FUEL EFFICIENCY CASE STUDY

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FUEL EFFICIENCY CASE STUDY Vehicle: Engine: Caterpillar 980H Wheel Loader Caterpillar 6 cylinder C15 Acert - 349HP CS29 Version 3.0 2012 Eight Mile Plains QLD 4113

EXECUTIVE SUMMARY UNIT 141 BACKGROUND Biotechnix installed the Biotechnix Fuel System on this 980H Caterpillar Loader on 3 rd November 2011. The machine is powered by a Caterpillar C15 Acert 6 cylinder diesel engine. The machine is exclusively used for coal train loading at the Jondaryan Loop for the Acland Coal Mine. OBJECTIVES To compare the improvement in diesel fuel consumption after installing the Biotechnix Fuel System prior to installing the Biotechnix Fuel System. RESULTS After the Biotechnix Fuel System bedded in (approx. 2 weeks) the fuel saving became evident. At the end of the project the overall fuel saving across the three and a half months (2,006 hrs) was 10%. This equates to 23,830 litres of fuel saved per year. Using a fuel cost of $1.45 per litre this translates into a projected saving of $34,554 per year or $69,108 over a 2 year period. Carbon emissions were reduced by 5.35 tonnes per month or approximately 64.2 tonnes per year. Model: Engine: Fleet #: Av. Hrs/yr: Profile: Caterpillar 980H CAT C15 Acert 141 6,170 hrs p.a. Coal Train Loader FINAL RESULTS (performance at project completion) 28.0 L/Hour VEHICLE WORK PROFILE PROJECT RESULTS BEFORE INSTALL (562 hour history prior to installation of BFS) 31.3 L/Hour 10% IMPROVEMENT CARBON FOOTPRINT $ SAVING FUEL SAVING Reduced by 5.35t per month 64.2t per year @ $1.45 / litre $2,879 per month $34,554 per year Reduced by 1,986 litres per month 23,830 litres per year CS29 Version 3.1 Page 2 of 9

EXECUTIVE SUMMARY UNIT 140 BACKGROUND Biotechnix installed the Biotechnix Fuel System on this 980H Caterpillar Loader on 3 rd November 2011. The machine is powered by a Caterpillar C15 Acert 6 cylinder diesel engine. The machine is exclusively used for coal train loading at the Jondaryan Loop for the Acland Coal Mine. OBJECTIVES To compare the improvement in diesel fuel consumption after installing the Biotechnix Fuel System prior to installing the Biotechnix Fuel System. RESULTS At the end of the project the overall fuel saving across the three and a half months (1,997 hours) was 7%. This equates to 14,151 litres of fuel saved per year. Using a fuel cost of $1.45 per litre this translates into a projected saving of $20,519 per year or $41,038 over a 2 year period. Carbon emissions were reduced by 3.18 tonnes per month or approximately 38.16 tonnes per year. Model: Engine: Fleet #: Av. Hrs/yr: Profile: Caterpillar 980H CAT C15 Acert 140 5,250 hrs p.a. Coal Train Loader FINAL RESULTS (performance at project completion) 28.1 L/Hour VEHICLE WORK PROFILE PROJECT RESULTS BEFORE INSTALL (459 hours history prior to installation of BFS) 30.2 L/Hour 7% IMPROVEMENT CARBON FOOTPRINT $ SAVING FUEL SAVING Reduced by 3.18t per month 38.16t per year @ $1.45 / litre $1,710 per month $20,519 per year Reduced by 1,179 litres per month 14,151 litres per year CS29 Version 3.1 Page 3 of 9

PROJECT VEHICLES These Caterpillar 980H wheel loaders are used for coal loading at the Jondaryan Coal Loading facility. A Biotechnix Fuel System (BFS) was fitted to both loaders on 3 rd November 2011. The fitting was made by clamping the BFS directly to the outside of the fuel line. In order to monitor the machine s performance, historical fuel data prior to installation of the system was collected and processed to determine the fuel efficiency of the vehicle without the BFS installed. This was the baseline from which the improvement in performance was calculated. The post-installation monitoring of the vehicle s performance commenced from 4 th November 2011 and continued until February 2012. Figure 1 Cat 980H Loader Unit 140 Figure 2 Cat 980H Loader Unit 141 CS29 Version 3.1 Page 4 of 9

CATERPILLAR 980H LOADER - UNIT 140 The Biotechnix Fuel System can take up to a month to take full effect, this is what we refer to as the bedding in period. For this machine, once it had reached 500 operating hours (approximately 1 month), consistent and substantial reductions in fuel consumption were achieved. At the end of the 3 ½ month project (1,997 hours), a total improvement of 7% was achieved. It is important to note that a more accurate representation of the ongoing savings is to remove the first month from calculations as the system had not yet reached its potential in terms of ongoing consistent fuel savings. With the first month removed, the expected ongoing saving was recorded at 8%. However, to ensure Biotechnix provides conservative projections that the customer can depend on, the first month has been included in the overall trial result calculations. This conservative 7% saving equated to a total fuel saving of 4,176 litres over the 3 ½ month period. 8% 7% 6% 5% 4% 3% 2% 1% 0% % Fuel Saving (Cumulative Improvement Over Project) 0 250 Hrs 500 Hrs 750 Hrs 1000 Hrs 1500 Hrs 2000 Hrs Percent Saving 0% 0% 3% 6% 7% 7% 7% Figure 3 Fuel Saving Graph for Cat 980H Loader Unit 140 Note: Major operational hour milestones shown in the above chart are used for consistency purposes in Biotechnix case studies. They roughly align, but are not an exact match, with the km and fuel data intervals provided by the owners of the machine. FUEL SAVINGS TRANSLATED INTO DOLLAR SAVINGS - UNIT 140 In dollar terms the 7% improvement over the three and a half months of the project is the equivalent ongoing saving of $1,710 per month (based on fuel cost of $1.45 per litre). It is expected that approximately $20,519 would be saved on an annual basis. Over a two year period (the standard warranty period of the BFS) on this one machine the BFS can save over 8,770 litres with an estimated saving of $41,038. NB: This is a conservative estimate as it does not factor in a rise of diesel costs over the next 2 years. CS29 Version 3.1 Page 5 of 9

REDUCTION OF GREENHOUSE GAS (GHG) EMISSIONS - UNIT 140 The reduction in fuel consumption results in a corresponding reduction in carbon emissions. For every litre of fuel that is saved by using the Biotechnix Fuel System, carbon emissions from this machine are reduced by 2.695 Kg. [Reference for Kg of CO 2: "Carbon Emissions from New Australian Vehicles 2013" prepared by National Transport Commission - ISBN: 978 1 921604 07 2] Using the fuel saving calculated over the period of the project, carbon emissions for this machine were reduced by 3.18 tonnes per month or 38.14 tonnes per year. RETURN ON INVESTMENT (ROI) UNIT 140 In this instance the BFS would be paid for in full by the related cost savings within 2 months of purchase. Over a period of 2 years this system on this vehicle alone would generate an additional $38,650 profit in fuel savings. CS29 Version 3.1 Page 6 of 9

CATERPILLAR 980H LOADER - UNIT 141 The Biotechnix Fuel System can take up to a month to take full effect, this is what we refer to as the bedding in period. For this machine, once it had reached 250 operating hours (approximately 2 weeks), consistent and substantial reductions in fuel consumption were achieved. At the end of the 3 ½ month project (2,006 hours), a total improvement of 10% was achieved. It is important to note that a more accurate representation of the ongoing savings is to remove the first month from calculations as the system had not yet reached its potential in terms of ongoing consistent fuel savings. With the first month removed, the expected ongoing saving was recorded at 11%. However, to ensure Biotechnix provides conservative projections that the customer can depend on, the first month has been included in the overall trial result calculations. This conservative 10% saving equated to a total fuel saving of 6,576 litres over the 3 ½ month period. % Fuel Saving (Cumulative Improvement Over Project) 12% 10% 8% 6% 4% 2% 0% 0 250 Hrs 500 Hrs 750 Hrs 1000 Nrs 1500 Hrs 2000 Hrs Percent Saving 0% 9% 10% 10% 10% 10% 10% Figure 4 Fuel Saving Graph for Cat 980H Loader Unit 141 Note: Major operational hour milestones shown in the above chart are used for consistency purposes in Biotechnix case studies. They roughly align, but are not an exact match, with the km and fuel data intervals provided by the owners of the machine. FUEL SAVINGS TRANSLATED INTO DOLLAR SAVINGS - UNIT 141 In dollar terms the 10% improvement over the three and a half months of the project is the equivalent ongoing saving of $2,879 per month (based on fuel cost of $1.45 per litre). It is expected that approximately $34,554 would be saved on an annual basis. Over a two year period (the standard warranty period of the BFS) on this one machine the BFS can save over 47,660 litres with an estimated saving of $69,108. NB: This is a conservative estimate as it does not factor in a rise of diesel costs over the next 2 years. CS29 Version 3.1 Page 7 of 9

REDUCTION OF GREENHOUSE GAS (GHG) EMISSIONS - UNIT 141 The reduction in fuel consumption results in a corresponding reduction in carbon emissions. For every litre of fuel that is saved by using the Biotechnix Fuel System, carbon emissions from this machine are reduced by 2.695 Kg. [Reference for Kg of CO 2: "Carbon Emissions from New Australian Vehicles 2013" prepared by National Transport Commission - ISBN: 978 1 921604 07 2] Using the fuel saving calculated over the period of the project, carbon emissions for this machine were reduced by 5.35 tonnes per month or 64.22 tonnes per year. RETURN ON INVESTMENT (ROI) UNIT 141 In this instance the BFS would be paid for in full by the related cost savings within 1 months of purchase. Over a period of 2 years this system on this vehicle alone would generate an additional $66,720 profit in fuel savings. CS29 Version 3.1 Page 8 of 9

THE TECHNOLOGY The Biotechnix Fuel System is an electronic device that produces a series of engineered frequencies which, when applied to the fuel line, changes the molecular structure of the fuel causing the fuel to combust faster and therefore more completely. This is a new approach to improving engine efficiency; it is not an additive and is not magnetic. INCREASE TORQUE: Each combustion cycle in an engine lasts for only a fraction of a second. Because the BFS reduces the time needed to combust the fuel, more of it burns prior to the fuel being expelled from the engine. This increases torque as more of the fuel is used to power the engine and less partially burned fuel is sent out the exhaust. REDUCE FUEL: Because the engine is able to produce more power from the same amount of fuel, it can run at lower RPM to do the same work. When the engine runs at lower RPM it uses less fuel and thus reduces fuel costs. REDUCE EMISSIONS: Reduced fuel consumption also means reduced carbon emissions. For example, if fuel consumption is reduced by 5% then there is a corresponding 5% reduction in carbon emissions. In real terms, a 5% saving for a typical truck equates to a fuel saving of about 500L per month. Which at 2.695kg of C02 per litre would give this this vehicle a reduced carbon footprint of 16.2 tonnes per year. In addition to the carbon emission reduction, DT-80 vehicle emissions testing has shown a reduction in smoke opacity (soot) of over 55%. NON-INVASIVE AND SAFE FOR YOUR ENGINE: The Biotechnix Fuel System is completely safe for your engine. Because it is non-invasive, it will not void engine warranties and will continue to produce fuel savings for the life of the system. CS29 Version 3.1 Page 9 of 9