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WMK:TSX Venture Exchange

Introduction to WhitemudMK
Burl Aycock C.E.O. Murray Yewchuk VP Marketing with. Fred Sabins President CSI Technologies
January 2007

January 2009

Outline
About Whitemud Resources Metakaolin: Background Manufacturing Product and uses Oilwell industry strategy Cementing in Canada Logistics Technical presentation

Who is Whitemud Resources?


Canadian public company developing a worldclass kaolin clay deposit in southern Saskatchewan Incorporated in 2005 Focused on producing and marketing highreactivity metakaolin (branded Whitemud MK) 163 million tonnes of measured and indicated resources of kaolin ore (@ grade of 41%) Completed construction of our mine and plant Commercial sales in 3rd quarter of 2008 quarter

Metakaolin Background
Metakaolin has a proven history of enhancing the performance of concrete First known use in 1966 (Brazil) Introduced to North America in mid-1980s North American introduction and growth due to industry leadership from kaolin/metakaolin producers and support from scientific community

New Benicia-Martinez Bridge, California with Metakaolin 4

What is Metakaolin?
Metakaolin is a pozzolanic supplementary cementing material (SCM) created from kaolin clay and used to produce high performance concrete: Kaolin White-coloured clay Aluminum silicate Principal uses: Filler and coating for paper Paint, plastics, ceramics, refractory, rubber
Heated to 800C

Metakaolin (WhitemudMK) Becomes chemically reactive Principal use: Highly reactive SCM in concrete and oil well cementing 10 to 20% replacement of cement in concrete Up to 30+% replacement of cement in oil well cementing

Metakaolin
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Gollier Creek Plant, Wood Mountain SK Metakaolin Certification for the period September 30, 2008 - December 31, 2008 Chemical Properties Requirements CSA ASTM/AASHTO 3% Max 4% Max 70% Min 3% Max 10% / 5% Max - / 1.5% Max

SO3 Sum (SiO2, Al2O3, Fe2O3) Total Alkalis as Na2O Moisture Content Loss On Ignition - 800 C Available Alkalis as Na2O Physical Properties
Fineness (45 um % retained) Density Autoclave expansion Water Requirement Strength Activity Index 7 day 28 day

0.06 93.6 1.4 0.2 1 0.22

% % % % % %

10% Max

3 2.56 0.02 105

% g/cc % % of Control

34% Max

34% Max

0.8% Max

0.8% Max 115% Max

121 116

% of Control % of Control

75% Min 75% Min

75% Min 75% Min

Uniformity Requirements

Density Fineness (45 um % retained)

1 0.4

% Variation from Ave. Variation from Ave.

5% Max 5% Max

This product conforms to the requirements of Type N Pozzolan in the following Specifications: CSA A3001-08, ASTM C 618-08 and AASHTO M 295-07

Certified Rick Ketcheson, Director Technical Services & Product Development

2 January, 2009

Manufacturing process

Gollier Creek Plant

Mining of kaolin ore located below coal seam

Ball Clay
Coal Seam

Kaolin Ore

Competitive Advantages
Limited existing competition Current supplies priced at more than twice Whitemud MK Metakaolin is currently priced at $450 to $650 per tonne, limiting its use Only a small amount of North American kaolin is processed into metakaolin Centrally located to North American markets Engineered product with unique performance qualities State-of-the-art plant to produce a consistent product

WhitemudMK Value Proposition To sell metakaolin at a price that will add value to broader applications in concrete and oil well cementing
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Environmental Benefits

Reduction of Greenhouse Gas emissions Manufacture of metakaolin generates 55% fewer greenhouse gas emissions than cement
Sustainability Contribution Using WhitemudMK improves concretes strength, durability and reduces permeability WhitemudMK will contribute to longer service lives and less maintenance and repairs Perceived as a Green supplementary cementing material by specifiers

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Oilwell Strategy
Focus - Make Whitemud MK available throughout North America economically in bulk quantities Rail shipments to target markets Sell directly to service companies Investigate intergrinding / blending options Primary Markets : Western Canada US Gulf coast TX, LA, OK US Rockies International opportunities Silica sand opportunities Silica Flour Fine, mineral filler

Oil Well Cementing update


Canadian activity Canadian service cos have cemented wells with WhitemudMK Multiple locations have cemented approximately 20 wells Performed extensive lab testing to verify performance Several other well cementers are evaluating in testing lab A new solution for light weight and higher density slurries WhitemudMK in oil well cement reduces material and operational costs with its flexible design capabilities

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Metakaolin vs. Silica Fume

9000 8000 7000 6000


PSI MK (8%) SF (8%)

Silica Fume Vs Metakaolin 807 lb/yd3, w/b 0.39

5000 4000 3000 2000 1000


0 3 Day 7 Day 28 Day 56 Day 91 Day
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Handling & shipping

Excellent flow characteristics Ship to customers in pneumatic trucks Easier to handle than silica fume Feed back from truckers & customers Handles like cement or fly ash

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Quality Assurance
Fully equipped dry lab
Malvern XRF CSA / ASTM mill certs

Concrete lab
mortar cubes concrete cylinders customer testing full time technician

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Use of Metakaolin in Oil Well Cements


Whitemud Resources Inc. & CSI Technologies

January 2007

Oil Well Cementing


Easy to design slurries with additives Thickening time, fluid loss, rheology, free water Appropriate density Rapid set and good compressive strength Tensile strengths Excellent bond to pipe/formation Long term isolation

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Metakaolin in Oil Well Cements


Light weight cement Flexible density design Enhanced mechanical performance Normal weight cements Enhanced mechanical performance Compressive strength, Tensile strength

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Flexible Density Design


System 1 Type 1, MK* Water gal/sk of cement 20.38 ft3/sk Yield of blend 2.35 Density ppg 11.75 PV/YP 9/10 Free Fluid % 1.6 CS psi (24 hrs 120F) 364 CS psi (72 hrs 120F) 499

2 Type 1, MK
3 Type 1, MK 4 Type 1, MK 5 Type 1, MK

15.65
11.58 8.84 7.78

1.91
1.54 1.29 1.19

12.5
13.5 14.5 15

6/8
11/21 35/56 57/103

2.4
0.8 0.0 0.0

564
1109 1962 2524

1023
1629 2564 2876

6 Class H, MK* 7 Class H, MK 8 Class H, MK 9 Class H, MK

20.73 15.96 11.85 9.08

2.35 1.91 1.54 1.29

11.75 12.5 13.5 14.5

9/9 8/7 15/17 30/50

1.2 5.2 0.0 0.0

166 232 565 1174

365 513 1093 1768

10 Class H, MK

8.00

1.19

15

51/79

0.0

1641

2049

* Additional 1% SMS added

Compressive and Tensile Comparison


System Cement Dispersant SMS MK Density CS Tests TS FF

bwoc
16 Class H 17 Class H

bwoc

bwoc
0.0% 10.0 %

ppg
16.4 16.83

48 hr 120F
2532 psi 3806 psi

48 hr 120F
495 psi 552 psi

120F
0.4% 0.0%

18 Class H

2.0%

35.0%

17.35

4549 psi

724 psi

0.0%

19 Class H

40%

12.5

435 psi

120 psi

0.8%

46 Class H

2.5%

12.5

301 psi

73 psi

0.2%

Thickening Times of MK Slurries


Systems Cement MK bwoc 21 Class H 40% Retarder gal/sk Density ppg 12.5 Temp. F 100 Tests Thickening Time 70 Bc 4:19*

22 Class H
23 Class H

40%
40%

13
14

100
100

3:51*
3:24

24 Class H
25 Class H

40%
40%

0.06
0.06

12.5
13

128
128

4:22
3:21

26 Class H
27 Class H

40%
40%

0.07
-

14
12.5

128
155

3:21
-

28 Class H
29 Class H

40%
40%

0.08
0.08

13
14

155
155

4:54
2:35

* Thickening Time based upon point of departure

Comparison of Lightweight Cements with MK


System Cement Bentonite bwoc
30 Class H 33 Class H 30%

Tests MK bwoc
40%

Silica Fume bwoc

Pozz bwoc

SMS bwoc
1%

Density ppg
11.75 11.75

CS
24 hr 150F

CS
24 hr 212F 421psi 200 psi

FF 176F
0.0% 0.0%

31 Class H 36 Class H 4% 37%

40%

12.9 12.9

568 psi 366 psi

485 psi 182 psi

0.0% 0.4%

32 Class H 34 Class H 4%

40%

14.2 14.2

946 psi 526 psi

0.0% 1.6%

Cement Column Seals


System Test
Seal Test

Number

Cement

MK
bwoc

Silica Fume
bwoc

Pozz
bwoc

SMS
bwoc

Bent.
bwoc

Density
ppg

Temp.
F

Free Fluid
80F

Failure
Day
1 day no failure
34 day no failure

37
38

Type I
Type I 40%

40%

8%

12.5
12.5

80
80

0.40%
2.40%

44

Class H

2.5%

12.5

80

1%

Cost Comparison
Cement Bent.

Silica Fume bwoc

Pozz

MK

SMS

Density

24 hr CS 150F psi

24 hr CS 212F psi
421 200

Yield

Cost

bwoc
30 Class H 33 Class H

bwoc

bwoc
40%

bwoc
1%

ppg
11.75 11.75

ft3/sk
3.48 3.14

Per ft3 slurry


$2.84 $3.75

30%

31 Class H
36 Class H 4% 37%

40%

12.9
12.9

568
366

485
182

2.58
1.66

$3.64
$2.88

32 Class H

40%

14.2

946

2.01

$4.68

34 Class H

4%

14.2

526

1.53

$3.81

Assumptions: Cement: $100/ton Metakaolin: $250/ton Silica Fume: $500/ton

Bentonite: $0.30/lb Sodium Silicate: $0.50/lb

Poz: $70/ton TXI LW: $175/ton

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Cost Comparison
Cement MK Density 24 hr CS Yield Cost

bwoc

120F psi

ft3/sk

Per ft3 slurry

Type I

40%

12.5

564

2.80

$3.35

TXI LW
Type I TXI LW 40%

12.5
12.5 12.5

427
1109 1052

1.57
2.26 1.16

$4.17
$4.16 $5.67

Assumptions: Cement: $100/ton Metakaolin: $250/ton TXI LW : $175/ ton

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Conclusions
Light weight cement design Very Flexible density design One base composition From 15 ppg down to 11.75 ppg Type I From 15 ppg down to 11.75 ppg, Class H Lower cost per volume for enhanced properties

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Contacts
Whitemud Resources Corporate Head Office: 301, 3345 8 st. SE Calgary, AB T2G 3A4 Tel: (403) 517-0040 Fax: (403) 517-0046 Fred Sabins, Technical Consultant CSI Technologies 2202 Oil Center Court Houston Texas, 77073 Tel: (713) 725-3078 Fax: (713) 523-9417

www.whitemudresources.com

www.csi-tech.net

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