Equipment News & Updates September 2009

            The next annual stockholders’ meeting for Aqua Resources Corporation will be held Friday October 30, 2009 at the Brooks Beal Center located at 100 Beal Pkwy NW in Fort Walton Beach, Florida (at the intersection of Beal Parkway and Yacht Club Drive.)  Registration for stockholders begins at 6:00 PM and the meeting will commence at 6:30 PM.  Stockholders should be receiving a notice in the mail and a proxy to fill out and sign if they wish for someone else to vote their shares.

Recently in the Spring 2009 Bulletin “Combating WMD” an official publication of the Air Force Operational Planning, Policy and Strategy’s Strategic Plans and Policy Division (AF/A5XP), AFSOC identified “nanoplatelets of magnesium hydroxide Mg[OH] 2 and magnesium oxide MgO, as an entirely new class of nanoparticles.  Of interest to the Air Force is the fact that nanoplatelet technology has shown promise to be one of the most effective and environmentally-friendly solutions for countering the chemical and biological warfare threat, both preemptively and post-exposure.

The Air Force Research Laboratory at Tyndall Air Force Base is currently experimenting with fusing nanoplatelets into materials such as Nomex and other fabrics to produce chemical and biological protective clothing with no laundering restrictions. 

The White Paper mentioned in our May Newsletter has been completed and was delivered to some DOD personnel.  They had a two day meeting where they first saw the White Paper.  Interest was high enough to plan a meeting and plant tour now scheduled for October 15th in FWB.  There should be around 20-25 participants from DOD, other government agencies, industry and academia.

After this meeting, Lee stopped by to see Dominion Chemical Company.  They are shareholders and have indicated an interest in production for several years.  Lee showed them a sample of material impregnated with magnesium hydroxide nanoplatelets.  This cloth demonstrates outstanding water repellant characteristics.  The Dominion folks were very interested and wanted to try some of the material in wood products which they sell.  They now have a sample.

In our last update, we discussed the fact that Aqua Resources Corporation had ordered some toxicology testing of our magnesium hydroxide Mg[OH]2 nanoplatelets against skin cells.  This toxicology testing is actually a battery of three tests designed to answer the following three questions:  1) does it hurt skin cells?  2) does it irritate skin cells?  and 3) does it cause an allergic reaction in skin cells?  Aqua Resources magnesium hydroxide Mg[OH]2 nanoplatelets have passed the first two tests in that our material did not harm or irritate skin cells;  the third test in the battery for allergic reaction to skin cells is currently underway with results expected to be available prior to the October 30, 2009 stockholders’ meeting. 
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We previously reported that David Ward, our Operations Director, was refitting a smaller, predecessor prototype precipitator for the purpose of manufacturing compounds in addition to magnesium hydroxide.  We are pleased to report that significant strides have been made toward bringing this additional capability online; the machine has been renewed and refitted, we have obtained a suitable power supply module, and appropriate tanks have been purchased and fitted and are being made ready for use.  We expect to be in operation with this machine by mid to late September 2009 and currently have materials on hand to make compounds with copper and iron.

We have now been asked by Dr. Noubar Yemenidjian in conjunction with KDH Defense Systems Inc. (Body Armor) [ http://www.kdhdefensesystems.com/ ]  to make a combination of aluminum and magnesium for use in manufacturing a material known as spinel.  Spinel is a clear ceramic substance of extreme strength.  Aqua Resources Corporation has had an ongoing relationship with KDH for some time and they have been looking for ways to incorporate Aqua materials into their light weight body armor.  Dr. Yemenidjian is working with KDH and is in the Department of Process Engineering & Applied Science Division of the Dalhousie University in Halifax, Nova Scotia [http://irm.dal.ca/Research/Nanomaterials.php ] and has research interests in ceramics and glasses and working with nanomaterials in several proprietary applications.  KDH visited the Aqua laboratory recently and has offered to pay the out of pocket expenses incurred in setting up the additional manufacturing capability.

We are pleased to report that a meeting we had with Green Manning & Bunch, Ltd. (GMB) [http://www.gmbltd.com/] was excellent.  The meeting took place on May 29, 2009 at the GMB offices at 370 17th Street, Suite 3600, Denver, Colorado.  Attending the meeting on behalf of Aqua Resources Corporation were Lee Maddan and Bill Harris.    Attending for GMB was Ron Rivera and Jose Garcia.  GMB is interested in working with the companies that develop from Aqua technology, be it Aqua or other production companies that we license to manufacture or companies that develop to market these products.  GMB is interested in helping them with the correct capital to engage in that business to ensure success.  GMB has many varied relationships with industry and hardware manufacturers.

That wraps up this newsletter.  See you at our annual meeting.