Executive Summary

De-Mining Systems UK Ltd
Executive Summary of the Commercial Company

The aim of this document is to give more information to individuals, companies or organisations who may be interested in seizing this opportunity to help humanity by investing in an exciting and potentially lucrative commercial venture.
Throughout this executive summary reference is made to additional supporting documentation, these additional documents are available on our web site, with the exceptions of; A- letter of support from Angelina Jolie (UNHCR goodwill ambassador) E- Endorsement and feasibility from military personnel. S-Specifications of other machines and price comparisons. W-who's who and bibliography, Z1-business plan and financial forecasts and Z1a onwards- C.V.s of some of the main team members. All of the documents are available by request as email attachments or as printed material or in electronic format on CD available through the post, If you require the supportive documentation, please fill in the information request form ref, L.

Section 1 - Contact Details

1.1 Project name
MDM (Modular De-Mining) Landmine removal and infrastructure development system.

1.2 Contact details
Full name: Roy Dixon
Organisation: De-Mining Systems UK Ltd
Address details PO Box 73
Hexham
NE47 0YT
United Kingdom

Telephone Number 0870 1269120
Mobile Number 07970 071968
Fax Number 0870 1269121
Email address roydixon@deminingsystems.co.uk

Section 2 - The Project

2.1 Description of the project
The subject of mine/ordnance clearance is considerably more complex than most people imagine, with the added complication of a multitude of related issues that must be considered. There are now well over forty different landmine removal systems available, but none of these systems are able to efficiently clear landmines to the required standards out in the real world.

One of the main reasons that past systems have not been successful is because most of them only operate in their singular task. However, landmine removal is a multi-tasked operation. By bringing together the means of transport, means of operation, vegetation removal and separation, personnel mine detonation, ordinance detection, GPS charting, soil conditioning, and crop planting, for the first time it has become possible to break the mould in mine clearance and implement a collaboration of technologies into a symphony of simultaneous production, carried out by one machine.

Through this "Turning Minefields into Cornfields" project we are attempting to promote agricultural sustainability and make mine clearance more economically viable. By grasping these new technologies and implementing new ideas, we now have an investment opportunity combined with an opportunity to help humanity. Through investment, we can begin to turn back the hands of time and start returning the land back to its original purpose, that of supporting humanity.

We strongly believe that our concept inspires all who get involved, encouraging individuals and companies to provide whatever help they can, be it a service, or initial funding. The people involved in the project are very determined and will carry the project forward. We believe that the unique versatility of the machine and the immediate appeal to the rapidly expanding landmine removal contractors market, positions it well in terms of sales.

We have problems, just like everybody else. All of the work so far had been done on a voluntary/charitable basis. This has limited the resources available to promote the commercial business and to gain valuable support from large organisations. Obtaining sufficient funds to turn the 'dreams' into reality is hard work. Some large corporations are only prepared to make donations or investments when they can see other money in the bank to act as a gearing mechanism. It's a 'chicken and egg' situation although this problem should be solved soon. The adversity this problem caused has made those involved even more determined than ever, building a strong base of committed people.

The graph on page 4 of document Z, shows some of the key players in our management structure. This team is increasing dramatically as our volume of work increases, but behind this team is a much larger network of highly qualified and skilled personnel. A short background on the main management team members is enclosed in the last pages of the company profile, document Z.

2.2 Description of the Idea
The MDM (Modular De-Mining) system is a revolutionary new machine for the removal of landmines. Over the last five years we have been researching, designing and developing this machine. It consists of a number of innovative designs that make up the GC (Ground Claimer) 3000. Through grasping recent advances in various technologies we are now able to develop this system. Two of the GC3000 will be fitted to a JCB Fastrac or similar vehicle. (This is a British made agricultural tractor, able to travel at road speeds of 50 MPH).

This allows the machine to travel without the need for a transporter and in places with poor road networks. In transport position the vehicle uses its normal wheels. This is of major importance as machines that are based on steel tracks have to be transported by a Low-loader truck and in many of the regions where these machines need to operate there is little or no road and transport infrastructure.

In the working position the tractor is lifted up off the ground by the two GC3000 (Ground Claimer) units which are mounted at the front and rear of the tractor. Each GC3000 has two hydraulically driven traction rollers which provide the forward motion for the whole machine. A hydraulically driven grinding drum counter-rotating at high speed against a shear bar is located between the two traction rollers on each GC3000. This has the effect of digging up and grinding/pulverizing any material it encounters such as soil, stones and vegetation.

The MDM system can be used in a variety of modes to tackle different problems. The 3-metre wide position is used on overgrown areas. In this working mode the front GC3000 unit is tilted back so that only the rear traction roller is in contact with the ground. With the mulch blower fitted, this then acts as a vegetation-clearing device. The rear unit then follows, pulverizing the soil, safely destroying anti-personnel mines. In all operating modes the seeding unit can be fitted to the rear GC3000 enabling a crop to be planted simultaneously.

The whole system is able to clear the vegetation, grind up/detonate personnel mines, detect larger UXOs' (un-exploded ordinance), plough, cultivate, de-stone, fertilize, seed and roll all in one pass, literally Turning Minefields into Cornfields. Another operating mode is the 5.75 metre wide position. This is used for mine clearing and/or crop planting in areas with little or no vegetation, so that it does not have to be removed, thus allowing the greater operating width.

The positions of the two GC3000 units are controlled through intelligent 3 Point Linkage units. These devices allow the GC3000s to move independently, while accurately following the contours of the ground at the same time as keeping the tractor unit suspended on a straight and level course. The hydraulic drive control system, working through the workload governor, ensures that power is efficiently channelled to where it is needed most. The forward speed is automatically reduced when difficult working conditions are encountered such as dense vegetation and/or hard soil.

Detection equipment is mounted inside the front rollers of both GC3000s to identify the presence of larger devices that could not be safely destroyed in the grinding drum. The on-board computer using information from the detection units and the ground speed radar is able to determine the size statistics of an object. If the object's statistics are greater than that of the pre-set parameter in the software then the machine automatically stops the forward movement of the machine, before the object is disturbed. The driver is then able to look at the object's statistical outline on a monitor in the cab and decide whether to carry on and grind it up or to leave it behind for later removal by hand. If the object is left behind then the size statistics and location coordinates are registered into the on-board computer using GPS (Global Positioning System).

It will be necessary to back up the MDM system with hand clearance to clear ditches or areas very close to trees etc which is true of all mechanical systems. It is designed to clear a wide variety of environments including sloping ground and wet or sandy areas. For more information on the MDM system, please refer to Documents; C and D

To see other machinery, visit the web site of Geneva International Centre for Humanitarian Demining. log on to www.gichd.ch To see publications add /publications And for a catalogue of machinery add /mde_catalogue_index.htm

To gain a perspective of the size of this industry and to see other organizations, visit the web site of The Global Mine Action Registry. log on to www.maic.jmu.edu/gmar To search under specific categories add /search.asp Or to browse over all organizations, instead, add /browse.asp

2.3 The novel and inventive features.

The MDM system is unique in its ability to simultaneously:

• Suspend the tractor unit above the ground, protecting both the tractor unit and operator.
• Detect UXO, automatically stopping the machine if the UXO is above a pre-set parameter, again protecting the operator and machine.
• Register the size statistics and location co-ordinates of remaining UXO for manual removal.
• Grind up/detonate personnel mines.
• Remove the vegetation, keeping it separate from the soil while the simultaneous de-mining process is being carried out.
• Leave the land in a more valuable condition for agricultural viability.
• Seed, fertilize and roll (plant a crop).

The MDM system is built around a high-speed agricultural tractor and is able to travel independently between the places of work, dramatically improving logistical efficiency and reducing transportation cost.
This system combines the use of existing technology with innovative adaptations to address the problems which exist in the demining industry.
The 2002 report by the Geneva International Centre for Humanitarian De-mining illustrates the deficiencies of other demining machines. From this we can determine how innovative the MDM System is in its unique ability to address the factors for success (as referred to in 5.2)

This project represents significant "new thinking" in this field and will inspire a totally new approach, not only to the safer removal of landmines but also in the rebuilding of the communities and the development of sustainable agriculture.

2.4 The needs and proposes that this product fulfils.
Up until now the main machines for large scale mine removal have been varying designs of detection systems, rollers, grinding rollers, sifters and flails. Other approaches include devices that emulate the human footfall which trigger some anti-personnel mines. These approaches have a number of drawbacks, not least of which is that no machine can guarantee to clear any type of affected area, resulting in the widespread use of slow, expensive and dangerous hand probing. According to some estimates nearly a quarter of landmines laid during World War II are still alive, laying in wait for victims. They can remain active for over 50 years. Landmines are weapons of mass-destruction in slow motion, having killed more people than nuclear, chemical and biological weapons combined. These deadly devices strangle the economic and social development so essential to rebuilding war-torn countries.

Landmines impede international efforts to help war-torn countries regain their economic and social infrastructures because they undermine the confidence and security needed to initiate and continue the reestablishment of community services. The clearing of landmines and the debris of war divert billions of dollars that could otherwise be spent on desperately needed development projects in fragile post-conflict economies.

The landmine problem continues to be one of the most pressing areas of humanitarian concern. Both anti-tank and anti-personnel landmines still cause incalculable human devastation and suffering to an increasing number of non-combatants, largely women and children. Although the exact number of landmines is unknown, it is estimated that there are between 60-110 million landmines scattered within at least 70 countries around the world.

There is a tremendous need for our Modular De-Mining system to be made available. Not only for charitable and humanitarian works, but now also for the dramatically growing commercial market. There is an area roughly the size of Spain and Germany combined that is out of use due to the fear of landmines. The majority of this is good agricultural land situated in developing nations, thus causing a horrific effect on the economy. Every four weeks, there are roughly the same amount of people killed or injured through landmines as there were killed in the September 11 terrorist attack in New York, (every four weeks).

In the past, most humanitarian projects have cost enormous amounts of money. Through technology and innovation, we are now able to change the way in which this type of work is carried out. By simultaneously planting crops we are now able to gain a financial return on this work. If it is now possible to make a profit out of undertaking humanitarian and development works, then more companies will become involved. This will result in the work being carried out more quickly thus dramatically reducing unnecessary suffering.

Due to recent global developments including the signing of the Ottawa Treaty by 142 countries, now many governments around the world are not only committed but also legally obliged to remove the mines that they are responsible for laying. Britain, Germany and America are among those responsible for some of the largest minefields in the world. It is estimated that; at today's rate I.e. Dollars spent per mine removed that it may cost $33 billion over the next ten years to rid the world of mines. We believe that it will be done for much less using the MDM machine, thus saving many nations a massive amount of money.

Other recent developments include a massive push to clear many of the border minefields and replace them with alternative humane border security systems. This is a market that we are also involved with and again this is starting to take off resulting in a very lucrative business opportunity for whoever is the first to develop a workable machine.

2.5 The various strengths and weaknesses of competing products.
Typical drawbacks of existing mechanical methods include:-

• Being based on large machines, therefore very difficult and expensive to transport to the area of operation
• Being too complex to maintain in a remote location
• Being expensive
• Requiring large crews
• Being ineffective in many areas with such a variation of UXO, vegetation and terrain.
• Being unable to clear landmines effectively.

Many new detection techniques, vegetation clearance devices and mine removal systems have been, and are being, developed and brought on to the market. The problem with landmine removal is that with these latest innovations there always seems to be a perpetual catch 22 situation, which is you cannot use most of the new mine detection systems because of the bush/vegetation. Also, you cannot go in and clear the bush because of the mines and you cannot remove the mines because you could not detect where they are because of the bush. The MDM system addresses these problems and provides a solution to all of them.

2.6 How this idea improves on the performance of existing competition.
Please see 5.2 for the MDM System's ability to meet the standards required for success in this market. These are standards that are currently not being met by any market competitor.

Many new machines are being developed and brought on to the market; de-mining is a very complex subject and all too often many of the real problems that arise during de-mining operations are not fully appreciated by machinery designers. The following observations have been documented while comparing the MDM system with other proposed and existing de-mining machinery.

As a high percentage of minefields have become overgrown through time with dense vegetation, many other de-mining machines are unable to progress forward through the area until this vegetation (bushes and small trees etc) has been removed, whereas the MDM machine removes the vegetation simultaneously.

Some systems have a target area of, for example, 5000m2 per day per machine and two or more machines are required to undertake separate tasks. This equates to half that amount per machine per day. The MDM machine is expected to clear 10 times that amount if simultaneously clearing dense vegetation and up to15 times that amount in areas of no vegetation. Since there is an area the size of Spain and Germany combined to be cleared, then the more efficient method is required.

A good benchmark to determine the size of machine for this type of operation is to consider the existing successful machinery used in commercial operations, such as quarrying, earthmoving, forestry, and agriculture. In all of these industries the machinery is getting larger. This is for a number of reasons including economies of scale. They had to do it in order to make money and survive in a competitive market and these same economic principals will be adopted in mine clearing and humanitarian works. Larger, faster and more efficient machinery will become the norm as this type of work becomes more commercialised.

There is often a huge and dangerous misconception that the main problems in minefields are the mines themselves. In some areas there are many more items of UXOs such as mortars etc, for every one mine. Unlike most other mine clearing machinery the MDM system is also able to simultaneously deal with these other issues.

Another fatal misconception is that mines will be "set off" by applying pressure to the top of the mine. If it was that easy then mine clearing rollers and flails would have succeeded in this work. Unfortunately, in the past, the designers of the mines have had more resources to develop smarter mines to outsmart those developing removal methods. Many mines have built-in pressure and/or time parameters or are detonated by other means such as magnetic signature. Placing pressure to the top of mines does not work effectively enough. Also there is the problem of vegetation, voids etc, within the surface of the ground with stones and tree trunks taking the force of the pressure of a roller, instead of the mine. De-mining experts have stated "these are and always will be military breeching systems and not humanitarian de-mining tools. Nothing has been completely cleared by any of these machines, it has only been rolled or beaten".

The results of this attempted method of removal are well documented. In one case, an organisation had been using a mine clearing roller. After rolling many minefields twice in opposite directions thus detonating many mines the areas were rendered safe for the returning families. However, after some time of using this method a detailed survey found that sometimes they had actually only cleared 20% of the mines. Placing pressure on the tops of the mines does not clear them. With some machines that use either a rolling or a moving tool method there is the added problem of the roller or tool becoming built up with bonding soil in wet conditions and becoming even less effective.

A great deal of understanding has been gained through owning and operating an assortment of machinery using the web/soil sieve system as proposed for use on many de-mining machines. However it has recently been observed that there is a dangerous and mistaken belief in the efficiency of such equipment for mine clearing. The soil can only drop through the gaps on the web if the lumps of soil are smaller than the gaps. This system would be fine if all mines were in clean sand. In reality the soil is normally moist and compacted together and also held together by the roots of the vegetation, so rendering this method unworkable.

A scenario in which the web operates effectively is if all of the vegetation had been removed beforehand or ploughed in the previous year. Here, the vegetation would be "rotted down" and the soil cultivated into a fine tilth allowing it to fall through the gaps in the web thus catching the larger items such as in stone picking. Root crop machinery using this method such as sugar beet and potato harvesters etc, have a device in the front which simultaneously removes the tops from the plants being harvested and throws them off to the side and onto the previous run. There is a good reason for this: if this is not done, the web becomes blocked up with vegetation and the crop could not be separated from the soil. Also, it must be noted that the bar spacing on root crop harvesting machines is much wider as root crops are a great deal larger than the detonators in a land mine. Many ideas look good on paper but the web only works if the vegetation is removed and the soil has already been cultivated or these processes are carried out simultaneously as with the MDM machine.

Many systems require a number of machines; for example, one to attempt setting off the personnel mines with pressure, (this does not work for many mines); and another to pick up the earth and sieve/filter out any remaining objects, (this also does not work in normal conditions). However, there are still many vital operations not dealt with. These include;

1. Vegetation clearance.
2. Logistics/transportation of the machine in remote areas with little or no road infrastructure.
3. Lack of detection, missing out deeper buried UXOs such as mortars etc.
4. Lack of detection, when operating in areas with anti-tank mines.
5. The area not being left in a manner that would allow safe return of the families.
6. The area not being left in a condition to encourage agricultural and economic viability.

Most other machinery have a problem with depth controllability when working in undulating ground, often going too deep over mounding and fatally missing out objects buried in dips or hollows. The MDM machine is able to automatically follow the contours of the surface accurately, including simultaneous and opposing side axis undulations.

Many de-mining machines are designed to run on steel caterpillar type tracks. There are a number of disadvantages with this, notably transportation. These machines can be designed to operate effectively on paper but again in reality they often have to operate in areas such as the paddy fields of Cambodia or up in the mountains of Angola etc, where there are no low-loader trucks available and little or no road infrastructure. The other alternative is to use faster machines with tyres, but they would get damaged being driven through a minefield. The MDM system has overcome both problems by being able to travel at high speeds and then using a novel method of lifting the whole tractor (including tyres) off the ground when in working mode.

Many machines are unable to work in areas where there is a risk of there being anti-tank mines. Unlike the old ATMs designed to blow a tank track off, the more modern mines have more formidable power. The MDM machine is able to rely upon a multi-detection system incorporating a fail-safe feature that stops the machine when an object over a pre-set parameter is detected.

This does not have an adverse affect on the progress of the MDM machine because it is then able to register the size statistics and location coordinates then work around the detected item leaving it behind for later removal by the manual de-mining team. It is the detection/locating of the objects and the quality assurance that up until now has been so time consuming. With the MDM system, as the remaining objects are now detected and their size data and location coordinates registered they can now be destroyed/removed in an efficient and safe manner.

Many of the countries where mines are laid have rainy seasons and since most de-mining machines are unable to operate in wet weather or wet ground conditions this has a dramatic adverse effect on the logistics and economics of mine clearing. However, as the MDM machine has large wheels and four-wheel drive it is able to travel in very muddy and poor traction conditions when in transport mode. Also, it has a centrifugal self-cleaning grinding drum and operates on low ground pressure rollers, giving the machine high traction when in working mode, dramatically extending the working season with the obvious commercial and humanitarian benefits.

When potential purchasers are choosing which machinery to buy they may not only be looking at the initial purchase cost but also at the potential second hand value of the machine after a contract or task has been completed. Most de-mining machinery can only be used for de-mining. However, with the MDM system, the de-mining machinery can be easily removed after the task has been completed or once they are worn-out and the host tractor and/or crop planting part can continue to be utilised for further works, thus increasing the longer term value.

To create an industrious atmosphere and encouraging entrepreneurial activity generating a greater interest and investment in this type of work, greater sustainability and profitability is a must. As the market increases and more competition develops among the suppliers of the machinery for this purpose, a greater emphasis will be placed on dual role or multi-tasked machinery. This is a naturally evolving phenomenon and has happened with most other industries. When dollar based business decisions have to be made, the purchasers of such machinery will opt for a machine that is safer and more economic.

Why buy a machine that just puts pressure on the ground or another one that only sieves the soil? Why buy a machine that only clears vegetation or a system that only detects? Why not instead buy one machine that does everything simultaneously including putting the areas under crops that, when harvested, can then be traded to further promote economic sustainability. It will soon become a competitive market and, ultimately, cost reduction and increased profitability will direct the decision makers.

It could be argued that many of the other machinery and systems are further developed than the MDM system as they are already built and being operated. However, this is no reason to give up on further developing landmine clearing machinery. We should only give up when we have either reached perfection or if there are no more mines left to clear. Until then, it would be complacent not to strive on for continual improvement.

2.7 The potential for future development of this idea.
One part of the longer term project is to develop the new QuickDrill system. This is a new water well drilling and pumping method ideal for helping in developing nations.
In many areas, mines have been laid to prevent civilian access to clean water supplies, a problem that can quickly lead to a verity of disease. We are developing a Quick Drill system that is able to work in association with the MDM system's tractor. This is a double-acting forklift mast that fits to the tractor's standard three point linkage system and is able to be used as an ordinary all terrain fork lift for un-loading seed and fertiliser or bricks and cement etc, This will be a useful attachment during development projects. This forklift can then be driven into a drilling device. This being fixed to the mast doubles up into a drilling rig. We are developing an innovative and low cost method of drilling bore holes and a new type of water pump that will have a benefit to communities as they become free of land-mine.

Another important aspect to the GC3000 is that it can be used in forestry work such as after a 'clear fell' has taken place. The problem at the moment is that the branches have to be stacked up for about a year to dry so they can be burned, clearing the area and allowing new trees to be planted. New laws may come into force in Europe that will prohibit such burning.

With the GC3000 fitted to any 250+ HP tractor, an operator could drive over an area that had been felled and grind up all the vegetation, stones, branches and tree stumps, allowing immediate re-planting. A tree planter could be made and put on the GC3000 so an area could be cleared and re-planted in one go, immediately after the tree harvesting had taken place. The machine could also be used for putting in forestry fire-breaks, roads and forest fire fighting. Another use for the MDM system is in humanitarian work such as crop planting. The machine is able to re-establish the crop cycle as part of a famine prevention program following wars, droughts, floods, etc.
Other comparatively new, commercial contracting opportunities are starting to emerge such as border minefield removal. This particular industry is now starting to accelerate dramatically with world attention being focused on humanitarian de-mining including recent initiatives being developed by organizations such as the UN, development banks, Red Cross, Red Crescent, The World Food Program and the Ottawa Convention now forcing/pressurizing the developed nations to play their part in removing the landmines left over in many developing nations. Even industry specialists who are highly sceptical of mechanical mine clearance acknowledge the need for a quicker and more effective vegetation and mine clearance method.

There are many commercial aspects to this project, using this modular machine, such as the various parts and variations of these parts that go to make up the MDM system. Another market for a variation of the GC3000 is for cultivation and stone burying in the sports field and golf course construction industry, but the main market potentially worth billions of dollars and one which could help to fund the final push in global de-mining is the agricultural market. A variation of the MDM system could revolutionise the world's agricultural industry as it effectively ploughs, de-stones, cultivates, seeds, fertilises and rolls all in one pass. As this machine also extends the working season by being able to work in wet conditions and doing all the process at once, it means that fewer machines will be able to do more work, more efficiently. It will also help conserve energy and the environment. This makes the MDM system an altogether low cost, feasible and self-sustaining process for the benefit of mankind.
The machine will be able to grow and adapt as new types of detection systems and other technologies are developed so ensuring that the MDM system never becomes out dated. Even after all the mines are cleared it can still be used for crop production and enhancing the agricultural economies of the former mine infested areas. As well as selling, hiring and leasing the machines to both government and non government organisations, we will also have our own operators to provide a fully integrated service. We plan to be involved in commercial and humanitarian de-mining and food production projects with the commercial part of our organisation helping to fund the humanitarian side.

Both machines have outward and inward facing 3PL (3 point Linkage) allowing other devices and 3PL machinery to be fitted. This will be particularly useful when future machines are invented and new systems are developed. Therefore this MDM system can grow with technology.

We will soon be able to combine the MDM system into a "Mercy Truck" style mobile unit, incorporating; well drilling, construction, health clinics, prosthetics units, education, agricultural development and general community and infrastructure improvement works. The MDM system has been developed with thought and compassion going to the owner or the end user of the land. Sadly many other methods of de-mining leave the land 'supposedly safe' but also, in some cases, useless in agricultural terms, having mixed together top soil and subsoil and leaving an uneven surface.

The MDM system leaves the soil prepared to a high standard dramatically increasing the agricultural viability and value of the land. With the MDM system 100% of the soil down to the pre set depth is pulverised and ground up thus rendering the area 100% mine free and safe for families to return to and begin a new life. This machine could bring global land mine removal up to date as well as revolutionise the world's agricultural industry. One exciting point about this de-mining machine is its ability to deal with the vegetation/overgrowth, detect UXO's, leave the land in a more valuable condition and even plant a crop simultaneously.

By entering into agreements with the landowners or governments for future crop production, we are now aiming to make de-mining a sustainable and even profitable operation. Hopefully, more organisations will then become involved and the massive task of global de-mining will be achieved more rapidly, thus dramatically reducing unnecessary suffering. Further, when considering this element of sustainability; it is also worth bearing in mind, potential future developments such as when natural resources become scarce and oil prices increase, the MDM has the ability to efficiently put large areas under crops such as oil seed rape to produce bio diesel etc. This again could be a massive source of income to assist with the development of many nations.

There is great success in remote control machinery developed for ordnance disposal in an isolated ordnance setting. However, operating agricultural type de-mining machinery by remote control has the major and often fatal drawback of not giving the operator the necessary feel and sensitivity of the operation. The operator is unable to sense, see, feel or hear what is happening both with the machine and also with the job being done. This method dramatically increases the probability of areas being missed by the machine slipping and/or under-lapping, thus objects often being left behind unnoticed. However, owing to recent breakthroughs in technology, including more accurate satellite mapping and navigation, it is now possible to undertake this work via remote control effectively. This is an area that we are now exploring. For a visual image of this please request document 3b.

Section 3 - Development of the Idea

3.1 How it is planned to commercialise and exploit this idea.
There are 2 main methods this can be achieved;1, A 'priming donation' made to the charity would allow it to place an order with the company. The company, now with an order on its books and money in the bank, is now in a position to apply for manufacturing grants. The company now with money from the initial order plus the funding from the grants, would now be in a position to attract investment from venture capital to set up the manufacturing facility, build the machine and deliver it to the charity for humanitarian de-mining work. With the company having set up the manufacturing infrastructure, it is now able to produce the machines on a commercial basis. After paying back the venture capital, profits from this commercial activity can be ploughed back into the Mercy Truck Charity. Mercy Trucks can now use this plus other charitable donations and development funding to undertake community development and agricultural sustainability works in the areas that the De-Mining charity have cleared of land mines.

Please request document F for a diagram illustrating the relationship between the De-Mining Systems UK Ltd company, the De-Mining Systems charity and the Mercy Trucks charity.

2 Alternatively, commencement of this project may be achieved through commercial investment funding such as venture capital to the company to initiate the commercial de-mining and machinery sales. After repaying the commercial investors it is intended to operate this company in such a way as to enable support of the humanitarian de-mining and the rebuilding of communities. This work will be carried out through the De-Mining Systems and Mercy Trucks charities and through working with other similar charitable organisations.

We are seeking funding in the region of £1,500,000 or $2,325,000, (Rate based on $1.55 to the £) over 4 phases, during a period of 10 months. This will fund the factory/office facility along with development, manufacture, testing and production of the first machine. The facilities will then be in place to enable phase 4, full-scale production along with the components to build a further two machines.

Phase 1
£490,000 or $759,500 (over months 1 to 10) to set up the infrastructure enabling the development of the project, such as the operations centre with a design and manufacturing facility, including staff costs to build the first machine.

Phase 2
£400,000 or $620,000 (over months 1 to 5) to cover the development and supply of the components for the first machine.

Phase 3
£140,000 or $217,000 (Over months 6 and 7) to prove the effectiveness of the MDM system for the clearance of dense vegetation, area reduction and as a landmine detection and clearance system. Also included in this figure are the costs of testing and certification.

Phase 4
£470,000 or $728,500 (over months 6 to 10) to cover the component costs of a further two machines. For more information on this please request document P

Following the success of this project, the number of MDM units in the field would be expected to have saturated the market after ten years of production. With the novel design of the MDM system, any machines that have finished being used for de-mining could then carry on and be used for agricultural development.

In addition, it may well be one of the objectives of the company to license this technology to others to help achieve the humanitarian and economic goals of this project. For an indication of the current market size. (bear in mind the recent rate of growth and the potential when a workable system is available on the market) Please request document W.

3.2 The current stage of the project.
The project is currently at the early prototype/design/draft stage.

3.3 The period of time that we require financial support.
It will not be necessary to fund this project heavily beyond the initial first year but any further funding or investment may be welcome.

Please see 7.1 and Documents Z and Z1, Please also see page 4 of document P.

3.4 Past/ Progress to date and some of the hurdles that we have overcome with this project.
Hurdles we have overcome included:

• registering of the location co-ordinates of detected objects using GPS and discovering methods of error correction.
• discovering methods for maximising efficiency by developing the efficiency differential between the available power and the workload governor.
• harnessing counter-torque to help dissipate the blast energy within the counter torque blast suppression system.
• design of the 3 point linkage steering and control system (Tight 3PL Unit)
• finding a way to mount the fixed detection system inside the rotating traction roller
• developing a method of keeping the vegetation and soil separate while simultaneously processing both materials.
• developing a method of detecting, registering and avoiding larger UXOs

Over the last five years of often working day and night, through determination, hard work and prayer and been blessed with a dedicated team including some of the top professionals in their field, who have grasped and applied recent advances in technology, often developed by ourselves, these obstacles have now been successfully overcome.

Team and Infrastructure
The team and Infrastructure are increasing at a dramatic rate, as the project picks up momentum, for more information on the main management team, please request document Z.

Timetable
Work began on this project in 1997. However, Roy has been working in associated industry for over 24 years. Roy has devoted his efforts to the demining industry on a full time basis for the past 5 years.
Each other member of the team (as illustrated in Doc Z) has put many hours into this.

Cost
A significant amount of in-kind commitments have been given so far for this project to succeed. Much of this has been from Roy Dixon and Neil Roberts working over 5 years. The in-kind contributions from other members of the team would probably total another five years. Office/patent/project running costs etc have manly been sponsored by Roy personally.

3.5 Present / The progress that we expect to make during the funding phase of the project.
The investment/funding would help with administration costs, marketing, the office base and to pay for full time staff who would set up the various aspects of the project. The funding will set up the infrastructure allowing the project to move into the full scale manufacturing phase. Because of the time that this project has been underway and the nature of the project a large infrastructure of assistance has built up including universities, companies and individuals.

3.6 Future / Our exit strategy
The primary aim is to repay all investors through the financial returns made once successful production and marketing is under way. Our primary aim is to repay the investors. The secondary aim is to help fund humanitarian projects once the company is operating from a position of strength.

One of our longer term desires is to develop our design and prototyping know-how and infrastructure along with our pool of voluntary expertise to explore and develop other ideas of our own, but also to open up our synergy of facilities to other people with foresight who, like us, have struggled to develop new innovations. We would like to play a role in helping to change the present, often negative attitude to innovation.

Section 4 - Intellectual Property

4.1 Details of all types of intellectual property protection that is relevant to this project.
Know how (key information known only to us) There is a tremendous amount of know how, held by Roy and the principal team and the companies closely involved with the project.

Confidentiality/Non Disclosure agreement
We were using non disclosure agreements, however now with the patent protection we feel that under normal circumstances that these are no longer necessary.

Full patent / Published patent application
A Patent had been granted and published for the MDM System in the UK, US and Europe. Patent no PCT/GB/01/00701

4.2 The owner of the idea/product.
The machine/system was invented by Roy Dixon and the patent is in the name of Roy Dixon. (Please refer to item 1 for details).

4.3 Our overall intellectual property protection strategy.
For the time being we are relying on the patents and patent law for protection. However this has proved to be financially burdensome. Roy Dixon and Mark Nailis have been involved with the arduous patent procedures. We have a good working relationship with our patent attorneys.

Section 5 - Market Information

5.1 The overall market for this idea/product.
142 countries have now signed up to the Ottawa Convention. In doing so they are agreeing to clear the mines that they are responsible for laying, within the next ten years. It is estimated that there are between 60 and 100 million landmines planted in 60 countries; Germany, the USA and Britain being among those responsible for some of these minefields. Very soon many individual countries will each be looking to buy large numbers of de-mining machines. Many new de-mining agencies are springing up, both governmental and non-governmental, for profit and humanitarian reasons. It is becoming a huge industry.

Over the last few years roughly $300 million per year has been spent on de-mining but experts have estimated that to abide by the Ottawa Convention using existing technology, it will cost many billions. Our machine could bring global landmine removal up to date, reducing this cost as well as revolutionising the world's agricultural industry. The potential for job and wealth creation is enormous.

It has been estimated that many billion of dollars will be spent on mine clearing within the next ten years. The Ottawa Agreement opens up a massive potential market for the MDM system. Potential purchasers of the MDM machine include government and non-government, commercial and humanitarian de-mining organisations. Even industry specialists who are highly sceptical of mechanical mine clearance acknowledge the need for a quicker and more effective detection, vegetation and mine clearance method.

Appreciation of this market, its size and targeted share is reported from a wide variety of well publicised sources. These include the United Nations Mine Action Service, government and non-government surveys. The Geneva International Centre for Humanitarian Demining is the source for independent tests and results of leading market competitors. These have been published in their catalogue for 2002. Please request document W to give an idea of the size of the present market. Please refer to document S for which machines have what percentage of the current market and the quantity of what machines are currently being sold. (humanitarian only, not military)

5.2 The key factors for success in this market.
Generally, most mines are planted in developing nations. Most of these nations are in warm climates. Therefore, after the farmers have been forced to leave the farming lands due to landmines, then mother nature takes over and within a short period of time the area is covered in dense vegetation. There is then a "Catch 22" situation: many new detection systems are being developed and introduced but many of these systems must operate close to the ground; but this is often impossible due to dense vegetation. Machines to cut down the vegetation can not operate due to the mines and the mine clearing machines can not clear the mines due to the dense vegetation and lack of detection.

The key factors for success are well known throughout this industry (a machine that could effectively undertake all of the necessary tasks simultaneously) and despite many machines already in the market the necessary standards have not been met.

The key factors are as follows:

• Cost
• Ability to accurately clear anti-personnel landmines.
• Ability to continuously pulverise above surface vegetation and below surface, ensuring everything is destroyed.
• Area is safe for human re-habitation once cleared with this machine.
• Ability to automatically detect larger UXOs protecting machine and operator.
• Ability to register size statistics and location co-ordinates and leave behind larger UXOs for later removal by hand.
• Ability to dig up and conveyor pulverised soil through a detection array for quality assurance.
• Expected to attain the 99.6% clearance rate set by the UN
• Ability to clear and separate dense vegetation while simultaneously de-mining.
• Ability to de-mine successfully in wet weather and wet ground conditions.
• Ability to leave area in good condition and ready for seeding for agricultural use.
• Ability to operate effectively, independently of additional transportation in distant locations.
• Ability to independently drive at road speeds in excess of 45mph.
• Using GPS for total area coverage quality assurance, combining an "area covered" database facility
• Ability to plant a crop simultaneously while de-mining
• Ability to automatically follow the undulations of the ground for depth control with de-mining accuracy.
• Quick change over time from own high speed transport position to working position.
• Ability to use machine for other humanitarian and/or commercial purposes such as crop production.
• Relatively low running costs.
• Including the necessary, automatic fail-safe systems for operator and end user safety.
• Straightforward method of operation with basic training requirements.
• High degree of parts inter-changeability.
• Economically viable as a single machine for sale or rent in the commercial de-mining industry.

The MDM System will be the only machine to even attempt to achieve the above standards in this market. See 2 .2 for the ways in which this will be achieved.

5.3 The main barriers to entry in this market.
The main barrier to this market is acquiring the necessary funding to develop and prove this new system.

There are approximately 36 different types of machines currently in this market (470 machines operating in total). There is therefore an urgent need for this system to be introduced. Since the signing of the Ottawa Agreement there is now an even more urgent requirement for what the MDM System will achieve.

5.4 The performance of our key competitors.
Please refer to document reference S for the technical specifications of our competitors' machines and their share of the current market.

Some individuals have responded in a negative manner to new ideas. This is understandable since there have been so many so-called wonderful new ideas that have fallen flat. Many of these former ideas were developed by academics with a strong ability to write comprehensive funding proposals, but when their designs were put to the test they did not perform since they often failed to consider one the main factors, that of reality. Landmine removing machines are the same as business plans, in that they can both work on paper.

Once our machine is developed and proven, our relationship with market competitors should be harmonious and co-operative. Unlike other industries, the de-mining industry is more determined to work together to achieve a common goal because of the humanitarian factor. They would, therefore, respond positively to new ideas but only once it was proven as a practical solution to the current problem.

5.5 Our planned route to market.
We propose to have various suppliers deliver goods to our specification, into a central assembly workshop. This is to ensure that as much of the work is done by outside companies as possible, leaving the management team free to concentrate on design, manufacturing and marketing issues. It also means that no-one other than our own staff get to see the whole system until we are ready for them to do so, as consideration must also be given to the commercial marketing and security issues. It is anticipated that we will consider licensing this technology to others. It is possible for there to be a joint venture with another company only if it becomes necessary but we see no need for this at this stage. The innovative nature of this project and the inadequacy of other machines carrying out this work to meet the required standards and the dramatic growth, mean that there is a clear route to market.

Section 6 - Social and Other Impacts

6.1 The social and/or environmental benefits.
Everything about this project is socially and environmentally friendly with enormous benefits for all mankind.

The ultimate goal of this project is to bring only benefit to the environment in which these machines will operate with the removal of landmines and other UXOs and returning the land back to its original purpose, that of supporting humanity. This will be achieved in conjunction with sustained economic benefit for such affected areas. It will generate wealth and create many jobs in the manufacturing industry. It will simultaneously satisfy the agricultural needs of those wishing to restore large affected areas back into farming land. The potential for job and wealth creation, as this project multiplies, is enormous. There are also other social aspects including education that may be considered. We are already involved with community education within the humanitarian and de-mining subjects. At the moment, this is by way of being invited to speak to community groups. We are also involved in teaching about our work in schools and at a higher level about hands on technology.

6.2 Any potential negative social and/or environmental impacts as a result of this project.
The only potential negative impacts would be if this project does not get past this stage. The destructive environmental and social impacts of landmines are well documented.

6.3 How this project and its outcomes extend or cross over traditional boundaries between fields and disciplines in a novel and creative way.
At the moment there are three main fields of discipline in landmine removal

1. There is the military method that has a great understanding of the many different types of personnel mines, tank mines and the complicated issues surrounding other ordinance and the problematical way in which some of these ordinances are placed. However, in military de-mining they regularly have little regard for the longer term humanitarian issues including the agricultural viability of the land once the mines have been destroyed.
2. There is a commercial element of de-mining where it is sometimes uneconomical or imposable to work to the necessary standards using the existing technology, which is in most cases; probing by hand.
3. Then there is humanitarian de-mining. Those involved in this area often do not have the financial budgets to be equipped with such an extensive inventory of machinery that is available to the military.

With the MDM system we are able to combine a multitude of technologies into an innovative new method of landmine removal while enhancing agricultural production. We are not only able to achieve new goals in humanitarian standards but also able to make it commercially viable to undertake this important work.

One of the main reasons that past systems have not been successful is because many of them only operate in their singular task. However, landmine removal is a multi-tasked operation.

Section 7 - Financial Information

7.1 Business plan.
Unfortunately our business plan is unable to be reproduced in a clear and understandable manner in the format of this document. Please request document Z, for a company profile. Please request document Z1, for the business plan containing the costs, profit and loss, cash flow and balance sheet forecasts. Please see page 4 of document P project summary for the funding requirements and time-scale.

7.2 The key assumptions underlying the business plan.
The key assumptions are contained within the document, Z1

7.3 Probability of sales revenue within the next 36 months.
The forecasted sales revenues are included in the business plan, Z1

Section 8 - Ownership and Valuation

8.1 The present ownership structure of the company.
The company De-Mining Systems UK Ltd is incorporated under the companies act of England and Wales, company no 3604270. At the moment the company has 100 shares and these are owned by the company director Roy Dixon who owns 51 and his wife who is also the company secretary who owns 49. The company VAT registration no is 708 3228 45.

8.2 Valuation of the company at present.
As yet we have not undertaken a valuation exercise. However, as stated earlier, by exploiting new breakthroughs in technology we have now made it possible to develop this machine. There are currently no machines available to meet the requirements of the market and yet the market is increasing dramatically with the advent of recent initiatives such as the Ottawa Convention. By creating economical sustainability and profitability within the de-mining industry this will become a self-perpetuating market that will multiply even more dramatically than over the last few years. Therefore, the value of this in commercial terms is phenomenal.

8.3 The structuring of investment
The detail, amounts and timescale of our funding requirements are set out in the last page of the project summary (Document P). We have begun to seek funding for this project, from organisations that have appeared to have funded such innovative projects on the basis that they are repaid once the project becomes profitable. The structure of any investment could reflect this intention. Please refer to our business plan for the forecasted repayment ability.

8.4 Discussions with other potential investors.
We are and have been in contact with a number of potential investors.
However, at the moment we are in a "chicken and egg" situation where we are unable to borrow since we have no capital and we have no capital since we cannot borrow. Hopefully, we will soon be able to break through this dilemma.