Olie business plan draft feb 13 2013 final draft

Olie, Inc,…a Better, Greener Battery 2013

EnCanSol/Olie, Inc. 2013
Business Plan Draft

Confidential
For Internal Use Only

1
February 2013

Introduction

EnCanSol/Olie, Inc. (Olie) is a company focused on emerging, clean energy storage technologies. Olie
owns world-wide rights to the patented Rechargeable Alkaline Manganese (RAMCELL) battery technology
– considered one of the most cost effective and environmentally responsible battery technologies in the
world.

Since 1994, small format RAMCELL batteries in AAA, AA, C and D sizes have been manufactured and
sold to Original Equipment Manufacturers (OEMs) and to leading retailers world-wide, including Wal-
Mart, Frys, Woolworths, Best Buy, Canadian Tire, QVC, Auschan, and Metro AG. While Olie is
expanding the small format business into new OEM and retail markets,the company is also bringing to
market a large format, flat plate RAMCELLbattery. With several performance, cost and environmental
advantages, this battery will compete in the multi-billion dollar lead acid battery market.

The RAMCELL technology was originally developed by the same electro-chemist who invented the
disposable alkaline battery. To date over $40 million has been spent on the development of RAMCELL,
resulting in 28 international patents. The active materials at the core of RAMCELL are zinc and
manganese, which are low cost and readily available. In small format cylindrical form, the construction
format limits the effective size of the battery. However, by converting the battery design to a large
format flat-plate configuration, the proven electro-chemistry can be scaled up for more powerful
industrial applications.

The worldwide battery market is approximately US$89 billion annually, and is growing at an annual rate
of 5%. The rechargeable battery segment is currently $63 billion annually, and is growing at over $3
billion per year. Due to its low cost, lead-acid batteries currently dominate the rechargeable market,
with annual sales of approximately $45 billion.

Olie’s large formatRAMCELLSwill primarily compete with lead acid batteries. Its low self-discharge rate
(less than 4%/year), coupled with its low cost, small size, light weight, higher performance, and
environmental friendliness, make it ideal for backup/standby power applications. These include cell
towers, cable communication systems, traffic lights, airports, healthcare facilities, critical municipal and
other governmental service facilities, and building safety lighting, to name a few. These same
characteristics will make it an ideal replacement for the SLI (Starting, Lighting, and Ignition)
vehiclebattery.

Olie’s small format RAMCELLS can be used in any application that traditionally uses disposable batteries,
including flashlights, clocks, radios, remote controls, toys, video games, and audio devices. RAMCELLSs
are also used in battery pack form in a growing number of OEM products including LED lighting
products, solar lighting, energy monitors, mice and keyboards, and solar clocks. Small format
RAMCELLSs are also now being used in several large hand-held flashlights replacing lead acid batteries.

Olie’s small formatRAMCELL manufacturing plant is located in Amherst, Nova Scotia. The plant is ISO
9001 certified, and has annual capacity of over 75 million batteries. The plant consists of automated
equipment for chemical processing, parts making, AA and AAA size battery manufacturing assembly
lines, and final packaging, as well as quality control and test equipment. Large format RAMCELLpilot
production is being set up at this facility.

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For commercial production of large format RAMCELLS,Olie is reviewing several options including the
establishment of its own manufacturing plant, as well as joint venture production opportunities in key
international markets.

The two major environmental issues facing the battery industry today include the need to eliminate the
use of toxic, heavy metals used in several batteries and the need to reduce vast accumulation of waste
generated by the disposal of single-use batteries. The use of RAMCELL batteries addresses both of these
issues. Hazardous heavy metals of greatest concern include lead and cadmium. Europe has recently
banned the use of Nickel Cadmium (NiCd) batteries due to cadmium poisoning. In 2011, one thousand
five hundred (1,500)lead acid battery plants in China were closed due to leadpoisoning.

Olie’s management team and directors have created over $1 billion of share value in companies they
have started. They have extensive professional, technical, and executive experience, and long track
records of success in the startup and operation of private and public companies, in the energy and battery
development industries including extensive experience with the RAMCELL technology.

Projected battery sales of small and large format RAMCELLSare expected to establish Olie as a multi-
million dollar company within 5 years and a multi-billion company within a decade. Olie is now seeking
an investment of up to $12.6million from private and industrial partners. Use of Proceeds will include
the research, engineering, design, construction and start-up of line and equipment for flat plate batteries,
cylindrical and flat plate inventory build-up, Canadian government debenture repurchase, intellectual
property costs, and working capital.

1. THE COMPANY

1.1 Mission:

Olie’s mission is to become a leading international provider of environmentally responsible rechargeable
battery products to the consumer retail, OEM and industrial markets. Olie’s primary focus is the ongoing
commercialization, development and improvement of its proprietary Rechargeable Alkaline technology.

1.2 Objectives & Strategies:

Olie has the following 3-5 year objectives:

 To become profitable in less than two years through the sale of small formatRAMCELL products to
the international retail and OEM markets.
 OEM focus will continue to be on replacing lead acid batteries with small format RAMCELLbattery
packs.
 The small formatRAMCELLfocus will be to significantly increase retail and OEM distribution in
the United States and open several new markets, including India and China.
 To increase small format RAMCELL sales to over$18 million in the next 3 years, and $41 million
in the next 5 years, through expansion in the global retail and OEM battery market.
 Complete large format, flat plate battery R&D, engineer and construct the manufacturing
equipment and line, and begin sales in 2015.

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 Capitalize on the opportunity created by the emerging “Green” Industry’s trends and
consumer demand for safe, cost effective environmentally friendly battery products and
solutions.
 Continue to build the Company through strategic partnerships, key distribution
agreements and business combinations which will provide leverageable infrastructure.
 Target partnerships and distributor relationships with companies with proven track
records in their respective businesses.
 Expand the Company's product lines through product development programs for battery
and charger products.

2. THE MARKETS:

2.1 INDUSTRY OVERVIEW

Rechargeable Battery Market

Rechargeable batteries include RAMCELL, NiCad, NiMH, Lead Acid and Lithiumtechnologies. World-
wide shipments of rechargeable batteries were projected to increase 5.1 percent annually to $63.5 billion
in 2012. The lead acid battery technology dominates the market with annual sales of over $43 billion.

Single-Use Battery Market

Single-use batteries include zinc carbon, alkaline and lithium batteries.Worldwide shipments of single-
use batteries were expectedto increase at a 4.2 percent annual rate to $26.2 billion in 2012.

Global Shipments US$89 Billion

24% Rechargeable
Batteries
72%
4%
Alternative
Energy
Storage

2.2 MARKET TRENDS

The following are significant trends in consumer, OEM and industrial battery markets:

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Consumer Battery Market

 NiCd batteries were recentlybanned in Europedue to cadmium poisoning issues.
 Toys R US and Hasbro Toys recently announced that they will be phasing out NiCd batteries in
the near future.
 The Ontario Minister of the Environment approved the Municipal Hazardous or Special Waste
Program. Single-use alkaline batteries are included in this program and must be returned for
proper disposal.

The OEM & Industrial Markets

 As with the consumer market,NiCd batteries were recently banned for OEM use in Europedue
to cadmium poisoning issues.
 In 2011,over one thousand five hundred(1,500) lead acid battery plants were closed in
China due to health issues associated with the use of lead.
 The safety issues associated with rechargeable lithium batteries have been well
documented in recent years, including a number of fires and explosions resulting from
lithium battery use in cell phone and lap top computers.
 The rising prices of lead, nickel and cobalt have resulted in significantly higher prices of
lead acid, and nickel based batteries in recent years, as compared to zinc and manganese
used in RAMCELLS.

Batteries&The Environment

The major issues facing the battery industry today include safety issues relating to lithium batteries, the
need to eliminate the use of toxic, heavy metals used in several batteries, and the need to reduce vast
accumulation of waste generated by the disposal of single-use batteries.

Billions of single-use and rechargeable batteries are used every year worldwide. Eventually these
batteries, some with toxic materials in them, end up in landfill sites where toxic chemicals can leach into
ground water tables. The production of these batteries also generates significant green house gas
emissions. By using non-toxic RAMCELLS in place of single-use alkaline batteries battery waste and green
house gases can be reduced by over 90%.

The Environmental Choice Program is North America's leading benchmark of environmentally
responsible products and services. The program provides consumers with a level of assurance that the
products bearing the EcoLogo™, meet stringent environmental criteria. The mark also tells the
consumer that the manufacturer of the product has been audited by a credible third party. The small
format RAMcell technology is the only battery to receive the prestigious EcoLogo™ certification.

2.3 COMPETITION

There are five main types of rechargeable batteries in the market today:

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Lead-Acid – (the dominant rechargeable battery used in vehicles, back-up power, others)
Benefits: low cost, and most suitable for low to medium drain applications.
Disadvantages: heavy, large, low energy density, capacity fades with deep discharge cycling, must be
recycled due to use of poisonous lead.

NiCd– (the first convenient, high energy rechargeable for consumer products)
Benefits: Better energy density than lead acid.
Disadvantages:Significant Memory Effect (loss of capacity unless fully discharged prior to charging),
high self-discharge, made with poisonous cadmium and toxic nickel, banned in Europe, higher price
than lead acid.

NiMH – (replacing NiCd in consumer products, used in some hybrid vehicles)
Benefits: Lighter and higher energy density than lead acid and NiCd,limitedmemory effect,
Disadvantages: High self-discharge, higher price than NiCd, uses toxic nickel.

Lithium – (used in high drain devices that require extended use and are less price sensitive, like cell
phones, computers)
Benefits: Higher energy density than NiMH, high cycle life, high depth of discharge, low self discharge.
Disadvantages: Most expensive battery due to lithium content and difficulties to manufacture,
dangerous (can ignite and in some cases explode), limited supply of lithium.

RAMCELL – (only rechargeable battery designed to replace disposable batteries)
Benefits:Low cost, and most suitable for low to medium drain applications. Very low self-discharge,
high energy density, environmentally friendly, no Memory Effect, maintenance free.
Disadvantages:In its current format, it is not suitable for some high drain applications such as digital
cameras, there is capacity fade with deep discharge cycling.

3. CURRENT PRODUCTS – SMALL FORMAT RAMCELLS

Small formatRAMCELLS in AAA, AA, C and D sizes, and in various battery packs are the ideal choice as
an economic alternative to single use batteries, and a cost effective, environmentally responsible
alternative to lead acid, NiCad, NiMH, and lithium batteries. Product features include:

 Low cost and readily available raw materials (zinc and manganese);
 The only rechargeable battery designed to be used in any application that uses single-use alkaline
and zinc carbon batteries;
 Unlike other rechargeable batteries, RAMcells come fully charged so they can be used right out
of package;
 RAMCELLS don’t suffer from rapid self discharge like other rechargeable batteries. They have a 10
year shelf life and will continue to have this shelf life after repeated uses;
 Rechargeable 100-1000’sof times or more depending on use and depth of discharge the
frequency of recharging – charging before the battery is fully discharged provides extended
service life;
 Do not suffer from “memory effect” – can be recharged any time.
 No toxic materials used.

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To support its small format RAMCELLretailbusiness Olie offers a full line of chargers, including 2, 4, and
8 position wall plug chargers for AAA, AA, C, and D sizes. 2 position USB chargers are also available
for AAA and AA batteries.

4. MARKETING & SALES

4.1 Retail Sales

Based on previous ownership historically, sales of small formatRAMCELLS focused on the Canadian
market,with several retailers carrying product including Canada’s largest retailers: Wal-Mart, Canadian
Tire, and Loblaws.In addition to expanding traditional retail sales into several new markets, Olie is
utilizing several other distribution channels in order to marketRAMCELLS. They include:

 Catalogue sales
 Internet sales
 Home Shopping Networks
 Industrial sales
 Military sales

4.2 OEM Sales & Development

There are several key features that make small format RAMCELLS the ideal choice for several OEM
products. These features include:

 Excellent intermittent discharge/charge characteristics – 5000+ cycles possible.
 The higher nominal voltage of 1.5V of rechargeable alkaline batteries provide performance
advantages including greater brightness in solar lighting applications or flashlights compared to
1.2V NiCd and NiMH batteries.
 Industry leading charge retention and charge acceptance – 10yr. shelf life. Manufactured in the
fully charged state – ready to go without initial recharge.
 Simple charging circuitry – charging circuit can be easily and economically made.Olie’s
rechargeable alkaline is considered the most environmentally responsible battery system in the
world – it is the only battery system in North America to be awarded the “Eco Logo” in the
Rechargeable Consumer Batteries Category.
 RAMCELL is very cost effective – it can and is replacing lead acid batteries.

Current Products:

At the present time Olie is supplying small format RAMCELLS for several products including:

 Solar Garden Lights
 LED spotlights/flashlights
 Wireless Keyboard
 Wireless Mice
 Solar Clock/Smoke Detectors
 Energy monitors
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5. PRODUCT DEVELOPMENT & MANUFACTURING

5.1 Small FormatRAMCELL

Product Development

Ongoing product improvement is a priority for Olie. Since its market introduction in 1994, there have
been significant improvements to small formatRAMCELLS including longer cycle life, and increased
cumulative service life and charge retention. These efforts will continue to be a priority.

PE+: At the present time, PE+ is in development and is expected to be available within 24 months
through a combination of new additives and new production equipment.

Cylindrical RAMCELLManufacturing

Olie’s battery plant in Amherst, Nova Scotia has the capacity of producing the following batteries, based
on a three-shift, five day per week operation:

 55 million AA batteries annually
 26million AAA batteries annually

The ISO 9001 certified plant is 38,000sq. ft., and it sits on 10.5 acres of industrial land. The plant
consists of automated equipment for chemical processing, parts making, AA and AAA size battery
manufacturing assembly lines, final packaging, as well as quality control and test equipment.

When capacity is reached in Amherst and additional supply is required,Olie has several alternatives
available to it. The Nova Scotia government has stated that it would finance the purchase of new
production lines. The Company owns 5 acres of land adjacent to the plant for future expansion.
Opportunities for Chinese or Indian production are under discussion.

New production equipment will be supplied by Hibar Systems Limited of Richmond Hill, Ontario.
Since 1974, Hibar has been a leader in the development and production of metering pumps, dispensing
systems, process and manufacturing equipment for the international battery market. Hibar’s experience
with various battery technologies is considerable, and includes single-use and rechargeable alkaline,
lithium, zinc chloride, lead acid and nickel metal hydride. Current clients include the major battery
companies.

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5.2 Flat Plate RAMCELL

The active materials and general performance characteristics between cylindrical and flat plate RAMCELLS
are virtually identical. However, in cylindrical form, the construction format limits the effective size of
the battery. By converting the battery design to a flat-plate configuration, the proven electro-chemistry
can be scaled up for more powerful industrial applications. Large format RAMCELLS have a number of
cost, environmental, and performance advantages over its competition.

 1/3 size and 1/3 weight of a lead-acid battery with comparable performance.
 Superior 10 year shelf life.
 High energy density.
 Low cost.
 Maintenance free.
 No toxic materials used.

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Product Development

Olie has successfully completed the key research and development phases of the large formatRAMCELL
program. Olie is now in the engineering development phase,anticipates having a lab prototype in 2013,
and reaching the Beta prototype stage within 20 months.

Project Phases Status/Timing

1. Development of a prototype single cell Complete
2. Development of 10 Amp battery 6 months
3. Build Alpha 1 “stand alone” prototype 10 months
4. Build Alpha 2 “optimized” prototype 18 months
5. Build Beta “commercial” prototypes 24 months

Flat Plate RAMCELLManufacturing

For the commercial production of flat plate batteries, Olie is reviewing several options including the
establishment of its own manufacturing plant, and joint venture production opportunities in key
international markets.

6. INTELLECUAL PROPERTY

6.1 Patents

The Company currently owns patents covering all if its intellectual property, and is continually updating
its technology and filing new patent applications. Current patents expire between 2014 and 2031;
however, the Company has developed technological enhancements to each of the patents, ensuring
continued patent coverage.

Below is a summary of Olie’sRAMCELL patents:

# Number TITLE

1 6,361,899 ADDITIVES FOR RECHARGEABLE ALKALINE MANGANESE DIOXIDE CELLS

METHOD FOR PREPARING A CYLINDRICAL SEPARATOR, A TOOL USABLE FOR THE METHOD AND
2 6,035,518
CYLINDRICAL CELL WITH THE SEPARATOR
SEALED RECHARGEABLE CELLS CONTAINING MERCURY-FREE ZINC AN0DES, AND A METHOD OF
3 5,626,988
MANUFACTURE
METHOD OF MANUFACTURING ANODE COMPOSITIONS FOR USE IN RECHARGEABLE
4 7,169,508
ELECTOCHEMICAL CELLS
METHOD OF MANUFACTURE OF AN ANODE COMPOSITION FOR USE IN A RECHARGEABLE
5 7,008,723
ELECTOCHEMICAL CELL

6 7,718,305 RECHARGEABLE ALKALINE CELL WITH CATHODE CONSISTENCY COMPENSATION

7 7,754,386 RECHARGEABLE ALKALINE CELL HAVING REDUCED CAPACITY FADE AND IMPROVED CYCLE LIFE

8 8,153,299 RECHARGEABLE ALKALINE CELL WITH CATHODE CONSISTENCY COMPENSATION (DIVISIONAL-1)

9 8,153,300 RECHARGEABLE ALKALINE CELL WITH CATHODE CONSISTENCY COMPENSATION (DIVISIONAL-2)

MANGANESE DIOXIDE POSITIVE ELECTRODE FOR RECHARGEABLE CELLS, AND CELLS
10 2,157,174
CONTAINING THE SAME

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# Number TITLE

SEALED RECHARGEABLE CELLS CONTAINING MERCURY-FREE ZINC ANODES, AND A METHOD OF
11 2,189,341
MANUFACTURE
12 ZL 94 1 01682.X
CONTAINING THE SAME
SEALED RECHARGEABLE CELLS CONTAINING MERCURY-FREE ZINC ANODES, AND A METHOD OF
13 ZL 94 1 12978.0
MANUFACTURE
14 194,220
CONTAINING THE SAME

15 129,441 ADDITIVES FOR RECHARGEABLE ALKALINE MANGANESE DIOXIDE CELLS

16 262,079
CONTAINING THE SAME

17 EP1958278 B1 RECHARGEABLE ALKALINE CELL HAVING REDUCED CAPACITY FADE AND IMPROVED CYCLE LIFE


19 200680044539.0 RECHARGEABLE ALKALINE CELL HAVING REDUCED CAPACITY FADE AND IMPROVED CYCLE LIFE

20 2008/5588 RECHARGEABLE ALKALINE CELL HAVING REDUCED CAPACITY FADE AND IMPROVED CYCLE LIFE

21 144,109 RECHARGEABLE ALKALINE CELL HAVING REDUCED CAPACITY FADE AND IMPROVED CYCLE LIFE

22 MX/a/2008/006830 RECHARGEABLE ALKALINE CELL HAVING REDUCED CAPACITY FADE AND IMPROVED CYCLE LIFE

23 2006-317436 RECHARGEABLE ALKALINE CELL HAVING REDUCED CAPACITY FADE AND IMPROVED CYCLE LIFE

24 2008-7015877 RECHARGEABLE ALKALINE CELL HAVING REDUCED CAPACITY FADE AND IMPROVED CYCLE LIFE

25 1038/MUMNP/2008 RECHARGEABLE ALKALINE CELL HAVING REDUCED CAPACITY FADE AND IMPROVED CYCLE LIFE


27 13/699,604 ALKALINE BATTERY AND CLOSURE ASSEMBLY

28 TBA ALKALINE BATTERY AND CLOSURE ASSEMBLY

6.2 Know-How

Equipment Manufacturing: Partnership with Hibar Systems Ltd. provides access to patents & know-how for
battery manufacturing equipment, including access to Hibar’s separator technology.

Charging Technology: OLIE has know-how and experience in regards to RAMCELL technology, as well as multi-
chemistry charging.

Battery Manufacturing Processes: OLIE has a wide range of know-how and experience in regards to battery
manufacturing processes for RAMCELLS.

7. STRATEGIC ALLIANCES & PARTNERSHIPS

Small format RAMCELL Sales – For the sale of small format RAMCELLS,Olie is currently working with a
growing network of distributors in key markets, including North America, Europe and South America,
China, Australia, India and Asia.
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Product Development – In addition to its own R&D efforts now under the leadership of Dr. Josef
Daniel-Ivad,Olie has completed a major research project with the National Research Council of Canada,
(subsidized by the Federal Government) (www.nrc-cnrc.gc.ca),which independently verified Olie’s
technology and intellectual property. Olieis currently working the University of British Columbia on
collaborative large format research and development program.

Product Manufacturing - All RAMCELL production equipment in Nova Scotia has been supplied by Hibar
Systems Ltd. (www.hibar.com). Hibar is a high technology design and manufacturing company, with
expertise in a wide range of technologies and products including metering & dispensing systems, high
performance packaging systems, automated assembly systems, and chemical processing systems. Olie
will continue to work with Hibar for pilot and commercial production.

Large Format Flat PlateRAMCELLSales – Amongst others, Olie is working with Alpha Technologies
(www.alpha.com), an established worldwide leader in the back-up power industry. Alpha is providing
engineering and design support to optimize Olie’s flat-plate battery for commercialization and
introduction to their global market. Alpha currently acquires more than 30,000 lead acid batteries each
month for new installation.

8. MANAGEMENT

WAYNE HARTFORD,Chief Executive Officer& Chief Financial Officer, Director
Mr. Hartford has over 25 years of experience in the battery business and 35 years' experience in
marketing packaged consumer goods. Mr. Hartford started in product management at Warner Lambert in
1967, moved to Kimberly Clark in 1970 as Marketing Manager, and in 1973 became a Director of
Marketing Services for Young and Rubicam. In 1974, he founded D.W. Hartford & Associates Inc., a
marketing consulting firm that became a full service advertising agency in 1976. In 1986, and in
conjunction with Dr. Karl Kordesch, Mr. Hartford formed Battery Technologies Inc. (“BTI”), and was
responsible for the development and subsequent international launch of the rechargeable alkaline
battery(RAMCELL).

ROBERT C. GARDNER, President & Secretary, Director

Mr. Gardner's has an extensive business and legal background with several publicly traded
companies.Mr. Gardner is the principal of the law firm, Gardner & Associates, of Vancouver, British
Columbia. He is called to the Bar Society in England and Wales, and admitted to the Law Society of
British Columbia, Canada. Mr. Gardner was appointed a Queen's Counsel in 1988. Since January 1998,
Mr. Gardner has served as a member of the board of directors for at least 15 different companies whose
securities were traded in various public markets.

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STEPHEN MELDRUM, Chief Operating Officer

Stephen Meldrum has 20 years of sales, marketing and licensing experience in the battery and energy
storage industries in Europe, Canada and the US. He has been involved with the RAMCELL technology
for over 15 years,holding various senior management positions with a focus on sales and operations. He
was President of Ashurst Technology Corp., a company that successfully transitioned advanced
materials and energy storage devices from lab to the market place. From 1989 to 1995, Mr. Meldrum
was Vice President Sales and Business Development for BTI, including three years in charge of BTI’s
international licensing operations.

DR. JOSEF DANIEL-IVAD, Chief Technical Officer
Dr. Daniel-Ivad is Chief Technical Officer, and responsible for all technical aspects of the rechargeable
alkaline technology including chemistry, manufacturing processes, charger technology, new application
development and intellectual property protection. Previously, Dr. Daniel-Ivad had a12-year career with
BTI, where he established the R&D laboratory for Rechargeable Alkaline batteries. Later, as BTI’s VP,
Technology Development, he was responsible for all aspects of product and manufacturing process
engineering and development. Dr. Daniel-Ivad has a Ph.D. from the Technical University of Graz,
Austria, where he completed his thesis under the auspices of world renowned electrochemist Dr. Karl
Kordesch, one of the founders of BTI and the inventor of the original single-use alkaline battery at
Eveready.

DOUG McKILLOP, Plant Manager
For the past 19 years, Mr. Mckillop hasworked as Supervisor and the Plant Manager for the small format
RAMCELL production facility. During this time, he has been responsible for all plant operations including
production, packaging, purchasing, warehousing and shipping. He has also been involved in set up of
turnkey battery production lines in South Korea, Malaysia and China. Previously, Mr. Mckillop worked
for 15 years as a Supervisor for a confectionary products company, and was involved with several
companies including Standard Brands, Nabisco and Hershey.

DIRECTORS

Below is a list of the Board members, as it is presently constituted. The Company intends to revamp the
Board, to add directors with relevant business experience and qualifications to chair the Board's Audit and
Compensation Committees. The Company has entered into an agreement with former PepsiCo senior executive
Len Schutzman to become non-Executive Chairman of the Board of Directors, effective when the funding
described in this Business Plan is completed.

Len's service as a Director of five publically-held companies brings the expertise in governance, business
development/strategy, international business and regulations for publically traded companies to our team.His
reputation and high level relationships with key retailers and distributors will be a significant factor in
securing U.S. and international distribution for the Company’s products.

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GREGG VERNON, PEng

Gregg Vernon has over 30 years’ experience in the energy industry, in which he has held technical and
senior executive positions with major energy companies around the world. He has also successfully
grown companies, including Prospero Hydrocarbons Inc, Petro Andina Resources Inc (TSX-V:PAR),
Alange Energy Corp (TSX-V:ALE), and Petrodorado Energy Ltd (TSX-V:PDG), from start up to
profitable enterprises sold for hundreds of millions of dollars.

FRANK BOROWICZ, QC, CA (Hon)

Frank Borowicz has over 35 years’ experience in corporate governance and regulatory compliance. He
is a retired partner of the international law firm Davis LLP, and is a Governor of the Vancouver Board of
Trade. He served as Chairman of the BC Industry Training Authority, and is an independent director of
several private and public companies, including West Cirque Resources (TSX-V: WCQ) and
Hemisphere Energy (TSX-V: HME). Educated at Harvard, Dalhousie, and Loyola, he is a member of the
Institute of Corporate Directors, and an honorary member of the Institute of Chartered Accountants.

GRANT VERNON

Grant Vernon has 30 years’ experience in hi-tech industry marketing and channel development. After
majoring in Urban and Regional Planning at Mount Royal College in Calgary, he developed specialized
technical expertise in building and implementing engineered plant design and manufacturing solutions
throughout Canada and the US. He currently manages regional sales in the computer aided design
industry for Autodesk Corporation (NASDAQ:ADSK).

9. FINANCIAL INFORMATION:

The schedule below recaps the Operating EBITDA for the Company’s current small format, cylindrical
battery product line for its last fiscal year June 30, 2012, and a projection for the five fiscal years ended
September 30, 2013 thru 2017. These projections include only current operations related to the OEM
and retail sale of small format cylindrical batteries to the Company’s existing customer base.

See Section 10 – OPPORTUNITIES, for information related to additional channels being pursued for
sales of small format cells, as well as the huge potential for marketing flat plate large and small format
batteries currently under development. Obviously any revenue and profit generated by these
opportunities will have a positive, perhaps significant, effect on the revenue, cash flow, and shareholder
value of the enterprise.

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Actual Projection - Fiscal Year Ended September 30,
Year Ended
2013 2014 2015 2016 2017
June 30, 2012
Revenue $ 1,810,600 $ 3,894,800 $ 7,527,700 $ 12,201,200 $ 22,339,700 $ 41,172,700
Cost Of Goods Sold 1,698,600 3,142,100 3,815,000 5,157,100 8,824,200 15,309,800
Gross Profit 112,000 752,700 3,712,700 7,044,100 13,515,500 25,862,900

R&D 258,600 536,600 1,037,100 1,681,000 3,077,800 5,672,400
SG&A 192,500 142,000 274,400 444,800 814,500 1,501,100
total Operating Expenses 451,100 678,600 1,311,500 2,125,800 3,892,300 7,173,500

EBITDA $ (339,100) $ 74,100 $ 2,401,200 $ 4,918,300 $ 9,623,200 $ 18,689,400

In order to understand the actual results for the 2012 fiscal year, it is important to note that before
EnCanSol Capital Corporation (ECC) took over the small format business, prior ownership (Pure Energy
Solution) did nothing to grow sales during the time they owned the business - a period of close to 3
years. This period of inactivity was based on the fact that they had plans to sell the small format
business to a strategic acquirer, who was a partner in another of the Company’s technologies.

Prior to Pure Energy Solution’s involvement, the small format business had sales of approximately $5
million per annum in the Canadian market. At the time, the total number of stores selling product was
approximately 1,200, with an average of $4,000 sold per store per year.

Since ECC took control of the small format RAMCELL business in April 2012, it has taken several steps to
expand its business into several key international markets. This expansion includes both retail sales and
sales to original equipment manufacturers (OEMs). Based on recent new business, requests for quotes,
and the interest level of a wide number retail and OEM companies, ECC believes it can generate
exponential growth for several years.

The projections are based on the following assumptions:

 By 2017, we are utilizing a significant portion of the Amherst, Nova Scotiabattery plant capacity,
assuming 3 shifts working 5 days per week. That translates to an annual production of 55 million
AA and 26 million AAA batteries. Obviously, those numbers jump dramatically if we move to a
7 day per week production schedule.
 The revenue numbers assume that 75% of future production is allocated to the retail sale of AA
and AAA 4-packs and charger kits, and 25% to OEM sales.
 The retail sales figures are based on the use of distributors for all sales. There are certainly
opportunities of going direct and/or using commissioned sales agents, whereby we would
generate increased margins.
 “Pre - Pure Energy”historical retail direct sales figures have shown that retailers can sell between
$3,000 and $10,000 worth of RAMCELL products annually per retail store. For the purpose of the
projection,our revenue numbers assumeeach retailer sells an average of $2,000 per store, and we
sell that volume of product at the wholesale selling price paid by the distributor.
 The figures assume that a reasonable number of retailers will conduct one or more promotions
per years, which is typical in the battery industry.
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10. OPPORTUNITIES

10.1 Small Format Cylindrical Cells

The Company has engaged a consultant to, among other things, design and execute a plan to
significantly increase distribution and sales. Below is chart recapping the number of U.S. points of
distribution for major national retail and natural food chains, all of which would be intrinsic outlets for
the Company’s small format RAMCELL batteries.

Major National Chain Retail Outlets
Club Stores (3 Chains) 1,200
Drug Stores (3 Chains) 19,900
Grocery Stores (5 Chains) 5,800
Big Box Retailers (3 Chains) 6,900
Hardware and Home Improvement Stores (4 Chains) 10,900
Convenience Stores (2 Chains) 10,100
Auto Parts Retailers (3 Chains) 11,400
Total Major National Chain Retail Outlets 66,200

UNFI 23,000

Total 89,200

This chart does not include regional and independent retailers, nor various“non-traditional” channels
which would, taken together,generate a total of well over 100,000 potential U.S points of distribution.

10.2 Large Format RAMCELLS

The Company will first concentrate on developing and marketing its large format flat plate product line,
and will secondarily proceed with the development of small format flat plate products.

Large format cells have gone through very little technical change in more than 100 years, and Lead Acid
became the standard for virtually all large applications simply by taking over the growing Starting
Lights and Ignition (SLI) market and creating economies of scale with volume production. There have
been thousands of manufacturers who have configured devices using these batteries, because they are
readily available. In the past few years, there is a back order situation with lead acid and the hazards of
lead poisoning are starting to be realized.

Various market segment opportunities include:

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Back Up and Standby Power – There are already thousands of standby applications, such as
emergency lighting, that are using lead acid batteries. An economic alternative has not existed until now,
and that is a very easy retro fit. Computers are probably the best known application that require ongoing
power to operate and maintain their software, but there are many applications that to-date have simply
not had a suitable solution.When hurricane Katrina hit the Southern US coast, not only did the power go
out but, as a secondary problem, the cell phone system started to fail in a half hour, and was completely
out in 2 hours. That left all of the emergency workers and rescue groups without any real immediate
communications, and greatly increased the difficulties of dealing with the situation.
An offshoot of this problem is that, in any emergency situation, when the power goes down the traffic
lights go out and an immediate grid lock occurs. A stand-by traffic light system has been high on the
wish list of every Government in the world, and the size of that market has not even been estimated.
Other critical standby power applications include:
U.S. Healthcare Facilities – 5,700+ American Hospital Association registered hospitals, with
over 950,000 beds; 5,300+ Ambulatory Surgery Centers, performing over 23,000,000 procedures
annually; 16,100 Nursing Homes with 1,700,000+ beds, 86% occupied.
U.S. Gas Stations – Over 115,000, as of the end of 2008.
U.S. Cell Towers – Over 240,000 in 2010, each requiring battery replacement approximately
every 3 years.
Server Farms.
Governmental/Municipal Facilities (e.g. police and fire stations)
International facilities, as above.

The Starting Lights and Ignition Battery (SLI) - This segment is virtually the exclusive domain of the
lead acid battery, and has grown in parallel with the growth of the vehicle market. It has spawned the use
of back up batteries for things like emergency lighting, and computer back up, but the SLI is the core
business and represents a multi-billion dollar market.The large sized lead acid 12 volt batteries dominate
this market, but the smaller 12 volt systems for such things as motor cycles, ATV’s and personal water
craft represent an estimated $1,000,000,000 plus in annual sales with growth near 10%.

Electric Vehicles – The need for peak power with increased capacity is the limiting factor on electric
vehicles, in that they have the storage system but do not have a sufficient conversion system, and they
can’t carry enough stored power to economically provide the power and range the market wants.For an
electric automobile to succeed in the overall market,it will need to have a much better, safer,
environmental and economic system, combining both storage (batteries) and conversion (charging
during operation) devices. This combination of systems is now called “Hybrid” vehicles.
There is an opportunity to work with the newest generation of electric car designers to optimize the
hybrid systems, and to combine a tailor made battery system with a fuel cell or small turbine charger.
This system will constantly charge the batteries at the average rate needed, and this will eliminate the
range problem for electric vehicles, which is the key restriction on the market today.
This market will be several billion dollars in the next 10 years and will grow exponentially after that.
Manufacturers will certainly have the capacity to build a million electric cars by 2015. Forecasts
indicate that 5 to 8 percent of all vehicles being battery-powered by 2020, and 20% to 30% by 2030.

18

The Military – The US military alone uses nearly $1,000,000,000 worth of small batteries per year in
over 200 individual applications. Without replacement batteries or charging capabilities, these forces are
basically back to smoke signals after a very few days on their own. The computers and communication
device, along with electronic drones, robots and smart weapons are rapidly developing, and the military
is constantly on the lookout for better solutions to these portable power needs. The US Navy is currently
testing oursmall RAMCELL, and has requested to will test large format RAMCELLS when they are available.

As can be seen the market for large format RAMCELLS is enormous and primarily targets the $43 billion
lead acid battery market. The annual growth alone of over 5% represents more than $2 billion. Gaining
a 1% share of the lead acid business based on today’s numbers would represent sales of $430 million.

11. INVESTMENT and USE OF PROCEEDS

The company is seeking an investment of $12.6 million, on terms to be negotiated. Following is a
schedule recapping the Use of Proceeds:

Lab Manufacturing and Testing Equipment $ 1,000,000

Flat Plate Research and Development 800,000

Engineering of Manufacturing Equipment 1,500,000

First Generation Flat Plate Manufacuring Line Construction 4,000,000

Manufacturing Line Start-up/Flat Plate Inventory Build-up 2,200,000

Cylindrical Materials and Finished Goods Inventory 500,000

Discounted NSBI $7 million Debenture Purchase 1,000,000

Patents and IP Cost 100,000

Working Capital and Contingency 1,500,000

Total Investment $ 12,600,000

12. VALUATION

On an asset basis, the value of the Company could exceed $100 million. An independent intellectual
property investment specialist has informally indicated to management that the patents alone may be
valued at an amount approaching $100 million. Additionally, the replacement value of the
manufacturing and R&D facilities (land, building, and equipment) is estimated to exceed $10 million.
This asset valuation does not take into consideration the cash flow of the small format, cylindrical
battery operation, as forecast in the enclosed projections, nor any additional cash flow from the planned
expanded U.S. retail distribution, and the future anticipated sale of flat plate products, both of which
could be significant.
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Olie business plan draft feb 13 2013 final draft

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Olie business plan draft feb 13 2013 final draft