THE PROCESS

Micro Oil's process eliminates the need to segregate used oil sources and grades. This makes the operation very simple and inexpensive compared to other existing processes for re-refining used oils.

The used oil is first filtered to remove solid debris.  The filtered oil is then analyzed in order to determine which contaminants are present.  Water, which is always present, is then removed.  The metals are removed through Micro’s process.  At this stage, the re-refined oil can be sold as burner fuel without further treatment.  Micro’s burner fuel is superior to other burner fuels because it is cleaner and creates less residue in the burners thereby requiring less maintenance and saving additional costs.  Burner fuel is used by many plants including pulp mills, lime kilns, soil burners, refineries and asphalt plants.

Micro Oil's process eliminates the need to segregate used oil sources and grades.  This makes the operation very simple and inexpensive compared to other existing processes for re-refining used oils.

The used oil is first filtered to remove solid debris.  The filtered oil is then analyzed in order to determine which contaminants are present.  Water, which is always present, is then removed.  The metals are removed through Micro’s proprietary treatment process.  At this stage, the re-refined oil can be sold as burner fuel without further treatment.  Micro’s burner fuel is superior to other burner fuels because it is cleaner and creates less residue in the burners thereby requiring less maintenance and saving additional costs.  Burner fuel is used by many plants including pulp mills, lime kilns, soil burners, refineries and asphalt plants.

Additional proprietary treatment is applied to produce many other products such as invert mud (an oil and gas drilling lubricant), dedust oil (for use in the potash industry), and #2 diesel fuel.  Diesel fuel made by Micro Oil is substantially higher in quality than diesel made by any other process.  This valuable product is used for home heating, industrial boilers, marine fuel, and many other heating and industrial applications.

Micro Oil’s process is a patent pending technology with extensive consideration for present and future environmental regulations.  This technology has been developed and tested over the past four years, and since early 2000 has been applied on a commercial scale with great success.  Micro Oil's proprietary systems allow the Company's products to be produced at significantly lower costs and with a greater range of products than from methods now being used by anyone else in the used oil industry.  As governments worldwide push for increasingly stringent controls on disposal of used lubricants, Micro Oil Refining Corp., with its unique processes, is destined to become the industry leader.

THE PLANT

The Micro Oil processing plant treating 3 – 4 million gallons annually can be constructed in a light industrial zone.  Each plant requires less than 2 acres with a 4,000 to 5,000 square foot building having three phase power of approximately 400 amp service.  An 80,000 gallon capacity tank farm with a load/unload area is required.  A small quality control laboratory , administrative offices and employee  facilities completes the requirements.

The plant requires a team of 4 operators for 24 hour a day, 7 day a week operations.  A high school graduate with some formal technical training can operate the plant.  Micro Oil has developed a comprehensive training and operations manual for the operators.

TARGET MARKET FACTS

Micro Oil's current annual production is only 4 million gallons.  This only allows for supplying any one the following:

Other users of our products include off road equipment and vehicles used in the logging, construction and the mining industries.  Large contractors can easily consume Micro Oil's current annual production.  Marine fishing boats or trawlers require large quantities of fuel and are always searching for economical fuel blends.  Considering the size of the bunker fuel market, it will take only a few boats to consume Micro Oil's current annual production.

The Washington State Department of Transport buys 42 million gallons of #2 Diesel Fuel annually for its needs.  The State Ferry System alone consumes almost 20 million gallons.

According to the Oil Heat Institute of Seattle, there are over 150 distributors of Fuel Oil for residential and commercial use in the state.  Last year, 120 million gallons of fuel oil was sold.  These established distributors of heating oil represent a ready market for # 2 Fuel.

There is a great need to expand Micro Oil’s operations and take advantage of these market opportunities.

MASSIVE POTENTIAL FOR EXPANSION

Today, Micro Oil Refining Corp. is a privately owned single processing outlet in Tacoma, Washington projecting current annual revenues of approximately $6 million.  Immediate plans call for expansion into a much larger facility that would include a tank farm and a collection fleet that would increase production and revenues tenfold.

Micro Oil can expand its operations by either setting up company owned operations or licensing/franchising its plants.  A highly efficient and compact plant can be built, assembled, and put into operation for $1,000,000.  This is relatively inexpensive considering the short payback time and earning power.  The service area is a population base of 1,000,000 within a radius of 250-500 miles.

Micro Oil Refining Corp.'s potential for growth is exponential.

North American Expansion

Cities and towns across North America are increasingly faced with the problems and costs associated with the disposal of used oil.  The processes developed by Micro Oil addresses these issues.  A political environment exists that is highly receptive to what Micro Oil has to offer.  Used oil recycling plants can be easily and profitably established anywhere in North America.  With a highly industrialized population exceeding 300,000,000, the potential for expansion is staggering.

A World View

Industrialized and Third World nations face the same used oil disposal problems as North America and the answers are the same: Micro Oil's proprietary processes turn a problem into a profit.  Expansion to Europe, now rapidly closing in on North America's industrial and commercial dominance, is a natural target for expansion beyond the North American continent.  In fact, used oil disposal problems are even greater in Europe simply because more people are packed into a smaller space. This last fact demonstrates the massive international applicability of Micro Oil's systems.  The same holds true for Asia.  Less industrialized regions, like Africa, while having somewhat less quantities of used oil to deal with, are no less subject to the same problems, but with fewer remedies.

Micro Oil's systems are the long-term answer.

ENVIRONMENTAL CONSIDERATIONS

A 1990 study conducted for the Department of Trade and Economic Development (DTED) and State of Washington Committee for Recycling Markets reports that Washington State alone generates approximately 26 million gallons of used oil.  Aggressive efforts collect about 70% of this oil.  Most of it is burned unprocessed or is blended with Bunker Fuel oil.  Much of the used oil is disposed of by burning and only adds to pollution.  A very small amount is recycled to produce petroleum distillates; however, the contaminants in the used oil severely limit this re-use.  Used oil can be an environmental liability and the costs of disposal are rising every year with increasingly stringent environmental regulations.

Micro Oil Refining Corp.’s proprietary processes change that.

Micro Oil treats all used oil in an environmentally responsible manner, and complies fully with all applicable laws and regulations.  The Company is involved in the transport of the used oil to the refining site and transports the re-refined diesel fuel and base oil to the consumer.  The risk of spills on the project site is reduced by the following actions:

The Micro Oil process can treat any used oil without harmful by-products.  Micro Oil’s refining systems can process used oils into high-grade Industrial Burner Fuel, MDO (Marine Diesel Oil), #2 Diesel Fuel and many other industrial lubricants.  The refined oil is sold as heating fuel for residential, commercial, institutional and industrial users.  It is sold for agricultural, construction, logging, and mining equipment applications.  It is sold for oil and gas well drilling lubricants.  The refined oil has many, many other uses.

Micro Oil Refining Corp., with its unique processes, is destined to become the industry leader.