OVERVIEW. Rand Innovations, LLC 265 Post Road West, Westport, CT 06880

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Tamsin Norman
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1 OVERVIEW RAND 500 is a proprietary blend of friction modifiers, anti-oxidants, and tungsten disulfide nano-particles suspended in a base oil. When added to engine oil, RAND 500 establishes a protective film on engine metal that reduces heat and friction, and prevents degradation. The result is reduced wear and tear (repair costs), extended engine life, improved MPG, and lower carbon emissions. RAND 500 has been in vehicles for four years with no adverse effects. Beginning in 2012, RAND 500 has been tested (see TESTING) and proven effective in a wide variety of real-world and laboratory settings. Rand Innovations, LLC 265 Post Road West, Westport, CT 06880

2 T E S T I N G Testing began in Vehicles were put on dynameters and emissions were collected and weighed before and after RAND 500 was added to engines. Carbon emissions were reduced by +/- 5% when RAND 500 was added to engines, indicating that engines with RAND 500 were burning less fuel. In August, 2012, RAND 500 was tested at the Southwest Research Institute in San Antonio, Texas. The testing protocol was SAE J1321, an established methodology for measuring fuel consumption. Three 2012 model (Class 8) trucks were tested driving 44-mile test laps on Texas Interstate 37. The testing method was gravimetric fuel tanks were weighed after the test laps were completed. The weight of the tank was the measure of fuel consumption (with all other variables constant). All three vehicles showed an improvement in MPG after RAND 500 was added to the engine. See reverse side of this sheet for results. In 2013 and 2014 RAND 500 was tested in real-world conditions. Beginning in 2013, Nestle Corporation agreed to a test of RAND 500 in its Nestle Waters trucking fleet. These vehicles were Class 5 and 6 delivery trucks engaged in stop and start driving. Initial tests (2013) established an improvement in MPG of approximately 4%. As a result, Nestle agreed to a larger test in In the period from June, 2014 December, 2014, Nestle tested RAND 500 in 26 vehicles and measured results using an onboard telematics system. A baseline was established in June - July, and then RAND 500 was added to the vehicles. In the first month after RAND 500 was added to engines, MPG improved on average 4.52%. Over the ensuing 4 months, the effect of RAND 500 slowly declined with a 5-month average improvement in MPG of 3.12%*. Included in this brochure is the spreadsheet showing test results (with permission of Nestle Corporation). As a result of these test results, Nestle Waters now uses RAND 500 in all vehicles aged 2012 or older. *NOTE: Two important points about the Nestle testing: (1) the testing was done on vehicles that had been previously scheduled for maintenance (including oil changes); RAND 500 is flushed from a vehicle during an oil change, reducing the average MPG improvement; and (2) some of the Nestle mechanics indicated that during the test periods, they experienced fewer repair expenses (see REPAIRS AND MAINTENANCE).

3 Southwest Research Institute SAE J1321 Improvement in Fuel Economy Over Baseline* New Freightliner Cascadias Long-Haul Driving % % 0.6% Control Truck No Rand 500 Test Truck #1 Rand 500 Added Test Truck #2 Rand 500 Added Test Truck #3 Rand 500 Added * Baseline: No Rand 500

4 REPAIR AND MAINTENANCE EXPENSES Although our information is anecdotal, we believe that regular use of RAND 500 will reduce annual repair and maintenance expenses a significant factor in fleet overhead. Here are some of the quotes we have heard from Nestle field techs using RAND 500: We examined oil during an oil change in those vehicle using RAND 500. There were fewer metal flakes in the oil. We observed that our turbo failures were greatly reduced. We had experienced 4-5 failures every year. Once we started adding RAND 500, we've only had one We were surprised to see that after adding RAND 500, our oil consumption between maintenance cycles dropped dramatically. Further proof of RAND 500 s engine protection was found in the laboratory. In 2016, we tested RAND 500 in an SRV machine widely believed to best replicate actual engine conditions.* The results of that testing is on the reverse side of this page. Engine friction (coefficient of friction) was reduced approximately 1/3 and wear scar (metal degradation) was reduced by 50%. Repair and maintenance (RM) expenses have been quantified. An annual study by the American Transportation Research Institute reveals that average RM costs for trucking fleets are 14.8 cents per mile (second only to fuel expense). If regular use of RAND 500 can reduce repair/maintenance expenses by 10%, that is a savings of 1.5 cents per mile, and for a vehicle that runs 50,000 miles/year, the savings equal $750 per truck. *We have also tested RAND 500 in the 4-ball wear and pin and vee block machines - with similar results indicating significantly lower friction and reduced wear and tear.

5 REPAIR AND MAINTENANCE EXPENSES Using RAND 500 Reduced Wear Scar By 50% :03 24:06 36:10 48:13 1:00:17 1:12:20 1:24:23 1:36:27 1:48: Wear Scar Wear Scar Wear scar* Coefficent of friction Leading heavy duty motor oil Leading heavy duty motor oil with RAND * Volume in cubic microns *ASTM #5707 Standard Test Methodology for Measuring Friction and Wear Properties using a Linear Oscillation (SRV) Test Machine. Testing done at RT Vanderbilt Labs, Norwalk CT.

6 TUNGSTEN DISULFIDE (WS 2) NANOPARTICLES SCIENTIFIC RESEARCH The application of sheer stress (to the WS 2 particles) cause a surface layer to be sloughed off preventing wear on the lubricated component. Further, the shape of the fullerenes can prevent wear from occurring. The natural spherical shape of the particles causes them to function as nanometric ball bearings rolling with the motion of the components. The excellent mechanical properties of the fullerene prevents them from flattening and breaking down outstanding shock resistance properties. Carbon Fiber and Tungsten Disulfide Nanoscale Architectures for Armor Application, THESIS, NAVAL POSTGRADUATE SCHOOL, Monterey, California, Michael J. Moberg, June 2012 Evaluation of the tungsten disulfide-based nanoparticles has shown that they significantly reduce friction, wear and operating temperatures better than conventional solid lubricants As suspended in oils and greases, the IF nanoparticles can be thought of as literally billions of nano-sized ball bearings. In operation, once mixed or boundary lubrication conditions are encountered, these nanoparticles exfoliate and form a very thin tribofilm that spreads about the substrate. Nanoparticle-Based Solid Lubricants, Tribology & Lubrication Technology Magazine, November, 2007 (H)ollow onion-like nanoparticles were the first inorganic fullerene-like materials, found in Understanding of the IF-MS growth mechanism in 1996 enabled us to build a rather simple reactor, which produced almost pure IF WS 2 powder. Soon after, it was found that the new powder showed better tribiological properties will exhibit superior tribiological properties, than reported before. New Reactor for Production of Tungsten Disulfide Hollow Onion-Like (Inorganic Fullerene-Like) Nanoparticles, Feldman, Zak, Bior, Tenne, Solid State Sciences, Elsevier, March, 2000

TUNGSTEN DISULFIDE (WS 2) NANOPARTICLES The exfoliated mono-layers of WS 2 form thin films on the friction surface, which serve to protect the metal surfaces from oxidation, friction, and wear.

7 TUNGSTEN DISULFIDE (WS 2) NANOPARTICLES The exfoliated mono-layers of WS 2 form thin films on the friction surface, which serve to protect the metal surfaces from oxidation, friction, and wear. Nanomaterials for Gear Lubrication Solutions, Zak, Fleischer, Zarbuv, Drangai and Genut, Gear Solutions, December, 2009 One of the critical elements in our formulation is tungsten disulfide nanoparticles, and in particular inorganic fullerenes (WS 2). Discovered in 1992, these unique particles are beginning to be commercialized. The effects of WS 2 in the engine can be seen with an electron microscope*: Figure 1 Figure 2 Figure 3 Figure 1 shows the layers of an inorganic fullerene nano-particle. With a spherical shape and a skin that peels away with motion, they act like tiny roller bearings. Figure 2 shows the particles upon entry to the engine they move toward the metal and begin to cut down on friction. Figure 3 shows why the tungsten disulfide acts as an engine protection. As the layers peel off, they form a protective film on engine metal. This film is the armor that reduces metal degradation. *The transmission electron microscope photography is courtesy of Professor S. Csillag and colleagues at Stockhold University. WS 2 particles have been extensively studied over the last decade. See the reverse side of this page.

8 PATENTS RAND Innovations, LLC currently has two patents issued and three patents pending relative formulations for lubricants using tungsten disulfide nanoparticles. Issued Patents US 9,222,050 B1 US 9,228,151 B1 Patents Pending Docket No. RLO0001USC Docket No. RLO0004US3 Docket No. RLO0007USD For further information, contact patent attorney Grant Ehrlich, Cantor, Coleburn, 20 Church Street, Hartford, CT Phone

9 REGULATORY ENVIRONMENT Every fleet manager and trucking company needs to be aware of pending and proposed State and Federal regulations the intent of which is to cut carbon emissions. The Paris climate conference (December, 2015) and agreement, adopted by 195 countries, is the first-ever universal, legally binding global climate deal. This agreement will kick off Federal regulations that target carbon emissions from all vehicles, and with a target of low-mpg, heavy-duty vehicles. RAND 500 in one part of a multi-tiered solution to regulations. As engines run more efficiently, less fuel is burned and lower carbon emissions are emitted into the atmosphere. Using RAND 500 will reduce carbon emissions approximately in lock step with improvements in MPG - so a 4% increase in MPG will equate to about a 4% decrease in carbon emissions. According to the government, heavy-duty trucks are the second largest and fastest growing segment of the U.S. transportation sector in terms of emissions and energy use. Medium- and heavy-duty vehicles currently account for about 20% of GHG (green house gases) emissions but are only 5% of the vehicles on the road. Fleet Owner Magazine, June, 2015

10 ECONOMIC PROPOSITION RAND 500 works best in older vehicles (4-5 years or older) engaged in city or stop-and-start driving. Our experience indicates that this type of vehicle can achieve four benefits from a regular use of RAND 500: 1. IMPROVEMENT IN MPG expectation 4%+/- 2. REDUCTION IN GREEN HOUSE GASES (carbon emissions) expectation 4%+/- 3. DECREASED REPAIR AND MAINTENANCE EXPENSES 4. EXTENDED ENGINE LIFE RAND 500 is priced at $40/quart and should yield a 5:1 return on investment. RAND Innovations, LLC is located in Westport, Connecticut. Our product liability carrier is Chubb Insurance.

11 R AND 500 ENGINE PROTEC TION REAL WORLD EXPERIENCE Nestle Waters and Poland Spring now use RAND 500 in their fleets across the United States.

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