Notes from webinar yesterday 2/9 2021Excuse any spelling errors or incoherent sentences . Cielo Waste Solution Webinar notes 1465 people on todays Call. Production of high way diesel, kerosene, jet marine and naphtha. We are well into the engineering and developing of the technology. Cielo Currently has tested 63 diff feedstocks including plastics . In plastics there are 7 different kinds and competitors mainly can only use 2-3 however Cielo uses all 7. We can also use tires excluding metal, railroad tiles, telephone phones, cardboards,pulp and paper and also municipal solid waste. Prices of Diesel today are up to 2.10 dollars a liter for Diesel. There are big issues with food crop,shortage of soy beans and food crops. Last time we had our webinar we said we need to get to the next stage and haveevery deficiency sorted. We have as you can see in today's press release taken in three experienced engineering firms to see what we could improve before building our other facilities. Status for the different things: End feed system- work is finished Reactor- this is the heart of the process , take out as much hydrocarbons as possible, today using saw mill waste mix with motor oil and mix with catalyst. We have produced for 2.5 years on and off and done alot of experimenting. We found some inefficiencys we took care of such as adding electric heat and big blender inside. We also added a vacuum pump and more pressure / temperature transmitters. Desulfurization We have been working with the University of Calgary for 3,5 years now.The university helped cielo develop thermoelectric polymerization. Cielo is the first in the world to use this specific process . We have our producer in China and when we got it we were building the equipment. In late august when we were ready to put the catalyst in the reactor we saw that it did not look right.The catalyst had missed components and it wasnt ion charged. We asked our chinese producer and they said they couldnt charge it because of hazard chemicals but unfortunately they had not told us this before. We have then sent it ( the catalyst) to texas to get this sorted and it turns around and is being sent back to us this or next week and we hope to have the catalyst installed in the next week, week and a half. Bottom line we believe we will be comissioning this month. Unforeseen things can happen but end of september is our goal. Good news is we also have alot of buyers for higher sulphur content. 3000 ppm sulphur is the limit we are today between 4-500 ppm. Mining, oil industri all of them interested buying with sulphur.we will work on desulfurization but we are still hoping to get into revenues while doing it. Production numbers:, we have our design capacity of 1000 ltrs per hourif we work too fast it changes the quality of the fuel. We need to make changes accordingly, needs to becontinuous so it looks the same. we dont want to add risk. We want a high quality product with the best price. We make changes continouosly and we can push it to 1000 ltr per hour but currently running lower and pushing this up as we see good quality stabilizing. Cielo general update on projects: Inauguration Dunmore 200 people showed up. Our partners did a good job. Engineering has been done on the railline. alot of sitework has been done. on august 24th we finished completed acquisition of edmonton 60 acres outside edmonton.Shell is next door. Gibson can take our sulphur. Right in the center among the biggest refineries in the world. The plans in edmonton , 3 plants at each site can create 1 billion liter of waste fuel per year. Each one plant is 30 full time jobs, 600 000 man hours . Medicine hat first JV to be built, goal to be the first. After starting Edmonton we hope to comission a plant every 3 month after the first one. We are now looking at toronto, halifax too ( deepwater port). If we make fuel out of plastics, it wont be renewable but it will be a recycled product. Airlines are interested . We could definately become importers of plastics. New projects We are right now finishing proposals with partners renewable U putting out in toronto and other locations,this will determine amount of feedstock , offtake customers etc. Renewable U showing great financial comittment flourishing on all fronts. Our business model is to grow many facilities where we can own 100 %.when you get out of our comfort zone you need JV. Cielo is in discussion with more JV partners and hopefully we can inform about new JV partners shortly! Railroad tiles - we have good support from provincial gov in alberta. We have to go through different steps , we picked 4 feedstocks to work with the testing. Question on oil companies building biofuel refineries in Canada: Oil companies know they need to get greener. Only way they can do is get into renewable stock. everyone is changing half their refineries into food crops. still they use soy beans and canola. It is VERY HARD to find anyone see how this will be profitable without subsidies from the government which doesnt exist in canada. Imperial will build a monster facility for renewable fuel but they will need big subsidies from local government. Biodiesel producers in Canada usually sell it in California because thats where they make money. It will be hard for these producers because food crops prices as soy and canola are going through the roof. 1000 ltr per hour We try to find all inefficiencies to get a great product for our bigger projects.We want to nail it all in Aldersyde. Difficult to give a date but we will keep everyone informed. When we hit it you will see a NR directly. Question on Facilty in the USA Number of different sites, working on a MOU with a municipality right now in the USA. Is China only place to produce catalyst? Are you Trying to find a new supplier? we have two different catalysts one in the main process with 4 different suppliers, mostly from germany second is from dezulphurisation we have begun looking for alternatives and we are looking for a different supplier than the one in China. Will Medicine hat be the next facility? Yes we believe so, Edmonton wont be short behind Question on dilution and financing: Looking at different opportunities, we have alot of money right nowWe are in the best financial position now than we have been in 17 years. We are talking to banks, large banks have given us term sheetsand we need to do some things to qualify. In Edmonton we have the worlds 5th largest bank with a term sheet but we need to secure feedstock with legal binding agreement got some work to do there. We are working with financial institutions, brokers and banks. Question on design: We know we can go into design. we want to take the 1000 ltr into 2000 and then 4000. we will start designing bigger after 2021. Are there alternatives to using catalyst in the dezulfurization phase? Yes we have looked at other alternatives than desulphur.we have worked different feedstocks and we have good results right now. Anywhere we can do upgrades we will do them. Expansion in Europe? We get inquiries around the world, right now we stick to North America but we will continute talks in europe because its big market for us in the air business.Right now we will focus on our 10 plants, and hopefully soon more announcements.