1

AEROSCRAFT: DELIVERING GAME-CHANGING INNOVATIONFOR GLOBAL CARGO LOGISTICS

Mr. Igor Pasternak Aeros CEOIgor.Pasternak@aeroscraft.com

2

Aeros has pioneered the design, development and assembly of high technology airships that offer the prospect of revolutionizing parts of the global cargo and logistics market

The Aeroscraft is designed to carry up to 250 tons of cargo, features a cargo hold with cubic footage exceeding 40 times that of a 747-8 Freighter, cruises at speeds of over 100 mph, operates at altitudes of up to 12,000 feet and achieve vertical take-off and landing at max payload

AEROSCRAFT

3

TRANSFORMING GLOBAL LOGISTICS

New vertical global transportation system without restrictions

Delivery of cargo to any point on the globe The ability to move greater weights and

higher volumes – 250 tons and one million cubic feet

Vertical take-off and landing (“VTOL”) capabilities reduces infrastructure dependency (airports, etc.)

Provides access to remote and austere locations that other transport carriers cannot provide

Airlifts standard ISO containers

AEROSCRAFT IS A UNIQUE VEHICLE WHICH WILL PROVIDE AN UNPRECEDENTED STRATEGIC ADVANTAGE

The Aeroscraft PrototypeGame Changing Logistics Solutions

The Aeroscraft will rapidly become a meaningful player in the $6 TRILLION

global logistics market*

*IATA Annual Review 2013

4

THE AEROSCRAFT IN ACTION

Source: H2 History Channel

5

Distribution patterns driven by

Changing Economic GeographyContinued GlobalizationImpact of eCommerce

Fundamental Trends in Logistics

GROWTH

DISTRIBUTION LOGISTIC: NEW DIMENSIONAL WORLD

Yesterday’sLogistics

21st Century Logistics

Orders Predictable Variable

Order Cycle Time Weekly Daily or hourly

Customer Strategic Broader base

Customer Service Reactive, rigid Responsive,

flexible

Replenishment Scheduled Real-time

Distribution Model

Supply-driven (push)

Demand-driven (pull)

Demand Stable, consistent More cyclical

Shipment Type Bulk Smaller lots

Destinations Concentrated More dispersion

Warehouse Reconfiguration

Weekly or monthly

Continual, rules-based

Logistics: Corridor

Hub and Spoke

Aeroscraft Network Logistics: Flexible Routing

Constant shifts in logistics operations in the economyrequire new freight distribution and network strategy

6

SIMPLIFYING THE LOGISTICS SUPPLY CHAIN Point-to-point single mode transportation network, taking the “chain” out of supply chain Reduces loss factor of perishables and consumer goods due to delivery delays Able to transport large equipment in an efficient, cost effective manner with no infrastructure

7

Dependent Upon Extensive Infrastructure

Geographically Restricted and Dependent Upon

Extensive Infrastructure

$0.03 $0.04 $0.15 $0.20 $0.40Cost per Ton-mile

Spee

d (m

ph)

500

$0.90

406065

100

A UNIQUE POSITION IN THE TRANSPORT LANDSCAPE

Aeroscraft will offer an innovative transport solutionwithout infrastructure or geographical restrictions

8

REDUCED OPERATING & SUSTAINING COSTS

Compared to conventional airplanes, the Aeroscraft does not burn fuel to create lifting power – only to propel itself forward

Diesel-powered generators produce electricity to drive electric motors (propellers) Reduced fuel consumption compared to other modes of air transportation Approximately 68% less carbon emissions per ton-mile than a Boeing 747 Creates less noise pollution

—Take-off for an Aeroscraft is approximately 60-65 decibels, versus 130-150 decibels for a Boeing 747

Payload Ton-mile per Gallon of Fuel

7 8 23 42 51 73

334

483

0100200300400500600

C-5 Aircraft C-17 Aircraft 747-8 66T Aeroscraft

Truck 250T Aeroscraft

Rail Large Containership

Paylo

ad To

n-M

ile/G

allon

of

Fuel

9

AEROSCRAFT - UNIQUE ATTRIBUTES

Speed Cruising speed of approximately 115 mph

Range Up to 3,100 nautical miles for the ML866; 5,100 nautical miles for the ML868

Fuel Energy requirements and costs are approximately a third of traditional aircraft

costs

Maintenance Maintenance of the vehicle will be easier and less expensive than traditional aircraft

No “pressurization cycles” leads to a longer useful life

Cargo Bay The Aeroscraft’s weight payload and the dimensions of the cargo bay will lead the

way to transport oversize or low density cargo via air

VTOL and Infrastructure Independence

Capable of VTOL operations at full payload, rendering various infrastructure unnecessary

Cargo Handling System

No ground loading or unloading equipment required at departure or landing points ISO Containers will be shipped via Aeroscraft and avoid port and terminal bottlenecks

10

CARGO BAY SIZE

The largest cargo aircrafts remain size-limited, leading to the necessary disassembly of large equipment shipments; in some cases, this even prevents firms from producing larger and better equipment due to the lack of economical, swift transport options

The Aeroscraft will offer a barge-like payload with aircraft range, helicopter speed and VTOL capability

THE AEROSCRAFT’S OUTSIZED CARGO BAY CREATES MANY PREVIOUSLY UNFATHOMABLE OPPORTUNITIES IN THE OVERSIZE AND CONVENTIONAL

CARGO MARKET

ML866: 66-ton Payload ML868: 250-ton Payload

Lockheed C5 Galaxy

11

AEROSCRAFT MARKET SEGMENTS

Cost of carrier fleet Cost of inventory in pipeline inventory reduction ISO containers Redaction modes or single mode

Manufacturing process Automotive assembly parts

On-time delivery Cost of a flexible infrastructure adjustable flexible routes Increasing demand ISO containers Redaction modes or single mode

Consumer goods: small packages

Large shipments

West China online sales

Reduction on direct operating cost Increasing volume (low density) ISO containers Redaction modes or single mode

General cargo Footwear Flowers

Size and weight Lack of receiving, connecting and nodes infrastructure Reduction of product complexity, off-service time and

increasing performance Redaction modes or single mode

Project cargo Wind turbine Large equipment Next generation

satellites “Antonov 124 “

Infrastructure development cost Time to start Reduction of risk factor Redaction modes or single mode

Transportation Enabler

Oil/Gas exploration tower relocation

Mining operation

Integration of product in transition production process ISO containers Redaction modes or single mode

Redistributed manufacturing

Electronics products

Market Segment Economical Effect Type of Operations Illustrated Case

Logistics Pipeline

Distribution Network

Delivery Limitations

Limited Time Logistic

Operations

Manufacturing

Transportation

ABILITY TO HANDLE SEVERAL TYPES OF PROJECTS THAT ARE CURRENTLY UNACHIEVABLE OR UNECONOMICAL VIA EXISTING AIR CARGO OPERATIONS

12

TRANSFORMING GLOBAL LOGISTICS

Several Limitations Including:

Infrastructure independence will substantially increase the size of the market

Ability to bypass multimodal logistics through direct delivery

Oversized cargo bay allows transport of products previously not transportable

Infrastructure limitations prohibit delivery either indefinitely or until time consuming and expensive

Multimodal logistics too costly and time intensive Inability to transport certain oversized cargo

results in partial manufactured products and assembly at final destination

The Aeroscraft Solution

*IATA Annual Review 2013

Today Aeroscraft Future

Global Transportation and Logistics

Market$6.4 Trillion*

Aeroscraft

New Global Transportation and Logistics

Market

Truck Ship Helicopter Airplane

13

AEROSCRAFT & OPERATIONAL PARTNERSAEROSCRAFT CORP. WILL BUILD AEROSCRAFTS AND OPERATE THEM ON FLEET

ACCESS LEASESINITIAL FLEET: 4 OF ML866 (66-TON) AND 18 OF ML868 (250-TON)

Aeros Aeronauti

cal Systems,

Inc.

AerosCargo Airline

LLC

Aeros Logistics

LLC

Aeros Aeronautical Systems, Inc. – manufacturer of Aeroscrafts

Aeros Cargo Airline LLC – provider of crew, maintenance and insurance

Aeros Logistics LLC – charter operations and other logistics services