NNRF Inc (NNRI)

[PrimeTrader]

FYI - from the 8/20/07 Form 10-SB filing with the SEC. In this section of the SEC filing NNRI identifies their next steps. Sounds to me like they are pretty busy.
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Next Steps

NNRF has concluded beta-test installations of the EP technology in multiple facilities in Russia including automated manufacturing plants, government facilities and commercial buildings during the period February to September 2006.

The first four beta trials have successfully concluded with excellent results: one trial was at one of the Russian Central Bank facilities; the second at a large Russian aviation repair and testing facility; the third at a casino in central Moscow; and the fourth at the Ministry of Construction and Architecture in the Republic of Tatarstan.

NNRF has also completed a rigorous Russian certification program for the EP products through the certification agency employed by the Russian Ministry of Defense. NNRF anticipates that the beta-trials will result in sales to various Russian government agencies. To this end, the most recent beta trials which took place in the city of Kazan, Republic of Tatarstan, led to an exclusive mandate from the Republic of Tatarstan, Ministry of Construction & Architecture, to commence sales and installation of EP equipment in newly constructed buildings within the Republic.

The EP units to be installed in Tatarstan are to be provided by NNRF and sold through its Tatarstan-based marketing and sales partner, Stroikomplektinvest (http://www.stroikomplektinvest.ru). Among the first projects covered under the mandate will be the installation of EP equipment in Solnechny, or Sun City, a new government office/employee complex in Tatarstan. NNRF recently received a purchase order from Stroikomplektinvest for sixty (60) units of EP equipment.

State Scientific-Research Institute Science and Production Enterprise (“Lutch”)

NNRF, through ATOLL, is in the final stages of concluding an agreement with Lutch, located in Podolsk, Russia, to acquire the rights to a proprietary silicon carbide based technology and the engineering plans and expertise for the construction of storage containers for the transportation and storage of spent radioactive fuel. Given that we do not currently exercise significant influence over the operations of ATOLL, there can be no assurance that the acquisition of Lutch will occur.

Lutch is a closed Russian government facility under the supervision of Rosenergoatom. A contract for the manufacturing and certification of four silicon carbide containers by Lutch is scheduled. This contract contemplates 13 stages in total. The goal at the conclusion of the process will be the certification of the containers by the Ministry of Health for use in the RF. This certification will be conducted under the aegis of the International Atomic Energy Agency (“IAEA”). Such certification would also permit the containers to be used globally, including the potential export to Taiwan, South Korea, China, and Japan. NNRF intends to begin marketing to some or all of these countries at some time in the next 9 to 12 months.

Presently, there is approximately 240,000 tons of spent nuclear fuel in the world. Of the foregoing amount, 85,000 tons have been reprocessed and 155,000 tons are being stored. Most are stored under conditions that present a clear and potential danger to the environment and human beings. Spent nuclear fuel must be safely isolated for thousands of years because radio nuclides, when in water, food, soil, air or human lungs, will cause oncological diseases and death.

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Copper, titanium, steel, lead and nickel/chrome/molybdenum alloys are presently used as materials for nuclear waste containers, but each have one common drawback: they are electro-conductive and thus are prone to electrochemical corrosion including local corrosion in subterranean waters (pitting, inter-crystalline, crevice, etc.). This can lead to leakage into the environment. It was for the foregoing reason that the U.S. government has placed a hold on the proposed Yucca Mountain facility in Nevada.

Silicon carbide is not subject to corrosion in subterranean waters of all known solutions. This has been confirmed through extensive testing, mathematical modeling and design-theoretical analysis. Silicon carbide also possesses unique combinations of physical-mechanical and thermal physical properties and represents the most complete known convection-diffusion barrier against radio nuclides. NNRF intends to file one or more patent applications on these silicon carbide based technologies employed in the development of the nuclear waste containers.

In 2005, there was 20,000 tons of spent nuclear fuel in Russia. Annually, 1,000 tons of spent nuclear fuel is being extracted from reactors in Russia. Of this annual amount, 150 tons are being reprocessed. Spent nuclear fuel is being built up in Russia, as it is in the U.S. and other countries employing nuclear power plants. In the next 12 to 18 months, NNRF intends to build and operate one or more manufacturing facilities to produce containers for this spent fuel. To this end, NNRF believes that the manufacturing facilities of ATOLL may be utilized for the production of these containers.

In addition to the container components of stainless steel and silicon carbide, NNRF intends to use NuCap™ as a damping material and integral component in all containers. Once the fuel is loaded and sealed through a proprietary welding process into NNRF’s containers, the containers will be transported to the Russian dry fuel storage facility at Zelesnogorsk. Dr. Lebedev, the Chief Executive Officer of NNRF, formerly served as the General Director of Zelesnogorsk from 1999-2001. NNRF intends to sell all of its annual output of containers to the Federal Ministry of Atomic Energy and the Federal Ministry of Defense. Dr. Lebedev formerly served as the Vice Minister of Ministry of Atomic Energy and during his tenure he also served as the Secretary of State of MINATOM and was the representative and advisor of MINATOM to both the Duma and the President of the Russian Federation.

In addition to the proposed transaction with Lutch, for which there can be no assurance given that we do not currently exercise significant influence over the operations of ATOLL, NNRF is also reviewing other advanced radiation containment technologies.

Fire Resistant Cable - Fireproof Swelling Cable Cover

Fire resistant cable and fireproof swelling cable cover technology is for use in nuclear and fossil fuel power plants and other high-impact utility industry applications. When exposed to fire and/or extreme heat, the cable expands and blocks off all connections through the chases where the cables go from room to room. The technology allows the electrical cable to withstand temperatures up to 1100C for 45 minutes and prevents the spread of fire which is critical in all power generation facilities. The fireproof swelling cable cover is non-toxic with high adhesive properties and has been approved for use by the fire authorities in Russia and is fully licensed. The proven technology has immediate applications in the nuclear power plants of Rosenergoatom and Atomstroyexport and other facilities in the RF.

NNRF has concluded negotiations to acquire this technology and a definitive agreement will be forthcoming in the second half of 2007. In sum, NNRF will purchase the intellectual property from Seversk (formerly known as Tomsk-7), Ministry of the Russian Federation for Atomic Energy, Russian Research Institute of Organic Materials, Bochvar Institute. It is NNRF’s belief that it will complete the acquisition during the second half of 2007 and commence sales thereafter.

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NNRF believes its marketing office being established in Lower Saxony, Germany will be sufficient to handle sales of this technology to nuclear and non-nuclear operating power plants in Western and Central Europe.

NNRF believes that this technology can be marketed to utility plants globally, and there is presently no known non-organic competition. NNRF has enlisted a production partner: Novosibirskenenergo Holding (www.nske.ru/eng) for manufacturing of the product lines. Production is presently anticipated to commence in the third quarter of 2007 and NNRF believes it will be able to commence deliveries thereafter.

Tri-Ion - Wasser Technik

On December 12, 2005, NNRF entered into an agreement with the German company, Tri-Ion -Wasser Technik (“Tri-Ion”) to represent it in the RF. NNRF will organize the placement of Tri-Ion’s technologies and engineering services within the Russian and Ukrainian Vodokanals, including the EWP.

Tri-Ion specializes in cleaning water which contains heavy metal and other isotopes. It is licensed and permitted to work in the food industry. The Russian industrial partner for hardware and pumps is Hydromshservice.

NNRF will receive approximately 15% of the revenues in consideration for these services. Tri-Ion is currently working providing water cleaning services in Europe and South America.

Potential Acquisition of JSC Electroprivod and Velkont

NNRF has executed a letter of intent to acquire 25.5% of JSC Electroprivod and 25.5% of Velkont for the collective sum of $3,500,000 to $8,500,000. The final acquisition price for the two investments will be determined upon the completion of a thorough due diligence investigation and will include the purchase of new equipment for Velkont. Each of the acquisitions will be made together with management of ATOLL, who will purchase an equal share of JSC Electroprivod and Velkont and collectively the parties will own 51% of each entity upon the closing.

Subject to satisfactory completion of its ongoing due diligence investigations of the two entities, and procurement of sufficient capital to finance the two acquisitions, for which no assurance can be given, NNRF anticipates that it, along with management of ATOLL, will jointly execute a definitive agreement with JSC Electroprivod and Velkont in the third quarter of 2007. NNRF has retained a Moscow based FSB security cleared auditing firm, 2K Audit (www.2kaudit.ru/en), to conduct a thorough due diligence investigation of JSC Electroprivod and Velkont as well as audit the financial statements of each entity under U.S. GAAP.

Velkont is located in the city of Kirov-Chepetsk, and JSC Electroprivod is located in the city of Kirov. NNRF intends to purchase only the nuclear power plant equipment production and ecological services divisions of JSC Electroprivod. Upon completion of the acquisition, NNRF intends to transfer the foregoing divisions to the Velkont facility and believes that this will result in higher levels of efficiency and may result in substantial cost savings.

Velkont is fully licensed by the Federal Ministry of Atomic Energy of the Russian Federation (“Minatom”) for the production of nuclear power plant equipment and holds other licenses for the production of equipment and microelectronics for the aeronautical and automotive industries. Presently, Velkont has approximately 550,000 square feet of production facilities and employs 1,400 skilled workers.

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JSC Electroprivod is a scientific and technical complex and a leading designer of micro-electronic equipment in the Russia Federation and is licensed by the Federal Ministry of Nuclear Energy of the Russian Federation and other federal Ministries. Over the last 50 years, JSC Electroprivod has designed and developed over 1,500 products used in the Russian and the CIS aeronautical and automotive industries. More than 200 of these items are currently being manufactured at factories in the cities of Kirov, Kirovo-Chepetsk, Kizlyar, Kursk, Saratov and Tyumen.