Laurus Energy, Inc.

To build one of the largest and

most profitable energy companies in

North America

Our Vision

The importation of high cost oil is threatening North America‟s economy

and is the cause of dependence of volatile oil producing nations

Despite a great deal of rhetoric, no meaningful or economical way to

clean the air has been discovered

Huge government subsidies towards renewables and bio technologies has

no chance of making even a dent in either of these problems facing North

America

The cheap energy we have relied on for decades...traditional coal is

being phased out and is not permittable....with no substitute in place

✽ What is the current state of play?

o With such low production cost, subsequent products are much less expensive

than all other alternatives

o Gas created using this technology, when burned in power plants or turned into

products traditionally made with oil, will create fewer emissions than even

natural gas

o North America is the largest energy market in the world and sits on an enormous,

indigenous coal resource that the incumbent industry cannot access

o Laurus has the technology that will unlock this resource at a fraction of the cost of

current prices of oil, gas and “clean” coal

✽ The Solution

✽ An Abundant Resource

Over 2 trillion tonnes of unmineable coal in North America (6.6 Trillion BOE) 400 years of total US energy consumption (liquid, gas,

nuclear, etc.)

Without this technology the coal has no economic use Easy and inexpensive to acquire

Reserves are important for energy company valuations

North America is the largest energy market in the world and sits on an enormous,

indigenous coal resource that the incumbent industry cannot access

$-

$1.00

$2.00

$3.00

$4.00

$5.00

Low Cost Structure vs. Natural Gas

Margin to

Nat Gas

Price

Low Carbon

Syngas Cost

Royalties

(Coal &

Technology)

$4.50

Natural

Gas

εUCG Syngas

$1.50

*Low Cost UCG

Unit UCG Cost Market

Electricity $/MWh 29.93$ 97.00$

SNG $/mmBTU 3.06$ 4.00$

Methanol $/metric tonne 88.40$ 399.00$

Gasoline $/Gallon 0.90$ 3.43$

Diesel $/Gallon 1.07$ 3.75$

Ammonia $/metric tonne 132.00$ 595.00$

Urea $/metric tonne 155.00$ 500.00$

Diesel

Kerosene

Synthetic Natural Gas

Fertilizers

Plastics

Jet Fuel

Gasoline

Films/Coatings

*A Wealth of MarketsWith such low production cost, subsequent products are much

less expensive than all other alternatives

Extracting the benefits of

abundant coal, minimizing

environmental impacts

Emissions substantially reduced

over any existing coal

technologies

Cleaner or comparable to

natural gas emissions

CO2 removal cheaper, more

efficient, and ideal for

Enhanced Oil Recovery (EOR)

Power Plant Emissions Comparison

Gas created using this technology, when burned in power plants or turned

into products traditionally made with oil, will create fewer emissions than

even natural gas

*Low Emissions

Underground coal gasification

(UCG) is a process that generates

a low btu gas called syngas

Syngas is not „synthetic gas‟ or

„synthetic natural gas‟

Syngas is comprised mainly of

hydrogen (H2), carbon monoxide

(CO), methane (CH4), carbon

dioxide (CO2), and nitrogen (N2).

It is produced from coal that is

unusable by any other known

technology

✽ Underground Coal Gasification

Stranded Markets

• Natural gas supply is insufficient for

o Power generation

o Retail distribution

• Ammonia / Urea Market

o Idle fertilizer facility – 25-55 BCF per year

• LNG for Export

o LNG terminal 50% idle – 75 BCF per year

• Native Alaskan partner – owner of

coal, project participant

• Next steps

o Finalize site selection

o Commence site characterization

o Arrange for off-takers

o Permitting

✽ Solving Alaska‟s Natural Gas Crisis

✽Alberta:

Showcase for εUCG in North America

✽ Laurus leases over 2.2 Billion metric tons of coal in Alberta

✽ Permits have been received tor calibration burn

✽ Calibration burn can commence within six months

✽ Supportive local stakeholders

• Letters of support from county, resident organization, and

environmentalists

✽ Next Steps

• Calibration burn Q1 2012 – Q4 2012

• Establish off-take agreements

• Evaluate partnering opportunities

✽Financial

Impacts

[Content TBD – Need to decide on scope of

projects for AB and AK and how many others

at what size and terms and timing]

[Format: Show cash flow build up?]

[Show timeline?]

Sources: Reserve quantities from companies‟ annual filings; Enterprise Value from Finance.Yahoo.com

* Laurus volumes have not been evaluated under the test of proved reserves at this time; they are based on a conversion of

estimated coal volumes under lease

✽ Building the Next Great Energy Company

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Laurus

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Acquire coal now

Focus on breakthrough projects

Create the workforce to execute

Permitting and acceptance … through education and

involvement with regulators, community and environmentalists

Gain wholesale acceptance of the technical, industrial

and financial communities

✽ Path forward