Provides a general overview of EnerFuel\'s fuel cell electric vehicle range extender

1. Fuel Cells as EV Range Extenders:A Near-Term Fuel Cell Solution 1501 Northpoint Parkway, Suite 101 West Palm Beach, FL 33407 (561) 868-6720

2. Ener1 Family Ener 1 is the Group Head Nasdaq: HEV Worldwide HQ: New York, New York USA European HQ: Paris, France EnerDel is developing Lithium Ion batteries to improve the cost and performance of electric vehicles. NanoEner is developing new, cutting-edge methods of material deposition and thin films using Nanotechnology. EnerFuel is developing technologies and products that advance the performance of fuel cells and enable increased applicability to near term markets. Enertech is the 3rd largest Li-Ion battery producer in Korea. EnerTech ensures the cost of prodution for Li-Ion batteries are competitive. EnerDel is the only company in the USA with the capability in place to produce large lithium ion batteries on a mass scale. EnerDel Japan is working on material & cell chemistry & manufacturing processing for lithium batteries. Chungju, South Korea Indianapolis, Indiana USA West Palm Beach, Florida USA Fort Lauderdale, Florida USA Japan

4. Reduces required battery size

5. Eliminates fuel cell transient operation

6. Reduces fuel cell required start-up timeHT-PEM Fuel Cell High efficiency power High energy density Eliminates reformate clean-up, Reduces reformer cost EV Range Extender Fuel Reformer Eliminates need for hydrogen infrastructure Battery Immediate power Electrical energy storage Eliminates reformer transient operation Reduces required reformer size

7. Electric Vehicle Vision Fuels other than Hydrogen can be used EV Range Extender Gasoline Diesel E-85 E-100 Methanol Biodiesel Biobutanol DME (others) Grid Opportunity Charging Stations Opportunity: EV Range Extender produces no toxic emissions. Battery can be charged by fuel cell while vehicle is parked.

9. Partial range extension

10. Cabin heating and cooling

11. Battery protection

12. >10kW fuel cell

13. Unlimited range extension

14. Cabin heating and cooling

15. Battery protection

16. 3-10kW fuel cell

17. Range extension

18. Cabin heating and cooling

19. Battery protectionCharge Assisting Charge Sustaining Climate Control / Idle Climate Control / Idle Charge Sustaining Charge Assisting 3kW 10kW 1kW

20. 2008 EnerFuel Developed Range Extended EV 95mph max speed 8sec, 0 - 60mph (97kph)

22. Coolant loop / Coolant pumps

24. Reduction of BOP Impacts Costs of Lower Power Fuel Cells 80KW System 5 KW System Percentage of Automotive System Cost Percentage of Automotive System Cost 500,000 unit annual production of 80kW system Source: “Cost Analysis of PEM Fuel Cell Systems for Transportation” NREL/SR-560-39104 500,000 unit annual production of 5kW system Source:Estimation based on 80KW system = BOP components eliminated in HT-PEM fuel cell (24% of total cost)

25. 9.9 9.0 7.7 5.9 4.4 2.4 1.9 0.9 Energy Density of Potential Fuels 12.0 10.0 8.0 /L th 6.0 kWh 4.0 2.0 0.0 Methanol Ethanol Butanol Conventional U.S. Hydrogen Hydrogen Liquid gasoline conventional 5kpsig 10kpsig Hydrogen diesel

27. Too Heavy

28. Too Complicated

29. Too LargeLong Start-up Time (5-15 min) Traditional Fuel H2 LT-PEM Fuel Cell Reformer (Separates Hydrogen) CO Removal Energy H2+CO EnerFuel System The Solution Uses Existing Fuel Infrastructure, CO Removal is not necessary EnerFuel HT-PEM Fuel Cell Traditional Fuel Reformer (Separates Hydrogen) Energy H2+CO

31. Allows for simplified and low cost integration with reformers EnerFuel HT-PEM Operating Temp LT-PEM Op. Temp Source: Q. Lietal /Progress in Polymer Science 34 (2009) 449–477

32. Electric Vehicle Usage Model TRIP Here There Daily Commute Consists of a series of trips

33. Inputs to Monte Carlo* Analysis *Monte Carlo Analysis runs a large number of scenarios to determine the likelihood of potential outcomes. 14

34. TRIP EV Here There EV Vehicle Energy Needs 4.4kWh average trip energy 10kWh battery can power 97% of trips Daily Commute Consists of a series of trips 23kWh average commute energy

35. On average, a 5kW fuel cell stack would add 20kWh of range to the daily commute A 5kW fuel cell stack could reduce battery pack size by 9kWh with minimal risk of adversely affecting vehicle driving range Fuel Cell Adds Range and Could Reduce Battery Pack Size

36. Fuel Cell Reduces Probability of Needing to Charge During Day 20kWh Battery Only 15kWh Battery Only

37. Vehicle Efficiency Efficiency Definitions: = 72mpg 3.3 L/100km = 91mpg 2.6 L/100km

38. Fuel Cell Lowers EV Driving Range Cost 300 $25,000 $23,764 250 $20,000 219 $16,639 200 $15,000 $15,000 171 Avg. Vehicle Range (mi) Powerplant Price ($) 150 $10,000 100 100 $5,000 50 0 $0 20kWh Battery 20kWh Battery + 5kW FC 10kWh Battery + 5kW FC Avg. Vehicle Range (mi) Powerplant Price Assuming 200Wh/mi average drive energy consumption, reformer based 5kW FC system at $1750/kW, battery cost is $750/kWh.

39. Material Handling Stationary, Backup Power, microCHP Telecommunications E-Bikes <10kW System Enables Related Applications <10kW Fuel Cell Related Applications Drive Economies of Scale

40. Conclusions The use of Charge Assisting (3-10kW) fuel cell system Provides significant increase on daily vehicle driving range Reduces the capital cost associated with EV driving range Improves customer satisfaction (reduction of range anxiety) Fuel Cell Range Extender Provides Benefits Other Than Range Capacity to “run while parked” Climate control Battery life extension Systems developed in the same power level have other near-term applications Idle eliminators Backup power Micro-CHP Material Handling

41. Thank you Questions and Answers For more information please contact: Daniel A. Betts, PhD dbetts@enerfuel.com 1501 Northpoint Parkway, Suite 101 West Palm Beach, FL 33407 +1 (352) 258-1405