INTERVIEW WITH DEFKALION. I. BUSINESS

Interview conducted by Peter Gluck with DGTG management
(2012-06-25 Via Skype

When was your company established and with what purpose?

Praxen Defkalion Green Technologies (Global) Ltd. (DGTG) was established in 2011 for the sole purpose to become a global player in the emerging field of Low Energy Nuclear Reactions (LENR).
DGTG is registered in Cyprus.

What was the experience in LENR?

A collection of leading scientists on the theoretical approach was gathered under our umbrella after the break up with Andrea Rossi with the aim to establish proprietary technology in the field.

Were you successful?

Research and Development is the name of the game and we have excelled to the point where we can see a valid and functioning commercial product for a variety of applications within the coming months. Third party tests from internationally acclaimed entities as well as leading global technology players in both business and academia have been actively supporting our work.
Success is always relative and is not only a one off occurrence; it is an ongoing progress and we are very excited each and every day. The LENR field has reached a critical mass of research and understanding. Laboratory tests have been validated recently by several inventors and scientists in Italy, Japan and America. Our results in Greece are considered to be the most advanced. We are nearing a huge success with an international energy ‘breakout’.

What is the company’s view on the immediate next steps in LENR?

Over the last 15 years we have seen solid, unambiguous evidence supporting the existence of LENR as a new thermal energy source. The time has come when this must be proven and publicized. Soon the world will receive public announcements towards the fact that LENR is real. This will undoubtedly change the mentality of investments towards energy R&D, which to date have been
dealt with as fringe science. DGTG is at the forefront of this new era of clean, green and inexpensive limitless energy.

At what stage is the company’s technology?

DGTG is currently finalising an industrial prototype ready to be presented as a
commercial product for market entry within 2012. Our products will provide all people – end users – with a viable, low cost and green energy source, as a solution to the world’s energy needs. Of course, while we are working behind closed doors on many fine tuning aspects, we are pursuing a regimented business plan approach which extends far beyond the nature of the technology.

How do you expect this disruptive technology to evolve with the
mass media?

Currently, LENR technology is little known beyond those who are ‘in the field’. The market does not seriously expect it to be commercialized soon. That perception will soon change. Starting with the publication of the first independent validations of our technology and continuing to grow with the first LENR products
soon to be introduced to the market, the mass media is expected to bombard the public with analysis of future LENR applications (especially as it everyone is stressed by the increasingly high costs of energy, environmental concerns and the scarcity of traditional energy sources).

What implications on existing energy sources do you expect LENR to have on a global scale?

It is unlikely that the commercialization of LENR technology by DGTG and others will have an immediate significant decrease in fossil fuel consumption. It will, however, have a very dramatic psychological impact. Investors will see the medium and longterm implications of significantly lower energy prices, and
consequentially lower the assessed value of soon-to-be obsolete
energy infrastructure, conventional energy companies, and longterm contracts for their relatively expensive products. As more resources will be devoted to new and better ways to exploit the LENR reaction, the price of energy in the future’s market will drop, reducing our dependence on fossil fuels and reducing the
negative environmental implications related to emissions.

How does DGTG expect to meet market entry challenges?

DGTG launch-strategy for this technology is focused on minimal risk of failure encompassed with fast speed, wide-ranging applications, many countries, competitive pricing, protection against industrial espionage, as well as international political support. There are far too many applications for this technology.
There is likely to be a logical evolution of market opportunity based on the ease of adoption and value of the technology to the other options it would be replacing, or enabling new uses.

How do you feel knowing that you hold the potential key to global economic change?

There are those who could have escaped into thought paralysis from the magnitude of this project’s implications. Indeed, we have been offered large sums of money by entities who wish to use this technology exclusively, which would have given us and our grandchildren financially carefree lives. However, while our core
team values profit and growth, we are sincere and committed to ensuring that this technology will have global social benefits.
Succeeding in this principle has just taken more time than expected.

Can you give a brief overview of your business development and global interest?

Many companies from 78 countries have already approached DGTG with an interest to become exclusive licensees to manufacture our Hyperion products, or to initiate joint R&D projects for new applications, or simply to purchase the thermal output of our units. They represent the following sectors:

• Fertilizer manufacturing
• Cement
• Drying kilns
• Food & Beverage
• Industrial heat and steam
• Commercial heat
• Electricity co-generation
• Domestic heat
• Household use
• Water desalination & purification
• Power production - Utilities
• Steam turbines
• Car propulsion
• Light aircraft turbines
• Marine propulsion
• Light aircraft

Can you explain your business plan in greater detail?

DGTG is primarily a technology licensing company with expected revenues being generated from OEM License Agreements and Joint Venture companies for further R&D of our technology.
The first category is simple. Our own product development will introduce a product we call the Hyperion. This Hyperion will be manufactured under license by other companies in as many countries as possible. DGTG selects one company as OEM from every country on the basis that they understand energy, have
manufacturing capabilities, are capable of handling national sales and distribution networks, and of course have the ability to incorporate technical support therein.

This means that you are working with very large companies?

Not really. We do not mandate that all of these actions be done by one company. We know that there will be partnerships to ensure the best outcome. We simply do not want to be part of each country’s modifications. Our aim is to assess each company’s ability to manage of these needs successfully.

I see. Please continue.

Licenses to build and sell Hyperion products are sold to companies with exclusivity in a given country for Euros 40.5 million. This represents one factory with maximum capacity to produce up to 300,000 units annually; (varying capacity and numbers of factories will change the license fee accordingly). DGTG shall guarantee to each of its OEMs that no other contracts will be licensed to
competitors in that specific country, and that the full transfer of knowledge on the product and its production will be transferred through training and transfer of knowledge. DGTG shall provide a full Transfer of Knowledge to each OEM Licensee concerning production, maintenance, installation, training and recharge
Hyperion products.

Are there many countries interested and how are you managing all the checks?

We have received interests from more than one thousand companies from 79 countries. It is very exciting and truly challenging to manage communication with them all. In actual fact, although at first we intended to conduct due diligence
(physical and documentation) we realized that finances and time restrictions did not permit us. So, we have relied our efforts on understanding the commitment level of each company through various other means. For sure, after the announcements of our technology’s validity, there will be an even greater demand on our work. The strain on our company’s resources will depend on the
breadth of our financing and the nature of our partners; which is currently being discussed.

Can you tell us who your investors are and what partners you have?

We have always maintained a high level of secrecy on our potential investors. Primarily due to the fact that such announcements are scheduled only with the presentation of the product. Of course, there are other reasons for keeping silent
as well, which touch on the strategic aspect of this geopolitical project. The entities behind our success will all receive the successful recognition at a time that is mutually agreed.

You mentioned that there is a second business approach …

Yes, it is the Joint Venture companies we are discussing. DGTG technology, proprietary know-how and knowledge will be used in several specific technology application areas with interested global players in the form of Joint Venture partnerships, where R&D is coordinated in Greece. Interested companies can partner with DGTG to use its core technology as an energy source through joint R&D to prepare specific new products according to their expertise as global leaders in their given industry, with global distribution rights thereafter. We have done enough innovation and by no means claim to have expertise in other areas. This project is successful because we believe in a win-win approach building on synergies and incorporating the sphere of influence to many sectors.

And is there an interest from companies?

DGTG is currently discussing possible partnerships with globallycompetitive companies: marine propulsion; water desalination; automobiles; small aircraft; mining/extraction and refining; telecom towers; cooling/heating; green-houses. Niche market applications for joint venture companies in R&D applications are
assessed many but we are still in early stages. We must first finish with our robust, tried and tested, operational Hyperion and then embark on these agreements. Nonetheless, as a business, we are entering into talks from now. Large companies are complex, careful and need their time. We understand this and are building our bridges from now.

Interesting, but what about companies that will want your energy for their own needs, such as multinational companies with factory locations globally? Where have you included them in your business plan?

Yes indeed, very important. Companies operating multiple locations around the world with large factories / installations having large energy needs will be serviced as large accounts. Tailor-made technical solutions will be given applicable to each company’s energy needs by DGTG and through our OEMs in
countries where applicable. Pricing agreements will be based on the volume of energy consumed (although this has yet to be confirmed). This category of accounts represents energy solutions that do not need distinct modifications on Hyperion units but rather, modifications on heat management and interoperability
for large units in the MW range.

Your business plan seems solid but what about your revenues?

DGTG’s revenue source will be from the sale of licenses on a per country basis and then from royalties received from units sold.
Of course, each R&D project under a new JV will create further
revenues as well.

You have said nothing about your industrial secret. Won’t that be part of your profit base?

For us, our industrial secret is much more than just the Nickel powder. We have constructed a product that will have more than 6 patents. Only one of them will be linked to Nickel. We expect a strong industrial espionage effort to know what is in
the powder. As such, although we are protecting this secret, our competitive edge is beyond the element of powder; it is in the total functionality of the product. As such, although we initially were going to be selling the powder, we will give it free to all our OEMs as part of the royalty scheme on their sales. Eventually
someone will copy it, so why base our revenues on something that could / will be copied?

.You mentioned patents. Why have we not seen any IP activity from DGTG?

[laugh] … For the reason that we do not want you to see. We value IP and will be filing for a number of patents (as mentioned previously), but the timing is critical for our business strategy and market entry.
Our company’s assets do not only include the IP. We have built a strong team, an international network of LENR contacts in business, academia, government, and science, and we are fine tuning an entire electronic hardware and software system for our Hyperion systems. These, coupled with the engineering design and implementation on product safety and security create a strong base for us to move forward alone. Public announcements and legal steps towards our proprietary know-how will follow at the right time.

You keep on referring to an announcement. When can we expect something?

Patience is a virtue … soon

What can you say about your technological achievements to date?

Again, patience is a virtue. This was meant to be a business discussion. Of course, you may have seen on the internet that we will be participating as speakers and presenters during the ICCF-17 in Daejeon, Korea. This should be enough as an indication.

Yes. Exciting. Thank you. You briefly touched upon the global impact of this technology. What, from your perspective, are the biggest global issues to be faced from your success?

It was based on a question of yours, I believe [laugh]. We have held many discussions with high level officials and global players and have come to the conclusion that this technology will undoubtedly impact the lives of many through:
• Huge impact on national economies and job creation
• Huge impact on climate change and carbon emissions
• Dynamic implications on global economy
• Makes low cost energy readily accessible to third world
countries
. Initiates entirely new field of scientific research
• Rebirth of high cost energy needing technologies

Of course, we remain humble and conservative in the fashion that these changes will take place. We do not see DGTG as the corner stone of all these changes but merely one of the many spark plugs that will tilt the world towards a new, dynamic and positive direction. Remember, we know that this revolutionary discovery is not only ours. We were simply first to put it into business. The
huge market impact that is expected in the hundreds of billions (conservatively speaking) will not only be attributed to DGTG’s rapid market entry. Our management and technical team, our company, will not be the only actively operating business in LENR.
We are getting ready for a whole new industry with new R&D and
new directions.

New Physics maybe?

That is not for me to say, we are a business. Possibly.

Thank you for your time.

Thank you.