The Company's recycling process will take used oil feedstock and produce Group II base oil (78%), diesel (11%), asphalt base material (7%) and the remaining 6% of the product will be water and fuel that will be used by the refining process. The base oil may be sent to the blending facility with the predetermined mix of additives specific to the targeted lubricant product (i.e. 5W 40, 10W-30, etc.).

Base Oil Categories
Base oil quality is characterized by the American Petroleum Institute (API) Specification 1509. Base oil is categorized into five groupings.
• Group I - Group I base oils are the least refined and lowest quality of all the groups. They are usually a mix of different hydrocarbon chains with little or no uniformity. High premium lubricants cannot be produced from Group I base oil.
• Group II - Group II base oils are more refined than Group I and offer better performance in regard to lubricating properties such as volatility, oxidative stability and flash / fire points. They also have better performance in areas such as pour point, cold crank viscosity and extreme pressure wear. Group II is the base oil required for most lubricants.

In North America today, about 65% of all the base oil used for passenger car and heavy duty / industrial oil formulations are based on Group II.

Group II can be used in 97% of all applications and many North American blenders have moved entirely to Group II.

• Group II+ and Group III - Group II+ and Group III base oils are subjected to the highest level of refining and offer still better performance in a wide range of attributes as well as better molecular uniformity and stability.

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