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THE CONFIDENTIALITY NOTE:

The information contained in this Project Summary is the property of SPC GRUS

Ltd and is commercially valuable, to be kept confidential.

Introduction to the Project.

SPC GRUS Ltd was founded in 1994 to perform the complex project of

engineering works, such as development, design and maintenance of technical

equipment used in the manufacturing process of solid materials: silicon oxide,

aluminum oxide, iron oxide, titanium oxide, zirconium oxide, etc. with melting

temperatures from 1500 to 3000 degrees Celsius.

From 1994 to 1999 the work undertaken at the request of Dynelec USA.

Experts from GRUS participated in the design and construction works, equipment

tests, experiments and analysis.

In 1999 Dynelec received a Patent (US 5,964,913, A, 12.10.1999) to produce the

above mentioned monolithic materials, the authors of this patent are Russian

Citizens working in GRUS.

In 2004, experts from GRUS received a Patent (RU № 2224725, 27/02/2004)

which was an alternative to American method.

Thus, Russian scientists had developed A High-temperature Technology also

known as "technology of Titov N.F." or "technology three in one", the

decomposition of substance into its constituent elements with the use of a

stabilized gas discharge with high energy efficiency.

Mission.

Our mission is to set up, develop and use the new A High-temperature Technology

in the UAE.

Products of technology.

A High-temperature Technology creates two products as result:

a chemical compound (such as silicon oxide, Si n O 2n +3) - a newly implemented

structural material and metal like Na (type K, Ca, Li, Be, Mg, etc.) with a high

degree of purity due to the almost complete separation of the original substance

into its constituent elements.

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The entire process takes place in the thermally insulated volume with minor

losses.

The cost of the initializing energy is ten times less than the existing technologies of

pure metal production.

The main raw material in this technology is the sodium silicate and similar glass

forming mixtures.

These substances are the main ingredients of the earth's crust, and among them the

most widely found are silicon oxide, aluminum oxide and iron oxide, and if we add

to this that the mass fraction of oxygen bound in minerals that are composed of

silicon, aluminum and iron, about 30% (earth's crust bound oxygen total is 47%),

then only the mass of these four elements, these three types of mineral compounds,

including the percentage of other elements that make up about 71% of the earth's

crust.

For example, carbon, which could be found plants, coal, peat, oil shale, the

compounds of oil, combustible gas, which at first glance, is a very large stock, and

that in this case is insignificant to the earth's crust (only 0.1% by weight).

The complex process largely coincides with the production of technical glass and

is fairly easy to implement on an industrial scale. Its uniqueness lies in the fact that

the production of new construction and other materials from cheap raw materials is

accompanied by the production of highly pure metals, as well as thermal and

electrical energy, which is sufficient to sustain its own production.

Strategic Industry.

This technology allows us to create a number of manufactures in the following

areas:

1. Electrochemical column for the production of electricity, high purity

metals and new materials (1.5 MW-25MW) 100 – 150 pieces. Products in the first

stage: - Electricity -3.6 million kWh up to 60 million kWh per day, the total power

of these columns is 150 - 2500 MW, especially pure alkali metals - sodium,

lithium, potassium, magnesium, etc. - up to 40 kg / day , a new silicate materials

are non-stoichiometric composition up to 500 kg / day.

2. Production of sources of electric current for computers (laptop, mobile

phones, watches, etc.), passenger motor vehicles, batteries, or batteries (from 3 to

more than 10 kW), sources of electric current for the dump trucks (capacity of an

engine 1.5 - 3 MW), as well as for rail transport (power 10-15 MW).

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3. Production of solar cells with conversion efficiency of more than 50% (in

the world today this ratio is between 17 and 20%). Their charging time would be

20 hours a day, including night time as well.

4. Release of nanomaterials for armor (bullet proof vests for the infantry,

armor for tanks and infantry fighting vehicles) whose tensile strength would

exceed any in use today, by at least 5 times.

5. Production of laser resonators

6. Production of metals of high purity for applications in medicine (blood

substitute and a variety of medications, the second and third re-division structure),

in nuclear reactors on fast neutrons, household and food chemistry, and perfumes.

7. Production of materials for rocket spacecraft (withstanding heat over 3500

° C), and aircraft. The outer and inner lining (in the cabin at 1000 ° C, covering the

water release).

8. Production of diodes, resistors, circuit boards for computer chips, optical

fibers for communication (ø 3 mm or more) materials with the desired magnetic

and electric properties for electric engines etc.

9. Production of clean food and other packaging (rather than any kind of

plastic and other packaging), a film for greenhouses that allows ultraviolet light

and air through, bank securities, advertising stickers, paper money, and any bottle

packaging (the strength of the above items is 5-10 times higher than any in use

today).

10. Pipes for oil, gas, water and sewers diameters could range from 1/2 cm to

3 m, the strength is 5-10 times higher.

Capital investments.

This Project is a complex development that requires Capital investments on

following stages:

First Stage of the Project:

Setting up a plant to produce columns for the electrochemical production of

electricity, high purity metals and new materials.

(Power of 1.5 MW-25 MW), from 100 to 150 columns per year.

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The cost of this project is $46 million; quarterly investment allocation is attached

(Appendix 1).

Construction period is 26 - 28 months. The plant will include a laboratory, and 15

to 18 electrochemical columns will be produced. The plant capacity is from 100 to

150 columns per year. And by the end of the third year of the commencement of

construction output will be:

- Electricity - 3.6 million kWh up to 60 million kWh per day, the total power of

electrochemical columns 150 - 2500 MW;

- Highly pure alkali metals - sodium, lithium, potassium, magnesium, etc. - up to

40 kg / day (projected cost of production of sodium metal of high purity is from

$10 - 20, which will have a market price of $3000 - 5000);

- New non-stoichiometric silicate materials - up to 500 kg / day.

(Planned cost by $10 - 20, the planned sale price $30);

According to conservative estimates payback of the proposed project will not

exceed 2 years from the date of commencement of production.

Second Stage of the Project:

Setting up a plant to produce batteries and battery cells, which generate electricity

with a capacity of 3 to 10 kW per battery, based on the technology of the new

substance, "a source of EDF (electromagnetic driving force)," with unparalleled

system of charging.

Both projects: the construction of the battery plant and construction the plant for

the production of electrochemical columns will be operated at the same time in the

following sequence:

a) Pre-project stage will commence by the end of the first year of construction of

the plant for the production of electrochemical columns.

b) The design stage and the necessary applied research will be launched by the end

of the second year of construction of the plant for the production of

electrochemical columns. By this time, a scientific and engineering team will be

established, laboratories set up and partners selected to develop and manufacture

batteries and battery cells.

c) Making available an experimental batch of battery cells by the end of the third

year after commencement.

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d) The mass production of battery cells will be launched at the end of the fourth

year after commencement.

Developing a business plan will start at the pre-project stage and will take from 6

to 12 months.

The parameters of the business plan may be obtained upon the completion of pre-

conceptual design stage and the tentative projects of the laboratory and the battery

plant.

The actual cost of the pre-stage, conceptual design and business plan will be

determined before the start of these works.

The construction of a plant to produce batteries and battery cells, which

generates electricity with a capacity of 3 to 10 kW per battery is estimated to cost

from $80 million to $120 million.

New Product overview.

New batteries do not require acid; materials which are in short supply (lead, nickel,

cadmium, etc.) and have the following qualities:

1. The ability to save 5 to 30 times more energy than conventional lead-acid

batteries of the same size.

2. Have unlimited charge cycles.

3. Poses no danger to the environment.

4. Much cheaper to produce.

5. Little or no demand for maintenance.

6. Light weight, much lighter than traditional lead-acid batteries of the same

capacity.

7. Expand the existing use of batteries as a unit for storage and energy

management, as well as create many new opportunities as a result of the

advantages offered by the new technology.

8. It does not wear the mechanism or chemical erode.

9. Works effectively at different temperatures.

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Industry Leads.

Freedonia Group (USA) estimates the global market sales of batteries is in the

region of $50 billion.

Many experts in the field of batteries believe that the use of batteries in a fast-

paced world of electronics is still in its early stages.

As their use in markets such as the UPS / CPS (backup system), wireless

telecommunications, medical equipment, industrial equipment, power generation,

and of course the market of electric vehicles, the demand for more reliable,

productive and inexpensive batteries will increase.

Copyright 2001. SPC GRUS Ltd

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whatsoever without the written permission from SPC GRUS Ltd. Any breach of this agreement will be considered a direct violation of copyright

laws and will be strictly enforced.

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