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Announcement - Source: Quadrise Fuels International plc

Quadrise, the emerging supplier of MSAR®, a low cost alternative to heavy fuel oil in the shipping, refining, and power generation markets, is pleased to announce that the further tests on Marine MSAR®2 have been completed and successfully demonstrated the general efficacy and performance of the fuel as intended.

The tests were carried out in late 2012 by A.P.Møller-Mærsk and a leading marine engine manufacturer on a state of the art 2-stroke marine diesel engine of a type installed on many modern vessels. A test report has been issued to each of the participating parties. The exact contents of the report are subject to detailed confidentiality provisions.

On the back of this test, Quadrise continues to anticipate that commercial volumes of Marine MSAR®2 will be produced progressively from mid-2013. This will allow the wider evaluation of performance across a representative range of vessels prior to full commercial roll-out during 2014, as previously stated. The plan for 2013, however, remains subject to third party approvals and the conclusion of detailed plans and commercial agreements with stakeholders during the coming months.

As advised in the company's updates to shareholders on 28 August and 14 December 2012, scientists and engineers from Quadrise and AkzoNobel Surface Chemistry AB successfully developed Marine MSAR®2, an enhanced version of the fuel, following initial sea trials that were completed in the first half of 2012. The enhanced fuel is based on advanced formulation techniques and highly efficient additives.

Commenting on this development, Ian Williams, Executive Chairman of QFI said: "The sea trials conducted last year provided valuable and pioneering insight into the use of Marine MSAR® as bunker fuel. We are delighted by the results of the recent tests on Marine MSAR®2 on an advanced 2-stroke engine that were a necessary precursor to the company entering the commercial phase during 2013. We look forward to concluding agreements with our partners and delivering commercial volumes of Marine MSAR®2 during 2013. Once again we thank our distinguished partners in this 'game changing' venture for their continued enthusiasm and support."