Beaufort Energy Solutions Incorporated

On April 24, 2007, we entered into a Licensing Agreement with Beaufort Energy Solutions, Inc. (“BESI”).  Under the terms of the agreement, we agreed to grant licensing rights for our gasification technology in the Province of British Columbia, Canada. The term of the agreement is 20 years and is renewable at expiration for a further period of 10 years. BESI must pay us a royalty of 10% of defined net income, to be paid within 30 days after the end of each quarterly accounting period.   Pursuant to the agreement, BESI will seek opportunities for our products throughout British Columbia to provide electric power generation and liquid fuels to supply local consumers, businesses, BC Hydro, government and semi-government end users.  Also, we anticipate that  BESI will pursue installation of our technologies for waste disposal, power generation, and productions of liquid fuels.

Re-Gen International Corporation

On April 9, 2007, we entered into a Licensing Agreement with Re-Gen International Corporation (“Re-Gen”).  Under the terms of the agreement, we agreed to grant licensing rights for our PyStR and gasification technology in the U.S.. The term of the agreement is 10 years and is renewable at expiration for a further period of 10 years. Re-Gen must pay us a royalty of 12% of defined profit, to be calculated each month, or a minimum of $30,000 every three months for the first year, whichever is greater. After the first year, the minimum will be adjusted to $60,000 every three months.

Re-Gen plans to l supply a chain of affiliated companies in one location with the needed energy drawn from biomass waste. Re-Gen plans  to begin a U.S.-wide campaign of recycling a certain biomass waste (railroad crossties) which until now has not been recycled. Our gasifiers and fuel preparation equipment will be directed to this market.  Our management believes that the U.S. will require numerous gasifiers and equipment to process the accumulated waste currently being generated.