Monday, May 08, 2006 7:56:18 PM
We have signed a Consulting Services Agreement with Richard R. McCormick, a former employee of an engineering firm, Destech Corp., which specializes in manufacturing reticulated vitreous carbon (“RVC”) and other advanced materials. RVC is an electrically conductive, highly porous, rigid, open cell, pure carbon, foam structure with a high melting point, high chemical inertness, and low bulk thermal conductivity. RVC has an exceptionally high void volume (97%), a high surface area combined with self supporting rigidity, low resistance to fluid flow, an ability to hold infused materials, and superior resistance to very high temperatures in non-oxidizing environments. Mr. McCormick has fifteen years of experience in supervising the manufacture of RVC foam. Mr. McCormick has provided us with the specifications for all equipment, supplies, materials, chemicals, instruments, utilities and machinery that will be required for production of RVC. Mr. McCormick will provide us with a detailed written report and manufacturing procedures manual describing the process to be utilized to manufacture RVC that meets our specifications for current collectors. Mr. McCormick will be present at our facility in Vancouver, British Columbia, Canada to demonstrate in person to our Chief Technology officer, Joey Jung, and other personnel the proper manufacturing procedures for making RVC. Mr. McCormick will supervise the hands on manufacturing of RVC by our personnel. The technology transfer provided will include full disclosure to us of pertinent information including problems to be avoided, appropriate vendors for raw materials and equipment, outlines for further scale up as appropriate, and an overview of the prior art of production of reticulated vitreous carbon foam, focusing on those processes that have actually proved to be efficient and workable. We have ordered the equipment, machinery and supplies necessary for the production of RVC. On May 4, 2006, we took delivery of a Horizontal Airflow Utility Oven with Stat-350 Microprocessor Based Controller (pictured below) which will be used in to manufacture RVC. We anticipate that the remaining equipment necessary for the production of RVC will be delivered to us in May of 2006. We will manufacture RVC in billets in a batch process and the blocks of reticulated vitreous carbon will then be cut and sliced into the proper size for individual current collectors. The system is designed to permit production of 5000 reticulated vitreous carbon plates of 6 inches by 6 inches by 3 mm per month. The manufacturing process developed will be manual rather than automated but will be fully capable of scale up with additional manpower and additional equipment. Mr. McCormick will provide Company with the information required to scale up the process for automation.
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