8/27/2008

1. PEF has achieved successful operation of the MC system using powdered MoS2/CoS catalyst provided from a local Denver source and then promoted with a formulation proprietary to PEF, having been developed by PEF Chief Scientist, Steve Harford.

2. Proprietary exothermic heat control techniques developed by PEF show operation exceeding anticipated results. Several additional techniques to further enhance performance have been identified and are being implemented and operational the week of September 8th.

3. Optimum operating conditions for Syngas flow rate, temperature and pressure have been established to provide stable MC start-up and steady-state operation.

4. A CO conversion rate of 23% has been experienced with optimum alcohol yield for a single pass operation. Next target goal is 30% conversion planned for being on-line the week of September 8th.

5. Several volumes of mixed alcohols have been analyzed with 80-% of the collected sample being C1 thru C3 alcohol species with an almost 2:1 ratio of ethanol to methanol and methanol at less than 30% total volume. The bulk of the 20+% remaining volume have been identified as a combination of C4 and higher alcohols and oxygenates with less than 10% of the overall total volume being water.

8/15/2008

Power Ecalene Fuels is pleased to announce the successful operation of the data gathering unit at Eltron Research & Development. The unit has been brought up to pressure and temperature and has been making alcohol. Further operation is slated to continue for the next several weeks changing operating parameters to gather data and further increase efficiency.

7/9/2008

The following is the current status and anticipated schedule for the Eltron demonstration as of July 7, 2008:

Plumbing 99% complete, will be completed this week with the reciept of a few fittings. Electrical, instrument, and control connections hook-up planned for this week. System leak testing planned for this week. Flow pressure, and heating test planned for this week. Prestart-up safety review early the week of 7/14. Testing of system with intert powder week of 7/14. Initial operation with reactant catalyst and reactant gas 7/18-7/23.

6/23/2008

The unit has arrived at Eltron Research & Development and is being unloaded. It is anticipated that the unit will be installed and assembeled over the next week. Operator safety and training are expected to take an additional 10 working days from the completion of the installation. The commisioning of the unit is expected to take place on July 14, 2008.

6/20/2008

The mock-up and fabrication has been complete for the skid unit to be delivered to Eltron Research & Development. The unit will be diassembled and packed on a truck scheduled for delivery 6/22/2008.

6/4/2008

Do to the late arrival of some critical parts for the skid unit, to be delivered to Eltron Research and Development, fabrication and delivery timelines have been pushed back 2-4 weeks. The skid unit is now scheduled to be delivered the week of June the 23rd with anticipated start up on July 7th. The entity fabricating the unit are prepared to work overtime to meet this new timeline. "Unfortunately vendors of some crucial parts were not able to perform on their delivery dates and the timeline had to be adjusted accordingly. PEF and its partners are anxiously anticipating the units' completion and delivery. However, it appears that we will have to wait a little longer than we would have liked." said Gene Jackson Chairman/CEO of PEF.

5/12/2008

Power Ecalene Fuels, Inc. has begun to manufacture and suspend the catalyst needed for Eltron Research & Development. PEF anticipates the catalyst will be married to the molecular converter in the coming weeks and be converting CO and H into Ecalene™by the first part of June 2008.

4/10/2008

Component parts such as tubing, gauges, valves, and catalyst have started to arrive from vendors for the Boulder, CO project with Eltron Research & Development. All components are being assembled accordingly in Oklahoma on a portable skid for delivery to Eltron in the coming weeks. Anticipated construction is still scheduled to be completed by the end of May 2008. It is anticipated that enough Ecalene™will be produced to conduct performance testing and live demonstrations with small motors. "It is a very exciting time as we begin to take the necessary steps to commercialize the technology and promote Ecalene™as a clean green alternative to fossil fuels and fermented ethanol." said Gene Jackson, Chairman/CEO of Power Ecalene Fuels, Inc.

3/17/2008

Power Ecalene Fuels, Inc. has finalized the scope of work, completed the final design review, and has completed the final hazard review for the Boulder, CO project to take place at Eltron Research & Development. Anticipated long lead items are being ordered and the time line is still intact for the process construction to be completed by the end of May 2008.