Prac;cal

Solu;ons Innova;ve Technology

for the Oil and Gas Services Industry
Copyright Coretrack Limited August 2014

This disclaimer forms part of and is incorporated in the accompanying material

The informa;on in this presenta;on is an overview and does not include all informa;on necessary for investment decisions. In
making investment decisions, investors should rely on their own examina;on of Coretrack Limited, (Coretrack) or consult with
their own legal, tax, business and/or nancial advisors in connec;on with any acquisi;on of securi;es. This informa;on has been
prepared in good faith by Coretrack. However, no representa;on or warranty, express or implied is made, in rela;on to the
accuracy or completeness of the informa;on provided in this document or any other informa;on by Coretrack otherwise provided
to the recipients. Whilst every care has been taken with prepara;on of the informa;on contained in this document, no
responsibility is accepted by Coretrack or any of its representa;ves, directors, partners, employees or professional advisers for any
informa;on provided in this document or otherwise provided to the recipients or for any ac;on taken by the recipients on the
basis of such informa;on. In par;cular, no representa;on or warranty is given as to the accuracy, likelihood of achievement or
reasonableness of any forecasts, prospects or returns contained in the informa;on. Such forecasts, prospects or returns are by
their nature subject to signicant uncertain;es and con;ngencies. Each recipient of the informa;on should make its own
independent assessment of the informa;on and take its own independent professional advice in rela;on to the informa;on and
any ac;on taken on the basis of the informa;on.

This presenta;on includes forward looking statements within the meaning of the Corpora;ons Act. These forward looking
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project, could, should, would, con;nue, seek, target, guidance, outlook, forecast and other similar
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subject to signicant risks and uncertain;es that may cause actual results and nancial posi;on and ;ming of certain events to
dier materially from those described in the forward looking statements: failure of a proposed transac;on to be implemented; the
challengers of cost and closing, integra;ng, restructuring and achieving an;cipated synergies; the ability to retain key employees;
and other economic, business, compe;;ve, and/or regulatory factors aec;ng the business of Coretrack generally, including those
set forth Coretrack business plan, in par;cular, the Risk Factors sec;on. Any forward looking statements speak only as of the
date hereof or as of the dates indicated in the statements. Coretrack assumes no obliga;on to publicly update or supplement any
forward looking statement to reect actual results, changes in assump;ons or changes in other factors aec;ng these forward
looking statements except as required by law.

Coretrack Limited (ASX : CKK)

Listed on ASX 2006
GICS Group Energy
Focused on Oil and Gas Services technologies
Signed agreement to purchase unlisted Ecopropp, which is developing disruptive,
game changer, ceramic proppants technology
Ecopropp proppants are made from Flyash - Stronger, Lighter & anticipated Lower
Manufacturing Cost than comparable products
Proppants are used in the hydraulic fracturing of unconventional oil and gas wells
Hydraulic fracturing has played a significant role in transforming the US economy

What are Proppants?

Proppants are a sand-like commodity that are o[en the single largest cost item in EVERY well that is fracked

Proppants are pumped into hydrocarbon bearing shales to prop open the fractures that are created during
hydraulic fracturing (fracking). Oil and gas is then able to ow from the fractures held open by the proppants

Tradi;onal ceramic proppants are made from bauxite or kaolin clay. Our proppants are made primarily from
y ash, the unwanted by-product of coal red power plants

The worldwide ceramic market was approximately $2.5 Bn. in 2013

Ecopropp ceramic proppants are Tier 1, with the highest conduc;vity

Exploiting unconventional Oil and Gas resources

What about water contamination and toxic chemicals?

Design of oil and gas wells are
e n g i n e e r e d t o p r e v e n t
hydrocarbons leaking into water
aquifers. No less than 3 layers of
concrete encased steel pipe reach
far deeper than the deepest water
aquifer.

An Indian bean called Guar was formerly used as cafle

feed before its applica;on for oil and gas wells was
discovered. Guar is used to thicken the water to hold
the proppants in suspension during fracking.

Industry Overview
The industry is in the early days of a prolonged up-cycle*
Each horizontal oil and gas well requires between 3,000,000 pounds (1.4m kg) and
10,000,000 pounds (4.5m kg) of ceramic proppants**
1 horizontal well needs up to 100 rail carriages of proppants**

Many horizontal wells use $1,000,000 to $3,000,000 of ceramic proppants**

60% of US oil and gas drill rigs were horizontal drilling in 2013, compared to 2003,
when just 10% were horizontal and 90% were ver;cal drilling**

Explosion in ac;vity due primarily to advances in hydraulic fracturing technologies

* Oil and Gas Reporter 01/14
** Proptester / Kelrick 2013 Report

Effects of Hydraulic fracturing on the US Economy

Proppants are Big Business $2.5B annually world wide

Proppant manufacturers are spending hundreds of millions of dollars building new
ceramic proppant plants to meet anticipated market growth
Imerys acquired US Pyramax for US$335 million In 2013
St Gobain invested US$100m in US proppant plant expansion in 2013
Carbo Ceramics construction of 500 million pounds additional capacity has commenced
Hi Crush Partners*

Sales 2013 + 217%

Sales: $177 million
Market Cap: $2.19 Bn
Valuation: P/E 30.42

Carbo Ceramics*

Sales 2013: + 50%

Revenue: $667 million
Market Cap: $3.34 Bn
Valuation: P/E 38.88
*As at 25 July 2014

US Silica*

Sales 2013 + 14%

Revenue: $442 million
Market Cap: $3.25 Bn
Valuation: P/E 42.27

Historical Growth: 1 Bn. pounds in 2003 to 8 Bn. Pounds in 2013

Courtesy Proptester, Kelrick

Source: Baker Hughes

Proppant storage
tanks

Typical Characteristics of Ceramic Proppants

Kaolin Clay feedstock

Compressive Strength 20/40 typically rated @ 7,500 psi

Bulk Density typically 1.56 grams/cubic cm
Typical Bakken well requires 6,000,000 pounds per well
Up to 6.5 cents/pound for logis;cs and transporta;on costs
from Georgia US to North Dakota

Bauxite feedstock

Compressive Strength 20/40 typically rated @ 10,000 psi

Bulk Density typically 1.88 grams/cubic cm
Typical Bakken well requires 7,230,000 pounds per well
Up to 8 cents/pound for logis;cs and transporta;on costs from China to Texas

Ecopropp Fly ash feedstock

Compressive Strength 20/40 rated @ 11,000 psi
Bulk Density 1.37 grams/cubic cm
Typical Bakken well requires 5,300,000 pounds per well
Low (or no) logis;cs and transporta;on costs because Ecopropp manufacturing plants can be
located near coal red power plants which are close to oil & gas reserves.

Cost Savings per Well

Ecopropps disruptive technology challenges existing market dynamics

THE ABOVE ESTIMATES ARE PRELIMINARY AND BASED ON CERTAIN ASSUMPTIONS AND PROJECTIONS MADE ON BEHALF OF THE COMPANY IN GOOD FAITH.
THEY ARE GIVEN HERE FOR ILLUSTRATIVE PURPOSES AND ARE NOT TO BE RELIED UPON FOR ANY PURPOSE. WHILE THE COMPANYS MANAGEMENT
CONSIDERS THEM REASONABLE, THESE ESTIMATES ARE SUBJECT TO SIGNIFICANT BUSINESS, ECONOMIC AND COMPETITIVE UNCERTAINTIES AND
CONTINGENCIES. ACCORDINGLY, NO ASSURANCE CAN BE GIVEN THAT THESE ESTIMATES CAN OR WILL BE REALIZED, AND THE COMPANYS ACTUAL
PERFORMANCE MAY VARY FROM THE ESTIMATES AND SUCH VARIATIONS MAY BE MATERIAL. NO REPRESENTATION, WARRANTY OR GUARANTEE OF ANY
NATURE IS BEING GIVEN BY OR ON BEHALF OF THE COMPANY REGARDING ITS FUTURE PERFORMANCE OR FINANCIAL RESULTS.

Experts Reports certify that Ecopropp Proppants meet or

exceed the ISO Standards
Test

ISO *
Standard Ecopropp
13503-2

% of nes produced when 30/50

proppant is crushed @ 10,000psi

< 10 %

3.10 %

% of nes produced when 30/50

proppant is crushed @ 12,000psi

< 10 %

5.60 %

% of nes produced when 30/50

proppant is crushed @ 14,000psi

< 10 %

8.0 %

% of nes produced when 20/40

< 10 %
proppant is crushed @ 10,000 psi

6.10 %

Acid Solubility
Roundness
Sphericity
Turbidity

< 7
> 7
> 7
< 250

5.2-6.3
8
8
43-57

1.37

Bulk Density [g/cm3]

[*IInternational Standards Organisation]

Validated by Industry experts

40% Stronger & 12% - 40% less weight than comparable products
New patent lodged August 2013
Three additional patents scheduled for lodgment July 2014

Low Manufacturing Costs

Business Model & Acquisition Summary

Business Model
Establish tonne/hour factory in Brisbane. Progress update:

Shipping of primary equipment commences September 2014

Final factory drawings completed
German R&D team reloca;ng to Brisbane September 2014
Factory site is ready to complete t out

Invite poten;al licensees to observe proppant manufacture

Licensees factories to be constructed near coal red power plants and shale oil and gas reserves

Revenue Streams:
Upfront license fee or equity in plant in lieu of license fees
Royalty per pound paid to Coretrack/Ecopropp

Acquisi\on Summary
Coretrack is an excellent t with Ecopropp and brings not only capital, but very good people
Ecopropp shareholders will receive Coretrack Shares progressively as each Milestone is achieved
Milestone 1 - Validate Scale-up to ISO Standards & validate low manufacturing costs
Milestone 2 - Successfully deploy proppants down-hole
Milestone 3 Commercialisa;on - secure rst licensee and plant funding

Winton Willesee Non-Execu;ve Chairman BBus., DipEd., MCom., FFn., CPA., MAICD, ACIS/ACSA

Experienced Public Company Director with broad range of experience in company development, strategy, corporate
governance, public company lis;ngs, merger and acquisi;on transac;ons and corporate nance.

Siegfried Konig CEO

Entrepreneur and Ecopropp Founder. 30 years experience in business management, successful lis;ng of 3 start-up
companies on ASX. Global rela;onships in capital markets & public company sector. Siegfried is an early stage investor
with experience in building companies from startup to IPO and Company Management.

Bernie Kelly Non-Execu;ve Director BSc. Hons.

Former head of interna;onal oil and gas company Baker Hughes Australasia responsible for overseeing a workforce of
up to 500 people. Has held various key account management, sales and opera;ons and business development roles
within Nalco Exxon. Joined Baker Hughes in 2003 with undertaking North Sea Region, Europe-Africa-Russia-Caspian
Super Region, Interna;onal Sales Management, Strategic Business Development and leadership roles in Aberdeen in
the UK, before reloca;ng to Dubai as Opera;ons Vice President, Middle East & Asia Pacic.

Dr. David Henson Non-Execu;ve Director PhD BChE

Non-Execu;ve director based in Houston TX, former director, emerging technologies for Siemens Oil and Gas, now CEO
of Siemens conceptual engineering services. PhD in Chemical Engineering, over 15 years experience in process
engineering, project management and business development.

Trevor Beazley Non-Execu;ve Director BBus.

Founder and Managing Director of Perth based corporate advisory rm Maiden Capital, specialising in ASX lis;ngs and
capital raisings with over 15 years of public company and capital markets experience.

For further Information

Siegfried Konig
CEO : Coretrack
Mob : 0411 111 193
Email : s.konig@coretrack.com.au