Equipment News & Updates for October 2007

This has been a busy year so far at Aqua Resources!

We have made great progress in the paper, plastics, and textile industries. We’ve added several new products to our materials line, developed an excellent and ongoing relationship with a national laboratory, and are in the process of working with a leading university and a DOD body armor contractor to evaluate our product in producing body armor for our troops. Our Stafford Street pilot plant in Fort Walton Beach, Florida is getting ready to begin its small-scale production in preparation for our first full-scale production plant. And, as reported in last month’s newsletter, we have successfully patented our exclusive technology (four US patents and one international patent that is good in over 100 countries).

The Big Idea
In July of this year, Florida Governor Charlie Crist issued an Executive Order to reduce Carbon Dioxide (CO2) emissions by 2017. Carbon Dioxide has been shown to have an extreme impact on the environment. And it’s having an alarming affect on the PH levels of the world’s oceans. Locally, a coal-fired power plant produces 1.1 million pounds of CO2 per hour, and produces 1.3 million feet per minute of flue gas.
Lee believes that Aqua Resources process can provide an environmentally friendly solution to this critical environmental issue by using seawater to chemically reduce carbon emissions. He and a small team pulled together for this important project have been working on the feasibility of the project.
Thus far the team has determined that: (1) the science of chemical reduction is feasible; (2), the sequestering and handling of the CO2 volumes of material at one million pounds per hour is feasible; (3) the engineering and installation is possible but expensive, and (4) the operational cost appears to be too high!
While science allows for this environmental solution, the cost does not. This is one that won’t work so we move on.

SBA Offers Potential for R&D Funding
The Small Business Administration offers the Small Business Innovation Research (SBIR) program, which funds early-stage R&D funding to small companies. Aqua has many possibilities for this funding, including the carpet fiber enhancement that Mohawk has shown interest in, the decontaminates as delineated by one of our National labs, and sundry other Nano products.
If a proposal is accepted, we would receive up to $100,000 in funding to prepare a study. If the study looks good, the SBIR program would then provide up to $750,000 directly to Aqua Resources in order to develop a working prototype. This could turn out to be very important in Aqua’s growth.

Two-Second Success
We’ve had great success in getting our material in the carbon fiber composite to stop burning at the two-second mark. Now, a leading university is researching a commercial application for our material in rip-stop nylon.

Body Armor Back On Track
The bureaucratic hurdle reported in last month’s issue has been resolved. Our product is now being evaluated to see if it will make body armor safer and lighter.

Pilot Plant Gearing up for Small-Scale Production
The new and improved centrifuge is almost ready. Lee will be picking it up in Indianapolis and bringing it back soon. And we’ve been told that the new precipitator is almost ready. It should be shipped to our pilot plant shortly. Once the equipment is in our pilot facility, all the elements will be in place for small-scale production.
Lee has set some specific goals for our pilot plant. These goals are: 1) allow us to develop Standard Operating Procedures to isolate production variable and well as document procedures for the first production plant; 2) a capacity to produce 100 pounds of product daily; 3) send samples off for assaying, imaging, and analysis; and 4) sell the samples to material scientists for testing and development purposes.
We anticipate selling quite a few samples, which will include all the metallic hydroxide compounds as well as dozens of metal types we can, and will be, producing. This will not only provide a small amount of income; but, will, hopefully, get our products in a lot of people’s hands and make things start happening.
The Pilot Plant will host an open house for all stock holders and guests November 16, 2007 from 8:00 AM through 5:00 PM. Come and see what we have done!

MVA Scientific Consultants of Atlanta Ga. Newsletter
The MVA newsletter that features Aqua Resources is included in this package. It’s an interesting read. More importantly, it goes out to material scientists, so the good word about Aqua Resources continues to spread.

Shares Available to Current Stockholders
Looking to add shares to your current holdings? Contact Bill Harris (bh2@cox.net) or Jim Moore (provertycreekjim@aol.com).

That’s it for this issue. See you at the Annual Meeting! And don’t forget the Open House.

Check your Mailbox
A packet containing material for the Annual Meeting will be mailed by October 15th. In addition to the meeting material, the mailing will contain a hard copy of this newsletter and a copy of the MVA Scientific Consultants Newsletter. The MVA newsletter features Aqua Resources. It’s an interesting read. More importantly, it goes out to material scientists, so the good word about Aqua Resources continues to spread.

By the way, if you do not receive your Annual Meeting packet by November 1, that means we do not have a correct address for you. If you have recently moved, please update us with your current address, telephone number, and, if applicable, your email address by sending an email with the corrected information to Rich Adams at rich.adams@aqua-resources.com.