Hi, Tim from Vancouver… Please find in yellow my replies…

Hi Bernard,

In the last News Release (Sept 29), in the last paragraph before the "abouts", you state (copied below) that HPQ will start the process to undergo a change in classification that requires TSX and shareholder approval.

Some questions if I may:

Is this reclassification the primary reason for this MOU?

Nope, getting an option on a potentially game-changing technology is the reason for the transaction… (I do have to agree with some other poster, you are way overanalysing this, heck I am a capitalist, my primary reason for doing anything is generating profits, not work program for bureaucrats because that what filing a reclassification entails…)

Was this MOU structured purposefully so that it would trigger such a change or could the MOU have been structured in a different way so as to "not" trigger a reclassification?

Actually, the MOU was purposefully structured to attain the commercial goals we were seeking to attain, all the while not triggering an immediate reclassification demand, (because failing that could have resulted in the stock being halted until we filed the documents and obtain shareholder approval). With the TSX V approval of the transaction, we seem to have achieved our goals so far.  Next step, technology validation.

The most important objective here must be to get HPQ "in the Tech game" with respect to being able to apply for government grants that are only available to "tech" companies and not "mining" companies.  That you needed a "tech vehicle" to get from Montreal's Mining district to the Technology district and EBH2 came driving by at 3am... offering HPQ a lift.  Regardless of whether or not the EBH2 technology "pans out" (I truly do hope it will generate more gas that what it has so far), it does seem to me (and not only me) that it may have already served it's primary purpose.

I don’t understand your last paragraph, you seem to be talking about an alternative reality.  We did not need this transaction to become a tech company, we just need to meet the TSX-V listing requirements for being a tech company, file the appropriate paperwork and get shareholder approval…But doing it this way is more advantageous and should simplify the regulatory process.  Finally, how many times must I repeat the same point, we are doing the EBH2 transaction because we believe that there is a very high probability that the technology works…

Regards,

Bernard in Montreal, the CEO of HPQ…