AEC Product History

Since 2003, AEC has developed technological processes that produce high-quality hydrogen gas from a proprietary mix of metals and reactant solutions. AEC's hydrogen production system is exceptionally unique as it leverages a harmless (i.e. non-toxic) proprietary chemical reaction that yields high quality hydrogen along with a number of globally valuable chemical compounds. AEC's process is entirely chemical, not requiring electrolysis or any external source of electrical power (except to power and move product). It is an environmentally friendly process, as it produces inexpensive hydrogen without utilizing any toxic ingredients or producing harmful emissions or waste - unlike 98% of traditional production methods today.

As mentioned above, AEC's hydrogen process also produces a number of valuable by-products. These chemicals are produced as a direct result of making hydrogen gas and are widely used as well-known ingredients in the chemical food industry. Due to the significant volume produced of these by-products, gross profits resulting from their sales allow for the opportunity to subsidize the cost of AEC's Hydrogen gas, if required.

AEC's unique 'subsidized model' approach to producing bulk hydrogen is unique in the alternate energy industry, as it makes hydrogen no longer cost prohibitive. The Company's competitive price flexibility makes hydrogen an affordable fuel alternative and potentially society's hydrogen answer to its heavy reliance on imported oil.

A Unique Technology

The uniqueness of this technology lies in its ability to overcome several industry obstacles. Current hydrogen production methods are costly and demand a continued reliance on fossil fuels. Storage of hydrogen poses many challenges, including cost and safety. AEC's hydrogen solution overcomes these barriers, with the following benefits:

Affordability

AEC's hydrogen technology does not use increasingly expensive fossil fuels and only globally abundant raw materials. The process itself is as a result, cost-competitive with other forms of hydrogen production.

Safety

AEC's technology produces hydrogen on an as-needed basis, eliminating the need to store hydrogen in a compressed state. This benefit removes an unnecessary cost while avoiding a number of safety issues and negative public concerns about hydrogen.

In addition, there are a number of other key advantages that separate AEC's hydrogen technology from other producers of hydrogen. Unlike most of its competitors:

• AEC's process does not generate its hydrogen from fossil fuels, thereby
• Does not create a further over-reliance on a depleting non-renewable resource
• Does not contribute to greenhouse gas emissions. Methane or natural gas (steam) reformation are examples of this.
• AEC's technology is not electrolysis and therefore does not require electricity to produce its hydrogen.
• AEC's process does not utilize or produce harmful or toxic chemicals - all are safe and biocompatible.

As a result of the above, the company is confident that its technology will have both environmental and cost-competitive advantages in the alternate energy marketplace for the near future.