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<p style="margin-top: 0; text-align: center; margin-bottom: 0">&#160;</p>

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

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

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Transition Report under Section 13 or 15(d) of the Exchange Act</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">&#160;</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b><span id="xdx_90A_edei--EntityAddressAddressLine3_c20210101__20210930_zAIOsGjYxtH9"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" name="dei:EntityAddressAddressLine3">Montreal</ix:nonNumeric></span>,
<span id="xdx_902_edei--EntityAddressCityOrTown_c20210101__20210930_zg9v99FzeZv4"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" name="dei:EntityAddressCityOrTown">Quebec</ix:nonNumeric></span>, <span id="xdx_90D_edei--EntityAddressCountry_c20210101__20210930_znVHMgSnnVrh"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" format="ixt-sec:countrynameen" name="dei:EntityAddressCountry">Canada</ix:nonNumeric></span> <span id="xdx_902_edei--EntityAddressPostalZipCode_c20210101__20210930_zzC49UJjw5F6"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" name="dei:EntityAddressPostalZipCode">H3B 3G5</ix:nonNumeric></span></b></span></p>

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

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

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><b><span id="xdx_90C_edei--CityAreaCode_c20210101__20210930_zZaAfEIcZ94g"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" name="dei:CityAreaCode">514</ix:nonNumeric></span>-<span id="xdx_90F_edei--LocalPhoneNumber_c20210101__20210930_zFkORRar4eRa"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" name="dei:LocalPhoneNumber">840-9719</ix:nonNumeric></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><i>(Registrant&#8217;s
telephone number including area code)</i></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">&#160;</span></p>

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

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

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

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif">&#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">Indicate
by check mark whether the issuer (1) filed all reports required to be filed by Section13 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.</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">&#160;</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">Yes&#160;&#9744;
<span id="xdx_902_edei--EntityCurrentReportingStatus_c20210101__20210930_zTfjBTCCBan6"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" name="dei:EntityCurrentReportingStatus">No</ix:nonNumeric></span>&#160;&#9746;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 40pt; text-align: center"><span id="xdx_900_edei--EntityInteractiveDataCurrent_c20210101__20210930_zB1JWVtJX9Q" style="display: none"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" name="dei:EntityInteractiveDataCurrent">No</ix:nonNumeric></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">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.</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">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="font-size: 10pt">
<td style="padding: 0; width: 40%; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Large
Accelerated Filer</span></td>
<td style="padding: 0; width: 10%; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#9744;&#160;</span></td>
<td style="padding: 0; width: 40%; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Accelerated
Filer</span></td>
<td style="padding: 0; width: 10%; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9744;</span></td></tr>
<tr style="font-size: 10pt">
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span id="xdx_90E_edei--EntityFilerCategory_c20210101__20210930_z8D9gQi3qZRe"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" format="ixt-sec:entityfilercategoryen" name="dei:EntityFilerCategory">Non-Accelerated Filer</ix:nonNumeric></span></span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#9744;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Smaller
Reporting Company</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><span id="xdx_904_edei--EntitySmallBusiness_c20210101__20210930_z76vQdXyW1E5"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" format="ixt:booleantrue" name="dei:EntitySmallBusiness">&#9746;</ix:nonNumeric></span></span></td></tr>
<tr style="font-size: 10pt">
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Emerging
Growth Company</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif"><span id="xdx_90C_edei--EntityEmergingGrowthCompany_c20210101__20210930_zCEo1Ty1LK5e"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" format="ixt:booleanfalse" name="dei:EntityEmergingGrowthCompany">&#9744;</ix:nonNumeric></span></span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</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">&#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">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. &#9744;</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">&#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">Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).</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">&#160;</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">Yes&#160;&#9744;
<span id="xdx_908_edei--EntityShellCompany_c20210101__20210930_zMIyawnQiXp9"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" format="ixt:booleanfalse" name="dei:EntityShellCompany">No</ix:nonNumeric></span>&#160;&#9746;</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">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif">As of September
30, 2021, the issuer had <span id="xdx_908_edei--EntityCommonStockSharesOutstanding_iI_c20210930_zwSpx838M5e1"><ix:nonFraction name="dei:EntityCommonStockSharesOutstanding" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">50,710,386</ix:nonFraction></span> shares of common stock issued and outstanding</span>.</p>

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

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    <div style="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

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

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: black 1pt solid; padding: 0; text-align: center; font-size: 10pt"><span style="font: 10pt Times New Roman, Times, Serif">Page</span></td></tr>
<tr style="vertical-align: bottom; font-size: 10pt">
<td colspan="3" style="padding: 0; text-align: center; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: bottom; font-size: 10pt">
<td colspan="3" style="padding: 0; text-align: center; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><b>PART
I &#8211; FINANCIAL INFORMATION</b></span></td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: right; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: bottom; font-size: 10pt">
<td style="padding: 0; width: 10%; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item
1.</span></td>
<td style="padding: 0; width: 80%; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif; color: windowtext"><a href="#a_001">Financial Statements- Unaudited</a></span></td>
<td style="padding: 0; width: 10%; text-align: right; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">1</span></td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item 2.</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif; color: windowtext"><a href="#a_002">Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operation</a></span></td>
<td style="padding: 0; text-align: right; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">9</span></td></tr>
<tr style="vertical-align: bottom; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item 3.</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif; color: windowtext"><a href="#a_003">Quantitative and Qualitative Disclosures about Market Risk</a></span></td>
<td style="padding: 0; text-align: right; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">41</span></td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item 4.</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif; color: windowtext"><a href="#a_004">Controls and Procedures</a></span></td>
<td style="padding: 0; text-align: right; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">41</span></td></tr>
<tr style="vertical-align: bottom; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: right; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 10pt">
<td colspan="3" style="padding: 0; text-align: center; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><b>PART
II &#8211; OTHER INFORMATION</b></span></td></tr>
<tr style="vertical-align: bottom; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: right; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item 1.</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif; color: windowtext"><a href="#a_005">Legal Proceedings</a></span></td>
<td style="padding: 0; text-align: right; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">42</span></td></tr>
<tr style="vertical-align: bottom; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item 1A.</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif; color: windowtext"><a href="#a_006">Risk Factors</a></span></td>
<td style="padding: 0; text-align: right; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">42</span></td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item 2.</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif; color: windowtext"><a href="#a_007">Unregistered Sales of Equity Securities and Use of Proceeds</a></span></td>
<td style="padding: 0; text-align: right; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">42</span></td></tr>
<tr style="vertical-align: bottom; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item 3.</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif; color: windowtext"><a href="#a_008">Defaults Upon Senior Securities</a></span></td>
<td style="padding: 0; text-align: right; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">42</span></td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item 4.</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif; color: windowtext"><a href="#a_009">Submission of Matters to a Vote of Security Holders</a></span></td>
<td style="padding: 0; text-align: right; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">42</span></td></tr>
<tr style="vertical-align: bottom; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item 5.</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif; color: windowtext"><a href="#a_010">Other Information</a></span></td>
<td style="padding: 0; text-align: right; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">42</span></td></tr>
<tr style="vertical-align: bottom; background-color: White; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Item 6.</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif; color: windowtext"><a href="#a_011">Exhibits</a></span></td>
<td style="padding: 0; text-align: right; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">42</span></td></tr>
</table>

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

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 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="a_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-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"><b>CONSOLIDATED BALANCE
SHEETS</b></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"><b>(UNAUDITED)</b></p>

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

<table cellpadding="0" cellspacing="0" id="xdx_307_111_zuy4x6W6Nduh" summary="xdx: Statement - CONSOLIDATED BALANCE SHEETS (UNAUDITED)" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_492_20210930" 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_494_20201231" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">UNAUDITED <br /> September 30,<br /> 2021</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">AUDITED<br /> December 31, <br /> 2020</td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="3" style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="3" style="text-align: center">&#160;</td></tr>
<tr id="xdx_404_eus-gaap--AssetsAbstract_iB_zcaIYEA5u103" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td colspan="9" style="text-decoration: underline; font-weight: bold; text-align: center">ASSETS</td></tr>
<tr id="xdx_40A_eus-gaap--AssetsCurrentAbstract_i01B_zq7q1Q1lkGce" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left">CURRENT ASSETS</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_40E_eus-gaap--Cash_i02I_maCzutk_zCFcNO0FuVi5" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 56%">Cash</td><td style="width: 8%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right"><ix:nonFraction name="us-gaap:Cash" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">18,246</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 8%">&#160;</td>
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<tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentNet_i01I_maCzutk_zvAvMOGJ337i" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Property, plant and equipment</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentNet" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">17,306</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
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<tr id="xdx_406_eus-gaap--Assets_iTI_mtCzutk_zcQvep6kg23g" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">TOTAL ASSETS</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:Assets" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">35,552</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:Assets" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">129,668</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td>&#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>&#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_40C_eus-gaap--LiabilitiesAndStockholdersEquityAbstract_iB" style="vertical-align: bottom; background-color: White">
    <td colspan="9" style="font-weight: bold; text-align: center">LIABILITIES AND STOCKHOLDERS&#8217; DEFICIT</td></tr>
<tr id="xdx_40D_eus-gaap--LiabilitiesCurrentAbstract_i01B_zhm6DYxDNBv5" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">CURRENT LIABILITIES</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_40E_eus-gaap--AccountsPayableAndAccruedLiabilitiesCurrent_i02I_maCz4oQ_z3zIJvzXgBpd" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Accounts payable and accrued liabilities</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction name="us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">3,434</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction name="us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">21,400</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_407_eus-gaap--AccountsPayableRelatedPartiesCurrent_i02I_maCz4oQ_zgLko0vNY76d" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Accounts payable and accrued liabilities - related parties (Note 6)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:AccountsPayableRelatedPartiesCurrent" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">1,482</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:AccountsPayableRelatedPartiesCurrent" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">104,727</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_409_eus-gaap--ConvertibleDebtCurrent_i02I_maCz4oQ_zCXE80yWmyG2" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Convertible notes (Note 3)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0064">&#8212;</span>&#160;&#160;</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: xdx2ixbrl0065">&#8212;</span>&#160;&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_401_eus-gaap--LoansPayableCurrent_i02I_maCz4oQ_zvDImw6oLGC2" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Loans payable (Note 4)</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="us-gaap:LoansPayableCurrent" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">136,903</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="us-gaap:LoansPayableCurrent" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">152,169</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
<tr id="xdx_409_eus-gaap--Liabilities_iTI_mtCz4oQ_maCzsBa_z7D1xPkBdjEh" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left">TOTAL LIABILITIES</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="us-gaap:Liabilities" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">141,819</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="us-gaap:Liabilities" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">278,296</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#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_407_eus-gaap--StockholdersEquityAbstract_iB" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left">STOCKHOLDERS&#8217; DEFICIT</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_405_eus-gaap--CommonStockValue_i01I_maCzZR3_zwBXWdLbW9le" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0 0 0 20pt">Common stock, $<span id="xdx_906_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20210930_zUVMfIOpLfw9" title="Common stock, par value (in dollars per share)"><span id="xdx_90F_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20201231_zFXD54q1jONk" title="Common stock, par value (in dollars per share)"><ix:nonFraction name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares"><ix:nonFraction name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">0.001</ix:nonFraction></ix:nonFraction></span></span> par value, <span id="xdx_906_eus-gaap--CommonStockSharesAuthorized_iI_c20210930_zUeraRSA6sta" title="Common stock, authorized"><span id="xdx_90C_eus-gaap--CommonStockSharesAuthorized_iI_c20201231_z3Ns9bwVGcv5" title="Common stock, authorized"><ix:nonFraction name="us-gaap:CommonStockSharesAuthorized" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesAuthorized" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">75,000,000</ix:nonFraction></ix:nonFraction></span></span> shares authorized, <span id="xdx_908_eus-gaap--CommonStockSharesOutstanding_iI_c20210930_zWhU6Z0yanuh" title="Common stock, outstanding"><ix:nonFraction name="us-gaap:CommonStockSharesOutstanding" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">50,710,386</ix:nonFraction></span> shares outstanding (December 31, 2020 - <span id="xdx_90C_eus-gaap--CommonStockSharesOutstanding_iI_c20201231_z34LHC3d116k"><ix:nonFraction name="us-gaap:CommonStockSharesOutstanding" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">50,621,336</ix:nonFraction></span>)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction name="us-gaap:CommonStockValue" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">50,711</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction name="us-gaap:CommonStockValue" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">50,622</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_408_eus-gaap--AdditionalPaidInCapital_i01I_maCzZR3_zcCulUgvTCKk" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; text-align: left">Additional paid in capital</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:AdditionalPaidInCapital" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">8,523,756</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:AdditionalPaidInCapital" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">8,167,646</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_40A_eus-gaap--StockholdersEquityNoteSubscriptionsReceivable_i01NI_di_msCzZR3_zfpcfJGIKBg" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0 0 0 20pt; text-align: left">Subscription receivable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0093">&#8212;</span>&#160;&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquityNoteSubscriptionsReceivable" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">50,000</ix:nonFraction></td><td style="text-align: left">)</td></tr>
<tr id="xdx_404_eus-gaap--AccumulatedOtherComprehensiveIncomeLossNetOfTax_i01I_maCzZR3_zAOsWmElzwp" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; text-align: left">Accumulated other comprehensive income</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:AccumulatedOtherComprehensiveIncomeLossNetOfTax" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">28,669</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:AccumulatedOtherComprehensiveIncomeLossNetOfTax" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">28,654</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_40F_eus-gaap--RetainedEarningsAccumulatedDeficit_i01I_maCzZR3_zTph2sHMfSOh" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0 0 0 20pt">Deficit</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(<ix:nonFraction name="us-gaap:RetainedEarningsAccumulatedDeficit" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">8,707,798</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(<ix:nonFraction name="us-gaap:RetainedEarningsAccumulatedDeficit" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">8,343,939</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr id="xdx_409_eus-gaap--StockholdersEquity_i01TI_pp0p0_mtCzZR3_maCzsBa_zRIvZCowxn5c" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left">TOTAL STOCKHOLDERS&#8217; DEFICIT ATTRIBUTALBLE TO EQUITY SHAREHOLDERS OF THE COMPANY</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" scale="0" sign="-" unitRef="USD">104,662</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" scale="0" sign="-" unitRef="USD">147,017</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr id="xdx_40C_eus-gaap--MinorityInterest_i01I_maCzsBa_zeBMHbKETI2a" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold">&#160;NON-CONTROLLING INTEREST</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(<ix:nonFraction name="us-gaap:MinorityInterest" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">1,605</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(<ix:nonFraction name="us-gaap:MinorityInterest" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">1,611</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr id="xdx_407_eus-gaap--LiabilitiesAndStockholdersEquity_iTI_pp0p0_mtCzsBa_zaiuII7Svus4" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left">TOTAL LIABILITIES AND STOCKHOLDERS&#8217; DEFICIT</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:LiabilitiesAndStockholdersEquity" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">35,552</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:LiabilitiesAndStockholdersEquity" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">129,668</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
</table>


<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">The accompanying notes
are an integral part of these consolidated financial statements.</p>

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

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

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

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>FOR THE THREE AND
NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020</b></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"><b>(UNAUDITED)</b></p>

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

<table cellpadding="0" cellspacing="0" id="xdx_30E_113_zdoQYVNPc4X5" summary="xdx: Statement - CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_49B_20210701__20210930_zsfvpJ6zin53" 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_49C_20200701__20200930_zLWbmoJlWe94" 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_49B_20210101__20210930_zXs4OVbXFfii" 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_20200101__20200930_zl7yFNIzE5b3" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
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    <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the three months ended</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
    <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the nine months ended</td></tr>
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30, 2021</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September<br />
30, 2020</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September<br />
30, 2021</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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30, 2020</td></tr>
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    <td style="font-weight: bold">REVENUE</td><td style="padding-bottom: 2.5pt">&#160;</td>
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<tr id="xdx_400_eus-gaap--OperatingExpensesAbstract_iB_zwiUxAquAGH3" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">OPERATING EXPENSES</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 style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#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_40E_eus-gaap--GeneralAndAdministrativeExpense_i01_maCzjV3_zXuviVSeQEW8" style="vertical-align: bottom; background-color: White">
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    <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; width: 10%; text-align: right"><ix:nonFraction name="us-gaap:GeneralAndAdministrativeExpense" contextRef="From2021-07-012021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">45,880</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1pt; text-align: left">&#160;</td><td style="width: 3%; padding-bottom: 1pt">&#160;</td>
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<tr id="xdx_400_eus-gaap--OperatingExpenses_i01T_mtCzjV3_msCzhLJ_zFLroTJaOOvd" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:OperatingExpenses" contextRef="From2021-07-012021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">45,880</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
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<tr style="vertical-align: bottom; background-color: White">
    <td>&#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_406_eus-gaap--OperatingIncomeLoss_iT_mtCzhLJ_maCzTYg_zxiHeHjr7Nf1" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:OperatingIncomeLoss" contextRef="From2021-07-012021-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">45,880</ix:nonFraction></td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
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<tr style="vertical-align: bottom; background-color: White">
    <td>&#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_40E_eus-gaap--InterestExpense_iN_di_msCzTYg_zW6x7zpOFZha" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0 0 0 20pt; text-align: left">Interest expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:InterestExpense" contextRef="From2021-07-012021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">1,000</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
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<tr id="xdx_401_eus-gaap--IncomeTaxExpenseBenefit_msCzTYg_zm9gLi5UQeId" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; text-align: left">Income tax expense</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0141">&#8212;</span>&#160;&#160;</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0142">&#8212;</span>&#160;&#160;</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0143">&#8212;</span>&#160;&#160;</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0144">&#8212;</span>&#160;&#160;</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#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_405_eus-gaap--ProfitLoss_iT_mtCzTYg_maOCILBzDC0_zENf3fCA5de3" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left">NET LOSS</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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<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">&#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_40C_eus-gaap--OtherComprehensiveIncomeLossNetOfTaxAttributableToParentAbstract_iB_zPCYNJfoUmFh" 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>
    <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_ecustom--ExchangeDifferencesOnTranslatingNoncontrollingInterest_i01_maOCILBzDC0_zESbTXmLHIG7" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_408_eus-gaap--OtherComprehensiveIncomeLossBeforeTax_i01T_mtOCILBzDC0_zncOmMWbr6Nc" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr style="vertical-align: bottom; background-color: White">
    <td>&#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_407_eus-gaap--MinorityInterestInNetIncomeLossOfConsolidatedEntitiesAbstract_iB_z4xgmuEYAObg" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">NET LOSS ATTRIBUTABLE TO</td><td>&#160;</td>
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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><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--NetIncomeLossAvailableToCommonStockholdersBasic_i01_maPLzgo9_zRQn76qLw7N1" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; text-align: left">Equity shareholders of the Company</td><td>&#160;</td>
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<tr id="xdx_40F_eus-gaap--NetIncomeLossAttributableToNoncontrollingInterest_i01_msPLzgo9_zNw7GBFVfxt4" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0182">&#8212;</span>&#160;&#160;</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0183">&#8212;</span>&#160;&#160;</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0184">&#8212;</span>&#160;&#160;</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
<tr id="xdx_405_eus-gaap--ProfitLoss_iT_mtPLzgo9_zqGj7h7lUzY3" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left">NET LOSS</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
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    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:ProfitLoss" contextRef="From2020-07-012020-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">60,627</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:ProfitLoss" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">363,859</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#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_408_eus-gaap--OtherComprehensiveIncomeLossNetOfTaxPeriodIncreaseDecreaseAbstract_iB_zYD77yMaXO82" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left">TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO</td><td>&#160;</td>
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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><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_40C_eus-gaap--ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest_i01_maOCILBzzY8_zuduGyPLu001" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest" contextRef="From2020-07-012020-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">60,627</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
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<tr id="xdx_408_eus-gaap--ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest_i01_msOCILBzzY8_zn5KYLLfoZy2" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt">Non-controlling interest</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="us-gaap:ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest" contextRef="From2021-07-012021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">4</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0202">&#8212;</span>&#160;&#160;</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="us-gaap:ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">6</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(<ix:nonFraction name="us-gaap:ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest" contextRef="From2020-01-012020-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">8</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr id="xdx_405_eus-gaap--OtherComprehensiveIncomeLossBeforeTax_i01T_mtOCILBzzY8_ziIbrEK4lC24" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr style="vertical-align: bottom; background-color: White">
    <td>&#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_408_eus-gaap--EarningsPerShareBasicAndDiluted_zm2jRalfLgBf" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<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">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>

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<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"><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"><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"><b>(UNAUDITED)</b></p>

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

<table cellpadding="0" cellspacing="0" id="xdx_30D_114_zshgBN4blVBh" 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%">
<tr style="vertical-align: bottom; background-color: White">
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<tr id="xdx_40C_ecustom--SubscriptionReceivable_pp0p0_z7DNhIU4w1Hf" 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"><span style="-sec-ix-hidden: xdx2ixbrl0241">&#8212;</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
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<tr id="xdx_40A_eus-gaap--NetIncomeLoss_pp0p0_z4Us9fWY2lci" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_439_c20210401__20210630_eus-gaap--StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_iS_znLCbglR2AA4" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_40A_eus-gaap--StockIssuedDuringPeriodValueIssuedForServices_pp0p0_zSOFKvsB10X8" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_40E_eus-gaap--ProceedsFromIssuanceOfCommonStock_pp0p0_zxGoRw6pC7rj" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_40F_eus-gaap--TranslationAdjustmentFunctionalToReportingCurrencyTaxExpenseBenefit_iN_pp0p0_di_zxIiWz1KDF25" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_40A_eus-gaap--NetIncomeLoss_pp0p0_zOCcvwEwoU6e" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<tr id="xdx_43A_c20210701__20210930_eus-gaap--StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_iS_zXKfT6RIyf2f" style="vertical-align: bottom; background-color: White">
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</table>


<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-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>

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<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"><b>CONSOLIDATED STATEMENTS
OF CASH FLOWS</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>FOR THE THREE &amp;
NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020</b></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: 0; text-align: center"><b>&#160;</b></p>

<table cellpadding="0" cellspacing="0" id="xdx_304_112_zJawuC9Uiyvd" 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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<tr style="vertical-align: bottom">
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    <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">UNAUDITED<br /> September 30, 2020</td></tr>
<tr style="vertical-align: bottom">
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<tr id="xdx_40F_eus-gaap--NetIncomeLossAvailableToCommonStockholdersDiluted_i01N_di_msCzrKy_zOI1mOWq448e" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_40E_eus-gaap--AdjustmentsNoncashItemsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract_i01B_z4CrZbGX9BCg" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Adjustments to reconcile net loss to net cash used in operating activities</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_40C_eus-gaap--AccretionExpense_i02_maCzrKy_zxSveEed3OEf" style="vertical-align: bottom; background-color: White">
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<tr id="xdx_403_eus-gaap--AdjustmentForAmortization_i02_maCzrKy_zL1AzQ1JHRTl" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0 0 0 20pt">Amortization</td><td>&#160;</td>
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<tr id="xdx_40B_eus-gaap--IssuanceOfStockAndWarrantsForServicesOrClaims_i02_maCzrKy_zinCCqruZdV2" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; text-align: left">Stock issued for services</td><td>&#160;</td>
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<tr id="xdx_40A_ecustom--ForgivenessAccruedInterest_i02_maCzrKy_zK7JzcUynhLc" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0 0 0 20pt; text-align: left">Forgiveness accrued interest</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"><span style="-sec-ix-hidden: xdx2ixbrl0393">&#8212;</span></td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_405_eus-gaap--ForeignCurrencyTransactionGainLossBeforeTax_i02N_di_msCzrKy_zJdQ6mtz7Wv5" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; text-align: left">Foreign exchange</td><td>&#160;</td>
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    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:ForeignCurrencyTransactionGainLossBeforeTax" contextRef="From2020-01-012020-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">21,274</ix:nonFraction></td><td style="text-align: left">)</td></tr>
<tr id="xdx_402_eus-gaap--IncreaseDecreaseInOperatingCapitalAbstract_i01B_z8Uf2BdMB8Y2" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0 0 0 10pt; text-align: left">Changes in operating assets and liabilities</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_404_eus-gaap--IncreaseDecreaseInPrepaidExpense_i02_msCzrKy_zqyQEVORAXse" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; text-align: left">Prepaid expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0401">&#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: xdx2ixbrl0402">&#8212;</span></td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_408_eus-gaap--IncreaseDecreaseInAccountsPayableAndAccruedLiabilities_i02_maCzrKy_zs6anrq5Wm9c" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0 0 0 20pt; text-align: left">Accounts payable and accruals</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:IncreaseDecreaseInAccountsPayableAndAccruedLiabilities" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">17,966</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:IncreaseDecreaseInAccountsPayableAndAccruedLiabilities" contextRef="From2020-01-012020-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">13,441</ix:nonFraction></td><td style="text-align: left">)</td></tr>
<tr id="xdx_400_eus-gaap--IncreaseDecreaseInAccountsPayableRelatedParties_i02_maCzrKy_zWhb5XnfEPy6" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; text-align: left">Accounts payable and accrued liabilities - related party</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(<ix:nonFraction name="us-gaap:IncreaseDecreaseInAccountsPayableRelatedParties" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">103,245</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(<ix:nonFraction name="us-gaap:IncreaseDecreaseInAccountsPayableRelatedParties" contextRef="From2020-01-012020-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">124,789</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr id="xdx_40C_eus-gaap--NetCashProvidedByUsedInOperatingActivities_i02T_mtCzrKy_maCzlZE_zOfpd8ezZ356" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Net cash used in operating activities</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(<ix:nonFraction name="us-gaap:NetCashProvidedByUsedInOperatingActivities" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">298,798</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(<ix:nonFraction name="us-gaap:NetCashProvidedByUsedInOperatingActivities" contextRef="From2020-01-012020-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">204,490</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td>&#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_406_eus-gaap--NetCashProvidedByUsedInFinancingActivitiesContinuingOperationsAbstract_iB_zeX9WTquU1fh" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">CASH FLOWS FROM FINANCING ACTIVITIES:</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_40E_eus-gaap--ProceedsFromConvertibleDebt_i01_maCz690_zB3niC8yMmE4" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; text-align: left">Proceeds from issuance of convertible debt</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_40C_eus-gaap--ProceedsFromIssuanceOfPrivatePlacement_i01_maCz690_zSntAgko0tX" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0 0 0 20pt; text-align: left">Proceeds from private placement</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:ProceedsFromIssuanceOfPrivatePlacement" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">220,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:ProceedsFromIssuanceOfPrivatePlacement" contextRef="From2020-01-012020-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">200,000</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
<tr id="xdx_402_eus-gaap--ProceedsFromRepaymentsOfShortTermDebt_i01_maCz690_zXRFpoQeoRN9" style="vertical-align: bottom; background-color: White">
    <td style="padding: 0 0 0 20pt; text-align: left">(Repayment) Proceeds of loans payable</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(<ix:nonFraction name="us-gaap:ProceedsFromRepaymentsOfShortTermDebt" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">12,835</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="us-gaap:ProceedsFromRepaymentsOfShortTermDebt" contextRef="From2020-01-012020-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">9,250</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
<tr id="xdx_405_eus-gaap--NetCashProvidedByUsedInFinancingActivities_i01T_mtCz690_maCzlZE_zc7coQsOmnLb" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Net cash provided by financing activities</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="us-gaap:NetCashProvidedByUsedInFinancingActivities" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">207,165</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="us-gaap:NetCashProvidedByUsedInFinancingActivities" contextRef="From2020-01-012020-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">209,250</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td>&#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_40E_eus-gaap--NetCashProvidedByUsedInInvestingActivitiesAbstract_i01B_z29xIUwRARU1" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">CASH FLOWS FROM INVESTING ACTIVITIES:</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_402_eus-gaap--PaymentsToAcquirePropertyPlantAndEquipment_i02N_di_msCzOG7_zqpk4i33Yhp3" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Purchase of property, plant and equipment</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(<ix:nonFraction name="us-gaap:PaymentsToAcquirePropertyPlantAndEquipment" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">92</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0432">&#8212;</span></td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
<tr id="xdx_40A_eus-gaap--NetCashProvidedByUsedInInvestingActivities_i02T_mtCzOG7_maCzlZE_zIvoJkEDtcyj" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Net cash used in financing activities</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(<ix:nonFraction name="us-gaap:NetCashProvidedByUsedInInvestingActivities" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">92</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0435">&#8212;</span></td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
<tr id="xdx_403_eus-gaap--EffectOfExchangeRateOnCashAndCashEquivalents_maCzlZE_zrYkWumgxDx1" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Effect of exchange rate changes on cash</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0437">&#8212;</span></td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0438">&#8212;</span></td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#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_406_eus-gaap--CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect_iT_mtCzlZE_zOeOVHUvVUr7" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">CHANGE IN CASH DURING THE PERIOD</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect" contextRef="From2021-01-01to2021-09-30" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">91,725</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect" contextRef="From2020-01-012020-09-30" format="ixt:numdotdecimal" decimals="0" unitRef="USD">4,760</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#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_408_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iS_z1TPNsEMXfe2" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">CASH BEGINNING</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="us-gaap:CashAndCashEquivalentsAtCarryingValue" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">109,971</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="us-gaap:CashAndCashEquivalentsAtCarryingValue" contextRef="AsOf2019-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">305</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#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_401_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iE_zvoyqnYyEJ8j" style="vertical-align: bottom; background-color: White">
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    <td style="padding: 0 0 0 20pt; text-align: left">Stock issued for services</td><td>&#160;</td>
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    <td style="padding: 0 0 0 20pt; text-align: left">Forgiveness accrued interest</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>

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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-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: 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b>NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS</b>&#160;</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">&#160;</p>

<ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock"><p id="xdx_800_eus-gaap--OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock_zrzli4P2x9Gk" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><span style="text-decoration: underline">NOTE 1</span> &#8211; <span id="xdx_821_zJ583WIfbzVb">ORGANIZATION AND BASIS OF PRESENTATION</span></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"><b><i>Nature of Operations</i></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">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.</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><i>Interim Financial Statements</i></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 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, 2020 included in the Company&#8217;s 2020 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 nine-month period ended September 30, 2021 are not necessarily indicative of the results that may be expected for
the year ending December 31, 2021.</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>Going Concern</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&#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_90B_eus-gaap--RetainedEarningsAccumulatedDeficit_iNI_pp0p0_di_c20210930_zufW6XYOp745" title="Accumulated losses"><ix:nonFraction name="us-gaap:RetainedEarningsAccumulatedDeficit" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" scale="0" sign="-" unitRef="USD">8,707,798</ix:nonFraction></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.</p>

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

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POLICIES</span></b></p>

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

<ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:BasisOfAccountingPolicyPolicyTextBlock"><p id="xdx_842_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_zhBdNYt1sIC8" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><span style="text-decoration: underline"><span id="xdx_864_zRR2EQGwM4e1">Basis of presentation and Principles
of Consolidation</span></span></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">These consolidated financial statements and
related notes are presented in accordance with US GAAP and are presented in United States dollars.</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 accompanying consolidated financial statements
include the accounts of its <span id="xdx_903_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20210930__srt--OwnershipAxis__custom--BiocrudeHKMember_zszYUyp8GTn6" title="Noncontrolling Interest, Ownership Percentage by Parent"><ix:nonFraction name="us-gaap:MinorityInterestOwnershipPercentageByParent" contextRef="AsOf2021-09-30_custom_BiocrudeHKMember" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">70</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.</p>

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

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<ix:exclude><p id="xdx_23C_zwyRsmlhCQma" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p></ix:exclude>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:UseOfEstimates"><p id="xdx_841_eus-gaap--UseOfEstimates_zG0OcCPpFw24" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><span style="text-decoration: underline"><span id="xdx_863_zEPbV3E67GN3">Use of Estimates</span></span></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 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.</p>

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

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:FairValueMeasurementPolicyPolicyTextBlock"><p id="xdx_847_eus-gaap--FairValueMeasurementPolicyPolicyTextBlock_zCRDpXE8lNgb" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><span style="text-decoration: underline"><span id="xdx_86A_zsC6paH81Wxg">Fair Value Measurements</span></span></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 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.</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 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.</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">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:</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">Level 1 - quoted prices in active markets for
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<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">Level 2 - quoted prices for similar assets
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<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">Level 3 - inputs that are unobservable (for
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<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&#8217;s financial assets and liabilities
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until maturity.</p>

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

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<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&#8217;s presentation currency is the
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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).</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">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.</p>

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

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<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">Cash and cash equivalents consist of cash
balances and highly liquid instruments with an original maturity of three months or less. As at September 30, 2021, the Company
does not have cash equivalents.</p>

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

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<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">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_90E_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20210101__20210930_zydbaD2J7Nm5" title="Property, Plant and Equipment, Useful Life"><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" format="ixt-sec:duryear" name="us-gaap:PropertyPlantAndEquipmentUsefulLife">8</ix:nonNumeric></span> years.</p>

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

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:CompensationRelatedCostsPolicyTextBlock"><p id="xdx_84B_eus-gaap--CompensationRelatedCostsPolicyTextBlock_zLnFjGl8Nmsl" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><span style="text-decoration: underline"><span id="xdx_864_zZr5NEfkAgi3">Share-based Expense</span></span></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">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).</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 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.</p>

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

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:IncomeTaxPolicyTextBlock"><p id="xdx_846_eus-gaap--IncomeTaxPolicyTextBlock_zxHu4WTIDLZc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><span style="text-decoration: underline"><span id="xdx_867_zLLgGfj5tR15">Income Taxes</span></span></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">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.</p>

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

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:LessorLeasesPolicyTextBlock"><p id="xdx_84A_eus-gaap--LessorLeasesPolicyTextBlock_zQuS10ROCMu1" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><span style="text-decoration: underline"><span id="xdx_861_zv8cmBA0gLq9">Leases</span></span></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">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 nine months period ended
September 30, 2021 and did not have any significant leases as at December 31, 2020. Adoption of this standard does not have material
impact on the Company&#8217;s interim consolidated financial statements.</p>

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

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:EarningsPerSharePolicyTextBlock"><p id="xdx_84D_eus-gaap--EarningsPerSharePolicyTextBlock_zuK5NEdMlLdg" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><span style="text-decoration: underline"><span id="xdx_869_zo52uuQ6tCzk">Earnings Per Share Information</span></span></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">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.</p>

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

</ix:nonNumeric></ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:DebtDisclosureTextBlock"><p id="xdx_808_eus-gaap--DebtDisclosureTextBlock_zArHX3dQUJtd" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 3 &#8211; <span id="xdx_82D_zxPr1SS6IX38">CONVERTIBLE NOTES</span></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">As at September 30, 2021, there are <span id="xdx_90A_eus-gaap--ConvertibleDebt_iI_pp0p0_do_c20210930_zbzhCCDZUPa6" title="Convertible loans"><ix:nonFraction name="us-gaap:ConvertibleDebt" contextRef="AsOf2021-09-30" format="ixt-sec:numwordsen" decimals="0" scale="0" unitRef="USD">no</ix:nonFraction></span> outstanding
convertible loans.</p>

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

<ix:exclude><!-- Field: Page; Sequence: 9; Value: 1 -->
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    <div id="xdx_234_zIbDp2D3pNq9" style="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><table cellpadding="0" cellspacing="0" id="xdx_234_zV5TJqXII6Cb" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
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<ix:exclude><p id="xdx_236_zlOrN8I734l5" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p></ix:exclude>

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="cik1690384:LoansPayableTextBlock"><p id="xdx_809_ecustom--LoansPayableTextBlock_zK7BMbS836V9" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 4 &#8211; <span id="xdx_82E_zLekmWlzGZAe">LOANS PAYABLE</span></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">As at September 30, 2021, the Company has loans
payable of $<span id="xdx_904_eus-gaap--LoansPayable_c20210930_pp0p0" title="Loans payable"><ix:nonFraction name="us-gaap:LoansPayable" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">108,088</ix:nonFraction></span> (December 31, 2020 &#8211; $<span id="xdx_905_eus-gaap--LoansPayable_c20201231_pp0p0" title="Loans payable"><ix:nonFraction name="us-gaap:LoansPayable" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">126,481</ix:nonFraction></span>) in principal and accrued interest of $<span id="xdx_90E_eus-gaap--InterestPayableCurrent_c20210930_pp0p0" title="Accrued interest"><ix:nonFraction name="us-gaap:InterestPayableCurrent" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">28,815</ix:nonFraction></span> (December 31, 2020 - $<span id="xdx_908_eus-gaap--InterestPayableCurrent_c20201231_pp0p0" title="Accrued interest"><ix:nonFraction name="us-gaap:InterestPayableCurrent" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">25,688</ix:nonFraction></span>)
outstanding. These loans bear an average interest rate of <span id="xdx_90B_eus-gaap--DebtInstrumentInterestRateDuringPeriod_dp_c20210101__20210930__us-gaap--DebtInstrumentAxis__custom--LoanPayableMember_ztFLfE3F0Yf5" title="Debt Instrument, Interest Rate During Period"><ix:nonFraction name="us-gaap:DebtInstrumentInterestRateDuringPeriod" contextRef="From2021-01-012021-09-30_custom_LoanPayableMember" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">4</ix:nonFraction></span>%, are unsecured and have extended maturities until December 31, 2022.
Included in the balance of loans payable as at September 30, 2021, $<span id="xdx_904_eus-gaap--LoansPayable_c20210930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--DirectorMember_pp0p0" title="Loans payable"><ix:nonFraction name="us-gaap:LoansPayable" contextRef="AsOf2021-09-30_srt_DirectorMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">25,082</ix:nonFraction></span> (December 31, 2020 - $<span id="xdx_90E_eus-gaap--LoansPayable_c20201231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--DirectorMember_pp0p0" title="Loans payable"><ix:nonFraction name="us-gaap:LoansPayable" contextRef="AsOf2020-12-31_srt_DirectorMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">32,291</ix:nonFraction></span>) was due to a director
of the Company.</p>

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

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:RelatedPartyTransactionsDisclosureTextBlock"><p id="xdx_800_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zcoUHqsWqsK3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 5 -&#160;<span id="xdx_823_zCHc81MGKHWf">RELATED PARTY TRANSACTIONS</span></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">As at September 30, 2021, the &#8220;CEO&#8221;
of the Company and a director had advanced the Company a cumulative $<span id="xdx_90B_eus-gaap--ProceedsFromRelatedPartyDebt_c20210101__20210930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--ChiefExecutiveOfficerMember_pp0p0" title="Advances from related parties"><ix:nonFraction name="us-gaap:ProceedsFromRelatedPartyDebt" contextRef="From2021-01-012021-09-30_srt_ChiefExecutiveOfficerMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">1,482</ix:nonFraction></span> (December 31, 2020 - $<span id="xdx_90C_eus-gaap--ProceedsFromRelatedPartyDebt_c20200101__20201231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--ChiefExecutiveOfficerMember_pp0p0" title="Advances from related parties"><ix:nonFraction name="us-gaap:ProceedsFromRelatedPartyDebt" contextRef="From2020-01-012020-12-31_srt_ChiefExecutiveOfficerMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">104,727</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.</p>

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

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:StockholdersEquityNoteDisclosureTextBlock"><p id="xdx_80D_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_zYH84tgidYS7" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><span style="text-decoration: underline">NOTE 6</span> &#8211; <span id="xdx_82E_zKUfnNP2T8nf">SHARE CAPITAL</span></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 authorized to issue up to <span id="xdx_902_eus-gaap--CommonStockSharesAuthorized_c20210930_pdd" title="Common stock, authorized"><ix:nonFraction name="us-gaap:CommonStockSharesAuthorized" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">75,000,000</ix:nonFraction>
</span>shares of common stock at par value $<span id="xdx_905_eus-gaap--CommonStockParOrStatedValuePerShare_c20210930_pdd" title="Common stock, par value (in dollars per share)"><ix:nonFraction name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">0.001</ix:nonFraction></span> per share. As at September 30, 2021, the Company had <span id="xdx_90B_eus-gaap--CommonStockSharesIssued_c20210930_pdd" title="Common stock, issued"><span id="xdx_90C_eus-gaap--CommonStockSharesOutstanding_c20210930_pdd" title="Common stock, outstanding"><ix:nonFraction name="us-gaap:CommonStockSharesIssued" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesOutstanding" contextRef="AsOf2021-09-30" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">50,710,386</ix:nonFraction></ix:nonFraction></span></span> (December 31, 2020 -<span id="xdx_900_eus-gaap--CommonStockSharesIssued_c20201231_pdd" title="Common stock, issued">
<span id="xdx_903_eus-gaap--CommonStockSharesOutstanding_c20201231_pdd" title="Common stock, outstanding"><ix:nonFraction name="us-gaap:CommonStockSharesIssued" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesOutstanding" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">50,621,336</ix:nonFraction></ix:nonFraction></span></span>) shares of common stock issued and outstanding, respectively.</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">In Q3 2021, the Company has <span id="xdx_906_eus-gaap--StockIssuedDuringPeriodSharesOther_do_c20210701__20210930__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zhszaaSv3TLc" title="Stock issued, shares"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodSharesOther" contextRef="From2021-07-012021-09-30_us-gaap_CommonStockMember" format="ixt-sec:numwordsen" decimals="INF" unitRef="Shares">no</ix:nonFraction></span> common stock
issued.</p>

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

</ix:nonNumeric><ix:nonNumeric contextRef="From2021-01-01to2021-09-30" escape="true" name="us-gaap:SubsequentEventsTextBlock"><p id="xdx_80C_eus-gaap--SubsequentEventsTextBlock_zc5lZOm3zCG3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><span style="text-decoration: underline">NOTE 7</span> &#8211;&#160;<span id="xdx_82C_zcqAxBS9JfIa">SUBSEQUENT EVENTS</span></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">There are no subsequent events.</p>

</ix:nonNumeric><p id="xdx_813_zQxmRWRK4ZQ6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

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<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="a_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: justify">&#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>

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<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 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>

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<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>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">&#9658;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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: 0.5in">&#160;</p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">&#9658;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Recycling, including composting</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; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">&#9658;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Combustion with energy recovery</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; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">&#9658;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Disposal through land-filling</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><img src="e3195_10q-001.jpg" alt="" />&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</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">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.</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 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.</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 main drivers of the W2E market are environmental
factors, regulations and legislation and economic factors.</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 0 0 0.5in; text-indent: -0.25in"><b>&#160;<span style="text-decoration: underline">Environmental Factors</span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</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 0 0 0.5in; text-indent: -0.25in"><b><span style="text-decoration: underline">Regulations and Legislation</span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in">&#160;</p>

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

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">EU
Landfill Diversion Directive</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">recycling
targets</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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">&#160;</p>

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

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><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></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 0 0 0.5in; text-indent: -0.25in"><span style="font-size: 10pt"><b><span style="text-decoration: underline">Economics</span></b></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p>

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

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

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

<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 0 0 0.5in; text-indent: -0.25in"><b><span style="text-decoration: underline">Waste to Energy Market Size
and Trend</span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><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.</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"><img src="e3195_10q-002.jpg" alt="" />&#160;</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>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.</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 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></p>

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

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><img src="e3195_10q-003.jpg" alt="" />&#160;</p>

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

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&#160;<b>Source </b>: http://www.waste-management-world.com</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</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: justify"><b>Competition</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 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.</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 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;.</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 0 0 0.5in; text-indent: -0.25in"><b><span style="text-decoration: underline">Defining Waste Management
for Municipal Applications</span></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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></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">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.</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>Biocrude, with its upgraded technologically
advanced systems, can improve quality of environment, ergo, life.</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">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
recognize the importance and need for waste management. Be it for financial, environmental, or health issues. Room for improvement
exists for the following:</p>

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    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">1.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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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    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">2.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">3.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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 0.5in; text-align: justify">&#160;</p>

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

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

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

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

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    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">1.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Secure, cost-effective long-term processing capacity for recyclables and organics.</span></td></tr>
</table>
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<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">2.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Improvement of effectiveness and efficiency of current waste systems/practices.</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0">&#160;</td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">3.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Elimination of MSW from going to landfills.</span></td></tr>
</table>
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<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">4.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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>
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<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">5.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Reduction of Greenhouse Gases and other environmental pollutants emitted into the atmosphere.</span></td></tr>
</table>
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<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">6.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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 0.75in; text-align: justify; text-indent: -0.25in">&#160;</p>

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    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">7.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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 style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0">&#160;</td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">8.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="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>
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<td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
<td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">9.</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0">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;).&#160;</td></tr>
</table>

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

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

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

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

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    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">a)</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Organics</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p>

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<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">b)</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Fuels</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p>

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<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">c)</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Recyclables</span></td></tr>
</table>
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<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">d)</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Inerts</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; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">e)</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Each category has its own distinct composite
classification. To achieve an optimal Waste 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.</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">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:</p>

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<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">1.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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: 0.5in">&#160;</p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">2.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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: 0.5in">&#160;</p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">3.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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: 0.5in">&#160;</p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">4.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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: 0.5in">&#160;</p>

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

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

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

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<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">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).</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><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 has to 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!</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 <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.</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">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:</p>

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

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0">
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; width: 0.25in; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; width: 0.25in; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Concrete production,
as a substitute material for Portland cement and sand</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Embankments and
other structural fills (usually for road construction)</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Grout and Flowable
fill production</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Waste stabilization
and solidification</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Cement clinkers
production - (as a substitute material for clay)</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Mine reclamation</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Stabilization of
soft soils</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Road sub base construction</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">As Aggregate substitute
material (e.g., for brick production)</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Mineral filler
in asphaltic concrete</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Agricultural uses:
soil amendment, fertilizer, cattle feeders, soil stabilization in stock feed yards, and agricultural stakes</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Loose application
on rivers to melt ice</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Loose application
on roads and parking lots for ice control</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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; text-align: justify">&#160;</p>

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<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 fly ash can also be marketed to the agricultural
industry for the following purposes:</p>

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; width: 24px; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; width: 24px; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">It improves permeability status of soil</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Improves fertility status of soil (soil health) / crop yield</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Improves soil texture</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Reduces bulk density of soil</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Improves water holding capacity / porosity</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Optimizes pH value</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Improves soil aeration and reduces crust formation</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Provides micro nutrients like Fe, Zn, Cu, Mo, B, Mn, etc.</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Provides macro nutrients like K, P, Ca, Mg, S etc.</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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; font-size: 10pt">
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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; font-size: 10pt">
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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; font-size: 10pt">
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Works as a liming agent</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Helps in early maturity of crop &amp; improves the nutritional quality of food crop</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Reduces pest incidence</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">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.</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">The recyclables can be easily sold to the recyclable industry milieu
(metals, glass, ceramics, etc.)</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 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).</p>

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

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<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 style="text-decoration: underline">BioCrude&#8217;s Integrated MSW to Energy Complex
for Municipal Applications</span></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">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).</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 material components (modules) of an Integrated
Municipal Solid Waste to Energy Complex are detailed as follows:</p>

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    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">1.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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: 0.5in">&#160;</p>

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    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">2.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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: 0.5in">&#160;</p>

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<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">3.</span></td>
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</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p>

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    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">4.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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: 0.5in">&#160;</p>

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    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">5.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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: 0.5in">&#160;</p>

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    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">6.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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: 0.5in">&#160;</p>

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    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">7.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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: 0.5in">&#160;</p>

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    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">8.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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: 0.5in">&#160;</p>

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    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">9.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><img src="e3195_10q-004.jpg" alt="" />&#160;</p>

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

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

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<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">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:</p>

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

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    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">1.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p>

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<tr style="vertical-align: top; font-size: 10pt">
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    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">2.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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: 0.5in">&#160;</p>

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<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">3.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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: 0.5in">&#160;</p>

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

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<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0; width: 24px"><span style="font-size: 10pt">&#160;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0; width: 24px"><span style="font-size: 10pt">5.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="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">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><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.</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">All of 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).</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>Target Market </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 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.</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>Strategies of the Company </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">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.</p>

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

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<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 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.</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&#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.</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 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.</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 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.</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 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.</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>Prior Activities of BioCrude Canada</b></p>

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

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

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<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">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.</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">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).</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">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.</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, 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.</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 0 0 57pt; text-align: justify; text-indent: -57pt">2009 &#8211; 2020
- <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, 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.</p>

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

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Pricing initiatives</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">BioCrude has developed a number of 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 in excess
of 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.</p>

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

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<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>Cost controls and operating efficiencies</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 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.</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>Integrated Waste to Energy development initiatives
with long term Concession Agreements</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">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.</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>Company milestones and plan of execution</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">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.</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&#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.</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&#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).</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">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.</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">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).</p>

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

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<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 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, possible engagement can be realized within 6 to 12 months following
that initiative (being cognizant of bureaucracy and red tape procedures of government).</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">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.</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">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).</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, 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 presents.</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 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.</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, 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).</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 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.</p>

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

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<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, 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.</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 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.</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 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.</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">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.</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">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.</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&#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.</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">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.</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 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 2021 through sales of equity, debt and convertible securities, if it is deemed necessary.</p>

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

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<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&#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.</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&#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.</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">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.</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"><span><b>Different
facets and schedule of events for 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">&#160;&#160;</p>

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

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">1.</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">2.</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160; &#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">3.</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">4.</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">5.</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">6.</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">7.</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">8.</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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"><b>&#160;</b></p>

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

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

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>(Fully executed; timeline:&#160;</b>it took approximately 8 months<b>)</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"><b>B. Organizational Matrix: Construction, Management, Operations
and Maintenance of Project</b></p>

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">1.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Flowchart of
    management staff</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">2.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">3.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Flowchart of
    Engineering, Procurement and Construction</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">4.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Flowchart of
    Operations Complex and Maintenance</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">5.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

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

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">1.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Opening of the office in Moroni, Autonomous Island of Grande Comore:&#160;expected completion date September 2021</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; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">2.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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 2021 (preliminary core)</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; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">
        <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>
        <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">3.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Recruitment of human resources in Canada (for key management positions):&#160;expected completion date September 2021</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; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">4.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="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: 0.5in">&#160;</p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">5.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Analysis of Municipal Solid Waste:&#160;expected completion date September 2021</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; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">6.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Study of the site and soil studies:&#160;expected completion date October 2021</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; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">7.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Detailed Engineering plans:&#160;expected completion date October 2021</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; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">8.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Detailed plan of the development strategy of the complex:&#160;expected completion date October 2021</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p>

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<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; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">9.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Hiring of project manager(s) and subcontractors (either through reference or through tender):&#160;expected completion date September 2021</span></td></tr>

<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0">&#160;</td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">10.</span></td>
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</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>(Timeline:&#160;</b>6 to 8 months from time = present)</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"><b>D. Human Resource List for Project Implementation</b></p>

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">1.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Project management</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; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">3.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Structural Engineers</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; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">4.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Electrical Engineers</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">5.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Mechanical Engineers</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; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">6.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Environmental Engineers</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; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">7.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Geological Engineers&#160;</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">8.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Designers&#160;</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">9.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Architects&#160;</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">10.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Planners</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; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">11.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Buyers</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; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">12.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Supply Agents</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; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">13.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Cost Controllers</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; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">14.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Training Coach</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p>

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

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

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

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">1.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Program Implementation
    Plan (<b>Project Execution Plan</b>&#160;&#8220;<b>PEP</b>&#8221;)&#160;Completed</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">2.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">3.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">4.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">5.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">6.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in">&#160;</p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">7.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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: 0.5in">&#160;</p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p>

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

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">1.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">2.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Strategic planning
    and economic analysis&#160;Completed</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">3.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">The selection
    of the field&#160;Completed</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">4.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Preliminary
    engineering&#160;Completed</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 72px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9658;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Economic analysis
    and project risks</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 72px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9658;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 72px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9658;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 72px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9658;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">The technology
    research, analysis and conceptualization</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">5.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Reliability
    analysis&#160;Completed</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">6.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">7.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">8.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">9.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">10.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">11.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">12.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">13.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">14.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">15.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">The
    economic and financial analysis (Business Plan) for the preparation of the application for funding&#160;Completed; we have
    already opened up 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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">16.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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 up 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: 0.5in">&#160;</p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">17.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">18.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">The operation
    and maintenance of the MSW-Energy complex&#160;NA for Development timeline</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">19.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">20.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>G. Environmental Impacts Analysis</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"><b>The evaluation process:</b></p>

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">1.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">The
    assessment of critical elements used in the development of the project, emissions harmful to the environment, leaching into
    soil, drainage, etc.&#8230;</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">2.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Potential
    erosion, the effects of the use and release of public waters on the tributaries, the adjacent ecological systems to the site,
    etc.&#8230;</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">3.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">The number
    of vehicles (trucks, cars, etc.&#8230;) and emissions of pollutants</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">4.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">The energy
    used in the complex and cooling of various buildings</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">5.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Materials used
    for the manufacture of the floor</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">6.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Building materials
    used for roofs</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">7.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Management
    and treatment of municipal solid waste (MSW)</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">8.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">The quality
    of water and air</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">9.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">The negative
    environmental impacts and mitigation, thereof</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">11.</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Effect of development
    on sensitive regional systems sent by either air or by ground water systems</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><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).</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>Planning and Timetable for the Project</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">The Summary forecast for the following tasks of the project planning
encompasses a timeline of 6 to 8 months:</p>

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">&#9658;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="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: 0.5in">&#160;</p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">&#9658;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="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: 0.5in">&#160;</p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">&#9658;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">Study and preparation of detailed plans of Engineering.</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 ground breaking ceremony).</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>Material Agreements</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">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.</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">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 municipality of Moroni, which are as follows:</p>

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

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

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

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

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

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">*<b>A Revolving Letter of Credit (RLC)</b>,
replenished quarterly (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.</p>

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

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<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">* 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.</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 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.</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">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.</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 style="text-decoration: underline">Nota Bene</span>: </b>The following contractual
attributes are intrinsic to the aforesaid contractual (Concessions) agreements:</p>

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9658;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9658;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9658;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9658;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9658;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9658;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9658;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9658;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9658;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><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; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9658;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif"></span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9658;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9658;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

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

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

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<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">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.</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">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.</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">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 character<span style="font: 10pt Times New Roman, Times, Serif">istics:</span></p>

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">1.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

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

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">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;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">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.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><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.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&#160;</p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&#160;</p>

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

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</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">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.</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">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.</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">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.</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">On 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.</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">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 presents, is on hold due (awaiting feedback from the federal government of Union of the Comoros).</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">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.</p>

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

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<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">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:</p>

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">1.</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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: 0.5in">&#160;</p>

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

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

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>BioCrude has
continued its lobbying works for the pursuit of waste management concessions within Africa, and Europe. It has sent delegations to the
Republic of Uganda, the United Republic of Tanzania, the Republic of Mozambique, the Republic of Kenya, the Republic of Cameroon, Republic
of C&#244;te d'Ivoire, the Hellenic Republic, and the Republic of Belarus. BioCrude&#8217;s delegations have met with the different intervening
divisions of government (ministries [environment, energy, finance, etc.&#8230;], municipalities, technical divisions, etc.&#8230;), as
well as leaders of those countries (Presidents/Prime Ministers). BioCrude has received favorable feedback for its waste management proposal
from ALL visited countries, and is, as of these presents, work in progress.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.1pt; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>Going Concern</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 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.</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&#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.</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>Plan of Operation</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">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.</p>

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

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<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 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).</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><i>Asset Management</i></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">BioCrude&#8217;s capital strategy will be focused
in two main areas:</p>

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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 0.5in; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</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><i>Revenue Streams</i></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 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.</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><i>Plant Operating Revenues</i></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">This revenue stream is comprised of the following
four (4) elements;</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><i>Tipping Fees</i></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">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.</p>

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

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<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><i>Sales of Power</i></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">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.</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><i>Sales of Carbon Credits</i></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 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.</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><i>Sales of By-Products </i></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 by-products of recycled materials and fertilizer
will be marketed and sold to third parties:</p>

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9658;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">&#9658;</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">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: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

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

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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.</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><i>Engineering, Procurement and Construction
Fees</i></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">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.</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><i>Servicing Fees</i></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">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.</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><i>Licensing Fees</i></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">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.</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><i>Results of Operations</i></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"><b><i>For the nine months period ended September
30, 2021 and 2020</i></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"><b><span style="text-decoration: underline">Revenue</span></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">We did not generate revenue during the nine
months period ended September 30, 2021 and 2020.</p>

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

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<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 style="text-decoration: underline">Costs and Expenses</span></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">During the nine months period ended September
30, 2021 there were $360,733 of operating expenses consisting of general and administrative expenses. Operating expenses for the
prior year ended December 31, 2020 was $283,752 consisting of general and administrative.</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 style="text-decoration: underline">Liquidity and Capital Resources</span></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">As at September 30, 2021, the Company had $18,246
in cash and did not have any other cash equivalents. The following table provides detailed information about our net cash flow
for the nine months period ended September 30, 2021 and 2020. To date, we have financed our operations through the issuance of
stock and borrowings.</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">In summary, our cash flows were as follows:</p>

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

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
    <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the year ended September 30,<br /> 2021</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 56%; text-align: left">Net cash used in operating activities</td><td style="width: 8%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(298,798</td><td style="width: 1%; text-align: left">)</td><td style="width: 8%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(279,584</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Net cash used in investing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(92</td><td style="text-align: left">)</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></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">389,250</td><td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Effect of exchange rate changes on cash</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Net increase (decrease) in Cash</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(91,725</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">109,666</td><td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Cash, beginning of year</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">109,971</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">305</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Cash, end of year</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">18,246</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">109,971</td><td style="padding-bottom: 1pt; text-align: left">&#160;</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">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.</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>Operating activities</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">Net cash used in operating activities was $298,798
for the nine months period ended September 30, 2021 and $279,584 for the year ended December 31, 2020.</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>Investing activities</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">Net cash used in investing activities was $
92 and $ Nil for the nine months period ended September 30, 2021 and the year ended December 31, 2020, respectively.</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>Financing activities</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">Net cash provided by financing activities was
$207,165 and $389,250 for the nine months ended September 30, 2021 and the year ended December 31, 2020, respectively.</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">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 in order 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.</p>

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

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<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">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.</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">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.</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><i>Off-Balance Sheet Arrangements</i></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">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.</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><i>Critical Accounting Policies</i></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 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.</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">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.</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><i>Stock-Based Compensation</i></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 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.</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>Critical Accounting Policies</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">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.</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>Available Information</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">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>).</p>

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

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<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">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 three-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:</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">Public Reference Room</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">100 F. Street N.W.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">Washington, D.C. 2054900405&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">Telephone: (800) SEC-0330</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><span id="a_003"></span><span style="text-decoration: underline">ITEM 3</span>. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK</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 is not exposed to market risk related
to interest rates or foreign currencies.</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="a_004"></span><span style="text-decoration: underline">ITEM 4</span>. CONTROLS AND PROCEDURES</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"><i>Evaluation of Disclosure Controls and Procedures
</i></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">As required by Rule 13a-15 under the Securities
Exchange Act of 1934 (the &#8220;1934 Act&#8221;), as of December 31, 2019, 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 September 30, 2020.</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">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.</p>

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

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

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><b><span style="text-decoration: underline">PART II OTHER 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; text-align: justify"><b><span id="a_005"></span><span style="text-decoration: underline">ITEM 1</span>. LEGAL PROCEEDINGS</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 is not a party to any legal proceedings.</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="a_006"></span><span style="text-decoration: underline">ITEM 1A</span>. RISK FACTORS</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">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.</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="a_007"></span><span style="text-decoration: underline">ITEM 2</span>. UNREGISTERED SALES OF EQUITY
SECURITIES AND USE OF PROCEEDS</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">There were no sales of unregistered equity
securities during the covered time period.</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="a_008"></span><span style="text-decoration: underline">ITEM 3</span>. DEFAULTS UPON SENIOR SECURITIES</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">None.</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="a_009"></span><span style="text-decoration: underline">ITEM 4</span>. SUBMISSION OF MATTERS TO
A VOTE OF SECURITY HOLDERS</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">None.</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="a_010"></span><span style="text-decoration: underline">ITEM 5</span>. OTHER INFORMATION</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">None.</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="a_011"></span><span style="text-decoration: underline">ITEM 6</span>. EXHIBITS AND REPORTS ON FORM
8-K</b></p>

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">(a)</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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: 0.5in"><b>&#160;</b></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top; font-size: 10pt">
<td style="border-bottom: black 1pt solid; padding: 0; text-align: center; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><b>Exhibit
No.</b></span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: black 1pt solid; padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><b>Description</b></span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; width: 10%; text-align: center; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">31.1</span></td>
<td style="padding: 0; width: 1%; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; width: 89%; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif; color: windowtext"><a href="e3195_ex31-1.htm">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.</a></span></td></tr>
<tr style="vertical-align: top; background-color: white; font-size: 10pt">
<td style="padding: 0; text-align: center; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">31.2</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif; color: windowtext"><a href="e3195_ex31-2.htm">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.</a></span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; text-align: center; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">32.1</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif; color: windowtext"><a href="e3195_ex32-1.htm">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.</a></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; font-size: 10pt">
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0">&#160;</td>
    <td style="padding: 0; width: 24px; font-size: 10pt; text-indent: 0"><span style="font-size: 10pt">(b)</span></td>
    <td style="padding: 0; text-align: justify; font-size: 10pt; text-indent: 0"><span style="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">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">None.</p>

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

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<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"><b>SIGNATURES</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">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.</p>

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td>
<td colspan="2" style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Date:
November 8 2021</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; width: 50%; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; width: 5%; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; width: 45%; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td>
<td colspan="2" style="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif"><b>Biocrude
Technologies USA, Inc.</b></span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td>
<td colspan="2" style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Registrant</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">By:</span></td>
<td style="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">/s/
John Moukas</span></td></tr>
<tr style="vertical-align: top; font-size: 10pt">
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0; font-size: 10pt; text-indent: 0"><span style="font: 10pt Times New Roman, Times, Serif">Chief Executive
Officer</span></td></tr>
</table>

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

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">43</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
September 30, 2021
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 Section13 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 September
30, 2021, the issuer had
50,710,386
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
41
Item 4.
Controls and Procedures
41
PART
II – OTHER INFORMATION
Item 1.
Legal Proceedings
42
Item 1A.
Risk Factors
42
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
42
Item 3.
Defaults Upon Senior Securities
42
Item 4.
Submission of Matters to a Vote of Security Holders
42
Item 5.
Other Information
42
Item 6.
Exhibits
42
I
PART I – FINANCIAL INFORMATION
ITEM 1
. FINANCIAL STATEMENTS
BIOCRUDE TECHNOLOGIES
USA, INC.
CONSOLIDATED BALANCE
SHEETS
(EXPRESSED IN US DOLLARS)
(UNAUDITED)
UNAUDITED
September 30,
2021
AUDITED
December 31,
2020
ASSETS
CURRENT ASSETS
Cash
$
18,246
$
109,971
Property, plant and equipment
17,306
19,697
TOTAL ASSETS
$
35,552
$
129,668
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable and accrued liabilities
$
3,434
$
21,400
Accounts payable and accrued liabilities - related parties (Note 6)
1,482
104,727
Convertible notes (Note 3)
—
—
Loans payable (Note 4)
136,903
152,169
TOTAL LIABILITIES
$
141,819
$
278,296
STOCKHOLDERS' DEFICIT
Common stock, $
0.001
par value,
75,000,000
shares authorized,
50,710,386
shares outstanding (December 31, 2020 -
50,621,336
)
$
50,711
$
50,622
Additional paid in capital
8,523,756
8,167,646
Subscription receivable
—
(
50,000
)
Accumulated other comprehensive income
28,669
28,654
Deficit
(
8,707,798
)
(
8,343,939
)
TOTAL STOCKHOLDERS' DEFICIT ATTRIBUTALBLE TO EQUITY SHAREHOLDERS OF THE COMPANY
(
104,662
)
(
147,017
)
NON-CONTROLLING INTEREST
$
(
1,605
)
$
(
1,611
)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
$
35,552
$
129,668
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 AND
NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020
(EXPRESSED IN US DOLLARS)
(UNAUDITED)
For the three months ended
For the nine months ended
September
30, 2021
September
30, 2020
September
30, 2021
September
30, 2020
REVENUE
$
—
$
—
$
—
$
—
OPERATING EXPENSES
General and administrative
45,880
59,506
360,733
101,902
Total operating expenses
45,880
59,506
360,733
101,902
LOSS FROM OPERATIONS
(
45,880
)
(
59,506
)
(
360,733
)
(
101,902
)
Interest expense
(
1,000
)
(
1,121
)
(
3,126
)
(
3,604
)
Income tax expense
—
—
—
—
NET LOSS
$
(
46,880
)
$
(
60,627
)
$
(
363,859
)
$
(
105,506
)
OTHER COMPREHENSIVE LOSS
Exchange differences on translating foreign operations
9
—
15
(
27
)
Exchange differences on translating non-controlling interest
4
—
6
—
TOTAL COMPREHENSIVE LOSS
$
(
46,867
)
$
(
60,627
)
$
(
363,838
)
$
(
105,533
)
NET LOSS ATTRIBUTABLE TO
Equity shareholders of the Company
$
(
46,880
)
$
(
60,627
)
$
(
363,859
)
$
(
105,506
)
Non-controlling interest
—
—
—
—
NET LOSS
$
(
46,880
)
$
(
60,627
)
$
(
363,859
)
$
(
105,506
)
TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO
Equity shareholders of the Company
$
(
46,871
)
$
(
60,627
)
$
(
363,844
)
$
(
105,525
)
Non-controlling interest
4
—
6
(
8
)
TOTAL COMPREHENSIVE LOSS
$
(
46,867
)
$
(
60,627
)
$
(
363,838
)
$
(
105,533
)
Net loss per common share basic and diluted
$
(
0.00
)
$
(
0,00
)
$
(
0.01
)
$
(
0.00
)
Weighted average number of common shares outstanding basic and diluted
50,650,850
50,503,889
50,650,850
50,503,889
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, 2020
50,621,336
$
50,622
$
8,167,646
$
28,654
$
(
8,343,939
)
$
(
147,017
)
$
(
1,611
)
$
(
148,628
))
Stock issued for services
16,550
17
66,183
—
—
66,200
—
66,200
Subscription receivable
—
—
—
—
—
50,000
—
50,000
Stock issued for cash
42,500
43
169,957
—
—
—
—
170,000
Foreign currency translation
—
—
—
10
—
10
4
14
Net loss
—
—
—
—
(
163,796
)
(
163,796
)
—
(
163,796
)
Balance at March 31, 2021
50,680,386
$
50,681
$
8,403,786
$
28,664
$
(
8,507,735
)
$
(
24,604
)
$
(
1,607
)
$
(
26,211
))
Stock issued for services
30,000
30
119,970
—
—
120,000
—
120,000
Stock issued for cash
—
—
—
—
—
—
—
—
Foreign currency translation
—
—
—
(
4
)
—
(
4
)
(
2
)
(
6
)
Net loss
—
—
—
—
(
153,183
)
(
153,183
)
—
(
153,183
)
Balance at June 30, 2021
50,710,386
$
50,711
$
8,523,756
$
28,660
$
(
8,660,918
)
$
(
57,791
)
$
(
1,609
)
$
(
59,400
)
Stock issued for services
—
—
—
—
—
—
—
—
Stock issued for cash
—
—
—
—
—
—
—
—
Foreign currency translation
—
—
—
9
—
9
4
13
Net loss
—
—
—
—
(
46,880
)
(
46,880
)
—
(
46,880
)
Balance at September 30, 2021
50,710,386
$
50,711
$
8,523,756
$
28,669
$
(
8,707,798
)
$
(
104,662
)
$
(
1,605
)
$
(
106,267
)
The accompanying notes to unaudited interim
consolidated financial statements
3
BIOCRUDE TECHNOLOGIES
USA, INC.
CONSOLIDATED STATEMENTS
OF CASH FLOWS
FOR THE THREE &
NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020
(EXPRESSED IN US DOLLARS)
UNAUDITED
September 30, 2021
UNAUDITED
September 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(
363,859
)
$
(
105,507
)
Adjustments to reconcile net loss to net cash used in operating activities
Accretion and interest expenses
3,127
3,605
Amortization
2,483
2,916
Stock issued for services
186,198
54,000
Forgiveness accrued interest
—
Foreign exchange
(
5,536
)
(
21,274
)
Changes in operating assets and liabilities
Prepaid expenses
—
—
Accounts payable and accruals
(
17,966
)
(
13,441
)
Accounts payable and accrued liabilities - related party
(
103,245
)
(
124,789
)
Net cash used in operating activities
(
298,798
)
(
204,490
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible debt
Proceeds from private placement
220,000
200,000
(Repayment) Proceeds of loans payable
(
12,835
)
9,250
Net cash provided by financing activities
207,165
209,250
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment
(
92
)
—
Net cash used in financing activities
(
92
)
—
Effect of exchange rate changes on cash
—
—
CHANGE IN CASH DURING THE PERIOD
(
91,725
)
4,760
CASH BEGINNING
109,971
305
CASH ENDING
$
18,246
$
5,065
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for income taxes
$
—
$
—
Interest paid
$
—
$
—
Noncash investing and financing activities:
Beneficial conversion feature discount related to the issuance of convertible debt
$
—
$
—
Conversion of convertible debt to common stock
$
—
$
—
Stock issued for services
$
—
$
14,000
Forgiveness accrued interest
$
—
$
—
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, 2020 included in the Company's 2020 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 nine-month period ended September 30, 2021 are not necessarily indicative of the results that may be expected for
the year ending December 31, 2021.
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 $
8,707,798
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.
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
70
% owned subsidiary, Biocrude Technologies (Hong Kong) Limited ("Biocrude HK"). All significant
inter-company transactions and balances have been eliminated upon consolidation.
5
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).
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 September 30, 2021, the Company
does not have cash equivalents.
6
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.
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 nine months period ended
September 30, 2021 and did not have any significant leases as at December 31, 2020. 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 September 30, 2021, there are
no
outstanding
convertible loans.
7
NOTE 4 –
LOANS PAYABLE
As at September 30, 2021, the Company has loans
payable of $
108,088
(December 31, 2020 – $
126,481
) in principal and accrued interest of $
28,815
(December 31, 2020 - $
25,688
)
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 September 30, 2021, $
25,082
(December 31, 2020 - $
32,291
) was due to a director
of the Company.
NOTE 5 -
RELATED PARTY TRANSACTIONS
As at September 30, 2021, the "CEO"
of the Company and a director had advanced the Company a cumulative $
1,482
(December 31, 2020 - $
104,727
) 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 September 30, 2021, the Company had
50,710,386
(December 31, 2020 -
50,621,336
) shares of common stock issued and outstanding, respectively.
In Q3 2021, the Company has
no
common stock
issued.
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.
10
Conventional Municipal Solid Waste Management
employs one or more of the following processes:
►
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:
●
EU
Landfill Diversion Directive
●
recycling
targets
●
climate
change regulations
11
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!
Source
: http://www.waste-management-world.com
12
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
recognize 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).
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.
13
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).
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").
14
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 Waste 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
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.).
15
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 has to 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 sub base construction
●
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,
16
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).
17
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).
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.
18
9.
Green Belt
: will be developed for aesthetic purposes and municipal environmental conformities.
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.
19
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.
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 of 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.
20
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.
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.
21
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).
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 – 2020
-
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, 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 a number of 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 in excess
of 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.
22
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.
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).
23
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, possible engagement can be realized within 6 to 12 months following
that initiative (being cognizant of bureaucracy and red tape procedures of government).
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 presents.
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.
24
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.
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 2021 through sales of equity, debt and convertible securities, if it is deemed necessary.
25
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.
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 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.
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
26
(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 to Energy Complex
1.
Opening of the office in Moroni, Autonomous Island of Grande Comore: expected completion date September 2021
2.
Recruitment and training of human resources in Moroni, Autonomous Island of Grande Comore (for engineering, management, operation and maintenance): expected completion date September 2021 (preliminary core)
3.
Recruitment of human resources in Canada (for key management positions): expected completion date September 2021
4.
Preliminary Engineering: completed in preliminary proposal (generic)
5.
Analysis of Municipal Solid Waste: expected completion date September 2021
6.
Study of the site and soil studies: expected completion date October 2021
7.
Detailed Engineering plans: expected completion date October 2021
8.
Detailed plan of the development strategy of the complex: expected completion date October 2021
27
9.
Hiring of project manager(s) and subcontractors (either through reference or through tender): expected completion date September 2021
10.
Recruitment of Material and Equipment specialist suppliers, via reputation in the market place or tender: expected completion date October 2021
(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 up 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 up 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 ground breaking 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 municipality 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 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). 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 quarterly (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]
32
►
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
►
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*
* 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
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.
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 character
istics:
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.
34
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.
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.
On 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 presents, 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.
35
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.
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 presents, 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).
BioCrude has
continued its lobbying works for the pursuit of waste management concessions within Africa, and Europe. It has sent delegations to the
Republic of Uganda, the United Republic of Tanzania, the Republic of Mozambique, the Republic of Kenya, the Republic of Cameroon, Republic
of Côte d'Ivoire, the Hellenic Republic, and the Republic of Belarus. BioCrude's delegations have met with the different intervening
divisions of government (ministries [environment, energy, finance, etc.…], municipalities, technical divisions, etc.…), as
well as leaders of those countries (Presidents/Prime Ministers). BioCrude has received favorable feedback for its waste management proposal
from ALL visited countries, and is, as of these presents, work in progress.
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.
36
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).
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.
37
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.
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 nine months period ended September
30, 2021 and 2020
Revenue
We did not generate revenue during the nine
months period ended September 30, 2021 and 2020.
38
Costs and Expenses
During the nine months period ended September
30, 2021 there were $360,733 of operating expenses consisting of general and administrative expenses. Operating expenses for the
prior year ended December 31, 2020 was $283,752 consisting of general and administrative.
Liquidity and Capital Resources
As at September 30, 2021, the Company had $18,246
in cash and did not have any other cash equivalents. The following table provides detailed information about our net cash flow
for the nine months period ended September 30, 2021 and 2020. To date, we have financed our operations through the issuance of
stock and borrowings.
In summary, our cash flows were as follows:
For the year ended September 30,
2021
For the year ended December 31,
2020
Net cash used in operating activities
$
(298,798
)
$
(279,584
)
Net cash used in investing activities
(92
)
—
Net cash provided by financing activities
207,165
389,250
Effect of exchange rate changes on cash
—
—
Net increase (decrease) in Cash
(91,725
)
109,666
Cash, beginning of year
109,971
305
Cash, end of year
$
18,246
$
109,971
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.
Operating activities
Net cash used in operating activities was $298,798
for the nine months period ended September 30, 2021 and $279,584 for the year ended December 31, 2020.
Investing activities
Net cash used in investing activities was $
92 and $ Nil for the nine months period ended September 30, 2021 and the year ended December 31, 2020, respectively.
Financing activities
Net cash provided by financing activities was
$207,165 and $389,250 for the nine months ended September 30, 2021 and the year ended December 31, 2020, 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 in order 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.
39
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.
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
).
40
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 three-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, 2019, 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 September 30, 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.
41
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.
42
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:
November 8 2021
Biocrude
Technologies USA, Inc.
Registrant
By:
/s/
John Moukas
Chief Executive
Officer
43