APPLIED NANOTECHNOLOGY FOR MORE THAN 25 YEARS

KEMTEK ® (Colloidal Delivery System ®) - CDS ®

CDS® Technology Patented & Protected

by IP Rights - International PCT Patent.

All Registered Trademarks of KEMTEK®.

GRAS Classification by EPA-USA.

14.02.2017 - LFMG

Background of Patent Invention

CDS® - Colloidal Delivery System® Patented Invention (ECCC PCT Patent published2003) developed & owned by KEMTEK®.

Patent Inventor, Mr. Moreno, German, also Founder Partner and Chairman/CTO ofKEMTEK® – Colombia, Founder Partner and CTO of STALLEN BIO (KEMTEK® SwissPartnership - 1998), Founder Partner and CTO KEMTEK® Brazil – 2017.

Chemist from the National University of Colombia (Universidad Nacional deColombia). Master in Brewery and Malting Processes. Specializations in AgrichemicalFormulations, Surfactants and Surface Chemistry.

Development, validation, transfer and commercialization of Applied NanotechnologyCDS® by KEMTEK® for over 25 years.

KEMTEK®, organization committed to the R&D of Innovative Chemical Formulationsfor industrial uses with Applied Colloidal Nanotechnology CDS®, through its multi-disciplinary team of professionals in areas such as Chemistry, Industrial, Civil,Agronomist, Electrical and Mechanical Engineering, Industrial design, Architecture,Microbiology, Veterinary, IP Law, among others.

14.02.2017 - LFMG

Opportunity Concept

CDS® - COLLOIDAL DELIVERY SYSTEM® recognized & awarded as a

DISRUPTIVE APPLIED NANOTECHNOLOGY, leading itself to

DISRUPTIVE BUSINESS MAKING by KEMTEK®

• University of Texas, Austin, US – Global Investment Competition (2012)

– THIRD RUNNER UP out of 146 Competitors & SECOND PLACE in Wells Fargo CLEAN ENERGY TECHNOLOGIES Prize

• University of California, Berkeley, US - Intel Global Challenge (2012)

– FIRST PLACE in SOCIAL INNOVATION PRIZE for High-Tech (Nanotechnology) Farming Solutions for Developing Countries

CDS® Nanotechnology challenges conventional & traditional thinking on how to make

Chemical Formulations, by breaking paradigms in a wide range of industries (Agriculture,

Construction, Energy and others) in which CDS® have been applied for more than 25 years.

14.02.2017 - LFMG

Opportunity ConceptKEMTEK® is a Colombian company, worldwide leader in the development of AppliedNanotechnology, committed to the development of PRODUCTIVE ALLIANCES throughNanotechnology (CDS® - Colloidal Delivery System®) applications for the development ofagricultural, construction and energy sources projects, as well as in other industrial sectors suchas electrochemistry, textiles, leather goods, tinctures, wall paints, laundry and pharmaceuticalsector among others.

What is a CDS® - Colloidal Delivery System®?

It is a “Tailor-Made” Nanotechnology designed & developed to improve Effectiveness (Efficacy +Efficiency) of most Active Ingredients (AI) for a wide range of industries (Agrichemical AI,Construction AI, Energy AI and others), by performing as a Chemical Surface Activator –Increasing & Improving activity of (AI), thus allowing the OPPORTUNITY to:

• Increase contact area for chemical reactions to take place, applying RATIONALIZED doses (inat least 30% - 40%) of AI compared to traditional doses

• Comply or exceed project requirements while preserving environment resources & humanhealth

• Generate savings in at least 18%-20% & thus increase current project productivity in at least22%-25%

14.02.2017 - LFMG

CDS® 1st Function:PROTECTING from external variables (within the

CDS® Nano globules) different Active Ingredients (AI)

in rationalized/reduced dose rates, compared to

traditional application doses.

Polar

R- (CH2CH2)

HOOC

Non-Polar

Model of a ColloidalActive Ingredient

(AI)

14.02.2017 – LFMG

CDS® 2nd Function:

TRANSPORTING & DELIVERING

TRANSPORTING different Active Ingredients (AI)

through CDS® micelles conformation (CDS® Nano

globules specific orientation depending on the nature

of the AI to be transported).

DELIVERING to the specific site of chemical

reaction, different Active Ingredients (AI) through

CDS® micelles globular inversion, depending both on

the nature of the AI to be delivered and the nature of

the surface contact area.

14.02.2017 – LFMG

KEMTEK® CDS® 2nd Function:

TRANSPORTING

Transport in Lipophilic Medium, e.g.

humic/fulvic acids

Transport in Hydrophilic Medium,

e.g. clay/kaolinite

-

-

* = Polar active Ingredient

14.02.2017 – LFMG

Polar

Oil

Water

Hidrophilic Excess

Lipophilic Excess

Organic

Inorganic

(Organic)

(Inorganic)

Polar

No Polar

14.02.2017 - LFMG

CDS® 3rd Function:INCREASING Contact Area for Chemical Reaction of different

Active Ingredients (AI) due to the performance of CDS® as a

Chemical Surface Activator. CDS® micelles within 1cm3 of

CDS® cover a minimum total surface of ~ 600m2

* = Polar Active Ingredient

CDS ® Micelles

14.02.2017 – LFMG

CDS® Key Innovative Characteristics:

1. CDS® is ORGANIC

The CDS® Nano Globular System is obtained from 100% ORGANIC rawmaterials, thus being classified by E.P.A. (U.S.A.) as GRAS (GenerallyRecognized As Safe).

2. CDS® is TAILOR MADE and performs as a CHEMICAL SURFACEACTIVATOR

CDS® performs as a Chemical Surface Activator by increasing contact area ofreaction for different Active Ingredients (AI). Therefore CDS® has a TAILORMADE design depending on the nature of both, the AI to be transported and

the surface area in which it is to be delivered.

3. CDS® performs in the WHOLE RANGE OF HLB

CDS® works through the complete broad range of HLB (Hydrophilic–LipophilicBalance), from polar, ionic and inorganic states to non-polar, non-ionic andorganic states, and vice versa. Hence CDS® allows the transport and deliverof all kinds of AI to specific sites of action on all kind of surfaces.

14.02.2017 – LFMG

CDS® Key Innovative Characteristics:

4. CDS® INCREASES CONTACT AREA OF REACTION allowing REDUCTIONof ACTIVE INGREDIENTS

By performing as a Chemical Surface Activator, CDS® increases contact areafor chemical reaction of different Active Ingredients (AI), allowing therationalization/reduction of traditional commercial application dose rates.

5. CDS® follows NATURES CHEMICAL EQUILIBRIUMS

In nature all chemical reactions are specific and follow chemical equilibriumconstants, by which it is possible to predict and/or direct the way in which

chemical reactions take place. CDS® is TAILOR MADE designed followingspecific equilibrium constants in order to obtain the desired chemical reactions.

6. CDS® is just another expression of COLLOIDS IN NATURE

Colloids are present all across nature: blood, skin, milk, soil, are all naturalcolloids. CDS® is designed to make industrial processes come nearer to theway nature works, being an environmental and social responsible APPLIEDNANOTECHNOLOGY.

14.02.2017 - LFMG

Why is CDS® a System:

“Tailor-Made” Colloidal Structures

Hydrophilic head

Lipophilic tail

HLB = 0-20

14.02.2017 - LFMG

CDS® Business Impact: Reducing Traditional Commercial Dose Rates of AI,

thus Reducing Production Cost, Increasing

Productivity and Profits Margin while Assuring

Environment Conservation.

14.02.2017 - LFMG

FIXED

COSTS

VARIABLE

COSTS

PROFITS

MARGIN

Traditional

SystemsAlternative with CDS®

CDS® DISRUPTIVE BUSINESS STRATEGY

ADDED VALUE

Chemicals (AI)

Rationalization

Economic Savings

Productivity Increase

Lower Environmental Impact

Greater productionwith same

infrastructure

CDS® Cost

14.02.2017 – LFMG

CDS® Value Proposal: Economic Savings +

Environment Conservation + Social Progress =

SUSTAINABLE DEVELOPMENT

14.02.2017 – LFMG

Danish Agricultural Advisory Centre - Skejby Research Station. Denmark

Fachhochschule Nürtingen University, Gachhochschule Nürtingen. Germany

Institut fürUmweltgerechte Landbewirtschaftung (Institute for Environmental FriendlyAgriculture). Germany

German Horticulture Station SLFA, Neustadt. Germany

Institut für Phytomedizin Universität Hohenheim, Sttutgart. Germany

Institute of Arable Farming, PAV, Lelystad. Holland

Bulb Research Centre Lisse. Holland

Heartland Technologies Inc. Jensen Agricultural Consultants, Louisiana. USA

Cuulong Delta Rice Research Institute, Mekong Delta, S.R. Vietnam

Golden Agriculture Association, Cairo, Egypt. UAE

Anadolu Tohum Üretim ve Pazarlama A.S., Istambul. Turkey

ENM (P.T. Enviro Naga Mas) Jakarta. Indonesia

Agriculture Department, Crop Protection Sector. Malaysia

Other worldwide-recognized Agro-science and Civil Engineering Institutes in the European Community, Latin America and South East Asia as well as by the Environmental Protection Agency of the United States of America (EPA – USA).

Institutions Endorsing CDS® Nanotechnology

14.02.2017 - LFMG

CURRENT INDUSTRIAL APPLICATION SECTORS

MICROBIOLOGY

WASTE DISPOSAL

LAUNDRY

PAINTSENERGYCONSTRUCTIONAGRICHEMISTRY

PROCESSES

NEMATODES

VACCINES

DESINFECTION

PESTICIDESENTOMOPATHOGENS

FERTILIZATION

POST-HARVEST

BIO-PRODUCTS

HIGHWAYS

AND ROAD

NET

HOUSING /

HOUSE

BUILDING

PETROCHEMICAL

FUELS OR

BIO-COMBUSTIBLES

COMPRESSION

9:1

(GASOLINE)

GALVANIZATION

BATTERIES

ELECTROCHEMISTRY

CORROSION CONTROL

COMPRESSION

14:1

(DIESEL OIL)

CDS® - Colloidal Delivery System®

KEMTEK ® CDS ® AGRICULTURAL APPLICATIONS

14.02.2017 - LFMG

CDS® (KEM-KOL®)Agricultural Applications

• RATIONALIZATION VALUES: 25% to 90% less of Commercial Traditional

Doses of ag-chem and bio products (Including fertilizers), while MANTAINING

and IMPROVING Active Ingredients performance.

• REDUCTION of chemical residue levels at harvest, thus increasing harvest

value added – GREEN and ORGANIC Markets.

• Simultaneous field mixture and application of different (including non-

compatible) Active Ingredients – “ALONGSIDE BUT SEPARATED”.

• Biological products remain active (maintaining their bio-activity and bio-

availability) being storage at room temperature – NO REFRIGERATION CHAIN

NEEDED.

• SAVINGS: Production costs and time REDUCTION

• INCREASING crop productivity - Assuring at least SAME YIELD

• “GREENING EFFECT” - PHOTOSYNTHESIS: Basic Energy for life

• Recommended doses of CDS® per Ha per crop: 40 to 50 c.c. (Applied

Nanotechnology)

• LESS environmental impact – CARBON CREDITS!!!

14.02.2017 - LFMG

CDS® (KEM-KOL®)Commercial Examples – GREENING EFFECT

Pastures - NESTLÉ ( Dominican Republic)

Herbicides & Fertilizers: 100%

Traditional Commercial Dose

Traditional Pasture Ha: 1.6 lb/m2

40% RATIONALIZATION of

Herbicides & Fertilizers.

CDS® Pasture Ha: 1.95 lb/m2

INCREMENT: 0.35 lb/m2 (Equivalent

to 42 Additional Cows / Ha)

Vs.

Traditional System With CDS ®

Rice – NESTLÉ ( Dominican Republic )

Traditional Treatment (Herbicides & Fertilizers 100% ) Vs.

CDS® Treatment (RATIONALIZATION of Herbicides & Fertilizers

40%).

Traditional Production: 8,960 Kg Vs. CDS® Production: 9,600 Kg

PRODUCTION INCREASE: 640 Kg/Ha

14.02.2017 - LFMG

COFFEE CROPS (Mr. H. Dorronsoro.)

1@ Coffee = 25 lb

Traditional Treatment

Fertilizers: 100% Traditional

Commercial Dose.

Traditional Production:

125-150 @/Ha

CDS® Treatment

RATIONALIZATION of

Fertilizers: 40%

INCREMENT of Production:

400 @/Ha

REPRESENTATIVE COLOMBIAN CROPS

OIL PALM CROPS (INPARME) Applications > 14 Years

Traditional Treatment (Ag Chemicals & Fertilizers 100% ) Vs

CDS® Treatment (RATIONALIZATION of Ag Chemicals &

Fertilizers 40%).

Traditional Production: 18-20 Ton Fruit / Tree Vs

CDS® Production: 29-32 Ton Fruit / Tree

PRODUCTION INCREASE > 11 Ton Fruit / Tree

FLOWER CROPS (EL REDIL GROUP)

RATIONALIZATION of Ag-chem & Fertilizers:

30% Russian, Hungarian, Japanese Awards For

Best World Wide Flowers

Stems with CDS® > 110 cm

Traditional Post-harvest (Vase) Proof: 12 Days

Vs

CDS® Post-harvest (Vase) Proof: 25 Days

100% EXPORT FLOWERS WITH CDS ®

14.02.2017 - LFMG

CDS® (KEM-KOL®)Commercial Examples

Corn with CDS® COLOMBIA - CALDAS USA - NEBRASKA

Hidroponics with CDS®

RATIONALIZATION of

Fertilizers: 40%

RATIONALIZATION of Ag-

Chemicals: 30%

Traditional Production: 7 Ton/Ha

Production with CDS®: 11.8

Ton/Ha

GMO CORN & SOYBEAN

Treated with CDS®

RATIONALIZATIONS of

Fertilizers & Ag-Chemicals: 30%

& 40%

Same Production/Yield as In

Traditional Treatment

KEMTEK ® CDS ® ENERGY SOURCES APPLICATIONS

14.02.2017 - LFMG

• IMPROVEMENT of crude oil and petroleum physical properties FACILITATING and OPTIMIZING extraction, transport and treatments WITHOUT altering its chemical properties.

• CDS® allows fluidity INCREASE & REDUCTION of crude oil friction (resistance to move, not viscosity), thus diminishing or even REPLACING expensive chemical products and heating treatments .

• INCREASE of the oil well RECOVERY FACTOR (from 70 Barrels/t to 180 Barrels/t with 0% Chemical Treatment).

• RECOVERY of death oil wells by CDS® enhancing oil recovery (EOR improvement: C-EOR®) - BRINGING DEATH FIELDS BACK TO LIFE.

• SAVINGS: Crude oil extraction/treatments costs, time & facilities reduction.

• REPLACING significant proportions of gasoline/diesel oil BY WATER plus CDS® in combustion engines.

• LESS contamination by REDUCTION of gas exhausting/emissions

• NEW ENERGY GENERATION at lower costs and lower environmental impact by RATIONALIZATION in use of combustibles, chemical products & heating processes

• Recommended doses of CDS® per Barrel: 30 to 50 ppm (Applied Nanotechnology)

CDS® Energy Sector Applications

(KOL-OIL® & SLINK-OIL®)

14.02.2017 – LFMG

• Weatherford

• Baker-Hugues

• ECA

• Dyprotec

• Halliburton

• F&S

• Clariant

• Oil Flow Solution

• Schlumberger - Swaco

vs. KEMTEK®

• Traditional Treated Crude Oil: • Crude Oil Treated with CDS®:

CDS® (KOL-OIL® & SLINK-OIL®) Commercial Examples “BEST IN CLASS” Results

CONSTRUCTION APPLICATIONS

KEMTEK ® CDS ®

27.02.2014 - LFMG

• REDUCTION and RATIONALIZATION in the use of cement, quarry materials and other construction raw materials - LESS environmental impact!

• REPLACING these by native soils – IN SITU CONSTRUCTION of roads, highways, housing, urbanism, among others.

• SAVINGS: Construction costs, time & facilities reduction.

• Construction projects development and execution REGARDLESS of ADVERSE climatic conditions.

• STABILIZATION of bases and sub-bases with different types of native soils (organic, clays, mud, contaminated granular fills, sea sand, and others) adding reduced amount of cement or INCLUSIVE WITHOUT adding it.

• CDS® is GRAS by EPA-US (Generally Recognized As Safe) - CDS® is BIODEGRADABLE

• CDS® does NOT form part of the stabilized structures, does NOT degrade and does NOT generate erosion.

• REDUCTION > 50% of the design thickness of layers to be treated compared with traditional design thickness - Pavement thickness drastically REDUCED whether asphalt or concrete.

• Recommended CDS® dose per m3 of compacted soil: 200 g (Applied Nanotechnology)

CDS® (STASOIL®)Construction Applications

14.02.2017 - LFMG

CDS® (STASOIL®) Commercial ExamplesBEFORE

AFTER

Rubble + Sludge + Organic Matter.

Adverse

Climatic

Conditions

Dose/m3:

40% Less Cement + 200g CDS®

Bearing Capacity > 28 Kg/cm2

Stabilized Native Soil With CDS®

CDS® Pool without Tiles

(waterproofed soil) (CDS® blue paint)

Agricultural Soil (Organic Matter)

Facilities Stabilized With CDS®

(Airstrip + Hotel)

14.02.2017 - LFMG

KEMTEK CDS® (STASOIL®) Commercial Examples

Sea Sand + Sea Water + CDS®

1. 2. 3.

Dock Construction With CDS® Sapzurro’s Dock (Choco-Colombia)

Urbanism with CDS®

(Roads & Housing)CDS® Construction WITHOUT

Cement

40% Less Cement

1.

Colombian Official

Published Document

(2005)

“Guide For The

Design & Construction

in Highways

Stabilization with

CDS®”

Pontificia Universidad

Javeriana, IDU &

INVIAS

14.02.2017 - LFMG

CDS® (STASOIL®) Commercial Examples

Vs.

Lamp Post (FLEXIBLE RIGID when Treated with CDS®)

Traditional Lamp Post CDS® Lamp Post

Cement: 100% TraditionalComercial Dose

Deflection: 57 cm & Failure/Rupture

Cement Rationalization: 40%

Deflection: 109 cm & Returns to Original Position without Failure

14.02.2017 - LFMG

• RATIONALIZATION between 30%-40% in the use of cement compared to traditionalrecommended cement quantities.

• REPLACING these by native soils, cellulose material and contaminated sludge fromthe diaper and paper industry (Kimberly Clark) located in Caloto town, municipalityof Cauca, Colombia – LESS environmental impact!

• Development and incorporation of new and innovative construction materials, as aresult of applying CDS® Nanotechnology to existing conventional materials such ascement, mixed in reduced proportions with non-conventional materials, such ascellulose material and contaminated sludge from the diaper and paper industry.

• Innovation through all the construction process by applying “Tailor-Made” CDS® for:

• Soil stabilization and land plot foundation laying

• Conformation and finishes in ramps, walls and rooftops building

• Waterproofing and Thermal Insulation from the environment

• IN SITU CONSTRUCTION – LESS structural weight without loosing bearing capacity.

• Loads distribution among the whole structure allows LESS columns, hence aGREATER span.

• SAVINGS: Construction costs, time & materials reduction.

CDS® HOUSE CONSTRUCTION“Colloidal House” in La Calera - Colombia

14.02.2017 - LFMG

“Colloidal House” in La Calera – Colombia

The final result…

Astonishing and innovative infrastructure and façade of this “Colloidal House” as a result of aninterdisciplinary PRODUCTIVE ALLIANCE between KEMTEK® and the Industrial Designer SERGIOSTEVENSON who executed the architectural and interior design, building the house with CDS® -Colloidal Delivery System® Nanotechnology, “Tailor-Made” designed, developed and formulatedby KEMTEK®, thus allowing the development of new and innovative construction materials.

14.02.2017 - LFMG

COLLOIDAL HOUSEBLUEPRINT FAÇADE & REAR FACADE

14.02.2017 - LFMG

COLLOIDAL HOUSEBLUEPRINT

14.02.2017 - LFMG

COLLOIDAL HOUSEMOCK-UP

TOP VIEW

SIDE VIEW

14.02.2017 - LFMG

COLLOIDAL HOUSEUNDER CONSTRUCTION

14.02.2017 - LFMG

COLLOIDAL HOUSEINTERIOR DESIGN (Wide span)

14.02.2017 - LFMG

COLLOIDAL HOUSEINTERIOR DESING

KITCHEN

2ND FLOOR HALLWAY , LIGHT TREATMENT.

CONTACT INFORMATIONFurther additional information related to CDS® APPLIED NANOTECHNOLOGY’s Field Trials,Commercial Applications, Research, Field Commercial Results, Academic Reports, ResearchInstitutes, Media Publications, and other,

KEMTEK® S.A.S.Bogotá – COLOMBIA

(57-1) 6168122

gerencia.general@kemtek.co - gerencia.comercial@kemtek.cowww.kemtek.co