Ionic Water Technologies, Inc. Products and Services August 2008 iwtechnologies

1. RCTS™ Ionic Water Technologies, Inc. Products and Services August 2008 www.iwtechnologies.com

2. CONFIDENTIALITY PROPRIETARY INFORMATION NOTICE All information delivered in this presentation relating to the Rotating Cylinder Treatment System (“RCTS”), US Patent No. 7,011,745 is patented technology proprietary to Ionic Water Technologies, Inc. The presentation’s content related to IWT’s technologies shall not be used for any purpose by any recipient or viewer hereof without the express written consent of Ionic Water Technologies, Inc.

3. The ProblemUnique Challenges AMD Remediation • Funding • Unlimited Resources are available for the project

4. The ProblemUnique Challenges AMD Remediation • Technology • The right solution is easy to find • Design • The design process is always simple and painless

5. The ProblemUnique Challenges AMD Remediation • Implementation • Everything is on schedule and under budget • Operation and Maintenance costs are always less than expected

6. The ProblemUnique Challenges AMD Remediation • Results • The treatment system always operates better than expected

7. Simple SolutionsCost Effective, Efficient, Sustainable

8. The Core BusinessIWT Solutions IWT’s Primary AMD Portfolio • Permanganate Passivation – Exclusive provider of the patented Passivation technology for AMD prevention and passivation • Sustainable Bioreactors – Expert design of sustainable sulfate reducing bioreactor systems • RCTS™ - Rotating Cylinder Treatment System™ IWT manufactures the patented system for use in treatment systems

9. The Technologies Permanganate Passivation AMD Prevention & Passivation Insignificant Chemical Costs Simple Application Can you afford not to? Exclusive Provider IWT is the exclusive supplier of the University of Nevada Reno’s patented Potassium Permanganate Passivation Technology developed by DuPont Chemical.

10. The Technologies Sustainable Bioreactor Design • Sustainable • Semi-Passive Design - Limited Labor • Metals Removed Outside Bioreactor • Eliminates Short-Circuiting, Plugging • No Carbon Source Depletion • Reduced Long Term Cost

11. The Technologies RCTS™ • Superior Aeration • Superior Mixing • Less Energy • Less Labor and Maintenance • Less Capital Cost • A Better Lime Precipitation System

12. ServicesSimple Solutions • Site Specific Project Assessment • Best Treatment Method Evaluation • Conceptual, Draft, and Final Design • Construction, Operation, Maintenance • Support Services

13. RCTS™ Rotating Cylinder Treatment System™ A Simple Solution

14. RCTS™ Traditional Lime Treatment • Add lime (CaO) or Ca(OH)2 to raise the pH • Precipitate metals as hydroxides • Precipitate sulfate as gypsum • Requires oxygen addition if there is significant dissolved iron, manganese • Oxygen addition is typically accomplished with large compressors and air diffusers and tanks • Lime addition requires thorough mixing due to it’s low solubility and slow dissolution rate. • Mixing is typically accomplished with large mixers inside reaction tanks • Labor and energy demanding

15. RCTS™ RCTS™ Concept • Rotating cylinders add oxygen from the atmosphere to the water • Water clings to the inner and outer surfaces of the rotating cylinder promoting thin film transfer of oxygen • Perforations infuse fine air bubbles and provide aggressive mixing in the containment cell. • System residence time is controlled through flow

16. RCTS™ Hecla Grouse Creek Video of System

17. RCTS™ Hecla Grouse Creek Video of System

18. RCTS™ RCTS™ - System Advantages • Energy Efficient • Aeration and Mixing in a Single Stage Process • Precipitates Metals at a Lower pH • Increased Lime Efficiency • Decreased Sludge Production • Simple Construction • Ease of Operation and Maintenance

19. RCTS™ RCTS™ 4 Rotor System – The Beginning • Low Speed System • Designed for Highly Concentrated Water • Extended Aeration • Metal Precipitation is visual in the low speed 4 rotor system

20. RCTS™ RCTS-4 Rotor™ Rio Tinto Mine • Fe2+ concentrations 6,000 mg/l to 8,000 mg/L. • Acidity was in excess of 20,000 mg/l. • Treating 10 to 20 gpm. • Treating 24 hours/day

21. RCTS™ Improved OxygenAddition – Rio Tinto System O2 = Qw x Fe x 7.14 x 10 -5 O2 = Theoretical O2 demand (lb O2/hr) Qw = Acid mine drainage flow rate (gal/min) Fe = Fe 2+ initial concentration (mg/L) U.S. Environmental Protection Agency (USEPA). 1983. Design Manual: Neutralization of Acid Mine Drainage. EPA-600/2-83-001. Provides more oxygen per energy consumed than conventional systems

22. RCTS™ Iron Hydroxide Solubility with Respect to pH pH vs. Total Iron Solubility Diagram for Ferrous and Ferric Hydroxide Precipitation. Note the Minimum Solubility for Manganese Precipitation is Between pH 9 and 10. (Taken from USEPA 1983).

23. RCTS™ RCTS-30HS™ - Leviathan Emergency 30” High Speed System • Plowed the road April 9 and let the road dry, delivered lime. • Mobilized the entire treatment system on April 13 • Started treating on April 14 and by 10 am April 15 the average pH of the pond was 8.4. • Treated 24 hours/day with 2 man crew onsite an average of 4.6 hours/day • Met USEPA directives • Treated and actively discharged ~7.5 million gallons of water containing iron as high as 610 mg/L and aluminum as high as 490 mg/L. • Removed ~ 180 m3 of sludge from the lined pond in 2 days

24. RCTS™ RCTS-60HS™ - Sterling Sunshine Mine • Manganese Removal ~ 20mgL • 230 gpm –Results less than .003 mgL • 460 gpm - Results less than .010 mgL

25. RCTS™ RCTS-60HS™ - Drive 60” High Speed System • Dual 5 HP Drives • Operates on 5000 Watts of Electricity Total • Motor, Drive, Coupling

26. RCTS™ RCTS-60HS™ - Rotor 60” High Speed System • Dual 60” Diameter Rotors • 43 RPM Produces 10,000 ft2 of Surface Area Per Minute • 15 Acres of Surface Area per Hour • 30,000 perforations for lime mixing and aeration

27. RCTS™ 600 Gallon Operating Capacity RCTS-60HS™ - Containment 60” High Speed System Influent – (2) 3” Female Pipe Thread Effluent – 6” Female PVC Slip fit

28. RCTS™ Batch Treatment Pond Pond Recirc. Influent RCTS – 60HS Discharge Lime Delivery Simple Batch Treatment Schematic

29. RCTS™ RCTS™ Emergency Mobilization • Portable • Small Footprint • Immediate Response

30. RCTS™ RCTS™ Permanent Systems • Scalable • Flexible • Efficiency Upgrade to Reduce Labor, Lime, Energy

31. RCTS™ RCTS™ Lime Delivery Systems • Quicklime Grinder Pump • Silo Feed Direct to RCTS • Replaces Lime Slakers • Slurry Delivery Pump • Eliminates Clogging

32. RCTS™ Elizabeth Mine, Vermont RCTS™ Direct Silo Feed • Direct lime feed to Grinder pump • Semi Permanent system Operates 24 hours a day from April to October • Effective treatment range from pH 6.5 to 10.5 • Influent Iron removal from 800 mg/L to less than 1mg/L

33. RCTS™ Elizabeth Mine, Vermont RCTS™ Direct Silo Feed • Lime mixed with water directly into grinder pump • Lime is mixed and circulated in small mixing tank • The mixture flows directly into the RCTSTM Unit • Presently operating around the clock with three two hour visit a week

34. RCTS™ RCTS-60HS™ Basic System Capital Costs* Total - $115,000.00 * Flow rate of 1 to 600 gpm per RCTS unit depending on influent water chemistry

35. RCTS™ Conclusions Energy Efficient: More Oxygen Per HP Delivered Minimal Labor, Maintenance & Downtime Easily Mobilized For Emergency Treatment Superior Chemical Consumption & Use Expandable To Meet Treatment Demands Small Footprint: Can Access Remote Sites Portable To Permanent Installations Attainable: Lower Capital Investment

36. RCTS™ Past & Present Customers Atlantic Richfield (ARCO) Bureau of Land Management Environmental Protection Agency U.S. Forest Service HECLA Mining Company (pilot demonstration 2008) Newmont Gold Company (commencing Fall 2008) Rio Tinto Working Group (Nevada, USA) State of California (Sierra Nevada's, California) Sterling Mining Company (Sunshine Mine Idaho, USA) Ralston Foods (Reno, Nevada) Weston Engineering (Elizabeth Mine-Vermont)