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CARE ELECTRIC ENERGIA LTDA. - SMALL HYDRO-ELECTRIC PLANTS                                           1




                            CARE – Clean and Renewable Energy




     Technological innovation in electric energy generation



                                  Information Report


                                           March 2, 2012




          Av. Olegário Maciel 414, sl 202, Barra da Tijuca, Rio de Janeiro, RJ 22.621-200, Brazil
             Tels: (55-21) 2410-3108 / 9829-6386 / 2491-7062       frank@careelectric.com.br
Important Notice
                                                                                                     2
The purpose of this material is to provide information on the
hydro-electric plant, developed by Care Electric Energia Ltda.
This information shall be held confidential, and is not to be lent,
given or used by any party other than the original recipient.




Summary

Care Electric Energia Ltda., is a Brazilian company whose main
activity is to develop and market innovative and ecological
solutions for energy sources and associated fields. The company
has developed and owns patents to environmental friendly
technologies that are economic and profitable source of energy.

In a world where companies are expected to develop ever more
efficient, clean and sustainable technologies, CARE ELECTRIC has
made it its prime objective to strive for such goals.



In the following pages a description of the CARE technology will
be shown to potential interested parties.




           Av. Olegário Maciel 414, sl 202, Barra da Tijuca, Rio de Janeiro, RJ 22.621-200, Brazil
              Tels: (55-21) 2410-3108 / 9829-6386 / 2491-7062       frank@careelectric.com.br
CARE Unit

A functioning Care facility, anchored on both banks of a river, with
                                                                                                      3
water flowing while energy is being generated. Depending on the
characteristics of the river more units can be placed downstream
allowing for greater energy generation capacity.




CARE ELECRTIC unit adapted for a typical river environment. The
CARE concept envisions the adaptability of the solution to
different situations.




            Av. Olegário Maciel 414, sl 202, Barra da Tijuca, Rio de Janeiro, RJ 22.621-200, Brazil
               Tels: (55-21) 2410-3108 / 9829-6386 / 2491-7062       frank@careelectric.com.br
Creativity and Innovation

CARE’s innovative solutions to can be ideal for rural communities,
farms, factories, mining sites, oil extraction, as well as other small                                4

or large commercial activities, or just for the environmental
concerned individuals bring a series of advantages, some of which
are listed below:

   no need to divert the river or water flow or flood any land
    with considerable savings

   it is based on the conception on modulus which allow for
    different installation combinations

   the installed capacity depends on the local river conditions
    and the water flow measured in m³ / s

   units can be installed close to consumption point in out of
    the way villages and sites or it can be connected to energy
    power grids

   no need for heavy construction, with foundations inserted
    into the river bed and secured on both banks


CARE’s experimental unit, has undergone rigorous testing
conducted by experts in this area at the prestigious CEFET-MG,
(University of Minas Gerais Electric Engineering Department)
which were very impressed with its technological innovations and
ease to assemble. The modular concept allows it to be adapted to
various sites, and among its prime advantages is that of a very low
installation cost.



            Av. Olegário Maciel 414, sl 202, Barra da Tijuca, Rio de Janeiro, RJ 22.621-200, Brazil
               Tels: (55-21) 2410-3108 / 9829-6386 / 2491-7062       frank@careelectric.com.br
Technology

The incomparable environmental friendly aspects create a niche
                                                                                                      5
of its own. Care strives to continually search for efficient and clean
energies, having invested and researched what has become truly
viable option. The CEFET MG team stated, when comparing Care’s
technology with solar energy as “a world encompassing revolution
in the generation of electric energy.”

A unique aspect of Care’s technology is in regard to the ratio of
installed capacity vis-à-vis energy actually generated installed
capacity and generated energy. This is an aspect usually
overlooked when searching for energy sources. CARE has taken
this concept to another level, allowing the user of its technology
the benefit of achieving higher efficiency in energy yields.
Normally, there is a 55% correlation between these two concepts
when analyzing hydro-electric power, and Care’s is so much
higher, yielding a 90% correlation. The efficiency of energy
harvested and the continuous use of the unit throughout the year
will undoubtedly bring enormous savings as well as the potential
to sell excess energy needs to third parties, allowing for the
amortization of the project in a reduced time frame.




            Av. Olegário Maciel 414, sl 202, Barra da Tijuca, Rio de Janeiro, RJ 22.621-200, Brazil
               Tels: (55-21) 2410-3108 / 9829-6386 / 2491-7062       frank@careelectric.com.br
On the operational aspect of Care’s hydroelectric plant has some
truly measurable points, which sets it apart, namely:                                                6



   The units are controlled and operated by satellite
    eliminating the necessity of an on the site staff.

   The time between design, fabrication, assembly and startup
    of a facility, depending on the desired power is close to 12
    months. This time will be even shorter with the optimization
    of the manufacturing process which implies the manufacture
    of units when assembly line production is developed.

   The installation does not flood any land, therefore
    expropriation and relocation of river side residents and the
    cost implicit in saving or reallocating flora and fauna and
    agricultural activities does not exist.

   The flow of the river and its bed remains unchanged.

   The CARE ELECTRIC technology does not require the use of
    grids or fences, so it does not retain the material in constant
    motion of the river bed which results in the ecological
    protection down river. This also avoids shut down time for
    cleaning.

   More than one unit can be installed along the same river,
     increasing the energy potential of the region as well making
     more economical the connection to a distribution net.




           Av. Olegário Maciel 414, sl 202, Barra da Tijuca, Rio de Janeiro, RJ 22.621-200, Brazil
              Tels: (55-21) 2410-3108 / 9829-6386 / 2491-7062       frank@careelectric.com.br
Economic Annual Comparison between 3 mW - PCH vs. CARE
                                                                                   PCH                        CARE
                                                       1
           Installation Capacity in mW                                            25074                       25074
      Percentage Effective Generated Energy                                        55%                         95%
                                                                                                                          7
         Effective Generated Energy in mW                                      13.790,70                     23.820,30
          Price of mW in R$ in MG (Brasil)                                      159,90                        159,90
             Revenue for sale of energy                                      2.205.132,93                  3.808.865,97

     1
Note: 3 units continuously working for 24 hours for 350 days a year
Obs: The estimated cost of a 1 mW unit is of R$ 5.5 million.


CARE’s technology has outstanding features, and complies with
today’s needs and concerns. When compared with Small
Hydroelectric Plants (PCH in Brazil), CARE’s output is far greater,
since the Installed Capacity is so close to Effective Generated
Energy, thus it outperforms any other hydro-electric generating
technology.

This technology is based on the idea that development, well-being
and the pursuit of a better life are not incompatible with caring
for the environment and preserving it.

Environmentally Friendly




Safe and easy passage for migrating fish


                 Av. Olegário Maciel 414, sl 202, Barra da Tijuca, Rio de Janeiro, RJ 22.621-200, Brazil
                    Tels: (55-21) 2410-3108 / 9829-6386 / 2491-7062       frank@careelectric.com.br
Awards and International Recognition

CARE was selected by the World Economic Forum, Davos as a
                                                                                                          8
Technology Pioneer ranked 4th in Energy and Environmental
Technologies in a selection done in 2010, it is the only South
American company ever selected as a Technology Pioneer. CARE
also was selected to participate in the CIETEC Program of the
University of São Paulo.



CARE in the media

CARE’s technological breakthrough has been the subject of
reporting and exposure in several media outlets, including:
World Economic Forum in Davos, Switzerland - www.youtube.com/watch?v=tl8OqToPoDU

CNN En Español - www.youtube.com/watch?v=SEaxPb357YE

BusinessWeek - www.businessweek.com/globalbiz/content/dec2009/gb2009127_163138.htm

International Water Power & Dam Construction, October 2010

Revista Harvard Business Review Edição Brasil, Sept 2010

Isto é Dinheiro - www.istoedinheiro.com.br/noticias/6075_ENERGIA+SEM+BARREIRAS

Pequenas Empresas Grandes Negócios -
http://revistapegn.globo.com/Revista/Common/0,,EMI113986-17171,00-
ELES+CHEGARAM+AO+TOPO+E+PROMETEM+MUDAR+O+MUNDO.html

http://smartgridnews.com.br/a-nova-tecnologia-da-care-electric-para-hidreletricidade/

http://www.analiseempresarial.com/blog/tag/care-electric/

Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP) - www.bv.fapesp.br

CIETEC of the University of São Paulo - http://www.cietec.org.br/index.php?id1=30&id2=1436




                Av. Olegário Maciel 414, sl 202, Barra da Tijuca, Rio de Janeiro, RJ 22.621-200, Brazil
                   Tels: (55-21) 2410-3108 / 9829-6386 / 2491-7062       frank@careelectric.com.br
9




                    For inquiries please contact Frank de Luca.
                                            frank@careelectric.com.br

                                     www.careelectric.com.br

                           Tel: (55 21) 2410-3108 / 2491-7062

                                       Cel: (55 21) 9829-6386




Information Memorandum 02 03 2012




                   Av. Olegário Maciel 414, sl 202, Barra da Tijuca, Rio de Janeiro, RJ 22.621-200, Brazil
                      Tels: (55-21) 2410-3108 / 9829-6386 / 2491-7062       frank@careelectric.com.br

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Information memorandum 02 03 2012

  • 1. CARE ELECTRIC ENERGIA LTDA. - SMALL HYDRO-ELECTRIC PLANTS 1 CARE – Clean and Renewable Energy Technological innovation in electric energy generation Information Report March 2, 2012 Av. Olegário Maciel 414, sl 202, Barra da Tijuca, Rio de Janeiro, RJ 22.621-200, Brazil Tels: (55-21) 2410-3108 / 9829-6386 / 2491-7062 frank@careelectric.com.br
  • 2. Important Notice 2 The purpose of this material is to provide information on the hydro-electric plant, developed by Care Electric Energia Ltda. This information shall be held confidential, and is not to be lent, given or used by any party other than the original recipient. Summary Care Electric Energia Ltda., is a Brazilian company whose main activity is to develop and market innovative and ecological solutions for energy sources and associated fields. The company has developed and owns patents to environmental friendly technologies that are economic and profitable source of energy. In a world where companies are expected to develop ever more efficient, clean and sustainable technologies, CARE ELECTRIC has made it its prime objective to strive for such goals. In the following pages a description of the CARE technology will be shown to potential interested parties. Av. Olegário Maciel 414, sl 202, Barra da Tijuca, Rio de Janeiro, RJ 22.621-200, Brazil Tels: (55-21) 2410-3108 / 9829-6386 / 2491-7062 frank@careelectric.com.br
  • 3. CARE Unit A functioning Care facility, anchored on both banks of a river, with 3 water flowing while energy is being generated. Depending on the characteristics of the river more units can be placed downstream allowing for greater energy generation capacity. CARE ELECRTIC unit adapted for a typical river environment. The CARE concept envisions the adaptability of the solution to different situations. Av. Olegário Maciel 414, sl 202, Barra da Tijuca, Rio de Janeiro, RJ 22.621-200, Brazil Tels: (55-21) 2410-3108 / 9829-6386 / 2491-7062 frank@careelectric.com.br
  • 4. Creativity and Innovation CARE’s innovative solutions to can be ideal for rural communities, farms, factories, mining sites, oil extraction, as well as other small 4 or large commercial activities, or just for the environmental concerned individuals bring a series of advantages, some of which are listed below:  no need to divert the river or water flow or flood any land with considerable savings  it is based on the conception on modulus which allow for different installation combinations  the installed capacity depends on the local river conditions and the water flow measured in m³ / s  units can be installed close to consumption point in out of the way villages and sites or it can be connected to energy power grids  no need for heavy construction, with foundations inserted into the river bed and secured on both banks CARE’s experimental unit, has undergone rigorous testing conducted by experts in this area at the prestigious CEFET-MG, (University of Minas Gerais Electric Engineering Department) which were very impressed with its technological innovations and ease to assemble. The modular concept allows it to be adapted to various sites, and among its prime advantages is that of a very low installation cost. Av. Olegário Maciel 414, sl 202, Barra da Tijuca, Rio de Janeiro, RJ 22.621-200, Brazil Tels: (55-21) 2410-3108 / 9829-6386 / 2491-7062 frank@careelectric.com.br
  • 5. Technology The incomparable environmental friendly aspects create a niche 5 of its own. Care strives to continually search for efficient and clean energies, having invested and researched what has become truly viable option. The CEFET MG team stated, when comparing Care’s technology with solar energy as “a world encompassing revolution in the generation of electric energy.” A unique aspect of Care’s technology is in regard to the ratio of installed capacity vis-à-vis energy actually generated installed capacity and generated energy. This is an aspect usually overlooked when searching for energy sources. CARE has taken this concept to another level, allowing the user of its technology the benefit of achieving higher efficiency in energy yields. Normally, there is a 55% correlation between these two concepts when analyzing hydro-electric power, and Care’s is so much higher, yielding a 90% correlation. The efficiency of energy harvested and the continuous use of the unit throughout the year will undoubtedly bring enormous savings as well as the potential to sell excess energy needs to third parties, allowing for the amortization of the project in a reduced time frame. Av. Olegário Maciel 414, sl 202, Barra da Tijuca, Rio de Janeiro, RJ 22.621-200, Brazil Tels: (55-21) 2410-3108 / 9829-6386 / 2491-7062 frank@careelectric.com.br
  • 6. On the operational aspect of Care’s hydroelectric plant has some truly measurable points, which sets it apart, namely: 6  The units are controlled and operated by satellite eliminating the necessity of an on the site staff.  The time between design, fabrication, assembly and startup of a facility, depending on the desired power is close to 12 months. This time will be even shorter with the optimization of the manufacturing process which implies the manufacture of units when assembly line production is developed.  The installation does not flood any land, therefore expropriation and relocation of river side residents and the cost implicit in saving or reallocating flora and fauna and agricultural activities does not exist.  The flow of the river and its bed remains unchanged.  The CARE ELECTRIC technology does not require the use of grids or fences, so it does not retain the material in constant motion of the river bed which results in the ecological protection down river. This also avoids shut down time for cleaning.  More than one unit can be installed along the same river, increasing the energy potential of the region as well making more economical the connection to a distribution net. Av. Olegário Maciel 414, sl 202, Barra da Tijuca, Rio de Janeiro, RJ 22.621-200, Brazil Tels: (55-21) 2410-3108 / 9829-6386 / 2491-7062 frank@careelectric.com.br
  • 7. Economic Annual Comparison between 3 mW - PCH vs. CARE PCH CARE 1 Installation Capacity in mW 25074 25074 Percentage Effective Generated Energy 55% 95% 7 Effective Generated Energy in mW 13.790,70 23.820,30 Price of mW in R$ in MG (Brasil) 159,90 159,90 Revenue for sale of energy 2.205.132,93 3.808.865,97 1 Note: 3 units continuously working for 24 hours for 350 days a year Obs: The estimated cost of a 1 mW unit is of R$ 5.5 million. CARE’s technology has outstanding features, and complies with today’s needs and concerns. When compared with Small Hydroelectric Plants (PCH in Brazil), CARE’s output is far greater, since the Installed Capacity is so close to Effective Generated Energy, thus it outperforms any other hydro-electric generating technology. This technology is based on the idea that development, well-being and the pursuit of a better life are not incompatible with caring for the environment and preserving it. Environmentally Friendly Safe and easy passage for migrating fish Av. Olegário Maciel 414, sl 202, Barra da Tijuca, Rio de Janeiro, RJ 22.621-200, Brazil Tels: (55-21) 2410-3108 / 9829-6386 / 2491-7062 frank@careelectric.com.br
  • 8. Awards and International Recognition CARE was selected by the World Economic Forum, Davos as a 8 Technology Pioneer ranked 4th in Energy and Environmental Technologies in a selection done in 2010, it is the only South American company ever selected as a Technology Pioneer. CARE also was selected to participate in the CIETEC Program of the University of São Paulo. CARE in the media CARE’s technological breakthrough has been the subject of reporting and exposure in several media outlets, including: World Economic Forum in Davos, Switzerland - www.youtube.com/watch?v=tl8OqToPoDU CNN En Español - www.youtube.com/watch?v=SEaxPb357YE BusinessWeek - www.businessweek.com/globalbiz/content/dec2009/gb2009127_163138.htm International Water Power & Dam Construction, October 2010 Revista Harvard Business Review Edição Brasil, Sept 2010 Isto é Dinheiro - www.istoedinheiro.com.br/noticias/6075_ENERGIA+SEM+BARREIRAS Pequenas Empresas Grandes Negócios - http://revistapegn.globo.com/Revista/Common/0,,EMI113986-17171,00- ELES+CHEGARAM+AO+TOPO+E+PROMETEM+MUDAR+O+MUNDO.html http://smartgridnews.com.br/a-nova-tecnologia-da-care-electric-para-hidreletricidade/ http://www.analiseempresarial.com/blog/tag/care-electric/ Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP) - www.bv.fapesp.br CIETEC of the University of São Paulo - http://www.cietec.org.br/index.php?id1=30&id2=1436 Av. Olegário Maciel 414, sl 202, Barra da Tijuca, Rio de Janeiro, RJ 22.621-200, Brazil Tels: (55-21) 2410-3108 / 9829-6386 / 2491-7062 frank@careelectric.com.br
  • 9. 9 For inquiries please contact Frank de Luca. frank@careelectric.com.br www.careelectric.com.br Tel: (55 21) 2410-3108 / 2491-7062 Cel: (55 21) 9829-6386 Information Memorandum 02 03 2012 Av. Olegário Maciel 414, sl 202, Barra da Tijuca, Rio de Janeiro, RJ 22.621-200, Brazil Tels: (55-21) 2410-3108 / 9829-6386 / 2491-7062 frank@careelectric.com.br