EKT UGANDA: FROM WASTE TO HIGH-VALUE PRODUCTS BUSINESS PRESENTATION

1.0 CURRENT WASTE DISPOSAL SCENARIO

 More stringent laws regarding waste and waste disposal and reverse logistics;
 The most demanding society on environmental and social issues;
 The current recycling processes are not efficient because:
 They do not eliminate 100% of the waste;
 Rejects from the recycling process end up in the landfill;
 The environmental impact remains -washing, use of chemical additives, etc.;
 They are not financially viable;
 Current technology: Many restrictions and high cost.

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2.0 CORPORATE PROFILE

2.1 Why EKT?

Because our technology solves the waste problem in a social, environmental and
economically viable way.

2.2 EKT Historical

Years ago a Brazilian scientist of German origin, Carlos Flister developed a unique
technology in the World that gave origin to EKT. This technology transforms waste into
high value products, cleaning the environment, without taking raw materials from
cooperatives or recycling industries, on the contrary, uses what was not used by them,
reducing the destination to the landfill. It was years of research and millions of dollars
worth of investment. Today there are already factories in Brazil, Argentina and the
United States.

2.3 EKT Mission

Develop innovative and sustainable technologies that are capable of transforming waste
into products of high added value that provide comfort, safety and solutions the lives of
people and the planet.

2.4 EKT Vision

Eliminate waste from the world.

To be the definitive solution for the transformation of waste.

2.5 EKT Core Values

 Ethics
 Transparency
 Confidence
 Respect
 Integrity
 Dedication
 Technology

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3.0 BUSINESS DESCRIPTION & DEVELOPMENT

3.1 Background

EKT UGANDA works with different types of customers and partners, seeking the
optimization of the process and efficiency of the system, aiming at energy efficiency,
principles of the Circular Economy. To do so, it develops its projects in a personalized
way to meet the needs of each case. The management methods and processes go through
constant improvements, as well as the technologies developed within the company's
Engineering Center, where each new equipment comes with an update in relation to the
previous one.

We offer everything from waste processing equipment to ready-to-use plants for

processing waste into new raw materials. In the latter case, the turnkey projects where
EKT UGANDA delivers the equipment installed and ready to operate, passing a "ready
industry" to the customer. The business model to be implemented involves a prior
diagnosis and sizing of technologies in response to the needs of each case, which may
have a higher or lower cost.

EKT UGANDA is a technology research and development company, so it works in Just-

In-Time format, producing its machinery and equipment according to the design of each
project. On the occasion of the supply of technologies, it is possible to collect royalties or
participation in the business, depending on the negotiation carried out by the commercial
sector with the client.

3.2 Overview of the Business

EKT UGANDA is an environmental engineering solid municipal waste treatment

enterprise that will manufacture and trade 1,000 tons per day of BSW (Bio Synthetic
Wood) and 658 MW per day of ELECTRICAL ENERGY from Urban Solid Waste (USW),
Industrial Solid Waste (ISW) and Agribusiness Solid Waste (ASW).

Initially, the company will focus on the production of wood sheets, up to the certification
of its construction system, when then it will be able to provide complete walls or even
house kits or silos.

It will be, from the beginning, an innovative company, in the raw material, in the
production, in the products, in the management and in the way of serving the market.

There are already customers in Uganda and abroad interested in purchasing the entire
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production of EKT UGANDA.

3.3 History and Mission

The founding partners bring with them the knowledge and experience of large projects
with clients in Brazil and abroad, as well as the invention and patents of the product,
process and equipment for manufacturing. The intention of this venture is, in addition to
producing commercially, to develop new products and applications based on BIO
SYNTHETIC WOOD, from URBAN, INDUSTRIAL and AGRIBUSINESS WASTE.

With many years of investment, research and development, the maturing of the idea has,
however, taken the indispensable steps to assess whether there was a clearly identified
business opportunity. A number of tests, prototypes, surveys and analyzes preceded this
project presentation, in addition to all the knowledge accumulated in the implantation of
factories in Brazil, Argentina and the United States.

Currently the project is in full development and this document has the purpose of
presenting the feasibility of the business, also serving as a plan of action and guidance
for the opening and first steps of the new company.

3.4 Business Model

The business model of EKT UGANDA is quite simple.

If it is the interest of the members, Management and Marketing can be done by foreign
partners, through a SINGLE BRAND and QUALITY SYSTEM, which will bring together
all factories worldwide, lean structure and the rational use of resources for the benefit of
all.

EKT UGANDA will be a BIOSYNTHETIC WOOD INDUSTRY and a producer of

ELECTRICAL ENERGY.

The product will reach the consumer market through a structure of TECHNICAL/
SALES REPRESENTATION, attending a network composed of distributors, dealers,
builders, road implements factory, silo factories, concrete factories etc. that will be
geographically distributed, according to the MARKETING PLAN. The quantity and
quality of this network of REPRESENTATIVES AND CUSTOMERS is crucial for the
prosperity of the business. All this structure, if it is the wish of the partners, may be
managed by local partners.

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As usually happens in the Ugandan market, it will be necessary to sell with an average
payment term of 15 to 60 days, (depending on how much longer or shorter periods will
be applied). Therefore, EKT UGANDA will need working capital and good production
planning to avoid large inventories.

3.5 Current Development Phase

The concession contract with the Kampala Capital City Authority [KCCA] has already
been signed and the environmental and executive project is in full development.

Prior to the public call and the signing of the contract, the necessary studies were
completed to evaluate the technical and commercial viability of the proposed products,
and the project is already being implemented in several cities.

There are already factories producing BSW in Brazil, Argentina and the United States, in
April of 2018 another unit was inaugurated in Beaumont near Houston, Texas in the
United States.

Suffice to say that the manufacturing and marketing aspects of the project will not be new
experiences, but an added innovation within the Uganda and global domains of solid
municipal waste treatment and extraction of marketable value goods.

The raw material USW or ISW or mineral and agricultural waste exists abundantly
throughout Uganda and the world and is undoubtedly one of the greatest problems and
challenges of humanity.

Studies and definitions regarding the process, machines and equipment required to
operate the new company were made over the last year, using the knowledge and
experience of long years of activities.

Conversations with city mayors, secretaries of environment, building owners, rural

producers, silo manufacturers and construction systems, road construction firms,
manufacturers of forms and building materials, as well as merchants were also quite
encouraging and instructive for a making a series of decisions related to the model
business plan and products manufacture.

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3.6 Business Roadmap

Step 1: Investment Analysis

For the analysis of the investment, a specific economic feasibility study is provided to
each project, which includes all the economic data necessary for the analysis, where the
projections take into account all the data of the business. Depending on the project, there
may be financing through equity participation (partner-investor, investment fund,
collective investment, acceleration/incubation programs), alternative sources of
development banks (public and/or private banks) and lines of credit (constitutional
funds and development banks with reduced rates).

Step 2: Closing the Deal

The closing of the business is done through the preparation of a contract formalizing the
negotiation and validating the financial projections presented for the specific business
model. Each business depends on the success achieved and the design dimension,
respecting the deadlines and values established in the contract.

Step 3: Environmental Licensing

The Environmental Licensing for implementation of the project is carried out before the
environmental agencies in force, and EKT provides all necessary support, counting on
professionals inside the company and third parties specialized in the licensing process
for the execution. Depending on the region installed, the project will have more actions
and will require more time for the withdrawal of the license.

In some places it will require some laboratory tests due to the innovation of the process,
to attend to these cases EKT counts on partnerships with several technical and academic
institutions that provide the necessary certificates, besides already having an important
collection of technical laboratory tests. It is important to have an open dialogue with the
environmental certification bodies and the academic centers so that the process can be
continuously improved.

Step 4: Manufacture of Equipment

For each project a physical-financial schedule is developed, containing the manufacturing

stages of the equipment, as well as the financial stages to be overcome. The
manufacturing of the equipment is directly related to the investment schedule due to the
high manufacturing cost and the complexity of the production process of the machines.
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Step 5: Installation

The installation of the equipment is the responsibility of EKT, but the location and real
estate of the business is the customer's responsibility, followed by guidance from the
technology supplier on the best location and the most suitable environment for project
implementation. The EKT performs the assembly of the machines, the try-out and the
start of the plant itself.

Step 6: Training

The training is carried out in three moments of the project: During the production of the
equipment the customer operator (s) is trained in a plant that uses the EKT technology
(s). The goal is for the operator (s) to become familiar with the technology and understand
the best formulation for each product.

At EKT during the final part of the equipment production. At this point, the technicians
of the client will be able to learn the maintenance part of the equipment while the sub-
assemblies are assembled, besides understanding how the machinery is manufactured
and what the logic of its modules.

In the period of try-out and departure of the equipment, it happens all on the
dependencies of the client's business. Where the machines are installed and the first
samples taken, as well as the final formatting of the formula of the desired product.

The equipment is accompanied by technical manuals containing the standards and

aspects to be considered, and EKT maintains continuous technical support for the
operating plans of its customers and partners.

Step 6: Operation

The operation of the plants is carried out by the client and according to the business
model, being the responsibility of EKT the necessary technical support for maintenance
of the technology and update in the programs.

Step 7: Commercialization

The commercialization of the products can be done through the commercial area of the
new plant or through EKT's trading partners. It may be the customer's responsibility or
EKT has a partner company to carry out the sales of the products.

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It should be noted that EKT projects rely on the development of a new product and that
depending on the place to be marketed, it will need a specific market penetration strategy,
since it is a product with specific characteristics and with a high index of innovation
technological. Economic aspects of each product are referenced in this Business Map
within the item "Utilization Options".

Step 8: Average Time for Installation

The implementation period, including the production of the equipment, varies according
to the size of the equipment, and can vary from 120 to 360 days, or more in specific cases.
All deadlines are marked in the physical-financial schedule and respect the deadlines for
capital contribution by the investors / clients.

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4.0 OUR TECHNOLOGY

The processes developed by EKT UGANDA uses technology developed by the company
itself, within its Engineering Center and over the years have undergone several updates
resulting in the current process. The goal is to continue to seek improvements so that
green technologies can benefit more people and the effectiveness of the system is even
greater.

All the equipment in the process has intellectual property registration, and the way EKT
UGANDA relates to its customers is through technology transfer agreements and
machinery. Each case requires a specific study to understand the best way to serve the
customer, and as a result, the equipment that integrates each project has different
characteristics, as well as the formula for each final product (since this aspect depends on
the characteristics of the raw materials of each locality).

4.1 Our Technology

Transforms waste into Biosynthetic wood; Electrical Energy; Gas; Oil etc. Inventor: Carlos
Walter Flister (Brazilian), Patents Required

Characteristics of the process:

 Does not use water or chemical additives;

 Does not generate waste -all leftovers are reused in the process;
 It does not generate any kind of pollution, without emissions and effluents;
 Accepts practically all types of waste;
 It allows the processing of waste that is not used in traditional recycling methods,
including organic;
 Eternally recyclable in the same process.

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4.2 How It Works

4.3 Plant Sizing Options

Depending on availability, types of waste and consumer markets, a study is conducted

to define the most appropriate technology in each case. A survey of the composition of
the waste and the volume produced, as well as the best way to deal with them is done,
and from there it is possible to implement the ecological technology of the EKT.

The table below is a suggestion of process feasibility. Technically it is possible to develop

equipment for any amount of waste (minimum or maximum):

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Table 1: Process Feasibility by Plant Size
Up to 10 10 to 25 25 to 50 50 to 100 to 250 >250 Tons
Tons Tons Tons 100Tons Tons
BSW (ISW) X X X
BSW (USW) X X X X X
IBSC (solid fuel) X X X X X X
Heavy Oil, Syngas and
synthetic coal (fuel) X X X X X X
Electrical energy (direct) X X X
Electrical energy (moto
generator) X X X
CBIO (fertilizer)** X X X X X X

*Above 50 tons the BSW is made from direct burning ashes combined with plastic waste
** CBIO is produced only with organic waste

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4.4 What Is IBSC For?

We can clean the world transforming waste into IBSC Industrial Bio Synthetic
Compound and from it:

 Fuel for furnaces or boilers: 1 kg IBSC = 4.000 kCal

 Generate electricity: 100 tons generate 150 MW
 Produce synthetic biodiesel: 100 tons IBSC = 35.200 lt + 59 tons of charcoal
 Produce biosynthetic wood: 1 ton IBSC = 1 ton BSW

4.5 Tropical High Forest Cover Saving Analysis

It is estimated that about 2,500 tons of waste is generated in Kampala City per day, of
which about 35–40% is collected and transported to the dumping site at Kiteezi/Ddundu.
Based on the analytical findings of Kampala municipal solid waste being 88.5% organics,
3.8% soft plastics, 2.8% hard plastics, 2.2% paper, 0.9% glass, 0.7% textiles and leather,
0.2% metals, and 1.0% others, we have assumed that the conversion ratio of municipal
solid waste to IBSC Industrial Bio Synthetic Compound will be 90% of the original
municipal solid waste [MSW] mass after removal of non-convertible inorganic waste
such as soft and hard plastics, glass and metals.

Using the IBSC: MSW conversion rate of 90%, the various derivative products that can be
generated from the inflow municipal solid waste processed annually is calculated in
Table 2 below.

Table 2: Estimation of Maximum Product Quantities to be Generated Annually by EKT UGANDA

Product/Year 2015 2020 2025 2030
Kampala Annual MSW Generation [Tons p. a.] 912,500 1,164,607 1,486,366 1,897,022
Kampala Annual MSW Collected [Tons p. a.] 365,000 465,843 594,547 758,809
Maximum IBSC Generated [Tons p. a.] 328,500 419,258 535,092 682,928
Maximum Electricity Generated from IBSC Generated [MW p. a.] 492,750 628,888 802,638 1,024,392
Maximum Biodiesel Generated from IBSC Generated [Lts p. a.] 115,632 147,579 188,352 240,391
Maximum Charcoal Generated from IBSC Generated [Tons p. a.] 193,815 247,363 315,704 402,927
Maximum BSW Generated from IBSC Generated [Tons p. a.] 328,500 419,258 535,092 682,928

Table 3 shows the feasible derivative products that can be generated using IBSC
processing ratios of: electrical energy (30%); biodiesel (30%); charcoal (20%); and BSW
(20%).

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Table 3: Estimation of Feasible Product Quantities to be Generated Annually by EKT UGANDA
Product/Year 2015 2020 2025 2030
Kampala Annual MSW Generation [Tons p. a.] 912,500 1,164,607 1,486,366 1,897,022
Kampala Annual MSW Collected [Tons p. a.] 365,000 465,843 594,547 758,809
Feasible IBSC Generated [Tons p. a.] 328,500 419,258 535,092 682,928
Feasible Electricity Generated from IBSC Generated [MW p. a.] 147,825 188,666 240,791 307,318
Feasible Biodiesel Generated from IBSC Generated [Lts p. a.] 34,690 44,274 56,506 72,117
Feasible Charcoal Generated from IBSC Generated [Tons p. a.] 38,763 49,473 63,141 80,585
Feasible BSW Generated from IBSC Generated [Tons p. a.] 65,700 83,852 107,018 136,586

Table 4 below shows the tropical high forest cover area in Uganda that can be saved from
the utilization of Bio Solid Wood (BSW) on the assumption of processing all the Kampala
city annual municipal solid waste input [100%] into IBSC for conversion into BSW.

Table 4: Feasible Forest Cover Savings

Forest Product/Year 2015 2020 2025 2030
Natural Forests
Wood fuel (firewood and charcoal) – ‘000 m3 41,270 51,292 55,679 60,468
Industrial round wood – ‘000 m3 3,866 4,761 5,862 7,219
Total Volume ['000 m3] 45,136 56,053 61,541 67,687
Total Weight [Tons] 27,939,184 34,696,807 38,093,879 41,898,253
Uganda Harvested Area (Hectares) 626,889 778,514 854,736 940,097
Kampala Annual MSW Generation [Tons p. a.] 912,500 1,164,607 1,486,366 1,897,022
Kampala Annual MSW Collected [Tons p. a.] 365,000 465,843 594,547 758,809
Feasible IBSC Generated [Tons p. a.] 328,500 419,258 535,092 682,928
Feasible BSW Generated from IBSC Generated [Tons p. a.] 328,500 419,258 535,092 682,928
Volume of Generated BSW [m3 p. a.] 530,695 677,316 864,446 1,103,276
Potential Tropical Forest Area Saved [Ha p. a.] 7,371 9,407 12,006 15,323

Assumptions for Calculation of Tabulated Data:

1. Density of tropical hardwood = 0.619 Tons/cubic metre

2. Tropical High Forest stocking Density in Africa = 72 cubic metres/Hectare
3. Percentage annual increase in Kampala-generated MSW = 5% p. a.
4. Percentage of annually collected MSW to annually-generated MSW = 40%

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5.0 PRODUCTS & THEIR UTILIZATION OPTIONS

5.1 IBSC [Industrial Bio Synthetic Compound]

Industrial biosynthetic compound used as solid fuel for furnaces and boilers, and also for
the production of electric energy. It can easily replace mineral coal, wood and fuel oils,
as it has great calorific power and low cost.

IBSC is an industrial product, which came out of the category of waste, coming mainly
from the USW, in a decontaminated form of heavy metals and ammonia, in dry form and
powder state. In comparison to USW, IBSC has a volume reduction of up to 7x, an
apparent density increase of up to 6x and a high calorific value.

5.2 BSW [Bio Synthetic Wood]

Biosynthetic wood is produced through an exclusive and patented technological process

(equipment and products) where it processes urban solid waste, industrial solid waste
and / or agricultural solid waste. The process has great economic expression, since it
produces a material with high added value at a low cost.

Biosynthetic wood absorbs 100% of plastic waste and solid loads, which can be fibers
(natural or industrial), mineral loads (mining waste), animal fibers (leather, hairs, etc.),
among others; does not require chemical additives and does not generate waste.

Biosynthetic wood (BSW) has several applications in different sectors of the economy,
such as: in industry, civil construction, architecture, logistics, domestic use, agribusiness
and many other possibilities.

Bio Synthetic Wood (BSW): Can replace natural wood, fiberglass, aluminum, steel, etc.
 Non-polluting;
 Hardness equivalent to the best natural hardwoods;
 Thermal, acoustic and electrical insulation;
 Water-proof;
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 Not susceptible to pests, cracks;
 It can be painted, glued, welded, nailed and machined;
 It can be fireproof.

5.3 Heavy Oil

The production of oils is made from the IBSC, allowing a high yield in the production
through the pyrolysis method, because the system is fed with a dry, high density pre-
heated raw material (IBSC) making the process economically viable.

In the traditional processes of pyrolysis, the positive economic result is not common
because the raw material (USW) has low apparent density and a high moisture content
(about 50%), requiring that much of the energy generated in the process and time be
consumed to dry the raw material.

It can be used for generation of electric energy by generators and / or Rankini system
(boilers and turbines), industrial processes (eg asphalt production), from heavy oil we
can obtain biosynthetic diesel, refining heavy oil and without mixing with diesel of
petrochemical origin.

5.4 Coal & Syngas

Biosynthetic charcoal and syngas (fuel gas) are produced concurrently with heavy oil,
both of which can be used as fuel sources in industry and in thermoelectric generation.
Biosynthetic coal is used in the substitution of mineral coal, collaborating for the re-
extraction of extractivism and implementing a new energy matrix.

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5.5 Electric Energy

Electric power can be produced in traditional thermo electric systems (Rankini system)
using IBSC as solid fuel instead of coal, wood and fuel oils. The production of energy in
this case with IBSC has the advantage of generating little ash (around 3%) and having
low harmful atmospheric emissions rates because during the production of IBSC the
waste is decontaminated.

The calorific power of IBSC, originating from the USW, is in the range of 4200 to 4500
Kcal / kg, superior to wood and coal mined in Brazil. In comparison to fuel oils has about
half the calorific value of the oils, but even if using 2x more IBSC, to equate the calorific
value, the cost becomes much smaller.

5.6 BioC [Bio Organic Fertilizer]

The bio-organic fertilizer is a compound that originates from the processing of organic
waste. 100 tonnes of industrial biosynthetic compound equals 100 tonnes of bio-organic
fertilizer. CBIO is produced only with organic waste.

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5.7 EKT Products’ Advantages

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6.0 SYNOPSIS OF EKT TECHNOLOGY SOCIO-ECONOMIC BENEFITS

By methods used until now, large part of recyclers generate pollution and tailings (which
go to landfills). EKT Technology is the only one that does not use water, chemical
additives or pollution of any kind. Nothing goes to the landfill.

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7.0 PROPOSED CORPORATE STRUCTURE & BUILDING OF ALLIANCES

The legal regime of EKT UGANDA will be a company by shares of limited liability
between companies (parties). It will be under the normal accounting regime of presumed
profit because we will not buy inputs from third parties nor electric power and therefore
there will not be tax credit.

7.1 Management Team

It will be fully professionalized. Its strategic professionals will be trained in the plants in
operation and will be totally skilled to start as soon as the equipment is ready.

7.2 Outsourcing and External Support Team

EKT UGANDA will heavily use outsourcing to maintain a lightweight and agile
structure. Thus accounting, security, cleanliness and part of the sales sector will be
outsourced. Whenever necessary, outsourcing will be a guideline to be followed.

7.3 Building Alliances and Partnerships

In order for the EKT UGANDA project to be feasible, ALLIANCES and PARTNERSHIPS
will be necessary to develop the feasibility of systems and products both with other
companies and with Quality and Certification Institutes.

Our products can be marketed in conjunction with other companies, such as

manufacturers of dry construction systems or "DRY WALL". Such a partnership would
immediately open thousands of resellers throughout Uganda and worldwide. We will
also consider the manufacturers of HOUSES, SILOS, BODYWORKS and FORMS FOR
CONCRETE.

We believe that we already have clients in the sector of road implements and
manufacturing of construction systems for HOUSES, SILOS and CONCRETE FORMS
with capacity to consume the entire production of the company.

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