Equipment News & Updates for March 2007

White Paper Filed With DARPA
In our last issue, we announced the release of the white paper illustrating the unique properties of our Mg(OH)2 and MgO Nanoplatelets and how they may be used to successfully decontaminate sensitive electronic and aviation equipment. The white paper was filed with the Defense Advanced Research Projects Agency (DARPA), which is the central research and development group for the Department of Defense.

Georgia Tech/Mohawk R&D Contract
Georgia Tech has submitted a proposal to the State of Georgia for funding to perform a series of tests to prove the fire retardant capabilities of our Magnesium Hydroxide.  The results of the R&D proposal between Georgia Tech, Mohawk Carpet and Aqua Resources will be announced in April.

R&L Engineering  
R&L Engineering has completed the initial drawings for a full scale plant as well as our pilot facility on Stafford Drive in Fort Walton Beach. They have also executed a contract with Aqua Resources to fabricate a 2-cell full-scale production precipitator for our Stafford Drive plant. This 2-cell unit is designed to operate with the exact parameters of a full-scale plant. A full-scale production precipitator with 60 to 100 cells targeting 6,000 pounds per day will then be fabricated, to be used at a production plant.

Later this month, R&L will be running the explosive drying technique; Lee will take the resultant samples to Tim Vander Wood to be imaged.

Dominion Chemical
Jerome Titshaw and Lee met with Wilson Ferrell, founder and CEO of Dominion Chemical, in Petersburg, Virginia. They were given a tour of the facilities, and, according to Lee, “had a great discussion.” Dominion consumes 900,000 gallons of bleach annually. This amount of bleach alone should finance a small plant on their site. Also, according to Lee, we have agreed in principle that this project will go forward.

New Items:

Commission Formed to Explore Business Model
Aqua Resources has formed a commission to develop, along with Dominion Chemical, a business model to begin production. This commission is comprised of three Aqua Resources shareholders: Paul Hederi, who serves on Aqua Resources board of directors, Wayne Pate, retired CEO of Golden Flake Snack Foods, and Dennis McKeever, retired Vice President of Dow Chemical Company.

DC Meeting Prompts Potential New Venture
Lee Maddan, Jerome Titshaw, and Tim Vander Wood met with the liaison to military and congressional staff on DOD matters in Washington, DC. During the course of this meeting, it was suggested that Aqua Resources contact the Special Operations group at Hurlburt Field in Florida. This contact has led to two highly productive meetings at Hurlburt Field with a proposed follow-up meeting to be held at Oak Ridge National Laboratory in April with representatives of several Federal agencies invited.

Special Operations has expressed a special emphasis on coatings as preventive measures for aircraft. They are also very interested in using our products to protect uniforms from chemical and/or biological attacks.

Lee subsequently met in Pensacola with Dick Welch, CEO of Portland-based Associated Chemists, and Incorporated (ACI). ACI is very interested in producing the coatings for the tests of this project.

And Dr. Donggang Yao (Assistant Professor of the School of Polymer, Textile & Fiber Engineering at the Georgia Institute) said that it’s entirely possible that Georgia Tech has, or can develop the correct type of fibers that would allow the use of our product for these specialized uniform and other textiles.