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Title: Investor Presentation


1
  • Investor Presentation

ZEOX CORPORATION
2010
2
  • This presentation includes certain estimates
    and other forward-looking statements within the
    meaning of Section 21E of the Securities Exchange
    Act of 1934, as amended, including statements
    with respect to anticipated operating and
    financial performance, growth opportunities,
    growth rates, potential acquisition
    opportunities, and other statements of
    expectation. Words such as expects,
    anticipates, intends, plans, believes,
    assumes, seeks, estimates, should, and
    variations of these words and similar
    expressions, are intended to identify these
    forward-looking statements. While we believe
    these statements are accurate, forward-looking
    statements are inherently uncertain and we cannot
    assure you that these expectations will occur and
    our actual results may be significantly
    different. These statements by the Company and
    its management are based on estimates,
    projections, beliefs and assumptions of
    management and are not guarantees of future
    performance. Important factors that could cause
    actual results to differ from those in the
    forward-looking statements include the factors
    described in the Risk Factors section of the
    preliminary prospectus. The Company disclaims
    any obligation to update or revise any
    forward-looking statement based on the occurrence
    of future events, the receipt of new information,
    or otherwise. 
  • This presentation includes certain non-GAAP
    financial measures, that are different from
    financial measures calculated in accordance with
    GAAP and may be different from similar measures
    used by other companies.

ZEOX CORPORATION
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Table of Contents
1. Executive Summary
2. Zeox Overview
3. St. Cloud Mining
4. The New Zeox
5. Industry
6. Management
7. Transaction Overview
8. Contact Information
ZEOX CORPORATION
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1. Executive Summary
ZEOX CORPORATION
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Executive Summary
  • Zeox Corporation has gone through a successful
    restructuring.
  • Revenue Growth
  • Cost Reduction
  • Working Capital Improvement
  • Zeoxs Board of Directors in favor of Merger with
    St. Cloud Mining
  • Upside In Place on
  • Mercury Removal
  • Cementation
  • Dolomite
  • Acquisition Program Commenced
  • First Acquisition Ready
  • Other Targets Identified/ 2 In Due Diligence
  • Zeox is seeking 5MM in capital to execute its
    plan.

ZEOX CORPORATION
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Executive Summary
  • Investment Thesis
  • Earnings Potential
  • Market Control
  • Best Zeolite Deposits In North America
  • Only Active Chabazite Deposit In The World
  • Greatest Expansion Capability
  • Environmentally Driven Markets
  • Waste Water
  • Radiation Waste Containment
  • Cap Trade Benefit
  • Management
  • Operational Experience
  • History of Building Companies
  • Management Financial Incentives Aligned With
    Shareholders

ZEOX CORPORATION
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Executive Summary
  • Zeox Corporation was formed with the IPO of C2C
    Zeolite Corporation in 2006.
  • Zeox, led by former Chairman CEO, LuVerne Hogg,
    commenced
  • An acquisition program of quality industrial
    mineral reserves
  • White Cliffs (Diatomacous Earth)
  • Bowie (Chabazite)
  • Burro Creek (Saponite)
  • Ash Meadows (Zeolite)
  • Palo (Sodium Sulphate)
  • An expensive RD effort
  • Cementation
  • Mercury Removal
  • Nano Clays

ZEOX CORPORATION
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Executive Summary
  • Hoping that significant orders for down hole mud
    and the mercury removal product, Zeox invested
    3.5MM in a processing plant in Butte, Montana.
    Unfortunately, Zeox did not realize that
    extensive testing was required and the plant
    operated at less than 5 utlization.
  • The company financed its acquisitions and
    operations with successive private placements of
    equity.
  • Ultimately, Zeox management was incapable of
    commercializing its reserves, resulting in
    substantial operating losses, negative working
    capital and finally, a change of management .
  • New management led by Gerry Spindler (Chairman
    CEO) and Mike Shea (CFO) were appointed on August
    24, 2009 and immediately implemented a turnaround
    plan.
  • Closed Plants
  • Reduced Costs
  • Focused on Increasing Revenue
  • Raised Short Term Working Capital

ZEOX CORPORATION
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Executive Summary
  • Spindler Sheas interest and motivations are as
    follows
  • Merging Spindlers privately held Industrial
    Mineral (St. Cloud Mining) business into Zeox
    thus obtaining a public valuation.
  • Realizing the substantial upside potential of
    Zeoxs reserves and technologies.
  • Becoming the dominant North American producer of
    zeolite with the only active known Chabazite
    reserve in the world.
  • Creating a 100MM diversified industrial mineral
    company within 3 years
  • Organic Growth
  • Acquisitions

ZEOX CORPORATION
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2. Zeox Overview
ZEOX CORPORATION
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Business Overview
  • Canadian Publicly Traded Company
  • Mines
  • Ash Meadows (Zeolite)
  • Bowie (Chabazite)
  • Operating Plants
  • White Cliffs (Diatomaceous Earth)
  • Technology
  • Cementation (Oil Rigs)
  • Mercury Capture (Coal Fired Plants)
  • Market Cap of 12MM (CDN, 01/12/10)
  • Approximately 68MM Shares O/S
  • Zeox Minerals Materials Corp.

ZEOX CORPORATION
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Business Overview
  • Revenue improvement
  • New Zeolite Chabazite Customers
  • Mercury Removal
  • Cementation
  • Cost Reductions
  • Butte, MT Palo Plant Closures
  • Head Count Reductions
  • Reduced Payables
  • MSE/Butte
  • Aggressive Discounting
  • Payables reduced from over 3MM to 1.2MM
  • Improved working capital
  • Short Term Funding from Imagin Minerals
  • Private Placement

ZEOX CORPORATION
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Business Overview
  • Revenues have been increasing led by zeolite
    sales at Ash Meadows and Bowie Chabazite sales,
    primarily the down hold cementation product,
    Zeofume.
  • Other large oil services companies are actively
    testing Zeofume as a replacement for silica fume.
  • Our mercury removal product, AZI, is a proven
    technology and based on Bowies unique Chabazite.
  • In final stage tests with one multi-billion
    dollar company
  • Other large companies, primarily activated carbon
    providers, are testing
  • AZI will compete or complement Activated
    Carbon products with the advantage of not
    negatively impacting the resultant fly ash that
    Power companies sell to cement producers.
  • Zeoxs Chabazite is the only zeolite that has
    been proven to remove mercury in coal fire
    plants.
  • Zeox controls the only active Chabazite deposit
    in North America and possibly the world.

ZEOX CORPORATION
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Business Overview
  • Ash Meadows (Zeolite)
  • 40MM tons of proven Reserves
  • Average Selling Price of 150 - 175/ton
  • Mining Processing Costs 30-60/ton depending
    on size of grind order
  • Bowie (Chabazite)
  • Upper Bed (Zeofume and Water Filtration)
  • 1.3MM tons of proven Reserves
  • Average Selling Price of 500 - 600/ton
  • Lower Bed (Mercury Removal)
  • 880,000 tons proven, 1.1MM probable
  • Average Selling Price 600 - 800/ton
  • Mining Processing Costs 100-300/ton depending
    on size of grind order
  • Technology
  • Mercury Removal
  • Zeofume

ZEOX CORPORATION
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3. St. Cloud Mining
ZEOX CORPORATION
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Business Review
  • North Americas Largest Producer of Natural
    Zeolite
  • Three Business Lines
  • Zeolite
  • Reclamation
  • Aggregates
  • Dolomite
  • Acquired in 2002
  • Increased Production From 12,000 tons (2002) to
    31,000 tons (2008)
  • 2008 Revenues and Gross Profit of 9.4MM and
    2.6MM, respectively

ZEOX CORPORATION
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St. Cloud Mining
St. Cloud Mining St. Cloud Mining

(000's) 2006 2007 2008 2009

Revenues
Industrial Minerals 2,905 3,451 2,990 2,870
Aggregates 409 3,483 1,004 511
Reclamation 5,851 1,971 5,031 458
Other 85 30 402 0
Total 9,250 8,935 9,427 3,839

Gross Profit 2,977 2,417 2,642 1,322

EBITDA 1,259 1,213 1,982 240
ZEOX CORPORATION
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St. Cloud Mining
Sales Segments Animal Feed 60 Ag./Horticulture
30 Filtration 10 Total 100
Production and Prices Increases
ZEOX CORPORATION
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St. Cloud Mining
  • St. Clouds Reclamation Business was founded to
    leverage the skilled employees mining talents.
  • Historically has performed reclamation services
    for Freeport McMoran, and state managed AML
    (Abandoned Mine Land) sites.
  • Established commercially proprietary technology
    for mine shaft closings.
  • As the result of the drop in copper prices,
    Freeport dramatically reduced its reclamation
    activities starting in Q3, 2008.
  • As a response, St. Cloud to refocused the
    business and leveraged its operating capabilities
    with its zeolite and dolomite deposits. While
    still bidding on reclamation contracts, the
    division is also focused on bidding on Post
    Closure Water Treatment for mines.
  • Developed first substantial contracts with new
    clients (RTZ Barrack)
  • Achieved Certified Contractor status in five
    new states.
  • Current Backlog is 1.7MM with the majority of
    contracts won in Q4 2009.

ZEOX CORPORATION
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St. Cloud Mining
  • High quality aggregates have contributed as much
    as 3.4MM in revenues (2007).
  • The majority of historical revenues were for
    improvements on rail lines for Union Pacific.
  • The rail improvements have been completed and St.
    Cloud is focused on increasing revenue to
    projects in the area, including those that will
    be recipient of stimulus funding (e.g. roads,
    bridges and border fence projects).
  • St. Cloud has developed a Dolomite Quarry with
    Aggregates, south of Deming, New Mexico. The
    property has crushing capacity and a grinding
    plant.
  • The dolomite qualifies as a magnesium mineral
    source in animal feed diets and its location
    should provide a cost advantage to other
    competitive dolomite products.

ZEOX CORPORATION
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4. The New Zeox
ZEOX CORPORATION
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Executive Summary
  • North America has very few Mid-Tier industrial
    mineral companies.
  • Managements vision has been to build a 100MM
    diversified North American industrial mineral
    company.
  • We believe the combination of Zeox and St. Cloud
    provides the platform.
  • Zeox (TSXV ZOX) brings to St. Cloud
  • High Quality Reserves/Deposits (Only Chabazite
    deposit in U.S.)
  • Publicly Traded Entity
  • Significant Product/Revenue Upside (Cementation
    Mercury Removal)
  • St. Cloud brings to Zeox
  • Operating Management with Mining Experience
  • Operating Business
  • Mining Equipment
  • Liquidity

ZEOX CORPORATION
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The New Zeox
  • Canadian Publicly Traded Company
  • Mines
  • Ash Meadows (Zeolite)
  • Bowie (Chabazite)
  • Winston (Zeolite)
  • Hooper (Aggregates/Dolomite)
  • White Cliffs (Diatomaceous Earth)
  • Operating Plants
  • Ash Meadows.
  • Deming
  • White Cliffs (Diatomaceous Earth)
  • Winston
  • Technology
  • Cementation (Oil Rigs)
  • Mercury Capture (Coal Fired Plants)
  • Zeox Minerals Materials Corp.
  • St. Cloud Mining

ZEOX CORPORATION
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The New Zeox
  • Dominant Zeolite producer with platform for
    growth.
  • Lowest cost producer.
  • Provides a broader product offering for both
    companies.
  • Variety of zeolite qualities/properties
  • Chabazite
  • Dolomite
  • Reclamation Construction
  • Diatomaceous Earth
  • Aggregates
  • Increases geographic reach
  • Capitalize on Zeoxs Intellectual Properties
    Research Base
  • Allows shareholders of both companies to
    participate in the upside potential of a growth
    company.

ZEOX CORPORATION
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The New Zeox
Multiple Uses, Products, Brands
IMAGIN ZEOX
Agric. Feed Agric. Feed
Water Filtration Water Filtration
Soil Amendment Spec. Chemical
Odor Control Cement
Air Filtration

ZEOX CORPORATION
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The New Zeox
Complementary Attributes
IMAGIN ZEOX
Management Reserves/Deposits
Dedicated Sales Staff Technical Knowledge
Mining Knowledge Public Entity
Mining Equipment
Diversified Revenue Base

ZEOX CORPORATION
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5. Industry
ZEOX CORPORATION
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Industry
  • Natural zeolites are hydrated aluminosilicates.
  • There are over 40 natural zeolite minerals with
    similar structures and molecular makeup, all with
    its own particular attributes.
  • Commercial zeolite deposits in the U.S. are
    located in Arizona, California, Idaho, New
    Mexico, Oregon, Texas and Wyoming.
  • Zeolite is used commercially because of its
  • Unique absorption
  • Ion exchange
  • Molecular sieve
  • Catalytic properties
  • The major end markets for zeolite are
  • Animal feed
  • Horticultural applications
  • Waste water and air filtration

ZEOX CORPORATION
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Industry
Global Zeolite Production In Tons
  • Countries producing large tonnages often use
    them in low-value applications.
  • Ready availability of zeolite and shortage of
    competing minerals are factors for large scale
    use.

ZEOX CORPORATION
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Industry
Domestic Zeolite Production
In Tons
Source Imagin Minerals
  • Majority of production is for high value add
    products.
  • U.S. is leader in developing new
    applications.

ZEOX CORPORATION
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Industry
  • There are only a few producers of zeolite in
    North America of any size.
  • As the market leader, and low cost producer, the
    New Zeox has competitive advantages over other
    zeolite producers
  • UAMY Owns Bear Creek which is situated on a
    mountain top and its operation is limited by
    winter weather. Additionally, Bear Creeks
    management does not rely on distributors.
  • Zeotech Poor quality reserve with high clay
    content with market limited to commodity products
    such as cat litter. Material for its water
    filtration customers is purchased from St. Cloud.
  • St. Clouds and Zeoxs zeolite deposits are the
    highest quality in North America and offers a
    variety of different characteristics (e.g. high
    low sodium). This product suite will ensure that
    our material is part of any new product testing.
  • New products and/or applications using zeolite
    include, cement, radiation treatment, mine waste
    water, air filtration, rubber compounds for
    tires, and various other applications.
  • While the current market for US zeolite is 60,000
    tons, this is expected to grow exponentially.

ZEOX CORPORATION
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Industry
MinAd Dolomite Production
In Tons
Source Imagin Minerals
  • Dolomite is used in dairy cow feed to meet
    magnesium requirements
  • Market is dominated by MinAd ( 80,000 tons/
    10MM Revenues)
  • St. Cloud recently commenced production of
    Dolomite
  • St. Cloud has a substantial freight advantage
    in the Texas Pan Handle.

ZEOX CORPORATION
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Industry
  • Mercury removal of coal fired plants is served by
    several large activated carbons companies all of
    which are testing AZI
  • ADA
  • BASF
  • Norit
  • Calgon Carbon
  • Market is estimated to be 400 million. Due to
    emerging environmental regulations, this market
    is expected to continue to grow.
  • Out of the 1,000 US plants, 250 have the suitable
    Electro Static Percepitation (ESP) system and
    saleable fly ash characteristics that will
    benefit from AZI.
  • A 250 megawatt plant will need 1 million pounds
    per year for each boiler. Many plants have
    several boilers.
  • AZI can replace Activated Carbon in totality or
    be blended to increase mercury capture from 90
    to over 95 without impacting the fly ash.

ZEOX CORPORATION
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Industry
  • Cement
  • Carbon footprint of increasing concern to
    producers. Pozzolans will be a factor in reducing
    emissions.
  • Down Hole Muds
  • Prevents premature hardening of the cement
  • Allows drill companies to use less
    expensive/lower grade cement
  • Improve performance at deep depths.
  • Increased use of horizontal drilling requires
    greater amounts.
  • Zeoxs Down Hole Mud (Zeofume) utilizes Bowies
    Upper Bed Chabazite
  • Sells between 500-600/ton.
  • New Hires have given us an ability to participate
    in other companies research.

ZEOX CORPORATION
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Industry
  • Animal Antibiotic US Congress is currently
    discussing limiting the treatment of animals with
    antibiotics as a normal supplement. If
    regulations are limited, ranchers will consider
    zeolite as a normal supplement to help animal
    health and improve weight gain.
  • Drinking Water An estimated 125 US
    municipalities have arsenic levels above
    requirements. The treatment plants are either
    ignoring the requirement or blending other
    potable water to reduce arsenic levels. Zeolite
    is proven filtration floculant to remove arsenic.
  • Concrete - Zeolite has pozzolanic qualities that
    improve concrete. This is being tested by several
    commercial and residential concrete companies.
  • Construction/Reclamation There are numerous
    Abandoned Mine Land (AMLs), particularly in
    the Southwestern states, that have mine water
    problems. The sites are either bonded by the
    mining company or have been taken over by the
    government. St. Cloud has the mining and
    construction experience to build and monitor
    simple treatment systems (e.g. settling ponds) at
    a cost of a fraction of a cent per gallon,
    providing substantial annuity revenue and income.

ZEOX CORPORATION
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Industry
                   
  2-3 YEAR GROWTH                
  SUMMARY       AVG.        
      TONS   PRICE     TOTAL  
                   
  Markets    
     
  Cattle Feed 10,000 125 1,250,000  
  Other Animals 30,000 125 3,750,000  
  Cement 30,000 500 15,000,000  
  Concrete 35,000 105 3,675,000  
  Filtration 15,000 160 2,400,000  
  Mercury Removal 15,000 600 9,000,000  
  Dolomite 30,000 150 4,500,000  
  TOTAL 39,575,000  
                   
  • Management Sees Substantial Organic Growth
    Opportunity
  • Applications
  • Reserves
  • Minerals

ZEOX CORPORATION
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Industry
  • Management is constantly reviewing acquisition
    opportunities.
  • The North American market is characterized by
    large strategic operators and numerous
    privately-owned niche industrial mineral
    companies that
  • Older ownership with no succession plan.
  • Defined business niche with long time customer
    base
  • Barriers to entry
  • Acquisitions Under Consideration
  • 5MM revenue mineral company with 1.3MM of
    EBITDA. Complementary product offering,
    synergistic location. Cash transaction with earn
    out provision.
  • 4MM ore property with 400K EBITDA. Customer
    base is cement oriented and could provide cross
    sell opportunities. Stock transaction.

ZEOX CORPORATION
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6. Management
ZEOX CORPORATION
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Executive Summary
  • Mr. Garold (Gerry) Spindler
  • Wealth Of Operating Experience
  • Previous CEO of Large Public Companies
  • Pittson Coal
  • Cyprus Amax Coal
  • UK Coal
  • St. Cloud
  • Extensive Mining International Experience
  • Ability to Lead and Build
  • Mr. Michael Shea
  • 25 Year Corporate Finance Experience
  • Bank of America, Citigroup, GE Capital
  • Investor Interface
  • Mergers Acquisitions
  • Restructuring

ZEOX CORPORATION
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7. Transaction Overview
ZEOX CORPORATION
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Transaction Overview
  • Market Reaction was favorable to change of
    management (8/24/09)
  • Current Share Price Includes Acquisition
    Potential
  • Share Price holding despite sell side pressure
    from Hogg Logician
  • Market waiting for details of the contemplated
    Merger

ZEOX CORPORATION
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8. Contact Information
ZEOX CORPORATION
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Business Overview
  • Garold Gerry Spindler
  • CEO
  • (203) 761-1291
  • gspindler_at_zeoxcorp.com
  • Michael Shea
  • CFO
  • (203) 210-5614
  • mshea_at_zeoxcorp.com

ZEOX CORPORATION
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