EESTech, Inc. (EESH)

[Fred Kadiddlehopper]

Another weird thing. Note the narrative of the IP transaction stops in 2007.

Note 4 Intellectual property

On June 8, 2000, the Company purchased ownership rights to certain water purification
intellectual property and technology, and a related system from Global Power & Water, Inc.
(Global), which includes a pending Australian patent application, certain other patent rights,
copyrights, design rights, trademark rights, and any other rights that may exist at any time in
relation to this product. The Company issued 4,000,000 shares of restricted common stock
valued at $4,000 for the purchase of this technology. In addition, the agreement called for
the Company to issue 1,000,000 restricted shares when the technology has reached a point
of technological feasibility and 1,000,000 restricted shares when Global has produced a fully
working prototype of the Jet Water System that is ready for large scale production and
deployment in commercial applications. The first 1,000,000 shares were issued in January
2001. The second 1,000,000 shares were issued in March 2004.

In July 2006, the Company acquired the exclusive license for North America to exploit the
Hybrid Coal and Gas Turbine Technology for electricity generation by acquiring the common
stock of Methgen, Inc. for 763,700 shares of common stock of the Company at
$496,405 based on the closing price of the shares on the date of acquisition. The
Company’s acquisition included a license recorded by Methgen valued at $536,373. The
Company believes that it may not be able to recover the carrying amounts of these assets
and has historically charged income for impairment of the license.

On June 1, 2007 the Company acquired the 50% interest that the Australian Government’s
Research entity, Commonwealth Scientific and Industrial Research Organisation held in
ComEnergy Pty Ltd. COM Energy held an exclusive international license for the HCGT
technology.

On October 22, 2007 the Company completed its condition precedent to permit the CSIRO
to assign the rights and ownership of Patents for the HCGT technology. As at the Balance
Date the transfer of the Patents is being completed.