The NexLube Tampa facility will have a processing capacity of approximately 24 million gallons of used oil per year. Group II or Group II+ base oil will be produced and then blended with additives to produce lubricants (motor oil, hydraulic fluid, transmission fluid). The used oil feedstock will primarily be collected by third parties from the automotive and industrial sectors.

The Company's Tampa location is ideal for a number of good reasons:
• Over 120 million gallons per year of used oil is generated in Florida.
• Offers access to existing roads, railroad connections and two berths (barges, small and medium sized vessels).
• The Tampa market includes a large number of major oil blenders and distributors (Amalie Oil, Motiva, Marathon, Kinder Morgan, BP, CITGO, Hess, Murphy Oil and others.)

All major permits required to initiate construction have been obtained and basic construction engineering drawings have been completed. The Company also has agreements in place with technology and project management partners.
Florida is considered an underserved market due to the large population of vehicles registered in the state and the fact that there are no existing facilities for re-refining used oil within the state. The closest processing plants are located in Texas or North Carolina. Shipping used oil from Florida to these locations is costly and impacts the economics of re-refining used oil that is generated in Florida.

Approximately 12 acres are necessary and the proposed site provides railway and waterway access that allow transporting used oil from sources within and outside Florida. With environmental stewardship being a major factor in the design, the NexLube facility will provide the benefits of recycling while limiting the environmental impact on the community.

Safety
Safety concerns for the employees, the public and the environment will be mitigated through proper design, training, monitoring equipment and controls, emergency back-up equipment and the use of appropriate personal protective gears. All required permits and plans for a facility of this type have been obtained.

Used oil is most often consumed as a fuel and once burned is no longer a renewable resource. The EPA has classified the recycling of used oil as the "best use" of a natural resource.

Because it can be used and recycled repeatedly, and because recycling minimizes air pollution by eliminating the traditional use of burning it as a fuel.