TITAN Technologies, Inc.

Q: A:	WHO IS TITAN TECHNOLOGIES, INC.? Titan Technologies manufactures and licenses technology to recycle tires using true tertiary recycling technology.

Q: A:	DESCRIBE TERTIARY RECYCLING Breaking material down to components that composed the original product.

Q: A:	HOW DO TITAN RECYCLING PLANTS WORK? By running automobile tires that have been shredded to approximately 6” diameter through a low temperature process of approximately 450° F, and extracting oil, steel and carbon black for resale. Research and development undertaken in the last year has established that the carbon black can be converted into activated carbon, which commands a significantly higher market price than carbon black and appears to be accessible to a greater number of markets. The conversion can be accomplished with off-the-shelf commercially available equipment. Some loss of product is incurred in the activation process, but this is expected to be more than offset by the higher price. The most attractive markets for the activated carbon appear to be for waste water treatment and removal of mercury contained in flue gases generated by coal-fired electric generating plants, although there also appear to be niche markets available which could obtain premium prices.

Q: A:	HOW MANY SHREDDED TIRES CAN A TITAN PLANT PROCESS IN ONE DAY? Approximately 15,000 car size tires or 150 tons of shredded tires. However, it would be relatively easy to double capacity by addition of a second pyrolysis reactor.

Q: A:	WHAT RESOURCES ARE AVAILABLE TO SUSTAIN SUCH AN OPERATION? According to the Scrap Tire Management Council, in a publication dated September 11, 1990, over three billion (3,000,000,000) tires are currently stockpiled in this country alone, and a quarter billion more are discarded each year. Simply to handle current discard, 50 Titan plants would have to be built, and this would not take one tire off existing stockpiles. Titan’s efforts during the past few years have established that supplies of whole or shredded tires are available at a number of locations throughout the country. Supply of tires is not a problem and can in fact be a source of revenue as a result of “tipping fees” paid by states and counties for recycling tires.

Q: A:	IN A PLANT THAT OPERATES AT 150 TON CAPACITY, WHAT RESOURCES CAN YOU EXPECT TO RECOVER IN ONE YEAR? Conceivably, you can expect to generate over $10 Million in revenue per year from the following breakdown: 165,000 barrels of oil approximately $9,900,000 (based on $60.00/barrel oil price). 11,880,000 pounds of steel wire approximately $1,188,000. 29,900,000 pounds of carbon black approximately $14,950,000. 7,920,000 pounds of gas used to provide process heat.

Q: A:	DO TITAN’S RECYCLING PLANTS POLLUTE THE ENVIRONMENT? No. The Texas Commission on Environmental Quality stated that zero emissions are produced from the facility.

Q: A:	CAN TITAN PROVIDE TEST RESULTS ON ITS BYPRODUCTS? Yes, Titan has independent test results on all of its byproducts. Further development from the Korean plants show that by cutting the gas vapors one additional time the oil produced becomes 95% bunker oil (marine diesel oil) and 5% naptha (with less than 1% heavy oil). This equates to about 20,350 gallons of oil per day from 15,000 average automobile tires. In the case of the activated carbon, Titan’s assessment of market potential is based upon discussions with independent experts in the carbon black industry.

Q: A:	DOES TITAN HAVE PATENTS ON ITS TECHNOLOGY? Titan, its affiliates and associates have numerous patents related to this technology and additional patents that are pending. Some of Titan’s proprietary technology shall be maintained as Trade Secret information.

Q: A:	WHAT CAPABILITIES DOES TITAN HAVE? Titan plans to license its recycling technology to third parties in exchange for up-front licensing fees and on-going production royalties. These fees and royalties are negotiable, as is the Territory which will be covered by any particular licensing agreement. Titan will also provide technical assistance in engineering, constructing and operating new plants (on reimbursable cost basis) and retain a certain amount of control with respect to changes or modifications from current plant design. Titan also has working relationships with engineering and construction management firms in the United States and other countries, which provides the ability to provide a turn-key plant. As developments warrant, Titan could also become involved as a joint venture partner in recycling plants and share in construction profits. It is expected that the duration of a license agreement will extend for the life of any plant or plants, but that an additional license fee and royalty will be charged for subsequent plants built by the same licensee.

Q: A:	HOW MUCH LAND IS NECESSARY TO CONSTRUCT A TITAN PLANT? Approximately 5 Acres for the recycling operation and storage of feedstock and 10 Acres if you plan a Gathering and Shredding Operation.

Q: A:	SHOULD THE BUILDING BE A CERTAIN SIZE? The building should be approximately 20,000 sq. ft. 200’ by 100’ and 60’ in height. The size of the Main Chamber is 28’H x 7’W x 45’L and should have an extra 6” of concrete under its structure. Building should have the electrical power availability of approximately 1000 KW.

Q: A:	WHAT IS THE COST OF A FULLY OPERATIONAL FACILITY? The actual cost of each plant will vary depending on site location, available infrastructure for the site, whether an existing building is available and whether or not it will include a shredding operation. Titan estimates that the turn-key contract cost for the initial U.S. operation, exclusive of site, building, infrastructure and shredder costs will be approximately $20 Million, which does include the activated carbon circuit, license fee and the costs of Titan’s technical supervision and assistance.

Q: A:	WHY DOES TITAN RECEIVE A ROYALTY? Because Titan will provide technical support and maintenance of the central processing unit during the lifetime of the plant and assurances that it will not establish another competing processing plant in the same geographical area thus causing competition for raw materials.

Q: A:	HOW MANY RECYCLING PLANTS HAS TITAN BUILT? One plant for Dong Kook Steel Material Company, Ltd in Chung-ju South Korea, one plant for Hannam Company Ltd. in Taegu, South Korea and one plant for Forest All Industry in Taipei, Taiwan, one portable R & D unit that is currently being used to test plastic waste, poultry waste and oil soaked sand.

Q: A:	WHAT ARE TITAN’S PROSPECTS FOR GROWTH? Titan, along with its research partner Adherent Technologies, has developed and is testing processes for tertiary recycling of commodity plastics, aircraft transparencies, auto shredder residue, used oil filters, composite materials and scrap electronics. Both the scale of the problem poised by plastics waste and the value of the by-products that can be reclaimed present an unlimited future for Titan’s environmental technology.