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EPS Technologies, Inc. 

CFD24-7@ 

For the Utilization of 

NOxControl 

for 

Minorca Mines Taconite Plant 

Proposal #51411 

1415 First Avenue, Suite 500 

Mankato, MN 56001 

March 28, 2006 

www.epstechnologies.com 

Page 1 of9 

Phone: 507-625-2447 

Fax: 507-625-5593 
Company Overview 

CFD CFD 24-7® Advantages 

How the Technology Works 

Environmental Concern of the Technology 

Engagement Plan 

The Process of Engagement 

Tools and Specifications 

Assumptions 

Issues and Risks 

Equipment to be Tested 

Resource Requirements 

Entrance and Test Schedule 

Test Schedule 

Budget and Pricing 

Validity 

1415 First Avenue, Suite 500 

Mankato, MN 56001 

www.epstechnologies.com 

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CO. The CFD 24-t¥J is easily installed and can be maintained in any environment. 

CFD 24-7® Technology 

The CFD 24-7® technology was developed to address the reduction of NOx, CO and CxHy 

from the combustion process. The CFD 24-7 system injects a patented solution of platinum 

and rhodium, along with additional compounds. directly into the air stream of the burner to 

increase its efficiency. The result provides a more complete and cleaner burn of any fossil 

fuel. 

The platinum particles generate more oxygen radicals. which allows less excess air and the 

Rhodium particles inhibit the NOx formation. These particles subsequently adhere to the 

walls and continue to participate in heterogeneous catalysis. This process continues to 

improve the reaction of emission reduction. 

Advantages of CFD 24-7® Technology and In-Flame Catalysis 

The CFD 24-i K1 technology will maintain the same flame temperatures using significantly 

reduced excess air levels (where applicable). hence producing greater thermal efficiency. 

The greater combustion efficiency, will reduce CO emissions plus an overall NOx reduction 

and possibly a reduction in fuel consumption. 

How does the CFD 24-7®Technology Work? 

The aerosol droplets containing the catalyst pre-cursor salts from the catalyst solution are 

dried entering the warm region of the burner. The fine dispersion of salt particles 

decompose into active catalyst particles at high temperatures. This is similar to a catalytic 

converter in a car engine. 

CFD 24-7® contains salts of noble metals such as platinum. rhodium together with additional 

salts which have been predicted and found by experience to enhance performance. The 

catalyst is introduced into the flame as an aerosol into the inlet air. flame, or other suitable 

site where they are converted into an active catalyst. 

1415 First Avenue, Suite 500 

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Phone: 507-625-2447 

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burner modification, upgrades, and deep staged operations of post treatment add-ons. 

CFD technology is simple to fit and maintain, and only a short trial period is needed to 

prove its ability and claim, particularly since its action is almost immediate and the emission 

levels continue to drop over time. 

Any Environmental Concern of the Technology? 

The definite answer is NO. CFD 24

_

71H) technology is only used in parts per billion; the 

catalyst is utilized by the reaction of the process itself. Tests have not been able to detect any catalytic components in the gases entering into the atmosphere. 

1415 First Avenue, Suite 500 

Mankato, MN 56001 

www.epstechnologies.com 

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Phone: 507-625-2447 

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with a run rate of 200 MMBTUs per hour. 

The scope and objective is to demonstrate a reduction in NOx emissions utilizing CFD 24-i 

Technology. 

The Process of Engagement 

1. Establish a baseline of fuel consumption, particulate, NOx and CO emissions prior to 

introduction of CFD 24-i ID Combustion Catalyst. 

2. Establish a baseline of scheduled maintenance prior to introduction of CFD 24-7'1Y 

Combustion Catalyst. 

3. Install the CFD 24-i ID Direct Injector Systems. 

4. Adjust Catalyst Direct Injector to an optimum operating ratio of fuel rate and CFD 24-

7® . concentration. 

5. Monitor stack emissions at various intervals after installation of the CFD 24-7!l.l Direct 

Injector Systems 

6. Evaluate data and assess results. 

Tools and Specifications 

1. ECOM Six Gas Emissions Analyzer with Hardware and Software interface 

2. Laptop Computer with Excel Software and Printer 

3. Decibel Noise Analyzer 

4. CFD 24-7fi,J Delivery Systems - Five Delivery Systems, each with (180 gallon tank, 2 

redundant adjustable 110 volt pulsating pumps, 2 redundant flow meters, 1 tank 

stand, 1 spill containment vessel, plastic tubing, electrical cord, 1 delivery nozzle) and 

appropriate redundancy equipment 

5. CFD 24-7 Combustion Catalyst 

1415 First Avenue, Suite 500 

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Phone: 507-625-2447 

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intake air, (b) residence time, and (c) temperature during the trial period. It is essential to 

maintain a constant load at a mutually agreed upon level. 

Issues and Risks 

None 

Equipment to be Tested 

Case Number: 122005 

Equipment Description: Equipment Operation: 

Resource Requirements 

Personnel 

Natural Gas fired Taconite Dryer 

200 MMBTU per hour 

1. Minorca Mine to provide operational personnel (to be train on implementation and 

use of the CFD 24-71@ System that will be working on Minorca Mine Taconite Dryer) 

2. Two EPS Technicians 

3. One EPS Technologies Project Manager 

Entrance and Test Schedule 

Entrance Criteria 

1. Engagement approval by Minorca Mine with Purchase Order and deposit 

2. Baseline maintenance schedule and fuel cost data provided to EPS Technologies 

3. Measurement of Flue Gases to establish a baseline of NOx, Particulate and CO 

emissions 

1415 First Avenue, Suite 500 

Mankato, MN 56001 

www.epstechnologies.com 

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Phone: 507-625-2447 

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1. Establish emissions baseline 

2. Assess site requirements for CFD 24-7 1Y Systems installation 

I 3. Install CFD 24-7 · System 

Phase II (25 days) 

1. Begin injection of CFD 24-ilY 

2. Monitor emissions reduction to measure the effects of 24-il!l during 

this continuous run-time period 

1415 First Avenue, Suite 500 

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Phone: 507-625-2447 

Fax: 507-625-5593 
200 MMBTU's: $44,500 

The above budget and pricing for one month includes: 

1. CFD 24-iKl Combustion Catalyst, Delivery System and Carrier 

2. EPS Engineers 

3. EPS Technicians 

4. EPS Travel and Expenses 

Terms and Conditions: 

Deposit due at time of acceptance: 

$22,250 with balance of $22,250 due in 15 days 

After the initial 1 month application the budget and pricing for CFD 24-7®: 

Monthly Yearly 

200 MMBTU's: $ 38,497 $ 461.964 

Note: EPS Technologies, Inc. will issue discounts to Minorca Mine as follows: 

1% for a 12-month contract engagement 

3% for a 2-year contract engagement 

On-going Terms and Conditions: 

EPS to submit invoice on the 20th of each month to Minorca Mine with payment due in 

15 days. 

Taxes 

Buyer shall pay any tax imposed by any governmental body on the sale, delivery, use or 

other handling of CFD 24-7® sold hereunder or in connection with Proposal or any 

transaction contemplated hereby. 

1415 First Avenue, Suite 500 

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Phone: 507-625-2447 

Fax: 507-625-5593 
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or by loss of or damage to any of the products specified in the Proposal when caused directly or indirectly by acts of God, acts of government or military authority, casualty, riot, acts of 

Buyer, strikes or other labor difficulties, shortages of labor, supplies and transportation 

facilities or any other cause beyond EPS control. The schedule shall be adjusted in 

accordance with the impact of any such delay or postponement and the price shall be 

equitably adjusted to include all additional costs, including overheads, plus a reasonable 

profit thereon. 

Validity 

This quotation is valid for 60 days. 

Interpretation and Enforcement 

Any contract resulting from this Proposal shall be construed according to the laws of 

Minnesota without giving effects to the conflict of law provisions thereof and suit shall only 

be instituted for the enforcement thereof in any state or federal court situate therein . 

1415 First Avenue, Suite 500 

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Phone: 507-625-2447 

Fax: 507-625-5593 
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spreadsheet. NoX reductions are in the range 12.3% to 16.8% depending on the baseline. 

The NOx emission in tons/yr has also been calculated. Unfortunately you cannot add the emissions together as you did. 

If there are any days that can be omitted please let me know. 

Should the data be compared with the original agreed baseline agreement of 05/09/06? 

A practical question - where was the catalyst injected? Is there a post combustion zone at around 1200F where an additive could 

be injected? 

Best Wishes 

Bernard 

From: Dale Falkenborg [mailto:dale@epstechnologies.com] 

Sent: 22 June 2006 20:07 

To: Bernard Gibbs; Trevor Griffiths; Kashif Khan 

Cc: Sam Roy; Dick Lundin 

Subject: Calculations 

Bernard: 

ched are Kash's calculation of NOx to 3% excess 02 and my calculations of PPM to Tons of NOx. My calculations are in two 

s, one is Raw NOx data, the other is Corrected to 3% excess 02. 

Please review our calculations for correctness. Thank you for your help! Best Regards, 

Dale 

7/6/2006 
25-May 111 .04 19.58 132.8 19.39 170.39 18.92 276.22 18.13 

av reduction 87.48606 14.87% 123.1258 1573% 172.9717 2131% 231 .3467 1595% 

Reduction May base 2267% 1900% 2433% 1919% Nox3%02 1505.77 1574.252 1540.394 1784.96 

24-May 88.92 19.86 133.88 19.5 211 18.81 276.1 18.21 

88.92 13.48% 133.88 837% 202.9234 768% 238.1234 1349% 

21.41% 1192% 1122% 1683% 

Nox 3%02 1530.45 1711 .751 1807.129 1837.245 

7-Jun 106.35 19.6 139.91 19.35 219.59 18.78 271 .71 18.31 

85.08 17.21% 126.3703 1351% 208.1962 5.28% 243.385 1158% 

2480% 1686% 892% 1499% 

Nox3%02 1464.358 1615.735 1854.085 1877.841 

8-Jun 126 19.5 144 19.27 200 18.8 241 18.48 

A 93.6 892% 123.681 1535% 191.4286 1291% 231 .0413 1606% 

17.27% 18.63% 1625% 1930% 

Nox3%02 1611 1581 .35 1704.762 1782.603 

8-Jun 119 19.53 149 19.31 232 18.7 302 18.13 

B 90.33577 1210% 131.195 1020% 211 .9636 357% 252.9386 8.11% 

2015% 1369% 727% 1165% 

Nox3%02 1554.818 1677.421 1887.636 1951 .552 

12-Jun 105396 19.601 138.03 19.368 213.45 18.786 266.34 18.4 

84.38171 17.89% 126.1371 1367% 202.9491 767% 247.1635 1021% 

2542% 1702% 11 .21% 1367% 

Nox 3%02 1452.339 1612.753 1807.358 1906.994 

Overeall Av Reductions May Base 0.219534 0.161854 0.131989 0.159396 1682% 

1519.789 1628.877 1766.894 1856.866 1693.107 

Gross emissions 2033.812 ppm 3%02 based on May baseline Nox 

608.6793 Ibslhr 

2592.974 tons/yr based on 8520 hrlyr operation 
25-May 111 .04 19.58 132.8 19.39 170.39 18.92 276.22 18.13 

av reduction 87.48606 1487% 123.1258 1573% 172.9717 2131% 231.3467 1595% 

Reduction May base 22.67% 1900% 2433% 1919% 

Nox3%02 1505.77 1574.252 1540.394 1784.96 

24-May 88.92 19.86 133.88 19.5 211 18.81 276.1 18.21 

88.92 1348% 133.88 837% 202.9234 7.68% 238.1234 1349% 

2141% 11 .92% 11 .22% 1683% 

Nox 3%02 1530.45 1711.751 1807.129 1837.245 

7-Jun 106.35 19.6 139.91 19.35 219.59 18.78 271 .71 18.31 

85.08 17.21% 126.3703 1351% 208.1962 528% 243.385 1158% 

24.80% 1686% 892% 1499% 

Nox 3%02 1464.358 1615.735 1854.085 1877.841 

8-Jun 126 19.5 144 19.27 200 18.8 241 18.48 

A 93.6 8.92% 123.681 15.35% 191.4286 12.91% 231 .0413 1606% 

1727% 1863% 16.25% 1930% 

Nox 3%0 2 1611 1581.35 1704.762 1782.603 

8-Jun 119 19.53 149 19.31 232 18.7 302 18.13 

B 90.33577 1210% 131.195 1020% 211 .9636 357% 252.9386 811% 

2015% 1369% 727% 1165% 

Nox3%02 1554.818 1677.421 1887.636 1951.552 

12-Jun 105.396 19.601 138.03 19.368 213.45 18.786 266.34 18.4 

84.38171 1789% 126.1371 1367% 202.9491 767% 247.1635 1021% 

2542% 1702% 1121% 1367% 

Nox 3%02 1452.339 1612.753 1807.358 1906.994 

Overall Av Reductions 0.140787 0.128019 0097388 0125683 1230% 

Overeall Av Reductions May Base 0.219534 0.161854 0.131989 0.159396 16.82% 

1519.789 1628.877 1766.894 1856.866 1693.107 

Gross emissions 2033.812 ppm 3%02 based on May baseline Nox 

608.6793 Ibslhr 

2592.974 tonslyr based on 8520 hr/yr operation