Ann: Quarterly Activities and Cashflow Report, page-4

This paragraph really is like having a signed deal imo. Gobsmacked why the SP hasn't bagged just from this VERY successful trial on 4 different levels I have listed below:

• 21%increase in crude oil production
• 65% reduction in crude oil viscosity
• 40%reduction in the amount of diluent required
• Multi-Flow® also reduced the pour point ofthe waxy diluent to 20ºC offering CNPC additional cost savings associated with heat
• The client has 1000 wells with production at 38,000 BOPD
• If we did say 38,000 x $2 per barrel treatment costs = $6.84m per Quarter

"China UpdateINK and its distributor in China have continued efforts to build on the very successful resultsof the diluent reduction trial undertaken in CNPC’s giant heavy oilfield. Discussions arecontinuing for a substantial paid pilot-scale field trial. Currently diluent (in this case light oil)is shipped in from a different field and used to assist production and transportation of the oil inthis large heavy oilfield. The diluent reduction trial utilising Multi-Flow® resulted in a 21%increase in crude oil production, a 65% reduction in crude oil viscosity and an estimated 40%reduction in the amount of diluent required. The Multi-Flow® also reduced the pour point ofthe waxy diluent to 20ºC offering CNPC additional cost savings associated with heat."

Gents I do have a few important questions/thoughts I would love your input on:

1. The question remains how much does the Multi-Flow® cost the company verse to manufacture it versus what they sell it for, one would assume there's plenty of cheese in it for them.
2. I recall some payments still needed to be made to the old owner of the Multiflow when certain milestones are reached or am I mistaken? Sorry just for some reason it's in the back of my head.