http://www.fireflyenergy.com/

Firefly International Energy Company

• Genesis of Firefly Technology

• About Firefly Technology

• Value for the customers

• US battery Market Potential

• Competitive Landscape

• About Firefly International Energy Inc

• Our Plan

Presentation Roadmap

Genesis of Firefly Technology

• Firefly’s revolutionary battery technology was born in the Research and Development laboratory of Caterpillar, Inc., a world-renowned manufacturer of heavy equipment

• Caterpillar has long been a consumer of batteries for its many heavy equipment products. These, by their very nature, put a severe strain on batteries. Hot and cold extreme temperatures, severe vibration, and prolonged periods of disuse are standard operating conditions for heavy equipment batteries.

• With a new corporate focus on improving batteries, CAT electronics turned the issue over to their R&D arm.

Future : Lead-Carbon = Firefly (Advanced Lead- Acid Battery)

• Firefly has patented ‘Microcell Carbon Foam Technology’, which allowed exploitation of existing lead-acid chemistry to compete head-on with other advanced battery technologies

• Through material innovation, Firefly succeeded to offer Higher Efficiency & Cycle life which brings down the total cost of ownership

• Firefly's goal is to manufacture the lowest-cost-of-ownership, energy-storage systems in the world

• This revolutionary technology was invented by Mr Kurt Kelly. He was able to configure the material in such a way that it thrived in the harsh lead acid chemistry environment

Mr. Kurt Kelley

Firefly “Microcell Carbon Foam Technology ” (Advanced Lead Acid Batteries)

Lead Acid – Battery Problems

Corrosion Sulfation Shedding

Use of Carbon

as envisaged by Experts

Cost Effective Solution

Kurt is a geologist, by training. He wanted to use carbon for solving the problems of lead acid

batteries in 1998. He found that the Pb acid battery literature is discussing the same in detail.

About Firefly Technology

Microcell Carbon Foam Technology:

• Disruptive processes and performance

• Battery design capable of using multiple chemistries

• Utilizing lead-acid chemistry presents greatest gains

• Advanced battery performance for lead-acid costs

• Insensitive to state-of-charge

Firefly Technology

From decades-long use of Lead Plates with limited Surface Area…. 30% - 40% Utilization

…To Micro Cellular-based Batteries with 2000x Surface Area…90% Utilization

Firefly’s “Revolutionary” Product

Firefly battery get’s better life

From decades-long use of lead plates with limited surface areas…. Low Utilization

To micro-cellular-based Foam plates with much greater surface areas… Exceptional Utilization

• Infrared images snapped at the end of a 5C (12 minute) discharge of both a Firefly 3D cell and a traditional cell.

• More uniform temperature distribution of the 3D cell o = uniform current density distribution

o = higher overall active material utilization

• More uniform temperature distribution will minimize o localized positive grid corrosion (PCL1)

o localized positive active material wearout (PCL2)

Positiv

e P

late

s

Negativ

e P

late

s

Traditional Cell Firefly 3D Cell

12

Internal testing

FF battery has better heat transfer

Value for the Customers

Firefly “Microcell Carbon Foam Technology ” (Advanced Lead Acid Batteries)

Quantum Leap in Performance

• The Solution – Firefly: Microcell Carbon Foam Battery • Increased power density and specific energy over traditional Pb Acid battery

• 2-3x recharge rate

• 2-3x the calendar life expectancy of Pb Acid Battery

• 2-3 times cycle life expectancy of Pb Acid Battery

• Manufactured cost equivalent to premium lead acid

• New Combination of Off the Shelf Materials o Up to 12-15% reduction of lead

o Environmentally safe

• Fits into existing lead acid battery infrastructure o Manufacturing Production

o Customer use

o End of life recycling

22325 W. St. Rt. 51

Genoa, OH 43430

419-855-3389

The Result : Cycle Life

Intellectual Property and Awards

• Eight (8) U.S. & Other Patents 23 Patent Applications filed

• Patented in US, India, China, Korea, Russia, Brazil, Japan and UK

– Enhanced lead acid battery using commercially viable modifications to the existing materials. Could use existing manufacturing base (evolutionary)

– New battery concept using novel materials to improve performance. Novel materials revolutionize battery performance, minor change in manufacturing capability (revolutionary)

Evolution of LA Battery Technology – In brief

• Flooded Lead Acid Battery – 1859 (Gaston Plante)

• Sealed Battery – Low maintenance – early 1900's

• VRLA (Valve Regulated Lead Acid) Battery , AGM –

1972 (Gates Corporation)

• VRLA Battery , Gel – 1983 (Sonneschien)

• VRLA Battery, Carbon Foam Technology – 2000

(Firefly International Energy LLc)

Firefly “Microcell Carbon Foam Technology ”

(Advanced Lead Acid Batteries)

Comparison Li ion Carbon Foam Pb acid batteries (SMF)

Performance 3C 8C 5C

Life (80% DOD) 1000 cycles* 1000 cycles* 300 cycles

Discharging Temp Range -10°C to 60°C -40°C to 60°C -20°C to 60°C

Charging Temp Range 0°C to 45°C -40°C to 60°C -15°C to 50°C

Self-Discharge very low 0.15% per day 0.3% per day

PSOC No effect on Life No effect on Life Affects the battery life

Serviceability Maintenance free Maintenance free Maintenance free

Standards NA SAE J2185 & BCI : 05 NA

Cost per kW H in USD 600-650 275 150

* with BMS

Firefly’s Microcell Carbon Foam technology offers

“Higher Efficiency, High shelf life at Lowest-cost-of-ownership”

Competitive Product Matrix

Market Potential - USA

Item 2000 2005 2010 2015 2020

Secondary Battery Demand 5190 6495 8570 11300 14550

Lead-Acid 3920 4650 5400 7000 8950

Rechargeable Lithium 420 875 1880 2845 4020

Nickel-Metal Hydride 220 480 740 810 840

Nickel-Cadmium 465 250 220 195 160

− net imports 1107 1999 3020 3820 4920

Secondary Battery Shipments 4083 4496 5550 7480 9630

SECONDARY BATTERY SUPPLY & DEMAND 2000 – 2020 - USA

Source: The Freedonia Group, Inc.

Values in USD million

LEAD-ACID BATTERY SUPPLY & DEMAND 2000 – 2020 - USA

Item 2000 2005 2010 2015 2020

Lead-Acid Battery Demand 3920 4650 5400 7000 8950

Starting/Lighting/Ignition 3200 3700 4350 5670 7250

Non-SLI 720 950 1050 1330 1700

+ net exports -14 -347 -140 -210 -330

Lead-Acid Battery Shipments 3906 4303 5260 6790 8620

Source: The Freedonia Group, Inc.

Values in USD million

NON-SLI LEAD-ACID BATTERY DEMAND (million dollars) 2000 – 2020 - USA

Source: The Freedonia Group, Inc.

Item 2000 2005 2010 2015 2020

Non-SLI Lead-Acid Battery Demand 720 950 1050 1330 1700

Motive Power 392 583 670 935 1245

Stationary & Other Types 328 367 380 395 455

Values in USD million

Competitive Landscape - USA

Competitive Landscape – Lead Acid

EnerSys –a well established company with a good R&D staff provides primarily backup – power for emergency use and power applications. Deep-cycling is not strength of their technology

C&D Technologies – A well established company that excels in good - quality, large, storage batteries. C&D uses a more traditional battery design than EnerSys, which has better deep – cycle capability. The technology is still limited by the traditional design and failure modes. Lately, they are offering PSOC operating battery using carbon additives mainly for ISS

Exide – Exide is a well established company, which is recently trying to rebuild its R&D capability. The battery designs are traditional PbA and, while offering a wide range of products, are average performers at best. For PSOC operation, Carbon Additives Batteries are being offered.

East Penn – A well established company with probably the best R&D and manufacturing quality in the group. EP batteries consistently outperform the competition in our testing. They have a wide selection of batteries, but do not intensely compete well in the large deep-cycle arena. Expect new products from this company that are well designed for applications. “Ultra Battery” is offered for mainly HEV/Frequency Stabilization application.

Trojan Battery – Trojan is best known for their deep –cycle batteries for golf carts and small utility EVs. An excellent product and quality construction. Trojan does not compete in batteries over about 1 kWh, in general.

Target Market Segments - Firefly

Peoria Police – Utilizes a standalone battery system designed and built by FIE to power a

DVR system and up to 10 cameras. The truck is left unattended for up to 10 days

recording video surveillance in all elements.

Tata Motors – Currently is testing the FIE Oasis battery in a 72 volt configuration for their

hybrid electric car. Tata is the largest auto manufacturer in India.

Herzog – A railway maintenance company, their current batteries do not survive the abuse

and neglect of a rail car. Partial state of charges and poor charging has decimated

competitor’s batteries.

HPEV – Currently are converting utility trucks into hybrid electric vehicles for the mining

industry. There need for a robust, safe and quality battery has brought them to FIE.

Currently they are installing 30 Oasis batteries in series per truck.

Two defense contractors are using Firefly batteries for tough application conditions and the

likely future numbers are high. FF Batteries are approved by Dept of Defense

Existing Customers

The Company currently is focusing on the following end

market segments:

• Telecommunications

• Renewable Energy

• Uninterruptible Power Supply (UPS)

• Electric/Hybrid Vehicles

• Grid Scale Energy Storage for distributed generation

• Mass Transit and Commercial Trucking

• Military and Municipal Applications

• RV/Boat Recreational needs

Target Market Segments

• With coming in of new regulations, steep rise in energy demand and advent of advanced lead acid batteries multiple new applications are coming up for secondary batteries like:

• Intermittent Start and Stop (ISS)

• Energy storage for peak shaving/ frequency stabilization/ voltage regulation BESS

• Energy storage from non-conventional sources BESS

• EV/PHEV – For low cost vehicles

• Underground Mining/ High Power Motive Equipment like Electric Locomotives

• Renewed Emphasis on Island Operation of Strategic Installations

• OFF GRID Island Operation of Renewable Energy Sources

• Recent study by IHS Research projects, World Solar storage market set to explode to US$19 billion in 2017

(http://solarquarter.com/index.php?option=com_k2&view=item&id=303:solar-storage-market-set-to-explode-to-us-19-billion-in-2017-says-ihs)

Potential Market Segments

About Firefly International Energy Inc

• Mr. Mukesh Bhandari – Director, CEO

• Mr. Rajendra Patel- Director, Vice- President

• Mr. Kurtis C. Kelley – Chief Technology Officer

• Mr. Mat Stone – Manufacturing Manager

• Mr. Rob MacDuff - Testing Manager

Management Team

The company has an Advisory board comprising of leading industry professionals and opinion makers, the names are as under:

• Mr. Mike Kepros

• Dr. Arvind Parthasarathy

• Mr. Garth Corey

• Dr. Nasser Kutkut

• Mr. Kurtis Kelley

• Mr. Mukesh Bhandari

Advisory Board

Next Generation Technology Plan

2003 - 2009 2010 - Present

Corporate

2003

Firefly Energy, Inc. (FFE) is established as a spin-off from

CATERPILLAR’S R&D

2007

FFE’s technology is recognized for major industry awards

from Wall Street Journal Technology Innovation and R&D

100

2008

FFE receives $15 million total funding (including earning a

$2 million grant from the US military)

2009

FFE’s Oasis battery undergoes benchmark testing within

Peoria (IL) public buses (CityLink)

2010

Firefly International Energy Co. (FIE) acquires assets

of Firefly Energy from Bankruptcy Estate

Re-launches new corporate website

(www.fireflyenergy.com)

2011

FIE brings production of carbon foam in-house.

Undertakes development to increase manufacturing

quality substantially and reduce cost by 70%.

2012

Begins inhouse manufacturing of Group 31 batteries

on small scale and reduce cost by 33%

2013

Finished development of Computer aided temperature

controlled formation process, leading to better

Ampere hour delivery

Employees 0 - 50 10

Locations

Peoria, IL

Peoria, IL

Additional operational center in India

Revenue $(MM)

Pre-Revenue

2011 = N/A

2012 = $1.67

2013 = $1.33

Markets USA USA, Canada, India, Australia

Firefly: Then and now

Thank you!