Zinc Redox Technology

- Confidential -

In-House Experience andWorld-Class Partners

Dave founded Glacier Stone Supply in 2003 to focus on mining, manufacturing, and distributing the best Montana stone products. Dave is currently responsible for the overall strategic direction and operating results of Glacier Stone Supply. Prior to Glacier Stone Supply, Dave spent over 10 years in the wireless industry. Mr. Wilkins founded NetWireless in 1996 to focus on reselling and distributing cutting edge wireless products and services to medium and large corporations. NetWireless was Nextel’s largest Nationwide Distributor with over 250 employees. Mr. Wilkins managed Net Wireless from a startup with under $100,000 in starting capital to negotiating the sale of the company with a revenue run rate of over $38,000,000. Dave started with Nextel during the launch of their 1st digital market in the U.S. and received the #1 management awards in Southern California including Top Regional Sales Manager and the Commitment to Excellence Award. Mr. Wilkins studied business at both Loyola Marymount University and the University of Southern California

Craig has 25 years of sales and business management experience with a variety of start-ups and privately held companies. Mr. Wilkins is currently working as the VP/CFO of Zinc Air, Inc. Previously, Craig was the founder and President/CEO of Acceptance Capital Mortgage Corporation, which was the 11th largest mortgage broker in the United States in 2007 and continues to operate today. Craig was also a founder and principal owner in NetWireless and managed the eastern United States while developing the corporate account team. When NetWireless sold to Bearcom, Craig managed the combined corporate account teams for the company. Prior to his work at NetWireless, Craig was the Director of Sales for CSI Financial, the second largest purchaser of hospital receivables in the United States. Craig has a BA in Finance from University of Montana and completed his graduate studies in Economics.

Management Team

Dave Wilkins, President

Craig Wilkins, VP/COO

Dr. Cooper received his Ph.D. in Chemistry at the University of California at Berkeley (1975) in the Chemical Engineering group of Prof. Charles Tobias. He has conducted R&D in diverse topics of electrochemical science and engineering for 30 years, including research on fuel cells and batteries using reactive-metal or elemental carbon anodes. Recently, he directed projects at the Lawrence Livermore National Laboratory that are developing practical fuel cells of high efficiency for use in distributed power generation as well as specialty carbon batteries and fuel cells. His current research is directed towards the development of fuel cells that convert coal or petroleum coke chars to electric power at efficiencies of 70-80% HHV. He is the author of 120+ papers and 20+ patents, primarily in the fields of electrochemical energy conversion, electrochemical processes, and laser materials. He has recently retired from Lawrence Livermore National Laboratory, where he was Senior Scientist for Energy Technologies in the Chemistry and Materials Science Directorate.

Technical Team

John Cooper, Ph.D., Research Scientist

Kevin Witt started Semitool’s Disruptive Technology group in 2006 to focus and streamline development efforts on enabling technologies for the semiconductor and other technology fields. He joined Semitool in 2001 as the Director of Business Development for the Electrochemical Deposition (ECD) group and engineered Semitool’s resurgence in the memory copper plating market while expanding the portfolio of new ECD processes. He has held global marketing positions at Rodel and Solution Technology, and manufacturing engineering positions at AMD (memory and logic) for copper deposition, CMP, wet cleans, diffusion and as a SEMATECH assignee for post-CMP cleans. He was involved with the start-up of AMD’s fabs 25 and 30 in Austin, TX and Dresden, Germany respectively. He started his formal technical career in 1989 at Perkin-Elmer in the analytical instrumentation division. Kevin holds an MS degree in Materials Science and Engineering, and a BS in Physics, both from the Rochester Institute of Technology.

Kevin Witt, Chief Technology Officer

Grid StorageZinc Redox Technology

Begin With the End in Mind Low Cost – Zinc Redox will provide grid storage at a cost below

existing storage technologies.

Green Technology – Zinc Redox is the greenest battery solution with all reactants being “sewerable”.

National Security – Zinc Redox uses abundant and locally controlled natural resources.

Scalable – Zinc Redox can be scaled up to meet storage demands in excess of 100MWs

Durability – Zinc Redox’s expected lifespan is 20 years with scheduled period maintenance.

Zinc Redox Development

ZAI is currently testing its alpha-prototype Conducting cell optimization tests Validation of prior testing on ionic

membranes Full range of cycle testing

ZAI has retained Wilson, Sonsini, Goodrich & Rosati to execute a comprehensive IP strategy.

ZAI will develop IP throughout the commercialization process

Variability: The Problem with Wind Generation

Market Opportunity

$320B+ investment in storage is required to meet 20% alternative energy mandate.

Large Scale Energy Storage markets for Zinc Redox

System scaling for different vertical marketsKilowatts

MW

TelecomBackup

Solar & Wind

Remote AreaPower Supply

(RAPS)

T&DDeferral

LoadLeveling

Arbitrage

Megawatts

Redox Flow Battery Price: $1M for a 4MW-Hr system

TAM estimated at $200B(DOE Estimate*)

Market Opportunity Wind Power Load Shifting

“Hours-to-days of power for daily energy peak shifting. For this application power capacity on the order of 200 GW and 1,000 GW-hr would necessary for up to 20% integration of renewables.”

Statement from ARPA-GRIDS Grant

Redox Flow Battery Price: $1M for a 4MW-Hr system

TAM estimated at $5B(DOE Estimate*)

Market Opportunity Firming/Smoothing

“Minutes-to-hours for smoothing and firming intermittent power from renewable generation. For this application, reserve power for up to one hour duration providing standby support at a power rating on the order of 20% of the power from renewable sources, currently at 25 GW nationally yields a total storage capacity of 5 GWh needed today..”

Statement from ARPA-GRIDS Grant

Flow Batteries Are Best Suited For Grid Storage - Cost Basis

Metal Air

Flow Batteries Are Best Suited For Grid Storage – Application Basis

Type Manufacturer Location $ / kWh

Zn Redox Zinc Air, Inc MT, USA $350

Zn Bromine ZBB EnergyPremium Power

WI, USAMA, USA

$350+$400+

NA:S NGK Japan $630+

Fe:Cr Deeya Energy CA, USA $400+

Vanadium Redox Prudent (VRB)Ashlawn GroupCellenium

BC, CanadaVA, USAThailand

$500+$600+$600+

Flow BatteryCompetitive Landscape

Zinc Redox (Flow Battery)Advantages

Zinc Redox Advantages

Low Cost Material cost System Cost

Efficient - 80% roundtrip Environmentally friendly Modular & scalable Durable - 20 year cycle life Safe

Not pressurized Ambient temperature

SIMPLE

Catholyte Tank

Anolyte Tank

ZincAnode

Graphite-FeltCathodeIon-Exchange

Membrane

Zinc Redox Technology

Tested and proven technology developed over an 8 year timeframe with corporate and DOE sponsorship. Millions of dollars in research precedes ZAI’s development Extensive knowledge transfer from original scientist to ZAI

Price – projected to be 30+% lower than competing technologies

Alkaline Chemistry - More compatible with existing ionic membranes, which lowers cost and improves cycle life.

Safe Operation All reactants are “sewerable” Battery operates at ambient temperatures (60° C) System is not pressurized.

Ramp or response time is measured in milliseconds Allows technology to be used for wind firming/smoothing as well as

load shifting. Multiple uses improves financial return.

Example: 1MW Battery

Zinc RedoxBattery Pricing Estimates

Preliminary analysis suggests the optimum configuration will be:

Cell Size: ~ 4 ft2 cell (24”x24”)

Stack Voltage: >300VDC

For a 1MW, 4-hour discharge system with 24” cell, operating at 480VDC, the system current is projected to be 260A per stack with a total of 9 stacks each having 276 cells. (Total power off 1.124MW)

Assuming each cell is 1” thick, a stack would measure 4’x4’x23’.

Two tanks having a capacity of 1300 gallons would be required.

System materials cost is estimated to be $381K, or approximately $84.60/KW-Hr in capital.

Zinc RedoxPreliminary Specification Summary

Product Development MilestonesFor Zinc Redox Commercialization

Development is proceeding toward customer shipments in 2011

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Preliminary Specification

Unit Cell Design

Alpha Prototype

Market Requirement Spec.

Beta Prototype & Packaging

Beta Field Trials

Design Freeze (Mfg Spec.)

Product Certification

Release to Production

Product Announcement

Start of Manufacturing

1st Customer Ship

20102009 2011

Completed

Ongoing

Full Scale Production

Thank You For Your Consideration

Contact Information215 Browns Gulch Road

Kalispell, MT 59901

Dave Wilkins, President/CEO

dave.wilkins@zincairinc.com

(406) 249-7930