TYRONE ENVIRONMENTAL GRP.

1. TYRONE ENVIRONMENTAL GRP. Making Saturated Brine from Oil and Gas drilling fracture water

2. WHO WE ARE: Tyrone Environmental Grp. • We manufacture patented and proprietary Vapor Compression Distillation and Recovery systems to efficiently clean and recycle Oil and Gas Drilling fracture water.

3. WHAT WE OFFER: Cleaning Fracture Water • Portable and Modular System • Automatic operation • Minimal labor and minimal maintenance • Cost effective operating System • Buy or Lease Options

4. HOW WE DO IT: Pre-treatment& Distillation and Recovery

5. SYSTEM: Dewatering and contaminate separation

6. TECHNOLOGY: DISTILLATION Features and Advantages: • 1/2 penny a gallon or less in operating costs • Ultra efficient energy consumption • Closed loop system - water can be reused • Closed loop system - no air emissions • No membranes or no chemicals required • Concentrate often has a commercial value • Minimizes or eliminates sewer discharge • Output surpasses EPA / Municipal requirements • Fully automated, user friendly control panel • Production materials can be recovered / reused

7. RESULTS: CONCENTRATE FRACTURE WATER & Clean water Concentrate Clean Water

8. RESULTS: Sample results overview

9. RESULTS: PRE - POST SAMPLE RESULTS • Not all Fracture Water requires extensive pre-treatment • This Fracture Water is from the Marcellus Shale • Results were achieved with Distillation and Recovery

10. HOW SALT CONTENT AFFECTS DE-WATERING That This = This plus Example: Results vary Actual weight varies with feedstock That This plus This =

11. SALT CONTENT … DE-WATERING • The previous slide is intended show example output when handling up to saturated brine • Actual results for the amount of de-watering depend on amount of salt content in feedstock and the type and amount of other contaminants • As mentioned in other slides, de-watering up to or exceeding 90% maybe possible

12. Saturated Brine: IMPORTANT • Maximum de-watering depends on the saturation point of the brine. It is important that crystals do not form in the standard configuration of Distillation & Recovery system. • We avoid problems: The level of brine concentration is monitored and automatically managed by process controls and set points.

13. BENEFITS OF OUR SYSTEM: • It is mobile and can be operated in the field • Helps operators comply with EPA • It eliminates the need to dispose of large volumes of brine, contaminated, waste water • System allows you to choose how much water and brine to make, to suit your needs

14. BENEFITS OF OUR SYSTEM: Economic Benefit # 1 Low Operating Cost: Saturated Brine PT + VCD Machine 1 ¢ / gallon

15. BENEFITS OF OUR SYSTEM: Economic Benefit # 2 • Recovered, distilled water can be sold and generate >$ 120,000 in annual revenue Or • Recovered, distilled water can be re-used by the drilling operator and save on water expenses

16. BENEFITS OF OUR SYSTEM: Ecological Benefits • Recycling Clean Water and Brine prevents contaminating the ground, ground water, or local POTW.

17. EQUIPMENT SPECS: 2500 bbl / day

18. COMMENTS: FOUNTAIN QUAIL VS TYRONE • Both companies use similar technology to generate saturated brine: Distillation Vapor Compression • Our system has handled higher TDS than their stated maximum • Our system can provide either a ‘dirty’ or ‘clean’ saturated brine, Fountain Quail may provide only ‘dirty’ brine • Our Operating Labor cost and down time for maintenance is significantly lower • Our purchase price, for the same configuration, is 12.5% less

19. EQUIPMENT

20. COMPARISON: DEEP WELL DISPOSAL VS TYRONE FROM THE POINT OF VIEW OF THE DRILLING OPERATOR

21. BUY DECISION: • If clear brine has resale value, minimal disposal is requried • ROI on $3 Million Tyrone System: 4 Months • If clear brine has resale value, NO deep well purchases will be required

22. CONTACT US: Tyrone Environmental Grp. 304 Spring Dr. Winston Salem, N.C., 27107 Telephone: 336 499 0592