The AEC Hydrogen Solution

The Company leads with a two-pronged approach to the market, since hydrogen is simultaneously produced with every by-product. AEC's inspired hydrogen solution is unconventional as it naturally overcomes hydrogen's current production challenges with ease. As mentioned earlier, AEC's methods of production do not involve the use of fossil fuel, electricity (i.e. electrolysis), do not create any harmful or toxic waste (i.e. CO2), and is cost-competitive with other forms of hydrogen. AEC believes that its clean hydrogen production process is the method of choice when having the need for inexpensive, on-site production, without compromising the environment or depleting precious fossil fuel resources. To the Company's knowledge, no other entity in the world can produce hydrogen without tripping on one of these mainstay hurdles.

Laboratory Testing - Premium Hydrogen

Strict purity and volume requirements prevail with most fuel cells and other applications which require hydrogen to operate. As a result, the Company's technical team continues to work in conjunction with a number of recognized independent laboratories to ensure that outputs meet acceptable levels for these types of applications.

AEC's hydrogen has been tested by Maxxam Labs in Mississauga, Ontario with a rating of 99.98%. AEC is poised to sell into a mature $3.37 billion USD annual global market by virtue of its inspired price subsidization model and novel production process.

Hydrogen Markets

Hydrogen enjoys an estimated US$3.37Bn global market (economic value of $135 billion per year - 2005 figures), and growing. Market applications being considered for AEC's hydrogen include, but are not limited to;

Bulk Hydrogen for:

• Hydrogenation of food oils such as vegetable, canola, palm, castor, etc.
• Other traditional commercial uses for H2

Fuel for Power Applications for:

• Fuel Efficiency Additive (i.e. diesel fuel enrichment)
• Fuel Cells (all types)
• Internal Combustion Generators (small to large)
• Internal Combustion Engines (auto, small engines)

Targeted Markets

The Company has initially targeted the food oil hydrogenation industry as a market for its hydrogen. Players in this industry can benefit greatly from a significant reduction of their overall cost of hydrogen from an on-site Patent Applied for hydrogen production plant. The Company has already developed an interest with a number of the largest food oil producers in the world, with prospective facilities being considered in the US, Brazil and abroad.

Longer term, the Company believes its hydrogen production technology (HPU) will also have application in the areas of back-up and, in some cases, primary power for commercial, industrial and military purposes, fuel cell power applications, fuel cell-driven and internal combustion hybrid engine vehicles. In addition, there is potential for residential and commercial users wishing to gain independence from the conventional power grid.