the HCED system are:

bullet point More robust operating performance
bullet point Lower cost, highest quality (purest) produced water
bullet point Unaffected by the chemistry of the water to be treated
bullet point Suitable for demand peaking and intermittent operation