Ed mills pdf file blaze energy presentation ccafrica business summit september 2014

Brazeau River Complex Owned and Operated by Blaze Energy Ltd. 0

Presented by: ED MILLS Blaze Energy Ltd. Canada-Africa 2014 Business Summit September 15-18, 2014

Disclaimer Certain statements contained in this presentation constitute forward-looking statements under applicable securities laws. These statements relate to future events or future performance and include statements respecting Blaze projects in Canada and Cameroon, the ability of the Company to obtain the BOOT Agreement required for the Kribi Hydrocarbon Terminal Project, the expectation that cash flows will be obtained in the future, that the Company will be able to build the Kribi Hydrocarbon Terminal, that the Company will be able to obtain funding sources for the Projects on terms that are acceptable to it or at all, the ability of the Company to obtain credit facilities on terms that are acceptable to it or at all, that Kribi Hydrocarbon Terminal Project will generate additional revenue at a time when crude oil prices are relatively strong, that the Company will be able to maximize revenue during periods of fluctuations in commodity prices, that the Company will benefit from the knowledge base and operational expertise of Blaze and that the Company has the ability to complete the Capital Program on time and on budget or at all and that the Projects are feasible and economic.

In addition, statements relating to "reserves" are deemed to be forward-looking statements as they involve the implied assessment based on certain estimates and assumptions that the reserves described can be profitably produced in the future. There are numerous uncertainties inherent in estimating quantities of proved and proved plus probable crude oil, NGLs and natural gas reserves and in projecting future rates of production and the timing of development expenditures. The total amount or timing of actual future production may vary significantly from reserve and production estimates.

All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", "budget", "plan", "forecast", "potential", intend" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements. Although Blaze believes that the expectations reflected in such forward-looking statements are reasonable and represent Blaze's expectations and belief at this time, such statements involve known and unknown risks and uncertainties which may cause the Company's actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from expectations include, among other things, general business, economic and market factors, including interest rates, business competition, changes in government regulations or in tax laws, in addition to those factors discussed or referenced in "Risk Factors". These factors should not be considered exhaustive. Many of these risk factors are beyond the Company's control and each contributes to the possibility that the forward-looking statements will not occur or that actual results, performance or achievements may differ materially from those expressed or implied by such statements. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these risks, uncertainties and factors are interdependent and management's future course of action depends upon our assessment of all information available at that time.

Except as required by law, Blaze undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events

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Blaze Energy > Founded in 1995

> Management team together for 26 years > Owner of 2nd largest natural gas processing plant in West Central Alberta > Proven petroleum storage and pipeline construction expertise > Excel at optimizing opportunities in our core areas

> Operating in Canada and Cameroon

BLAZE CURRENT OPERATIONS Image Source : https://www.google.ca/maps/

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Blaze’s Areas of Expertise

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Exploration and Production

> Current Production: 5,000 BOE/d > Recently drilled a 4,800m (3,400m X 1,400m) horizontal well in the Devonian Formation > Total project costs of $30 MM

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Midstream > Owner and Operator of the Brazeau River Complex (BRC)

> 185 MMcf/d capacity is the 2nd largest in West Central Alberta > 510 tonnes of sulphur and 30,000 m3 of condensate processed daily > Deep cut process chills the gas to -108º C for increased C2+ yields

Sell to Market: Methane – C1 Ethane – C2 Propane – C3 Butane – C4 Condensate – C5+

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Storage > Management’s experience includes the construction of over 130,000 m3 of storage

> 3 tanks were constructed in Yaoundé, Cameroon with a total capacity of 15,000 m3 > Utilized a hydraulic jack for top down construction of the Yaoundé tanks 6

Pipeline Construction > Blaze has constructed over 7,000 km of pipeline

> Commissioned a 12 inch 55 km pipeline in April 2014 in Alberta, Canada > Constructing a 35 km 36 inch pipeline at a cost of $100 MM in Alberta, Canada

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Pipeline Technology

Image Source : www.apollotrenchless.com

> Blaze utilizes Horizontal Directional Drilling (HDD) to reduce environmental impact

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Pipeline Construction

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Pipeline Construction

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Pipeline Construction

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Alberta Storage Tanks > Alberta currently has over 3 million m3 of petroleum product storage

> Additional 1.1 million m3 is expected to be added in the next 2 years

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Alberta Pipelines

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Poised for Expansion > Blaze is bringing Alberta's extensive tank storage and pipeline experience to develop and expand Cameroon’s petroleum industry

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Regulatory and Environmental > Blaze is regulated by:

> Alberta Energy Regulator (AER) > Alberta Boiler Safety Association (ABSA) > Occupational Health and Safety (OHS) > Last ABSA compliance audit Blaze scored a 97% rating > Industry average is less than 88% ABSA PEIM System Audit Report

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Pipelines are Progress “Alberta leads in pipeline safety and has the most thorough overall regulatory regime of all assessed jurisdictions.�

Ken Hughes, Alberta Energy Minister (2012-13)

Image Source: https://www.assembly.ab.ca/net/index.aspx?p=mla_bio&rnumber=27&leg=28

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Operating with Integrity

Image Source: www.realcowboycollege.com

> Blaze comes from a business culture where deals are made over a handshake > These values have been maintained while working in Cameroon > Blaze views an MOU as a paper handshake 17

Blaze Energy in Cameroon

Blaze Energy Ltd.

Blaze Energy International Ltd.

Blaze Energy Cameroon S.A. Image Source: en.wikipedia.org

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Cameroon Vision 2035

MIDSTREAM

Image Source: journey.thesanctuarycentre.org

Blaze is committed to working with the Republic of Cameroon to achieve Cameroon Vision 2035 Today, Tomorrow and Tomorrow’s Tomorrow 19

Cameroon’s Energy Challenge “Notre défi le plus urgent doit être d’augmenter l’offre d’énergie, à la fois pour satisfaire les besoins croissants de la population et pour répondre à la demande des entreprises” His Excellency Dr. Basile Atangana Kouna Minister of Water Resources and Energy June 20th, 2012 Speech

Image Source www.minee.cm

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Building Partnerships > Blaze submitted an expression of interest to SCDP with the following goals: > Assist SCDP in their efforts to improve the availability of security stockpiles > Improve the distribution of petroleum products > Construct a new terminal in Kribi > Expand and modernize SCDP operations Image Source www.cameroun24.net

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YaoundĂŠ Depot Expansion Project

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YaoundĂŠ Depot Expansion Project

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SCDP MOU The MOU with SCDP includes the following storage and pipeline projects:

> Construction of 3 new petroleum product storage facilities: > Kribi Hydrocarbon Terminal > Limbé Depot > Far North Depot

> Construction of national network of pipelines linking Limbé, Douala, Kribi and Yaoundé

Summary MOU signing ceremony Edmonton, Alberta September 19, 2012

L to R: Biagio Mele (President and CEO, Blaze Energy Ltd.), Edward Mills (President and CEO ,Blaze Energy Cameroon S.A.), Mr. Ken Hughes (former Alberta Energy Minister) Ibrahim Talba Malla (GM ,Sonara Refinery and former SCDP Chairman) and Gaston Eloundou Essomba (GM ,SCDP)

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Project Implementation > For the projects to be realized in the BLAZE/SCDP MOU, Blaze will be signing a Public- Private Partnership (PPP) contract with the Government of Cameroon. > Projects will be completed through a Build-Own-Operate Transfer (BOOT) agreement. > Starting work on the priority project in the MOU: > Kribi Hydrocarbon Terminal > Blaze is working with:

> CARPA (Cameroon PPP agency) > CIPK (Kribi Port & Industrial Complex) > Ministry of Water and Energy Image Source: www.perfection-events.com

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> SCDP

Project Implementation (PPP Process) PROJECT IDENTIFICATION •Master Plan •Urgent Needs •Political Decision FEASIBILITY STUDIES

BUDGETARY SUSTAINABILITY

PRIOR ASSESSMENT

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PHASE 1

PHASE 2

PROCUREMENT PROCEDURE P R O J E C T P R E P A R A T I O N

Call for Expression Interest Call for Restricted Tender Pre-Qualification

P R O C U R E M E N T

Award Signing

Construction- Service Provision

PHASE 3 E X E C U T I O N

Kribi Hydrocarbon Terminal (KHT)

Kribi Hydrocarbon Terminal

(KHT)

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Kribi Storage Complex

Kribi-YaoundĂŠ Pipeline

(KSC)

(KYP)

Kribi Port & Industrial Complex KHT is part of the Kribi Port & Industrial Complex Project which includes 26,000 hectares of land Forecasted to handle on an annual basis1: > 400,000 containers (China Harbour Engineering) > 35 MM tonnes of iron ore (CamIron/ Sundance) > 3.5 MM tonnes of LNG (GDF-Suez) > 3.5 MM tonnes of Aluminum (Rio Tinto Alcan) > 3 MM tonnes of petroleum products (SCDP / Blaze)

Image source: www.kribiport.cm

1. www.minepat.gov.cm

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Kribi Storage Complex (KSC) Kribi Storage Complex

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Feed Study > Feed Study completed from August 2012 to July 2013

> Geotechnical work consisted of: > 104 holes drilled over 245 Hectares

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Feed Study

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Feed Study Field visit of Kribi Storage Complex April 15, 2013

HE Benoit-Pierre Laramee, High Commissioner of Canada to Cameroon and Gaston Eloundou Essomba, SCDP, General Manager

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Cameroon Storage Capacity > Existing storage capacity is 271,129 m³

> Blaze will double storage capacity with the construction of the KSC > The KSC will increase security stockpile above the required minimum EXISTING STORAGE DEPOTS*

CAPACITY OF LIQUID PRODUCTS (m3)

CAPACITY OF LPG PRODUCTS (m3)

DOUALA

156,725

2,940

BAFOUSSAM

18,520

588

YAOUNDÉ

55,885

980

BELABO

6,080

-

NGAOUNDÉRÉ

5,400

274

GAROUA

23,600

-

MAROUA

-

137

266,210 m3

4,919 m3

TOTAL Image Source: www.wordtravels.com

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Image Source: http://www.scdp.cm/

Kribi Yaoundé Pipeline (KYP) > Follow same corridor as the Chad – Cameroon pipeline > Construction of 4 bi-directional single phase pipelines for the following products: > Diesel (12”) > Gasoline (12”) > LPG (8”) > Water > Booster Pump Stations at 100 km intervals

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Dedicated Single Phase Pipelines > Dedicated pipeline for each product

> No cross contamination, eliminates need for further processing > Safer to move products in dedicated pipelines > 7.2x less expensive than batching products > Dedicated security stock piles in Kribi will be fully available in YaoundĂŠ upon request

YaoundĂŠ Kribi

7.2x Less expensive

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KYP Primary Benefits > Fuel where you need it, when you need it

> Quicker, safer and more economical than other transportation modes Cost of Transporting Petroleum Products 120 100

80 FCFA/M3/KM

60 40 20 0 Roadways Shipping

Railways

Pipelines

Product Transporation Modes

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Social Impact

Image Source: www.clipartof.com

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Job Creation and Training 5,000 direct jobs during construction 250 permanent operation jobs 50% minimum local Cameroon workforce

Image Source: Www.raiuniversity.edu

> Blaze has been providing hands on training at our facilities > Blaze Energy’s training program is in line with Cameroon’s Growth and Employment Strategy Paper which seeks to extend continuous training and learning through experience1 Image Source: www.txcareercenter.com

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Section 3.3.250 (v), Republic of Cameroon: Growth and Employment Strategy Paper August 2010

Training at

Image Source: www.sait.ca Image Source: www.sait.ca

> SAIT is the recipient of the 2014 Alberta Export Award for it’s efforts in developing and executing Workforce Nationalization training programs.

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1-http://www.sait.ca/about-sait/news/news/2014-5-23-sait-polytechnic-recognized-for-international-training-efforts.php

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Technology Transfer > Horizontal Direction Drilling equipment can also be used to drill water wells. > Blaze is open to discussions with Cameroon companies regarding technology transfer

Image Source: www.aryatrenchless.com

> Committed to transferring Canadian technology and expertise for the benefit of the People and Government of Cameroon

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Access to Potable Water > Blaze will construct a 200 km water pipeline in the same right of way as the gasoline, diesel and LPG pipelines > This pipeline will provide potable drinking water to as many as 2 million Cameroonians > Blaze welcomes Cameroonian entities interested in using the trench to improve other services in Cameroon

Image Source: stacytrasancos.com

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Fuelling Progress in Cameroon Once completed the KHT will potentially have the following impacts:

> Increase security stockpile capacity > Decrease the cost of fuel > Significantly reduce Government subsidies > Supply products in a safer, faster, and cost efficient manner to the rest of the Country > Make Cameroon a major player in the International petroleum markets > Provide work to thousands of Cameroonians > Improve the life of the People

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“Our Government recognizes the importance of opening new markets for Canadian goods, services and investment which is why we launched the most ambitious trade agenda in Canadian history.�

Prime Minister Stephen Harper

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Contact Information

Head Office: 1010, 900 – 6th Ave SW Calgary, AB, Canada T2P 3K2 Ph: 011 (403) 264-0877 / Fax: 011 (403) 264-0866 info@blazeenergy.com www.blazeenergy.com

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