Mr. Peter Ho reports

BAYSHORE PETROLEUM CORP. ANNOUNCES LICENSE AGREEMENT FOR DESULPHURIZATION OF HYDROCARBONS USING ULTRASONIC PROCESS

Bayshore Petroleum Corp. has entered into a master licence agreement with International Ultrasonic Technologies Inc. (IUT), a private technology company based in Carstairs, Alta., Canada. IUT owns nine U.S. patents and equivalent worldwide patents related to the use of ultrasonic waves in conjunction with catalyst to desulphurize hydrocarbons without adding hydrogen. The master licence agreement allows Bayshore to utilize the patented ultrasonic technology in all potential hydrocarbon applications in Canada. Under the terms of the master licence agreement, Bayshore will have an exclusive right to use and to sublicense the patented ultrasonic technology in Canada for 20 years. The master licence agreement also grants Bayshore a two-year option to acquire exclusive rights to this technology in other countries.

Ultrasonic desulphurization involves passing a hydrocarbon stream through an ultrasonic wave chamber with an added proprietary catalyst to separate sulphur from hydrocarbons in an economic manner. The traditional method of reducing the sulphur content of hydrocarbon streams using hydrogen is expensive and energy intensive. The patented ultrasonic wave process with catalyst is much more efficient and does not require high temperature, high pressure or hydrogen. The patented process has been field tested in different countries and successfully reduced sulphur content of different processed petroleum products, including natural gas liquids (NGL), gasoline, kerosene and diesel to less than 20 parts per million, which meets the ultralow-sulphur transportation fuel standards of many countries. Bayshore believes this technology has the potential to provide additional benefit to its planned heavy-to-light-oil cold catalytic cracking technology worldwide, and will contribute to upgrading raw, heavy and sour crude oil directly into light, sweet product fuel.

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