AeroMechanical ServicesInvestor Presentation: June 16, 2011

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Richard HaydenPRESIDENT

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Company Timeline

COMPANY FOUNDED

1998 20032002

Underfloor Stowage Unit

2004

AFIRS 220

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2010

Company Timeline

Launch of FLYHTStream and FLYHT Fuel Management System

AFIRS 228

2008 2011

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Automated Flight Information Reporting System (AFIRSTM)

“Blue box”-proprietary &

patented; voice & data- 2 way

Connects to Black Box and other data

sources

Global satellite communications

(Iridium)

Relays secure information from

Blue Box to server and back

Data transformed into timely messages and usable

information using proprietary UpTime software

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What is AFIRS?

• “OnStarTM” for aviation

•Provides timely, mission-critical and actionable information to operations, maintenance and management

•Benefits to customers include cost reduction, improved on-time performance and compliance verification

•AFIRS is:• Integrated aircraft-to-user data delivery service

•Global and available 24/7/365 from anywhere to anywhere

•Certified by Transport Canada, FAA, EASA, CAAC (China)

•Secure

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AFIRS 228: Key Differentiator

• Future Ready

• Air Traffic Services /Safety Services

• Aircraft Communications Addressing and Reporting System (“ACARS”) over Iridium

• Timely transmission of key information

• Remote troubleshooting of aircraft

• Multiple modes of communication

• First production release Q3 2011

• Safety services version Q2 2012

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FLYHTStreamTM

AFIRSTM 220 & 228

• Satellite communications

• Flight following• Real-time data

UpTimeTM

Web hosted delivery system

FLYHTTM Fuel

Management System

Fuel Initiative Reporting

System Tracker (FIRST)

Unique Line of Patented Products and Services

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Business Model

•Similar to wireless service providers, but with an OUTSOURCED network

•One-time charge for the aircraft kit ($40-$60k)

•Service revenue (target $2k / mo / aircraft is the goal)

•Value added services

•Fleet watch

•Data streaming mode

•Fuel Management/emissions compliance

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Market Drivers

•Operational improvements•Tracking

•Communications

•Standard operating procedures compliance

•Cost savings•Crew and staff utilization

•Maintenance planning

•Fuel consumption

•Cost of services (voice, data)

•Regulatory compliance

•Air traffic

•Accountability for aircraft location

•Carbon emissions

•Noise abatement

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Market Drivers

Flight Safety

• Flight irregularities trigger automatic reports

• Data transmitted via satellite to ground personnel in real-time for immediate action

• Emergency mode automatically streams key flight data & GPS positioning to ground

• Emergency recipients include maintenance personnel, airline executives, Chief Pilot, air traffic control, search & rescue

• All data received & stored in ground servers for post-event analysis

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Markets

• Commercial aircraft•Airlines

•Cargo

•Charter and special missions

• Business aviation

• Leasing companies

• Military

•Transport

•Helicopters

• Manufacturers

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Market Penetration

SIGNED• 33 operators

• Size ranges from 2 to over 100 aircraft

• All 6 continents

• Profile• Scheduled passenger

• Charter / unscheduled

• Special missions (UN Food in Africa, and Antarctic missions)

• Military transport

INSTALLED• Over 250 delivered

• Approx. 200 reporting

• During heavy maintenance – two year cycle

Aircraft Manufacturer• Hawker Beechcraft

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High Regulatory Barriers to Entry

•Supplemental Type Certificates (“STC”)

•AFIRS 220 – 30 approved

•AFIRS 228 – 15 applications

•Patents

•United States (International)

•China

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Strategic Alliances

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Growing the Business

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Financial Review - Annual Results

* AMA defines cash revenue for accounting purposes (“GAAP”) plus payments received for AFIRS shipments that cannot yet be recognized for accounting purposes.

  2010 2009 2008 2007

Revenue (GAAP) $5.0 $5.1 $3.2 $2.0

Revenue (cash) * $6.1 $7.5 $5.3 $2.6

Net Loss (9.1) (4.5) (8.5) (6.9)

Loss (before R & D) (4.3) (4.0) (7.8) (6.6)

Loss/Share(basic & fully diluted) $(0.09) $(0.05) $(0.11) $(0.11)

Assets $11.0 $11.8 $6.0 $6.3

Long Term Financial Liabilities $2.4 $0.3 $0.3 $0.4

In $ millions except for per share amounts

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Financial Review - Q1 2011

• Increased Cash Revenue

• Decreased Net Loss

Q1 2011 Q1 2010

Cash Revenue $1,373,781 $1,267,676

Net Loss (before R&D) $702,805 $1,026,209

Net Loss $1,485,292 $2,063,614

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Financial Position

• Completed two private placements December 2010: $6 million

• Q1 2011 Industry Canada Strategic Aerospace Defense Initiative loan $1.96M

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2011 FLYHT Plan

• Complete development of AFIRS 228

• Continue to deliver AFIRS 220

• Enhance service and support to current customers

• Commence installation of AFIRS 228 for a minimum of three clients

• Target growing regions of China, South America, Africa, and the Middle East

• Continue to expand Supplemental Type Certificates

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Board of Directors

•BILL TEMPANY, CEO & Chairman, Audit Committee, 35 years of senior management experience

•RICHARD HAYDEN, President, Successful in developing companies, products, and markets involving data-driven decision making in aviation.

•JACK OLCOTT, Comp committee, 40 years in the aviation industry, President of NBAA for 11 years

•CHARLES POLLARD, Governance Committee, former CEO of 2 airlines; 24 years of leadership in the civil aviation industry

•DOUG MARLIN, , Comp and Audit committee,10 years experience as director of both TSX – V and NASDAQ listed companies

•MIKE BROWN, Comp and Governance Chair, 30 years as a business lawyer

•PAUL TAKALO, Audit and Governance Committee, 25 years experience of audit and company operational experience

•JACQUES KAVAFIAN, Comp Committee, 26 years as an analyst in the aviation industry

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Management

• BILL TEMPANY, CEO & Chairman, Audit Committee

• RICHARD HAYDEN, President

• THOMAS FRENCH, VP Finance and CFO

• MICHAEL FANG, VP China Operations

• MATT BRADLEY, VP Business Development

• JEFF BRUNNER, VP Operations

• KENT JACOBS, Technical Director, Advanced Applications

• STEVE HARKE, Director of Product Development

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Investment Highlights

1. Unique line of patented products and services

2. Recurring long-term revenue stream from installed base

3. High regulatory barriers to entry

4. Strategic alliances with industry sector leaders

5. Increasing customer growth in flights, hours and aircraft types

6. AFIRSTM key industry differentiator moving to next generation

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