“A LITLE HYDROGEN GOES A LONG WAY”

Company Background• Formed in May 2015 as a Holding Company to develop and market

opportunities in the Commercial and Non Commercial Marine sectors.

• MDS specifically targets Yachts, Sports Fishers and Commercial Fishing boats (fleets) up to 120 feet. The also company intends to focus on GenSet stationary engines.

• MDS has acquired the License to the i-Phi™ hydrogen-based technology from Innovative Hydrogen Solutions Inc. developer and manufacturer of the DS-2000 and DS-3000 units.

• MDS will commercialize the i-Phi™ through its' distinct Sales and Leasing Divisions.

Innovative Hydrogen Solutions (IHS)

Company Background

• IHS was Founded in December 2004. • Creator and manufacturer of the DS-500 /2000 / 3000 hydrogen assist units.

• IHS Management team has over 140 years of combined experience with Hydrogen Fuel Injection (HFI) & Hydrogen on Demand (HoD), and

• Company Management has over 150 million miles of on-road experience with Hydrogen Fuel Injection (HFI) / Hydrogen on Demand (HoD).

• Province of Ontario recognizes Hydrogen Fuel Injection. The Innovative Partial Hydrogen Injection (I-PHI) is the only Hydrogen Fuel Injection (HFI) System to qualify for the Ontario Green Vehicle Grant for Transportation in North America.

• New manufacturing / assembly facility under evaluation in Western USA

First Introduced for the Trucking Industry

• Fleets are operating at minimum profit margins(< 2%)

• Maintenance costs continue to rise

• Pollution control costs continue to rise

• Fuel Prices on average continue to rise.

• The trucking industry is a major (20%) contributor to the Green House Gas (GHG) Emissions which continue to rise.

THE OPPORTUNITY

• Your yacht will extend its range and save up to 35% in fuel costs.

• Your yachts engines will last longer, run more efficiently and burn cleaner . with enhanced combustion from Hydrogen Fuel Injection. (HFI)

• Your yacht will reduce its Carbon Emissions by up to 90%.

Hydrogen is the SolutionTHE INTRODUCTION OF SMALL AMOUNTS OF HYDROGEN IN COMBUSTION HAS

THE FOLLOWING EFFECTS:

• Enhances combustion characteristics of gaseous or liquid hydrocarbon fuels • Significantly extending the lean flammability limit of the carbon-based fuel results in:

– Greater thermo efficiency – A more complete burn– Increased fuel mileage (up to 30%)– Decreased emissions (up to 90%)

• Hundreds of independent tests dating back to the 1970s have validated these effects

Source: United Nations Framework Convention on Climate Change

Question : How to deliver hydrogen on demand in a SAFE, EFFICIENT and RELIABLE manner?

Answer: The New IHS / MDS DS-2000.

“ON THE OCEAN OR THE HIGHWAY, THE QUESTION

HAS ALWAYS BEEN ”

Here is How Our Technology Works

• It is an aftermarket retrofit device designed to work on any internal combustion engine

• It converts distilled water into hydrogen and oxygen gases through electrolysis

• The hydrogen is mixed with oxygen and injected into the air / fuel mix prior to combustion

• Hydrogen is only made available on demand when the engine is running

• This eliminates the need for on-board hydrogen storage and addresses safety concerns

Adding Hydrogen & Oxygen gasses to the Air intake enhances the combustion Process.

The DS-2000 produces Hydrogen & Oxygen Gases from water using electrolysis.

The Hydrogen burns faster and cleaner than the diesel producing a more complete burn of all the fuels.

Burning More Fuel increases Engine Power and Torque!

Burning Fuel more efficiently results in less soot and other pollutants.

Less Soot extends the life of the EGR valve decreasing maintenance costs.

Less Soot reduces the re-gen frequency of the Diesel Particulate Filter saving both time and money while extending the life of the oil and the engine.

Hydrogen helps to clean up the carbon deposit buildup in the engine.

The DS-2000 saves money!

The DS-2000 cleans the environment!

• Quantify

• Verify

• Certify

MDS & IHS Are Committed To

• THIRD PART TEST RESULTS

• Lab / 3rd party testing (Clean Air Report - the only EPA Verified PEMS in North America)

• Auburn University SAE J-1321 Type II Fuel Test completed August 2010

• Manitoba Hydro 2 Year Reliability Tes tPatent protected by - multiple patent applications / (PCT) filed

• Patent protected by - multiple patent applications / (PCT) filed

Third Party Test Results

Curbside Recycle Trucks (garbage pick up) (Stop and Go application)– Achieved an average reduction of 7.3% in Fuel,– 30% reduction in Nox– 38% reduction in Particulate Matter– (these results are significantly greater than the 5% expected

results on this type of application)– Long Haul applications achieve FAR greater reductions

16.9% 8.6%16.1%12.7%37.6%13.1%City Driving

26.7%23.8%86.1%30.8%38.2%31.0%

NOxPMCO2COFuel

Highway Driving

HC

Clean Air Technologies Trucking Study

Stewardship Ontario Study

Technology Benefits• Third-party testing has confirmed:

– Reduced fuel consumption (10% to 30%) – Lower Green House Gases (GHG) emissions

• Additional benefits:– Longer engine life – Reduced maintenance costs

• Less frequent oil & filter changes• DPF Regen Cycles extended• Fewer EGR Replacements• 30% less Urea used in DEF System

• Easy installation with virtually no downtime or maintenance

• Payback period / Return on Investment (less than 1 year)

Fuel Savings• On average, a 100’ Fishing trawler with twin 1000 HP diesel engines will

require $560,000 per year of fuel to operate.• With the DS-2000 unit, fuel costs will be reduced by up to 30%, saving the

operator $168,000 per year. • An operator paying $1,075 / month or $12,900 / year to lease the DS-2000

unit will easily cover a years lease in the first month of operation. • Similarly, trucks that spend $8,000 to $10,000 (334 miles a day)per month

on fuel should save 15% to 20% of their fuel bill. Savings / Profits: $1,200 to $2,000 per month and $14,400 to $36,000 per year

• MDS and IHS can install Telematics Systems on every unit to measure the actual fuel savings achieved.

• Actual fuel savings will vary with different applications like: slow many stop routs and long haul trucking

You Can Do Your Part in Keeping Our Oceans and Highways Clean by Reducing Carbon Emissions

• Personal pleasure yachts, fishing fleets, cargo ships and ground transportation account for over 25% of the worlds total Green House Gases (GHGs)

• Enforcement is now in place for lower emissions by tougher OEM and aftermarket emission regulations such as :– Older engines – opacity meter spot checks are resulting in fines and downtime– New engines – issues with mandated Diesel Particulate Filters

• MDS and IHS are now positioned for the future with a fully documented ISO 14064-2 Green Print Assessment performed by Jomini Environmental Inc.

• The Provinces of Ontario and Quebec along with California announce Cap and Trade for 2015 (Carbon Credits)

• Carb Compliance Testing 2015 for 2007 and older Engines now mandatory.

IHS Technology, a Proven Success!!!

First tested on trucking fleets, many companies have placed re-orders based on initial trials.

• Ontario Waste Management Association has entered into an Affinity Program with HIS.

• Searcy Trucking in Winnipeg A Division of Bison Transport is just completing their Field Trial units and have been experiencing 12% to 15% mileage increase over their fleet average.

• Several Mid-Sized Trucking Companies beginning Field Trials with Conditional Sales after 6 months of 50 to 150 units totaling over 1000 units.

More IHS Customer Success

• License agreement finalized with European Partner guaranteeing 1000 units by end of Dec. 2015.

• Completed License agreement for mining vehicles in Columbia guaranteeing 500 unit purchase by Dec.2016.

• Planning installs on large Canadian Aggregate Company 2ND QUARTER 2015.

• First Marine installed completed May 5th.2015 in Denmark.

• License Agreement signed for Marine “Yacht” Market in Costa Rica and Caribbean. First two installs within 30 days. Reordered 24 Marine units.

• Over 10,000 units in the IHS Sales Pipeline with existing customer base. Re-orders are now commonplace!!

THANK YOU FOR YOUR INTERESTCOME VISIT US IN TORONTO OR COSTA RICA