2019 MSAR® BUSINESS OVERVIEW

27 September 2019

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MSAR® – REFINERY ECONOMICSLow Cost - Rapid Payback - IMO2020 Solution

• Refinery fuel oil production typically uses significant amounts of

distillate products to blend with residuals, mainly to reduce viscosity.

• MSAR® technology releases these high value distillates from the low

value fuel oil “pool” – significantly improving refinery economics.

• The “MSAR® margin” is a function of the distillate / fuel oil “spread”.

• This spread widened during 2019, driven by impending IMO regulations

for marine fuels for 2020+, further strengthening MSAR® economics.

• CAPEX for implementing each 1,000tpd MSAR® module at a refinery

is ~$5m; installed in <1 year with typical paybacks <1 year.

• The modular nature of MSAR® technology provides a low cost,

low-risk, highly profitable, bottom of the barrel upgrading option.

IMO = International Maritime Organisation. CAPEX = Capital Expenditure. HFO = Heavy Fuel Oil.$/t = US$ / metric ton. VTB = Vacuum Tower Bottoms. LCO = Light Cycle Oil. Graphs above are typical examples based on a refinery with vacuum residues

blending with LCO to make HFO in 2020 versus MSAR®.

MSAR® – ENERGY COST SAVINGS TO CONSUMERS

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MSAR® saving vs HFO$0.4m per year *

CAPEX <$0.4m modifications.

MSAR® saving vs HFO$15m per year *

CAPEX <$5m modifications.

400MWe POWER PLANT BOILER

consuming 600,000 tpa HFO:

VLCC TANKER

consuming 16,000 tpa HFO:

* assuming $25/mt HFO (10%) equivalent energy savings with MSAR®.tpa = metric tons per annum. HFO = Heavy Fuel Oil.

MSAR® – ENVIRONMENTAL ADVANTAGES

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Stored & transported at ambient temperatures

Less heating =energy savings

P Reduction in utilities consumption

Lower combustiontemperatures

Less heating =more energy savings

P 20-30% less NOXgases emitted

Virtually complete carbon burnout

Minimal black soot

P Reduction in global warming potential

P Reduced waste disposal costs

Lower cost MSAR® enables affordable compliance with regulationsNOx = Nitrogen Oxides.

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HFO MARKET OVERVIEW

Americas

NOCs, refiners & utilities:

Mexico 7m tpa HFO

Ecuador 2m tpa HFO

Marine

~230m tpa HFO demand today

60-80m tpa HFO “scrubbed” by 2020-25.

>50% supplied from major bunker hubs.

Middle East

Mostly NOCs & utilities:

KSA 28m tpa

Kuwait 6m tpa

Iraq 16m tpa

Asia

Mostly powerplants:

Japan 15m tpa

China 28m tpa

S. Korea 12m tpa

Pakistan* 10m tpa

Africa

NOCs, refiners, utilities & upstream:

Egypt 6m tpa HFO

Morocco 1m tpa HFO

E. Europe/FSU

Russia 18m tpa

Notes: All figures rounded to nearest million tpa from 2018 JODI Data, unless stated otherwise. JODI data, is for all uses including marine bunkering, so there will be an element of double counting when looking at total demand, including marine.Main uses in regions highlighted are power generation & utilities. * Uses 2018 IEA data (based on 2016) for all uses excluding marine.

NOCs = National Oil Companies.

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MSAR® BUSINESS PIPELINE STRENGTHENED IN 2019

KUWAIT2H 2019

Building on QFI’s previous work in Kuwait

May 2019

SAUDI ARABIA

Building on significant previous activities in KSA.

MoA with local partner in KSA

Services Agreement with Aleph Commodities

Progressing delivery of milestones in KSA with Aleph and Al-Khafrah during 2019

June 2019

2H 2019

May 2019Feb 2019

Younes Maamar (Morocco)

MoA with Bitumina(Russia)

MoA with API Poly GCL (China)

Agreement with Redliner (Mexico)

Agreements with European Oil

Refiner & Merlin

Mar 2019 Jun 2019Mar 2019

REST OF WORLD

H2 2019May 2019

Initial Agreement with Aleph Commodities

Agency agreement with local Partner –Hawazin(Kharafi)

Progressing delivery of milestones in Kuwait with Aleph & Hawazinduring 2019

Aug 2019

Continuing Business

Development

2020

RESEARCH, DEVELOPMENT & INNOVATION (RDI)

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We’re continually improving MSAR® technology and fuel performance at our UK RDI facility, strengthening our IP position, increasing barriers to entry.

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MSAR® BUSINESS SUMMARY

Building on strong foundations made during 2019:

• Core MSAR® economics strengthened by IMO 2020 regulations.

• New relationships in key markets in the Middle East & Africa have demonstrated phased progress towards trial supply agreements as a prelude to commercial operations.

• Opportunities in Marine, Americas, Asia, Europe and FSU are being developed in tandem.

• Business development activities targeted to build on positive momentum and deliver commercialisation plans in 2019/2020.