Frondeur Industries
Presents:
What is the problem?
Today a large % of all oil and gas wells are drilled using hydrocarbon based drilling fluid. After drilling, most of the cuttings contaminated fluid (up to 40% by weight) is disposed in landfills. It continues to
accumulate creating future risk and in addition the drilling fluid is lost forever.
What is Elavo?
Elavo is a clean-tech oilfield waste management company that uses proprietary technology to separate and recover up to 99% of the hydrocarbon drilling fluid for resale and reuse. This reduces landfill
by approximately 50%.
What is the technology?
A technological breakthrough that uses Proprietary technology that is highly efficient and operates on a small footprint, on a mobile unit. Very low input costs with high thermal efficiency. Novel
technology using direct thermal desorption with heat recapture and proprietary coalescing and cooling of vapor streams.
Why should oil and gas companies care?
It makes them greener and reduces landfill by 50% through recovering drilling fluid.
How does Elavo make money?
Revenue from drilling fluid as well as a processing fee.
How big is the market?
Western Canada is 3-4 mm. tons per year of cuttings and the Permian basin (Texas) is much larger.
How does Elavo plan to scale it’s business?
We plan to license the technology to major oilfield waste management companies.
Pre-Money Valuation and Support for Valuation:
There’s a potential for multiple units capable of generating large EBITA per unit. Elavo has no debt and the opportunity is driven by economics and not by regulation or legislation.
Board of Directors & Management
Seasoned team with a deep track record of shareholder value creation, corporate governance, and entrepreneurship
Jeffrey Scott, MBA – Lead Director
• Chairman of Sulvaris, Founder and former Chairman of Gran Tierra Energy (GTE CN; GTE US; GTE LN) , Co-Founder of Saxon Energy Services (sold to Schlumberger and First Reserve),
Suroco Energy, President of Postell Energy (one of the oldest private energy companies in Canada, and has held senior management, founding and board roles at numerous other
private and public companies. Mr. Scott holds 35+ years of global experience in corporate governance and strategy, capital markets, and mergers & acquisitions across a wide range
of sectors.
Shareholder – Director
• Mr. Steinke, an energy industry entrepreneur and executive with 30+ years of experience, and one of the original Founders of Secure Energy (TSX:SES, Mkt cap: C$2B, TTM EBITDA
as at 1Q22: C$417MM), Canada’s leading and most successful energy infrastructure and environmental & fluid management services company. Mr. Steinke has held senior executive
and Vice President level positions at Secure and was also a Director of the corporation for several years. Formerly, Mr. Steinke has held various positions at Canadian Crude Separators
and CCS Income Trust, consulted at Enermax Services, and was Superintendent at Koch Service Canada. Most recently, Mr. Steinke has invented and patented a new hydraulic
fracturing tank technology, and formed and sold FracStac, a private company thereof. He is also involved in a not-for-profit healthcare organization.
Rick Knoll – President & CEO
• Technology entrepreneur and executive with 30+ years of experience in control systems, industrial specialty products, chemical and industrial processes focused on creating deep value
from waste streams. Founder, Director, and CEO of Sulvaris. Founded and grew Paragon Controls from C$0.2-25+MM in revenue with offices in Vancouver, Calgary, Fort McMurray, and
Saskatoon. Founded and grew International Petroleum Equipment Corp, a proprietary energy industry threading technology company with successful operations in Europe. Placed
within the top 10 at the Association of Collegiate Entrepreneurs. Involved in raising over C$100MM in startup and private equity financing for growth companies.
Dr. Barry McIntyre, PHD – Chief Technology Officer
• 25+ years global experience in engineering consulting, and product and process development – including patents, R&D, process and project improvement – in the oil & gas,
petrochemical and environmental sectors, from business start-ups to major capital projects ($100MM+), in China, Switzerland, the Netherlands, and the US. Consulted and advised
for Mobil, ARCO, Dow, DuPont, Pan Canadian, and Neste/Chevron, among others, and takes a keen interest in seeking new methods to improve productivity and profitability whilst
reducing environmental impacts of industry. Dr. McIntyre holds a Ph.D. in Mechanical Engineering, an M.Sc. in Engineering Management, and B.Sc. Degrees in both Mathematics &
Physics, all from the University of Alberta, and has taught university courses in economic analysis for engineers and project management.
CONFIDENTIAL
5
Illustrative DCF analysis for a single,
mobile commercial unit
Strong economics for a 5 cube/h mobile
commercial unit
•
•
Strong, robust economics
High-margin and minimally sensitive to
increases in operating costs
•
Potential for additional revenue streams
from trucking and logistics cost savings
•
Mobile
•
Simple field operation
•
Scalable & replicable
•
~US$5.0MM est. CAPEX
•
~US$4.7MM est. EBITA
•
~74% est. gross operating margin
•
NPV (after tax): ~US$29.4MM
•
IRR: ~98%
USD
Corporate Presentation 2023
[Confidential]
CONFIDENTIAL
What is the problem?
Today a large % of all oil and gas wells are drilled using hydrocarbon based drilling fluid. After drilling, most of the cuttings contaminated fluid (up to 40% by weight) is disposed in landfills. It continues to
accumulate creating future risk and in addition the drilling fluid is lost forever.
What is Elavo?
Elavo is a clean-tech oilfield waste management company that uses proprietary technology to separate and recover up to 99% of the hydrocarbon drilling fluid for resale and reuse. This reduces landfill
by approximately 50%.
What is the technology?
A technological breakthrough that uses Proprietary technology that is highly efficient and operates on a small footprint, on a mobile unit. Very low input costs with high thermal efficiency. Novel
technology using direct thermal desorption with heat recapture and proprietary coalescing and cooling of vapor streams.
Why should oil and gas companies care?
It makes them greener and reduces landfill by 50% through recovering drilling fluid.
How does Elavo make money?
Revenue from drilling fluid as well as a processing fee.
How big is the market?
Western Canada is 3-4 mm. tons per year of cuttings and the Permian basin (Texas) is much larger.
How does Elavo plan to scale it’s business?
We plan to license the technology to major oilfield waste management companies.
Pre-Money Valuation and Support for Valuation:
There’s a potential for multiple units capable of generating large EBITA per unit. Elavo has no debt and the opportunity is driven by economics and not by regulation or legislation.
Board of Directors & Management
Seasoned team with a deep track record of shareholder value creation, corporate governance, and entrepreneurship
Jeffrey Scott, MBA – Lead Director
• Chairman of Sulvaris, Founder and former Chairman of Gran Tierra Energy (GTE CN; GTE US; GTE LN) , Co-Founder of Saxon Energy Services (sold to Schlumberger and First Reserve),
Suroco Energy, President of Postell Energy (one of the oldest private energy companies in Canada, and has held senior management, founding and board roles at numerous other
private and public companies. Mr. Scott holds 35+ years of global experience in corporate governance and strategy, capital markets, and mergers & acquisitions across a wide range
of sectors.
Shareholder - Director
• Mr. Steinke, an energy industry entrepreneur and executive with 30+ years of experience, and one of the original Founders of Secure Energy (TSX:SES, Mkt cap: C$2B, TTM EBITDA
as at 1Q22: C$417MM), Canada’s leading and most successful energy infrastructure and environmental & fluid management services company. Mr. Steinke has held senior executive
and Vice President level positions at Secure and was also a Director of the corporation for several years. Formerly, Mr. Steinke has held various positions at Canadian Crude Separators
and CCS Income Trust, consulted at Enermax Services, and was Superintendent at Koch Service Canada. Most recently, Mr. Steinke has invented and patented a new hydraulic
fracturing tank technology, and formed and sold FracStac, a private company thereof. He is also involved in a not-for-profit healthcare organization.
Rick Knoll – President & CEO
• Technology entrepreneur and executive with 30+ years of experience in control systems, industrial specialty products, chemical and industrial processes focused on creating deep value
from waste streams. Founder, Director, and CEO of Sulvaris. Founded and grew Paragon Controls from C$0.2-25+MM in revenue with offices in Vancouver, Calgary, Fort McMurray, and
Saskatoon. Founded and grew International Petroleum Equipment Corp, a proprietary energy industry threading technology company with successful operations in Europe. Placed
within the top 10 at the Association of Collegiate Entrepreneurs. Involved in raising over C$100MM in startup and private equity financing for growth companies.
Dr. Barry McIntyre, PHD – Chief Technology Officer
• 25+ years global experience in engineering consulting, and product and process development – including patents, R&D, process and project improvement – in the oil & gas,
petrochemical and environmental sectors, from business start-ups to major capital projects ($100MM+), in China, Switzerland, the Netherlands, and the US. Consulted and advised
for Mobil, ARCO, Dow, DuPont, Pan Canadian, and Neste/Chevron, among others, and takes a keen interest in seeking new methods to improve productivity and profitability whilst
reducing environmental impacts of industry. Dr. McIntyre holds a Ph.D. in Mechanical Engineering, an M.Sc. in Engineering Management, and B.Sc. Degrees in both Mathematics &
Physics, all from the University of Alberta, and has taught university courses in economic analysis for engineers and project management.
CONFIDENTIAL
5
Introduction to Elavo
Adding significant economic and ecological value to drilling waste management in the energy industry
• Incorporated in 2019 to commercialize a proprietary, innovative thermal desorption technology to process and clean
drill cuttings economically, recovering valuable drilling fluid and adding substantial economic and ecological value to
drilling waste management in energy  revenue and energy from waste
HE-TDU
High Efficiency Thermal Desorption Unit
~90%+ fluid recovery
achieved in most recent tests
 Engineering, R&D, testing,
and optimization ongoing
CONFIDENTIAL
Achievements to-date
Well-positioned for future growth; targets achieved, government cash grants secured
• Incorporated 2019 in Calgary, AB, Canada
• Zero debt
• Built Prototype High-Efficiency Thermal Desorption Unit (HE-TDU)  90%+ fluid recovery achieved,
enhancement, optimization and testing underway
• Successful fluid recovery tests completed, process enhancement ongoing
• 3 Provisional Patent Applications  published
• Currently engaged with third parties to explore net GHG emission reduction attributable to recovery and recycling
of wasted fluids

Incorporation
Feb 2019
CONFIDENTIAL

Pre-Seed
Financing
$450k May 2019

Prototype design
engineering + Patent
Application Filing

Seed
Financing
$350k Oct 2020

Business development,
prototype optimization,
and testing
Series A
Financing
Commercial Unit design
& build
Drill cuttings treatment overview – current industry standard
Typical treatment possibilities for oil-based drill cuttings used in E&P today
• Drill cuttings are a by-product of oil & gas
drilling and are subject to disposal and other
regulatory requirements in various E&P
jurisdictions, which are becoming more
stringent globally
Drilling fluid recycle
1. Primary treatment
• Oil content of cuttings is typically 35-50% by
weight after primary treatment
• Standard methods of fluid recovery are
slow, inefficient, and typically uneconomic
• Solidification for transport to landfills (e.g.
sawdust mixing) is also frequently used but
adds significant cost to disposal (increases
landfill volumes by ~50%), recovers no
valuable drilling fluids, and bears the risk of
environmental hydrocarbon contamination
CONFIDENTIAL
Thermal
Desorption
Drilling fluid
15-35% oil by wt.
Mud tank
2. Secondary treatment
Source: Zhiqiang Huang et al 2018 IOP Conf. Ser.: Earth Environ.
Sci. 170 022074
The Elavo difference: high-efficiency thermal desorption technology
Targeting an efficient, economic, highly scalable commercial solution for recovery/resale of drilling fluids
Elavo’s proprietary direct heating thermal desorption unit and process targets:
• High thermal efficiency (direct heating method with thermal energy recovery)
• High recovery factor (85%+ adjustable to purpose) for drilling fluids
• Minimal carryover of low-gravity solids in order to maximize drilling fluid resale value / reusability
• Low capex requirement and small physical footprint
• Mobile and scalable to suit application, operating environment / throughput supply
• Less complex heating system and fewer moving parts
• Significant reduction of transport bulk volume and costs (elimination of need for solidification e.g.
sawdust mixing) – waste volume reduction of up to 40-50%
• Capable of more easily controlling temperature profile over a larger range
• Huge opportunity for ESG enhancement within the energy industry
CONFIDENTIAL
Standard thermal desorption technologies
Standard technologies for TD drill cuttings treatment / fluid recovery are sub-optimal
Hammermills
• Uses thermomechanical / friction heating via
rotating hammers to heat cuttings and
evaporate drilling fluids (inefficient energy
transfer – conversion of mechanical to thermal)
– used mostly offshore
• Many moving parts and more frequent
maintenance and replacement
• Pulverizes cuttings, reducing particle size,
creating more fines, which are problematic for
recycling and reduce value of fluids
• Vapours at saturation temperature; any
reduction in temperature thereafter will cause
condensation in the process loop
CONFIDENTIAL
Indirect Dryers (Rotating Kiln)
• Very large, complex, with large footprint
Heated Screw Processing Units
• High surface area and low thermal efficiency
due to indirect heating of large kiln
• 1 or 2 stage, 1st stage screw heated via
thermal fluid and 2nd stage screw heated
electrically at much higher temperature
• Vapours at saturation temperature, so any
reduction in temperature thereafter will cause
condensation in the process loop
• Vapours at saturation temperature, so any
reduction in temperature thereafter will cause
condensation in the process loop
• Generally uses baghouse filtration, so
condensation is an issue
• Complex process and equipment
• High capex
• Currently available yet not much apparent
acceptance
• Not widely used despite being around for
decades
• High capex
Testing and optimization process
10 months of optimization, engineering, and testing post-fabrication has delivered successful results
• The Elavo engineering and R&D team
has spent ten months enhancing and
investing in the HE-TDU prototype
• A newly implemented multi-stage
cooling, condensation and coalescing
system has successfully delivered
~90%+ fluid recovery factor in recent
testing
(Fluid sample from 90% recovery test, Sep 2021)
CONFIDENTIAL
13
Go-forward strategy
Engage with leading companies in environmental remediation, waste management and continue innovation, R&D, and Engineering
Leverage strong
existing
relationships in the
energy industry to
initiate discussions
with leading
commercial
partners
Continue to
innovate and
optimize
CONFIDENTIAL
Enter into
commercial
partnership
(e.g. co-development
of commercial units,
or technology
licensing/royalty
model)
Continue to
demonstrate
and enhance
process and
fluid recovery

Intellectual property portfolio development
Engaged with leading IP group Torys LLP (Toronto) to develop robust IP encompassing core technology
• Elavo has hired top IP lawyer Ed Fan’s Intellectual
Property Group at Torys in Toronto
• Ed has been recognized with:
• Chambers Canada—Leading lawyer in intellectual property
2020, and;
• Best Lawyers in Canada—Leading lawyer in intellectual
property law (2014-2020)
• 24 months of development and work thus far
• New IP development ongoing during the R&D
process
• 3 international provisional patent applications filed
and published
CONFIDENTIAL
Published International IP Portfolio (current)
WO 2021/097564 – the System and Method for Removing
Drilling Fluid From Drill Cuttings Using Direct Heat – Invention #1
WO 2021/097563 – System and Method for Removing Drilling Fluid
From Drill Cuttings Using Direct Heat – Invention #2
WO 2021/097565 – System and Method for Removing Drilling Fluid
From Drill Cuttings Using Direct Heat – Invention #3
Illustrative DCF analysis for a single,
mobile commercial unit
Strong economics for a 5 cube/h mobile
commercial unit
•
•
Strong, robust economics
High-margin and minimally sensitive to
increases in operating costs
•
Potential for additional revenue streams
from trucking and logistics cost savings
•
Mobile
•
Simple field operation
•
Scalable & replicable
•
~US$5.0MM est. CAPEX
•
~US$4.7MM est. EBITA
•
~74% est. gross operating margin
•
NPV (after tax): ~US$29.4MM
•
IRR: ~98%
USD
STATUTORY RIGHTS OF ACTION – 1 of 3
Securities legislation in certain of the provinces of Canada may deem this presentation to be an offering memorandum and accordingly provide purchasers with statutory rights of rescission or damages, or both, in the event
this presentation contains a misrepresentation. A “misrepresentation” is an untrue statement of a material fact or an omission to state a material fact that is required to be stated or that is necessary to make any statement
not misleading or false in the light of the circumstances in which it was made. These remedies must be commenced by the purchaser within the time limits prescribed and are subject to the defences contained in the
applicable securities legislation. Purchasers should refer to the applicable provisions of the securities legislation of their province for the particulars of these rights or consult with a legal adviser.
The following is a summary of the statutory rights of rescission or damages, or both, under securities legislation in certain of the provinces of Canada where that is required to be disclosed under the relevant securities
legislation, and as such, is subject to the express provisions of the legislation and the related regulations and rules. The rights described below are in addition to, and without derogation from, any other right or remedy
available at law to purchasers of the securities.
Ontario Purchasers
Ontario securities legislation provides that where an offering memorandum is delivered to a purchaser and contains a misrepresentation, the purchaser will be deemed to have relied upon the misrepresentation and will,
except as provided below, have a statutory right of action for damages or for rescission against the issuer and a selling security holder on whose behalf the distribution is made; if the purchaser elects to exercise the right of
rescission, the purchaser will have no right of action for damages against the issuer or any selling security holder. No such action shall be commenced more than, in the case of an action for rescission, 180 days after the date
of the transaction that gave rise to the cause of action, or, in the case of any action other than an action for rescission, the earlier of: (i) 180 days after the purchaser first had knowledge of the facts giving rise to the cause of
action, or (ii) three years after the date of the transaction that gave rise to the cause of action. The Ontario legislation provides a number of limitations and defences to such actions, including: (a) the issuer or any selling
security holder is not liable if it proves that the purchaser purchased the securities with knowledge of the misrepresentation; (b) in an action for damages, the issuer shall not be liable for all or any portion of the damages
that the issuer or any selling security holder proves do not represent the depreciation in value of the securities as a result of the misrepresentation relied upon; and (c) in no case shall the amount recoverable exceed the
price at which the securities were offered.
These rights are not available for a purchaser that is: (a) a Canadian financial institution, meaning either: (i) an association governed by the Cooperative Credit Associations Act (Canada) or a central cooperative credit society
for which an order has been made under section 473(1) of that Act; or (ii) a bank, loan corporation, trust company, trust corporation, insurance company, treasury branch, credit union, caisse populaire, financial services
cooperative, or league that, in each case, is authorized by an enactment of Canada or a province or territory of Canada to carry on business in Canada or a province or territory of Canada; (b) a Schedule III bank, meaning an
authorized foreign bank named in Schedule III of the Bank Act (Canada); (c) the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada); or (d) a subsidiary of any
person referred to in clauses (a), (b) or (c), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary.
New Brunswick Purchasers
New Brunswick securities legislation provides that where any information relating to an offering that is provided to a purchaser of the securities contains a misrepresentation, a purchaser who purchases the securities shall
be deemed to have relied on the misrepresentation if it was a misrepresentation at the time of purchase. Such purchaser has a right of action for damages against the issuer or may elect to exercise a right of rescission
against the issuer, in which case the purchaser shall have no right of action for damages. No such action shall be commenced more than, in the case of an action for rescission, 180 days after the date of the transaction that
gave rise to the cause of action or, in the case of any action, other than an action for rescission, the earlier of (i) one year after the plaintiff first had knowledge of the facts giving rise to the cause of action, and (ii) six years
after the date of the transaction that gave rise to the cause of action. The New Brunswick legislation provides a number of limitations and defences to such actions, including: (a) the issuer is not liable if it proves that the
purchaser purchased the securities with knowledge of the misrepresentation; (b) in an action for damages, the issuer shall not be liable for all or any portion of the damages that it proves do not represent the depreciation
in value of the securities as a result of the misrepresentation relied upon; and (c) in no case shall the amount recoverable exceed the price at which the securities were offered.
Nova Scotia Purchasers
Nova Scotia securities legislation provides that in the event that an offering memorandum or a record incorporated by reference in an offering memorandum, together with any amendments thereto, or any advertising or
sales literature (as defined in the Nova Scotia securities legislation) contains a misrepresentation, a purchaser who purchases the securities referred to in it is deemed to have relied upon such misrepresentation if it was a
misrepresentation at the time of purchase. Such purchaser has a statutory right of action for damages against the seller (which includes the issuer) and, subject to certain additional defences, the directors of the seller.
Alternatively, the purchaser while still an owner of the securities, may elect instead to exercise a statutory right of rescission against the issuer, in which case the purchaser shall have no right of action for damages against
the seller or the directors. No such action shall be commenced to enforce the right of action for rescission or damages more than 120 days after the date payment was made for the securities (or after the date on which
initial payment was made for the securities where payments subsequent to the initial payment are made pursuant to a contractual commitment assumed prior to, or concurrently with, the initial payment).
CONFIDENTIAL
STATUTORY RIGHTS OF ACTION – 2 of 3
The Nova Scotia legislation provides a number of limitations and defences, including: (a) no person or company is liable if the person or company proves that the purchaser purchased the securities with knowledge of the
misrepresentation; (b) in the case of an action for damages, no person or company is liable for all or any portion of the damages that it proves do not represent the depreciation in value of the securities as a result of the
misrepresentation; and (c) in no case will the amount recoverable in any action exceed the price at which the securities were offered to the purchaser.
A person or company, other than the issuer, is not liable with respect to any part of the offering memorandum or any amendment to the offering memorandum not purporting (a) to be made on the authority of an expert or
(b) to be a copy of, or an extract from, a report, opinion or statement of an expert, unless the person or company (i) failed to conduct a reasonable investigation to provide reasonable grounds for a belief that there had
been no misrepresentation or (ii) believed that there had been a misrepresentation.
A person or company, other than the issuer, will not be liable if that person or company proves that: (a) the offering memorandum or any amendment to the offering memorandum was sent or delivered to the purchaser
without the person’s or company’s knowledge or consent and that, on becoming aware of its delivery, the person or company gave reasonable general notice that it was delivered without the person’s or company’s
knowledge or consent; (b) after delivery of the offering memorandum or any amendment to the offering memorandum and before the purchase of the securities by the purchaser, on becoming aware of any
misrepresentation in the offering memorandum or any amendment to the offering memorandum, the person or company withdrew the person’s or company’s consent to the offering memorandum or any amendment to
the offering memorandum, and gave reasonable general notice of the withdrawal and the reason for it; or (c) with respect to any part of the offering memorandum or any amendment to the offering memorandum
purporting (i) to be made on the authority of an expert, or (ii) to be a copy of, or an extract from, a report, an opinion or a statement of an expert, the person or company had no reasonable grounds to believe and did not
believe that (A) there had been a misrepresentation, or (B) the relevant part of the offering memorandum or any amendment to the offering memorandum did not fairly represent the report, opinion or statement of the
expert, or was not a fair copy of, or an extract from, the report, opinion or statement of the expert.
Saskatchewan Purchasers
Saskatchewan securities legislation provides that in the event that an offering memorandum, together with any amendments thereto, or advertising and sales literature disseminated in connection with an offering of
securities contains a misrepresentation, a purchaser who purchases such securities has, without regard to whether the purchaser relied on the misrepresentation, a right of action for damages against: (a) the issuer and the
selling security holder on whose behalf the distribution is made; (b) every promoter and director of the issuer or the selling security holder, as the case may be, at the time the offering memorandum or any amendment to it
was sent or delivered; (c) every person or company whose consent has been filed respecting the offering, but only with respect to reports, opinions or statements that have been made by them; (d) every person who or
company that, in addition to the persons or companies mentioned in clauses (a) to (c), signed the offering memorandum or the amendment to the offering memorandum; and (e) every person who or company that sells
securities on behalf of the issuer and the selling security holder under the offering memorandum or amendment to the offering memorandum. If such purchaser elects to exercise a statutory right of rescission against the
issuer or selling security holder, it shall have no right of action for damages against that person or company. No such action for rescission or damages shall be commenced more than, in the case of a right of rescission, 180
days after the date of the transaction that gave rise to the cause of action or, in the case of any action, other than an action for rescission, before the earlier of (i) one year after the plaintiff first had knowledge of the facts
giving rise to the cause of action, and (ii) six years after the date of the transaction that gave rise to the cause of action.
The Saskatchewan legislation provides a number of limitations and defences, including: (a) no person or company will be liable if the person or company proves that the purchaser purchased the securities with knowledge of
the misrepresentation; (b) in the case of an action for damages, no person or company will be liable for all or any portion of the damages that it proves do not represent the depreciation in value of the securities as a result
of the misrepresentation; and (c) in no case will the amount recoverable in any action exceed the price at which the securities were offered to the purchaser.
No person or company, other than the issuer, will be liable if the person or company proves that: (a) the offering memorandum or any amendment to it was sent or delivered without the person’s or company’s knowledge
or consent and that, on becoming aware of it being sent or delivered, that person or company gave reasonable general notice that it was so sent or delivered; (b) after the filing of the offering memorandum or any
amendment to it and before the purchase of securities by the purchaser, on becoming aware of any misrepresentation in the offering memorandum or any amendment to it, the person or company withdrew the person’s or
company’s consent to it and gave reasonable general notice of the person’s or company’s withdrawal and the reason for it; (c) with respect to any part of the offering memorandum or any amendment to it purporting to be
made on the authority of an expert, or purporting to be a copy of, or an extract from, a report, an opinion or a statement of an expert, that person or company had no reasonable grounds to believe and did not believe that
(i) there had been a misrepresentation, or (ii) the part of the offering memorandum or any amendment to it did not fairly represent the report, opinion or statement of the expert or was not a fair copy of, or an extract from,
the report, opinion or statement of the expert; (d) with respect to any part of the offering memorandum or any amendment to it purporting to be made on the person’s or company’s own authority as an expert or
purporting to be a copy of or an extract from the person’s or company’s own report, opinion or statement as an expert that contains a misrepresentation attributable to failure to represent fairly his, her or its report,
opinion or statement as an expert, (i) the person or company had,
CONFIDENTIAL
STATUTORY RIGHTS OF ACTION – 3 of 3
after reasonable investigation, reasonable grounds to believe, and did believe, that the part of the offering memorandum or any amendment to it fairly represented the person’s or company’s report, opinion or statement,
or (ii) on becoming aware that the part of the offering memorandum or of any amendment to it did not fairly represent the person’s or company’s report, opinion or statement as an expert, the person or company
immediately advised the Saskatchewan Financial Servcies Commission and gave reasonable general notice that such use had been made of it and that the person or company would not be responsible for that part of the
offering memorandum or of the amendment to it; or (e) with respect to a false statement purporting to be a statement made by an official person or contained in what purports to be a copy of or extract from a public
official document, the statement was a correct and fair representation of the statement or copy of or extract from the document and the person or company had reasonable grounds to believe, and did believe, that the
statement was true.
The Saskatchewan legislation also provides that where an individual makes a verbal statement to a prospective purchaser that contains a misrepresentation relating to the security purchased and the verbal statement is
made either before or contemporaneously with the purchase of the security, the purchaser is deemed to have relied on the misrepresentation, if it was a misrepresentation at the time of purchase, and has a right of action
for damages against the individual who made the verbal statement.
The Saskatchewan legislation provides a purchaser with the right to void the purchase agreement and to recover all money and other consideration paid by the purchaser for the securities if the securities are sold in
contravention of Saskatchewan securities legislation, regulations or a decision of the Saskatchewan Financial Services Commission.
The Saskatchewan legislation also provides a right of action for rescission or damages to a purchaser of securities to whom an offering memorandum or any amendment to it was not sent or delivered prior to or at the same
time as the purchaser enters into an agreement to purchase the securities, as required by the Saskatchewan legislation.
The Saskatchewan legislation also provides that a purchaser who has received an amended offering memorandum that was amended and delivered in accordance with such legislation has a right to withdraw from the
agreement to purchase the securities by delivering a notice to the person who or company that is selling the securities, indicating the purchaser’s intention not to be bound by the purchase agreement, provided such notice
is delivered by the purchaser within two business days of receiving the amended offering memorandum.
Manitoba, Newfoundland and Labrador and Prince Edward Island Purchasers
Purchasersshould refer to the applicable provisions of the securities legislation of their province for the particulars of these rights or consult with a legal adviser.
U.S. DISCLAIMER
This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any such offer to sell or solicitation of an offer to buy or during presentation
will be made only pursuant to subscription documentation between Elavo and prospective purchasers. Any such offering will be made in the United States in reliance upon an exemption from registration under the U.S.
Securities Act of 1933, as amended (the “U.S. Securities Act”), for an offer and sale of securities that does not involve a public offering, and the offer and sale of the securities will be conditioned on the receipt of
representations, warranties and agreements of prospective purchasers to establish that exemption. The securities of Elavo have not been, and will not be, registered under the U.S. Securities Act and may not be offered or
sold in the United States except in transactions exempt from, or not subject to, registration under the U.S. Securities Act and applicable U.S. state securities laws. Accordingly, the securities of Elavo may not be resold,
pledged, hypothecated or otherwise disposed of or transferred except in accordance with the registration requirements of the U.S. Securities Act and any applicable U.S. state securities laws or pursuant to an applicable
exemption from such registration requirements of the U.S. Securities Act and any applicable U.S. state securities laws.
CONFIDENTIAL
Use of Proceeds Estimate
Feed System
Hopper
Metering Screw
Seals
Processor Inlet
Fit to modified box
Processor
Twin shaft mixer
Cyclones
Main material outlet screw
Cyclone outlet screws
Headspace
Hopper bottom
Slide gates
Use existing equip.
$
New fab.
Condenser
Scrubber section
Tower section
Circulation pumps
Hydrocyclone loop
Separator tank
Heat exchanger
Radiator
Combustion Module
Combustion Air Supply
Burner
Burner tube
Refit burner system
Miscellaneous
Skid modifications
Thermocouples
Controls
Solid waste tank
Rewire controls
Program Controls
Labor
Contingency
Capital - SubTotal
Capital - Total w/ Contingency
New blower
Existing
18,000.00 USD
$
$
$
$
$
$
$
180,000.00
21,600.00
27,000.00
21,600.00
54,000.00
45,000.00
27,000.00
USD
USD
USD
USD
USD
USD
USD
$
$
$
$
$
$
$
36,000.00
27,000.00
10,800.00
14,400.00
36,000.00
10,800.00
27,000.00
USD
USD
USD
USD
USD
USD
USD
$
10,800.00 USD
$
$
18,000.00 USD
9,000.00 USD
$
90,000.00 USD
Existing
Existing
20% of capital
$
$
$
$
$
9,000.00
9,000.00
27,000.00
270,000.00
199,800.00
USD
USD
USD
USD
USD
$ 999,000.00 USD
$ 1,198,800.00 USD
Research & Development Costs
Salaries & Consulting
Prototype Testing
Testing Overheads
R&D Total:
$
365,000.00
500,000.00
100,000.00
965,000.00
USD
USD
USD
USD
Admin Costs
Office Space
Possible Renovations
Administration Totals:
$
$
$
$
300,000.00
100,000.00
25,000.00
425,000.00
USD
USD
USD
USD
Total Costs:
$ 2,588,800.00 USD
Administration Costs
Deliverables:
A working scale model of the Elavo process
Process testing to evaluate process, compenents
Refine, modify any sub-process if required
Heat and mass balances
Fluid recovery efficiency versus temperature
Heat requirements versus fluid content
Emissions profile
Utility requirements (water, power, gas)
Finalize process design parameters
Finalize material handling design parameters
Finalize fluid condensation design parameters
Determine all paramters required for full commercial scale DBM
Time to complete: 3-6 months after kick-off