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<p style="margin: 0"></p>

<!-- Field: Rule-Page --><div style="margin-top: 12pt; margin-bottom: 3pt; width: 100%"><div style="border-top: Black 2pt solid; border-bottom: Black 1pt solid; font-size: 1pt">&#160;</div></div><!-- Field: /Rule-Page -->

<p style="margin: 0">&#160;</p>

<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 14pt"><b>U.S.
SECURITIES AND EXCHANGE COMMISSION</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 12pt"><b>Washington,
D.C. 20549</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 18pt"><b>FORM
<span><span id="xdx_90B_edei--DocumentType_c20220101__20220630_zShstBsK1tr7"><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" name="dei:DocumentType">10-Q</ix:nonNumeric></span></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center">(Mark One)</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 12pt"><span id="xdx_90F_edei--DocumentQuarterlyReport_c20220101__20220630_z4E07W2pSCR6"><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" format="ixt:booleantrue" name="dei:DocumentQuarterlyReport">&#9746;</ix:nonNumeric></span>
</span><span style="font-family: Times New Roman, Times, Serif; font-size: 12pt">Quarterly Report under Section 13 or 15(d) of the Securities
Exchange Act of 1934</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><b>For the quarterly period ended
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center">or</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 12pt"><span id="xdx_90D_edei--DocumentTransitionReport_c20220101__20220630_zNP0F3Yrt3ti"><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" format="ixt:booleanfalse" name="dei:DocumentTransitionReport">&#9744;</ix:nonNumeric></span>
</span><span style="font-family: Times New Roman, Times, Serif; font-size: 12pt">Transition Report under Section 13 or 15(d) of the Exchange
Act</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center">For the Transition Period from
________to __________</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center">Commission File Number: <span><span id="xdx_903_edei--EntityFileNumber_c20220101__20220630_zjsuR1HlDNRa"><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" name="dei:EntityFileNumber">000-55818</ix:nonNumeric></span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 24pt"><b><span id="xdx_904_edei--EntityRegistrantName_c20220101__20220630_z3vSEJVYyjz5"><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" name="dei:EntityRegistrantName">BioCrude Technologies USA, Inc.</ix:nonNumeric></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: center"><i>(Exact Name of Registrant as
Specified in its Charter)</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;&#160;</p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="border-bottom: Black 1pt solid; width: 51%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_90C_edei--EntityIncorporationStateCountryCode_c20220101__20220630_zODjfxurZRm1"><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" format="ixt-sec:stateprovnameen" name="dei:EntityIncorporationStateCountryCode">Nevada</ix:nonNumeric></span></b></span></td>
<td style="width: 1%; padding-bottom: 1pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="border-bottom: Black 1pt solid; width: 48%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_900_edei--EntityTaxIdentificationNumber_c20220101__20220630_zsEKcSiZzGP1"><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" name="dei:EntityTaxIdentificationNumber">81-2924160</ix:nonNumeric></span></b></span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>(State of incorporation)</i></span></td>
<td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>(I.R.S. Employer Identification
No.)</i></span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.4pt; text-align: center"><span><b><span id="xdx_90F_edei--EntityAddressAddressLine1_c20220101__20220630_z3Gkvy4ZKxq5"><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" name="dei:EntityAddressAddressLine1">1255 Phillips Square</ix:nonNumeric></span></b></span><b>, <span><span id="xdx_905_edei--EntityAddressAddressLine2_c20220101__20220630_zsQpDsLXMmPg"><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" name="dei:EntityAddressAddressLine2">Suite 605</ix:nonNumeric></span></span></b>&#160;</p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.4pt; text-align: center"><i>(Address of principal executive offices)</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.4pt; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b><span id="xdx_901_edei--CityAreaCode_c20220101__20220630_zGLBQCo7mFy5"><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" name="dei:CityAreaCode">514</ix:nonNumeric></span></b><b>-<span><span id="xdx_90B_edei--LocalPhoneNumber_c20220101__20220630_zEO1KouXu4Zd"><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" name="dei:LocalPhoneNumber">840-9719</ix:nonNumeric></span></span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><i>(Registrant&#8217;s telephone number including
area code)</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Securities registered pursuant to Section 12(b) of the Act:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="width: 34%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title of Class</span></td>
<td style="width: 1%; padding-bottom: 1pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="width: 32%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Trading Symbol</span></td>
<td style="width: 1%; padding-bottom: 1pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="width: 32%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name of each exchange
on which registered</span></td></tr>
<tr style="background-color: #CCEEFF">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Indicate by check mark whether the issuer (1) filed
all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the past 12 months (or such shorter period
that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Yes&#160;<span style="font-family: Segoe UI Symbol,sans-serif">&#9744; </span><span><span id="xdx_907_edei--EntityCurrentReportingStatus_c20220101__20220630_zOd3pOwKldMe"><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" name="dei:EntityCurrentReportingStatus">No</ix:nonNumeric></span></span>&#160;<span style="font-family: Segoe UI Symbol,sans-serif">&#9746; <span id="xdx_909_edei--EntityInteractiveDataCurrent_c20220101__20220630_zIa6ce3tLria" style="display: none"><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" name="dei:EntityInteractiveDataCurrent">No</ix:nonNumeric></span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Indicate by check mark whether the registrant is
a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of &#8220;large
accelerated filer&#8221;, &#8220;an accelerated filer&#8221; and &#8220;smaller reporting company&#8221; in Rule 12b-2 of the Exchange
Act.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;&#160;</p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="width: 40%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Large Accelerated
Filer</span></td>
<td style="width: 10%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</span></td>
<td style="width: 40%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accelerated Filer</span></td>
<td style="width: 10%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</span></td></tr>
<tr>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_909_edei--EntityFilerCategory_c20220101__20220630_zKt3sOn2Fek6"><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" format="ixt-sec:entityfilercategoryen" name="dei:EntityFilerCategory">Non-Accelerated Filer</ix:nonNumeric></span></span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Smaller Reporting Company</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90B_edei--EntitySmallBusiness_c20220101__20220630_z4CEFA0acHP3"><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" format="ixt:booleantrue" name="dei:EntitySmallBusiness">&#9746;</ix:nonNumeric></span></span></td></tr>
<tr>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Emerging Growth Company</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90D_edei--EntityEmergingGrowthCompany_c20220101__20220630_zQ6Z7j2McZQ7"><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" format="ixt:booleanfalse" name="dei:EntityEmergingGrowthCompany">&#9744;</ix:nonNumeric></span></span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act. <span style="font-family: Segoe UI Symbol,sans-serif">&#9744;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Indicate by check mark whether the registrant is
a shell company (as defined in Rule 12b-2 of the Exchange Act).</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">Yes&#160;<span style="font-family: Segoe UI Symbol,sans-serif">&#9744;
</span><span><span id="xdx_903_edei--EntityShellCompany_c20220101__20220630_z5uoZ01cnrvk"><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" format="ixt:booleanfalse" name="dei:EntityShellCompany">No</ix:nonNumeric></span></span>&#160;<span style="font-family: Segoe UI Symbol,sans-serif">&#9746;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">As of June 30, 2022, the issuer had <span><span id="xdx_907_edei--EntityCommonStockSharesOutstanding_iI_c20220630_zqXkTK3fVlw8"><ix:nonFraction name="dei:EntityCommonStockSharesOutstanding" contextRef="AsOf2022-06-30" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">50,722,886</ix:nonFraction></span>
</span>shares of common stock issued and outstanding.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<!-- Field: Page; Sequence: 1 -->
    <div style="border-bottom: Black 2pt solid; margin-top: 6pt; margin-bottom: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <div style="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>TABLE
OF CONTENTS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="padding-bottom: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="border-bottom: black 1pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Page</span></td></tr>
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td colspan="3" style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>PART I &#8211;
FINANCIAL INFORMATION</b></span></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 10%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Item 1.</span></td>
<td style="width: 80%"><a href="#b_001"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Financial Statements-
Unaudited</span></a></td>
<td style="width: 10%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1</span></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Item 2.</span></td>
<td><a href="#b_002"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management&#8217;s Discussion and Analysis
of Financial Condition and Results of Operation</span></a></td>
<td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">9</span></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Item 3.</span></td>
<td><a href="#b_003"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Quantitative and Qualitative Disclosures
about Market Risk</span></a></td>
<td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">40</span></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Item 4.</span></td>
<td><a href="#b_004"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Controls and Procedures</span></a></td>
<td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">40</span></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td colspan="3" style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>PART II &#8211;
OTHER INFORMATION</b></span></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Item 1.</span></td>
<td><a href="#b_005"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Legal Proceedings</span></a></td>
<td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">41</span></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Item 1A.</span></td>
<td><a href="#b_006"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risk Factors</span></a></td>
<td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">41</span></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Item 2.</span></td>
<td><a href="#b_007"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unregistered Sales of Equity Securities
and Use of Proceeds</span></a></td>
<td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">41</span></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Item 3.</span></td>
<td><a href="#b_008"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Defaults Upon Senior Securities</span></a></td>
<td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">41</span></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Item 4.</span></td>
<td><a href="#b_009"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Submission of Matters to a Vote of Security
Holders</span></a></td>
<td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">41</span></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Item 5.</span></td>
<td><a href="#b_010"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other Information</span></a></td>
<td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">41</span></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Item 6.</span></td>
<td><a href="#b_011"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibits</span></a></td>
<td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">41</span></td></tr>
</table>


<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b><span style="text-decoration: underline">PART I &#8211; FINANCIAL INFORMATION</span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><span id="b_001"></span><span style="text-decoration: underline">ITEM 1</span>. FINANCIAL STATEMENTS</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>BIOCRUDE TECHNOLOGIES USA, INC.</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>CONSOLIDATED BALANCE SHEETS</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(EXPRESSED IN US DOLLARS)</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(UNAUDITED)</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>&#160;</b></p>

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    <td style="font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_490_20220630" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_495_20211231" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
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    <td style="text-align: center">&#160;</td><td>&#160;</td>
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    <td style="text-indent: -10pt; padding-left: 10pt">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -10pt; padding-left: 10pt">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
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  <tr id="xdx_40F_eus-gaap--AccountsPayableAndAccruedLiabilitiesCurrent_i02I_maCzOG5_zGcibiTLut2i" style="vertical-align: bottom; background-color: White">
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    <td style="text-indent: -10pt; padding-left: 10pt">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
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  <tr id="xdx_402_eus-gaap--StockholdersEquityAbstract_iB_zWA28GHX1VI4" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_407_eus-gaap--CommonStockValue_i01I_maCzrY4_zN6boHluWwni" style="vertical-align: bottom; background-color: White">
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<p style="margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">The accompanying notes are
an integral part of these consolidated financial statements. &#160;</p>



<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>BIOCRUDE TECHNOLOGIES USA, INC.</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>FOR THE THREE &amp; SIX MONTHS ENDED JUNE 30, 2022
AND 2021</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(EXPRESSED IN US DOLLARS)</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(UNAUDITED)</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>&#160;</b></p>

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  </table>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>&#160;&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">See accompanying notes to unaudited
interim consolidated financial statements</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 36pt">&#160;</p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>BIOCRUDE TECHNOLOGIES USA,
INC.</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>CONSOLIDATED STATEMENTS OF
CHANGES IN STOCKHOLDERS&#8217; DEFICIT</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>(EXPRESSED IN US DOLLARS)</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>(UNAUDITED)</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>&#160;</b></p>

<table cellpadding="0" cellspacing="0" id="xdx_30C_114_zKDabGT2IjFk" summary="xdx: Statement - CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS&apos; DEFICIT (UNAUDITED)" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
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<tr style="vertical-align: bottom">
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  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -10pt; padding-left: 10pt">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40B_eus-gaap--StockIssuedDuringPeriodValueIssuedForServices_zSrVVnGs7pS7" style="vertical-align: bottom; background-color: White">
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    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0285">&#8212;</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0286">&#8212;</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0287">&#8212;</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0288">&#8212;</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0289">&#8212;</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0290">&#8212;</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0291">&#8212;</span></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">The accompanying notes to unaudited
interim consolidated financial statements</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<!-- Field: Page; Sequence: 5; Value: 1 -->
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>BIOCRUDE TECHNOLOGIES USA, INC.</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>CONSOLIDATED STATEMENTS OF CASH FLOWS</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>FOR THE THREE &amp; SIX MONTHS ENDED JUNE 30, 2022
AND 2021</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(EXPRESSED IN US DOLLARS)</b>&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<table cellpadding="0" cellspacing="0" id="xdx_30F_112_zjUfIT2XcZok" summary="xdx: Statement - CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom; background-color: White">
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    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">See accompanying notes to unaudited interim consolidated
financial statements</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<!-- Field: Page; Sequence: 6; Value: 1 -->
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>&#160;&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>BIOCRUDE TECHNOLOGIES USA, INC.</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>(UNAUDITED)</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<ix:nonNumeric contextRef="From2022-01-01to2022-06-30" escape="true" name="us-gaap:OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock"><p id="xdx_80F_eus-gaap--OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock_zJER07qGCAs" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span><b><span style="text-decoration: underline">NOTE 1</span></b></span><b> <span>&#8211;
<span id="xdx_822_zP6ccIGbr9I3">ORGANIZATION AND BASIS OF PRESENTATION</span></span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span><b><i>Nature of Operations</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>Biocrude Technologies
USA, Inc. (the &#8220;Company&#8221;) was incorporated under the laws of the State of Nevada on December 29, 2015. The Company&#8217;s
principal business objective is to provide resource management expertise and services, catering to commercial, municipal, and industrial
customers, primarily in the areas of solid waste management and recycling services.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span><b><i>Interim Financial Statements</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>The unaudited
interim consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting
principles (&#8220;GAAP&#8221;) for interim financial information and the rules and regulations of the Securities and Exchange Commission
(&#8220;SEC&#8221;). They do not include all information and footnotes required by GAAP for complete financial statements. Except as
disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year
ended December 31, 2021 included in the Company&#8217;s 2021 annual report on Form 10-K, filed with the SEC. The unaudited interim consolidated
financial statements should be read in conjunction with those financial statements included in Form 10-K. In the opinion of management,
all adjustments considered necessary for fair presentation, consisting solely of normal recurring adjustments, have been made. Operating
results for the six-month period ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year
ending December 31, 2022.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span><b>Going Concern</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>The Company&#8217;s
consolidated financial statements are prepared on a going concern basis in accordance with United States generally accepted accounting
principles (&#8220;US GAAP&#8221;) which contemplate the realization of assets and discharge of liabilities and commitments in the normal
course of business. The Company has not generated operating revenues to date and has accumulated losses of $<span id="xdx_90E_eus-gaap--RetainedEarningsAccumulatedDeficit_iNI_pp0p0_di_c20220630_zgrOmNyzAGj5" title="Accumulated losses"><ix:nonFraction name="us-gaap:RetainedEarningsAccumulatedDeficit" contextRef="AsOf2022-06-30" format="ixt:numdotdecimal" decimals="0" scale="0" sign="-" unitRef="USD">8,843,955</ix:nonFraction></span>
</span><span>since inception. The Company has funded its operations through the issuance of capital stock,
convertible debt, loans, and advances from related parties. Management plans to raise additional funds through equity and/or debt financings.&#160;There
is no certainty that further funding will be available as needed. These factors raise substantial doubt about the ability of the Company
to continue operating as a going concern. The Company&#8217;s ability to continue its operations as a going concern, realize the carrying
value of its assets, and discharge its liabilities in the normal course of business is dependent upon its ability to raise new capital
sufficient to fund its commitments and ongoing losses, and ultimately on generating profitable operations.</span></p>

<ix:exclude><p id="xdx_230_z3JRUszTOBHi" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<ix:exclude><!-- Field: Page; Sequence: 7; Value: 1 -->
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    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" escape="true" name="us-gaap:SignificantAccountingPoliciesTextBlock"><p id="xdx_80C_eus-gaap--SignificantAccountingPoliciesTextBlock_zznUt8LpTP74" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span><b>NOTE 2 &#8211;
<span id="xdx_822_zh724RpSwELe">SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<ix:nonNumeric contextRef="From2022-01-01to2022-06-30" escape="true" name="us-gaap:BasisOfAccountingPolicyPolicyTextBlock"><p id="xdx_84E_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_z9SDh2LqVQf2" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span><b><span style="text-decoration: underline"><span id="xdx_86E_zbmgRGYrGVoc">Basis of
presentation and Principles of Consolidation</span></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>These consolidated
financial statements and related notes are presented in accordance with US GAAP and are presented in United States dollars.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>The accompanying
consolidated financial statements include the accounts of its <span id="xdx_900_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20220630__srt--OwnershipAxis__custom--BiocrudeHKMember_zt9DEt7qXVe5" title="Noncontrolling Interest, Ownership Percentage by Parent"><ix:nonFraction name="us-gaap:MinorityInterestOwnershipPercentageByParent" contextRef="AsOf2022-06-30_custom_BiocrudeHKMember" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">100</ix:nonFraction></span>% owned subsidiary, Biocrude Technologies (Hong Kong) Limited (&#8220;Biocrude
HK&#8221;). All significant inter-company transactions and balances have been eliminated upon consolidation.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" escape="true" name="us-gaap:UseOfEstimates"><p id="xdx_847_eus-gaap--UseOfEstimates_zznjL32GMjoi" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span><b><span style="text-decoration: underline"><span id="xdx_862_zJpwfF1QY3p2">Use of
Estimates</span></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>The preparation
of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Significant areas requiring management&#8217;s
estimates and assumptions include determining the fair value of transactions involving shares common stock.&#160;Actual results could
differ from those estimates.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" escape="true" name="us-gaap:FairValueMeasurementPolicyPolicyTextBlock"><p id="xdx_842_eus-gaap--FairValueMeasurementPolicyPolicyTextBlock_zuhhE0iJAqak" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span><b><span style="text-decoration: underline"><span id="xdx_866_zAm6Un2afsFa">Fair Value Measurements</span></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>The Company adopted
the provisions of ASC Topic 820, &#8220;Fair Value Measurements and Disclosures&#8221;, which defines fair value as used in numerous
accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>The estimated
fair value of certain financial instruments, including cash and cash equivalents, payables to related parties, and accounts payable and
accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these
instruments.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>ASC 820 defines
fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal
or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.
ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use
of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that be used to measure fair value:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>Level 1 - quoted
prices in active markets for identical assets or</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>Level 2 - quoted
prices for similar assets and liabilities in active markets or inputs that are observable</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>Level 3 - inputs
that are unobservable (for example cash flow modeling inputs based on assumptions)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>The Company&#8217;s
financial assets and liabilities are subsequent measured at amortized cost, but their carrying amount approximates their fair value due
to the short period of time until maturity.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" escape="true" name="us-gaap:ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock"><p id="xdx_844_eus-gaap--ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock_zLnIlWvXpFRa" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span><b><span style="text-decoration: underline"><span id="xdx_86E_z7OQwNUrAGre">Foreign
Currency Translation and Transaction</span></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>The Company&#8217;s
presentation currency is the U.S dollar. The functional currency of Biocrude USA and Biocrude HK is U.S dollar and Hong Kong dollar,
respectively. Assets and liabilities of the foreign operations are translated to the U.S dollar using the exchange rate at period end,
and income, expenses and cash flow items are translated using the rate approximates the exchange rates at the dates of the transactions
(i.e., the average rate for the period). All resulting exchange differences recognized directly in other comprehensive income (loss).</span></p>

<ix:exclude><p id="xdx_237_zHj8aaLeBqo4" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<ix:exclude><!-- Field: Page; Sequence: 8; Value: 1 -->
    <div id="xdx_23F_zbz40coXIRL6" style="border-bottom: Black 2pt solid; margin-top: 6pt; margin-bottom: 6pt"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></p></div>
    <div id="xdx_230_zaF5aabwuplg" style="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><p style="margin: 0pt">&#160;</p></div>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>Transactions
in currencies other than the entity&#8217;s functional currency are recorded at the rates of exchange prevailing at the dates of the
transactions. At each statement of financial position date, monetary assets and liabilities are translated using the period end foreign
exchange rate. Non-monetary assets and liabilities are translated using the historical rate on the date of the transaction. Non-monetary
assets and liabilities that are stated at fair value are translated using the historical rate on the date that the fair value was determined.
All gains and losses on translation of these foreign currency transactions are included in profit or loss.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" escape="true" name="us-gaap:CashAndCashEquivalentsPolicyTextBlock"><p id="xdx_845_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zmwMzwQIw078" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span><b><span style="text-decoration: underline"><span id="xdx_86E_zsPTPk8fJSdd">Cash and
cash equivalents</span></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>Cash and cash
equivalents consist of cash balances and highly liquid instruments with an original maturity of three months or less. As at June 30,
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

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plant and equipment</span></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>Property, plant,
and equipment are recorded at cost and depreciated to its estimated residual values using the straight-line method over its estimated
useful lives of <span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20220630_z3GU5gthSjh2" title="Estimated useful lives"><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" format="ixt-sec:duryear" name="us-gaap:PropertyPlantAndEquipmentUsefulLife">8</ix:nonNumeric></span> years.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" escape="true" name="us-gaap:CompensationRelatedCostsPolicyTextBlock"><p id="xdx_84C_eus-gaap--CompensationRelatedCostsPolicyTextBlock_zg2Y5gLYcZH9" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span><b><span style="text-decoration: underline"><span id="xdx_864_z7hnEPrNX34j">Share-based
Expense</span></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>ASC 718, &#8220;<i>Compensation
&#8211; Stock Compensation</i>&#8221;, prescribes accounting and reporting standards for all share-based payment transactions in which
employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other
equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including
grants of employee stock options, are recognized as compensation expense in the financial statements based on their fair values. That
expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the
requisite service period (usually the vesting period).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>The Company accounts
for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, &#8220;<i>Equity
&#8211; Based Payments to Non-Employees.&#8221;</i> Measurement of share-based payment transactions with non-employees is based on the
fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair
value of the share-based payment transaction is determined at the earlier of performance commitment date or performance completion date.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" escape="true" name="us-gaap:IncomeTaxPolicyTextBlock"><p id="xdx_841_eus-gaap--IncomeTaxPolicyTextBlock_zy43EiXWIxM" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span><b><span style="text-decoration: underline"><span id="xdx_863_zhlRwPy5PP11">Income
Taxes</span></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>Deferred tax
assets and liabilities are measured using enacted tax rates expected to apply to taxable income for the years in which those differences
are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in
income statement in the period that includes the date of enactment. Additionally, ASC 740: Income Taxes, requires the Company to recognize
in its financial statements the impact of a tax position that is more likely than not to be sustained upon examination based on the technical
merits of the position.</span></p>

<ix:exclude><p id="xdx_231_zaETcb5wjSed" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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    <div id="xdx_230_zaFPTJ8imXW8" style="border-bottom: Black 2pt solid; margin-top: 6pt; margin-bottom: 6pt"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></p></div>
    <div id="xdx_239_zmMI2lAXsp6j" style="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><p style="margin: 0pt">&#160;</p></div>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" escape="true" name="us-gaap:LessorLeasesPolicyTextBlock"><p id="xdx_844_eus-gaap--LessorLeasesPolicyTextBlock_zRyQuBTJTQl" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span><b><span style="text-decoration: underline"><span id="xdx_863_zF6s5sFElflh">Leases</span></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>Effectively January
1, 2018, the Company adopted ASC Leases which requires a lessee to recognize the assets and liabilities that arise from leases, including
operating leases. Under the new requirements, a lessee will recognize in the balance sheet a liability to make lease payments (the lease
liability) and the right-of-use asset representing the right to the underlying asset for the lease term. For leases with a term of twelve
months or less, the lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities by
class of underlying assets. The Company did not enter into any significant operating leases for the six months period ended June 30,
2022 and did not have any significant leases as at December 31, 2021. Adoption of this standard does not have material impact on the
Company&#8217;s interim consolidated financial statements.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" escape="true" name="us-gaap:EarningsPerSharePolicyTextBlock"><p id="xdx_840_eus-gaap--EarningsPerSharePolicyTextBlock_zN8m9WKbqsQ" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span><b><span style="text-decoration: underline"><span id="xdx_860_z2mpXux3MDo5">Earnings
Per Share Information</span></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>FASB ASC 260,
&#8220;Earnings Per Share&#8221; provides for calculation of &#8220;basic&#8221; and &#8220;diluted&#8221; earnings per share. Basic
earnings per share includes no dilution and is computed by dividing net loss available to common shareholders by the weighted average
common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in
the earnings of an entity similar to fully diluted earnings per share. Basic and diluted loss per share were the same, at the reporting
dates, as there were no common stock equivalents outstanding.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

</ix:nonNumeric></ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" escape="true" name="us-gaap:DebtDisclosureTextBlock"><p id="xdx_806_eus-gaap--DebtDisclosureTextBlock_zIIgOkdQ9A2l" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span><b>NOTE 3 &#8211;
<span id="xdx_82A_zhvXudj1mPk4">CONVERTIBLE NOTES</span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>As at June 30,
2022, there are <span id="xdx_908_eus-gaap--ConvertibleDebt_iI_pp0p0_do_c20220630_zFMTJCng70y6" title="Convertible loans"><ix:nonFraction name="us-gaap:ConvertibleDebt" contextRef="AsOf2022-06-30" format="ixt-sec:numwordsen" decimals="0" scale="0" unitRef="USD">no</ix:nonFraction></span> outstanding convertible loans.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" escape="true" name="cik1690384:LoansPayableTextBlock"><p id="xdx_80E_ecustom--LoansPayableTextBlock_zgKij2w8ge1f" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span><b>NOTE 4 &#8211;
<span id="xdx_821_ziwN2BSTuA0c">LOANS PAYABLE</span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>As at June 30,
2022, the Company has loans payable of $<span id="xdx_906_eus-gaap--LoansPayable_c20220630_pp0p0" title="Loans Payable"><ix:nonFraction name="us-gaap:LoansPayable" contextRef="AsOf2022-06-30" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">121,976</ix:nonFraction></span> (December 31, 2021 &#8211; $<span id="xdx_906_eus-gaap--LoansPayable_c20211231_pp0p0" title="Loans Payable"><ix:nonFraction name="us-gaap:LoansPayable" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">110,026</ix:nonFraction></span>) in principal and accrued interest of $<span id="xdx_90C_eus-gaap--InterestPayableCurrent_c20220630_pp0p0" title="Interest Payable, Current"><ix:nonFraction name="us-gaap:InterestPayableCurrent" contextRef="AsOf2022-06-30" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">30,808</ix:nonFraction></span> (December
31, 2021 - $<span id="xdx_90B_eus-gaap--InterestPayableCurrent_c20211231_pp0p0" title="Interest Payable, Current"><ix:nonFraction name="us-gaap:InterestPayableCurrent" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">29,814</ix:nonFraction></span>) outstanding. These loans bear an average interest rate of <span id="xdx_901_eus-gaap--DebtInstrumentInterestRateDuringPeriod_dp_c20220101__20220630__us-gaap--DebtInstrumentAxis__custom--LoanPayableMember_zJenYlW8535" title="Interest rate"><ix:nonFraction name="us-gaap:DebtInstrumentInterestRateDuringPeriod" contextRef="From2022-01-012022-06-30_custom_LoanPayableMember" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">4</ix:nonFraction></span>%, are unsecured and have extended maturities until <span id="xdx_90F_eus-gaap--DebtInstrumentMaturityDate_dd_c20220101__20220630__us-gaap--DebtInstrumentAxis__custom--LoanPayableMember_z18gzv4r3ecg" title="Maturity date"><ix:nonNumeric contextRef="From2022-01-012022-06-30_custom_LoanPayableMember" format="ixt:datemonthdayyearen" name="us-gaap:DebtInstrumentMaturityDate">December
31, 2022</ix:nonNumeric></span>. Included in the balance of loans payable as at June 30, 2022, $<span id="xdx_90A_eus-gaap--LoansPayable_c20220630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--DirectorMember_pp0p0" title="Loans Payable"><ix:nonFraction name="us-gaap:LoansPayable" contextRef="AsOf2022-06-30_srt_DirectorMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">15,000</ix:nonFraction></span> (December 31, 2021 - $<span id="xdx_909_eus-gaap--LoansPayable_c20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--DirectorMember_pp0p0" title="Loans Payable"><ix:nonFraction name="us-gaap:LoansPayable" contextRef="AsOf2021-12-31_srt_DirectorMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">25,336</ix:nonFraction></span>) was due to a director of
the Company.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" escape="true" name="us-gaap:RelatedPartyTransactionsDisclosureTextBlock"><p id="xdx_80C_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zRLfMkKOcYT9" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span><b>NOTE 5 -&#160;<span id="xdx_822_zpVAOaYYsU0a">RELATED
PARTY TRANSACTIONS</span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>As at June 30,
2022, the &#8220;CEO&#8221; of the Company and a director had advanced the Company a cumulative $<span id="xdx_90A_eus-gaap--ProceedsFromRelatedPartyDebt_c20220101__20220630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--ChiefExecutiveOfficerMember_pp0p0" title="Advances from related parties"><ix:nonFraction name="us-gaap:ProceedsFromRelatedPartyDebt" contextRef="From2022-01-012022-06-30_srt_ChiefExecutiveOfficerMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">25,400</ix:nonFraction></span> (December 31, 2021 - $<span id="xdx_90E_eus-gaap--ProceedsFromRelatedPartyDebt_c20210101__20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--ChiefExecutiveOfficerMember_pp0p0" title="Advances from related parties"><ix:nonFraction name="us-gaap:ProceedsFromRelatedPartyDebt" contextRef="From2021-01-012021-12-31_srt_ChiefExecutiveOfficerMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">41,664</ix:nonFraction></span>)
net of repayments for the payment of the Company&#8217;s operating expenses. These amounts are unsecured, without interest and payable
on demand and are included in accounts payable and accrued liabilities &#8211; related parties. </span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" escape="true" name="us-gaap:StockholdersEquityNoteDisclosureTextBlock"><p id="xdx_808_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_zeV2CylNUI57" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span><b><span style="text-decoration: underline">NOTE 6</span></b></span><b> <span>&#8211;
<span id="xdx_823_zdMHmBRmDna8">SHARE CAPITAL</span></span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>The Company is
authorized to issue up to <span id="xdx_906_eus-gaap--CommonStockSharesAuthorized_iI_c20220630_zYI7aawDgirl" title="Common stock, authorized"><span id="xdx_90C_eus-gaap--CommonStockSharesAuthorized_iI_c20211231_zKHLEw9FbfJj" title="Common stock, authorized"><ix:nonFraction name="us-gaap:CommonStockSharesAuthorized" contextRef="AsOf2022-06-30" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesAuthorized" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">75,000,000</ix:nonFraction></ix:nonFraction></span></span> shares of common stock at par value $<span id="xdx_90B_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20220630_zt0nfaNLoBl" title="Common stock, par value"><span id="xdx_905_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20211231_zaV4kzLHSun6" title="Common stock, par value"><ix:nonFraction name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="AsOf2022-06-30" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares"><ix:nonFraction name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">0.001</ix:nonFraction></ix:nonFraction></span></span> per share. As at June 30, 2022, the Company had <span id="xdx_90C_eus-gaap--CommonStockSharesIssued_iI_c20220630_zmdK4K6ivNI7" title="Common stock, issued"><span id="xdx_90F_eus-gaap--CommonStockSharesOutstanding_iI_c20220630_zBRH4Tu1aDW9" title="Common stock, outstanding"><ix:nonFraction name="us-gaap:CommonStockSharesIssued" contextRef="AsOf2022-06-30" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesOutstanding" contextRef="AsOf2022-06-30" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">50,722,886</ix:nonFraction></ix:nonFraction></span></span>
(December 31, 2021 - <span id="xdx_902_eus-gaap--CommonStockSharesIssued_iI_c20211231_zek4EQzwUBz4" title="Common stock, issued"><span id="xdx_907_eus-gaap--CommonStockSharesOutstanding_iI_c20211231_zM6ffagFRxd7" title="Common stock, outstanding"><ix:nonFraction name="us-gaap:CommonStockSharesIssued" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesOutstanding" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">50,710,386</ix:nonFraction></ix:nonFraction></span></span>) shares of common stock issued and outstanding, respectively.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-06-30" escape="true" name="us-gaap:SubsequentEventsTextBlock"><p id="xdx_80B_eus-gaap--SubsequentEventsTextBlock_zQzVHzcKFgA" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span><b><span style="text-decoration: underline">NOTE 7
</span></b></span><b><span>&#8211;&#160;<span id="xdx_829_z81zshPrxxc2">SUBSEQUENT EVENTS</span></span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>There are no
subsequent events.</span></p>

</ix:nonNumeric><p id="xdx_81B_zp1bUJ2qHtL2" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>&#160;</span></p>

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<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><span id="b_002"></span><span style="text-decoration: underline">ITEM 2.</span> MANAGEMENT&#8217;S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Forward-Looking Statements</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">This Form 10-Q includes &#8220;forward-looking statements&#8221;
within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. All statements, other than statements of historical facts, included or incorporated by reference in this Form 10-Q which
address activities, events or developments which the Company expects or anticipates will or may occur in the future, including such things
as future capital expenditures (including the amount and nature thereof); finding suitable merger or acquisition candidates; expansion
and growth of the Company&#8217;s business and operations; and other such matters are forward-looking statements. These statements are
based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current
conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. However, whether
actual results or developments will conform with the Company&#8217;s expectations and predictions is subject to a number of risks and
uncertainties, including general economic, market and business conditions; the business opportunities (or lack thereof) that may be presented
to and pursued by the Company; changes in laws or regulation; and other factors, most of which are beyond the control of the Company.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">These forward-looking statements can be identified
by the use of predictive, future-tense or forward-looking terminology, such as &#8220;believes,&#8221; &#8220;anticipates,&#8221; &#8220;expects,&#8221;
&#8220;estimates,&#8221; &#8220;plans,&#8221; &#8220;may,&#8221; &#8220;will,&#8221; or similar terms. These statements appear in a number
of places in this Filing and include statements regarding the intent, belief or current expectations of the Company, and its directors
or its officers with respect to, among other things: (i) trends affecting the Company&#8217;s financial condition or results of operations
for its limited history; (ii) the Company&#8217;s business and growth strategies; and, (iii) the Company&#8217;s financing plans. Investors
are cautioned that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties,
and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.
Such factors that could adversely affect actual results and performance include, but are not limited to, the Company&#8217;s limited
operating history, potential fluctuations in quarterly operating results and expenses, government regulation, technological change and
competition.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Consequently, all of the forward-looking statements
made in this Form 10-Q are qualified by these cautionary statements and there can be no assurance that the actual results or developments
anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequence to or effects
on the Company or its business or operations. The Company assumes no obligations to update any such forward-looking statements.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>General Business Development</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company was formed on August 4, 2015 in the State
of Nevada, under the name of &#8220;BioCrude Technologies, Inc. On November 8, 2016, the Company received its &#8220;Certificate of Amendment
to Articles of Incorporation&#8221; pursuant to NRS 78.385 and 78.390 to its request for a name change from &#8220;BioCrude Technologies,
Inc.&#8221; to &#8220;BioCrude Technologies USA, Inc.&#8221;, whilst doing business as &#8220;BioCrude Technologies, Inc.&#8221;, as
well. All of the afore-stated have been filed with SEC as part of the Company&#8217;s S-1(/A) registration statement(s).</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>Business Strategy</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is a resource management expertise and
services provider, catering to commercial, municipal, and industrial customers, primarily in the areas of solid waste management and
recycling services.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">BioCrude Technologies USA, Inc. has developed efficient,
cost-effective, and environmentally friendly products, processes and systems for the reformation of waste material, waste management
and creation of renewable energy.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The versatility and potential of the BioCrude Technologies
USA, Inc. has been demonstrated by the many uses that our R&amp;D department has already tested and verified. The avenues they have explored
include sustainable and cost-efficient methods that will enlarge composting and biomethanation yields and rates of decomposition while
increasing output and providing a higher quality of end product. Their focus is on waste treatment protocols for Municipal Solid Waste
(&#8220;MSW&#8221;), cellulose, all organic waste and all manure types; renewable energy sources such as biogas, ethanol and biodiesel;
waste water treatment, and multiple other applications.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">One very important area that BioCrude Technologies
USA, Inc. excels in is the reformation of MSW into renewable energy and marketable end-by-products, using its intrinsic intellectual
property and know how in its &#8220;Integrated Municipal Solid Waste to Energy Proposed Complexes&#8221; for municipal applications.
Understanding the non-homogenous nature and characteristics of the waste, we can define distinct processes to optimally handle the procurement
of the varied categories of waste (MSW can be classified into organics, fuels, recyclables, inerts and others), once segregated with
an efficient separation process and materials recovery facility (&#8220;MRF&#8221;). There is no intellectual property protection as
of yet. BioCrude will be filing for certain Intellectual property and know how protection via a patent for &#8220;Integrated Municipal
Solid Waste to Energy Systems&#8221;. In addition to patent applications, the Company will apply for trademark protection where appropriate.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The long-term vision of the organization is to be
a world leader in the management of solid waste. Our business model will be to transform solid waste streams into renewable energy resources
and marketable by-products. Conventionally, people, entities, etc.&#8230;, view solid waste streams as not only worthless refuse requiring
monetary resources in order to get rid of. BioCrude, on the contrary, views this so-called refuse &#8220;as a valuable commodity&#8221;,
with a negative product cost, i.e., PRODUCT COST is ZERO, with an implicit REVENUE received PER UNIT OF WASTE given for disposal (people,
governments will pay entities/companies in order to get rid of the undesired waste, in the form of a &#8220;Tipping&#8221; or &#8220;Gate&#8221;
fee. <b>Global competition for limited resources is, the Company believes, creating significant business opportunities <span style="text-decoration: underline">for companies
</span>that can sustain and extract value in the form of renewable energy and other marketable by-products, i.e., fertilizer, raw materials
(primary feedstock for building materials), etc.&#8230;, from resources previously considered an irretrievable waste stream.</b> BioCrude&#8217;s
business strategy has been firmly tied to creating a sustainable resource management model and the Company continues to be rooted in
these same tenets today. Each day the Company strives to create long-term value for all stakeholders: customers, employees, communities,
and shareholders, by helping customers and communities manage their resources in a sustainable and financially sound manner.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company intends to achieve successful market
penetration, with distinction, in numerous segments of the industry, generating escalating positive cash flows on an annual basis so
that the Company becomes a competitive leading participant in the industry. Management will look to have its Integrated Municipal Solid
Waste to Energy Complexes widely implemented across Africa, Asia, the Balkans and North America with a view to expanding to other international
markets (Latin America), while continuing to pursue Concession Agreements under private license/joint ventures and other conventional
arrangements.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Municipal Solid Waste Management is the collection,
transport, processing (waste treatment), recycling or disposal of waste materials, usually ones produced by human activity, in an effort
to reduce their effect on human health or local aesthetics or amenity.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Municipal Solid Waste Management (&#8220;MSWM&#8221;)
is a major responsibility for local government. It is a complex task which requires appropriate organizational capacity and cooperation
between numerous stakeholders in the private and public sectors.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The first goal of MSWM is to protect the health of
the population, particularly that of low-income groups. Other goals include promotion of environmental quality and sustainability, support
of economic productivity and employment generation.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Waste-to-energy (&#8220;<b>W2E</b>&#8221;) or energy-from-waste
(&#8220;<b>EfW</b>&#8221;) is the process of creating energy in the form of electricity or heat from the incineration of waste source.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Conventional Municipal Solid Waste Management employs
one or more of the following processes:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Waste prevention, including
    reuse of products</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Recycling, including composting</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Combustion with energy
    recovery</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Disposal through land-filling</span></td></tr>
  </table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-size: 10pt"><img src="image_001.jpg" alt="" style="height: 177pt; width: 304.5pt" /></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">Landfilling is one
of the most common ways of municipal solid waste disposal in developing countries.&#160;Air pollutants emitted from landfills contributes
to the emission in the atmosphere of greenhouse gases and cause&#160;serious problems to human health.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">Methane emissions from
landfills are a serious environmental global concern, as it accounts for approximately 15% of current greenhouse gas emissions.&#160;Landfilling
is a significant contributor to greenhouse gas emissions (GHG) accountable for approximately 5% of total GHG releases which consists
of methane from anaerobic decomposition of solid waste and carbon dioxide from wastewater decomposition.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The past 20 years has
seen a change in how we look at our environment. There has been a greater understanding of the economic, social and environmental risks
of not managing waste.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The main drivers of
the W2E market are environmental factors, regulations and legislation and economic factors.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-indent: -18pt"><span style="font-size: 10pt"><b>&#160;<span style="text-decoration: underline">Environmental
Factors</span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-indent: -18pt"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The Stern report, published
in 2006,&#160;created an authoritative and eye-opening scientific report on the challenges of climate change. The report highlighted
the need to decarbonize the power sector by 60% and reduce CO<sub>2</sub> emissions by 80% of current levels to ensure increases in&#160;global
temperature do not exceed two degrees Celsius.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-indent: -18pt"><span style="font-size: 10pt"><b><span style="text-decoration: underline">Regulations
and Legislation</span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-indent: -18pt"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">Scientific evidence,
public awareness and increased levels of participation in environmental campaigning have led to governments&#8217; worldwide implementing
regulations and legislation. Examples include:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">EU Landfill Diversion Directive</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">recycling targets</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">climate change regulations</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 35.7pt; text-align: justify; text-indent: -17.85pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline">Nota
Bene</span>: It is only in the last two decades that governments worldwide have been working together to come to a consensus of standardized,
environmentally friendly waste management directives, in order to become recognized and implemented practices.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<b><span style="text-decoration: underline">Economics</span></b></span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Economic
drivers to developing the waste and renewable energy sector have included:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">waste disposal and landfill
    gate fees/landfill tax</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">penalties/avoidance schemes
    (e.g., landfill allowance schemes and fines, carbon trading)</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">energy prices</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-size: 10pt">&#160;&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-indent: -18pt"><span style="font-size: 10pt"><b><span style="text-decoration: underline">Waste
to Energy Market Size and Trend</span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-indent: -18pt"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>Renewable Energy:
</b>According to the most recent data available from the International Energy Agency, global waste to energy power production from municipal
and industrial wastes increased from 283 terawatt hours to 383 terawatt hours, a 35% increase over that period. In-depth analyses of
the global market, forecasts the market will increase from approximately $27 billion in 2018 to $450 billion by 2030.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-size: 10pt"><img src="image_002.jpg" alt="" style="height: 132.75pt; width: 205.5pt" /></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>MSW Management (Tipping/Gate
fees): </b>As long as there are people in our world, there will be waste generation. Depending on the demographics of people clusters
(nations), the amount of waste generated on a per capita (person) basis can vary from 0.6 kg (persons in destitute third world countries
(e.g., Niamey [Niger], Juba [South Sudan], Freetown [Sierra Leone], Port-au-Prince [Haiti])) to 1.8 kg (advanced societies with flourishing
economies (e.g., New York City [US], Toronto [Canada], Paris [France], Dubai [UAE]) per person per day. With an approximate current world
population (census 2020) of 7.8 billion persons, there is a minimum quantum (weighted average) of about 6,000,000 tons of waste generated
on a per day basis. Depending on the national budget for the level of waste management treatment implemented by a certain nation, analyses
of the global market, forecasts the market will increase from approximately $45 billion in 2020 to $60 billion by 2030.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><span style="text-decoration: underline">Nota Bene</span>:
The Market potential for Waste Management is not only &#8220;HUGE&#8221;, but at its infancy stage, ready to &#8220;EXPLODE&#8221;, with
few credible corporations, capable of servicing same!</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>&#160;</b>&#160;</span></p>

<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-size: 10pt"><img src="image_003.jpg" alt="" style="height: 123.75pt; width: 194.25pt" /></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-size: 10pt"><b>Source </b>: http://www.waste-management-world.com</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>Competition</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The market for Waste-to-Energy
is dominated manly by Germen, French, American and British companies. Ex.: AE&amp;E Group GmbH, Axpo Kompogas AG, Babcock &amp; Wilcox
Volund A/S, Bedminster International Ltd., BiogenGreenfinch, BTA International GmbH, Community Power Corporation, CNIM, Covanta Holding
Corporation, EcoCorp Inc., Keppel Integrated Engineering Ltd., North American Power Group Ltd., Organic Waste Systems NV, STRABAG Umweltanlagen
GmbH, Veolia Environmental Services, Waste Management Inc., and Wheelabrator Technologies Inc., among others.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><span style="text-decoration: underline">Nota Bene</span></b>:
If you compare the technology of the <b>Competition</b> in <b>juxtaposition</b> to <b>BioCrude&#8217;s (further elaborated upon, hereinunder,
</b>you will be able see why &#8220;<b>BioCrude is the logical choice for the present and the future</b>&#8221;.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-indent: -18pt"><span style="font-size: 10pt"><b><span style="text-decoration: underline">Defining
Waste Management for Municipal Applications</span></b></span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The provision of municipal
solid waste services is a costly and troubling problem for local authorities everywhere. In many cities, service coverage is low, resources
are insufficient, and uncontrolled dumping is widespread, with resulting environmental and health related problems, which are recognized
worldwide, and cannot be neglected! Moreover, substantial inefficiencies are typically observed. Typically, worldwide, governmental waste
management ordinance, surprisingly enough, encompasses inefficient waste collection, landfilling until over exhaustion, and incineration<b>.</b></span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">Out of concern for
the quality of life of their residents, local municipalities bear primary responsibility for waste management. Municipalities will work
with other municipal levels to identify the best collection, transportation, treatment and disposal methods for their respective jurisdictions.
This includes identifying suitable sites for municipal, or regional waste management facilities, and managing and operating collection,
transportation and treatment systems. To increase the environmental and economic efficiency of waste management, local municipalities
will be responsible for planning waste management infrastructure and systems at the urban community and regional county municipality
levels.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>Biocrude, with its
upgraded technologically advanced systems, can improve quality of environment, ergo, life.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">Waste management planning,
as well as the production of renewable energy resources, are vital issues facing any city or municipality today. We are at a time where
all level of governments recognizes the importance and need for waste management. Be it for financial, environmental, or health issues.
Room for improvement exists for the following:</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"></p>

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    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reduction, and eventually,
    the elimination of landfilling, as opposed to over exhausting (substituting proposed landfill sites with other forms of development
    (commercial, industrial, residential, agricultural, and community developments, amongst others &#8211; real estate value).</span></td></tr>
  </table>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: 36pt"></p>

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    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reduction of Greenhouse
    Gases, and environmental pollutants with reference to ground and surface water contamination <b>(percolation of contaminated leachate)
    </b>alongside with the elimination of odors.</span></td></tr>
  </table>
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    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Further enhanced separation
    process for MSW, which could prelude to a more optimal recycling program.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><span style="text-decoration: underline">Nota Bene</span></b>:
Landfilling is NOT a solution (contaminates the land forever, cost of construction, waste creation), but a deferral of a problem for
future generation to handle. In essence, it is what it is; a PRACTICE that has been utilized for the longest period of time! Nothing
more!</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The myth that landfilling
is a cost-effective solution is what it is; a myth. There are long term ramifications, especially when the landfills are not proper &#8220;Scientific
Landfills&#8221; (environmental implications; rainfall, leachate, percolation, contamination (soil and water table). Even the fact that,
if a Scientific Landfill is deployed (with membrane linings) at an astronomical cost (the cost of construction of a Scientific landfill,
which could host approximately 2,000 TPD of waste for 25 years could costs approximately 100 MUSD), after a few earth tremors or shifting
of land, the membrane could crack, or over time, the membrane will deteriorate, thus yielding the same negative environmental impacts,
only deferred in time.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">Another issue to address
is the continual use of landfills. As time goes on, and waste is continuously generated by the populous and its activities, more and
more landfills have to be created, to a point where a good part of the country will become a cemetery for garbage. Municipalities/governments
must plan to integrate their waste management from a strategic and financial perspective.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>BioCrude,
having set as its objective the &#8220;PROFITABILITY&#8221; of the activities inherent within the realms of this sector, whilst building
business relationships and addressing social implications within the collectivity&#8217;s / communities that BioCrude is called upon
to serve, beyond the environmental and social implications, and beyond the business imperatives, has set as one of its priorities, the
optimization of waste management and, treatment thereof, all in conformity to the boundaries of economies, efficiency and adherence to
environmental wellbeing initiatives.</b> BioCrude has been involved in the R&amp;D of Environmental Technologies, both process and product
based, whereby it has enhanced and optimized conventional technology, thus giving credence to environmental, economic, social and technological
well-beings, too numerous to mention (all can be referenced, in its entirety, within BioCrude&#8217;s Integrated MSW-Energy Proposal.
Shortlists of the aforesaid well-beings are summarized herein under:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Secure, cost-effective
    long-term processing capacity for recyclables and organics.</span></td></tr>
  </table>
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    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Improvement of effectiveness
    and efficiency of current waste systems/practices.</span></td></tr>
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    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Elimination of MSW from
    going to landfills.</span></td></tr>
  </table>
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    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Procurement of Renewable
    Energy and Marketable by-products (fertilizer, primary feedstock for building materials, etc.&#8230;) from the exploitation of the
    calorific value inherent within the realms of the MSW</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 54pt; text-align: justify; text-indent: -18pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reduction of Greenhouse
    Gases and other environmental pollutants emitted into the atmosphere.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 54pt; text-align: justify; text-indent: -18pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Municipalities do not have
    to undergo cost of implementation; privatized via BOOT (Build, Own, Operate &amp; Transfer), whereby BioCrude Technologies USA, Inc.
    will be lobbying to get the MSW, Land, Sewage treated Effluent and Resale of Electricity Concessions (with Sovereign Guaranties from
    the Ministry of Finance of the Government in question).</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 54pt; text-align: justify; text-indent: -18pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 54pt; text-align: justify; text-indent: -18pt"></p>

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    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Due to the profitability
    of the proposal, significant savings could be passed onto the Municipalities, to reduce their day to day on going expenses for Municipal
    Waste Management, for the duration of the BOOT (30 years), by approximately 50% per annum, via MSW Tipping (Gate) Fees (favorably
    outbidding the competition and still having better bottom lines than same) and the Transport of the MSW to neighboring cities/provinces
    (states), without forgetting to mention the reduced GHG emissions from the substitution effect of BioCrude&#8217;s Integrated MSW
    to Energy proposal from landfilling and/or incineration. This surplus in savings can be used for other municipal social and infrastructural
    programs.</span></td></tr>
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    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">8.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Employment opportunities
    are created during the EPC (Engineering, Procurement &amp; Construction) phase of the project (a few hundred jobs) and for the day-to-day
    operations of the project (approximately 86 jobs per shift per 2,000 TPD Plant plus 11 persons for administration X 3 shifts per
    day, equating to a total quantum of a minimum of 269 persons).</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 54pt; text-align: justify; text-indent: -18pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.</span></td>
    <td><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
        proposed solution is an integrated MSW management system based on energy recovery that respects the norms of a Clean Design Mechanism
        (&#8220;CDM&#8221;) inherent within the realms of article 12 of the Kyoto Protocol (&#8220;UNFCCC&#8221;) or any future proposed
        legislation regarding same, and qualifies for Carbon Emissions Reduction Credits (&#8220;CER&#8217;s&#8221;).</span></p>
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline">Municipal
Solid Waste</span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">All solid waste generated
in an area except industrial and agricultural wastes, typically from residences, commercial or retail establishments. Sometimes includes
construction and demolition debris and other special wastes that may enter the municipal waste stream. The EPA (1998c) defined municipal
solid waste as &#8220;a subset of solid waste and as durable goods (e.g., appliances, tires, and batteries), non-durable goods (e.g.,
newspapers, books, and magazines), containers and packaging, food wastes, yard trimmings, and miscellaneous organic wastes from residential,
commercial and industrial non-process sources.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The MSW can be classified
in the following categories:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">a)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Organics</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">b)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fuels</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">c)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Recyclables</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">d)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Inerts</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">e)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Miscellaneous</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 71.7pt; text-align: justify; text-indent: -17.85pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 71.7pt; text-align: justify; text-indent: -17.85pt"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
category has its own distinct composite classification. To achieve an optimal Wast</span><span style="font-size: 10pt">e to Energy procurement,
one has to analyze separately the inherent category contributions to energy yield and its correlated technological process of extraction
in obtaining same in the most economical sense available; thus, the importance of segregating the MSW into the appropriate categories
of distinct feedstock is of principal importance for optimal performance in the appropriate technological processes.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">In BioCrude&#8217;s
MSW-Energy initiative, BioCrude Technologies USA, Inc. incorporated the following technologies in the Integrated Municipal Waste Processing
(Waste to Energy) Complex in order to optimize the treatment process in an environmentally friendly manner by whilst optimizing the Revenue
Model of same, and in turn, pass some of the savings back to the municipalities while still earning an impressive bottom line in juxtaposition
to what the competition has to offer with regards to landfilling and incineration:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Separation of Waste Facility
    (Materials Recovery Facility)</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Refuse Derived Fuel (&#8220;RDF&#8221;)
    Plant in order to handle the fuels of the MSW and produce Energy with an ash by-product</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Bio-Methanation Plant in
    order to handle the organic fraction of the MSW (OFMSW) to produce Energy with a fertilizer by-product</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Composting Facility (maximum
    50 TPD) in order to handle a percentage of the OFMSW alongside with the small particles (plastics, ceramics...) that could not be
    efficiently separated within the separation process of the MSW (fuels in the Bio Methanation plant (plug flow digester) inhibit the
    process). The economies are no longer apparent in Composting facilities surpassing the 50 TPD capacities.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Power Plant</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 35.7pt; text-align: justify; text-indent: -17.85pt"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 35.7pt; text-align: justify; text-indent: -17.85pt"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">With BioCrude&#8217;s
Integrated MSW to Energy proposal/initiative, BioCrude attempts to service each category of the MSW in order to optimally utilize all
renewable resources from same to procure renewable energy and marketable by-products (fertilizer, ash, etc.).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">It is very important
to note that the Separation Process of the MSW into the appropriate feedstock categories for each distinct process (organics for biomethanation
(as well as for composting), and polymer based hydro-carbons and cellulose-based products for RDF process) is of the utmost importance.
Failure to do so can lead to complications and inevitable failure of each process in question. Evidence of Success and failure stories
(especially with biomethanation plants, whereby the feedstock generated from MSW (organic fraction) had traces of more than 10% of polymer
based products and/or inerts, thus inhibiting and/or limiting the viability of same) as can be found all over the world, and each outcome,
in essence, can be summarized by Plant Technology Implementation and Feedstock Preparation (do not mix up technology viability with technology
implementation and operation).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><i><span style="text-decoration: underline">Nota Bene</span></i></b>:
With gasification and/or incineration (mass burn), MSW is dumped into the boiler &#8220;as is&#8221; and combusted at temperatures ranging
from 800 &#8211; 12000C (minimum; plasma arc gasification temperatures range from 7,000 &#8211; 10,0000C). All waste is burned yielding
an approximate net yield of energy for reuse (after self-consumption) of 30 &#8211; 40%. The organic fraction of the MSW (OFMSW) is burned,
whereby the fertilizer potential via a biomethanation process (cooking) is substituted for an ash from the gasification/incineration
process (es). Let us not even entertain what happens to the methane potential of same via gasification/incineration in lieu of biomethanation;
LOST! Bottom line, &#8220;<b>Potential Revenues</b>&#8221; lost and operational costs of gasification/incineration processes are increased
dramatically, up to the point where one must substitute more energy (fuel) in order to sustain continuity of operation and/or to substitute
the self-consumption energy requirements of the processes when the varying calorific value of a sample of the waste is deficient for
same. One can do their own sensitivity analysis to evaluate same and come to their own conclusions! BioCrude&#8217;s Integrated MSW-Energy
Solution evolves from first principles of Science, Chemistry, Engineering, Economics and Common Sense!</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The <b>Organics</b>
portion of the MSW is treated via a <b>biomethanation</b> process, whereby all methane gas is extracted for the eventual realization
of renewable energy creation, and a fertilizer procured as an additional by-product, which can be marketed to the agricultural industry.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt">The <b>polymer-based</b> (hydro-carbon chain),
cellulose and textiles portion of the MSW will be treated via an <b>RDF</b> process (a derivative of gasification, but with the incorporation
of a Materials Recovery Facility (MRF) [Separation process], where we have the luxury of operating at lower temperatures (350 &#8211;
400<sup>0</sup>C) because of the separation of the MSW, i.e. lower temperatures reflects less operational self-consumption, hence more
outputs (energy) for resale), whereby the thermal combustion will generate renewable energy and the by-product of ash can be marketed
to the construction industry for the following purposes:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Concrete production, as a substitute material for Portland
cement and sand</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Embankments and other structural fills (usually for road
construction)</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Grout and Flowable fill production</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Waste stabilization and solidification</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cement clinkers production - (as a substitute material
for clay)</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mine reclamation</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Stabilization of soft soils</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Road subbase construction</span></td></tr>
</table>

<p style="margin: 0">&#160;</p>

<p style="margin: 0"></p>

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<p style="margin: 0">&#160;</p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As Aggregate substitute material (e.g. for brick production)</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mineral filler in asphaltic concrete</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Agricultural uses: soil amendment, fertilizer, cattle feeders,
soil stabilization in stock feed yards, and agricultural stakes</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Loose application on rivers to melt ice</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Loose application on roads and parking lots for ice control</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other applications include
cosmetics, toothpaste, kitchen counter tops, floor and ceiling tiles, bowling balls, flotation devices, stucco, utensils, tool handles,
picture frames, auto bodies and boat hulls, cellular concrete, geopolymers, roofing tiles, roofing granules, decking, fireplace mantles,
cinder block, PVC pipe, Structural Insulated Panels, house siding and trim, running tracks, blasting grit, recycled plastic lumber, utility
poles and cross arms, railway sleepers, highway sound barriers, marine pilings, doors, window frames, scaffolding, sign posts, crypts,
columns, railroad ties, vinyl flooring, paving stones, shower stalls, garage doors, park benches,</span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 35.7pt; text-indent: -17.85pt"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 35.7pt; text-indent: -17.85pt"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The fly ash can also
be marketed to the agricultural industry for the following purposes:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">It improves permeability status
of soil</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Improves fertility status of
soil (soil health) / crop yield</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Improves soil texture</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reduces bulk density of soil</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Improves water holding capacity
/ porosity</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Optimizes pH value</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Improves soil aeration and
reduces crust formation</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Provides micro nutrients like
Fe, Zn, Cu, Mo, B, Mn, etc.</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Provides macro nutrients like
K, P, Ca, Mg, S etc.</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Works as a part substitute
of gypsum for reclamation of saline alkali soil and lime for reclamation of acidic soils</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Surface cover of bio reclaimed
vegetated ash pond get stabilized and can be used as recreational park</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ash ponds provides suitable
conditions and essential nutrients for plant growth, helps improve the economic condition of local inhabitants</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Works as a liming agent</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Helps in early maturity of
crop &amp; improves the nutritional quality of food crop</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reduces pest incidence</span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
is a definite market for the fly ash by-</span><span style="font-size: 10pt">product; the industry players in the global market place
have to be clearly identified for the realization of commercialization. BioCrude can even offer this ash by-products pro-bono to the
industry or landfill, for there is no environmental hazard of same.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt">The recyclables can be easily sold to the
recyclable industry milieu (metals, glass, ceramics, etc.)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The balance of the
inerts (Construction and Demolition Debris, gravel, sand, bricks, etc.) can either be landfilled with no negative environmental impacts
or crushed and given to companies specializing in the fabrication of construction materials (if a market is identified, BioCrude can
offer them these by-products (crushed or uncrushed).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><span style="text-decoration: underline">BioCrude&#8217;s
Integrated MSW to Energy Complex for Municipal Applications</span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">BioCrude&#8217;s solution
of an Integrated Municipal Solid Waste to Energy complex is in line with the present trends in the Municipal Solid Waste (&#8220;MSW&#8221;)
industry and the main advantage of same is that it is comprised of a Materials Recovery Facility (&#8220;MRF&#8221;) and different modular
waste treatment processes (Composting, Bio-methanation and Refuse Derived Fuel (&#8220;RDF&#8221;)) and a power station, in order to
treat the MSW and procure renewable energy and other marketable by-products (compost, ash and certain recyclables) with the added implication
of practically zero-landfill policy (less certain inerts which have zero negative environmental impact, if landfilled).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The material components
(modules) of an Integrated Municipal Solid Waste to Energy Complex are detailed as follows:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Entrance to complex</b>:
    Kiosk and weighbridge (reception/departure and weighing of garbage trucks (pre-and-post deposit of MSW at the MSW Storage facility).</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>MSW Storage facility</b>:
    Closed and properly ventilated warehouse facility for receiving and storing just in time (JIT) 3 days&#8217; inventory of MSW. MSW
    is moved from the storage facility and moved via machinery and conveyor belts to the Materials Recovery facility.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Materials Recovery facility
    (MRF)</b>: a properly ventilated facility that houses different types of machinery/equipment (either procured from suppliers or built
    in-situ according to plan specifications) requisite for different facets of the separation process of the MSW into the distinct categories
    of the waste (organics, hydro-carbon polymer based, cellulose, inerts, miscellaneous (batteries, cadavers, etc.&#8230;)) and prepare
    same as the distinct feedstock for the different waste treatment processes (Composting, Biomethanation and Refuse Derived Fuel (RDF)),
    as well as separate the recyclables for resale and the inerts (elements of construction and demolition debris that are not recyclable)
    for landfilling or to be crushed and given/sold (negligible in nature in comparison to the revenue model established by the tipping
    fees, and resale of electricity and compost) to the secondary markets for the manufacturing of building materials.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Composting facility</b>:
    A portion of the land concession will host a type of composting system (Windrow [with procured mechanical mixing machinery (trucks)
    like compost turners or tub/horizontal grinders] or Static Aerated Piles [aeration system such as installed perforated piping to
    ensure steady oxygen supply (forced air) for the microorganisms and to reduce moisture content]), depending on BioCrude&#8217;s evaluation
    of the waste analysis. A fertilizer will be procured, dried and stored in a warehousing facility for by-products.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Biomethanation facility</b>:
    Modular digesters are constructed in series and synchronized in operation in order to receive organics and process same to extract
    and capture the methane gas which will be piped to the Biogas &#8211; RDF power plant (will be combusted for the procurement of renewable
    energy) and in addition, yield a cured fertilizer which will be dried and stored in the warehousing facility for by-products.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>RDF facility</b>: A
    refuse derived fuel system (gasification derivative) will be procured and installed. The RDF facility will receive the hydro-carbon
    polymer and cellulose-based waste products that will be used to make RDF pellets (compressed and dried) that will be used as the
    feedstock for combustion within same to generate renewable energy within the Biogas &#8211; RDF power plant.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>RDF &#8211; Biogas power
    plant</b>: will be procured and installed within a certain section of the Complex with a dedicated Distributed Control System (DCS)
    for the MSW-Energy (RDF &amp; Biogas based) power plant &amp; fuel processing plant (controls &amp; instrumentation for the boiler
    and turbine, instrumentation for the balance of the power plant and control room).</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">8.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Internal roads</b>:
    will be constructed within the complex for vehicle/truck transport/passage within the complex.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Green Belt</b>: will
    be developed for aesthetic purposes and municipal environmental conformities.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-size: 10pt"><img src="image_004.jpg" alt="" style="height: 408.75pt; width: 276.75pt" /></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt"><b>Business Model</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The Company&#8217;s
business model is designed to create a profitable revenue stream through the direct acquisition of Concession Agreements from different
Governments for the implementation of BioCrude&#8217;s integrated MSW-Energy Complexes. Our products, processes, and services, marketed
to the relevant target audience, enable us, to generate multiple revenue streams and consistent profitability derived from the high gross
profit inherent within the realms of our proprietary products, services and applications.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">By acquiring the necessary
Concession (MSW, Land and Supply of Treated Effluent) and Power Purchase Agreements (PPA), from the respective governmental authorities
of a certain country, with Sovereign Guarantees (with right of subrogation), the Company will develop its Integrated Municipal Solid
Waste to Energy Complex, under &#8220;<b>BOOT&#8221;</b> (Build, Own, Operate &amp; Transfer) basis.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt">The following contractual understandings
are the key prerequisite elements for establishing a mutual meeting of the minds, by and between BioCrude Technologies USA, Inc. and
the governmental authorities of a municipality/country, for the successful realization of BioCrude&#8217;s MSW-Energy Complexes:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
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    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>MSW Concession</b> for
    the guaranteed delivery of MSW to the Complex with an implied base tipping fee per ton (&#8220;Put or Pay&#8221;) with annual escalations
    for the term (30 years) of the project with an option of renewal for an additional term (30 years) and Sovereign Guarantees from
    the Minister of Finance endorsing same.</span></td></tr>
  </table>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Land Lease Concession
    </b>for the delivery of the required amount of land for project term (30 years), at an annual symbolic lease rate of $1/amount of
    land delivered/annum, with an option of renewal for an additional term (30 years).</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Supply of Treated Effluent
    Concession </b>whereby the governmental authorities will supply the necessary treated water in order to fulfill the operational requirements
    of the MSW to Energy complex at a negligible symbolic annual rate for the term of the project with an option of renewal for an additional
    term (30 years).</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Power Purchase Agreement
    (PPA)</b> [resale of procured electricity to the Power Corporation of the country in question], whereby the Power Corporation of
    a certain country will buy back the electricity produced by the MSW to Energy Complex at a base rate per kW-hr (&#8220;Take or Pay&#8221;),
    with annual escalations for the term (30 years) of the project with an option of renewal for an additional term (30 years) and Sovereign
    Guarantees from the Minister of Finance endorsing same. </span></td></tr>
  </table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Assistance from the Appropriate
    Governmental Ministries and Municipalities in obtaining all necessary permits and clearances for the Construction and Operation of
    the MSW-Energy Complex (stipulations in contracts).</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><span style="text-decoration: underline">Nota Bene</span></b>:
Depending on country policy on foreign investment, the Company may request or be granted an exemption of taxes, levies, duties, and all
other relevant taxes applicable to the importation of all plant, materials, equipment and rolling stock for the Construction of the MSW-Energy
complex, from the appropriate Ministries, related thereto.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">All the aforesaid Concession
agreements have to be granted at the same time in order for BioCrude to successfully realize the development (Engineering, Procurement
and Construction) and operation of the MSW to Energy complex (the &#8220;Sovereign Guarantees&#8221; and right of subrogation are critical
and paramount for the funding requirements of the MSW to Energy complex).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>Target Market </b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The global Waste to
Energy segment of the waste management industry is the target market BioCrude addresses. Management is confident it will succeed in having
its integrated systems and processes widely implemented across Africa, Asia, the Balkans, the GULF and North America with a view to expanding
to other international markets (Latin America). The Company&#8217;s first step in penetrating its target market has been taken with the
signing of Concession Agreements with the country of the Union of the Comoros (Autonomous Island of Grande Comore); signed January 11,
2016.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>Strategies of the
Company </b></span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">BioCrude&#8217;s strategy
is designed to create a &#8220;PROFITABLE&#8221; revenue stream through the direct acquisition of Concession Agreements from different
Governments, for the implementation of BioCrude&#8217;s integrated MSW-Energy Complexes, or through the establishment of unique and strategic
alliances via licensing arrangements and/or joint ventures within the industry milieu.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">BioCrude has developed
what we believe is a highly effective marketing strategy, built on a proactive direct marketing campaign with Government, large corporate
facility management that target the sector for waste product treatment and reformation. <b>The Company believes that this will result
in a development of a marketing and distribution network with extensive coverage of the Company&#8217;s target market at a minimal expense,
allowing the Company to reach profitability.</b> We believe that our marketing strategy will permit us to generate an extensive customer/end
user base; however, there can be no assurance that our estimate regarding acceptance of our products and services will be correct.</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The Company&#8217;s
long-term strategy is to create economically beneficial uses for waste streams through resource transformation solutions. Since the value
of marketable by-products (commodities; renewable energy, fertilizer, primary feedstock for building materials, etc.&#8230;), after
processing costs, is a significant and absolute amount, in juxtaposition to disposal options (ZERO), such as landfilling or incineration,
the Company believes this strategy is effective long-term. The Company believes that as carbon taxes or cap and trade systems are implemented
and the demand for commodities rises, economics will further favor this strategy. The Company is also focusing on lowering the cost of
resource transformation solutions by reducing its recycling processing operating costs, examining ways to mitigate commodity price fluctuations
(forward contracts for marketable by-products), and developing new processing technologies. These steps will help to build an effective
business model at lower commodity pricing levels.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The Company is focused
on four main areas to improve the performance of base operations and hence, increase cash flow generation. They are Pricing initiatives,
Cost controls and operating efficiencies, Integrated Waste to Energy development initiatives with long term Concession Agreements and,
Asset Management.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">BioCrude has developed
a number of Lobbying (Sales/Solicitation) programs and the standardization of same. We believe that the pricing logic used in our fee
structures, with implied &#8220;<b>Put or Pay</b>&#8221; and &#8220;<b>Take or Pay</b>&#8221; provisions for the supply of feedstock
and resale of outputs (renewable energy), respectively, is not only reasonable, but competitive. We expect to continue to add valued
ameliorations to our structured fee-based pricing of products and services. The goal of our pricing program is to generate price increases
in excess of CPI, whilst being competitive in nature. BioCrude will derive revenues from a combination of commodity sales (Marketable
by-products &#8211; fertilizer and energy resale), carbon credits (CER&#8217;s under the auspices of a &#8220;<b>Clean Development Mechanism</b>&#8221;
(CDM project)) and tipping (gate) and material processing fees. Fluctuations in commodity pricing are managed by a number of risk mitigation
strategies including: financial hedging instruments (transfer of foreign exchange risk), floor prices, forward sales contracts, and index
purchases. The goal is to optimize and stabilize the revenue stream, while still being competitive, net of cost of operations, and generate
consistent positive cash flows.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The Company continues
to search for the best continuous improvement practices and programs as solutions to then implement as part of its corporate governance.
The goals of these practices and programs are to enhance customer service, increase safety for employees, and to reduce operating and
administrative costs. The Company has implemented continuous improvement strategies, and as such, as of date, the Company has introduced
select operating efficiency initiatives in safety, productivity, maintenance, customer service, environmental compliance, and procurement.</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt"><b>Prior Activities of BioCrude Canada</b></span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">Within certain countries,
if an entity wants to pursue certain specialized works, it is recommended that the entity establish a presence within same (establish
a corporation with a civic address). As an example, in 2009, this was done in Romania with the anticipation that BioCrude Canada would
be successful in acquiring the concession agreements from the governmental authorities of Romania. BioCrude was not successful in meeting
its objective in Romania for same and stopped its lobbying works for the pursuit of said engagement by and between the Governmental authorities
of Romania and BioCrude for the implementation of BioCrude&#8217;s proposed MSW to Energy complex in Romania, closed its preliminary
office and the corporation became dormant.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">Since July 2008, BioCrude
Canada has taken the initiative to market and promote its intellectual property and specialized technical expertise throughout the market
place, both nationally and globally (we have introduced our technology to Governments and major Conglomerates in the Waste to Energy
sector) in over 30 Countries worldwide, whereby BioCrude has successfully opened up dialogue with Governmental Authorities and respectable
corporations for near future contractual negotiations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">In December 2007, Jaipuria
Advanced Technologies, Inc. (http://www.jaipuria-group.com and http://www. smvjaipuria.com/waste.php) of India, and BioCrude Canada,
announced their formation of a new division dedicated to Waste Reformation and Energy Procurement for the purpose of pursuing contracts
in India. In many areas of the country, waste management and energy shortages are a serious problem. With Jaipuria&#8217;s construction
and large project experience, and with the use of the intellectual property supplied by BioCrude in terms of waste management and production
of renewable energy, we have, in January, 2008, submitted a bid, in response to a tender for a Waste to Energy plant (2,000 TPD) in Okhla
and Tymarpur, India (we were not the selected candidate) and Indore, India (Collection and Treatment of municipal waste; 600 TPD; we
were not the selected candidate).</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">During this time, we
have also negotiated with &#8220;Pepsi Co India&#8221; to build a 50 TPD prototype in the city of Panipat, India, in a strategic joint
venture alliance. A few months later, Pepsi Co India&#8217;s New President/CEO had a change of corporate venue and put aside the Waste
to Energy initiative. Ever since then, BioCrude Technologies, Inc. (Canada) decided not to pursue any more works in India.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The Company, through
its commercialization efforts, has established good relationships with governments and ministries in more than 70 countries in North
America, Latin America, Asia, Africa and Europe and received a positive reception when presented with its waste to energy solution for
their waste management dilemmas. This produced dozens of Letters of Interest, submitted to BioCrude, by different divisions of Governments
(federal/municipal) from different countries, worldwide.</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 57pt; text-align: justify; text-indent: -57pt"><span style="font-size: 10pt">2009
&#8211; 2021 - <b><span style="text-decoration: underline">Marketing and Commercialization</span></b>: BioCrude presented its waste to energy solution to governments and ministries
from USA, Canada and Mexico in North America, Costa Rica, Panama, Ecuador, Argentina, Peru, Brazil, Dominican Republic, Haiti, Colombia,
Venezuela, Guatemala, Honduras, Jamaica, El Salvador, Cuba, Uruguay, Bahamas and Trinidad &amp; Tobago in Latin America, China, Hong
Kong, Mongolia, Kazakhstan, Vietnam, Indonesia, Philippines, India, Bangladesh, and Pakistan in Asia, Kingdom of Saudi Arabia, United
Arab Emirates, Kuwait, Qatar, Jordan, Oman, and Bahrain in the Middle East, Portugal, Luxembourg, Belgium, Hellenic Republic, Italy,
Malta, Corsica, Albania, Bulgaria, Romania, Serbia, FYROM (Macedonia), Spain, Montenegro, Kosovo, Belarus, Ukraine, Georgia, Latvia,
Armenia, amongst other countries, in Europe, Ivory Coast, Burkina Faso, Ghana, Togo, Senegal, Benin, Angola, Niger, Guinea, Mali, Uganda,
Burundi, Rwanda, Morocco, Tunisia, Algeria, Egypt, Libya, Kenya, Ethiopia, Democratic Republic of the Congo (Kinshasa), Republic of the
Congo (Brazzaville), amongst other countries in Africa.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 57pt; text-align: justify; text-indent: -57pt"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>Pricing initiatives</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">BioCrude has developed
several sales/solicitation programs and the standardization of the sales/solicitation process and standardized the sales/solicitation
process. We believe that the pricing logic used in our fee programs, with implied &#8220;<b>Put or Pay</b>&#8221; and &#8220;<b>Take
or Pay</b>&#8221; provisions for the supply of feedstock and resale of outputs (renewable energy), respectively, is reasonable and competitive.
We expect to continue to add to our fee-based pricing through additional administrative fees, recycling fees, late charges, and further
improvements to our existing fee structures. The goal of our pricing program is to generate price increases more than CPI. BioCrude will
derive revenues from a combination of commodity sales (Marketable by-products &#8211; fertilizer and energy resale), carbon credits (CER&#8217;s
under the &#8220;<b>Clean Development Mechanism</b>&#8221; established pursuant to article 12 of the &#8220;<b>Kyoto Protocol</b>&#8221;
(CDM project)) and tipping fees paid for material processing. Fluctuations in commodity pricing are managed by a number of risk mitigation
strategies including: financial hedging instruments (transfer of foreign exchange risk), Sovereign Guarantees, floor prices, forward
sales contracts, index purchases, and tipping fees. The goal is to smooth revenue, net of cost of products purchased, and generate consistent
cash flows.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>Cost controls and
operating efficiencies</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The Company continues
to search for the best practices throughout the entire organization and then implements these solutions through standardized continuous
improvement programs. The goals of these programs are to enhance customer service, increase safety for employees, and to reduce operating
and administrative costs. The Company has implemented continuous improvement strategies and the introduction of select operating efficiency
initiatives in safety, productivity, maintenance, customer service, environmental compliance, and procurement.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>Integrated Waste
to Energy development initiatives with long term Concession Agreements</b></span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">BioCrude excels is
the reformation of MSW using its intrinsic intellectual property as well as its expertise in Integrated Waste to Energy Processing Complexes.
BioCrude has and will continue to invest time, effort and valuable resources in the pursuit of Governmental Concession (MSW, Land, Supply
of Treated Effluent and Power Purchase Agreements (PPA)) Agreements, for the duration of twenty-five to thirty years, for the implementation
of same. The essence of the Concession Agreements, not only guarantees the MSW and implied tipping fees, related thereto (with annual
indexing), but the resale of the marketable by-products (energy to grid via PPA) for the duration of the term, with Sovereign Guarantees.
Investments in Waste to Energy facilities position the Company well for the evolution of the industry from waste management to resource
management.</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>Company milestones
and plan of execution</b></span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">During the past 10
years, BioCrude has developed a reputation in waste management, a result of R&amp;D of Environmental Technologies (both process and product
based) whereby it has enhanced and optimized conventional technologies, augmented by its fungal technology that increases the rate of
decomposition of organics. This led to the development of efficient, cost-effective, and environmentally friendly products, processes
and systems for the reformation of waste material and the creation of renewable energy and marketable by-products.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">BioCrude&#8217;s MSW
to Energy initiative is, by definition, an &#8220;en suite&#8221; of waste management and energy procurement, whereby the latter is a
marketable byproduct derived from the intrinsic processes of the treatment of the MSW by procuring the necessary constituent feedstock
(primary material) to produce the renewable energy in the modular section for power generation of the Integrated MSW to Energy complex.
In order to realize an integral MSW to Energy complex, as defined in the &#8220;Business Model&#8221; of the registration statement,
all Concession Agreements (guarantee of MSW supply, Land and Supply of Treated Effluent) as well as a Power Purchase Agreement must be
contracted concurrently, for they are &#8220;ALL&#8221; necessary constituent elements for the development of an integrated MSW to Energy
complex i.e., you cannot have some or most of the agreements (Concessions/PPA) in place, but must have &#8220;ALL&#8221; in place, at
the same time, simply because of the nature of the project in question.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">BioCrude&#8217;s revenue
model is based on revenue generation from the following: i) the operation of MSW to Energy complexes (tipping fees, resale of renewable
energy, resale of other marketable by-products (compost, recyclables) and potential carbon credits, ii) Joint Venture license fees, whereby
the prospective Joint Venture partner will buy a license from BioCrude (payment to be effected immediately after signature) for their
participation in the consortium and will infuse its prorated share of equity capital for the potential MSW to Energy complex, and iii)
EPC (&#8220;Engineering, Procurement &amp; Construction) management fees (general contracting fees, approximately 20% of the capital
cost of the project).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">In order to realize
an integrated MSW to Energy complex, as defined in the &#8220;Business Model&#8221;, all Concession Agreements (guarantee of MSW supply,
Land and Supply of Treated Effluent) as well as a Power Purchase Agreement must be contracted concurrently, for they are &#8220;ALL&#8221;
necessary constituent elements for the development of an integrated MSW to Energy complex.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">In order to acquire
the concessions for Biocrude waste management (MSW to Energy), major lobbying must be done in all levels of government and ministries
(e.g., Biocrude&#8217;s waste management project is an environmental project thus requiring the intervention of the Ministry of Environment,
renewable energy is procured, hence requiring the intervention of the Ministry of Energy/Power and Power Corporation (usually crown corporation),
the municipalities usually are responsible for the granting of the MSW, Land and Supply of Treated Effluent Concessions and the Ministry
of Finance is responsible for the signing of the Sovereign Guarantees, and in some instance, countries might have other intervening governmental
agencies).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">BioCrude has positioned
itself, through its continual lobbying efforts (ongoing), for potential Joint Ventures (JV) with certain governments (countries/clients).
Should any of these Joint Ventures prove to be realized because of the persistent lobbying activities, not only will BioCrude be able
to realize the EPC management fee for the development of the MSW to Energy complex(es), but it will also receive its prorate share (50%)
of the revenue stream of the developed MSW to Energy complex(es), with similar time frame frequencies as mentioned above, as well as
a license fee (BioCrude already submitted offers) immediately following signature of the Joint Venture engagement and the Concession
and Power Purchase agreements. BioCrude anticipates, that if the prospective JV partner(s) take the initiative to implement (not only
entertain) a waste management solution for their country, but possible engagement can also be realized within 6 to 12 months following
that initiative (being cognizant of bureaucracy and red tape procedures of government).</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">As part of BioCrude&#8217;s
marketing strategy, BioCrude invests time, effort and resources in order to prepare tailor made prefeasibility studies, presentations
&amp; educational literature for municipalities worldwide, and sends corporate delegations to these places for presentation of same,
at no expense to these governmental institutions. This attribute of BioCrude&#8217;s direct marketing campaign has proven to be very
successful. Governments worldwide were not only receptive, but appreciative of BioCrude&#8217;s formal and professional address. These
efforts have given BioCrude a profound understanding of the challenges faced by governments at all levels in their dealings with waste
management issues.</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">A vote of confidence
has been bestowed to BioCrude by the governmental authorities of the Autonomous Island of Grande Comore on its proposed integrated waste
management solution for the Autonomous Island of Grande Comore through the awarding of the necessary Concession Agreements (delivery
of MSW, Land and Supply of Treated Effluent) for 30 years (with a renewal option of 30 years) with Sovereign Guarantees for the implementation
(design, build, finance and operate) of a 700 TPD Municipal Solid Waste to Energy Complex, in the city of Moroni, Autonomous Island of
Grande Comore, Union of the Comoros. Furthermore, a Power Purchase Agreement has been signed with the &#8220;Le Gestion de l&#8217;Eau
et de l&#8217;&#201;lectricit&#233; aux Comores (MA-MWE)&#8221; whereby same will buy back all procured renewable energy from the
MSW to Energy complex for the term of the Concessions (and renewal option).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">BioCrude, subject to
its contractual engagement with the Government of the Autonomous Island of Grande Comore for the implementation of a 700 TPD MSW to Energy
complex in Moroni, Grande Comore, through the financing provisions of the MSW to Energy project, will earn the EPC management/general
contracting fee of approximately twenty percent (20%) of the capital cost of the MSW to Energy project (prorated over the duration of
the construction period), i.e., commencing within 6 to 8 months from these presences.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><span style="text-decoration: underline">Nota Bene</span></b>:
For the Union of the Comoros, the Company is still awaiting documents from the Federal Governmental Authorities stating that the Federal
Government is the new Intervening Party to the Concession(s) agreements previously signed with the Governorate (province; autonomous
region) of Moroni, after the outcome of the Federal Referendum, whereby through same, contracting and economic powers are transferred
from the Governorate (Province) level to that of Federal level. The Referendum outcome favored the Federal Government over that of the
Governorate (Autonomous) Region of Moroni, i.e., authorizing documents are still pending.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">BioCrude, as well,
is looking at approximately 24 to 26 months (development time frame for the realization of MSW to Energy complex) before it can start
generating absolute, guaranteed revenues from the operation of the MSW to Energy complex(es) (tipping fees/fees from the resale of marketable
by-products (compost, ash, primary feedstock for building materials (inerts), recyclables, etc.&#8230;), resale of renewable energy
and carbon emission reduction credits [CERs]), servicing the waste management needs of the Government of the Union of the Comoros, as
per the provisions and stipulations of the contractual engagements with the government (with implied sovereign guarantees), for a minimum
guaranteed term of 30 years (and an option for an additional 30 years).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">BioCrude is evaluating
additional options for funding (capital markets, financial institutions, contracting companies, pension funds, etc.&#8230;amongst other
financially engineered hybrid scenarios thereof) and has already opened up dialogue regarding same. BioCrude has received a term sheet
for the funding of the MSW to Energy project for the Union of the Comoros, ergo, BioCrude will shortly be able to commence works for
ground breaking and start receiving its (Engineering, Procurement and Construction) EPC management fee as its first projected revenue
stream on a prorate schedule subject to a disbursement schedule in accordance to the terms and stipulations of the expected offer of
funding.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">BioCrude, with confidence,
aims to be a leader in waste management, having set as its objective, the profitability inherent within the realms of the activities
issued of this sector, while building business relationships and social implications within the collectivity&#8217;s/communities that
BioCrude is called upon to serve, beyond the environmental and social implications, and beyond the business imperatives.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">BioCrude has adopted
a directive, as part of its corporate governance, to routinely undertake innovative strategic planning initiatives in order to design
and implement integrated solid waste systems that are responsive to dynamic demographic and industrial growth needs of municipalities.
Strategic planning starts with the formulation of long-term goals based on the local urban needs, followed by a medium and short-term
action plan to meet these goals. The strategy and action plans should identify a clear set of integrated actions, responsible parties
and needed human, physical and financial resources as part of the waste management solution.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">BioCrude has not only
demonstrated its proven ability to open up dialogue and develop relationships with the various divisions of Governments worldwide (Administrative
and Technical) but has also developed confidence in same for potential and eventual engagement. BioCrude&#8217;s Public Relations and
Business Development divisions have demonstrated their lobbying abilities as highly effective, efficient and productive in yielding results
and establishing goodwill for BioCrude.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">At present, the provisioning
for waste treatment and &#8220;<b>green</b>&#8221; reformation of these products into renewable energy sources is regionalized and within
a given geographic region of operations, can be competitive. However, we believe that there are no other entities that provide turnkey
solutions targeted to all types and sizes of users. However, there are waste treatment providers that may elect to enter into this designated
market if our model is successful. We compete on the basis of engineering uniqueness, quality, cost-effectiveness and the increasingly
comprehensive and specialized nature of our services, along with the expertise, technology and professional support we offer. While we
believe that we will have a competitive cutting-edge advantage by being the most specialized in the market, there can be no assurance
that our assumptions regarding our competitive position will be proven correct.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">We will require additional
capital to meet our liquidity needs. Currently, the Company has determined that its anticipated monthly cash flow needs should not exceed
$30,000 per month for twelve months following the filing date of these financial statements.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The Company&#8217;s
projected capital needs and its projected increase in expenses are based upon the Company&#8217;s projected acquisition of Municipal
Solid Waste, Land and Supply of Treated Effluent Concessions and Power Purchase Agreements (&#8220;PPA&#8221;) per facility interests
over the coming twelve months; however, in the event that the full offering proceeds are not raised, the Company would acquire the Municipal
Solid Waste, Land and Supply of Treated Effluent Concessions and PPA per facility at a slower pace and/or focus its energies on the refinement
of existing properties to maximize their productivity. The Company&#8217;s success does not depend on a scheduled acquisition and therefore
it has flexibility to scale back its expenses to meet actual sources of cash.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">We anticipate that
we will receive sufficient proceeds from investors through this offering, to continue operations for at least the next twelve months;
however, there is no assurance that such proceeds will be received and there are no agreements or understandings currently in effect
from any potential investors. It is anticipated that the Company will receive increasing revenues from operations in the coming year;
however, since the Company has a short history of revenues, it is difficult to anticipate what those revenues might be, if any, and therefore,
management has assumed for planning purposes only that it may need to sell common stock, take loans or advances from officers, directors
or shareholders or enter into debt financing agreements in order to meet our cash needs over the coming twelve months. The Issuer has
no agreements or understandings for any of the above-listed financing options.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The Use of Proceeds
section includes a detailed description of the use of proceeds over the differing offering scenarios of 100%, 75%, 50% and 25%. As the
Company&#8217;s expenses are relatively stable, not incorporating elements of severe force majeure, the Company believes it can fund
its present operations with projected revenues together with offering proceeds under any of the offering scenarios. The Company will
consider raising additional funds during 2022 through sales of equity, debt and convertible securities, if it is deemed necessary.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">BioCrude Technologies
USA, Inc. has no intention in investing in short-term or long-term discretionary financial programs of any kind.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The Company&#8217;s
belief is based on its business model, which in turn is based on assumptions, which may prove to be incorrect. As a result, the Company&#8217;s
financial resources may not be sufficient to satisfy its capital requirements for this period, and may need to raise additional funds.
If additional funds are raised through the issuance of equity, equity-related or debt securities, such securities may have rights, preferences
or privileges senior to those of the rights of the common stock and the Company&#8217;s shareholders may experience additional dilution.
Management cannot be certain that additional financing will be available on favorable terms, when required, if at all. If adequate funds
are not available or not available on acceptable terms, the Company may not be able to fund its expansion, promote its brand as desired,
take advantage of unanticipated acquisition opportunities, develop or further enhance and/or optimize its products and services or respond
to competitive pressures.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">In order to commence
implementation of the business plan by executing the first set of acquired Concession agreements (with implied PPA) for the implementation
of a MSW to Energy complex for the Union of the Comoros , approximately $8 million is required (other engineered options of funding a
percentage of the equity in the form of debt for the facility, i.e. contractor funding for EPC and higher debt to equity ratios due to
Sovereign Guarantees, amongst other hybrid, financially engineered funding solutions, can reduce the amount required to raise). To continue
operations for the pursuit of the aforesaid milestones, a minimum of $1 million is required for the carrying capacity of same.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">BioCrude&#8217;s revenue
model is based on revenue generation from the following: i) the operation of the MSW to Energy complexes (tipping fees, resale of renewable
energy, resale of other marketable by-products (compost, recyclables) and potential carbon credits, ii) Joint Venture license fees, whereby
the prospective Joint Venture partner will buy a license from BioCrude (payment to be effected immediately after signature) for their
participation and will infuse its prorated share of equity capital for the potential MSW to Energy complex, and iii) EPC (&#8220;Engineering,
Procurement &amp; Construction) management fees (general contracting fees, approximately 20% of the capital cost of the project). In
essence, these fees have to be paid regardless, and BioCrude management will execute and capture remuneration for same.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">Hereunder is a schedule
of events (agenda) for the realization (full execution) of the MSW to Energy project in Moroni, Autonomous Island of Grande Comore (inclusive:
contract realization process), in order for BioCrude to start realizing revenues as an ongoing concern, not taking into account any prospective
joint ventures in the works.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>Different facets
and schedule of events for the pursuit and realization of MSW to Energy projects (excluding lobbying activities)</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><span style="text-decoration: underline">Contract Conclusion,
Engineering, Procurement&amp; Construction</span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>A. Signature of
the following Accords necessary for the realization of the MSW-Energy Complex in Moroni, Autonomous Island of Grande Comore</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Deed of Assignment Agreement
(&#8220;Protocol of Engagement&#8221;) by and between the Government of the Autonomous Island of Grande Comore and BioCrude Technologies
USA, Inc. Contract was signed January 11, 2016.</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The signing of the Concession
Agreement for the Municipal Solid Waste, Land Lease Agreement and Agreement for the supply of treated Municipal Water on January 11,
2016</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The signing of the Power Purchase
Agreement (PPA) with the &#8220;Le Gestion de l&#8217;Eau et de l&#8217;&#201;lectricit&#233; aux Comores (MA-MWE)&#8221; [ Power
Corporation of the Autonomous Island of Grande Comore] on January 11, 2016</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Opening of a new Comorian Corporation
(in the country in question) totally owned by BioCrude Technologies USA, Inc., opening of bank account and execution of all party obligations
contained in the Deed of Assignment. This was done on January 12, 2016</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reception of letter from new
governmental administration of the Autonomous Island of the Grande Comore (after elections on May 2016) reaffirming their initiative
and will to fully respect and execute the engagements signed on January 11, 2016; August 25, 2016</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Site selection (site Identification
and legal designation (Cadastral, Lot, etc. ...)) for the MSW-Energy Complex, preparation of legal documents to annex same to the Land
Lease Agreement and Assignment of selected parcel of land to BioCrude, as per the stipulations of the Land Concession agreement on November
12, 2016.</span></td></tr>
</table>

<p style="margin: 0">&#160;</p>

<p style="margin: 0"></p>

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<p style="margin: 0">&#160;</p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Incorporating agreed to amendments
and/or modifications to the contractual engagements of January 11, 2016 into the new agreements replacing those of January 11, 2016:
December 9, 2016.</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">8.</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Granting of a Treasury Guarantee
to BioCrude from the governmental administration of the Autonomous Island of the Grande Comore, as per the stipulations of the Concession
and Power Purchase Agreements: December 10, 2016</span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt"><b>(Fully executed; timeline:&#160;</b>it
took approximately 8 months<b>)</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt"><b>B. Organizational Matrix: Construction,
Management, Operations and Maintenance of Project</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Flowchart of management staff</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Organization of the Waste
    Management (Collection, Transportation, Sorting and Treatment)</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Flowchart of Engineering, Procurement and Construction</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Flowchart of Operations Complex and Maintenance</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Flowchart for the influx of feedstock and the out flux
    (distribution) of by-products</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">(<b>Fully executed;
timeline:&#160;</b>The tasks identified above in B are part and parcel of the submitted preliminary proposal, which included the &#8220;<b>Prefeasibility
Study &amp; Detailed Project Report</b>&#8221; and the &#8220;<b>Business Plan (with financial metrics)</b>&#8221;, to the Governmental
Authorities of the Autonomous Island of Grande Comore (September 2015) for the realization of the Concession and Power Purchase Agreements
in accordance to the provisions of the Deed of Assignment pursuant to a Public-Private Partnership (PPP)).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>C. Project implementation
plan for the Integrated Municipal Solid Waste t<span style="font-family: Times New Roman, Times, Serif">o Energy Complex</span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Opening of the office in
    Moroni, Autonomous Island of Grande Comore:&#160;expected completion date September 2023</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Recruitment and training
    of human resources in Moroni, Autonomous Island of Grande Comore (for engineering, management, operation and maintenance):&#160;expected
    completion date September 2023 (preliminary core)</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Recruitment of human resources
    in Canada (for key management positions):&#160;expected completion date September 2023</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Preliminary Engineering:&#160;completed in preliminary
    proposal (generic)</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Analysis of Municipal Solid Waste:&#160;expected completion
    date September 2023</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Study of the site and soil studies:&#160;expected completion
    date October 2023</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Detailed Engineering plans:&#160;expected completion
    date October 2023</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">8.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Detailed plan of the development strategy of the complex:&#160;expected
    completion date October 2023</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Hiring of project manager(s)
    and subcontractors (either through reference or through tender):&#160;expected completion date September 2023</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Recruitment of Material
    and Equipment specialist suppliers, via reputation in the marketplace or tender:&#160;expected completion date October 2023</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(Timeline:&#160;</b>6
to 8 months from time = present)</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>D.
Human Resource List for Project Implementation</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Project management</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Structural Engineers</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Electrical Engineers</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mechanical Engineers</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Environmental Engineers</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Geological Engineers&#160;</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">8.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Designers&#160;</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Architects&#160;</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Planners</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">11.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Buyers</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">12.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Supply Agents</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">13.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cost Controllers</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">14.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Training Coach</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(Timeline:&#160;</b>2
to 4 months from time = present<b>)</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>E.
Development and implementation of the EPC project guide (Engineering, Procurement and Construction)</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Program Implementation Plan (<b>Project Execution Plan</b>&#160;&#8221;<b>PEP</b>&#8221;)&#160;Completed</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Preparation of studies and preliminary engineering
    plans&#160;Completed</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Preparation of studies and detailed engineering design&#160;3
    months following task D</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Planning and timetable for the project (Gantt Chart)&#160;3
    months following task D</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Obtaining permits and governmental
    approvals and clearances for the construction and operation of the complex&#160;2 months following submission of detailed engineering
    plans to the related Governmental Agencies of the Union of the Comoros (timeline provision in agreements and signed off by the Governmental
    Authorities of the Union of the Comoros)</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Construction&#160;10 to
    14 months following the execution of E.5. above incorporating a startup synchronization period of approximately 1 to 2 months</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Operation and Maintenance
    Complex&#160;NA for Development timeline</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>F.
Project Management and Control: Project Implementation Plan (PIP)</b></span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>

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    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A preliminary feasibility study and a detailed report
    of the complex&#160;Completed</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Strategic planning and economic analysis&#160;Completed</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The selection of the field&#160;Completed</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Preliminary engineering&#160;Completed</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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    <td style="width: 72px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Economic analysis and project risks</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 72px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The estimate of the total capital investment as well
    as operating and maintenance costs</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 72px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preliminary assessment of environmental impact
    and permitting requirements</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 72px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The technology research, analysis and conceptualization</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reliability analysis&#160;Completed</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The technology selection, project configuration and
    sizing&#160;Concurrently with task E.3. and its timeline</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The studies and engineering
    plans for the environmental permitting&#160;Concurrently with task E.3. and its timeline</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">8.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Research Techniques&#160;Concurrently with task C and
    its timeline</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The strategy and planning
    for the reduction of emissions of greenhouse gases (GHG)&#160;Concurrently with task C and its timeline</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of the
    Clean Design Mechanism documents for submission to the CDM program (literature and the detailed report for project compliance with
    the standards and requirements established by the UNFCCC)&#160;Concurrently with task C and its timeline</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">11.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Carbon capture and storage&#160;Concurrently
    with task C and its timeline</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">12.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The carbon credit analysis&#160;Concurrently
    with task C and its timeline</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">13.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Energy efficiency&#160;Concurrently
    with task C and its timeline</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">14.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The analysis of the applicable
    regulations&#160;Concurrently with task C and its timeline</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">15.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The economic and financial
    analysis (Business Plan) for the preparation of the application for funding&#160;Completed; we have already opened dialogue with
    an EPC firm for not only engaging same for the EPC works, but also financing same under the proviso of BioCrude subrogating its right
    to the Sovereign Guarantees; waiting for proforma proposal from EPC firm</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">16.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The selection for the companies
    to carry out the civil works, and procure materials and equipment required for the development of the project (initiate works)&#160;Completed;
    we have already opened dialogue with an EPC firm for not only engaging same for the EPC works, but also financing same under the
    proviso of BioCrude subrogating its right to the Sovereign Guarantees; awaiting proforma proposal from EPC firm</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"></p>

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  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">17.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The management and supervision of the project&#160;10
    to 14 months; duration of EPC works</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">18.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The operation and maintenance of the MSW-Energy complex&#160;NA
    for Development timeline</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">19.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The invoice, receipt and payment collection&#160;NA
    for Development timeline</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">20.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Organization of briefings to the public&#160;NA for
    Development timeline</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>G.
Environmental Impacts Analysis</b></span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>The
evaluation process:</b></span></p>

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<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The assessment of critical
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  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Potential erosion, the
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  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</span></td>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The energy used in the complex and cooling of various
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  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.</span></td>
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  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
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  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
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    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The negative environmental impacts and mitigation,
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  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-size: 10pt">10.</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Analysis of existing site and the impact of adverse effects thereon,
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  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-size: 10pt">11.</span></td>
    <td><span style="font-size: 10pt">Effect of development on sensitive regional systems sent by either air or by ground water systems</span></td></tr>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><span style="font-size: 10pt"><b>&#160;&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>(Fully executed;
timeline:</b>&#160;Part and parcel of the submitted preliminary proposal (&#8220;<b>Prefeasibility Study &amp; Detailed Project Report</b>&#8221;
incorporating an &#8220;<b>Environmental Impact Analysis</b>&#8221;) to the Governmental Authorities of the Autonomous Island of Grande
Comore for the realization of the Concession and Power Purchase Agreements in accordance to the provisions of the Deed of Assignment
pursuant to a Public-Private Partnership (PPP); the Environmental Impact Analysis was acceptable to the Governmental Authorities of the
Autonomous Island of Grande Comore, hence no caveats, provisions or stipulations related thereto are within the signed contractual agreements).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt"><b>Planning and Timetable for the Project</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt">The Summary forecast for the following tasks
of the project planning encompasses a timeline of 6 to 8 months:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Analysis of the composition and characteristics of
    municipal solid waste,</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Study and preparation of plans for the preliminary
    engineering,</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
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  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The Summary forecast
for the Construction &amp; synchronization of different modules in the MSW to Energy complex of the project planning encompasses a timeline
of 16 to 18 months (incorporating approximately 4 months for project preparation for groundbreaking ceremony).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt"><b>Material Agreements</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">We have filed (with
SEC as part of the Company&#8217;s S-1(/A) registration statement(s)) our Material Agreements (the Deed of Assignment pursuant to a Public-Private
Partnership (PPP), the Power Purchase Agreement (PPA), and MSW, Land and Supply of Treated Effluent Concession Agreements), with SEC
as part of the Company&#8217;s S-1(/A) registration statement(s), respectively by and between the Governmental Authorities of the Grande
Comore and BioCrude.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">January 2016 &#8211;
<b>Concluded Engagements</b>: signed Deed of Assignment pursuant to a Public-Private Partnership (PPP), MSW, Land and Supply of Treated
Effluent Concession Agreements and a Power Purchase Agreement (PPA), by and between the Government of the Autonomous Island of Grande
Comore and BioCrude Technologies USA, Inc., for the implementation of the first Waste to Energy complex in the m<span style="font-family: Times New Roman, Times, Serif">unicipality
of Moroni, which are as follows:</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="font: 12pt/106% Times New Roman, Times, Serif; width: 24px">&#160;</td>
    <td style="font: 12pt/106% Times New Roman, Times, Serif; width: 24px"><span style="font-size: 10pt; line-height: 106%">&#9658;</span></td>
    <td style="font: 12pt/106% Times New Roman, Times, Serif; text-align: justify"><span style="font-size: 10pt; line-height: 106%"><b>Deed
    of Assignment pursuant to a Public-Private Partnership (PPP):</b> exclusively assigning the rights of waste management treatment
    to BioCrude via the inter-related specific concession vehicles, all defining protocol and mode of engagement as well as rights, interests,
    and obligations of each engaging entity for the term of engagement (30 years) with an option of renewal for an additional term (30
    years). Contract was signed January 11, 2016 and amended on December 9, 2016.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 93pt; text-align: justify; text-indent: 0.5in">&#160;</p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px; line-height: 106%">&#160;</td>
    <td style="width: 24px; line-height: 106%"><span style="font-size: 10pt; line-height: 106%">&#9658;</span></td>
    <td style="text-align: justify; line-height: 106%"><span style="font-size: 10pt; line-height: 106%"><b>MSW Concession* </b>for the
    guaranteed delivery of MSW to the Complex with an implied base tipping fee per ton of MSW (&#8220;<b>Put or Pay</b>&#8221; for the
    minimum MSW guarantee of 700 TPD) with annual escalations for the term (30 years) of the project with an option of renewal for an
    additional term (30 years) and Sovereign Guarantees from the Minister of Finance endorsing same. Contract was signed January 11,
    2016 and amended on December 9, 2016.</span></td></tr>
  <tr style="vertical-align: top">
    <td style="line-height: 106%">&#160;</td>
    <td style="line-height: 106%">&#160;</td>
    <td style="text-align: justify; line-height: 106%">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="line-height: 106%"><span style="font-size: 10pt; line-height: 106%">&#9658;&#160;</span></td>
    <td style="text-align: justify; line-height: 106%"><span style="font-size: 10pt; line-height: 106%"><b>Land Lease Concession</b>
    for the delivery of the required amount of land for project term (30 years), at an annual symbolic lease rate of $1/amount of land
    delivered/annum, with an option of renewal for an additional term (30 years). Contract was signed January 11, 2016, and amended on
    December 9, 2016.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in">&#160;</p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px; line-height: 106%">&#160;</td>
    <td style="width: 24px; line-height: 106%"><span style="font-size: 10pt; line-height: 106%">&#9658;</span></td>
    <td style="text-align: justify; line-height: 106%"><span style="font-size: 10pt; line-height: 106%"><b>Supply of Treated Effluent
    Concession </b>whereby the governmental authorities will supply the necessary treated water to fulfill the operational requirements
    of the MSW to Energy complex at a negligible symbolic annual rate for the term of the project with an option of renewal for an additional
    term (30 years). Contract was signed January 11, 2016, and amended on December 9, 2016.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px; line-height: 106%">&#160;</td>
    <td style="width: 24px; line-height: 106%"><span style="font-size: 10pt; line-height: 106%">&#9658;</span></td>
    <td style="text-align: justify; line-height: 106%"><span style="font-size: 10pt; line-height: 106%"><b>Power Purchase Agreement (PPA)*
    </b>[resale of procured electricity to the Power Corporation of the country in question], whereby the Power Corporation of a certain
    country will buy back the electricity produced by the MSW to Energy Complex at a base rate per kW-hr (&#8220;<b>Take or Pay</b>&#8221;
    for all of the renewable energy procured less the self-consumption needs of the MSW-Energy complex), with annual escalations for
    the term (30 years) of the project with an option of renewal for an additional term (30 years) and Sovereign Guarantees from the
    Minister of Finance endorsing same. Contract was signed January 11, 2016, and amended on December 9, 2016.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*<b>A
Revolving Letter of Credit (RLC)</b>, replenished quarte</span><span style="font-size: 10pt">rly (for the duration of the term of the
contractual engagements) will be issued by the Governmental Authorities of the Autonomous Island of the Grande Comore (a temporary Treasury
bond has been issued to BioCrude on December 10, 2016, which will be replaced by the RLC), as per the provisions and stipulations of
the contractual engagements (submitted to the SEC), as a default payment mechanism guarantee, in the event of nonpayment of the tipping
fees or for the purchase of the renewable energy, which can immediately, after default, be drawn upon, to remedy default. The face value
of the RLC is to cover the tipping fees and resale of electricity payments for a whole year, multiplied by a factor of 1.5.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">* On July 27, 2017,
the Governmental Authorities of the Autonomous Island of the Grande Comore have issued to BioCrude a &#8220;<b>Treasury Bond</b>&#8221;,
with supporting literature (indenture, resolutions, etc.&#8230;; as filed with SEC as part of the Company&#8217;s S-1(/A) registration
statement(s), as well as other in other Form filings) baring a face value of twenty million United States Dollars (20,000,000 USD), in
lieu of a &#8220;Revolving Letter of Credit (RLC)&#8221;, replenished quarterly (for the duration of the term of the contractual engagements),
as per the provisions and stipulations of the contractual engagements (Concessions and Power Purchase Agreements). This Treasury Bond
serves as a default payment mechanism guarantee, in the event of nonpayment of the Governmental Authorities of the Autonomous Island
of the Grande Comore&#8217;s financial contractual obligations (tipping fees and/or fees due for the purchase of the renewable energy),
which same can immediately, after default, be executed upon by BioCrude, to remedy default.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><span style="text-decoration: underline">Nota Bene</span></b>:
The parties (the Governmental Authorities of the Grande Comore and BioCrude), following discussions, agreed to enforce amendments discussed
and reflect same within the agreements and agreed to sign these new agreements, as amended, on December 9, 2016, replacing all of the
agreements signed on the 11<sup>th</sup> of January 2016. The principal points of amendment were to incorporate the identified land concession,
which was assigned to BioCrude, by governmental decree, on November 12, 2016 and to reflect the new governmental administration that
was elected into office as the representatives for the Governmental divisions of the Grande Comore that engaged with BioCrude.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">For the Union of the
Comoros, the Company is still awaiting documents from the Federal Governmental Authorities stating that the Federal Government is the
new Intervening Party to the Concession(s) agreements previously signed with the Governorate (province; autonomous region) of Moroni,
after the outcome of the Federal Referendum, whereby through same, contracting, and economic powers are transferred from the Governorate
(Province) level to that of Federal level. The Referendum outcome favored the Federal Government over that of the Governorate (Autonomous)
Region of Moroni, i.e., authorizing documents are still pending.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><span style="text-decoration: underline">Nota Bene</span>:
</b>The following contractual attributes are intrinsic to the aforesaid contractual (Concessions) agreements:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Contracts are backed
    by Government Sovereign Guarantees</b></span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Law and Jurisdiction
    of Dispute Arbitration (Canada)</b></span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Law of Contract execution
    immunized against change of law with Grandfather clause </b></span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Government issuance
    of (USD 20 Million) Treasury Bond; covers any interim financial defaults &#8211; replenished quarterly</b></span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Government payments
    are in US dollars (foreign exchange rate risk eliminated)</b></span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Zero Income Taxes, VAT&#8217;s
    and no levies &amp; duties of imported materials, equipment, rolling stock, etc.&#8230; for duration of contract (30 years)</b></span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Assignment of contracts/change
    of control clauses benefiting BioCrude (to its discretion)</b></span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Land Lease Concession:
    Symbolic $1 US per 25 hectares per year, for 30 years (term), and for additional 30-year renewal term (no escalations / changes)</b></span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Supply of Effluent Concession:
    Symbolic $1 US per 7,000 kL of Effluent (water) per day, for 30 years (term), and for additional 30-year renewal term (no escalations
    / changes)</b></span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Supply of primary feedstock
    (waste): 700 tons per day not only at zero cost, but at either a &#8220;gate fee&#8221; [government pays BioCrude this tipping fee]</b></span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Government buys back
    all procured renewable energy (net of self-consumption of complex) via a Power Purchase Agreement for the duration of the 30-year
    term and renewal option thereof</b></span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>BioCrude is beneficiary
    of all Certified Emissions Reduction Credits (CERs) due to the MSW to Energy project</b></span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>BioCrude&#8217;s
        management and its Joint-Venture Partner, China Machinery Industry Construction Group Inc. (SINOCONST), have BONIFIDE credentials
        to execute the Engineering, Procurement, and Construction (&#8220;EPC&#8221;) of the MSW to Energy project, as well as the management
        of the operations to same*&#160;</b></span></p></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>Status of Corporate
Works (Milestone dates)</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">* On April 4th, 2017,
China Machinery Industry Construction Group Inc.&#8217;s (SINOCONST) and BioCrude Technologies, Inc. have signed a strategic Partnership
(JV) Agreement which embodies the understood exclusive engagement by and between the participants of the JV Consortium (SINOCONST and
BioCrude) for any present and future Waste to Energy Project(s) acquired by any party worldwide. SINOCONST will be responsible for the
EPC works (for the development of the Project(s) [Design and Build]) as well as securing the financing for the Project(s), while BioCrude
will be the operator (Operation and management).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">China Machinery Industry
Construction Group Inc. (SINOCONST), is one of the earliest large state-owned construction enterprises in China, having Class A general
construction contracting certification and Class A design certification approved by the Ministry of Housing and Urban-Rural Development,
and having AAA credit standing and foreign trade license granted by the Ministry of Commerce. SINOCONST has passed the certification
of ISO9001 Quality Management System, ISO14001 Environmental Management System and GB/T 28001 Occupational Health and Safety Management
System. Presently, SINOCONST has 15 wholly owned subsidiaries, 4 Business Division divisions, 19 branch companies, 8 joint-stock companies
and 1National Exemplary Technician Institute. It boasts more than 10,000 employees, including 3,000 various engineers.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">During the past 60
years since its establishment, SINOCONST has successively undertaken hundreds of large and medium key projects involving different sectors,
such as machinery, automobile, building materials, metallurgy, electric power, chemical, petroleum, electronics, light industry, broadcasting
&amp; TV, environmental protection, municipal, public and civil buildings etc., with projects performed throughout the country. SINOCONST
has made great contribution to China&#8217;s industrial development and modernization.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">SINOCONST will be responsible
for the EPC works (for the development of the Project(s) [Design and Build]) as well as securing the financing for the Project(s), while
BioCrude will be the operator (Operation and management). Both SINOCONST and BioCrude will engage with SPV&#8217;s/SPE&#8217;s, with
Contract (Project) Agreements and Operation and management Agreements.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">As a caveat for securitizing
payment of the contract price for Engineering, Procurement and Construction (&#8220;EPC&#8221;) works, via the financing mechanism established
by SINOCONST, JV Consortium will set up &#8220;Special Purpose Vehicle&#8217;s/Entity&#8217;s&#8221; (&#8220;SPV/SPE&#8221;) for each
and every acquired Project. The JV Consortium&#8217;s mission and ethos for creating an SPV/SPE of each well-defined Project is to enable
direct securitization of financially engineered loans (and other receivables) against direct assets. SINOCONST&#8217;s association (equity
participation) into every SPV/SPE will be provisional, in a sense where same will have a certain stake in the shareholdings (Common Stock)
of the SPV/SPE (as defined in the Capital Structure of the SPV/SPE, as referenced below and in the Memorandum and Articles of Association
of same, refer to Annex I), until such time that the loans vested for the development (Design, Building of Project by SINOCONST) of the
Project are fully paid back by the JV Consortium from the proceeds of the receivables (for services rendered to client by the Project
(SPV/SPE)), and all shares of Common Stock held by SINOCONST are transferred (sold to BioCrude for Project loan(s) repayment, only) to
BioCrude as full and final settlement for the loan (that paid for the contract price of said development to SINOCONST). As part and parcel
to the securitization of the loans in the SPV/SPE, BioCrude shall assign and/or subrogate its rights to its assets of that distinct Project
(Concessions and Power Purchase Agreements, Sovereign Guarantees, Revenues of Operation, etc.&#8230;) to the SPV/SPE (&#8220;JV Consortium&#8221;),
and same shall be subject to Charges (Mortgage, privilege, etc..) for financing (funding), only.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">On April 4, 2017, SINOCONST
and BioCrude have commissioned the services of B &amp; W INT&#8217;L SECRETARY LIMITED (Honk Kong, China) [law firm] to establish an
SPV/SPE, &#8220;<b>BioCrude Technologies, (Hong Kong) Limited</b>&#8221; [JV Corporation], as the development vehicle for the MSW to
Energy project for the Autonomous Island of the Grande Comore, Union of the Comoros (BioCrude Technologies, (Hong Kong) Limited; filed
as an exhibit with the SEC). The &#8220;SPV/SPE&#8221; possesses the following characteristics:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Memorandum and Articles
    of Association</b>: &#8220;The Companies Ordinance (Cap. 622) [Hong Kong, China]&#8221; for &#8220;Private Company Limited by Shares&#8221;
    is utilized as the base Memorandum and Articles of Association and enhanced / modified as per the terms, conditions and stipulations
    of the JV Agreement by and between SINOCONST and BioCrude (&#8220;<b>Memorandum and Articles of Association</b>&#8221;; filed as
    an exhibit with the SEC).</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Organization and Capital
    Structure</b>: as per the stipulations of the Memorandum and Articles of Association, and modified to reflect the following, as well:</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><span style="font-size: 10pt">BioCrude will
account for seventy percent (70.0%) of the total issued and outstanding shares of Common Stock at an issue price of 1 HKD per share for
an aggregate issue price of 700 HKD, and at Closing Date;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><span style="font-size: 10pt">SINOCONST
will account for thirty per cent (30.0%) of the total issued and outstanding shares of Common Stock, at an issue price of 1 HKD per share
for an aggregate issue price of 300 HKD, and at Closing Date and issued only once financing (funding) for the Project has been put in
place, and will be holder of same until such time that financing (funding) has been paid back, in full, whereby all shares of Common
Stock will have been transferred to BioCrude, as full and final settlement for loan repayment and shares of Common Stock acquisition.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><span style="font-size: 10pt"><b><span style="text-decoration: underline">Nota
Bene</span></b>: The financing (funding) secured by SINOCONST for the Project and accepted by the JV Consortium will bare an amortization
of approximately five (5) years, with a negotiated mechanism for the repayment schedule of principal and interest. Every year end (from
the beginning of operations of the Project, i.e., after project completion in accordance to the terms, conditions and stipulations of
SINOCONST&#8217;s engagement (Contract (Project) Agreement) with SPV/SPE), relative to the amount of capital paid down from the original
outstanding loan on that year, a pro rata amount of shares of Common Stock will be given (transferred) back to BioCrude in that year,
until the full repayment of the loan, whereby the balance of the shares of Common Stock outstanding as shareholdings of SINOCONST are
transferred back to BioCrude, and BioCrude is one hundred per cent (100.0%) shareholder of all of the issued and outstanding shares of
Common Stock.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Management (Board of
    Directors, Officers)</b>: as per the stipulations of the Articles of Association, modified to reflect the terms, provisions and stipulations
    of the JV Agreement by and between BioCrude and SINOCONST.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">On April 4th, 2017,
SINOCONST&#8217;s General Manager of the Group Business Development Department, Mr. Zhou Tao, and BioCrude Technologies (Comoros), LTD.
[Hong Kong SPV established by SINOCONST and BioCrude, as a JV Partnership], Chairman and CEO, Mr. John Moukas, have signed a Construction
(EPC) Contract Agreement which embodies SPV&#8217;s engagement of SINONST to Design, Construct, and Finance BioCrude&#8217;s Municipal
Solid Waste (MSW) to Energy Complex in the municipality of Moroni, Autonomous Island of the Grande Comore, Union of the Comoros, to treat
MSW and procure renewable energy and other marketable by-products (organic fertilizer, ash, primary feedstock for building materials,
etc.&#8230;) within the conforms of BioCrude&#8217;s acquired Concession and Power Purchase Agreements, as well as BioCrude&#8217;s
Deed of Assignment pursuant to a Public-Private Partnership with the Governmental Authorities of the Autonomous Island of Grande Comore,
Union of the Comoros.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">On September 1, 2017,
BioCrude, in joint with SINOCONST (&#8220;JV Consortium&#8221;), have had a work session (in Beijing, China) with China Export and Credit
Insurance Corporation (&#8220;SINOSURE&#8221;), to clarify particulars regarding BioCrude&#8217;s Municipal Solid Waste (MSW) to Energy
Complex (&#8220;Project&#8221;) in the municipality of Moroni, Autonomous Island of the Grande Comore, Union of the Comoros, more particularly,
the Concessions and Power Purchase Agreements and the Deed of Assignment pursuant to a Public &#8211; Private Partnership. Thereafter,
BioCrude and SINOCONST, on behalf of BioCrude Technologies, (Hong Kong) Ltd (&#8220;SPV/SPE&#8221;), have submitted an application to
SINOSURE requesting loan insurance for the Project. As part and parcel to the loan insurance application, an independent third-party
feasibility study for the Project was requested. The JV Consortium has taken the initiative to solicit same for the execution of the
required works.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">On September 5, 2017,
JV Consortium, on behalf of SPV/SPE, had a work session (in Beijing, China) with the Industrial and Commercial Bank of China Limited
(&#8220;ICBC&#8221;), and shortly therewith, submitted to same, an application for funding for BioCrude&#8217;s Project. We are awaiting
feedback regarding the indicative terms and conditions (&#8220;term sheet&#8221;) for the Project funding.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">On October 5, 2017,
BioCrude received from ICBC, the indicative terms and conditions (&#8220;term sheet&#8221;) for the Project funding (term of validity
was six months). On April 8, 2018, BioCrude received from ICBC, a renewal of the &#8220;term sheet&#8221;, extending the term of validity
for another six months.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">In January 2018, BioCrude,
in joint with SINOCONST (&#8220;JV Consortium&#8221;), have commissioned out the works related to the feasibility study of the Municipal
Solid Waste (MSW) to Energy Complex (&#8220;Project&#8221;) in the municipality of Moroni, Autonomous Island of the Grande Comore, Union
of the Comoros, to China International Electronic Commerce Center (&#8220;CIECC&#8221;), an independent engineering firm in China, acceptable
to SINOSURE&#8217;s shortlist of accredited and acceptable suppliers for same.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">On January 23, 2018,
BioCrude, in joint with SINOCONST (&#8220;JV Consortium&#8221;), had a work session (in Beijing, China) with CIECC. CIECC had requested
that all of BioCrude&#8217;s literature be translated into mandarin (translation was concluded by March 30, 2018); the status of the
final report of the feasibility study for the project, as of these presences, is on hold due (awaiting feedback from the federal government
of Union of the Comoros).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">On April 29, 2018,
Comoros&#8217;s President Sem Azali Assoumani declared that a referendum on amending the country&#8217;s Constitution would be held in
July 2018. The results of the referendum were in favor of changing the constitution, and one of the issues of address was federal consolidation
of powers, and as such, the Federal Government of the Union of the Comoros, would now be the new Intervening Party to the Concessions
and Power Purchase Agreements, as well as the Deed of Assignment pursuant to a Public-Private Partnership (PPP), in lieu of the Governorate
of the Autonomous Island of Grande Comore.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">In the months of September
and November 2018, BioCrude sent a delegation to the Union of the Comoros in order to clarify and document the transition of the Federal
Government&#8217;s intervention, and as such, the Federal Government of the Union of the Comoros has yet to issue to BioCrude the following
Amending Declarations:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amending Declaration to
    the Concessions and Power Purchase Agreements, as well as the Deed of Assignment pursuant to a Public-Private Partnership (PPP),
    by the Ministry of Finance, Economy, Budget, Investment and Foreign Trade of the Union of the Comoros, whereby they Federal Government
    of the Union of the Comoros acknowledges same, as well as declare that the Federal Government of the Union of the Comoros is the
    new intervening party to contracts, more particularly, with respect to honoring all of the Government&#8217;s obligations within
    the signed engagements with BioCrude, as well as the Sovereign Guarantees attached to same.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amending Declaration to
    the Concessions and Power Purchase Agreements, as well as the Deed of Assignment pursuant to a Public-Private Partnership (PPP),
    by the Ministry of Production, Environment, Energy, Industry and Crafts of the Union of the Comoros, whereby the Federal Government
    of the Union of the Comoros acknowledges same, as well as declare that the Federal Government of the Union of the Comoros is the
    new intervening party to contracts, more particularly, with respect to honoring all of the Government&#8217;s obligations with the
    issuance of all necessary permits, and clearances for the development of BioCrude&#8217;s Waste to Energy project in Moroni, Grande
    Comore, Union of the Comoros.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.1pt; text-align: justify"><span style="font-size: 10pt">BioCrude
also requested from the Federal Government of the Union of the Comoros&#8217; legal division, a legal opinion of the Concessions and
Power Purchase Agreements, as well as the Deed of Assignment pursuant to a Public-Private Partnership (PPP), incorporating the change
of the Contracting/Intervening Party. The Federal Government of the Union of the Comoros&#8217; legal division has yet to issue same.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.1pt; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">As of these presences,
BioCrude has yet to receive the amending declarations, and legal opinion from the Federal Government of the Union of the Comoros, as
well as a signing date for the aforementioned expansion of works of waste treatment for the Governorates of Moheli and Anjouan, and for
the Waste Collection, and Street and Public Spaces Cleaning for the whole country of the Union of the Comoros (Autonomous Islands of
Grande Comore, Moheli and Anjouan).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt"><b>Going Concern</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The future of the Company
is dependent upon its ability to obtain financing and upon future profitable operations. Management has plans to seek additional capital
through private placements and a public offering of its common stock, if necessary. Although, historically, the Company had continuous
losses and negative working capital issues, there are doubts about the Company&#8217;s ability to continue as a going concern.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The Company&#8217;s
ability to become a profitable operating company is dependent upon its ability to generate revenues and/or obtain financing adequate
to fulfill our requirements to complete evaluations of Concession acquisitions and development of same opportunities and to achieve a
level of revenues adequate to support our cost structure has raised substantial doubts about our ability to continue as a going concern.
We plan to attempt to raise additional equity capital by selling shares in this offering and, if necessary, through one or more private
placement or public offerings. However, the doubts raised, relating to our ability to continue as a going concern, may make our shares
as an unattractive investment for potential investors. These factors, among others, may make it difficult to raise any additional capital.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>Plan of Operation</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">With the signing of
the Concession Agreements with the countries of the Union of the Comoro, the Company, during the next twelve months, will be able to
aggressively implement the building of its corporate infrastructure by adding a few key senior managers to oversee the control of the
management of the Complexes and the general management of the Company. In addition, technical staff experienced in the management of
the Engineering, Procurement, and Construction (&#8220;EPC&#8221;) activities, a key component in the controlling the successful creation
of a Complex, will also be hired. The anticipated cost for accomplishing this is approximately twenty million United States dollars (20,000,000
USD), which includes the provisions for infrastructure development of the Company (construction, fixed assets and equipment procurement),
human resource staffing and working capital. The anticipation of raising funds through a common share offering will further allow the
Company to comfortably expand operations (with enhanced Research and Development), in sync, with the essence of BioCrude&#8217;s mission,
as elaborated within these presents.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The crucial factor
to the financial success is the rapid successful signing of additional concession agreements. Each such agreement requires an immediate
investment in the capital stock of the legal entity created for the purpose of building and subsequently operating the Complex. Additional
investments in the capital stock of each Complex totaling ten percent (10%) of the capital expenditure for a given complex must be made
in conjunction with the securing of long-term debt provided by financial institutions (made possible by the sovereign guarantees included
in the Concession Agreements). The legal entities created for the Complexes in a given country take a wholly owned subsidiary of a joint
venture owned fifty per cent (50%) each by the Company and the local government providing the sovereign guarantee. The Company anticipates
the creation of a total of eight (8) subsidiaries and two (2) joint ventures requiring a total of approximately $46 million (note: each
joint venture entity requires the upfront payment of a licensing fee on the part of the Company&#8217;s joint venture partner, partially
offsetting the Company&#8217;s investment in the Complex and providing a portion of the funds required to operate the Company and make
further investments in additional Complexes).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt"><b><i>Asset Management</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">BioCrude&#8217;s capital
strategy will be focused in two main areas:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;<span style="font-family: Times New Roman, Times, Serif">&#160;</span></span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Implementing operating
    programs that improve capital efficiency and asset utilization; and</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuing selective strategic
    investment opportunities in waste transformation and resource optimization.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">BioCrude seeks to selectively
invest growth capital in high-return opportunities that will enhance its ability to support emerging customer and market needs in waste
transformation and resource optimization. The investment strategy seeks to leverage core competencies in materials processing to create
additional value from the waste stream.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><i>Revenue Streams</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The Company has identified
five (5) main revenue streams. Revenues derived from each Complex (Plant Operating Revenue) are the largest and most secure as this relies
on the long-term Concession Agreements.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt"><b><i>Plant Operating Revenues</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">This revenue stream
is comprised of the following four (4) elements;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><i>Tipping Fees</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">In exchange for the
provided environmental services, municipalities have to pay a tipping fee per ton of waste delivered by the city to the MSW-Energy Complexes
(&#8220;<b>Tipping Fees</b>&#8221;) based on the long-term Concession Agreement on a &#8220;<b>Put or Pay</b>&#8221; (for full face value)
basis.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><i>Sales of Power</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">In the W2E plant, the
waste is processed in RDF (Refuse Derived Fuel) and Biomethanation processes to yield marketable by-products. The RDF and the biogas
are used for power generation. The power is sold to the grid based on a long-term contract (Power Purchase Agreement) on a &#8220;<b>Take
or Pay</b>&#8221; (for full face value) basis.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><i>Sales of Carbon
Credits</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The carbon credits
gained by reducing the green gas emission and by producing power based on renewable energy (&#8220;<b>Clean Design Mechanism</b>&#8221;
(CDM)) are sold on the carbon credit market.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><i>Sales of By-Products
</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The by-products of
recycled materials and fertilizer will be marketed and sold to third parties:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Compost will be sold to
    the farming industry (which, in certain instances, is subsidized by the government), at spot market prices, less 15%. BioCrude may
    sell any excess product outside of the municipality and/or country.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ash can be sold to resellers
    of construction materials.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Processed inerts (primary
    feedstock for building materials) can be sold to entities (local and foreign) engaged in that processing milieu.&#160;</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: top">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9658;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Recyclables can be sold
    to entities (local and foreign) engaged in that processing milieu.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">In the unlikely event
MSW feedstock is not delivered to the Complex, the MSW Agreement ensures that BioCrude is compensated for any shortfall in revenue derived
from the sale of electricity and by-products of Compost, ash and recyclables produced by the complex.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><i>Engineering,
Procurement and Construction Fees</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">To ensure that the
planned benefits contained in the design of each Complex is realized BioCrude undertakes to supervise the entire EPC process and is compensated
accordingly, adhering to industry norms for such expertise.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><i>Servicing Fees</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">Once the Complex is
commercially operational, BioCrude is responsible for the ongoing operation and maintenance of the related facilities. The Company is
compensated for supervising this activity in accordance with the terms of the contracts agreed to and signed prior to the commissioning
of each Complex.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><i>Licensing Fees</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">To accelerate the proliferation
of the Company&#8217;s presence in the W2E market and at the same time reduce the demand on its cash resources, BioCrude is willing to
license its technology, to selected third parties in the form of joint ventures, resulting in another potential source of revenue.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt"><b><i>Results of Operations</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><i>For the six months
period ended June 30, 2022, and 2021</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><span style="text-decoration: underline">Revenue</span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">We did not generate
revenue during the six months period ended June 30, 2022, and 2021.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><span style="text-decoration: underline">Costs and Expenses</span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">During the six months
period ended June 30, 2022, there were $67,574 of operating expenses consisting of general and administrative expenses compare to $314,853
of operating expenses for the same period in 2021.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><span style="text-decoration: underline">Liquidity and
Capital Resources</span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">As at June 30, 2022,
the Company had $567 in cash and did not have any other cash equivalents. The following table provides detailed information about our
net cash flow for the six months period ended June 30, 2022, and 2021. To date, we have financed our operations through the issuance
of stock and borrowings.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
summary, our cash flows were as follows:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
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    <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(66,211</td><td style="width: 1%; text-align: left">)</td><td style="width: 8%">&#160;</td>
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    <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Net cash used in investing activities</td><td>&#160;</td>
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  <tr style="vertical-align: bottom; background-color: White">
    <td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">Cash, beginning of period</td><td style="padding-bottom: 1pt">&#160;</td>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">Due to the limited
nature of the Company&#8217;s operations to date, the Company does not believe that past performance is any indication of future performance.
The impact on the Company&#8217;s revenues of recognized trends and uncertainties in our market will not be recognized until such time
as the Company has had sufficient operations to provide a baseline.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>Operating activities</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">During the six months
period ended June 30, 2022, there were $67,574 of operating expenses consisting of general and administrative expenses compare to $314,853
of operating expenses for the same period in 2021. The lower operating expenses during the six months ended June 30, 2021, mainly attributed
to 120,000 stocks issued for service during the six months ended June 30, 2021.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>Investing activities</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">Net cash used in investing
activities were $Nil for the six months period ended June 30, 2022, and 2021, respectively.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>Financing activities</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">Net cash provided by
financing activities was $65,000 and $207,165 for the six months ended June 30, 2022, and 2021, respectively.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">Since inception, we
have financed our cash flow requirements through issuance of common stock and related party advances. As we expand our activities, we
may, and most likely will, continue to experience net negative cash flows from operations, pending receipt of listings or some form of
advertising revenues. Additionally, we anticipate obtaining additional financing to fund operations through common stock offerings, to
the extent available, or to obtain additional financing to the extent necessary to augment our working capital. In the future we need
to generate sufficient revenues from sales to eliminate or reduce the need to sell additional stock or obtain additional loans. There
can be no assurance we will be successful in raising the necessary funds to execute our business plan.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">We anticipate that
we will incur operating losses in the next twelve months. Our lack of operating history makes predictions of future operating results
difficult to ascertain. Our prospects must be considered in light of the risks, expenses and difficulties frequently encountered by companies
in their early stage of development, particularly companies in new and rapidly evolving markets. Such risks for us include, but are not
limited to, an evolving and unpredictable business model and the management of growth.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">To address these risks,
we must, among other things, obtain a customer base, implement, and successfully execute our business and marketing strategy, continually
develop and upgrade our website, respond to competitive developments, and attract, retain and motivate qualified personnel. There can
be no assurance that we will be successful in addressing such risks, and the failure to do so can have a material adverse effect on our
business prospects, financial condition and results of operations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><i>Off-Balance Sheet
Arrangements</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">We do not have any
off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on our financial condition, changes
in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material
to investors.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><i>Critical Accounting
Policies</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The methods, estimates
and judgments we use in applying our accounting policies have a significant impact on the results we report in our financial statements,
which we discuss under the heading &#8220;Results of Operations&#8221; following this section of our MD&amp;A. Some of our accounting
policies require us to make difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently
uncertain.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">We set forth below
those material accounting policies that we believe are the most critical to an investor&#8217;s understanding of our financial results
and condition and that require complex management judgment.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><i>Stock-Based Compensation</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The Company accounts
for all share-based payment awards made to employees and directors, based on their fair value. The Company measures share-based compensation
to consultants by recognizing the fair value of the awards over the period the services are rendered or goods are provided.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b>Critical Accounting
Policies</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">In Financial Reporting
Release No. 60, &#8220;Cautionary Advice Regarding Disclosure About Critical Accounting Policies&#8221; (&#8220;FRR 60&#8221;), the Securities
and Exchange Commission suggested that companies provide additional disclosure and commentary on their most critical accounting policies.
In FRR 60, the SEC defined the most critical accounting policies as the ones that are most important to the portrayal of a company&#8217;s
financial condition and operating results and require management to make its most difficult and subjective judgments, often as a result
of the need to make estimates of matters that are inherently uncertain. Based on this definition, our most critical accounting policies
include non-cash compensation valuation that affects the total expenses reported in the current period and the valuation of shares and
underlying mineral rights acquired with shares. The methods, estimates and judgments we use in applying these most critical accounting
policies have a significant impact on the results we report in our financial statements.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt"><b>Available Information</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">We are subject to the
informational requirements of the Securities Exchange Act of 1934, as amended. All of our reports are able to be reviewed through the
SEC&#8217;s Electronic Data Gathering Analysis and Retrieval System (EDGAR) which is publicly available through the SEC&#8217;s website
(<span style="text-decoration: underline">http://www.sec.gov</span>).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">We intend to furnish
to our stockholders, annual reports containing financial statements audited by our independent certified public accountants and quarterly
reports containing reviewed unaudited interim financial statements for the first two-quarters of each fiscal year. You may contact the
Securities and Exchange Commission at (800) SEC-0330 or you may read and copy any reports, statements, or other information that we file
with the Securities and Exchange Commission at the Securities and Exchange Commission&#8217;s public reference room at the following
location:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-size: 10pt">Public Reference Room</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-size: 10pt">100 F. Street N.W.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-size: 10pt">Washington, D.C. 2054900405</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-size: 10pt">Telephone: (800) SEC-0330</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><span id="b_003"></span><span style="text-decoration: underline">ITEM
3</span>. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The Company is not
exposed to market risk related to interest rates or foreign currencies.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><span id="b_004"></span><span style="text-decoration: underline">ITEM
4</span>. CONTROLS AND PROCEDURES</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><i>Evaluation of Disclosure
Controls and Procedures </i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">As required by Rule
13a-15 under the Securities Exchange Act of 1934 (the &#8220;1934 Act&#8221;), as of December 31, 2020, we carried out an evaluation
of the effectiveness of the design and operation of our disclosure controls and procedures. This evaluation was carried out under the
supervision and with the participation of our Chief Executive Officer (our principal executive officer) and our Chief Financial Officer
(our principal financial officer), who concluded, that our disclosure controls and procedures were effective as at December 31, 2020.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">Disclosure controls
and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports
filed or submitted under the Securities Exchange Act is recorded, processed, summarized and reported within the time periods specified
in the Securities and Exchange Commission&#8217;s rules and forms. Disclosure controls and procedures include, without limitation, controls
and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated
and communicated to our management, including our principal executive officer and our principal financial officer, as appropriate, to
allow timely decisions regarding required disclosure.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

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    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-size: 10pt"><b><span style="text-decoration: underline">PART II OTHER
INFORMATION</span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><span id="b_005"></span><span style="text-decoration: underline">ITEM
1</span>. LEGAL PROCEEDINGS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">The Company is not
a party to any legal proceedings.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><span id="b_006"></span><span style="text-decoration: underline">ITEM
1A</span>. RISK FACTORS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">There have been no
material changes in the risk factors set forth in the Company&#8217;s 10-K/A (2020) filed February 16, 2021.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><span id="b_007"></span><span style="text-decoration: underline">ITEM
2</span>. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">There were no sales
of unregistered equity securities during the covered time period.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><span id="b_008"></span><span style="text-decoration: underline">ITEM
3</span>. DEFAULTS UPON SENIOR SECURITIES</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">None.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><span id="b_009"></span><span style="text-decoration: underline">ITEM
4</span>. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">None.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><span id="b_010"></span><span style="text-decoration: underline">ITEM
5</span>. OTHER INFORMATION</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">None.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt"><b><span id="b_011"></span><span style="text-decoration: underline">ITEM
6</span>. EXHIBITS AND REPORTS ON FORM 8-K</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following documents
    are included or incorporated by reference as exhibits to this report:</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="border-bottom: black 1pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Exhibit
No.</b></span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="border-bottom: black 1pt solid; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Description</b></span></td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
<td style="width: 10%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">31.1</span></td>
<td style="width: 1%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="width: 89%; text-align: justify"><a href="e3926_ex31-1.htm"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certification
of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.</span></a></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">31.2</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><a href="e3926_ex31-2.htm"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certification
of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.</span></a></td></tr>
<tr style="vertical-align: top; background-color: #CCEEFF">
<td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">32.1</span></td>
<td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="text-align: justify"><a href="e3926_ex32-1.htm"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certification
of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.</span></a></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">REPORTS ON FORM 8-K</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">None.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-size: 10pt"><b>SIGNATURES</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
accordance with Section 13 or 15 (d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Date: August 10 2022</span></td></tr>
<tr style="vertical-align: top">
<td style="width: 50%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="width: 5%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td style="width: 45%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td colspan="2" style="border-bottom: Black 1pt solid"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Biocrude
Technologies USA, Inc.</b></span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Registrant</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</span></td>
<td style="border-bottom: Black 1pt solid"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ John Moukas</span></td></tr>
<tr style="vertical-align: top">
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
<td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Executive Officer</span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">42</span><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>

<!-- Field: Rule-Page --><div style="margin-top: 3pt; margin-bottom: 3pt; width: 100%"><div style="border-top: Black 2pt solid; font-size: 1pt">&#160;</div></div><!-- Field: /Rule-Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-size: 10pt">&#160;</span></p>





























































































































































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U.S.
SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
10-Q
(Mark One)
☒
Quarterly Report under Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended
June 30, 2022
or
☐
Transition Report under Section 13 or 15(d) of the Exchange
Act
For the Transition Period from
________to __________
Commission File Number:
000-55818
BioCrude Technologies USA, Inc.
(Exact Name of Registrant as
Specified in its Charter)
Nevada
81-2924160
(State of incorporation)
(I.R.S. Employer Identification
No.)
1255 Phillips Square
,
Suite 605
Montreal
,
Quebec
,
Canada
H3B 3G5
(Address of principal executive offices)
514
-
840-9719
(Registrant's telephone number including
area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Class
Trading Symbol
Name of each exchange
on which registered
Indicate by check mark whether the issuer (1) filed
all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the past 12 months (or such shorter period
that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes
☐
No
☒
Indicate by check mark whether the registrant is
a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large
accelerated filer", "an accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange
Act.
Large Accelerated
Filer
☐
Accelerated Filer
☐
Non-Accelerated Filer
☐
Smaller Reporting Company
☒
Emerging Growth Company
☐
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Indicate by check mark whether the registrant is
a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
☐
No
☒
As of June 30, 2022, the issuer had
50,722,886
shares of common stock issued and outstanding.
TABLE
OF CONTENTS
Page
PART I –
FINANCIAL INFORMATION
Item 1.
Financial Statements-
Unaudited
1
Item 2.
Management's Discussion and Analysis
of Financial Condition and Results of Operation
9
Item 3.
Quantitative and Qualitative Disclosures
about Market Risk
40
Item 4.
Controls and Procedures
40
PART II –
OTHER INFORMATION
Item 1.
Legal Proceedings
41
Item 1A.
Risk Factors
41
Item 2.
Unregistered Sales of Equity Securities
and Use of Proceeds
41
Item 3.
Defaults Upon Senior Securities
41
Item 4.
Submission of Matters to a Vote of Security
Holders
41
Item 5.
Other Information
41
Item 6.
Exhibits
41
PART I – FINANCIAL INFORMATION
ITEM 1
. FINANCIAL STATEMENTS
BIOCRUDE TECHNOLOGIES USA, INC.
CONSOLIDATED BALANCE SHEETS
(EXPRESSED IN US DOLLARS)
(UNAUDITED)
UNAUDITED
June 30,
2022
AUDITED
December 31,
2021
ASSETS
CURRENT ASSETS
Cash
$
567
$
1,778
Property, plant and equipment
18,972
20,854
TOTAL ASSETS
$
19,539
$
22,632
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable and accrued liabilities
$
20,816
$
16,424
Accounts payable and accrued liabilities - related parties (Note
    6)
38,304
41,664
Loans payable (Note 4)
153,771
138,394
TOTAL LIABILITIES
$
212,889
$
196,482
STOCKHOLDERS' DEFICIT
Common stock, $
0.001
par value,
75,000,000
shares authorized,
50,722,886
and outstanding (December 31, 2021 -
50,710,386
)
$
50,723
$
50,711
Additional paid in capital
8,573,744
8,523,756
Accumulated other comprehensive income
28,715
28,678
Deficit
(
8,843,955
)
(
8,774,402
)
TOTAL STOCKHOLDERS' DEFICIT ATTRIBUTALBLE
    TO EQUITY SHAREHOLDERS OF THE COMPANY
$
(
190,773
)
$
(
171,257
)
NON-CONTROLLING
    INTEREST
$
(
2,577
)
$
(
2,593
)
TOTAL LIABILITIES
    AND STOCKHOLDERS' DEFICIT
$
19,539
$
22,632
The accompanying notes are
an integral part of these consolidated financial statements.
1
BIOCRUDE TECHNOLOGIES USA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
FOR THE THREE & SIX MONTHS ENDED JUNE 30, 2022
AND 2021
(EXPRESSED IN US DOLLARS)
(UNAUDITED)
For the three months ended
For the six months ended
June 30, 2022
June 30, 2021
June 30, 2022
June 30, 2021
REVENUE
$
—
$
—
$
—
$
—
OPERATING EXPENSES
General and administrative
14,526
152,158
67,574
314,853
Total operating expenses
14,526
152,158
67,574
314,853
LOSS FROM OPERATIONS
(
14,526
)
(
152,158
)
(
67,574
)
(
314,853
)
Interest expense
(
986
)
(
1,025
)
(
1,979
)
(
2,126
)
Income tax expense
—
—
—
—
NET LOSS
$
(
15,512
)
$
(
153,183
)
$
(
69,553
)
$
(
316,979
)
OTHER COMPREHENSIVE LOSS
Exchange differences on translating foreign operations
11
(
4
)
37
6
Exchange differences on translating non-controlling interest
5
(
2
)
16
2
TOTAL COMPREHENSIVE LOSS
$
(
15,496
)
$
(
153,189
)
$
(
69,500
)
$
(
316,971
)
NET LOSS ATTRIBUTABLE TO
Equity shareholders of the Company
$
(
15,512
)
$
(
153,183
)
$
(
69,553
)
$
(
316,979
)
Non-controlling interest
—
—
—
—
NET LOSS
$
(
15,512
)
$
(
153,183
)
$
(
69,553
)
$
(
316,979
)
TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE
    TO
Equity shareholders of the Company
$
(
15,501
)
$
(
153,187
)
$
(
69,516
)
$
(
316,973
)
Non-controlling interest
5
(
2
)
16
2
TOTAL COMPREHENSIVE LOSS
$
(
15,496
)
$
(
153,189
)
$
(
69,500
)
$
(
316,971
)
Net loss per common share basic and diluted
$
(
0.00
)
$
(
0.00
)
$
(
0.00
)
$
(
0.00
)
Weighted average number of common shares outstanding
    basic and diluted
50,715,163
50,604,735
50,715,163
50,604,735
See accompanying notes to unaudited
interim consolidated financial statements
2
BIOCRUDE TECHNOLOGIES USA,
INC.
CONSOLIDATED STATEMENTS OF
CHANGES IN STOCKHOLDERS' DEFICIT
(EXPRESSED IN US DOLLARS)
(UNAUDITED)
Number of shares
Par Value
Additional   Paid-in   Capital
Accumulated Other Comprehensive Income
Deficit
Total equity attributable to equity
    shareholders of the Company
Non-controlling interest
Total
Balance at December 31, 2021
50,710,386
$
50,711
$
8,523,756
$
28,678
$
(
8,774,402
)
$
(
171,257
)
$
(
2,593
)
$
(
173,850
)
Stock issued for services
—
—
—
—
—
—
—
—
Stock issued for convertible debts
—
—
—
—
—
—
—
—
Stock issued for cash
12,500
12
49,988
—
—
50,000
—
50,000
Beneficial conversion feature
—
—
—
—
—
—
—
—
Foreign currency translation loss
—
—
—
26
—
26
11
37
Net loss
—
—
—
—
(
54,041
)
(
54,041
)
—
(
54,041
)
Balance at March 31, 2022
50,722,886
$
50,723
$
8,573,744
$
28,704
$
(
8,828,443
)
$
(
175,272
)
$
(
2,582
)
$
(
177,854
)
Stock issued for services
—
—
—
—
—
—
—
—
Stock issued for convertible debts
—
—
—
—
—
—
—
—
Stock issued for cash
—
—
—
—
—
—
Beneficial conversion feature
—
—
—
—
—
—
—
—
Foreign currency translation loss
—
—
—
11
—
11
5
16
Net loss
—
—
—
—
(
15,512
)
(
15,512
)
—
(
15,512
)
Balance at June 30, 2022
50,722,886
$
50,723
$
8,573,744
$
28,715
$
(
8,843,955
)
$
(
190,773
)
$
(
2,577
)
$
(
193,350
)
The accompanying notes to unaudited
interim consolidated financial statements
3
BIOCRUDE TECHNOLOGIES USA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE & SIX MONTHS ENDED JUNE 30, 2022
AND 2021
(EXPRESSED IN US DOLLARS)
UNAUDITED
June 30, 2022
UNAUDITED
June 30, 2021
CASH FLOWS FROM OPERATING
    ACTIVITIES:
Net loss
$
(
69,553
)
$
(
316,979
)
Adjustments to reconcile net loss to net
    cash used in operating activities
Accretion and interest expenses
1,981
2,127
Amortization
1,882
1,649
Stock issued for services
—
186,198
Foreign exchange
(
1,551
)
(
2,781
)
Changes in operating assets and liabilities
Accounts payable and accruals
4,390
(
18,228
)
Accounts payable and accrued liabilities
    – related party
(
3,360
)
(
88,710
)
Net cash used in operating activities
(
66,211
)
(
236,724
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible debt
Proceeds from private placement
50,000
220,000
(Repayment) Proceeds of loans payable
15,000
(
12,835
)
Net cash provided by financing activities
65,000
207,165
CASH FLOWS FROM INVESTING
    ACTIVITIES:
Purchase of property, plant and equipment
—
—
Net cash used in financing activities
—
—
Effect of exchange rate changes on cash
—
—
CHANGE IN CASH DURING THE PERIOD
(
1,211
)
(
29,559
)
CASH BEGINNING
1,778
109,971
CASH ENDING
$
567
$
80,412
SUPPLEMENTAL DISCLOSURE
    OF CASH FLOW INFORMATION:
Cash paid for income taxes
$
—
$
—
Interest paid
$
—
$
—
Noncash investing and financing activities:
Conversion of convertible debt to common
    stock
$
—
$
—
Stock issued for services
$
—
$
120,000
See accompanying notes to unaudited interim consolidated
financial statements
4
BIOCRUDE TECHNOLOGIES USA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1
–
ORGANIZATION AND BASIS OF PRESENTATION
Nature of Operations
Biocrude Technologies
USA, Inc. (the "Company") was incorporated under the laws of the State of Nevada on December 29, 2015. The Company's
principal business objective is to provide resource management expertise and services, catering to commercial, municipal, and industrial
customers, primarily in the areas of solid waste management and recycling services.
Interim Financial Statements
The unaudited
interim consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting
principles ("GAAP") for interim financial information and the rules and regulations of the Securities and Exchange Commission
("SEC"). They do not include all information and footnotes required by GAAP for complete financial statements. Except as
disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year
ended December 31, 2021 included in the Company's 2021 annual report on Form 10-K, filed with the SEC. The unaudited interim consolidated
financial statements should be read in conjunction with those financial statements included in Form 10-K. In the opinion of management,
all adjustments considered necessary for fair presentation, consisting solely of normal recurring adjustments, have been made. Operating
results for the six-month period ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year
ending December 31, 2022.
Going Concern
The Company's
consolidated financial statements are prepared on a going concern basis in accordance with United States generally accepted accounting
principles ("US GAAP") which contemplate the realization of assets and discharge of liabilities and commitments in the normal
course of business. The Company has not generated operating revenues to date and has accumulated losses of $
8,843,955
since inception. The Company has funded its operations through the issuance of capital stock,
convertible debt, loans, and advances from related parties. Management plans to raise additional funds through equity and/or debt financings. There
is no certainty that further funding will be available as needed. These factors raise substantial doubt about the ability of the Company
to continue operating as a going concern. The Company's ability to continue its operations as a going concern, realize the carrying
value of its assets, and discharge its liabilities in the normal course of business is dependent upon its ability to raise new capital
sufficient to fund its commitments and ongoing losses, and ultimately on generating profitable operations.
5
NOTE 2 –
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of
presentation and Principles of Consolidation
These consolidated
financial statements and related notes are presented in accordance with US GAAP and are presented in United States dollars.
The accompanying
consolidated financial statements include the accounts of its
100
% owned subsidiary, Biocrude Technologies (Hong Kong) Limited ("Biocrude
HK"). All significant inter-company transactions and balances have been eliminated upon consolidation.
Use of
Estimates
The preparation
of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Significant areas requiring management's
estimates and assumptions include determining the fair value of transactions involving shares common stock. Actual results could
differ from those estimates.
Fair Value Measurements
The Company adopted
the provisions of ASC Topic 820, "Fair Value Measurements and Disclosures", which defines fair value as used in numerous
accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements.
The estimated
fair value of certain financial instruments, including cash and cash equivalents, payables to related parties, and accounts payable and
accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these
instruments.
ASC 820 defines
fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal
or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.
ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use
of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that be used to measure fair value:
Level 1 - quoted
prices in active markets for identical assets or
Level 2 - quoted
prices for similar assets and liabilities in active markets or inputs that are observable
Level 3 - inputs
that are unobservable (for example cash flow modeling inputs based on assumptions)
The Company's
financial assets and liabilities are subsequent measured at amortized cost, but their carrying amount approximates their fair value due
to the short period of time until maturity.
Foreign
Currency Translation and Transaction
The Company's
presentation currency is the U.S dollar. The functional currency of Biocrude USA and Biocrude HK is U.S dollar and Hong Kong dollar,
respectively. Assets and liabilities of the foreign operations are translated to the U.S dollar using the exchange rate at period end,
and income, expenses and cash flow items are translated using the rate approximates the exchange rates at the dates of the transactions
(i.e., the average rate for the period). All resulting exchange differences recognized directly in other comprehensive income (loss).
6
Transactions
in currencies other than the entity's functional currency are recorded at the rates of exchange prevailing at the dates of the
transactions. At each statement of financial position date, monetary assets and liabilities are translated using the period end foreign
exchange rate. Non-monetary assets and liabilities are translated using the historical rate on the date of the transaction. Non-monetary
assets and liabilities that are stated at fair value are translated using the historical rate on the date that the fair value was determined.
All gains and losses on translation of these foreign currency transactions are included in profit or loss.
Cash and
cash equivalents
Cash and cash
equivalents consist of cash balances and highly liquid instruments with an original maturity of three months or less. As at June 30,
2022 and 2021, the Company does
no
t have cash equivalents.
Property,
plant and equipment
Property, plant,
and equipment are recorded at cost and depreciated to its estimated residual values using the straight-line method over its estimated
useful lives of
8
years.
Share-based
Expense
ASC 718, "
Compensation
– Stock Compensation
", prescribes accounting and reporting standards for all share-based payment transactions in which
employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other
equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including
grants of employee stock options, are recognized as compensation expense in the financial statements based on their fair values. That
expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the
requisite service period (usually the vesting period).
The Company accounts
for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, "
Equity
– Based Payments to Non-Employees."
Measurement of share-based payment transactions with non-employees is based on the
fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair
value of the share-based payment transaction is determined at the earlier of performance commitment date or performance completion date.
Income
Taxes
Deferred tax
assets and liabilities are measured using enacted tax rates expected to apply to taxable income for the years in which those differences
are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in
income statement in the period that includes the date of enactment. Additionally, ASC 740: Income Taxes, requires the Company to recognize
in its financial statements the impact of a tax position that is more likely than not to be sustained upon examination based on the technical
merits of the position.
7
Leases
Effectively January
1, 2018, the Company adopted ASC Leases which requires a lessee to recognize the assets and liabilities that arise from leases, including
operating leases. Under the new requirements, a lessee will recognize in the balance sheet a liability to make lease payments (the lease
liability) and the right-of-use asset representing the right to the underlying asset for the lease term. For leases with a term of twelve
months or less, the lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities by
class of underlying assets. The Company did not enter into any significant operating leases for the six months period ended June 30,
2022 and did not have any significant leases as at December 31, 2021. Adoption of this standard does not have material impact on the
Company's interim consolidated financial statements.
Earnings
Per Share Information
FASB ASC 260,
"Earnings Per Share" provides for calculation of "basic" and "diluted" earnings per share. Basic
earnings per share includes no dilution and is computed by dividing net loss available to common shareholders by the weighted average
common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in
the earnings of an entity similar to fully diluted earnings per share. Basic and diluted loss per share were the same, at the reporting
dates, as there were no common stock equivalents outstanding.
NOTE 3 –
CONVERTIBLE NOTES
As at June 30,
2022, there are
no
outstanding convertible loans.
NOTE 4 –
LOANS PAYABLE
As at June 30,
2022, the Company has loans payable of $
121,976
(December 31, 2021 – $
110,026
) in principal and accrued interest of $
30,808
(December
31, 2021 - $
29,814
) outstanding. These loans bear an average interest rate of
4
%, are unsecured and have extended maturities until
December
31, 2022
. Included in the balance of loans payable as at June 30, 2022, $
15,000
(December 31, 2021 - $
25,336
) was due to a director of
the Company.
NOTE 5 -
RELATED
PARTY TRANSACTIONS
As at June 30,
2022, the "CEO" of the Company and a director had advanced the Company a cumulative $
25,400
(December 31, 2021 - $
41,664
)
net of repayments for the payment of the Company's operating expenses. These amounts are unsecured, without interest and payable
on demand and are included in accounts payable and accrued liabilities – related parties.
NOTE 6
–
SHARE CAPITAL
The Company is
authorized to issue up to
75,000,000
shares of common stock at par value $
0.001
per share. As at June 30, 2022, the Company had
50,722,886
(December 31, 2021 -
50,710,386
) shares of common stock issued and outstanding, respectively.
NOTE 7
–
SUBSEQUENT EVENTS
There are no
subsequent events.
8
ITEM 2.
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward-Looking Statements
This Form 10-Q includes "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. All statements, other than statements of historical facts, included or incorporated by reference in this Form 10-Q which
address activities, events or developments which the Company expects or anticipates will or may occur in the future, including such things
as future capital expenditures (including the amount and nature thereof); finding suitable merger or acquisition candidates; expansion
and growth of the Company's business and operations; and other such matters are forward-looking statements. These statements are
based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current
conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. However, whether
actual results or developments will conform with the Company's expectations and predictions is subject to a number of risks and
uncertainties, including general economic, market and business conditions; the business opportunities (or lack thereof) that may be presented
to and pursued by the Company; changes in laws or regulation; and other factors, most of which are beyond the control of the Company.
These forward-looking statements can be identified
by the use of predictive, future-tense or forward-looking terminology, such as "believes," "anticipates," "expects,"
"estimates," "plans," "may," "will," or similar terms. These statements appear in a number
of places in this Filing and include statements regarding the intent, belief or current expectations of the Company, and its directors
or its officers with respect to, among other things: (i) trends affecting the Company's financial condition or results of operations
for its limited history; (ii) the Company's business and growth strategies; and, (iii) the Company's financing plans. Investors
are cautioned that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties,
and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.
Such factors that could adversely affect actual results and performance include, but are not limited to, the Company's limited
operating history, potential fluctuations in quarterly operating results and expenses, government regulation, technological change and
competition.
Consequently, all of the forward-looking statements
made in this Form 10-Q are qualified by these cautionary statements and there can be no assurance that the actual results or developments
anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequence to or effects
on the Company or its business or operations. The Company assumes no obligations to update any such forward-looking statements.
General Business Development
The Company was formed on August 4, 2015 in the State
of Nevada, under the name of "BioCrude Technologies, Inc. On November 8, 2016, the Company received its "Certificate of Amendment
to Articles of Incorporation" pursuant to NRS 78.385 and 78.390 to its request for a name change from "BioCrude Technologies,
Inc." to "BioCrude Technologies USA, Inc.", whilst doing business as "BioCrude Technologies, Inc.", as
well. All of the afore-stated have been filed with SEC as part of the Company's S-1(/A) registration statement(s).
Business Strategy
The Company is a resource management expertise and
services provider, catering to commercial, municipal, and industrial customers, primarily in the areas of solid waste management and
recycling services.
BioCrude Technologies USA, Inc. has developed efficient,
cost-effective, and environmentally friendly products, processes and systems for the reformation of waste material, waste management
and creation of renewable energy.
9
The versatility and potential of the BioCrude Technologies
USA, Inc. has been demonstrated by the many uses that our R&D department has already tested and verified. The avenues they have explored
include sustainable and cost-efficient methods that will enlarge composting and biomethanation yields and rates of decomposition while
increasing output and providing a higher quality of end product. Their focus is on waste treatment protocols for Municipal Solid Waste
("MSW"), cellulose, all organic waste and all manure types; renewable energy sources such as biogas, ethanol and biodiesel;
waste water treatment, and multiple other applications.
One very important area that BioCrude Technologies
USA, Inc. excels in is the reformation of MSW into renewable energy and marketable end-by-products, using its intrinsic intellectual
property and know how in its "Integrated Municipal Solid Waste to Energy Proposed Complexes" for municipal applications.
Understanding the non-homogenous nature and characteristics of the waste, we can define distinct processes to optimally handle the procurement
of the varied categories of waste (MSW can be classified into organics, fuels, recyclables, inerts and others), once segregated with
an efficient separation process and materials recovery facility ("MRF"). There is no intellectual property protection as
of yet. BioCrude will be filing for certain Intellectual property and know how protection via a patent for "Integrated Municipal
Solid Waste to Energy Systems". In addition to patent applications, the Company will apply for trademark protection where appropriate.
The long-term vision of the organization is to be
a world leader in the management of solid waste. Our business model will be to transform solid waste streams into renewable energy resources
and marketable by-products. Conventionally, people, entities, etc.…, view solid waste streams as not only worthless refuse requiring
monetary resources in order to get rid of. BioCrude, on the contrary, views this so-called refuse "as a valuable commodity",
with a negative product cost, i.e., PRODUCT COST is ZERO, with an implicit REVENUE received PER UNIT OF WASTE given for disposal (people,
governments will pay entities/companies in order to get rid of the undesired waste, in the form of a "Tipping" or "Gate"
fee.
Global competition for limited resources is, the Company believes, creating significant business opportunities
for companies
that can sustain and extract value in the form of renewable energy and other marketable by-products, i.e., fertilizer, raw materials
(primary feedstock for building materials), etc.…, from resources previously considered an irretrievable waste stream.
BioCrude's
business strategy has been firmly tied to creating a sustainable resource management model and the Company continues to be rooted in
these same tenets today. Each day the Company strives to create long-term value for all stakeholders: customers, employees, communities,
and shareholders, by helping customers and communities manage their resources in a sustainable and financially sound manner.
The Company intends to achieve successful market
penetration, with distinction, in numerous segments of the industry, generating escalating positive cash flows on an annual basis so
that the Company becomes a competitive leading participant in the industry. Management will look to have its Integrated Municipal Solid
Waste to Energy Complexes widely implemented across Africa, Asia, the Balkans and North America with a view to expanding to other international
markets (Latin America), while continuing to pursue Concession Agreements under private license/joint ventures and other conventional
arrangements.
Municipal Solid Waste Management is the collection,
transport, processing (waste treatment), recycling or disposal of waste materials, usually ones produced by human activity, in an effort
to reduce their effect on human health or local aesthetics or amenity.
Municipal Solid Waste Management ("MSWM")
is a major responsibility for local government. It is a complex task which requires appropriate organizational capacity and cooperation
between numerous stakeholders in the private and public sectors.
The first goal of MSWM is to protect the health of
the population, particularly that of low-income groups. Other goals include promotion of environmental quality and sustainability, support
of economic productivity and employment generation.
Waste-to-energy ("
W2E
") or energy-from-waste
("
EfW
") is the process of creating energy in the form of electricity or heat from the incineration of waste source.
Conventional Municipal Solid Waste Management employs
one or more of the following processes:
10
►
Waste prevention, including
    reuse of products
►
Recycling, including composting
►
Combustion with energy
    recovery
►
Disposal through land-filling
Landfilling is one
of the most common ways of municipal solid waste disposal in developing countries. Air pollutants emitted from landfills contributes
to the emission in the atmosphere of greenhouse gases and cause serious problems to human health.
Methane emissions from
landfills are a serious environmental global concern, as it accounts for approximately 15% of current greenhouse gas emissions. Landfilling
is a significant contributor to greenhouse gas emissions (GHG) accountable for approximately 5% of total GHG releases which consists
of methane from anaerobic decomposition of solid waste and carbon dioxide from wastewater decomposition.
The past 20 years has
seen a change in how we look at our environment. There has been a greater understanding of the economic, social and environmental risks
of not managing waste.
The main drivers of
the W2E market are environmental factors, regulations and legislation and economic factors.
Environmental
Factors
The Stern report, published
in 2006, created an authoritative and eye-opening scientific report on the challenges of climate change. The report highlighted
the need to decarbonize the power sector by 60% and reduce CO
2
emissions by 80% of current levels to ensure increases in global
temperature do not exceed two degrees Celsius.
Regulations
and Legislation
Scientific evidence,
public awareness and increased levels of participation in environmental campaigning have led to governments' worldwide implementing
regulations and legislation. Examples include:
11
●
EU Landfill Diversion Directive
●
recycling targets
●
climate change regulations
Nota
Bene
: It is only in the last two decades that governments worldwide have been working together to come to a consensus of standardized,
environmentally friendly waste management directives, in order to become recognized and implemented practices.
Economics
Economic
drivers to developing the waste and renewable energy sector have included:
●
waste disposal and landfill
    gate fees/landfill tax
●
penalties/avoidance schemes
    (e.g., landfill allowance schemes and fines, carbon trading)
●
energy prices
Waste
to Energy Market Size and Trend
Renewable Energy:
According to the most recent data available from the International Energy Agency, global waste to energy power production from municipal
and industrial wastes increased from 283 terawatt hours to 383 terawatt hours, a 35% increase over that period. In-depth analyses of
the global market, forecasts the market will increase from approximately $27 billion in 2018 to $450 billion by 2030.
MSW Management (Tipping/Gate
fees):
As long as there are people in our world, there will be waste generation. Depending on the demographics of people clusters
(nations), the amount of waste generated on a per capita (person) basis can vary from 0.6 kg (persons in destitute third world countries
(e.g., Niamey [Niger], Juba [South Sudan], Freetown [Sierra Leone], Port-au-Prince [Haiti])) to 1.8 kg (advanced societies with flourishing
economies (e.g., New York City [US], Toronto [Canada], Paris [France], Dubai [UAE]) per person per day. With an approximate current world
population (census 2020) of 7.8 billion persons, there is a minimum quantum (weighted average) of about 6,000,000 tons of waste generated
on a per day basis. Depending on the national budget for the level of waste management treatment implemented by a certain nation, analyses
of the global market, forecasts the market will increase from approximately $45 billion in 2020 to $60 billion by 2030.
Nota Bene
:
The Market potential for Waste Management is not only "HUGE", but at its infancy stage, ready to "EXPLODE", with
few credible corporations, capable of servicing same!
12
Source
: http://www.waste-management-world.com
Competition
The market for Waste-to-Energy
is dominated manly by Germen, French, American and British companies. Ex.: AE&E Group GmbH, Axpo Kompogas AG, Babcock & Wilcox
Volund A/S, Bedminster International Ltd., BiogenGreenfinch, BTA International GmbH, Community Power Corporation, CNIM, Covanta Holding
Corporation, EcoCorp Inc., Keppel Integrated Engineering Ltd., North American Power Group Ltd., Organic Waste Systems NV, STRABAG Umweltanlagen
GmbH, Veolia Environmental Services, Waste Management Inc., and Wheelabrator Technologies Inc., among others.
Nota Bene
:
If you compare the technology of the
Competition
in
juxtaposition
to
BioCrude's (further elaborated upon, hereinunder,
you will be able see why "
BioCrude is the logical choice for the present and the future
".
Defining
Waste Management for Municipal Applications
The provision of municipal
solid waste services is a costly and troubling problem for local authorities everywhere. In many cities, service coverage is low, resources
are insufficient, and uncontrolled dumping is widespread, with resulting environmental and health related problems, which are recognized
worldwide, and cannot be neglected! Moreover, substantial inefficiencies are typically observed. Typically, worldwide, governmental waste
management ordinance, surprisingly enough, encompasses inefficient waste collection, landfilling until over exhaustion, and incineration
.
Out of concern for
the quality of life of their residents, local municipalities bear primary responsibility for waste management. Municipalities will work
with other municipal levels to identify the best collection, transportation, treatment and disposal methods for their respective jurisdictions.
This includes identifying suitable sites for municipal, or regional waste management facilities, and managing and operating collection,
transportation and treatment systems. To increase the environmental and economic efficiency of waste management, local municipalities
will be responsible for planning waste management infrastructure and systems at the urban community and regional county municipality
levels.
Biocrude, with its
upgraded technologically advanced systems, can improve quality of environment, ergo, life.
Waste management planning,
as well as the production of renewable energy resources, are vital issues facing any city or municipality today. We are at a time where
all level of governments recognizes the importance and need for waste management. Be it for financial, environmental, or health issues.
Room for improvement exists for the following:
1.
Reduction, and eventually,
    the elimination of landfilling, as opposed to over exhausting (substituting proposed landfill sites with other forms of development
    (commercial, industrial, residential, agricultural, and community developments, amongst others – real estate value).
13
2.
Reduction of Greenhouse
    Gases, and environmental pollutants with reference to ground and surface water contamination
(percolation of contaminated leachate)
alongside with the elimination of odors.
3.
Further enhanced separation
    process for MSW, which could prelude to a more optimal recycling program.
Nota Bene
:
Landfilling is NOT a solution (contaminates the land forever, cost of construction, waste creation), but a deferral of a problem for
future generation to handle. In essence, it is what it is; a PRACTICE that has been utilized for the longest period of time! Nothing
more!
The myth that landfilling
is a cost-effective solution is what it is; a myth. There are long term ramifications, especially when the landfills are not proper "Scientific
Landfills" (environmental implications; rainfall, leachate, percolation, contamination (soil and water table). Even the fact that,
if a Scientific Landfill is deployed (with membrane linings) at an astronomical cost (the cost of construction of a Scientific landfill,
which could host approximately 2,000 TPD of waste for 25 years could costs approximately 100 MUSD), after a few earth tremors or shifting
of land, the membrane could crack, or over time, the membrane will deteriorate, thus yielding the same negative environmental impacts,
only deferred in time.
Another issue to address
is the continual use of landfills. As time goes on, and waste is continuously generated by the populous and its activities, more and
more landfills have to be created, to a point where a good part of the country will become a cemetery for garbage. Municipalities/governments
must plan to integrate their waste management from a strategic and financial perspective.
BioCrude,
having set as its objective the "PROFITABILITY" of the activities inherent within the realms of this sector, whilst building
business relationships and addressing social implications within the collectivity's / communities that BioCrude is called upon
to serve, beyond the environmental and social implications, and beyond the business imperatives, has set as one of its priorities, the
optimization of waste management and, treatment thereof, all in conformity to the boundaries of economies, efficiency and adherence to
environmental wellbeing initiatives.
BioCrude has been involved in the R&D of Environmental Technologies, both process and product
based, whereby it has enhanced and optimized conventional technology, thus giving credence to environmental, economic, social and technological
well-beings, too numerous to mention (all can be referenced, in its entirety, within BioCrude's Integrated MSW-Energy Proposal.
Shortlists of the aforesaid well-beings are summarized herein under:
1.
Secure, cost-effective
    long-term processing capacity for recyclables and organics.
2.
Improvement of effectiveness
    and efficiency of current waste systems/practices.
3.
Elimination of MSW from
    going to landfills.
4.
Procurement of Renewable
    Energy and Marketable by-products (fertilizer, primary feedstock for building materials, etc.…) from the exploitation of the
    calorific value inherent within the realms of the MSW
5.
Reduction of Greenhouse
    Gases and other environmental pollutants emitted into the atmosphere.
6.
Municipalities do not have
    to undergo cost of implementation; privatized via BOOT (Build, Own, Operate & Transfer), whereby BioCrude Technologies USA, Inc.
    will be lobbying to get the MSW, Land, Sewage treated Effluent and Resale of Electricity Concessions (with Sovereign Guaranties from
    the Ministry of Finance of the Government in question).
14
7.
Due to the profitability
    of the proposal, significant savings could be passed onto the Municipalities, to reduce their day to day on going expenses for Municipal
    Waste Management, for the duration of the BOOT (30 years), by approximately 50% per annum, via MSW Tipping (Gate) Fees (favorably
    outbidding the competition and still having better bottom lines than same) and the Transport of the MSW to neighboring cities/provinces
    (states), without forgetting to mention the reduced GHG emissions from the substitution effect of BioCrude's Integrated MSW
    to Energy proposal from landfilling and/or incineration. This surplus in savings can be used for other municipal social and infrastructural
    programs.
8.
Employment opportunities
    are created during the EPC (Engineering, Procurement & Construction) phase of the project (a few hundred jobs) and for the day-to-day
    operations of the project (approximately 86 jobs per shift per 2,000 TPD Plant plus 11 persons for administration X 3 shifts per
    day, equating to a total quantum of a minimum of 269 persons).
9.
The
        proposed solution is an integrated MSW management system based on energy recovery that respects the norms of a Clean Design Mechanism
        ("CDM") inherent within the realms of article 12 of the Kyoto Protocol ("UNFCCC") or any future proposed
        legislation regarding same, and qualifies for Carbon Emissions Reduction Credits ("CER's").
Municipal
Solid Waste
All solid waste generated
in an area except industrial and agricultural wastes, typically from residences, commercial or retail establishments. Sometimes includes
construction and demolition debris and other special wastes that may enter the municipal waste stream. The EPA (1998c) defined municipal
solid waste as "a subset of solid waste and as durable goods (e.g., appliances, tires, and batteries), non-durable goods (e.g.,
newspapers, books, and magazines), containers and packaging, food wastes, yard trimmings, and miscellaneous organic wastes from residential,
commercial and industrial non-process sources.
The MSW can be classified
in the following categories:
a)
Organics
b)
Fuels
c)
Recyclables
d)
Inerts
e)
Miscellaneous
Each
category has its own distinct composite classification. To achieve an optimal Wast
e to Energy procurement,
one has to analyze separately the inherent category contributions to energy yield and its correlated technological process of extraction
in obtaining same in the most economical sense available; thus, the importance of segregating the MSW into the appropriate categories
of distinct feedstock is of principal importance for optimal performance in the appropriate technological processes.
In BioCrude's
MSW-Energy initiative, BioCrude Technologies USA, Inc. incorporated the following technologies in the Integrated Municipal Waste Processing
(Waste to Energy) Complex in order to optimize the treatment process in an environmentally friendly manner by whilst optimizing the Revenue
Model of same, and in turn, pass some of the savings back to the municipalities while still earning an impressive bottom line in juxtaposition
to what the competition has to offer with regards to landfilling and incineration:
1.
Separation of Waste Facility
    (Materials Recovery Facility)
2.
Refuse Derived Fuel ("RDF")
    Plant in order to handle the fuels of the MSW and produce Energy with an ash by-product
3.
Bio-Methanation Plant in
    order to handle the organic fraction of the MSW (OFMSW) to produce Energy with a fertilizer by-product
15
4.
Composting Facility (maximum
    50 TPD) in order to handle a percentage of the OFMSW alongside with the small particles (plastics, ceramics...) that could not be
    efficiently separated within the separation process of the MSW (fuels in the Bio Methanation plant (plug flow digester) inhibit the
    process). The economies are no longer apparent in Composting facilities surpassing the 50 TPD capacities.
5.
Power Plant
With BioCrude's
Integrated MSW to Energy proposal/initiative, BioCrude attempts to service each category of the MSW in order to optimally utilize all
renewable resources from same to procure renewable energy and marketable by-products (fertilizer, ash, etc.).
It is very important
to note that the Separation Process of the MSW into the appropriate feedstock categories for each distinct process (organics for biomethanation
(as well as for composting), and polymer based hydro-carbons and cellulose-based products for RDF process) is of the utmost importance.
Failure to do so can lead to complications and inevitable failure of each process in question. Evidence of Success and failure stories
(especially with biomethanation plants, whereby the feedstock generated from MSW (organic fraction) had traces of more than 10% of polymer
based products and/or inerts, thus inhibiting and/or limiting the viability of same) as can be found all over the world, and each outcome,
in essence, can be summarized by Plant Technology Implementation and Feedstock Preparation (do not mix up technology viability with technology
implementation and operation).
Nota Bene
:
With gasification and/or incineration (mass burn), MSW is dumped into the boiler "as is" and combusted at temperatures ranging
from 800 – 12000C (minimum; plasma arc gasification temperatures range from 7,000 – 10,0000C). All waste is burned yielding
an approximate net yield of energy for reuse (after self-consumption) of 30 – 40%. The organic fraction of the MSW (OFMSW) is burned,
whereby the fertilizer potential via a biomethanation process (cooking) is substituted for an ash from the gasification/incineration
process (es). Let us not even entertain what happens to the methane potential of same via gasification/incineration in lieu of biomethanation;
LOST! Bottom line, "
Potential Revenues
" lost and operational costs of gasification/incineration processes are increased
dramatically, up to the point where one must substitute more energy (fuel) in order to sustain continuity of operation and/or to substitute
the self-consumption energy requirements of the processes when the varying calorific value of a sample of the waste is deficient for
same. One can do their own sensitivity analysis to evaluate same and come to their own conclusions! BioCrude's Integrated MSW-Energy
Solution evolves from first principles of Science, Chemistry, Engineering, Economics and Common Sense!
The
Organics
portion of the MSW is treated via a
biomethanation
process, whereby all methane gas is extracted for the eventual realization
of renewable energy creation, and a fertilizer procured as an additional by-product, which can be marketed to the agricultural industry.
The
polymer-based
(hydro-carbon chain),
cellulose and textiles portion of the MSW will be treated via an
RDF
process (a derivative of gasification, but with the incorporation
of a Materials Recovery Facility (MRF) [Separation process], where we have the luxury of operating at lower temperatures (350 –
400
0
C) because of the separation of the MSW, i.e. lower temperatures reflects less operational self-consumption, hence more
outputs (energy) for resale), whereby the thermal combustion will generate renewable energy and the by-product of ash can be marketed
to the construction industry for the following purposes:
●
Concrete production, as a substitute material for Portland
cement and sand
●
Embankments and other structural fills (usually for road
construction)
●
Grout and Flowable fill production
●
Waste stabilization and solidification
●
Cement clinkers production - (as a substitute material
for clay)
●
Mine reclamation
●
Stabilization of soft soils
●
Road subbase construction
16
●
As Aggregate substitute material (e.g. for brick production)
●
Mineral filler in asphaltic concrete
●
Agricultural uses: soil amendment, fertilizer, cattle feeders,
soil stabilization in stock feed yards, and agricultural stakes
●
Loose application on rivers to melt ice
●
Loose application on roads and parking lots for ice control
●
Other applications include
cosmetics, toothpaste, kitchen counter tops, floor and ceiling tiles, bowling balls, flotation devices, stucco, utensils, tool handles,
picture frames, auto bodies and boat hulls, cellular concrete, geopolymers, roofing tiles, roofing granules, decking, fireplace mantles,
cinder block, PVC pipe, Structural Insulated Panels, house siding and trim, running tracks, blasting grit, recycled plastic lumber, utility
poles and cross arms, railway sleepers, highway sound barriers, marine pilings, doors, window frames, scaffolding, sign posts, crypts,
columns, railroad ties, vinyl flooring, paving stones, shower stalls, garage doors, park benches,
The fly ash can also
be marketed to the agricultural industry for the following purposes:
●
It improves permeability status
of soil
●
Improves fertility status of
soil (soil health) / crop yield
●
Improves soil texture
●
Reduces bulk density of soil
●
Improves water holding capacity
/ porosity
●
Optimizes pH value
●
Improves soil aeration and
reduces crust formation
●
Provides micro nutrients like
Fe, Zn, Cu, Mo, B, Mn, etc.
●
Provides macro nutrients like
K, P, Ca, Mg, S etc.
●
Works as a part substitute
of gypsum for reclamation of saline alkali soil and lime for reclamation of acidic soils
●
Surface cover of bio reclaimed
vegetated ash pond get stabilized and can be used as recreational park
●
Ash ponds provides suitable
conditions and essential nutrients for plant growth, helps improve the economic condition of local inhabitants
●
Works as a liming agent
●
Helps in early maturity of
crop & improves the nutritional quality of food crop
●
Reduces pest incidence
There
is a definite market for the fly ash by-
product; the industry players in the global market place
have to be clearly identified for the realization of commercialization. BioCrude can even offer this ash by-products pro-bono to the
industry or landfill, for there is no environmental hazard of same.
The recyclables can be easily sold to the
recyclable industry milieu (metals, glass, ceramics, etc.)
The balance of the
inerts (Construction and Demolition Debris, gravel, sand, bricks, etc.) can either be landfilled with no negative environmental impacts
or crushed and given to companies specializing in the fabrication of construction materials (if a market is identified, BioCrude can
offer them these by-products (crushed or uncrushed).
BioCrude's
Integrated MSW to Energy Complex for Municipal Applications
BioCrude's solution
of an Integrated Municipal Solid Waste to Energy complex is in line with the present trends in the Municipal Solid Waste ("MSW")
industry and the main advantage of same is that it is comprised of a Materials Recovery Facility ("MRF") and different modular
waste treatment processes (Composting, Bio-methanation and Refuse Derived Fuel ("RDF")) and a power station, in order to
treat the MSW and procure renewable energy and other marketable by-products (compost, ash and certain recyclables) with the added implication
of practically zero-landfill policy (less certain inerts which have zero negative environmental impact, if landfilled).
17
The material components
(modules) of an Integrated Municipal Solid Waste to Energy Complex are detailed as follows:
1.
Entrance to complex
:
    Kiosk and weighbridge (reception/departure and weighing of garbage trucks (pre-and-post deposit of MSW at the MSW Storage facility).
2.
MSW Storage facility
:
    Closed and properly ventilated warehouse facility for receiving and storing just in time (JIT) 3 days' inventory of MSW. MSW
    is moved from the storage facility and moved via machinery and conveyor belts to the Materials Recovery facility.
3.
Materials Recovery facility
    (MRF)
: a properly ventilated facility that houses different types of machinery/equipment (either procured from suppliers or built
    in-situ according to plan specifications) requisite for different facets of the separation process of the MSW into the distinct categories
    of the waste (organics, hydro-carbon polymer based, cellulose, inerts, miscellaneous (batteries, cadavers, etc.…)) and prepare
    same as the distinct feedstock for the different waste treatment processes (Composting, Biomethanation and Refuse Derived Fuel (RDF)),
    as well as separate the recyclables for resale and the inerts (elements of construction and demolition debris that are not recyclable)
    for landfilling or to be crushed and given/sold (negligible in nature in comparison to the revenue model established by the tipping
    fees, and resale of electricity and compost) to the secondary markets for the manufacturing of building materials.
4.
Composting facility
:
    A portion of the land concession will host a type of composting system (Windrow [with procured mechanical mixing machinery (trucks)
    like compost turners or tub/horizontal grinders] or Static Aerated Piles [aeration system such as installed perforated piping to
    ensure steady oxygen supply (forced air) for the microorganisms and to reduce moisture content]), depending on BioCrude's evaluation
    of the waste analysis. A fertilizer will be procured, dried and stored in a warehousing facility for by-products.
5.
Biomethanation facility
:
    Modular digesters are constructed in series and synchronized in operation in order to receive organics and process same to extract
    and capture the methane gas which will be piped to the Biogas – RDF power plant (will be combusted for the procurement of renewable
    energy) and in addition, yield a cured fertilizer which will be dried and stored in the warehousing facility for by-products.
6.
RDF facility
: A
    refuse derived fuel system (gasification derivative) will be procured and installed. The RDF facility will receive the hydro-carbon
    polymer and cellulose-based waste products that will be used to make RDF pellets (compressed and dried) that will be used as the
    feedstock for combustion within same to generate renewable energy within the Biogas – RDF power plant.
7.
RDF – Biogas power
    plant
: will be procured and installed within a certain section of the Complex with a dedicated Distributed Control System (DCS)
    for the MSW-Energy (RDF & Biogas based) power plant & fuel processing plant (controls & instrumentation for the boiler
    and turbine, instrumentation for the balance of the power plant and control room).
8.
Internal roads
:
    will be constructed within the complex for vehicle/truck transport/passage within the complex.
9.
Green Belt
: will
    be developed for aesthetic purposes and municipal environmental conformities.
18
Business Model
The Company's
business model is designed to create a profitable revenue stream through the direct acquisition of Concession Agreements from different
Governments for the implementation of BioCrude's integrated MSW-Energy Complexes. Our products, processes, and services, marketed
to the relevant target audience, enable us, to generate multiple revenue streams and consistent profitability derived from the high gross
profit inherent within the realms of our proprietary products, services and applications.
By acquiring the necessary
Concession (MSW, Land and Supply of Treated Effluent) and Power Purchase Agreements (PPA), from the respective governmental authorities
of a certain country, with Sovereign Guarantees (with right of subrogation), the Company will develop its Integrated Municipal Solid
Waste to Energy Complex, under "
BOOT"
(Build, Own, Operate & Transfer) basis.
The following contractual understandings
are the key prerequisite elements for establishing a mutual meeting of the minds, by and between BioCrude Technologies USA, Inc. and
the governmental authorities of a municipality/country, for the successful realization of BioCrude's MSW-Energy Complexes:
1.
MSW Concession
for
    the guaranteed delivery of MSW to the Complex with an implied base tipping fee per ton ("Put or Pay") with annual escalations
    for the term (30 years) of the project with an option of renewal for an additional term (30 years) and Sovereign Guarantees from
    the Minister of Finance endorsing same.
19
2.
Land Lease Concession
for the delivery of the required amount of land for project term (30 years), at an annual symbolic lease rate of $1/amount of
    land delivered/annum, with an option of renewal for an additional term (30 years).
3.
Supply of Treated Effluent
    Concession
whereby the governmental authorities will supply the necessary treated water in order to fulfill the operational requirements
    of the MSW to Energy complex at a negligible symbolic annual rate for the term of the project with an option of renewal for an additional
    term (30 years).
4.
Power Purchase Agreement
    (PPA)
[resale of procured electricity to the Power Corporation of the country in question], whereby the Power Corporation of
    a certain country will buy back the electricity produced by the MSW to Energy Complex at a base rate per kW-hr ("Take or Pay"),
    with annual escalations for the term (30 years) of the project with an option of renewal for an additional term (30 years) and Sovereign
    Guarantees from the Minister of Finance endorsing same.
5.
Assistance from the Appropriate
    Governmental Ministries and Municipalities in obtaining all necessary permits and clearances for the Construction and Operation of
    the MSW-Energy Complex (stipulations in contracts).
Nota Bene
:
Depending on country policy on foreign investment, the Company may request or be granted an exemption of taxes, levies, duties, and all
other relevant taxes applicable to the importation of all plant, materials, equipment and rolling stock for the Construction of the MSW-Energy
complex, from the appropriate Ministries, related thereto.
All the aforesaid Concession
agreements have to be granted at the same time in order for BioCrude to successfully realize the development (Engineering, Procurement
and Construction) and operation of the MSW to Energy complex (the "Sovereign Guarantees" and right of subrogation are critical
and paramount for the funding requirements of the MSW to Energy complex).
Target Market
The global Waste to
Energy segment of the waste management industry is the target market BioCrude addresses. Management is confident it will succeed in having
its integrated systems and processes widely implemented across Africa, Asia, the Balkans, the GULF and North America with a view to expanding
to other international markets (Latin America). The Company's first step in penetrating its target market has been taken with the
signing of Concession Agreements with the country of the Union of the Comoros (Autonomous Island of Grande Comore); signed January 11,
2016.
Strategies of the
Company
BioCrude's strategy
is designed to create a "PROFITABLE" revenue stream through the direct acquisition of Concession Agreements from different
Governments, for the implementation of BioCrude's integrated MSW-Energy Complexes, or through the establishment of unique and strategic
alliances via licensing arrangements and/or joint ventures within the industry milieu.
BioCrude has developed
what we believe is a highly effective marketing strategy, built on a proactive direct marketing campaign with Government, large corporate
facility management that target the sector for waste product treatment and reformation.
The Company believes that this will result
in a development of a marketing and distribution network with extensive coverage of the Company's target market at a minimal expense,
allowing the Company to reach profitability.
We believe that our marketing strategy will permit us to generate an extensive customer/end
user base; however, there can be no assurance that our estimate regarding acceptance of our products and services will be correct.
20
The Company's
long-term strategy is to create economically beneficial uses for waste streams through resource transformation solutions. Since the value
of marketable by-products (commodities; renewable energy, fertilizer, primary feedstock for building materials, etc.…), after
processing costs, is a significant and absolute amount, in juxtaposition to disposal options (ZERO), such as landfilling or incineration,
the Company believes this strategy is effective long-term. The Company believes that as carbon taxes or cap and trade systems are implemented
and the demand for commodities rises, economics will further favor this strategy. The Company is also focusing on lowering the cost of
resource transformation solutions by reducing its recycling processing operating costs, examining ways to mitigate commodity price fluctuations
(forward contracts for marketable by-products), and developing new processing technologies. These steps will help to build an effective
business model at lower commodity pricing levels.
The Company is focused
on four main areas to improve the performance of base operations and hence, increase cash flow generation. They are Pricing initiatives,
Cost controls and operating efficiencies, Integrated Waste to Energy development initiatives with long term Concession Agreements and,
Asset Management.
BioCrude has developed
a number of Lobbying (Sales/Solicitation) programs and the standardization of same. We believe that the pricing logic used in our fee
structures, with implied "
Put or Pay
" and "
Take or Pay
" provisions for the supply of feedstock
and resale of outputs (renewable energy), respectively, is not only reasonable, but competitive. We expect to continue to add valued
ameliorations to our structured fee-based pricing of products and services. The goal of our pricing program is to generate price increases
in excess of CPI, whilst being competitive in nature. BioCrude will derive revenues from a combination of commodity sales (Marketable
by-products – fertilizer and energy resale), carbon credits (CER's under the auspices of a "
Clean Development Mechanism
"
(CDM project)) and tipping (gate) and material processing fees. Fluctuations in commodity pricing are managed by a number of risk mitigation
strategies including: financial hedging instruments (transfer of foreign exchange risk), floor prices, forward sales contracts, and index
purchases. The goal is to optimize and stabilize the revenue stream, while still being competitive, net of cost of operations, and generate
consistent positive cash flows.
The Company continues
to search for the best continuous improvement practices and programs as solutions to then implement as part of its corporate governance.
The goals of these practices and programs are to enhance customer service, increase safety for employees, and to reduce operating and
administrative costs. The Company has implemented continuous improvement strategies, and as such, as of date, the Company has introduced
select operating efficiency initiatives in safety, productivity, maintenance, customer service, environmental compliance, and procurement.
Prior Activities of BioCrude Canada
Within certain countries,
if an entity wants to pursue certain specialized works, it is recommended that the entity establish a presence within same (establish
a corporation with a civic address). As an example, in 2009, this was done in Romania with the anticipation that BioCrude Canada would
be successful in acquiring the concession agreements from the governmental authorities of Romania. BioCrude was not successful in meeting
its objective in Romania for same and stopped its lobbying works for the pursuit of said engagement by and between the Governmental authorities
of Romania and BioCrude for the implementation of BioCrude's proposed MSW to Energy complex in Romania, closed its preliminary
office and the corporation became dormant.
Since July 2008, BioCrude
Canada has taken the initiative to market and promote its intellectual property and specialized technical expertise throughout the market
place, both nationally and globally (we have introduced our technology to Governments and major Conglomerates in the Waste to Energy
sector) in over 30 Countries worldwide, whereby BioCrude has successfully opened up dialogue with Governmental Authorities and respectable
corporations for near future contractual negotiations.
In December 2007, Jaipuria
Advanced Technologies, Inc. (http://www.jaipuria-group.com and http://www. smvjaipuria.com/waste.php) of India, and BioCrude Canada,
announced their formation of a new division dedicated to Waste Reformation and Energy Procurement for the purpose of pursuing contracts
in India. In many areas of the country, waste management and energy shortages are a serious problem. With Jaipuria's construction
and large project experience, and with the use of the intellectual property supplied by BioCrude in terms of waste management and production
of renewable energy, we have, in January, 2008, submitted a bid, in response to a tender for a Waste to Energy plant (2,000 TPD) in Okhla
and Tymarpur, India (we were not the selected candidate) and Indore, India (Collection and Treatment of municipal waste; 600 TPD; we
were not the selected candidate).
21
During this time, we
have also negotiated with "Pepsi Co India" to build a 50 TPD prototype in the city of Panipat, India, in a strategic joint
venture alliance. A few months later, Pepsi Co India's New President/CEO had a change of corporate venue and put aside the Waste
to Energy initiative. Ever since then, BioCrude Technologies, Inc. (Canada) decided not to pursue any more works in India.
The Company, through
its commercialization efforts, has established good relationships with governments and ministries in more than 70 countries in North
America, Latin America, Asia, Africa and Europe and received a positive reception when presented with its waste to energy solution for
their waste management dilemmas. This produced dozens of Letters of Interest, submitted to BioCrude, by different divisions of Governments
(federal/municipal) from different countries, worldwide.
2009
– 2021 -
Marketing and Commercialization
: BioCrude presented its waste to energy solution to governments and ministries
from USA, Canada and Mexico in North America, Costa Rica, Panama, Ecuador, Argentina, Peru, Brazil, Dominican Republic, Haiti, Colombia,
Venezuela, Guatemala, Honduras, Jamaica, El Salvador, Cuba, Uruguay, Bahamas and Trinidad & Tobago in Latin America, China, Hong
Kong, Mongolia, Kazakhstan, Vietnam, Indonesia, Philippines, India, Bangladesh, and Pakistan in Asia, Kingdom of Saudi Arabia, United
Arab Emirates, Kuwait, Qatar, Jordan, Oman, and Bahrain in the Middle East, Portugal, Luxembourg, Belgium, Hellenic Republic, Italy,
Malta, Corsica, Albania, Bulgaria, Romania, Serbia, FYROM (Macedonia), Spain, Montenegro, Kosovo, Belarus, Ukraine, Georgia, Latvia,
Armenia, amongst other countries, in Europe, Ivory Coast, Burkina Faso, Ghana, Togo, Senegal, Benin, Angola, Niger, Guinea, Mali, Uganda,
Burundi, Rwanda, Morocco, Tunisia, Algeria, Egypt, Libya, Kenya, Ethiopia, Democratic Republic of the Congo (Kinshasa), Republic of the
Congo (Brazzaville), amongst other countries in Africa.
Pricing initiatives
BioCrude has developed
several sales/solicitation programs and the standardization of the sales/solicitation process and standardized the sales/solicitation
process. We believe that the pricing logic used in our fee programs, with implied "
Put or Pay
" and "
Take
or Pay
" provisions for the supply of feedstock and resale of outputs (renewable energy), respectively, is reasonable and competitive.
We expect to continue to add to our fee-based pricing through additional administrative fees, recycling fees, late charges, and further
improvements to our existing fee structures. The goal of our pricing program is to generate price increases more than CPI. BioCrude will
derive revenues from a combination of commodity sales (Marketable by-products – fertilizer and energy resale), carbon credits (CER's
under the "
Clean Development Mechanism
" established pursuant to article 12 of the "
Kyoto Protocol
"
(CDM project)) and tipping fees paid for material processing. Fluctuations in commodity pricing are managed by a number of risk mitigation
strategies including: financial hedging instruments (transfer of foreign exchange risk), Sovereign Guarantees, floor prices, forward
sales contracts, index purchases, and tipping fees. The goal is to smooth revenue, net of cost of products purchased, and generate consistent
cash flows.
Cost controls and
operating efficiencies
The Company continues
to search for the best practices throughout the entire organization and then implements these solutions through standardized continuous
improvement programs. The goals of these programs are to enhance customer service, increase safety for employees, and to reduce operating
and administrative costs. The Company has implemented continuous improvement strategies and the introduction of select operating efficiency
initiatives in safety, productivity, maintenance, customer service, environmental compliance, and procurement.
Integrated Waste
to Energy development initiatives with long term Concession Agreements
BioCrude excels is
the reformation of MSW using its intrinsic intellectual property as well as its expertise in Integrated Waste to Energy Processing Complexes.
BioCrude has and will continue to invest time, effort and valuable resources in the pursuit of Governmental Concession (MSW, Land, Supply
of Treated Effluent and Power Purchase Agreements (PPA)) Agreements, for the duration of twenty-five to thirty years, for the implementation
of same. The essence of the Concession Agreements, not only guarantees the MSW and implied tipping fees, related thereto (with annual
indexing), but the resale of the marketable by-products (energy to grid via PPA) for the duration of the term, with Sovereign Guarantees.
Investments in Waste to Energy facilities position the Company well for the evolution of the industry from waste management to resource
management.
22
Company milestones
and plan of execution
During the past 10
years, BioCrude has developed a reputation in waste management, a result of R&D of Environmental Technologies (both process and product
based) whereby it has enhanced and optimized conventional technologies, augmented by its fungal technology that increases the rate of
decomposition of organics. This led to the development of efficient, cost-effective, and environmentally friendly products, processes
and systems for the reformation of waste material and the creation of renewable energy and marketable by-products.
BioCrude's MSW
to Energy initiative is, by definition, an "en suite" of waste management and energy procurement, whereby the latter is a
marketable byproduct derived from the intrinsic processes of the treatment of the MSW by procuring the necessary constituent feedstock
(primary material) to produce the renewable energy in the modular section for power generation of the Integrated MSW to Energy complex.
In order to realize an integral MSW to Energy complex, as defined in the "Business Model" of the registration statement,
all Concession Agreements (guarantee of MSW supply, Land and Supply of Treated Effluent) as well as a Power Purchase Agreement must be
contracted concurrently, for they are "ALL" necessary constituent elements for the development of an integrated MSW to Energy
complex i.e., you cannot have some or most of the agreements (Concessions/PPA) in place, but must have "ALL" in place, at
the same time, simply because of the nature of the project in question.
BioCrude's revenue
model is based on revenue generation from the following: i) the operation of MSW to Energy complexes (tipping fees, resale of renewable
energy, resale of other marketable by-products (compost, recyclables) and potential carbon credits, ii) Joint Venture license fees, whereby
the prospective Joint Venture partner will buy a license from BioCrude (payment to be effected immediately after signature) for their
participation in the consortium and will infuse its prorated share of equity capital for the potential MSW to Energy complex, and iii)
EPC ("Engineering, Procurement & Construction) management fees (general contracting fees, approximately 20% of the capital
cost of the project).
In order to realize
an integrated MSW to Energy complex, as defined in the "Business Model", all Concession Agreements (guarantee of MSW supply,
Land and Supply of Treated Effluent) as well as a Power Purchase Agreement must be contracted concurrently, for they are "ALL"
necessary constituent elements for the development of an integrated MSW to Energy complex.
In order to acquire
the concessions for Biocrude waste management (MSW to Energy), major lobbying must be done in all levels of government and ministries
(e.g., Biocrude's waste management project is an environmental project thus requiring the intervention of the Ministry of Environment,
renewable energy is procured, hence requiring the intervention of the Ministry of Energy/Power and Power Corporation (usually crown corporation),
the municipalities usually are responsible for the granting of the MSW, Land and Supply of Treated Effluent Concessions and the Ministry
of Finance is responsible for the signing of the Sovereign Guarantees, and in some instance, countries might have other intervening governmental
agencies).
BioCrude has positioned
itself, through its continual lobbying efforts (ongoing), for potential Joint Ventures (JV) with certain governments (countries/clients).
Should any of these Joint Ventures prove to be realized because of the persistent lobbying activities, not only will BioCrude be able
to realize the EPC management fee for the development of the MSW to Energy complex(es), but it will also receive its prorate share (50%)
of the revenue stream of the developed MSW to Energy complex(es), with similar time frame frequencies as mentioned above, as well as
a license fee (BioCrude already submitted offers) immediately following signature of the Joint Venture engagement and the Concession
and Power Purchase agreements. BioCrude anticipates, that if the prospective JV partner(s) take the initiative to implement (not only
entertain) a waste management solution for their country, but possible engagement can also be realized within 6 to 12 months following
that initiative (being cognizant of bureaucracy and red tape procedures of government).
23
As part of BioCrude's
marketing strategy, BioCrude invests time, effort and resources in order to prepare tailor made prefeasibility studies, presentations
& educational literature for municipalities worldwide, and sends corporate delegations to these places for presentation of same,
at no expense to these governmental institutions. This attribute of BioCrude's direct marketing campaign has proven to be very
successful. Governments worldwide were not only receptive, but appreciative of BioCrude's formal and professional address. These
efforts have given BioCrude a profound understanding of the challenges faced by governments at all levels in their dealings with waste
management issues.
A vote of confidence
has been bestowed to BioCrude by the governmental authorities of the Autonomous Island of Grande Comore on its proposed integrated waste
management solution for the Autonomous Island of Grande Comore through the awarding of the necessary Concession Agreements (delivery
of MSW, Land and Supply of Treated Effluent) for 30 years (with a renewal option of 30 years) with Sovereign Guarantees for the implementation
(design, build, finance and operate) of a 700 TPD Municipal Solid Waste to Energy Complex, in the city of Moroni, Autonomous Island of
Grande Comore, Union of the Comoros. Furthermore, a Power Purchase Agreement has been signed with the "Le Gestion de l'Eau
et de l'Électricité aux Comores (MA-MWE)" whereby same will buy back all procured renewable energy from the
MSW to Energy complex for the term of the Concessions (and renewal option).
BioCrude, subject to
its contractual engagement with the Government of the Autonomous Island of Grande Comore for the implementation of a 700 TPD MSW to Energy
complex in Moroni, Grande Comore, through the financing provisions of the MSW to Energy project, will earn the EPC management/general
contracting fee of approximately twenty percent (20%) of the capital cost of the MSW to Energy project (prorated over the duration of
the construction period), i.e., commencing within 6 to 8 months from these presences.
Nota Bene
:
For the Union of the Comoros, the Company is still awaiting documents from the Federal Governmental Authorities stating that the Federal
Government is the new Intervening Party to the Concession(s) agreements previously signed with the Governorate (province; autonomous
region) of Moroni, after the outcome of the Federal Referendum, whereby through same, contracting and economic powers are transferred
from the Governorate (Province) level to that of Federal level. The Referendum outcome favored the Federal Government over that of the
Governorate (Autonomous) Region of Moroni, i.e., authorizing documents are still pending.
BioCrude, as well,
is looking at approximately 24 to 26 months (development time frame for the realization of MSW to Energy complex) before it can start
generating absolute, guaranteed revenues from the operation of the MSW to Energy complex(es) (tipping fees/fees from the resale of marketable
by-products (compost, ash, primary feedstock for building materials (inerts), recyclables, etc.…), resale of renewable energy
and carbon emission reduction credits [CERs]), servicing the waste management needs of the Government of the Union of the Comoros, as
per the provisions and stipulations of the contractual engagements with the government (with implied sovereign guarantees), for a minimum
guaranteed term of 30 years (and an option for an additional 30 years).
BioCrude is evaluating
additional options for funding (capital markets, financial institutions, contracting companies, pension funds, etc.…amongst other
financially engineered hybrid scenarios thereof) and has already opened up dialogue regarding same. BioCrude has received a term sheet
for the funding of the MSW to Energy project for the Union of the Comoros, ergo, BioCrude will shortly be able to commence works for
ground breaking and start receiving its (Engineering, Procurement and Construction) EPC management fee as its first projected revenue
stream on a prorate schedule subject to a disbursement schedule in accordance to the terms and stipulations of the expected offer of
funding.
BioCrude, with confidence,
aims to be a leader in waste management, having set as its objective, the profitability inherent within the realms of the activities
issued of this sector, while building business relationships and social implications within the collectivity's/communities that
BioCrude is called upon to serve, beyond the environmental and social implications, and beyond the business imperatives.
BioCrude has adopted
a directive, as part of its corporate governance, to routinely undertake innovative strategic planning initiatives in order to design
and implement integrated solid waste systems that are responsive to dynamic demographic and industrial growth needs of municipalities.
Strategic planning starts with the formulation of long-term goals based on the local urban needs, followed by a medium and short-term
action plan to meet these goals. The strategy and action plans should identify a clear set of integrated actions, responsible parties
and needed human, physical and financial resources as part of the waste management solution.
24
BioCrude has not only
demonstrated its proven ability to open up dialogue and develop relationships with the various divisions of Governments worldwide (Administrative
and Technical) but has also developed confidence in same for potential and eventual engagement. BioCrude's Public Relations and
Business Development divisions have demonstrated their lobbying abilities as highly effective, efficient and productive in yielding results
and establishing goodwill for BioCrude.
At present, the provisioning
for waste treatment and "
green
" reformation of these products into renewable energy sources is regionalized and within
a given geographic region of operations, can be competitive. However, we believe that there are no other entities that provide turnkey
solutions targeted to all types and sizes of users. However, there are waste treatment providers that may elect to enter into this designated
market if our model is successful. We compete on the basis of engineering uniqueness, quality, cost-effectiveness and the increasingly
comprehensive and specialized nature of our services, along with the expertise, technology and professional support we offer. While we
believe that we will have a competitive cutting-edge advantage by being the most specialized in the market, there can be no assurance
that our assumptions regarding our competitive position will be proven correct.
We will require additional
capital to meet our liquidity needs. Currently, the Company has determined that its anticipated monthly cash flow needs should not exceed
$30,000 per month for twelve months following the filing date of these financial statements.
The Company's
projected capital needs and its projected increase in expenses are based upon the Company's projected acquisition of Municipal
Solid Waste, Land and Supply of Treated Effluent Concessions and Power Purchase Agreements ("PPA") per facility interests
over the coming twelve months; however, in the event that the full offering proceeds are not raised, the Company would acquire the Municipal
Solid Waste, Land and Supply of Treated Effluent Concessions and PPA per facility at a slower pace and/or focus its energies on the refinement
of existing properties to maximize their productivity. The Company's success does not depend on a scheduled acquisition and therefore
it has flexibility to scale back its expenses to meet actual sources of cash.
We anticipate that
we will receive sufficient proceeds from investors through this offering, to continue operations for at least the next twelve months;
however, there is no assurance that such proceeds will be received and there are no agreements or understandings currently in effect
from any potential investors. It is anticipated that the Company will receive increasing revenues from operations in the coming year;
however, since the Company has a short history of revenues, it is difficult to anticipate what those revenues might be, if any, and therefore,
management has assumed for planning purposes only that it may need to sell common stock, take loans or advances from officers, directors
or shareholders or enter into debt financing agreements in order to meet our cash needs over the coming twelve months. The Issuer has
no agreements or understandings for any of the above-listed financing options.
The Use of Proceeds
section includes a detailed description of the use of proceeds over the differing offering scenarios of 100%, 75%, 50% and 25%. As the
Company's expenses are relatively stable, not incorporating elements of severe force majeure, the Company believes it can fund
its present operations with projected revenues together with offering proceeds under any of the offering scenarios. The Company will
consider raising additional funds during 2022 through sales of equity, debt and convertible securities, if it is deemed necessary.
BioCrude Technologies
USA, Inc. has no intention in investing in short-term or long-term discretionary financial programs of any kind.
The Company's
belief is based on its business model, which in turn is based on assumptions, which may prove to be incorrect. As a result, the Company's
financial resources may not be sufficient to satisfy its capital requirements for this period, and may need to raise additional funds.
If additional funds are raised through the issuance of equity, equity-related or debt securities, such securities may have rights, preferences
or privileges senior to those of the rights of the common stock and the Company's shareholders may experience additional dilution.
Management cannot be certain that additional financing will be available on favorable terms, when required, if at all. If adequate funds
are not available or not available on acceptable terms, the Company may not be able to fund its expansion, promote its brand as desired,
take advantage of unanticipated acquisition opportunities, develop or further enhance and/or optimize its products and services or respond
to competitive pressures.
25
In order to commence
implementation of the business plan by executing the first set of acquired Concession agreements (with implied PPA) for the implementation
of a MSW to Energy complex for the Union of the Comoros , approximately $8 million is required (other engineered options of funding a
percentage of the equity in the form of debt for the facility, i.e. contractor funding for EPC and higher debt to equity ratios due to
Sovereign Guarantees, amongst other hybrid, financially engineered funding solutions, can reduce the amount required to raise). To continue
operations for the pursuit of the aforesaid milestones, a minimum of $1 million is required for the carrying capacity of same.
BioCrude's revenue
model is based on revenue generation from the following: i) the operation of the MSW to Energy complexes (tipping fees, resale of renewable
energy, resale of other marketable by-products (compost, recyclables) and potential carbon credits, ii) Joint Venture license fees, whereby
the prospective Joint Venture partner will buy a license from BioCrude (payment to be effected immediately after signature) for their
participation and will infuse its prorated share of equity capital for the potential MSW to Energy complex, and iii) EPC ("Engineering,
Procurement & Construction) management fees (general contracting fees, approximately 20% of the capital cost of the project). In
essence, these fees have to be paid regardless, and BioCrude management will execute and capture remuneration for same.
Hereunder is a schedule
of events (agenda) for the realization (full execution) of the MSW to Energy project in Moroni, Autonomous Island of Grande Comore (inclusive:
contract realization process), in order for BioCrude to start realizing revenues as an ongoing concern, not taking into account any prospective
joint ventures in the works.
Different facets
and schedule of events for the pursuit and realization of MSW to Energy projects (excluding lobbying activities)
Contract Conclusion,
Engineering, Procurement& Construction
A. Signature of
the following Accords necessary for the realization of the MSW-Energy Complex in Moroni, Autonomous Island of Grande Comore
1.
Deed of Assignment Agreement
("Protocol of Engagement") by and between the Government of the Autonomous Island of Grande Comore and BioCrude Technologies
USA, Inc. Contract was signed January 11, 2016.
2.
The signing of the Concession
Agreement for the Municipal Solid Waste, Land Lease Agreement and Agreement for the supply of treated Municipal Water on January 11,
2016
3.
The signing of the Power Purchase
Agreement (PPA) with the "Le Gestion de l'Eau et de l'Électricité aux Comores (MA-MWE)" [ Power
Corporation of the Autonomous Island of Grande Comore] on January 11, 2016
4.
Opening of a new Comorian Corporation
(in the country in question) totally owned by BioCrude Technologies USA, Inc., opening of bank account and execution of all party obligations
contained in the Deed of Assignment. This was done on January 12, 2016
5.
Reception of letter from new
governmental administration of the Autonomous Island of the Grande Comore (after elections on May 2016) reaffirming their initiative
and will to fully respect and execute the engagements signed on January 11, 2016; August 25, 2016
6.
Site selection (site Identification
and legal designation (Cadastral, Lot, etc. ...)) for the MSW-Energy Complex, preparation of legal documents to annex same to the Land
Lease Agreement and Assignment of selected parcel of land to BioCrude, as per the stipulations of the Land Concession agreement on November
12, 2016.
26
7.
Incorporating agreed to amendments
and/or modifications to the contractual engagements of January 11, 2016 into the new agreements replacing those of January 11, 2016:
December 9, 2016.
8.
Granting of a Treasury Guarantee
to BioCrude from the governmental administration of the Autonomous Island of the Grande Comore, as per the stipulations of the Concession
and Power Purchase Agreements: December 10, 2016
(Fully executed; timeline:
it
took approximately 8 months
)
B. Organizational Matrix: Construction,
Management, Operations and Maintenance of Project
1.
Flowchart of management staff
2.
Organization of the Waste
    Management (Collection, Transportation, Sorting and Treatment)
3.
Flowchart of Engineering, Procurement and Construction
4.
Flowchart of Operations Complex and Maintenance
5.
Flowchart for the influx of feedstock and the out flux
    (distribution) of by-products
(
Fully executed;
timeline:
The tasks identified above in B are part and parcel of the submitted preliminary proposal, which included the "
Prefeasibility
Study & Detailed Project Report
" and the "
Business Plan (with financial metrics)
", to the Governmental
Authorities of the Autonomous Island of Grande Comore (September 2015) for the realization of the Concession and Power Purchase Agreements
in accordance to the provisions of the Deed of Assignment pursuant to a Public-Private Partnership (PPP)).
C. Project implementation
plan for the Integrated Municipal Solid Waste t
o Energy Complex
1.
Opening of the office in
    Moroni, Autonomous Island of Grande Comore: expected completion date September 2023
2.
Recruitment and training
    of human resources in Moroni, Autonomous Island of Grande Comore (for engineering, management, operation and maintenance): expected
    completion date September 2023 (preliminary core)
3.
Recruitment of human resources
    in Canada (for key management positions): expected completion date September 2023
4.
Preliminary Engineering: completed in preliminary
    proposal (generic)
5.
Analysis of Municipal Solid Waste: expected completion
    date September 2023
6.
Study of the site and soil studies: expected completion
    date October 2023
7.
Detailed Engineering plans: expected completion
    date October 2023
8.
Detailed plan of the development strategy of the complex: expected
    completion date October 2023
9.
Hiring of project manager(s)
    and subcontractors (either through reference or through tender): expected completion date September 2023
27
10.
Recruitment of Material
    and Equipment specialist suppliers, via reputation in the marketplace or tender: expected completion date October 2023
(Timeline:
6
to 8 months from time = present)
D.
Human Resource List for Project Implementation
1.
Project management
3.
Structural Engineers
4.
Electrical Engineers
5.
Mechanical Engineers
6.
Environmental Engineers
7.
Geological Engineers
8.
Designers
9.
Architects
10.
Planners
11.
Buyers
12.
Supply Agents
13.
Cost Controllers
14.
Training Coach
(Timeline:
2
to 4 months from time = present
)
E.
Development and implementation of the EPC project guide (Engineering, Procurement and Construction)
1.
Program Implementation Plan (
Project Execution Plan
"
PEP
") Completed
2.
Preparation of studies and preliminary engineering
    plans Completed
3.
Preparation of studies and detailed engineering design 3
    months following task D
4.
Planning and timetable for the project (Gantt Chart) 3
    months following task D
5.
Obtaining permits and governmental
    approvals and clearances for the construction and operation of the complex 2 months following submission of detailed engineering
    plans to the related Governmental Agencies of the Union of the Comoros (timeline provision in agreements and signed off by the Governmental
    Authorities of the Union of the Comoros)
6.
Construction 10 to
    14 months following the execution of E.5. above incorporating a startup synchronization period of approximately 1 to 2 months
7.
Operation and Maintenance
    Complex NA for Development timeline
28
F.
Project Management and Control: Project Implementation Plan (PIP)
1.
A preliminary feasibility study and a detailed report
    of the complex Completed
2.
Strategic planning and economic analysis Completed
3.
The selection of the field Completed
4.
Preliminary engineering Completed
►
Economic analysis and project risks
►
The estimate of the total capital investment as well
    as operating and maintenance costs
►
The preliminary assessment of environmental impact
    and permitting requirements
►
The technology research, analysis and conceptualization
5.
Reliability analysis Completed
6.
The technology selection, project configuration and
    sizing Concurrently with task E.3. and its timeline
7.
The studies and engineering
    plans for the environmental permitting Concurrently with task E.3. and its timeline
8.
Research Techniques Concurrently with task C and
    its timeline
9.
The strategy and planning
    for the reduction of emissions of greenhouse gases (GHG) Concurrently with task C and its timeline
10.
The preparation of the
    Clean Design Mechanism documents for submission to the CDM program (literature and the detailed report for project compliance with
    the standards and requirements established by the UNFCCC) Concurrently with task C and its timeline
11.
Carbon capture and storage Concurrently
    with task C and its timeline
12.
The carbon credit analysis Concurrently
    with task C and its timeline
13.
Energy efficiency Concurrently
    with task C and its timeline
14.
The analysis of the applicable
    regulations Concurrently with task C and its timeline
15.
The economic and financial
    analysis (Business Plan) for the preparation of the application for funding Completed; we have already opened dialogue with
    an EPC firm for not only engaging same for the EPC works, but also financing same under the proviso of BioCrude subrogating its right
    to the Sovereign Guarantees; waiting for proforma proposal from EPC firm
16.
The selection for the companies
    to carry out the civil works, and procure materials and equipment required for the development of the project (initiate works) Completed;
    we have already opened dialogue with an EPC firm for not only engaging same for the EPC works, but also financing same under the
    proviso of BioCrude subrogating its right to the Sovereign Guarantees; awaiting proforma proposal from EPC firm
29
17.
The management and supervision of the project 10
    to 14 months; duration of EPC works
18.
The operation and maintenance of the MSW-Energy complex NA
    for Development timeline
19.
The invoice, receipt and payment collection NA
    for Development timeline
20.
Organization of briefings to the public NA for
    Development timeline
G.
Environmental Impacts Analysis
The
evaluation process:
1.
The assessment of critical
    elements used in the development of the project, emissions harmful to the environment, leaching into soil, drainage, etc.…
2.
Potential erosion, the
    effects of the use and release of public waters on the tributaries, the adjacent ecological systems to the site, etc.…
3.
The number of vehicles (trucks, cars, etc.…)
    and emissions of pollutants
4.
The energy used in the complex and cooling of various
    buildings
5.
Materials used for the manufacture of the floor
6.
Building materials used for roofs
7.
Management and treatment of municipal solid waste (MSW)
8.
The quality of water and air
9.
The negative environmental impacts and mitigation,
    thereof
10.
Analysis of existing site and the impact of adverse effects thereon,
    for the development of the MSW-Energy complex so as to minimize the impact thereof
11.
Effect of development on sensitive regional systems sent by either air or by ground water systems
(Fully executed;
timeline:
Part and parcel of the submitted preliminary proposal ("
Prefeasibility Study & Detailed Project Report
"
incorporating an "
Environmental Impact Analysis
") to the Governmental Authorities of the Autonomous Island of Grande
Comore for the realization of the Concession and Power Purchase Agreements in accordance to the provisions of the Deed of Assignment
pursuant to a Public-Private Partnership (PPP); the Environmental Impact Analysis was acceptable to the Governmental Authorities of the
Autonomous Island of Grande Comore, hence no caveats, provisions or stipulations related thereto are within the signed contractual agreements).
Planning and Timetable for the Project
The Summary forecast for the following tasks
of the project planning encompasses a timeline of 6 to 8 months:
►
Analysis of the composition and characteristics of
    municipal solid waste,
►
Study and preparation of plans for the preliminary
    engineering,
►
Study and preparation of detailed plans of Engineering.
30
The Summary forecast
for the Construction & synchronization of different modules in the MSW to Energy complex of the project planning encompasses a timeline
of 16 to 18 months (incorporating approximately 4 months for project preparation for groundbreaking ceremony).
Material Agreements
We have filed (with
SEC as part of the Company's S-1(/A) registration statement(s)) our Material Agreements (the Deed of Assignment pursuant to a Public-Private
Partnership (PPP), the Power Purchase Agreement (PPA), and MSW, Land and Supply of Treated Effluent Concession Agreements), with SEC
as part of the Company's S-1(/A) registration statement(s), respectively by and between the Governmental Authorities of the Grande
Comore and BioCrude.
January 2016 –
Concluded Engagements
: signed Deed of Assignment pursuant to a Public-Private Partnership (PPP), MSW, Land and Supply of Treated
Effluent Concession Agreements and a Power Purchase Agreement (PPA), by and between the Government of the Autonomous Island of Grande
Comore and BioCrude Technologies USA, Inc., for the implementation of the first Waste to Energy complex in the m
unicipality
of Moroni, which are as follows:
►
Deed
    of Assignment pursuant to a Public-Private Partnership (PPP):
exclusively assigning the rights of waste management treatment
    to BioCrude via the inter-related specific concession vehicles, all defining protocol and mode of engagement as well as rights, interests,
    and obligations of each engaging entity for the term of engagement (30 years) with an option of renewal for an additional term (30
    years). Contract was signed January 11, 2016 and amended on December 9, 2016.
►
MSW Concession*
for the
    guaranteed delivery of MSW to the Complex with an implied base tipping fee per ton of MSW ("
Put or Pay
" for the
    minimum MSW guarantee of 700 TPD) with annual escalations for the term (30 years) of the project with an option of renewal for an
    additional term (30 years) and Sovereign Guarantees from the Minister of Finance endorsing same. Contract was signed January 11,
    2016 and amended on December 9, 2016.
►
Land Lease Concession
for the delivery of the required amount of land for project term (30 years), at an annual symbolic lease rate of $1/amount of land
    delivered/annum, with an option of renewal for an additional term (30 years). Contract was signed January 11, 2016, and amended on
    December 9, 2016.
►
Supply of Treated Effluent
    Concession
whereby the governmental authorities will supply the necessary treated water to fulfill the operational requirements
    of the MSW to Energy complex at a negligible symbolic annual rate for the term of the project with an option of renewal for an additional
    term (30 years). Contract was signed January 11, 2016, and amended on December 9, 2016.
►
Power Purchase Agreement (PPA)*
[resale of procured electricity to the Power Corporation of the country in question], whereby the Power Corporation of a certain
    country will buy back the electricity produced by the MSW to Energy Complex at a base rate per kW-hr ("
Take or Pay
"
    for all of the renewable energy procured less the self-consumption needs of the MSW-Energy complex), with annual escalations for
    the term (30 years) of the project with an option of renewal for an additional term (30 years) and Sovereign Guarantees from the
    Minister of Finance endorsing same. Contract was signed January 11, 2016, and amended on December 9, 2016.
*
A
Revolving Letter of Credit (RLC)
, replenished quarte
rly (for the duration of the term of the
contractual engagements) will be issued by the Governmental Authorities of the Autonomous Island of the Grande Comore (a temporary Treasury
bond has been issued to BioCrude on December 10, 2016, which will be replaced by the RLC), as per the provisions and stipulations of
the contractual engagements (submitted to the SEC), as a default payment mechanism guarantee, in the event of nonpayment of the tipping
fees or for the purchase of the renewable energy, which can immediately, after default, be drawn upon, to remedy default. The face value
of the RLC is to cover the tipping fees and resale of electricity payments for a whole year, multiplied by a factor of 1.5.
31
* On July 27, 2017,
the Governmental Authorities of the Autonomous Island of the Grande Comore have issued to BioCrude a "
Treasury Bond
",
with supporting literature (indenture, resolutions, etc.…; as filed with SEC as part of the Company's S-1(/A) registration
statement(s), as well as other in other Form filings) baring a face value of twenty million United States Dollars (20,000,000 USD), in
lieu of a "Revolving Letter of Credit (RLC)", replenished quarterly (for the duration of the term of the contractual engagements),
as per the provisions and stipulations of the contractual engagements (Concessions and Power Purchase Agreements). This Treasury Bond
serves as a default payment mechanism guarantee, in the event of nonpayment of the Governmental Authorities of the Autonomous Island
of the Grande Comore's financial contractual obligations (tipping fees and/or fees due for the purchase of the renewable energy),
which same can immediately, after default, be executed upon by BioCrude, to remedy default.
Nota Bene
:
The parties (the Governmental Authorities of the Grande Comore and BioCrude), following discussions, agreed to enforce amendments discussed
and reflect same within the agreements and agreed to sign these new agreements, as amended, on December 9, 2016, replacing all of the
agreements signed on the 11
th
of January 2016. The principal points of amendment were to incorporate the identified land concession,
which was assigned to BioCrude, by governmental decree, on November 12, 2016 and to reflect the new governmental administration that
was elected into office as the representatives for the Governmental divisions of the Grande Comore that engaged with BioCrude.
For the Union of the
Comoros, the Company is still awaiting documents from the Federal Governmental Authorities stating that the Federal Government is the
new Intervening Party to the Concession(s) agreements previously signed with the Governorate (province; autonomous region) of Moroni,
after the outcome of the Federal Referendum, whereby through same, contracting, and economic powers are transferred from the Governorate
(Province) level to that of Federal level. The Referendum outcome favored the Federal Government over that of the Governorate (Autonomous)
Region of Moroni, i.e., authorizing documents are still pending.
Nota Bene
:
The following contractual attributes are intrinsic to the aforesaid contractual (Concessions) agreements:
►
Contracts are backed
    by Government Sovereign Guarantees
►
Law and Jurisdiction
    of Dispute Arbitration (Canada)
►
Law of Contract execution
    immunized against change of law with Grandfather clause
►
Government issuance
    of (USD 20 Million) Treasury Bond; covers any interim financial defaults – replenished quarterly
►
Government payments
    are in US dollars (foreign exchange rate risk eliminated)
►
Zero Income Taxes, VAT's
    and no levies & duties of imported materials, equipment, rolling stock, etc.… for duration of contract (30 years)
►
Assignment of contracts/change
    of control clauses benefiting BioCrude (to its discretion)
►
Land Lease Concession:
    Symbolic $1 US per 25 hectares per year, for 30 years (term), and for additional 30-year renewal term (no escalations / changes)
►
Supply of Effluent Concession:
    Symbolic $1 US per 7,000 kL of Effluent (water) per day, for 30 years (term), and for additional 30-year renewal term (no escalations
    / changes)
►
Supply of primary feedstock
    (waste): 700 tons per day not only at zero cost, but at either a "gate fee" [government pays BioCrude this tipping fee]
►
Government buys back
    all procured renewable energy (net of self-consumption of complex) via a Power Purchase Agreement for the duration of the 30-year
    term and renewal option thereof
32
►
BioCrude is beneficiary
    of all Certified Emissions Reduction Credits (CERs) due to the MSW to Energy project
►
BioCrude's
        management and its Joint-Venture Partner, China Machinery Industry Construction Group Inc. (SINOCONST), have BONIFIDE credentials
        to execute the Engineering, Procurement, and Construction ("EPC") of the MSW to Energy project, as well as the management
        of the operations to same*
Status of Corporate
Works (Milestone dates)
* On April 4th, 2017,
China Machinery Industry Construction Group Inc.'s (SINOCONST) and BioCrude Technologies, Inc. have signed a strategic Partnership
(JV) Agreement which embodies the understood exclusive engagement by and between the participants of the JV Consortium (SINOCONST and
BioCrude) for any present and future Waste to Energy Project(s) acquired by any party worldwide. SINOCONST will be responsible for the
EPC works (for the development of the Project(s) [Design and Build]) as well as securing the financing for the Project(s), while BioCrude
will be the operator (Operation and management).
China Machinery Industry
Construction Group Inc. (SINOCONST), is one of the earliest large state-owned construction enterprises in China, having Class A general
construction contracting certification and Class A design certification approved by the Ministry of Housing and Urban-Rural Development,
and having AAA credit standing and foreign trade license granted by the Ministry of Commerce. SINOCONST has passed the certification
of ISO9001 Quality Management System, ISO14001 Environmental Management System and GB/T 28001 Occupational Health and Safety Management
System. Presently, SINOCONST has 15 wholly owned subsidiaries, 4 Business Division divisions, 19 branch companies, 8 joint-stock companies
and 1National Exemplary Technician Institute. It boasts more than 10,000 employees, including 3,000 various engineers.
During the past 60
years since its establishment, SINOCONST has successively undertaken hundreds of large and medium key projects involving different sectors,
such as machinery, automobile, building materials, metallurgy, electric power, chemical, petroleum, electronics, light industry, broadcasting
& TV, environmental protection, municipal, public and civil buildings etc., with projects performed throughout the country. SINOCONST
has made great contribution to China's industrial development and modernization.
SINOCONST will be responsible
for the EPC works (for the development of the Project(s) [Design and Build]) as well as securing the financing for the Project(s), while
BioCrude will be the operator (Operation and management). Both SINOCONST and BioCrude will engage with SPV's/SPE's, with
Contract (Project) Agreements and Operation and management Agreements.
As a caveat for securitizing
payment of the contract price for Engineering, Procurement and Construction ("EPC") works, via the financing mechanism established
by SINOCONST, JV Consortium will set up "Special Purpose Vehicle's/Entity's" ("SPV/SPE") for each
and every acquired Project. The JV Consortium's mission and ethos for creating an SPV/SPE of each well-defined Project is to enable
direct securitization of financially engineered loans (and other receivables) against direct assets. SINOCONST's association (equity
participation) into every SPV/SPE will be provisional, in a sense where same will have a certain stake in the shareholdings (Common Stock)
of the SPV/SPE (as defined in the Capital Structure of the SPV/SPE, as referenced below and in the Memorandum and Articles of Association
of same, refer to Annex I), until such time that the loans vested for the development (Design, Building of Project by SINOCONST) of the
Project are fully paid back by the JV Consortium from the proceeds of the receivables (for services rendered to client by the Project
(SPV/SPE)), and all shares of Common Stock held by SINOCONST are transferred (sold to BioCrude for Project loan(s) repayment, only) to
BioCrude as full and final settlement for the loan (that paid for the contract price of said development to SINOCONST). As part and parcel
to the securitization of the loans in the SPV/SPE, BioCrude shall assign and/or subrogate its rights to its assets of that distinct Project
(Concessions and Power Purchase Agreements, Sovereign Guarantees, Revenues of Operation, etc.…) to the SPV/SPE ("JV Consortium"),
and same shall be subject to Charges (Mortgage, privilege, etc..) for financing (funding), only.
33
On April 4, 2017, SINOCONST
and BioCrude have commissioned the services of B & W INT'L SECRETARY LIMITED (Honk Kong, China) [law firm] to establish an
SPV/SPE, "
BioCrude Technologies, (Hong Kong) Limited
" [JV Corporation], as the development vehicle for the MSW to
Energy project for the Autonomous Island of the Grande Comore, Union of the Comoros (BioCrude Technologies, (Hong Kong) Limited; filed
as an exhibit with the SEC). The "SPV/SPE" possesses the following characteristics:
1.
Memorandum and Articles
    of Association
: "The Companies Ordinance (Cap. 622) [Hong Kong, China]" for "Private Company Limited by Shares"
    is utilized as the base Memorandum and Articles of Association and enhanced / modified as per the terms, conditions and stipulations
    of the JV Agreement by and between SINOCONST and BioCrude ("
Memorandum and Articles of Association
"; filed as
    an exhibit with the SEC).
2.
Organization and Capital
    Structure
: as per the stipulations of the Memorandum and Articles of Association, and modified to reflect the following, as well:
BioCrude will
account for seventy percent (70.0%) of the total issued and outstanding shares of Common Stock at an issue price of 1 HKD per share for
an aggregate issue price of 700 HKD, and at Closing Date;
SINOCONST
will account for thirty per cent (30.0%) of the total issued and outstanding shares of Common Stock, at an issue price of 1 HKD per share
for an aggregate issue price of 300 HKD, and at Closing Date and issued only once financing (funding) for the Project has been put in
place, and will be holder of same until such time that financing (funding) has been paid back, in full, whereby all shares of Common
Stock will have been transferred to BioCrude, as full and final settlement for loan repayment and shares of Common Stock acquisition.
Nota
Bene
: The financing (funding) secured by SINOCONST for the Project and accepted by the JV Consortium will bare an amortization
of approximately five (5) years, with a negotiated mechanism for the repayment schedule of principal and interest. Every year end (from
the beginning of operations of the Project, i.e., after project completion in accordance to the terms, conditions and stipulations of
SINOCONST's engagement (Contract (Project) Agreement) with SPV/SPE), relative to the amount of capital paid down from the original
outstanding loan on that year, a pro rata amount of shares of Common Stock will be given (transferred) back to BioCrude in that year,
until the full repayment of the loan, whereby the balance of the shares of Common Stock outstanding as shareholdings of SINOCONST are
transferred back to BioCrude, and BioCrude is one hundred per cent (100.0%) shareholder of all of the issued and outstanding shares of
Common Stock.
3.
Management (Board of
    Directors, Officers)
: as per the stipulations of the Articles of Association, modified to reflect the terms, provisions and stipulations
    of the JV Agreement by and between BioCrude and SINOCONST.
On April 4th, 2017,
SINOCONST's General Manager of the Group Business Development Department, Mr. Zhou Tao, and BioCrude Technologies (Comoros), LTD.
[Hong Kong SPV established by SINOCONST and BioCrude, as a JV Partnership], Chairman and CEO, Mr. John Moukas, have signed a Construction
(EPC) Contract Agreement which embodies SPV's engagement of SINONST to Design, Construct, and Finance BioCrude's Municipal
Solid Waste (MSW) to Energy Complex in the municipality of Moroni, Autonomous Island of the Grande Comore, Union of the Comoros, to treat
MSW and procure renewable energy and other marketable by-products (organic fertilizer, ash, primary feedstock for building materials,
etc.…) within the conforms of BioCrude's acquired Concession and Power Purchase Agreements, as well as BioCrude's
Deed of Assignment pursuant to a Public-Private Partnership with the Governmental Authorities of the Autonomous Island of Grande Comore,
Union of the Comoros.
34
On September 1, 2017,
BioCrude, in joint with SINOCONST ("JV Consortium"), have had a work session (in Beijing, China) with China Export and Credit
Insurance Corporation ("SINOSURE"), to clarify particulars regarding BioCrude's Municipal Solid Waste (MSW) to Energy
Complex ("Project") in the municipality of Moroni, Autonomous Island of the Grande Comore, Union of the Comoros, more particularly,
the Concessions and Power Purchase Agreements and the Deed of Assignment pursuant to a Public – Private Partnership. Thereafter,
BioCrude and SINOCONST, on behalf of BioCrude Technologies, (Hong Kong) Ltd ("SPV/SPE"), have submitted an application to
SINOSURE requesting loan insurance for the Project. As part and parcel to the loan insurance application, an independent third-party
feasibility study for the Project was requested. The JV Consortium has taken the initiative to solicit same for the execution of the
required works.
On September 5, 2017,
JV Consortium, on behalf of SPV/SPE, had a work session (in Beijing, China) with the Industrial and Commercial Bank of China Limited
("ICBC"), and shortly therewith, submitted to same, an application for funding for BioCrude's Project. We are awaiting
feedback regarding the indicative terms and conditions ("term sheet") for the Project funding.
On October 5, 2017,
BioCrude received from ICBC, the indicative terms and conditions ("term sheet") for the Project funding (term of validity
was six months). On April 8, 2018, BioCrude received from ICBC, a renewal of the "term sheet", extending the term of validity
for another six months.
In January 2018, BioCrude,
in joint with SINOCONST ("JV Consortium"), have commissioned out the works related to the feasibility study of the Municipal
Solid Waste (MSW) to Energy Complex ("Project") in the municipality of Moroni, Autonomous Island of the Grande Comore, Union
of the Comoros, to China International Electronic Commerce Center ("CIECC"), an independent engineering firm in China, acceptable
to SINOSURE's shortlist of accredited and acceptable suppliers for same.
On January 23, 2018,
BioCrude, in joint with SINOCONST ("JV Consortium"), had a work session (in Beijing, China) with CIECC. CIECC had requested
that all of BioCrude's literature be translated into mandarin (translation was concluded by March 30, 2018); the status of the
final report of the feasibility study for the project, as of these presences, is on hold due (awaiting feedback from the federal government
of Union of the Comoros).
On April 29, 2018,
Comoros's President Sem Azali Assoumani declared that a referendum on amending the country's Constitution would be held in
July 2018. The results of the referendum were in favor of changing the constitution, and one of the issues of address was federal consolidation
of powers, and as such, the Federal Government of the Union of the Comoros, would now be the new Intervening Party to the Concessions
and Power Purchase Agreements, as well as the Deed of Assignment pursuant to a Public-Private Partnership (PPP), in lieu of the Governorate
of the Autonomous Island of Grande Comore.
In the months of September
and November 2018, BioCrude sent a delegation to the Union of the Comoros in order to clarify and document the transition of the Federal
Government's intervention, and as such, the Federal Government of the Union of the Comoros has yet to issue to BioCrude the following
Amending Declarations:
1.
Amending Declaration to
    the Concessions and Power Purchase Agreements, as well as the Deed of Assignment pursuant to a Public-Private Partnership (PPP),
    by the Ministry of Finance, Economy, Budget, Investment and Foreign Trade of the Union of the Comoros, whereby they Federal Government
    of the Union of the Comoros acknowledges same, as well as declare that the Federal Government of the Union of the Comoros is the
    new intervening party to contracts, more particularly, with respect to honoring all of the Government's obligations within
    the signed engagements with BioCrude, as well as the Sovereign Guarantees attached to same.
2.
Amending Declaration to
    the Concessions and Power Purchase Agreements, as well as the Deed of Assignment pursuant to a Public-Private Partnership (PPP),
    by the Ministry of Production, Environment, Energy, Industry and Crafts of the Union of the Comoros, whereby the Federal Government
    of the Union of the Comoros acknowledges same, as well as declare that the Federal Government of the Union of the Comoros is the
    new intervening party to contracts, more particularly, with respect to honoring all of the Government's obligations with the
    issuance of all necessary permits, and clearances for the development of BioCrude's Waste to Energy project in Moroni, Grande
    Comore, Union of the Comoros.
35
BioCrude
also requested from the Federal Government of the Union of the Comoros' legal division, a legal opinion of the Concessions and
Power Purchase Agreements, as well as the Deed of Assignment pursuant to a Public-Private Partnership (PPP), incorporating the change
of the Contracting/Intervening Party. The Federal Government of the Union of the Comoros' legal division has yet to issue same.
As of these presences,
BioCrude has yet to receive the amending declarations, and legal opinion from the Federal Government of the Union of the Comoros, as
well as a signing date for the aforementioned expansion of works of waste treatment for the Governorates of Moheli and Anjouan, and for
the Waste Collection, and Street and Public Spaces Cleaning for the whole country of the Union of the Comoros (Autonomous Islands of
Grande Comore, Moheli and Anjouan).
Going Concern
The future of the Company
is dependent upon its ability to obtain financing and upon future profitable operations. Management has plans to seek additional capital
through private placements and a public offering of its common stock, if necessary. Although, historically, the Company had continuous
losses and negative working capital issues, there are doubts about the Company's ability to continue as a going concern.
The Company's
ability to become a profitable operating company is dependent upon its ability to generate revenues and/or obtain financing adequate
to fulfill our requirements to complete evaluations of Concession acquisitions and development of same opportunities and to achieve a
level of revenues adequate to support our cost structure has raised substantial doubts about our ability to continue as a going concern.
We plan to attempt to raise additional equity capital by selling shares in this offering and, if necessary, through one or more private
placement or public offerings. However, the doubts raised, relating to our ability to continue as a going concern, may make our shares
as an unattractive investment for potential investors. These factors, among others, may make it difficult to raise any additional capital.
Plan of Operation
With the signing of
the Concession Agreements with the countries of the Union of the Comoro, the Company, during the next twelve months, will be able to
aggressively implement the building of its corporate infrastructure by adding a few key senior managers to oversee the control of the
management of the Complexes and the general management of the Company. In addition, technical staff experienced in the management of
the Engineering, Procurement, and Construction ("EPC") activities, a key component in the controlling the successful creation
of a Complex, will also be hired. The anticipated cost for accomplishing this is approximately twenty million United States dollars (20,000,000
USD), which includes the provisions for infrastructure development of the Company (construction, fixed assets and equipment procurement),
human resource staffing and working capital. The anticipation of raising funds through a common share offering will further allow the
Company to comfortably expand operations (with enhanced Research and Development), in sync, with the essence of BioCrude's mission,
as elaborated within these presents.
The crucial factor
to the financial success is the rapid successful signing of additional concession agreements. Each such agreement requires an immediate
investment in the capital stock of the legal entity created for the purpose of building and subsequently operating the Complex. Additional
investments in the capital stock of each Complex totaling ten percent (10%) of the capital expenditure for a given complex must be made
in conjunction with the securing of long-term debt provided by financial institutions (made possible by the sovereign guarantees included
in the Concession Agreements). The legal entities created for the Complexes in a given country take a wholly owned subsidiary of a joint
venture owned fifty per cent (50%) each by the Company and the local government providing the sovereign guarantee. The Company anticipates
the creation of a total of eight (8) subsidiaries and two (2) joint ventures requiring a total of approximately $46 million (note: each
joint venture entity requires the upfront payment of a licensing fee on the part of the Company's joint venture partner, partially
offsetting the Company's investment in the Complex and providing a portion of the funds required to operate the Company and make
further investments in additional Complexes).
36
Asset Management
BioCrude's capital
strategy will be focused in two main areas:
●
Implementing operating
    programs that improve capital efficiency and asset utilization; and
●
Pursuing selective strategic
    investment opportunities in waste transformation and resource optimization.
BioCrude seeks to selectively
invest growth capital in high-return opportunities that will enhance its ability to support emerging customer and market needs in waste
transformation and resource optimization. The investment strategy seeks to leverage core competencies in materials processing to create
additional value from the waste stream.
Revenue Streams
The Company has identified
five (5) main revenue streams. Revenues derived from each Complex (Plant Operating Revenue) are the largest and most secure as this relies
on the long-term Concession Agreements.
Plant Operating Revenues
This revenue stream
is comprised of the following four (4) elements;
Tipping Fees
In exchange for the
provided environmental services, municipalities have to pay a tipping fee per ton of waste delivered by the city to the MSW-Energy Complexes
("
Tipping Fees
") based on the long-term Concession Agreement on a "
Put or Pay
" (for full face value)
basis.
Sales of Power
In the W2E plant, the
waste is processed in RDF (Refuse Derived Fuel) and Biomethanation processes to yield marketable by-products. The RDF and the biogas
are used for power generation. The power is sold to the grid based on a long-term contract (Power Purchase Agreement) on a "
Take
or Pay
" (for full face value) basis.
Sales of Carbon
Credits
The carbon credits
gained by reducing the green gas emission and by producing power based on renewable energy ("
Clean Design Mechanism
"
(CDM)) are sold on the carbon credit market.
Sales of By-Products
The by-products of
recycled materials and fertilizer will be marketed and sold to third parties:
►
Compost will be sold to
    the farming industry (which, in certain instances, is subsidized by the government), at spot market prices, less 15%. BioCrude may
    sell any excess product outside of the municipality and/or country.
►
Ash can be sold to resellers
    of construction materials.
►
Processed inerts (primary
    feedstock for building materials) can be sold to entities (local and foreign) engaged in that processing milieu.
►
Recyclables can be sold
    to entities (local and foreign) engaged in that processing milieu.
In the unlikely event
MSW feedstock is not delivered to the Complex, the MSW Agreement ensures that BioCrude is compensated for any shortfall in revenue derived
from the sale of electricity and by-products of Compost, ash and recyclables produced by the complex.
37
Engineering,
Procurement and Construction Fees
To ensure that the
planned benefits contained in the design of each Complex is realized BioCrude undertakes to supervise the entire EPC process and is compensated
accordingly, adhering to industry norms for such expertise.
Servicing Fees
Once the Complex is
commercially operational, BioCrude is responsible for the ongoing operation and maintenance of the related facilities. The Company is
compensated for supervising this activity in accordance with the terms of the contracts agreed to and signed prior to the commissioning
of each Complex.
Licensing Fees
To accelerate the proliferation
of the Company's presence in the W2E market and at the same time reduce the demand on its cash resources, BioCrude is willing to
license its technology, to selected third parties in the form of joint ventures, resulting in another potential source of revenue.
Results of Operations
For the six months
period ended June 30, 2022, and 2021
Revenue
We did not generate
revenue during the six months period ended June 30, 2022, and 2021.
Costs and Expenses
During the six months
period ended June 30, 2022, there were $67,574 of operating expenses consisting of general and administrative expenses compare to $314,853
of operating expenses for the same period in 2021.
Liquidity and
Capital Resources
As at June 30, 2022,
the Company had $567 in cash and did not have any other cash equivalents. The following table provides detailed information about our
net cash flow for the six months period ended June 30, 2022, and 2021. To date, we have financed our operations through the issuance
of stock and borrowings.
In
summary, our cash flows were as follows:
For
    the six months period ended   June 30,
2022
For
    the six months period ended   June 30,
2021
Net cash used in operating activities
$
(66,211
)
$
(236,724
)
Net cash used in investing activities
—
—
Net cash provided by financing activities
65,000
207,165
Effect of exchange rate changes on cash
—
—
Net increase (decrease) in Cash
(1,211
)
(29,559
)
Cash, beginning of period
1,778
109,971
Cash, end of period
$
567
$
80,412
Due to the limited
nature of the Company's operations to date, the Company does not believe that past performance is any indication of future performance.
The impact on the Company's revenues of recognized trends and uncertainties in our market will not be recognized until such time
as the Company has had sufficient operations to provide a baseline.
38
Operating activities
During the six months
period ended June 30, 2022, there were $67,574 of operating expenses consisting of general and administrative expenses compare to $314,853
of operating expenses for the same period in 2021. The lower operating expenses during the six months ended June 30, 2021, mainly attributed
to 120,000 stocks issued for service during the six months ended June 30, 2021.
Investing activities
Net cash used in investing
activities were $Nil for the six months period ended June 30, 2022, and 2021, respectively.
Financing activities
Net cash provided by
financing activities was $65,000 and $207,165 for the six months ended June 30, 2022, and 2021, respectively.
Since inception, we
have financed our cash flow requirements through issuance of common stock and related party advances. As we expand our activities, we
may, and most likely will, continue to experience net negative cash flows from operations, pending receipt of listings or some form of
advertising revenues. Additionally, we anticipate obtaining additional financing to fund operations through common stock offerings, to
the extent available, or to obtain additional financing to the extent necessary to augment our working capital. In the future we need
to generate sufficient revenues from sales to eliminate or reduce the need to sell additional stock or obtain additional loans. There
can be no assurance we will be successful in raising the necessary funds to execute our business plan.
We anticipate that
we will incur operating losses in the next twelve months. Our lack of operating history makes predictions of future operating results
difficult to ascertain. Our prospects must be considered in light of the risks, expenses and difficulties frequently encountered by companies
in their early stage of development, particularly companies in new and rapidly evolving markets. Such risks for us include, but are not
limited to, an evolving and unpredictable business model and the management of growth.
To address these risks,
we must, among other things, obtain a customer base, implement, and successfully execute our business and marketing strategy, continually
develop and upgrade our website, respond to competitive developments, and attract, retain and motivate qualified personnel. There can
be no assurance that we will be successful in addressing such risks, and the failure to do so can have a material adverse effect on our
business prospects, financial condition and results of operations.
Off-Balance Sheet
Arrangements
We do not have any
off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on our financial condition, changes
in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material
to investors.
Critical Accounting
Policies
The methods, estimates
and judgments we use in applying our accounting policies have a significant impact on the results we report in our financial statements,
which we discuss under the heading "Results of Operations" following this section of our MD&A. Some of our accounting
policies require us to make difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently
uncertain.
We set forth below
those material accounting policies that we believe are the most critical to an investor's understanding of our financial results
and condition and that require complex management judgment.
Stock-Based Compensation
The Company accounts
for all share-based payment awards made to employees and directors, based on their fair value. The Company measures share-based compensation
to consultants by recognizing the fair value of the awards over the period the services are rendered or goods are provided.
39
Critical Accounting
Policies
In Financial Reporting
Release No. 60, "Cautionary Advice Regarding Disclosure About Critical Accounting Policies" ("FRR 60"), the Securities
and Exchange Commission suggested that companies provide additional disclosure and commentary on their most critical accounting policies.
In FRR 60, the SEC defined the most critical accounting policies as the ones that are most important to the portrayal of a company's
financial condition and operating results and require management to make its most difficult and subjective judgments, often as a result
of the need to make estimates of matters that are inherently uncertain. Based on this definition, our most critical accounting policies
include non-cash compensation valuation that affects the total expenses reported in the current period and the valuation of shares and
underlying mineral rights acquired with shares. The methods, estimates and judgments we use in applying these most critical accounting
policies have a significant impact on the results we report in our financial statements.
Available Information
We are subject to the
informational requirements of the Securities Exchange Act of 1934, as amended. All of our reports are able to be reviewed through the
SEC's Electronic Data Gathering Analysis and Retrieval System (EDGAR) which is publicly available through the SEC's website
(
http://www.sec.gov
).
We intend to furnish
to our stockholders, annual reports containing financial statements audited by our independent certified public accountants and quarterly
reports containing reviewed unaudited interim financial statements for the first two-quarters of each fiscal year. You may contact the
Securities and Exchange Commission at (800) SEC-0330 or you may read and copy any reports, statements, or other information that we file
with the Securities and Exchange Commission at the Securities and Exchange Commission's public reference room at the following
location:
Public Reference Room
100 F. Street N.W.
Washington, D.C. 2054900405
Telephone: (800) SEC-0330
ITEM
3
. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company is not
exposed to market risk related to interest rates or foreign currencies.
ITEM
4
. CONTROLS AND PROCEDURES
Evaluation of Disclosure
Controls and Procedures
As required by Rule
13a-15 under the Securities Exchange Act of 1934 (the "1934 Act"), as of December 31, 2020, we carried out an evaluation
of the effectiveness of the design and operation of our disclosure controls and procedures. This evaluation was carried out under the
supervision and with the participation of our Chief Executive Officer (our principal executive officer) and our Chief Financial Officer
(our principal financial officer), who concluded, that our disclosure controls and procedures were effective as at December 31, 2020.
Disclosure controls
and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports
filed or submitted under the Securities Exchange Act is recorded, processed, summarized and reported within the time periods specified
in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls
and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated
and communicated to our management, including our principal executive officer and our principal financial officer, as appropriate, to
allow timely decisions regarding required disclosure.
40
PART II OTHER
INFORMATION
ITEM
1
. LEGAL PROCEEDINGS
The Company is not
a party to any legal proceedings.
ITEM
1A
. RISK FACTORS
There have been no
material changes in the risk factors set forth in the Company's 10-K/A (2020) filed February 16, 2021.
ITEM
2
. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
There were no sales
of unregistered equity securities during the covered time period.
ITEM
3
. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM
4
. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM
5
. OTHER INFORMATION
None.
ITEM
6
. EXHIBITS AND REPORTS ON FORM 8-K
(a)
The following documents
    are included or incorporated by reference as exhibits to this report:
Exhibit
No.
Description
31.1
Certification
of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
31.2
Certification
of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
32.1
Certification
of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
(b)
REPORTS ON FORM 8-K
None.
41
SIGNATURES
In
accordance with Section 13 or 15 (d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
Date: August 10 2022
Biocrude
Technologies USA, Inc.
Registrant
By:
/s/ John Moukas
Chief Executive Officer
42