### Chris Krejci - RE: In stallation Locations

Greetings, Brent - Ron is out of the office this week and I am responding to his e-mails. I've reviewed the emails Ron wrote to you this past September and Octobe r with regard to our IonF lo process, a novel ion exchange process for removing up to 10,000 ppm TDS in produced waters.

Our full-scale commercial IonFlo process was deployed in the Powder River Basin of Wyoming, with treatment capability of 10,000 bbl/day, and we did successfully treat water at two sites in Wyoming. Following all the development work, we had an agreement with a gas comp any to re-deploy our Drake Process Unit (DPU) in the fall of 2010 at a site south of Gillette; however, when the price of natural gas fell to belo w $5.00/1,000 cu ft, the gas company reneged and told us not to come. And unfortu nately, that is the status of our DPU today - it is sitting in our shop in Helena looking for a home!

One of the unique features about PRB water is that it is a sodium bicarbonate water, only requiring removal of the sodium cation as the bicarbonate anion naturally attenu ates as the sodium is remo ved. That is what our IonFlo process was originally designed for. However, in looking at other produced waters around the world, it is clear that both a cation and anion removal process is re quired. We have since developed a totally integrated process for removing both cations and anions from waters, and have done so under a contract with an Australian producer. I am attaching a photo of our p ilot scale unit, which was designed for a 16 liter/min throughput. We have successfully demonstrated TDS re moval and are anticipating deployment of the pilot unit in Australia later this year.

We are also in the development stage of another technolo gy called "SolFlo". You can read more about it on our website http://DrakeWater.com . It is desiged for TDS removal between 50,000 and 400,000 ppm. We have two provisional patents pending and anticipate having a b enchscale model constructed and tested this spring.

If I can provide any additional information, please let me know.

Regards, Vivian



### Vivian Drake Chief Operations Officer Drake Water Technologies, Inc.
7492 Commerce Court, Suite B
Helena, MT 59602-9677 Telephone: 406.449-2440

Cell: 406.431.7210

-----Original Message-----
From: Ron Drake [mailto:zeus1@bresnan.net]
Sent: Wednesday, January 18, 2012 9:41 AM
To: vivian4@qwestoffice.net Subject: FW: Installation Locations

From: Brent Ruminski [mailto:Brent.Ruminski@erg.com] 

### From: "Vivian Drake" <vivian4 @ qwestoffice.net>
To: <Brent.Ruminski@erg.com>
Date: 1/18/2012 12:03 PM Sub j ect: RE: Installation Locations
CC: "'Ron Drake'" <zeus1 @ bresnan.net>
Attachments: DWT Pilot Plant. j p g Pa g e 1 of 2

1/18/2012 file://C:\Documents and Settin g s\CKre j ci\Local Settin g s\Tem p \XP g r p wise\4F16BFC6DO

...Sent: Tuesday, January 17, 2012 3:28 PM
To: Zeus1@bresnan.net Subject: Installation Locations

Ron,

You may remember me from back in September. I am the engineer at Eastern Research Group, Inc that contacted you about your ion exchange technology. We are a contractor to EPA. A coworker of mine is working on a project and would like to know a little bit about the installation locations of your ion exchange technology (or past installations). We are trying to gather indust ry profile data for the Coalbed Methane Rulemaking. If you could indicate general things like is it full scale or pilot scale, is it treating CBM water or other water that would be great.

If you have any further questions please don't hesi tate to call me at my office phone number below.

Thanks,

Brent Ruminski 

### Pa g e 2 of 2

1/18/2012 file://C:\Documents and Settin g s\CKre j ci\Local Settin g s\Tem p \XP g r p wise\4F16BFC6DO

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