Protecting the planetby splitting a moleculeBlackstone Green Energy, Inc. 2017 Business Plan - Summary

BLACKSTONEG R E E N E N E R GY, I N C .

Page | 1

Protecting the planet by splitting a molecule Executive Summary

The project Blackstone Green Energy, Inc. (“Company”) has developed a patent-pending technology1 (“Blackstone Method”) for converting raw zinc ore into hydrogen fuel. While the science underlying the technology is well established, we believe the Blackstone Method is a disruptive technology that offers four unique competitive advantages:

1. Unlike conventional hydrogen production methods (such as steam reformation) that dump noxious gases into the atmosphere, the Blackstone Method creates strictly green hydrogen. It requires no fossil fuels and it operates closed-circuit without any harmful emissions.

2. The only raw material needed for the Blackstone Method is a continuous supply of zinc ore, which the Company obtains from its federally patented zinc mine in southwest Idaho (“Blackstone Mine”).2

3. The Blackstone Method can create hydrogen at the point of use, eliminating transportation costs and the need for expensive infrastructure buildouts, both of which have been major impediments to development of the hydrogen economy.

4. As a byproduct of the process, the Blackstone Method also yields a commercially valuable polymetallic matte from the ore, predominantly copper, lead, silver, gold, and manganese.

Each one of these advantages is discussed in greater detail below. The Company seeks to raise US$10,000,000 to build and install a pilot hydrogen-production facility at the Blackstone Mine to commence deployment of the Blackstone Method. Advantage 1: 100% green hydrogen Hydrogen is the simplest and most abundant element on earth, making up roughly three-quarters of the mass of the universe.3 As a fuel, hydrogen is nearly three times more efficient than fossil fuels and, unlike fossil fuels, its only “emissions” are oxygen, heat, and potable water.

1 Method for Producing Zinc Oxide, Zinc Powder, Hydrogen Fuel, and Potable Water from Zinc Ore. United States Patent and Trademark

Office file no. 62602684 050317. 2 The Blackstone Mine is owned in fee simple title by the Company’s parent organization, Blackstone Mining Company, Ltd. The 100-acre

complex consists of five patented mining claims in sections 13, 14, and 15, T.2 S., R.10 E., Boise Meridian, approximately 80 miles southeast of Boise, Idaho.

3 Los Alamos National Laboratory, http://periodic.lanl.gov/1.shtml.

Page | 2

Despite its abundance, hydrogen rarely exists by itself in nature; there are no known “hydrogen deposits” per se. Before hydrogen can be used, it must be separated from the compounds that contain it: typically water, hydrocarbons, or biomass.4 Although hydrogen itself is clean, most of the traditional methods of producing it are not. The bulk of hydrogen is produced through a process known as steam reformation, in which natural gas is heated to around 1000°C (1832°F) along with a metal catalyst (usually nickel).5 The reaction breaks up and releases hydrogen from the natural gas molecules, which is then collected and liquefied. The problem is that a single ton of hydrogen produced this way also produces 10 or more tons of carbon dioxide, carbon monoxide, and other noxious pollutants.6 In fact, hydrogen produced by this and other fossil fuel methods is often referred to as “brown hydrogen.”7 In contrast, the Company uses the Blackstone Method, which creates only “green hydrogen.” Instead of burning fossil fuels, the Blackstone Method uses zinc hydrolysis, in which hydrogen- and solar-powered ovens are used to heat zinc ore and break it down into zinc powder and zinc oxide. When zinc powder is mixed with heated water (from renewable heat sources), the reaction produces hydrogen, but no greenhouse gases. The Blackstone Method is unique in that it is self-sustaining: some of the hydrogen can be used to continue powering the ovens; the rest can be sold at market. As long as there is a supply of zinc, which the Company obtains from its Blackstone Mine, the manufacturing process can continue.

4 U.S. Energy Information Administration. https://www.eia.gov/energyexplained/index.cfm?page=hydrogen_production 5 U.S. Department of Energy, Hydrogen production: Natural gas reforming. https://energy.gov/eere/fuelcells/hydrogen-production-

natural-gas-reforming 6Guido Collodi (2010), “Hydrogen production via steam reforming with CO2 capture.” Fourth International Conference on Safety and

Environment in the Process Industry. http://www.aidic.it/CISAP4/webpapers/7Collodi.pdf. 7 Tim Young (2014), “Hydrogen fuel cells for cars and more,” http://www.altenergymag.com/article/2014/12/hydrogen-fuel-cells-for-cars-

and-more/1539/.

Conventional steam reformation plant

Page | 3

The Company believes its ability to produce green hydrogen will provide a competitive advantage in the near future as state legislatures promulgate environmental standards for hydrogen production. California has taken the lead in this regard with the passage of a law8 that requires at least 33 percent of hydrogen produced in California for transportation be produced from renewable resources. Six of the 39 hydrogen filling stations in California already deliver all of their hydrogen fuel from renewable sources.9 Advantage 2: Continuous supply of zinc ore The Company’s parent corporation, Blackstone Mining Company, Ltd. is the owner in fee simple title of the Blackstone Mine (“Property”), one of the oldest and largest properties in Idaho’s Volcano Mining District.10 The Property consists of five claims (100 acres) that were patented11 in the early 1900s by former Idaho Governor James H. Hawley and his partner, Judge Joseph Rich, who formed the Company’s parent corporation in 1899. The known12 ore bodies at the Property consist of 765,500 tons of proven and 3.186 million tons of probable zinc-rich reserves.13 Of the proven reserves, the Property contains:

• 30,000 tons of high-grade ore with an average zinc content of 8.5% have been stockpiled and can be accessed with no additional excavation;

• 35,500 tons of high-grade ore with an average zinc content of 8.5% are near surface and can be accessed with minimal excavation;

• 700,000 tons of leach-grade ore with an average zinc content of 0.5% are near surface and can be accessed with minimal excavation.

This translates into more than 5,500 tons of identified, proven, and readily recoverable zinc from the high-grade ore alone. The 700,000 tons of proven leach-grade ore will likely require a modified processing technique to recover the values, but could provide up to 3,500 additional tons of zinc. Of the probable reserves, the Property is believed to contain:

• 186,000 tons of high-grade ore with an average zinc content of 8.5%; • 3,000,000 tons of leach-grade ore with an average zinc content of 0.5%.

While probable reserves have been excluded from calculation,14 these ore bodies could provide as much as 30,810 additional tons of recoverable zinc.

8 CAL. HEALTH & SAFETY CODE §43869 (commonly referred to as Senate Bill 1505). https://www.arb.ca.gov/msprog/hydprod/hydprod_fs.pdf. 9 Union of Concerned Scientists (2014), “Hydrogen stations will bring more clean electric vehicles to the state.”

http://blog.ucsusa.org/dave-reichmuth/california-hydrogen-fuel-cell-station-513. 10 Robert N. Bell, M.E. (1930), “Another Butte in Southern Idaho?” Northwest Mining Truth. http://www.blackstonemine.com/BellAll.pdf. 11 A patented mining claim is one in which the federal government has passed title to the claimant, making the claimant the owner of the

surface and mineral rights. The five patented claims are designated as the Kentucky, Ohio, Iowa, Illinois, and Oregon Lode Mining Claims (Mineral Survey No. 1662), more particularly described in Book 15 of Patents at page 407, et seq., in the Office of the County Recorder, Elmore County, Idaho.

12 Known ore bodies are based on mineral reserves that have been identified through approximately 7,600 feet of reverse-circulation and diamond-core drilling. Less than X% of the entire property has been explored to date.

13 Richard E. Kucera, Ph.D. and Andrew Egan, B.Sc. (2015), Certification of Proven Ore Reserve Values: Blackstone Mine Project, Elmore County, Idaho. http://www.blackstonemine.com/Revaluation.pdf. A “proven” mineral reserve implies a high degree of confidence in factors that demonstrate, at the time of reporting, that economic extraction is justified. A “probable” mineral reserve implies a lower degree of confidence than a proven mineral reserve. Both reserve types are based on supporting studies that include adequate information on mining, processing, metallurgical, economic, and other factors. http://web.cim.org/UserFiles/File/CIM_DEFINITON_STANDARDS_Nov_2010.pdf.

14 Probable reserves excluded from analysis per recommendations of United States Securities and Exchange Commission, “Description of property by issuers engaged or to be engaged in significant mining operations,” SEC Industry Guide 7. https://www.sec.gov/files/industryguides.pdf.

Page | 4

Advantage 3. Creating hydrogen at the point of use The Blackstone Process can be deployed directly on site or at the point of distribution rather than requiring extensive infrastructure buildouts or expensive transportation. The Company believes this will prove to be a significant advantage inasmuch as most centrally produced hydrogen is delivered to customer sites by tube trailer or liquid tanker truck, which government sources indicate adds approximately $1.25 per kilogram to production costs.15 Historically, the cost of manufacturing hydrogen fuel has been higher than the cost of the energy used to make it. This is the dilemma of the hydrogen economy, and one that the Company seeks to address. NASA is currently the single largest user of hydrogen fuel, but that situation is likely to change as fuel cells become more commonplace in automobiles.16 Other major markets for hydrogen include petroleum refineries (hydrocracking), ammonia manufacturers (primarily for fertilizer production), industrial gas distributors, and food processors. Hydrogen production has seen steady growth since 2010 and the global value of the hydrogen-generation market is expected to grow from an estimated US$115.25 billion in 2017 to US$154.74 billion by 2022, a compound annual growth rate of 6.07 percent.17 Factors such as the cleanliness of hydrogen fuel compared to fossil fuels, government regulations for desulfurization of petroleum products, and decreasing crude oil quality are driving the market. Advantage 4. Commercially valuable polymetallic matte In addition to its high zinc content, the Blackstone Mine contains recoverable and commercially valuable amounts of copper, gold, silver, lead, and manganese. Table 1 sets forth the metals values of each of the identified ore reserves as of June 8, 2017.

http://www.infomine.com/investment/metal-prices/ Value proposition

• Bullet point • Bullet point

15 U.S. Department of Energy (2013), Report of the Hydrogen Production Expert Panel: A Subcommittee of the Hydrogen & Fuel Cell

Technical Advisory Committee, p. 9. https://www.hydrogen.energy.gov/pdfs/hpep_report_2013.pdf. 16 On May 20, 2014 the first Hyundai fuel-cell vehicles appeared on the U.S. market. In October 2015, the first hydrogen powered Toyota

Mirais were delivered to customers in California and the Mirai is now for sale in the United Kingdom, Denmark, Belgium, Norway and Germany. According to the U.S. Energy Information Institute, there are currently about 500 hydrogen-fueled vehicles in use in the United States, and 330 of those are registered in California. Most hydrogen-fueled vehicles have an electric motor powered by a fuel cell; a few burn hydrogen directly. https://www.eia.gov/energyexplained/index.cfm?page=hydrogen_use.

17 Markets and Markets. Hydrogen Generation Market. http://www.marketsandmarkets.com/PressReleases/hydrogen.asp.

TABLE 1: BLACKSTONE MINE ORE VALUES (EXCLUDING ZINC) Please refer to table footnotes for important information

Metal

PROVEN PROBABLE Stockpile (H2-compatible) H2-compatible (High-grade) Leach-grade H2-compatible (High-grade) Leach-grade

Tons Assay Value (000s) Tons Assay

Value (000s) Tons Assay

Value (000s) Tons Assay

Value (000s) Tons Assay

Value (000s)

Copper

20,000

4.94% $5,058

35,500

4.94% $8,978

700,000

0.20% $7,618

186,000

4.94%

3,000,000

0.20% Gold (oz/ton) 0.106 $2,684 0.106 $4,765 0.078 $69,145 0.106 $69,145 0.078 Lead 4.00% $1,504 4.0% $2,669 0.25% $3,290 4.00% 0.25% Manganese 1.15% $409 1.15% $726 2.00% $24,920 1.15% 2.00% Silver (oz/ton) 23.58 $8,111 23.53 $14,397 2.110 25,404 23.58 $25,404 2.110 Zinc 8.50% * 8.5% * 0.50% * 8.50% * 0.50% * TOTAL (000s) $17,768 $31,538 $129,927