Market Overview

Sylvan Source (SSI) Announces Successful Pilot Test With California Utility, Employing Clean In Place (CIP)

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SSI announces a successful pilot test has been concluded with Southern
California Edison (SCE) in which SSI's patent-pending CIP mechanism was
deployed enabling SSI's CoreTM water treatment system to
operate continuously, treating cooling tower blowdown effluent directly
without requiring any pretreatment systems or chemicals.

Distillate with high purity was produced from the SSI Core: specific
conductance was 2.9 microS/cm (corresponding to a calculated TDS of 1.9
ppm); and all analyzed metals were below detection limits.

An independent benchmark conducted for SSI and SCE concluded that the
operating cost for a commercially deployed SSI Core + CIP water
treatment system would be less than ½ the OpEx of SCE's current system
for treating their cooling tower blowdown water.

Currently, SCE treats cooling tower blowdown with a high efficiency
reverse osmosis (HERO) system which requires four pretreatment systems,
including a precipitator/clarifier, filtration system, weak acid cation
(WAC) softener and a decarbonator, and pretreatment chemicals which are
added prior to each pretreatment system.

Laura Demmons, SSI Chairman and CEO, stated that "SCE has again
demonstrated leadership by pushing to see what is possible in reducing
costs and complexity, reducing chemical use, improving operational
efficiencies and improving clean water recovery. We are very fortunate
to have had SCE's support for this pilot test!"

SSI will conduct additional pilot tests for other water treatment
applications before the end of 2018.

About Sylvan Source®

Sylvan Source, Inc. develops novel industrial and municipal water
treatment and thermal energy capture, transfer, release and storage
systems. The company's technology platforms are applicable to a broad
range of industrial processing and thermal energy management
applications, as well as markets with complicated or challenging water
treatment opportunities. SSI's technologies incorporate fundamental cost
structure advantages with significant energy and process efficiency
gains. SSI is headquartered in San Carlos, California and is privately
held.

For all industrial waste stream applications benchmarked to date, SSI's
cost structure has been independently validated at approximately:

-50% lower CapEx than all conventional membrane or thermal technologies
-50%
lower OpEx than all conventional membrane or thermal technologies

Several emerging technologies have also been benchmarked against SSI,
and they have been found not to be competitive. SSI's claims are always
derived from the work of third-party experts, consultants and
organizations as a result of comprehensive benchmarking.

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