Cielo Waste Solutions Corp.

Good afternoon, my name is Sergio and I will be your conference operator today. Before we begin, we need to read the following statement. The statements or comments made on this conference call may be forward-looking statements, which may include future-oriented financial information and other statements of the company's plans, objectives, expectations or intentions. These matters involve certain risks and uncertainties and are based on certain assumptions. The company's actual results may differ significantly from those projected or suggested and any forward-looking statements due to a variety of factors. Cielo has included forward-oriented financial information to provide listeners with a more complete perspective on Cielo's operations taking into account the proposed transaction with Expander Energy Inc. Any forward-looking statements are made as of the date hereof and accept as required by law. the company assumes no obligation to publicly update or revise such statements to reflect new information. Listeners should continue to review and consider information disseminated through news releases and otherwise filled by the companies on CDAR+. At this time, I would like to welcome everyone to the Yellow Waste Solutions Company Update Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press Start, then the number 1 on your telephone keypad. Thank you. I will now hand it over to Mr. Ryan Jackson, Chief Executive Officer, and Ms. Yazdip Dhaliwal, Chief Financial Officer of CLO Way Solution. Please go ahead.

Thanks, Sergio, and good afternoon, everyone. Thank you for joining us this afternoon. Of course, you realize we're here to talk about the press release and also moving forward what we are planning with respect to the Cielo and Expander transaction. And we'd like to expand on that, no pun intended, as it relates to what the strategy is moving forward as a group and also with respect to how things are going to also look from a financial standpoint as has been previously disclosed. I'm happy to welcome with me today on the phone Steve Kresniak, who is the Chief Technology Officer with Xpander, along with James Ross, Executive Chairman and CFO. Also, Jasdeep Dhaliwal and Ryan Carruthers, who you are very familiar with. And we wanted to start by providing you with a little bit of context around the call today and understand where we got to and where we're going. And with that, we wanted to jump right in and say that since 2022, the new management team has been interested in a larger strategy of not just project development and technological development, but also a larger strategy around M&A and as it relates to complementary technology or technology that is of a bolt-on nature to the existing one that Cielo possesses. We needed to find the right dance partner and the synergies of technologies has been the focus of a long, along with accelerated timeline to revenue being the North Star as I like to call it with respect to Cielo. We wanted to make sure though as we were going forward that we had the right expertise and the caliber of people that would be able to execute on the business model. Understanding that we have significant feedstock agreements to execute on and Quite frankly, time is money. Give you a little bit of a history with Xpander, but they're going to obviously take care of their own stuff as it relates to explaining to you where they've come from and where they're going. But we had initial conversations with Xpander dating back to last year around a potential engagement around Cielo's technology. And what this did is it led to further conversations and understanding of synergies and compatibility between the two companies' needs and goals. Expander's superb engineering expertise and experience, which gets into the hundreds of years as it relates as a collective, and also the diverse skill set of fabrication engineering and engineering procurement and construction services, makes Expander an ideal partner for CLOK. The nature of the transaction is that Cielo has acquired an exclusive license in Canada to use Xpander's enhanced biomass-to-liquids and biomass-gas-to-liquids patented technologies created by our very own Steve Presniak. Since the focus of Cielo's feedstock is railroad ties, we have also acquired an exclusive license for creosote and treated wood feedstock in the United States. How does this impact our future? Well, it allows Cielo to launch our Dunmore project using Expander's technology, honoring existing agreements with CP Rail. Cielo has identified future US locations as well for development with the EBTL, that's the Enhanced Biomass Liquid, then BGTL, Biomass Gas Liquids technology. The focus of our feedstock in the United States will be railroad ties. Cielo has acquired three additional projects that Expander has underway. Expander will be providing ongoing project management expertise for each of the three projects of these, and Cielo's projects in the US and in Dunmore, project management services around engineering, procurement, and construction. That's EPC as an acronym. Technology consulting benefits Cielo through a number of different ways, and we'll get into that as we go forward. With respect to Carsland 1, all agreements are in place or are being finalized. The technology is ready to be executed. The first full year of production is anticipated to be 8.2 million litres per year. And as it relates to the Dunmore project, it is expected to be 34 million litres per year. yielding revenue of $19 million annually and $79 million annually. With respect to Cars Land 2, the other expander project, we have the expectation that further development can and will be done as a secondary facility would be constructed at Cars Land. We already are there. It does make sense to further explore that extra phase. What does this mean for our technology, for Cielo's technology? We're continuing to further enhance that technology and the initial reason why we connected with Xpander in the first place. Management believes that we have an opportunity to develop our technology further as a joint effort with Xpander's expertise and experience now at the table for us to essentially have one team and one goal. There are various stages in the life cycle and Cielo, has moved away from being a pre-revenue, pre-production company to working on developing projects with market-ready technology. At this point, you've probably heard enough of me talking, so I'm going to introduce James Ross. Jim has over 35 years experience in the investment industry, including executive management, small capital investment banking, venture capital, private equity, and sales and trading. Jim has held leadership positions at Jennings Capital and Seafree Power Corp, a renewable energy company, now Good Energy's capital. Jim is a director and a shareholder, or was, a director and shareholder of Platinum Communications, now ExploreNet, and a director of Glenn Breyer Technologies, now Uniserve Communications. Jim was the CEO and director of Expander Energy from 2010 to 2017, and is back again as the executive chairman. Jim is also the CEO and co-founder of Alberta Clean Technologies. Jim, welcome.

Thanks, Ryan. Thanks so much, and it's a pleasure to be here today, Ryan, with yourself, Jasdeep, and of course, my longtime partner, Steve Kresniak, on the line, and Gord Crawford, who's also with us here in the room. As Ryan mentioned, I'm currently the executive chairman and CFO of Expander Energy Inc., Our team, of course, of the last 15 years has been focusing on two very core technologies, which Steve Kresniak may allude to a little bit later in his opportunity. But it's gasification of anything that is carbonaceous, so that's anything that has carbon in it. And in combination with Fischer-Tropsch, which some of you on the call may know, it's a well-proven technology that's well over 100 years old. And our focus has always been to make high-value synthetic fuels. to the combination of carbon and hydrogen at the end of the day. So our goal is net carbon or net zero carbon intensity fuels, and this is what brings us together today with our partners at Cielo. Along with my colleagues from Xpander, Larry Hager, Steve Price, and of course myself, we're very excited to be joining Sheila, Peter, and Larry, the rest of the Cielo board, as we move the companies forward Having worked on developing our technologies, as I said, over the last 15 years, by completing an independent assessment of our technologies, we were in communication, we were about to commercialize our technologies. The strategy to commercialization for us has always been the public market as an opportunity. So we looked at IPOs, we looked at other forms of entering into the public market, and there seemed to be an opportunity before us that made some sense. So preliminary conversations that I had with Ryan Jackson, as he alluded to over a year ago, thought that this might be a possibility. We commenced our discussions as talking about the technologies, how we can work together as a group and pursue what their interests were and of course pursuing ours at the same time. We began exploring these possibilities and what's ultimately in the press release that you have received or at least are aware of a week ago, that we're pursuing a partnership as we move forward Along with the entire Xpander team, I was personally impressed with the caliber of Brian and Jasdeep, what they bring to us and bring to this partnership. Those are skill sets that Xpander needed and wanted, and we can see that we're going to be achieving that from that management. It's been a tough hole for the Cielo team. They've done a lot of heavy lifting over the course of the last 12 to 18 months, obviously writing the ship for the company. And that's important for us, too, as we enter into this partnership, because going forward, we want to have a strong execution team, and we think we can work together. And Ryan and Jasdeep have a very critical role in that. So, Ryan, without any further ado, I will pass it back to you, but thanks for the opportunity.