Statement of Environmental Compliance

    The Federal Recycling Technologies, Inc. (FRT) patented technology to recycle scrap tires
through
a pyrolysis process is designed to comply with stringent environmental considerations.

    The FRT process is designed to operate well within permittability levels.  For example,
the sulfur content in tires is never oxidized in the process.  The sulfur remains a solid and
becomes part of the carbon black stream.  The carbon black with sulfur content can be used
 in tire compounding.

    FRT's combustion chamber, providing indirect heat to the pyrolysis chamber, is kept under 2000°F
by introducing excess air to keep temperatures below the level which produces nitrogen oxides.

    The engine generator set will have a custom designed catalytic converter on its exhaust gas stack
to meet any regulatory environmental requirements.

PLANT DISCHARGES

SOLID WASTE
Filter cake (diatomaceous earth),
   Tire Fabric (fiberglass) and Tire
   washdown slurry                              240 Tons/Year
Office and Lab Waste                            4 Tons/Year

LIQUID WASTE
Sanitary waste water                        500 gallons per day
Tire Wash                                          500 gallons per day
Process Water                                  None discharged

HAZARDOUS WASTE                    None discharged

CHEMICAL WASTE                        None discharged

OIL AND SMOKE                             None discharged

ENGINE GENERATOR STACK GAS   
NOx                                 <5.0 lbs/hr
CO                                  <5.0 lbs/hr
SO2                                <0.6 lbs/hr
VoC                                <5.0 lbs/hr

FURNACE STACK GAS
H2S                                <10 parts/M - 0.1 lbs/hr
NOx                                <10 parts/M = 0.1 lbs/hr
SO2                                <10 parts/M = 0.1 lbs/hr
CO                                  <10 parts/M = 0.1 lbs/hr
PM10                             <.02 lbs/hr

M = million