International Zeolite Corp IZCFF

RE:Why I Ride IZ Hard & Put Away Wet

[phantom666]

 The Registrant has its executive offices at Suite 2300 - 1066 West Hastings Street, Vancouver, British Columbia, Canada, V6E 3X2 (Tel: [phone]; Fax: [phone]; President's cellular telephone 604-617-xxxx; e-mail: [e-mail] and website at www.zeo-can.com). 

 On October 28, 1999, the Registrant entered into a strategic alliance with C2C mining Corporation ("C2C") of Calgary, Alberta, Canada; refer to Exhibit 10.5, page 120. Management is of the opinion that the synergies between C2C and the Registrant will allow both companies to exchange resources, reach expanded geographical territories and present new business expansion opportunities. The exchange of research and development information and access to the formulations and patents held by C2C and the National Research Council of Canada will serve to advance the product development and sales of zeolite and rhyoltic meta-tuff minerals. On October 15, 2001 C2C and the Registrant entered into a Licensing and Production Agreement (Exhibit 10.6, page 121). C2C developed and holds patents, licenses and proprietary information on the nature, use and application of zeolite. The parties agree as follows; the Registrant will pay C2C a royalty of 10 percent of sales on the first Cdn. $1,000,000 (US$667,000) per annum, 5 percent on sales from Cdn. $1,000,000 to $1,500,000 (US$667,000 to $1,000,000) per annum and 3 percent on sales over Cdn. $1,500,000 (US$1,000,000) per annum. The minimum royalties are NIL for the first year, Cdn$5,000 for the second year and Cdn$10,000 per annum between the third and fifteenth year. Both companies will form a management committee that will oversea the engineering, procurement and construction of a plant to produce zeoFUME. The committee will also deal with quality control and assurance issues and will report all operational issued to this committee. The Registrant and C2C will distribute the licenses from consumers and manufacturers, where the fees will be equally collected. Licenses will be issued on both exclusive and non-exclusive licensing agreements. The application of zeolite for downhole cementing will be restricted for the purposes of this Agreement since C2C has already made an agreement with another company for exclusive use of this application in NAFTA countries. It is the intention of the Registrant to begin production on its Zeo and Zeo #1 claims. These two claims hold a mining lease which allows them to produce at least 27,000 tons annually. The Registrant has the following strategies for earning and growth: 1. To continue developing strategic alliances with companies and organizations that incorporate the use of technology in conjunction with the application of zeolite; 2. To expand processing facilities in Western and Eastern Canada to meet market demands and to look at the developing markets in the United States; 3. To expand from a commercial processor of zeolite into a manufacturer of zeolite based building materials; and 

 Application Application ----------------------------------- ---------------------------------------- <S> <C> Industrial Absorbent (Auto/Marine). Pozzolanic Aggregate Building Materials Toxic Waste Encapsulation . . . . . Stall Maintenance (odor/moisture) Golf Course Turf Grass Maintenance. Sports Field and Parks Amendment Aquaculture and Pond Filtration . . Effluent Treatment (GVRD Waste Sludge) Removal of Heavy Metals (Soils) . . Water and Air Filtration Treatment of Radioactive Ions . . . Drying Agent for Building Flood Relief Anti-Caking Agents for Animal Feed. Organic Composting and Potting Soils Turf and Soil Enhancement . . . . . Animal and Biosolids Waste Treatment </TABLE>