DuTemp Corporation

A TEXAS Registered Corporation www.dutemp.com ceo@dutemp.com Page 1

Office of Chief Executive Officer

July 29, 2012

Gentlemen: Dr. Juan Carlos Granados Becerra (Gobernador de Boyacá) Margret Thacher once said: “Societies without people dose not exist”. I would like to rephrase her sentence with: “Societies without environmentally friendly manufacturing complexes will not be sustainable”.

As we entered into the 21st century with the U.S. “Clean Water & Air Act” of 1999 and the emergence of

new “EURO Standards” thereafter, environmentally friendly operations by industrialists have grown by virtue of rewards and incentives.

The U.S. “Clean Water & Air Act” mandates became operational around 2008 but in full force in the years 2010-2012 while “Euro Standards” became fully functional around years 2006-2012 and shall become more in tune around year 2013.

The CO2 tax credit, Carbon Cap Trade and renewable incentives has/will create a strong derivatives market (as has begun) and shall bring more opportunities to those that are willing to invest in sound clean technologies in the near future.

As human beings, we strive to learn from our mistakes and find alternatives to correct the wrong paths of the past. As such, the U.S. & much of Europe have abandoned many bad power plant operators with their unwarranted emissions from burning coal. Thus, coal prices plunged to below profitability for mine operators. This is not because the coal was bad, but because the processes of conversion were lacking and created long lasting negative environmental effects worldwide.

Damages are done and it will be for the next generations to spend years to find solutions which will correct the bad practices of the past, their effects, cleanup remedies and reversal of negative impacts on environments.

The United States, in the forefront of industrial renaissance, has adopted the mass exploitation of Natural Gas (NG) to feed its industrial complexes. As a result, the U.S. coal has diminished. The U.S. will not export its NG to suppress the price of gas for years to come. Consequently, many manufactures have relocated back to U.S. to start building new manufacturing hubs that will shift the world productions hubs from overseas back to United Sates. These effects will be felt immediately, if not started already, with slowdown of manufacturing in the Far East and reallocating investments to the United States.

European Union adoption of clean fuels, CO2 cap mandates and manufacturing penalies have been instrumental in purging the industries with bad operators. In addition, with continuation of more lucrative incentives to clean operators, more clean manufactures should move back to Europe in the future. The Germans are perhaps one of the leaders of clean plant operations within the European Union at this time.

Many other countries have not yet adopted the same clean mandates to protect their industries regardless of their bad practices.

Those countries will eventually challenge themselves in the near future by the new set of mandates enforced by other countries to comply with WTO mandates and/or trade requirements. Indeed, exporting to North America and Europe as the strongest consuming markets will become very challenging and difficult. The question becomes: do you adopt the same rulings now or wait until you cannot export

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anymore because you cannot qualify or must pay hefty taxes that make manufacturing and exports unfeasible in the near future? The answer is to adopt the same rulings now and avoid unprecedented negative effects on your industries in the near future. Such adaptation and implementation will guarantee continuation of production and manufacturing in partnership with the rest of the world. Early this year, many coal fired power plant operators publicly expressed their frustrations with new rulings that caused the shutdown of many of their plants. They acted as if these rulings are new and that the U.S.-EPA should not have the power to enforce. The reality is that these mandates were telegraphed years ago and even though operators had over 10 years to correct the flaws in their processes, they ignored it and continued with their bad practices. These behaviors by operators should not be tolerated in any society or welcomed by the validators. Now the question remains about the future of Coal and its role in the future of the world. The fact of matter is that Coal can deliver better values than Crude oil since it contain longer carbon chains. While Crude Oil hovers around $600 per Metric Ton (MT), Coal could be purchased for around $20 to $40 per MT. But when Coal is cracked properly (in our reactors only) with 98% conversion efficiency or better, it will produce between 6.7 to 7.3 barrels of finished products based on per Net Metric Ton of Coal with a price value of $1200 to $1700 per MT of its finished products with superior quality to products derived from Crude Oil processing activities. At the same time, if one can clean Coal and produce it in 98%+ purity, it also can compete with Crude Oil and the added value would immediately jump to about $600 per Metric Ton. Fundamentals are the same for any carbon based products with right conversion process; the same results, if not better, should be produced. DuTemp Corporation has the technologies to either clean the Coal for use/export through its Silicate Based technology or can crack any type of Coal (low grade or not, wet or dry) to produce hi end liquid fuels (used as additives and blending components due to their higher octane {129-131} and cetane {77 to 81} numbers) within our Plasma Arc Reactor facilities. The operating costs remain at less than 10% of the finished products’ selling prices. Emissions are very limited or nonexistent since they can be processed within the same reactors. All produced products are biodegradable and entitled to carbon credits as renewable energy due to advanced conversion methods. Unfortuiantly, there are those that constantly present the market with 19

th and 20

th centuries’ technologies

with new confusing terminologies or presentations that are not viable or can produce the same results. As such, it is common to hear following words from opportunists:

1. Gasification, 2. Pyrolysis, 3. Low Temp Pyrolysis, 4. Char Pyrolysis, 5. Molten Metal Gasification, 6. Under Ground Gasification, 7. All are considered hybrid incarnation as the process definition is; Partial Incarnation and

starvation for oxygen, 8. Best conversion rate cannot exceed 38% of carbon molecules, 9. Short life of gasification units (3 years max) with costly revamps, 10. Constant maintenances as early as every 90 days that requires shut down, 11. Produce landfill materials and other harmful emissions while produced Methane is dirty, 12. Requires sequestrating of emissions as impossible to clean up, 13. Over 60% of based products are not usable any longer and wasted, 14. Operating temperatures around 1200 f to 1700 f but never above 2750 f to reach the plasma

stage,

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15. Their main engine is a Furnace and not a Reactor regardless of sources of their heat generation as many propose the use of Plasma Torch as sources of heat to confuse the end user with true nature of presented processes.

To distinguish between our technology and others, you must look for these characteristics:

16. Pyrolysis in the absence of Oxygen, 17. Operating temperature is 3300+ f that is well above 2750 f to reach the plasma stage, 18. 98% conversion rate of carbon molecules in first phase, 19. Reprocessing balanced 2% CO2 production of first phase in second phase thus 100% conversion

of Carbon contents, 20. Does not distinguish between quality of feedstock and always produces the same results

regardless of quality or wetness of feedstock, 21. Major revamp is 50 years, 22. Annual Maintenances requires 20 days shut-down per reactor, but with use of an additional

standby reactor, plant is 365 days per year operational, 23. No slag or waste products as all become usable components, 24. No emissions from Reactors as enclosed operation, 25. No wastewater discharges as all consumable, 26. In Coal process, there are needs of average 6 MT of water for per Ton of Coal that could be used

from any source such as seawater, rivers or wastewater or sewage water, same difference, 27. Wet coal delivery to the plant is a plus that would make water transport through pipelines a

cheaper way of transporting coals from mines to the plant at a fraction of current transport methods.

Perhaps the most challenging employment position in today’s market is being a validator that must carry the weight of choosing the right technologies for the host nation. Any mistake can be disastrous as bad planning can bring any country to the brink of bankruptcy. Far East new industrial hub expansions are a good example of this situation. They have accrued Gasification’s from majors just because they came with fancy names and forgot to evaluate the proposed system’s functionalities based on today’s market requirements/regulations and their efficiencies. Their massive investment has been evaporated and no validator is around to answer why such a bad design was adopted. DuTemp has been actively in contact with those identified as validators of technologies in different countries, but has been most active in Latin America. We shall continue with our efforts even though we may not benefit directly, but shall be rewarded with living in a harmony in the same plant where polluters are not welcome. We want to thank everyone for this opportunity to present our solutions and hope that we can continue to be helpful until all is well with our environment. Sincerely,

Farid Seif, CEO

Direct Line: (001) 281-630-5066