Plastic2Oil Inc (PTOI)

[Arthur Edward Whoof]

RockTenn PLASTIC NOT OPTIMAL, NO GO

From the 10K;

Historically, we operated under the premise that we would be able to obtain significant quantities of waste plastic for free, as we offered companies a more cost-effective disposal method for this waste stream. During the year, as we processed increasing amounts of waste plastic, we made the determination that in order to obtain the most optimal feedstock on a consistent basis, we would be required to purchase this feedstock.

As I have pointed out, the feedstock that JBI needs must be 'optimal'.

In order for it to be 'optimal' it must be free of contaminates.

This is the same feedstock that can be recycled.

If the RockTenn plastic could be recycled RockTenn would, and they would make more money doing it.

The problem is that it cost more to process it than it is worth.

This is JBIs FUNDAMENTAL PROBLEM.

There is no way JBI can use plastic that is not 'optimal' or it will foul the machines, cause downtime, cause undesired output and create hazardous and problematic byproducts.

If the RockTenn plastic could be processed to be 'optimal' at a lower cost than it can be purchased for.. it can be sold for more than it is worth making fuel from it.

By the time the process cost is figured into the equation the end result is NEGATIVE GROSS PROFIT FUEL SALES

This is a circular argument.... a catch 22.... a dead horse.... an ANNIHILATED business model.