AN IMPRESSIVE LINE OF TECHNICALLY ADVANCED LUBRICANTS UNE LIGNE IMPRESSIONNANTE DE LUBRIFIANTS TECHNIQUEMENT AVANCS

GUARDIAN BRAND LUBRICANTS

Presentation Outline
The purpose of this presentation is to explore current regulations, and laws in Canada which will assist Guardian Brand Lubricants onto the Canadian Market. Consider that Canada is a world leader on innovative legislation, and Kyoto compliance. This presentation is for discussions and related to a feasibility study on gaining market share for Quest 2000 Group International Inc. and its Canadian distribution of Guardian Brand Lubricants.

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Canada and the Environment New Canadian Regulations Environmental Verification Entrance into the Canadian Market Commercial Sales Potential

Lubricant World Fact: Global lubricant demand to reach 41.7 million metric tons in 2010 World demand for lubricants is forecast to advance 2.3 percent per year to 41.7 million metric tons in 2010.

Canada & The Environment

Canada was the first country world-wide to sign and ratify the Kyoto Accord, and since its inception has taken a made-in-Canada approach to reducing GHGs or greenhouse Gases. A number of changes within the Canadian government have taken place to address climate change issues, as well as economic, and technological changes required for Canada to reduce its carbon debt. This puts the Guardian Brand Lubricants in a very comfortable position, to not only enter the Canadian market, but consume current supplier contracts in place. Quest will outline in detail later on what legislation, acts, and incentives have been put into place with Commercial, Municipal, and domestic consumers in Canada.

CBC NEWS, TORONTO

Lubricant World Fact: Lubricant additives demand in the US is forecast to advance two percent per year to $1.7 billion in 2006, with volume demand reaching 1.9 billion pounds. Prices will continue to increase as higher-value, higher-performing additives

New Canadian Regulations

Canada over the past few years has moved into regulating and forcing the transportation, and commercial vehicles into reducing, by law, their emissions. Guardian Lubricants actually meet the standard. Consider that currently in Canada Commercial clients, and Municipal governments are scrambling for fleet trials, and products that will meet the need to reduce consumption. Below I have outlined the regulations, and how the Canadian Government has moved toward a no choice approach.

Large Trucks and Buses Trucks and buses are types of heavy-duty vehicles used in Canada. From a regulatory perspective, any on-road vehicle that has a Gross Vehicle Weight Rating (GVWR) of more than 3,856 kg (8, 500 pounds), a curb weight of more then 2,722 kg (6,000 pounds) or a basic vehicle frontal area in excess of 4.2m2 (45 square feet) is classified as a heavy-duty vehicle. Most heavy-duty vehicles are powered by diesel engines. http://www.ec.gc.ca/cleanair-airpur/Large_Trucks_and_Buses-WS733706F8-1_En.htm Regulations http://www.ec.gc.ca/ceparegistry/documents/regulations/g2-13701_r1.pdf

Lubricant World Fact: The lubricants business in Latin America accounts for roughly 765 million gal, valued at nearly $5.8 billion, in 1999. This represents 22% of market volume for the Americas and 39% of its value.

Environmental Verification

Verification provides Canada and the world with proven and verified environmental claims. Quest 2000 has made it into step 5 of 6 towards completing the verification process with environment Canadas verification contractor. The implications of verification is far more reaching then the Canadian Market alone. As Canadas role in the Kyoto Accord is to not only verify environmental technologies, but provide those technologies to the rest of the world. Quest 2000 is also working on a CDD-54 engine oil logo within Canada, no other lubricant listed in either programs at this time.

Lubricant World fact: Canadian demand for lubricants and functional fluids is forecast to grow 4.4 percent per year to over 560 million gallons, with value reaching $3 billion in 2008. Growth will be supported by tighter environmental laws, and regulations.

Canadian Legislation (Sample)

1) The Motor Vehicle Fuel Consumption Standards Act (MVFCSA) The Act was proclaimed on November 2, 2007 and the Department of Justice website is in the process of updating their information to indicate that this Act is now in force. 2) Canadas Clean Air Act will allow the government to: Move industry from voluntary compliance to strict enforcement; Replace the current ad hoc, patchwork system with clear, consistent, and comprehensive national standards; and Institute a holistic approach that doesnt treat the related issues of pollutants and greenhouse gas emissions in isolation. 3) Vol. 141, No. 49 December 8, 2007 DEPARTMENT OF THE ENVIRONMENT CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999 Notice with respect to reporting of information on air pollutants, greenhouse gases and other substances for the 2006 calendar year Pursuant to paragraph 71(1)(b) of the Canadian Environmental Protection Act, 1999, notice is hereby given that the Minister of the Environment requires, or the purpose of assessing whether to control, or the manner in which to control, the substances listed in Schedule 1 to this notice, any person described in Schedule 2 to this notice who possesses or who may reasonably be expected to have access to the information required in Schedules 5 to 19 to this notice, to provide that information for the 2006 calendar year no later than May 31, 2008, 3 p.m. Eastern Time. http://canadagazette.gc.ca/partI/2007/20071208/html/s uppl-e.html

Entrance Into The Canadian Market

Given the enforcement and reporting required within Canada Guardian Lubricants has a window of opportunity under environmental law. Municipalities, and Commercial truck fleets will be scrambling to locate technologies that reduce consumption. Green funds available to fleets who engage in trials and testing Pending environmental verification making Guardian Lubricants the only engine oil listed as such Canada wide Canadas agreement within Kyoto to market technologies that have been verified as environmental, and carry the Canadian verified logo Lubricant World fact: Process oils to lead overall lubricant growth in the US Demand for lubricants is forecast to increase slightly through 2008 to 2.7 billion gallons, valued at $8.1 billion. Lubricant demand is expected to reverse declines.

Potential Virgin Sales in Canada

Table 1 Virgin 2004 sales from 2005 Lubricants Profile Report Data - (thousands of liters) PRODUCT Passenger Car Motor Oil 22810 B.C. 23.8% TOTAL CANADA 246404

Heavy Duty Engine Oil Railroad Engine Oil Totals

24287 2780 95709

25.4% 2.9%

178149 17558 950069

Using the following calculation : CIU Volume (liters) = Virgin Oils x Market Share x CIU factor

Lubricant World Fact: Considering from the demand, in 2006, the lubricant demand and price in China market was on a continuous rise. According to the latest statistics, China's accumulated lubricant output of Jan-Dec amounted to 57.23 million tons,

Overview

Canada is primed by the Canadian government to force new environmental technologies onto the market Guardian Lubricants surpasses current Canadian CD-054 Standards Quest 2000 has developed substantial business relationships in and out of the Canadian Government to utilize and implement environmental and sales structure Quest 2000 has conducted research on the laws, and regulations, Kyoto, in order to use those outlined in this presentation for sales to municipalities, commercial fleets, etc. Quest 2000 is currently working with the Federation of Municipalities to place funding for municipal fleet trials, and further testing not currently completed, such as emissions testing Quest 2000 currently has 3 distributors in Canada, and two pending agreements. The Canadian government is responsible for verifying environmental technologies and marketing them to governments world-wide Quest 2000 is in a very nice position within Canada

Lubricant World Fact: The global lubricant industry has progressed form isolated applications to being a major industry worldwide which has seen the growth and progress of companies as ExxonMobil , Shell , BP & Chevron Texaco.

Presentation Developed by

Quest 2000 Group International Inc.

An Alberta Registered Corporation

Lynda Pinter, President Canada 403 457-5131 DC 202-506-9019 Email:q2000@telus.net Web: www.q2000.weebly.com

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Oh, le Canada!