Overview

The Athabasca Oil Sands include significant resources that are too deep for surface mining and too shallow for steam assisted gravity drainage (SAGD). E-T Energy's operations will consist solely of the in-situ electrical heating and production of bitumen from the McMurray formation. Open pit mining is not permitted on our leases and is not part of our business plan.

Relative to mining or SAGD, E-T Energy expects that it will access up to 189 billion barrels OBIP of stranded reserves using ET-DSP™ with the following benefits:

• limited environmental impact
• rapid remediation of produced acreage
• significantly reduced water use, only requiring voidage replacement
• significantly less human resources required to operate process
• process is highly scalable
• minimal use of natural gas is required
• there are insignificant emissions, thereby anticipated to create carbon credits
• rapid production reduces upfront capital required
• recovery rates approach 75%

ET-DSP™ is a much simpler process than mining and SAGD, leading to much smaller and less expensive surface facilities For example, ET-DSP™ does not require:

• Giant trucks & shovels
• Froth treatment equipment
• Boilers
• Sulphur treatment equipment
• High pressure steam lines
• Tailings ponds
• Massive separation vessels
• Emissions treatment equipment

Most of E-T Energy's required surface facilities are separators and tankage.