PowerPoint Presentation

Innovation in Power Supply

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ContentsMercury Overview Management Team Product Performance Partners Current Sales & New Opportunities

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Company BackgroundInnovative

Adaptable to System Requirements New line Construction and System Modernization IncreasingEfficienciesReducingenvironmental Impact3

About Us - SummaryAmerican OwnedHead Office in USA with additional operations in Europe and AsiaHVCRC Core Produced in USA and FranceExpanding Production Facility in France5000 Kilometer Annual Production Capacity Expandable to 10,000 in 120 days More than 24 patents awarded worldwide Supported by Leading Wire And Cable Partners, Best-In-Class High Temp Low Sag Accessories and Well Respected Construction and Engineering Partners 4

Recent DevelopmentsCompleted installation of HVCRC Conductor and accessories for projects in Korea, Kazakhstan and Mexico

Taking Follow On Orders in Korea and Mexico

Received Significant Orders from South Africa, India and Indonesia

Expansion of European Production Facilities

HVCRC Patents Awarded in U.S., Korea, Japan, Mexico, Brazil and China. Patents Pending in Many Other CountriesEntering Multiple New Markets

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Management TeamRon is responsible for the strategic direction and worldwide operations of Mercury Cable & Energy. He has more than 25 years of experience leading global organizations, with specialties in mergers and acquisitions, technology transfers, and a variety of complex international ventures. Most recently, he was a top executive and Senior International Counsel for Homestore.com, where he directed and managed the acquisition, integration, and operation of Internet, software, and technology-related companies in Asia, Europe, and South America.

Earlier in his career, Ron worked at KPMG in the areas of finance and international and domestic tax planning. He has extensive experience in structuring international transactions, business structures, complex joint venture and technology licensing agreements. During his tenure at KPMG, he successfully negotiated with prominent Chinese companies and institutions. Ron holds a J.D. from the University of the Pacific, a LL.M from Boston University, and a B.S. in business administration and a B.S. in biological sciences from the University of Redlands.

Ronald Morris - Chief Executive Officer6

Management TeamTodd is currently responsible for the financial operations, sales, marketing and strategic plans of Mercury Cable & Energy. His duties include capital raising, implementing the sales & marketing plan and developing and managing the strategic partnerships for the company. Since founding the company, Todd raised venture funding, aligned strategic partnerships with major transmission sector firms and recruited the executive team in conjunction with Ron Morris.

Prior to Mercury Cable & Energy, Todd worked in banking and securities, with a focus on global industries including manufacturing, real estate, energy, technology, media and entertainment. He has over fifteen years experience in corporate finance, structured finance, debt and equity raising and financial advisory services. He provided investment banking and advisory services for leading firms including Merrill Lynch, AXA, CNB Capital and SC Capital Partners.

During his career, Todd developed several relationships with key executives in the transmission and industry, including Southern California Edison, Dow Chemical, 3M, San Diego Gas & Electric, General Cable, LS Cable, Nexans, CFE (Mexico), and American Electric Power. Todd Harris - President7

Management TeamDales role is to oversee the management and coordination of all fiscal reporting activities for the organization including: organizational revenue/expense and balance sheet reports, development and monitoring of organizational and contract budgets.

Oversee all purchasing and payroll activity for staff and participants. Develop and maintain systems of internal controls to safeguard financial assets of the organization .

Oversee the coordination and preparation of the annual financial statements is in accordance with U.S. GAAP and federal, state and other required supplementary schedules and information.

Attend Board and Subcommittee meetings; including being the lead staff on the Audit/Finance Committee.

Monitor banking activities of the organization.

Ensure adequate cash flow to meet the organization's needs.

Dale Howe CPA-Chief Financial Officer (pending)8

Management TeamCotton has approximately 20 years of experience as a trusted advisor, project manager, and team contributor for leading Chinese and Multi-national companies. His expertise includes: development of corporate policy and strategy, business development, contract negotiation, operations management, reliability assessments, capital planning, technical and economic analyses, review and oversight of books and records compiled to international accounting standards and asset based transaction analysis. Mr. Xi is extremely well connected in the electric transmission industry, including extensive relationships with China State Grid, China Southern Grid, Bao Steel and many others. Xi Ya Wei (Cotton Hill)Director of China Operations9

Technical Executive StaffAs Chief Operating Officer, Terry is responsible for managing the engineering and manufacturing of Mercury Cable & Energy composite products, including the HVCRC core. He oversees the design, specification, construction and start-up of the companys manufacturing processes. With more than 40 years of experience in the composites industry, he has developed many commercial composite products including non-ceramic insulator cores for the utility industry and has a registered patent in High Speed Pultrusion Polyester Resins and Process.

Terry served as Chairman of the Pultrusion Industry Council and Chairman of the Composites Institute of the Society of the Plastics Industry. Terry has received the Pultrusion Industry Council Award of Excellence, the Claire E. Bacon Composites Institute Man of the Year Award, the Composites Fabricators Distinguished Leadership Award and is a member of the American Composites Manufacturing Association Hall of Fame.

Terry has published 15 articles in distinguished publications and holds a B.A. from the University of Oregon and a M.A. in Industrial Technology from San Jose State University.

Terry S. McQuarrie - Chief Operating Officer10

Technical Executive StaffWaymon has over 49 years of experience in the design, application, and testing of high voltage insulators, insulation systems, fiberglass composites, polymer materials, surge protection, apparatus bushings, cable terminations, fiber optics, hardware and connectors for electrical transmission, distribution, and substations.

Waymon P. Goch - Chief Technology Officer Fred Decker - GM Production (pending) Fred has over 23 years experience in the manufacture of fiber reinforced composites using the pultrusion process. During his career Fred has developed multiple product lines and while qualifying and maintaining ISO certification.

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Mercury's History of Technical Excellence HVCRC = 50+ years of innovation history All of our technical staff trace their lineage to W. Brandt Goldsworthy the founding father of the composites industry

Mercury's technical team has a combined 90 years of composite technical experience

Along with Mr. Goldsworthy, they made solid contributions to the U.S. aerospace and power industries

12Why HVCRC Smart Conductor?Technical superiority over traditional conductorIncrease transmission efficiency by 20 25 % (reduce line loss)Decreased carbon emission release into the environment

Physical superiority Mitigate thermal sag/increased line capacity Carbon composite rod is both non-conductive and has a high tolerance to heat, which significantly improves the over-all system efficiency as well as mitigate the thermal sag shortcoming of the traditional conductor The result is a smaller land and infrastructure footprint

Financial Benefits25 35 % reduced line loss lowers costs in power generationSignificant project savings due to its much smaller physical footprint

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Product comparison, contdA comparison of the performance and characteristics of 1020 kcmil Drake HVCRC/TW and 795 kcmil 26/7 (Drake) ACSR

33% line loss savings at 1265 amps, which is 100C for HVCRC and 138C for ACSR

14Test results American Electric PowerSummary

AEP is an early adopter of composite conductor technology

It developed a testing protocol to evaluate new conductor designs by simulating accelerated aging process occurring during the life cycle of an overhead conductor

Mercurys HVCRC is the only composite conductor to pass this test equal to or greater than their published specification

Other conductors (including ACCC) ratings were decreased up to 20%

These results conclusively show Mercurys manufacturing excellence and superior performance characteristics

15Test results NEETRAC, Kinetrics and SECRI Cable Research InstituteMercurys HVCRC is the strongest under any temperature Conductor tensile strength

The highest results recorded at SECRI

HSVCCACCRACCCHVCRCRoom temp.120 kN138 kN182 kN194 kN150 C168 kN -171 kN185 kN180 C - - -172 kN

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HVCRC Smart Conductor StrongestLightestMost Efficient..... Transmission Conductor in the World.17

HVCRC Smart Conductor Through more than 10 years of research and development by industry-leading engineers and scientists, Mercury Cable developed a way to greatly improve transmission capacity through a patented composite core for use in transmission conductors.10 years18

HVCRC Smart Conductor With its innovative design, HVCRC replaces the steel core strength component of a traditional aluminum conductor steel reinforced (ACSR) transmission line, with a non- metallic composite core. This enhanced product allows for increased transmission capacity of up to 2 times that of traditional lines, while lowering line losses, limiting sag and requiring less infrastructure costs to deliver more.2 times19

HVCRC Advantages1 Reduced Sag2 3 4 5 Lower Resistance & Greater Ampacity DurabilityTensile and FlexuralStrengthCost Efficiency20

HVCRC Advantages1 Reduced SagHVCRC experiences less sag than the traditional ACSR distribution lines due to its lighter weight and higher temperature tolerance. HVCRC is tolerant up to 150 degrees Celsius continuous use, reducing heat-induced sag in periods of peak demand. Reducing sag is a key factor in increasing ampacity during the trans-mission process.21

HVCRC Advantages2 Lower Resistance & Greater Ampacity Engineered from non-metallic materials, HVCRC does not suffer from inductive interference like ACSR and ACSS. This reduced interference lowers line losses, significantly leading to more electricity delivered or lower power generation needed. By using pre-annealed trapezoidal shaped aluminum strands, HVCRC conductors have 28 percent more aluminum in comparable sized conductors, allowing for significantly more ampacity to be delivered in the same transmission corridor or on a per line basis.

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HVCRC Advantages3 Durability Engineered from non-metallic materials, HVCRC is not affected by corrosion, a typical problem with conventional transmission cables. Salt, air pollution and galvanic corrosion from metal on metal contact all play a role in weakening traditional steel cores over time. Our world class production team has consistently produced results that dwarf our competitors and set new standards for quality.

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HVCRC Advantages4 Tensile & Flexural Strength Unlike some composite conductors, the composite core of a HVCRC line is not brittle or fragile. Consequently, they can be wound around standard reels (with appropriate bend radius) and handled by workers and linesmen without the need to employ special handling procedures for installation and can be pulled to the appropriate tension with a standard pulley system. Based on published results, HVCRC is the strongest conductor available in the market.

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HVCRC Advantages5 Cost Efficiency HVCRC exhibits less sag, so they can cover much greater spans than other cables pulled to the same tension. As a result, fewer poles and towers are required in the design of HVCRC lines, which along with lower line losses, reduces costs for both distribution companies and consumers.

25The Evolution Of Composite Core ConductorsU.S. DOECRACCTC Corp. ACCC3M Corp. ACCR HVCRC High Voltage Composite Reinforced Conductor

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Uses of HVCRCInstalling HVCRC can double transmission capacity over ACSRNew transmission lines: due to HVCRCs greater strength to weight ratio and reduced sag compared with traditional conductor, fewer or lower towers neededFewer towers mean considerable savings when erecting new lines saving up to100 million dollars in reduced tower expenditure over a 1000 km line*Construction time greatly reduced enabling contractors to meet completion dateHVCRC reduces line loss by up to 35%. This allows utility companies to increase profitability due to reduced line loss*Detailed breakdown available on request27

Our Worldwide Partners28

Current International DevelopmentMercury products are being deployed or under consideration in the following countries: 1Asia & Pacific Rim

ChinaRepublic of Korea Japan (initial stages)IndonesiaIndiaAustraliaNew Zealand29

Current International DevelopmentMercury products are being deployed or under considerationin the following countries: 2Americas

USACanadaMexico (4 lines in service)GuatemalaChileBrazilCosta Rica30

Current International DevelopmentMercury products are being deployed or under consideration in the following countries: 3Europe

France (initial stages)United Kingdom (Initial)PolandKazakhstan(99.6 km installed)UkraineBelarus31

Key Market -IndiaDelivered our second order from Gupta Power in India for 89 kilometers Casablanca HVCRC ConductorInstall scheduled for January 32

Key Market -IndonesiaReceived our initial order from Citra Cable in South Africa for 124 kilometers Casablanca HVCRC Conductor to be followed by a 500 kilometer transmission project

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Key Market -South AfricaReceived our initial order from Edison Power in South Africa for 150 kilometers Lisbon HVCRC Conductor as part of a 600 kilometer transmission project34

Key Market -Mexico4 HVCRC lines in service in MexicoParticipating on several additional projects

35For More Information, Contact

Todd HarrisPresident, Mercury Cable & Energy

Email: tharris@mercurycable.comPhone: (949) 276-5375Mobile: (949) 981-386036Sheet1Temperatureac ResistanceCurrentIR Power Loss/phaseC(ohms/kftAmpskW per mileDrake ACSR750.0265732751000.0291992151.71250.03181182234.81500.03451335324.9Drake HVCRC/TW750.020610251141000.022312651881250.023914502661500.02561606349.2TemperatureAC ResistanceCurrentIR Power Loss/phaseCencius(ohms/kftAmpskW per mileDrake ACSR750.0265732751000.0291992151.7125303181182234.81500.03451335324.9Drake HVCRC/TW750.020610251141000.022312651881250.023914502661500.02561606349.2

Sheet2

Sheet3

Chart119418216813418517112017200

HVCRCACCCHSVCCACCR

Sheet1HVCRC194185172ACCC1821710HSVCC1681200ACCR134