TheThe combinationcombination ofof UsedUsed TireTire WasteWaste reductionreduction andandconversionconversion toto marketablemarketable byby--productsproducts isis thethe mostmosteconomicaleconomical andand profitableprofitable applicationapplication forfor usedused tiretirewastewaste.. TheThe QESQES systemsystem isis thethe leadingleading edgeedge andand

QUADRA PROJECTS INC.

11

wastewaste.. TheThe QESQES systemsystem isis thethe leadingleading edgeedge andandenvironmentallyenvironmentally friendlyfriendly conversionconversion systemsystemavailableavailable.. WhenWhen consideringconsidering thethe reductionreduction ofof vectorvectorproblemsproblems associatedassociated withwith landland fillingfilling ofof usedused tirestiresandand thethe potentialpotential incomeincome fromfrom thethe salesale ofof byby--products,products, thisthis isis anan economicaleconomical andand environmentalenvironmentalWinWin--WinWin businessbusiness proposalproposal..

22

ThousandsThousands ofof landfillslandfills existexist internationallyinternationally.. MostMostcommunitiescommunities considerconsider themthem anan eyesoreeyesore andand aa sourcesourceofof considerableconsiderable pollution,pollution, whichwhich threatensthreatens thethe airairandand groundground water,water, notnot toto mentionmention birds,birds, rodentsrodents andandattendantattendant vectorvector problemsproblems withwith thethe potentialpotential totospreadspread diseasedisease.. UsedUsed TireTire WWasteaste growsgrowsexponentiallyexponentially whichwhich isis aa majormajor concernconcern toto HumanityHumanity..

TheThe presentpresent RealityReality isis thatthat PublicPublic LandfillsLandfills areare notnot thetheTheThe presentpresent RealityReality isis thatthat PublicPublic LandfillsLandfills areare notnot thetheansweranswer toto thethe UsedUsed TireTire WasteWaste ProblemsProblems thatthat facefacemankindmankind.. TheThe SocialSocial costscosts cannotcannot bebe underunder statedstated andandthethe damagedamage toto PublicPublic healthhealth andand toto thethe environmentenvironmentshouldshould bebe ofof paramountparamount importanceimportance toto allall.. ThisThis isiscausedcaused byby thethe indeterminateindeterminate decompositiondecomposition raterate forforusedused tirestires inin aa landfilllandfill.. TheseThese posepose significantsignificantleachingleaching problemsproblems amongstamongst thethe concernsconcerns previouslypreviouslymentionedmentioned..

33

TheThe QESQES20002000 SystemSystem eliminateseliminates allall thethe hazardshazards associatedassociatedwithwith UsedUsed TireTire WasteWaste throughthrough itsits combinedcombined pyrolysispyrolysis--gasificationgasification systemsystem convertingconverting thethe usedused tirestires intointomarketablemarketable byby--products,products, suchsuch asas fuelfuel oiloil andand carboncarbon blackblack ..TheseThese byby--productsproducts maymay bebe soldsold toto industrialindustrial usersusers turningturninganan environmentalenvironmental hazardhazard intointo aa longlong termterm revenuerevenuegeneratinggenerating assetasset ..

TheThe QESQES SystemSystem hashasthethe abilityability toto produceproduceva r i ou sva r i ou s g r ade sg r ade s o fo fcarboncarbon blackblack rangingrangingf r o mf r o m b i o c h a rb i o c h a r t ot oa c t i v a t e da c t i v a t e d c a r b o nc a r b o n

44

UsingUsing llandfillandfill sitessites forforthethe disposaldisposal ofof UsedUsedT i r eT i r e W a s t eW a s t e i si s a na nexpensiveexpensive answeranswer toto aag r ow i n gg r ow i n g p r o b l emp r o b l em ..U t i l i z i n gU t i l i z i n g QESQES2 0 0 02 0 0 0TechnologyTechnology offersoffers aagoodgood alternativealternative planplanTechnologyTechnology offersoffers aagoodgood alternativealternative planplanwithwith significantsignificant savingssavingsinin bothboth capitalcapital andandopera t ingopera t ing cos t s ,cos t s , ininadditionaddition toto thethe potentialpotentialforfor revenuerevenue fromfrom thethesalesale ofof byby--productsproducts..

55

Annual volume of used tire wasteAnnual volume of used tire waste

The federal Environmental Protection Agency reportsthat 290 million scrap tires are generated each year.Missourians alone generate approximately 5 millionscrap tires each year. A variety of pests, includingmosquitoes capable of carrying the West Nile Virus,

66

mosquitoes capable of carrying the West Nile Virus,breed and live in old tires. Tires also take up much-needed landfill space. Tires release harmful pollutantsinto the environment, particularly if they catch fire. Onepassenger car tire may produce 2 gallons of oil whenburned. And they mar the beauty of nature and blightour urban landscapes. Its easy to see why we have to dosomething about waste tires.

OVERVIEW OF THE QES2000 SYSTEMOVERVIEW OF THE QES2000 SYSTEM

nn FACTORY BUILDING FACTORY BUILDING REQUIREMENTSREQUIREMENTS

nn SPACE (W x L x H): Min: SPACE (W x L x H): Min: 10m x 20m x 7m10m x 20m x 7m

77

10m x 20m x 7m10m x 20m x 7m(not including the office and (not including the office and storage)storage)

nn Water Supply: 10 tons/per Water Supply: 10 tons/per dayday

nn Electricity: 45KW / 220VElectricity: 45KW / 220V

77

Modules List of QES2000 Basic PlantModules List of QES2000 Basic Plant

ShredderLoading Loading Machine

QES2000

1 2 3

88

MachineMachine

UnloadingUnloadingMachine

Platform

4 5

12.4m

2.3

m 2.3

m

uuProcess rate: Process rate: about 2 ton per about 2 ton per hourhour

uuLoading Size : > Loading Size : >

1. SHREDDER1. SHREDDER

1010

uuLoading Size : > Loading Size : > 1600 x 11001600 x 1100

uuPower Power consumption: < consumption: < 60KW60KW

uuCutting Size: < Cutting Size: < 100mm100mm

uu Storage capability: Storage capability: 2 ton2 ton

uu Power consumption: Power consumption: < 10KW< 10KW

uu Vacuum & AirtightVacuum & Airtight

2. Loading Machine2. Loading Machine

1111

uu Vacuum & AirtightVacuum & Airtightuu Loading speed: 2 ton Loading speed: 2 ton

per hourper houruu Stirrer functionStirrer functionuu Chemical material Chemical material

feeder feeder

uu Unloading speed: 2 ton Unloading speed: 2 ton per hourper hour

uu Power consumption : < Power consumption : < 5KW5KW

uu Max Inlet temperature Max Inlet temperature < 1000C< 1000COutlet temperature < Outlet temperature <

4. Unloading Machine4. Unloading Machine

1212

uu Outlet temperature < Outlet temperature < 80C80C

uu Water sealingWater sealinguu Water consumption < 5 Water consumption < 5

ton per hour, recyclable.ton per hour, recyclable.uu Unloading machine will Unloading machine will

be changed to apply for be changed to apply for different kind of bydifferent kind of by--products.products.

uuSteel StructureSteel StructureuuLoading weight > Loading weight >

50 ton50 tonuuSize: 5m x 15m x Size: 5m x 15m x

5. Platform5. Platform

1313

uuSize: 5m x 15m x Size: 5m x 15m x 60cm (W x L x T)60cm (W x L x T)

uuHeight: 1.8mHeight: 1.8m

uu POWER REQUIREMENTS IN KWH 200VOLT 3PHASE POWER REQUIREMENTS IN KWH 200VOLT 3PHASE REQUIREDREQUIRED

uu QES2000 QES2000 35KWH35KWHuu Shredder Shredder <60KWH<60KWHuu Forming and Grinder System for CBForming and Grinder System for CB 35KWH35KWH

–– Air Pollution & control systemAir Pollution & control system 10KWH10KWH

Power RequirementsPower Requirements

1414

–– Loading SystemLoading System <10KWH <10KWH –– Unloading SystemUnloading System <5KWH<5KWH

uu Waste Water Treatment SystemWaste Water Treatment System 2KWH2KWHuu Oil Storage Tank & PumpOil Storage Tank & Pump 1KWH1KWHuu Centrifugal Moisture Removal SystemCentrifugal Moisture Removal System ((estest10KWH)10KWH)

uu Pumps for Acid Washing SystemPumps for Acid Washing System ((estest2KWH)2KWH)

Typical Used Tire Plant Layout

1515

ItemNumber Item

1 Conveyor2 Steel Removal Unit 13 Steel Removal Unit 24 Tire Quartering Machine5 Belt Conveyor 16 Shredder Unit 1

1616

6 Shredder Unit 17 Belt Conveyor 28 Shredder Unit 29 Magnetic Separator (internal)

10 Steel Transport Conveyor11 Shredder Output Conveyor12 Electrical Control System

1717

WHAT A QES2000 PLANT CAN DOWHAT A QES2000 PLANT CAN DO

Fuel Oil

1818

Gas

Carbon/fertilizer

Carbon black

QES2000 SYSTEM

BY PRODUCTS FROM USED BY PRODUCTS FROM USED TIRE WASTETIRE WASTE

uu TheThe QESQES20002000 SystemSystem utilizesutilizes ananadvancedadvanced 22 phasephase processprocessincorporatingincorporating steamsteam..

uu TheThe firstfirst phasephase beingbeing pyrolysispyrolysiswhichwhich servesserves toto crackcrack wastewaste intointoitsits chemicalchemical componentscomponents..

uu TheThe secondsecond phasephase isis gasificationgasification

Fuel Oil Gas

uu TheThe secondsecond phasephase isis gasificationgasificationdesigneddesigned toto eliminateeliminate emissionsemissionsandand createcreate highhigh qualityquality byby--productsproducts fromfrom thethe componentscomponentscreatedcreated byby thethe pyrolysispyrolysis phasephase..

uu TheThe QESQES20002000 SystemSystem isischaracterizedcharacterized byby itsits operatingoperatingefficiencyefficiency andand negligiblenegligibleemissionsemissions..

Carbon blackBiochar

1919

Waste Received from client

Special loading machine(3 ton/hour)

Oil Storage Tank

QES2000BreakerWith Magnetic separator

Metal

Weigh-bridge

20 ton per day

conveyor

1

2 3

4

5

1011

Gas Tank

QES 2000 PLANTQES 2000 PLANT

Waste Water treatment Tank

Special unloading machine(one ton per hour)

Dryer with Magnetic Separator

Off gas from QES2000S

Glass , ceramic, silicon, precious metalMetal(Pb, Sn, others)

Metal

Steel Storage Tank

6

79

Central Air pollution control

system8

Room Air

Plastic

Plastic

Glass

What does the plant look that?What does the plant look that?

QES2000 OUTLOOKQES2000 OUTLOOK

1 40 Feet Container platform

2 QES2000 REACTOR

3 Gas & Oil furnace

4 Heat Exchanger

5 Oil & Gas treatment system

6 Oil & Water treatment system

Equipment PlacementEquipment Placement

1

3

2

4

5

Power RequirementsPower Requirements

uu POWER REQUIREMENTS IN KWH 200VOLT 3PHASE POWER REQUIREMENTS IN KWH 200VOLT 3PHASE REQUIREDREQUIRED

uu QES2000 QES2000 35KWH35KWHuu Shredder Shredder <60KWH<60KWHuu Forming and Grinder System for CBForming and Grinder System for CB 35KWH35KWH

–– Air Pollution & control systemAir Pollution & control system 10KWH10KWH–– Air Pollution & control systemAir Pollution & control system 10KWH10KWH–– Loading SystemLoading System <10KWH <10KWH –– Unloading SystemUnloading System <5KWH<5KWH

uu Waste Water Treatment SystemWaste Water Treatment System 2KWH2KWHuu Oil Storage Tank & PumpOil Storage Tank & Pump 1KWH1KWHuu Centrifugal Moisture Removal SystemCentrifugal Moisture Removal System (est (est 10KWH)10KWH)

uu Pumps for Acid Washing SystemPumps for Acid Washing System (est (est 2KWH)2KWH)

Mass BalanceMass Balance

PyrolysisEnergy

Dry MSW =

MSW Inlet1000kgMoisture 20%

Fuel required for system = 192kg (1007KW)

Fuel oil about = 120kgDryer200kg

Fuel Gas = 248kg

Dry MSW = 800kg

Fuel oil about = 120kg200kg

Solid By-productsAbout 350~440kg

Water = 200kgTotal Net Energy = 1907KWAbout = 56kg fuel gas

120kg fuel oil

Heat BalanceHeat Balance

PyrolysisEnergy327KW

MSW Energy Input2907KW/per ton(2500kcal/per kg)Moisture=20%

Net Energy1900KW/per tonEnergy lost is about=34%

Dryer680KW

Energy input1007KW

Moisture increased will increase the heat lost for moisture removing

Stage I < 450CPyrolysis process

Stage II 550C ~ 850C

Super-Heated SteamIndirect Heat

Waste Loading

GasTEC

QES 2000 PROCESS FLOW

Stage II 550C ~ 850C/Gasification

/deep pyrolsis process/ Activated process Super-Heated Steam

Indirect Heat

Waste unloading

Fuel Oil/Fuel Gas

Carbon purification Carbon purification

Acid Washing Cleaning

5% ~10%HCL/H2SO4/HNO3 Water

Dryer

Hot Gas

CarbonResidue

Pure Carbon

Acid Washing Cleaning Dryer

neutralization

Sewage

Residue Carbon

Air pollution processAir pollution process

GasTecGas Cleaning

99%

Combustion1200C

De-Dioxin

PyrolysisProcess60%

MSWInlet

10 times Air

Central Gas Cleaner

90%

Solid By-Products

Total Removing rate99.96%

uu The following are the specifications of the QES2000 modelThe following are the specifications of the QES2000 model–– Power Consumption: < 25KWH, 220V 3PhasePower Consumption: < 25KWH, 220V 3Phase–– Startup Diesel Oil Consumption: < 150L/hr.Startup Diesel Oil Consumption: < 150L/hr.

uu QES2000QES2000–– Water Consumption: 100L/hr Max Operating Temperature: 850CWater Consumption: 100L/hr Max Operating Temperature: 850C–– Processing Rate: 1.5T/hr ~ 3T/hrProcessing Rate: 1.5T/hr ~ 3T/hr–– Dimension (L X W X H): 12m x 2.4m x 2.4mDimension (L X W X H): 12m x 2.4m x 2.4m

SpecificationsSpecifications

–– Max Condenser Processing Rate: 5000CMHMax Condenser Processing Rate: 5000CMH–– Max Chamber’s Volume of Reactor: about 2.8mMax Chamber’s Volume of Reactor: about 2.8m3 3

–– Max Size of Loading: D=300mmMax Size of Loading: D=300mm–– Reactor D=600mmReactor D=600mm–– Max size of unloading D300=mmMax size of unloading D300=mm–– Gas Cleaner Capacity 95%Gas Cleaner Capacity 95%–– Max unloading speed 2/ton/hourMax unloading speed 2/ton/hour–– Water tank 2 tonWater tank 2 ton–– Oil tank 2 tonOil tank 2 ton

Waste Composition MSWWaste Composition MSW

• Typical Municipal Solid Waste MSW composition•Moisture : 20%• Plastic, rubber, fiber… : 25%• Food Waste, plant, paper, wood .. : 41%•Glass, Metal, Stone, : 15% •Heat value: 2500 kcal/per kg

ASSUMED TYPICAL CONTENTS OF FEEDSTOCK IS AS FOLLOWS: COMPONENT LIST OF GENERAL WASTE (99 TONS/DAY)

% OF MSW (TONS/DAY) % OF MSW (TONS/DAY) PRODUCTSAssumed waste content (100%) gravity/processing tons per day 100.0% 99Water content 20.0% 19.8 none Plastic and waste rubber (garbage bags, plastic bags, cloth, shoes etc.) 24.0% 23.76 Fuel oil, CBGreen waste, kitchen waste, animal other organic material 41.0% 40.0 Fuel oil, CB, fertz.Glass 10.0% 9.9 Recycle and sell Other metal substances 5.0% 4.95 Recycle and sellAfter pre-separation, the total amount of waste to be processed by QES is 65 tons, including plastic and waste rubber (from garbage bags, plastic bags, clothes and shoes, etc.), used electronics, green waste, kitchen waste, animal and other organic wastes.

Used Tire Chips and Rubber QES PYROLYSIS

Annual tons processed 16,500 Tons Flash point<40, Light Oil

Carbon Black

Fuel oil conversion rate 35.0% 40%Fuel oil output (ton) 5,544 6600

Waste Composition – USED TIRES

Fuel oil output (ton) 5,544 6600N220 carbon black conversion rate 90%

N220 carbon black output (tons) 5,940Rough Carbon Black (tons) 660

Fuel Gas and Steam conversion rate 18%Fuel Gas and Steam (tons) 2970

Steel 7%Steel(Tons) 1,155

DEVELOPMENT PLAN FOR QES DEMO SYSTEMSPECIFICATION:

1.EQUIPMENT SPECIFICATIONS 1.Startup Fuel Gas Consumption: < = 15kg/hr.2.Two stages pyrolysis

3. Water Consumption: 1000 L/hr4.Processing Rate: > =15kg/hr, One batch5. Max Condenser Processing Rate: 100 CMH6.Max Chamber’s Volume of Reactor: about 0.12 m3

7.Max Size of Loading: D= 15~ 20 mm Reactor D=40 mm8.Waste Size <=2cm x 2cm9.Carbon by-product will store in the tank during process. And cooling by nature air after unloading.10.Oil will store in the tank.11. Max Operating Temperature: >= 450C

1.By-product – Fuel oil : The by-products shown in above tables are come from waste tire pyrolysis and for reference only.2.By-product – Carbon black: The by-products shown in above tables are come from waste tire pyrolysis and for

Oil from QES-Demo

Flash Point 25℃ ~ 80℃

Carbon black from QES-Demo

Surface area m2/g > 60, Depends on waste and treatment time

oil content % < 0.1%

2.By-product – Carbon black: The by-products shown in above tables are come from waste tire pyrolysis and for reference only.

A Typical Tire Pyrolysis Facility A Typical Tire Pyrolysis Facility for Illustration purposesfor Illustration purposesfor Illustration purposesfor Illustration purposes

Section A: Preprocessing SystemSection A: Preprocessing SystemStandard Shredding SystemStandard Shredding System

ItemNumber Item 1 Conveyor2 Steel Removal Unit 13 Steel Removal Unit 24 Tire Quartering Machine5 Belt Conveyor 16 Shredder Unit 17 Belt Conveyor 28 Shredder Unit 28 Shredder Unit 29 Magnetic Separator (internal)10 Steel Transport Conveyor11 Shredder Output Conveyor12 Electrical Control System

Section B: Pyrolytic SystemSection B: Pyrolytic System11 CCTV SystemCCTV System 1010 Cooling PipeCooling Pipe22 Lift ConveyorLift Conveyor 1111 Horizontal CondensersHorizontal Condensers33 Feeder hopperFeeder hopper 1212 Fuel Oil Storage TankFuel Oil Storage Tank44 ReactorReactor 1313 Precision FilterPrecision Filter4.14.1 Regulated FeederRegulated Feeder 1414 Pressure Control SystemPressure Control System4.24.2 Regulated Feeder MotorRegulated Feeder Motor 14.114.1 Pressure Control SystemPressure Control System4.34.3 Regulated Feeder Gear BoxRegulated Feeder Gear Box 1515 Gas Storage TankGas Storage Tank4.44.4 Input Air Seal (internal)Input Air Seal (internal) 1616 Vapor Generator & PipingVapor Generator & Piping4.54.5 Reactor MotorReactor Motor 1717 FurnaceFurnace4.64.6 Reactor Motor Gear BoxReactor Motor Gear Box 17.117.1 Furnace Fuel Oil TankFurnace Fuel Oil Tank4.74.7 Reactor Internal HeaterReactor Internal Heater 17.217.2 Furnace BurnerFurnace Burner4 84 8 High Temperature PipingHigh Temperature Piping 1818 Heating Solution Storage TankHeating Solution Storage Tank4 84 8 High Temperature PipingHigh Temperature Piping 1818 Heating Solution Storage TankHeating Solution Storage Tank55 Carbon Black Conveyor (internal)Carbon Black Conveyor (internal) 18.118.1 Heating Solution PipingHeating Solution Piping5.15.1 Output Seal (internal)Output Seal (internal) 1919 HighHigh--temp Pumptemp Pump5 25 2 Carbon Black Conveyor MotorCarbon Black Conveyor Motor 2020 HighHigh--temp Valvetemp Valve5.35.3 Carbon Black Conveyor Carbon Black Conveyor MtrMtr. Gear Box 21. Gear Box 21 Cooling TowerCooling Tower66 Magnetic SeparatorMagnetic Separator 2222 Fuel Oil Storage TankFuel Oil Storage Tank77 Carbon Black ConveyorCarbon Black Conveyor 2323 Control CabinetsControl Cabinets88 Duct PipeDuct Pipe 2424 SuperstructureSuperstructure99 Oil SeparatorOil Separator 24.124.1 Stairs, railingsStairs, railings

Process Flow of our Fully Automated Tire Pyrolysis Process Flow of our Fully Automated Tire Pyrolysis SystemSystem

For simplicity, the above diagram shows the configuration of the For simplicity, the above diagram shows the configuration of the process furnace and only one pyrolytic reactor.process furnace and only one pyrolytic reactor.

TYPES OF WASTE PROCESSEDTYPES OF WASTE PROCESSED

uu Pathological Pathological uu PlasticPlasticuu Tires Tires uu HospitalHospitaluu HomeHomeuu HomeHomeuu ToxicToxicuu IndustrialIndustrialuu Liquid Liquid uu Solids Solids uu Bio MassBio Massuu HydrocarbonsHydrocarbonsuu SludgeSludge

Prior to processing, metals Prior to processing, metals and concrete should be and concrete should be

removed.removed.4646

Conversion Rate for Feed stocksConversion Rate for Feed stocks

APPLICATION Converting Rate

Feed Stock Oil Carbon Product

1. Used Tire Chips 35%~55% 42%, carbon product

2. PE, PP, HDPE 55%~75% < 5%, carbon product

3. PVC < 35% none

4. Oil Sludge 15% ~ 45% < 45%, carbon refined

5. Coal < 22% > 35%, carbon refined5. Coal < 22% > 35%, carbon refined

6. Waste Electronic Components < 35% < 10%, carbon refined

7. Organic Waste (wood/agriculture waste/food waste)

< 20% > 15% carbon black

8. MSW/ Hospital Waste 10%~45% < 30%, fertilizer

9. Organic sludge (like leather industry) < 20% < 15% Fertilizer

10. Animal Waste <25% < 30% fertilizer

11. Plant Essential Oil production <0.2% ~ 5% >15%, Carbon product

12. Remove Hg from soil Removing rate: 99.9%

13. Remove Dioxin from soil Removing rate: 99.98%

14. Remove fromm soil Removing rate: 99.98%

QES2000 PyrolysisQES2000 Pyrolysis--Gasification System. Gasification System.

The solution for disposal of Used Tire Waste, The solution for disposal of Used Tire Waste,

Used Plastics, Municipal Solid Waste, Soil Used Plastics, Municipal Solid Waste, Soil

Remediation, ERemediation, E--Waste, Medical Waste and Biomass.Waste, Medical Waste and Biomass. 4848

ENVIRONMENTAL PROTECTION WITH ENVIRONMENTAL PROTECTION WITH NATURAL RESOURCESNATURAL RESOURCES

uu EachEach 5050 TonsTons ofof usedused tirestires cancan produceproduce upup toto 1717..55 TonsTons ofoflightlight fuelfuel oiloil andand 2020 TonsTons ofof carboncarbon blackblack perper dayday.. FullFulldeploymentdeployment inin thethe USUS couldcould savesave 7575,,000000,,000000 barrelsbarrels ofof oiloilandand anotheranother 1010,,000000,,000000 barrelsbarrels ofof oiloil perper yearyear thatthat isis usedusedforfor thethe productionproduction ofof carboncarbon blackblackforfor thethe productionproduction ofof carboncarbon blackblack

uu EachEach 5050 TonsTons ofof usedused plasticplastic cancan produceproduce upup toto 3535 TonsTons ofoflightlight fuelfuel andand 11 TonTon ofof biocharbiochar perper dayday.. FullFull deploymentdeploymentinin thethe USUS couldcould savesave 150150,,000000,,000000 barrelsbarrels ofof oiloil perper yearyear..

4949

BENEFITS OF QES 2000 SYSTEMBENEFITS OF QES 2000 SYSTEM

uu QESQES20002000 wastewaste conversionconversion plantsplants convertconvertUsedUsed TireTire WasteWaste intointo qualityquality byby productsproducts2424 hourshours aa day,day, 77 daysdays aa weekweek andand cancansupplysupply marketablemarketable byby--productsproducts thatthat cancan

5050

supplysupply marketablemarketable byby--productsproducts thatthat cancansupplementsupplement thethe locallocal communitycommunity needs,needs,asas wellwell maymay alsoalso bebe soldsold earningearning incomeincome..

uu TheThe QESQES technologytechnology efficientlyefficiently eliminateseliminatesthethe majoritymajority ofof UsedUsed TireTire Waste,Waste, withoutwithoutproducingproducing foulfoul odors,odors, noisenoise oror toxictoxicemissionsemissions..

BENEFITS OF QES2000 USED TIRE BENEFITS OF QES2000 USED TIRE WASTE CONVERSION TECHNOLOGY WASTE CONVERSION TECHNOLOGY

ThisThis uniqueunique technologytechnologyofof convertingconverting UsedUsed TireTireWasteWaste intointo marketablemarketablebyby productsproducts succeedssucceeds inincapturingcapturing carboncarbon andand

5151

capturingcapturing carboncarbon andandgeneratinggenerating aa cleancleansourcesource ofof alternativealternativefuelsfuels withoutwithout thethe useuse ofoffossilfossil fuelsfuels andand theirtheirattendantattendant undesirableundesirablesideside effectseffects..

uu NonNon--combustible waste.combustible waste.uu No measurable air pollution.No measurable air pollution.uu Operation noise lower than 80 decibelsOperation noise lower than 80 decibelsuu No measurable secondary pollution.No measurable secondary pollution.

QES2000QES2000Environmental ImpactEnvironmental Impact

5252

uu No measurable secondary pollution.No measurable secondary pollution.uu No measurable dioxin.No measurable dioxin.uu No burning and no landfill requirements.No burning and no landfill requirements.uu Lower environmental impact than any other reLower environmental impact than any other re--cycling method.cycling method.

QES2000 QES2000 Air pollution processAir pollution process

Used TireInlet

GasTecGasTecGas

Cleaning99%

Combustion1200C

De-Dioxin

PyrolysisProcess60%

10 times Air

5353

Inlet 99%99% De-Dioxin60%

Central Gas Cleaner

90%

Solid By-Products

Total Removal rate99.96%

Used Tire Waste Plant ProcessUsed Tire Waste Plant Process

5454

LABOR PROJECTION FOR 50 TON / DAY LABOR PROJECTION FOR 50 TON / DAY USED TIRE CONVERSION PLANTUSED TIRE CONVERSION PLANT

Manpower (3 shifts)Manpower (3 shifts)uu Plant Manager:Plant Manager: 11uu SupervisorSupervisor:: 33uu QES OperatorQES Operator:: 33uu QES OperatorQES Operator:: 33uu Feeding Machine OperatorFeeding Machine Operator:: 33uu Unloading Machine OperatorUnloading Machine Operator:: 33uu Waste Separator OperatorWaste Separator Operator:: 3 3 uu Maintenance EngineerMaintenance Engineer:: 3 3 uu Admin AssistantsAdmin Assistants:: 33

5555

TECHNOLOGICAL FEATURES TECHNOLOGICAL FEATURES INCLUDEINCLUDE

uu Two stage process in one system.Two stage process in one system.uu Fully integrated systemFully integrated systemuu ModulModularar design facilitates easy installation and mass production.design facilitates easy installation and mass production.uu Combination of thermal cracking and steam cracking in one system.Combination of thermal cracking and steam cracking in one system.uu Steam heat and radial heat applies in the pyrolysis process.Steam heat and radial heat applies in the pyrolysis process.uu BuiltBuilt--in safetyin safety..

5656

uu BuiltBuilt--in safetyin safety..uu High quality byHigh quality by--products.products.uu Continuous loading systemContinuous loading systemuu MultiMulti--purpose system which handles a purpose system which handles a

wide variety of organic wastes. wide variety of organic wastes. uu Lower capital requirements than competitive Lower capital requirements than competitive

systemssystemsuu Above normal rate of return on investmentAbove normal rate of return on investmentuu Patented: Taiwan, USAPatented: Taiwan, USAuu Patent pending: China Patent pending: China

INNOVATIVE IMPROVEMENTS TO A INNOVATIVE IMPROVEMENTS TO A HISTORICAL TECHOLOGYHISTORICAL TECHOLOGY

QES2000 TECHNOLOGYQES2000 TECHNOLOGY

TheThe individualindividual stagesstages andand subsub--processesprocesses thatthat makemake upup thethe QESQES20002000PyrolysisPyrolysis processprocess havehave beenbeen inin useuse forfor manymany years,years, butbut theythey havehave beenbeen

5757

uniquelyuniquely alteredaltered toto performperform andand interact,interact, creatingcreating thethe uniqueunique QESQES20002000PyrolysisPyrolysis SystemSystem.. ThisThis isis anan entirelyentirely innovativeinnovative processprocess thatthat hashas rere--arrangedarranged technologytechnology inin aa new,new, improvedimproved andand differentdifferent wayway..

TheThe skillskill setset neededneeded toto produceproduce thethe equipmentequipment isis basicbasic engineeringengineering.. ThisThisholdsholds truetrue forfor thethe operationoperation andand maintenancemaintenance ofof thethe plantplant..

PRO FORMA FOR USED TIRES ASIAPRO FORMA FOR USED TIRES ASIA

Annual output(tons)

Unit price(ton) Annual RevenueUSD

Used Tire Chips and Rubber 16,500

Light Fuel Oil 5,775 550 3,176,250

Carbon black output after processing to N220 standard (depending on waste)

5940 800 4,752,000

Rough Carbon Black (sold as fertilizer) 660 200 132,000

Steel 1155 200 231,000

INVESTMENT PAYBACK:

5858

Steel 1155 200 231,000

Total revenue $8,291,250$88$8,058,224

Revenues Total revenue $8,291,250

Total operation cost $591,013

Machinery depreciation

Net profit before tax $7,700,237

Machinery investment $13,500,000

Payback period (month) <2years

The BusiThe Businness Opportunityess OpportunityQES2000 Used Tire Plant Cost: JV US$13.0 QES2000 Used Tire Plant Cost: JV US$13.0 Million depending upon feedstockMillion depending upon feedstock

uu Used Tire Plant 50T/day projected Used Tire Plant 50T/day projected revenue: revenue: US$8US$8--10 Million10 Million

5959

US$8US$8--10 Million10 Millionuu Waste Plastic Plant 50T/day projected Waste Plastic Plant 50T/day projected revenue: revenue: US$ 6US$ 6--7 Million7 Million

Return on Investment less than 2 yearsReturn on Investment less than 2 yearsDepending on volume & feed stock processed in this Depending on volume & feed stock processed in this period.period.

QUADRA PROJECTS INC.

AsAs aa turnturn keykey CorporationCorporation forfor renewablerenewableenergy,energy, QuadraQuadra isis committedcommitted toto CustomerCustomerSatisfactionSatisfaction andand LongLong--termterm RelationshipsRelationshipswhilewhile protectingprotecting thethe EnvironmentEnvironment andand

6060

SatisfactionSatisfaction andand LongLong--termterm RelationshipsRelationshipswhilewhile protectingprotecting thethe EnvironmentEnvironment andandcontributingcontributing toto aa CleanerCleaner andand SaferSafer WorldWorld..OurOur missionmission reflectsreflects thisthis commitmentcommitment andandwe'rewe're veryvery pleasedpleased thatthat youyou tooktook thetheopportunityopportunity toto inviteinvite usus toto assistassist youyou inin thisthiscommoncommon goalgoal..

CONTACT INFORMATIONCONTACT INFORMATION

6161

Quadra Energy Systems Inc.Quadra Energy Systems Inc.