Chase Houston Confidential November 2013

Nevada - Lithium Ion Battery Manufacturing

Vision

● This is a two part plan: the identification of a qualified lithium ion mining company to mine lithium

reserves located in Nevada. Use of a carbon dioxide sequestration operation to offset mining costs.

Second, establish a lithium ion battery manufacturing, assembly, and recycling plant in Reno, NV.

● The supply of Lithium Ion Cells is crippling manufacturing for large North American Electric Vehicle

Companies like Tesla Motors located in Fremont, CA. The utilization of a local lithium ion mining and

cell manufacture will relieve the supply chain costs to North American and assist with the lack of

lithium ion cell procurement.

Product Background

● Panasonic Corporation and Tesla Motors announced on 10/30/13 that the two companies have

reached an agreement in which Panasonic will expand its supply of automotive-grade lithium-ion

battery cells to Tesla. With this agreement, Panasonic will now supply nearly 2 billion cells over the

course of four years. Right now, Tesla is building more than 400 cars per week. In July, CEO Elon Musk

said he plans to crank that up to 800 per week in late 2014. That's about 41,000 per year.

● While the battery cells are similar to those used in laptops and game consoles, Tesla's are specifically

designed for electric vehicles and were jointly developed by Tesla and Panasonic. Tesla buys The

Panasonic NRC 18650A 3.1Ah Rechargeable Li-ion Batteries.

● Develop a strategic partnership with Pathion Inc. to produce 18650 batteries on their behalf.

Examples Future Lithium Ion Battery outlook use

● The U.S. currently imports more than 80% of the lithium it uses. Electric Car batteries need about 100

times as much lithium as the lithium-ion batteries that power laptop computers. Each EV uses

approximately fifty (50) pounds of lithium carbonate; hybrids use approximately 20 pounds. Lithium

demand is forecast by Roskill (leading industry analyst) to grow 8% annually through 2017.

● If Tesla meets its goal of shipping 40,000 Model S units in 2014 and if the 85-kWh battery proves as

popular overseas as it has in the U.S., by next year the Model S alone will soak up almost 40 percent

of global cylindrical lithium ion battery production.

More Background: CO2 Sequester Process:

● Carbon Capture and Sequestration is the process of capturing waste carbon dioxide from large point

sources, such as fossil fuel power plants, transporting it to a storage site, and depositing it where it

will not enter the atmosphere, normally an underground geological formation.

● The U.S. government currently provides a tax credit of $20 per ton of CO2 captured and sequestered

Chase Houston Confidential November 2013

Strategic Partnerships:

● Pathion, Inc. - is an energy solutions company, headquartered in Los Gatos, CA, created to research,

develop and commercialize products utilizing its proprietary Advanced Energy Cell (AEC) technologies.

Pathion’s AEC is based upon certain advanced materials developed at, and obtained from, the

esteemed Los Alamos National Laboratory (Los Alamos). Under the terms of its License Agreement,

Pathion has joint ownership of the underlying research and the exclusive rights for the commercial

development, manufacture, use and sale of the technology and advanced materials. Pathion is thus

uniquely positioned to provide critical power technology for a broad array of devices that improves

the energy density, output, longevity, thermal threshold and stability of traditional lithium batteries.

o September 09, 2013 – Pathion Inc. is working with GeoXplor Corp. (a Nevada corporation) to

acquire 100% of the interests in certain lithium brine properties from GeoXplor located in

Clayton Valley, Nevada and adjacent areas. In exchange for the interests in the mining assets,

Pathion will name GeoXplor its operator and must also meet certain development milestones

and pay GeoXplor royalties on the sale of lithium from the properties.

● Mr. Liddle - President and CEO of Pathion, Inc., an advanced energy storage technology company

based in Los Gatos, California USA. Mr. Liddle is also a founding member and Managing Director of

Evergreen Transaction Partners, LLC ("Evergreen"), an advisory firm that provides venture capital

fund-raising and strategic partnership services to emerging innovation companies and development

projects. Leveraging over 10 years of success as a Managing Partner of Emerging Technology Partners,

Mr. Liddle has advised and raised capital for more than 120 early stage technology companies, the

majority of which has completed either a successful public offering, or a profitable sale.