Ionic Water Technologies, Inc.

Products and Services

August 2008 www.iwtechnologies.com

RCTS™

CONFIDENTIALITY PROPRIETARY INFORMATION NOTICE

All information delivered in this presentation relating to the Rotating Cylinder Treatment System (“RCTS”), US Patent No. 7,011,745 is patented technology proprietary to Ionic Water Technologies, Inc. The presentation’s content related to IWT’s technologies shall not be used for any purpose by any recipient or viewer hereof without the express written consent of Ionic Water Technologies, Inc.

The ProblemThe ProblemUnique ChallengesUnique Challenges AMD RemediationAMD Remediation

• Funding

o Unlimited Resources are available for the project

The ProblemThe ProblemUnique ChallengesUnique Challenges AMD RemediationAMD Remediation

• Technologyo The right solution is easy to find

• Designo The design process is always simple and painless

The ProblemThe ProblemUnique ChallengesUnique Challenges AMD RemediationAMD Remediation

• Implementationo Everything is on schedule and under budget

o Operation and Maintenance costs are always less than expected

The ProblemThe ProblemUnique ChallengesUnique Challenges AMD RemediationAMD Remediation

• Resultso The treatment system always operates better than expected

Simple SolutionsSimple SolutionsCost Effective, Efficient, Cost Effective, Efficient,

SustainableSustainable

IWT’s Primary AMD PortfolioIWT’s Primary AMD Portfolio

• Permanganate Passivation – Exclusive provider Permanganate Passivation – Exclusive provider of the patented Passivation technology for of the patented Passivation technology for AMD prevention and passivationAMD prevention and passivation

• Sustainable Bioreactors – Expert design of Sustainable Bioreactors – Expert design of sustainable sulfate reducing bioreactor systems sustainable sulfate reducing bioreactor systems

• RCTSRCTS™ - Rotating Cylinder Treatment System™ ™ - Rotating Cylinder Treatment System™ IWT manufactures the patented system for use IWT manufactures the patented system for use in treatment systemsin treatment systems

The Core BusinessThe Core BusinessIWT SolutionsIWT Solutions

The Technologies The Technologies Permanganate Permanganate PassivationPassivation

Exclusive Provider

IWT is the exclusive supplier IWT is the exclusive supplier of the University of Nevada of the University of Nevada Reno’s patented Potassium Reno’s patented Potassium Permanganate Passivation Permanganate Passivation Technology developed by Technology developed by DuPont Chemical.DuPont Chemical.

AMD Prevention & Passivation

Insignificant Chemical Costs

Simple Application

Can you afford not to?

The Technologies The Technologies Sustainable Bioreactor DesignSustainable Bioreactor Design

Sustainable•Semi-Passive Design - Limited Labor•Metals Removed Outside Bioreactor•Eliminates Short-Circuiting, Plugging•No Carbon Source Depletion•Reduced Long Term Cost

The Technologies The Technologies

•Superior Aeration •Superior Mixing•Less Energy •Less Labor and Maintenance•Less Capital Cost•A Better Lime Precipitation System

RCTS™

1.1. Site Specific Project Assessment Site Specific Project Assessment

2.2. Best Treatment Method EvaluationBest Treatment Method Evaluation

3.3. Conceptual, Draft, and Final DesignConceptual, Draft, and Final Design

4.4. Construction, Operation, MaintenanceConstruction, Operation, Maintenance

5.5. Support ServicesSupport Services

ServicesServicesSimple SolutionsSimple Solutions

Rotating Cylinder Treatment SystemRotating Cylinder Treatment System™™

A Simple SolutionA Simple Solution

RCTS™

Traditional Lime Treatment

Add lime (CaO) or Ca(OH)2 to raise the pH Precipitate metals as hydroxides Precipitate sulfate as gypsum Requires oxygen addition if there is significant

dissolved iron, manganese Oxygen addition is typically accomplished with

large compressors and air diffusers and tanks Lime addition requires thorough mixing due to it’s

low solubility and slow dissolution rate.

Mixing is typically accomplished with large mixers insidereaction tanks

Labor and energy demanding

RCTS™

RCTS™ Concept

Rotating cylinders add oxygen from the atmosphere to the water

Water clings to the inner and outer surfaces of the rotating cylinder promoting thin film transfer of oxygen

Perforations infuse fine air bubbles and provide aggressive mixing in the containment cell.

System residence time is controlled through flow

RCTS™

Hecla Grouse Creek Video of System

RCTS™

Hecla Grouse Creek Video of System

RCTS™

Energy Efficient Energy Efficient Aeration and Mixing in a Single Stage ProcessAeration and Mixing in a Single Stage Process Precipitates Metals at a Lower pHPrecipitates Metals at a Lower pH Increased Lime EfficiencyIncreased Lime Efficiency Decreased Sludge ProductionDecreased Sludge Production Simple ConstructionSimple Construction Ease of Operation and MaintenanceEase of Operation and Maintenance

RCTS™ - System Advantages

RCTS™

RCTS™ 4 Rotor System – The Beginning

Low Speed System Low Speed System Designed for Highly Designed for Highly

Concentrated Water Concentrated Water Extended AerationExtended Aeration Metal Precipitation is Metal Precipitation is

visual in the low visual in the low speed 4 rotor systemspeed 4 rotor system

RCTS™

RCTS-4 Rotor™ Rio Tinto Mine

Fe2+ concentrations 6,000 mg/l to 8,000 mg/L.

Acidity was in excess of 20,000 mg/l.

Treating 10 to 20 gpm.

Treating 24 hours/day

RCTS™

Improved Oxygen Addition – Rio Tinto System

O2 = Qw x Fe x 7.14 x 10 -5O2 = Theoretical O2 demand (lb O2/hr)

Qw = Acid mine drainage flow rate (gal/min)Fe = Fe 2+ initial concentration (mg/L)

U.S. Environmental Protection Agency (USEPA). 1983. Design Manual: Neutralization of Acid Mine Drainage. EPA-600/2-83-001.

Type of Aeration Pounds of O2 delivered per

horsepower-hour

Mechanical surface aeration 3.0-3.5

Submerged turbine aerators utilizing dual impeller turbines

2.5-3.0

RCTS 600 gallon four rotor 9.0

Provides more oxygen per energy consumed than conventional systems

RCTS™

Iron Hydroxide Solubility with Respect to pH

pH vs. Total Iron Solubility Diagram for Ferrous and Ferric Hydroxide

Precipitation.

Note the Minimum Solubility for Manganese Precipitation is Between pH 9 and

10.

(Taken from USEPA 1983).

RCTS™

RCTS-30HS™ - Leviathan Emergency30” High Speed System Plowed the road April 9 and let the

road dry, delivered lime. Mobilized the entire treatment

system on April 13 Started treating on April 14 and

by 10 am April 15 the average pH of the pond was 8.4.

Treated 24 hours/day with 2 man crew onsite an average of 4.6 hours/day

Met USEPA directives Treated and actively discharged

~7.5 million gallons of water containing iron as high as 610 mg/L and aluminum as high as 490 mg/L.

Removed ~ 180 m3 of sludge from the lined pond in 2 days

RCTS™

RCTS-60HS™ - Sterling Sunshine Mine Manganese Removal ~ 20mgLManganese Removal ~ 20mgL

230 gpm –Results less than .003 mgL 230 gpm –Results less than .003 mgL 460 gpm - Results less than .010 mgL 460 gpm - Results less than .010 mgL

RCTS™

Dual 5 HP Drives Dual 5 HP Drives Operates on 5000 Operates on 5000

Watts of Electricity Watts of Electricity TotalTotal

Motor, Drive, Motor, Drive, CouplingCoupling

RCTS-60HS™ - Drive60” High Speed System

RCTS™

Dual 60” Diameter Dual 60” Diameter RotorsRotors

43 RPM Produces 10,000 43 RPM Produces 10,000 ftft2 2 of Surface Area Per of Surface Area Per MinuteMinute

15 Acres of Surface Area 15 Acres of Surface Area per Hourper Hour

30,000 perforations for 30,000 perforations for lime mixing and aerationlime mixing and aeration

RCTS-60HS™ - Rotor60” High Speed System

RCTS™

Effluent – 6” Female PVC Slip fitInfluent – (2) 3” Female Pipe Thread

RCTS-60HS™ - Containment60” High Speed System

600 Gallon Operating Capacity

RCTS™

RCTS – 60HS

Batch Treatment Pond

LimeDelivery

Influent

Pond Recirc.

Discharge

Simple Batch Treatment Schematic

RCTS™

PortablePortable Small FootprintSmall Footprint Immediate ResponseImmediate Response

RCTS™Emergency Mobilization

RCTS™

ScalableScalable FlexibleFlexible Efficiency Upgrade to Efficiency Upgrade to

Reduce Labor, Lime, Reduce Labor, Lime, EnergyEnergy

RCTS™Permanent Systems

RCTS™

RCTS™ Lime Delivery Systems

Quicklime Grinder Quicklime Grinder PumpPump

o Silo Feed Direct to Silo Feed Direct to RCTSRCTS

o Replaces Lime SlakersReplaces Lime Slakers

Slurry Delivery PumpSlurry Delivery Pumpo Eliminates Clogging Eliminates Clogging

RCTS™

Direct lime feed to Direct lime feed to Grinder pumpGrinder pump

Semi Permanent system Semi Permanent system Operates 24 hours a day Operates 24 hours a day from April to Octoberfrom April to October

Effective treatment range Effective treatment range from pH 6.5 to 10.5from pH 6.5 to 10.5

Influent Iron removal from Influent Iron removal from 800 mg/L to less than 800 mg/L to less than 1mg/L1mg/L

Elizabeth Mine, VermontRCTS™Direct Silo Feed

RCTS™

Lime mixed with Lime mixed with water directly into water directly into grinder pumpgrinder pump

Lime is mixed and Lime is mixed and circulated in small circulated in small mixing tankmixing tank

The mixture flows The mixture flows directly into the directly into the RCTSRCTSTMTM Unit Unit

Presently operating Presently operating around the clock with around the clock with three two hour visit a three two hour visit a weekweek

Elizabeth Mine, VermontRCTS™Direct Silo Feed

RCTS™

RCTS-60HS™ Basic System Capital Costs*

RCTS™

RCTS-60HSRCTS-60HS™™ $75,000.00$75,000.00

Dosing TankDosing Tank $10,000.00$10,000.00

Slurry Storage Slurry Storage TanksTanks

$10,000.00$10,000.00

Lime Delivery PumpLime Delivery Pump $7,500.00$7,500.00

Electrical/ControlsElectrical/Controls $12,500.00$12,500.00

Total - $115,000.00* Flow rate of 1 to 600 gpm per RCTS unit depending on influent water chemistry

ConclusionsConclusionsEnergy EfficientEnergy Efficient: More Oxygen Per HP : More Oxygen Per HP

DeliveredDeliveredMinimalMinimal Labor, Maintenance & Downtime Labor, Maintenance & DowntimeEasily MobilizedEasily Mobilized For Emergency Treatment For Emergency TreatmentSuperiorSuperior Chemical Consumption & Use Chemical Consumption & UseExpandableExpandable To Meet Treatment Demands To Meet Treatment DemandsSmall FootprintSmall Footprint: Can Access Remote Sites: Can Access Remote SitesPortable To PermanentPortable To Permanent Installations InstallationsAttainableAttainable: Lower Capital Investment: Lower Capital Investment

RCTS™

Past & Present Past & Present CustomersCustomers

Atlantic Richfield (ARCO)Atlantic Richfield (ARCO)Bureau of Land Management Bureau of Land Management

Environmental Protection AgencyEnvironmental Protection AgencyU.S. Forest ServiceU.S. Forest Service

HECLA Mining Company (HECLA Mining Company (pilot demonstration 2008)pilot demonstration 2008)Newmont Gold Company (Newmont Gold Company (commencing Fall 2008)commencing Fall 2008)

Rio Tinto Working Group (Rio Tinto Working Group (Nevada, USA)Nevada, USA)State of California (State of California (Sierra Nevada's, California)Sierra Nevada's, California)

Sterling Mining Company (Sterling Mining Company (Sunshine Mine Idaho, USA)Sunshine Mine Idaho, USA)Ralston Foods (Ralston Foods (Reno, Nevada)Reno, Nevada)

Weston Engineering Weston Engineering (Elizabeth Mine-Vermont)(Elizabeth Mine-Vermont)

RCTS™