VALUE CREATION INC.

July 26, 2019

The Right Honourable Justin P.J. Trudeau Prime Minster of Canada

vcs

Value Chain Solutions Inc.

The Honourable John Horgan Premier of BC

Re: BC Refinery Initiative - Expression of Interest by Value Creation Group

Dear Prime Minister and Premier,

It is gratifying that the Governments of Canada and BC are open for a new BC Refinery, for cost effective supply of high-quality fuel products to BC, and capturing optimal added­value to Canadian resources, before export.

Such a new Refinery must be economically robust, competitive against ( established ) global mega export refinery centers, meeting future environmentally cleaner product requirements, together with superior environmental performance and strong support from stakeholders ... a " conventional refinery " , for current standard fuel products, would not meet such goals.

Value Creation Group ( " VCG " ) can meet such high - bar challenges.

VCG PROPOSAL of a Differentiating Coastal Clean Oil Refinery ( " C-CORe " )

VCG can produce ( in its forthcoming Alberta Complexes, see Attachment 1 ) Customized " Clean Premium Crudes " with unique High Cracking characteristics ( i.e. very high conversion to light fuel oil products, with better yields ), enabling the Simplest and Most Cost Effective Refinery, producing high quality fuel products, with Best-In­Class Environmental Performance ( C-CORe ).

[ For relevant track record and credibility, I, the under-signed, designed the unique Shell all- synthetic-crude refinery ( Scotford Refinery ) which, for decades, has been ranked TOP margin refinery in its class, globally ( by Solomon, the prestigious consulting firm ) . . . as shown in my Bio, as attached. J

Product Portfolio of C-CORe

• Very Low Sulphur, High Octane-Potential Naphtha,which can be readily refined to produce high quality gasoline.

( VCG prefers to ally with a Gasoline Refiner with extensive retail network, to supply BC)

• Low Sulphur, Ultra High Cetane Diesel and High Quality Jet Fuel( both with very low aromatics contents ) for superior environmental performance

• Low Sulphur LIGHT Marine Fuel( meeting and exceeding fast-coming IMO 2020 specs)

Suite 1100, 635 - 8th Ave SW., Calgary, Alberta, T2P 3M3 Phone: (403) 539-4500 Fax: (403) 539-4501

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Besides supplying BC, such super-high-quality products would have large emerging and fast-growth global markets, capturing optimal added-value for Canadian resources, before export.

VCG can also export Clean Premium Crudes, best-fitting Global Refining Industry ( unlocking huge Export Markets ), replacing Diluted Bitumen ( with very limited export

markets ), while achieving far more effective transportation with current ( and new) logistics infrastructures, and drastically reducing environmental risks.

Location

The potential location of the Coastal Clean Oil Refinery could be the old refinery sites at Burnaby or a new Coastal site, ( and VCG is prepared to design within the guidance / constraints of Government's Marine Protection Policy. )

Request

� We earnestly seek to meet with Premier Horgan and Prime Minister ( and appropriate Ministers I Officials ), to affirm Intentions, and seek guidance on Preferred Scope and Location of the Coastal Clean Oil Refinery.

We expect to bring Industry and Indigenous alliances, and export opportunities, in pursuing this Initiative.

We sincerely hope that VCG Clean Oil Mission ( including Coastal Clean Oil Refinery ) would contribute to bridging BC and Alberta interests, enhancing Canadian economy and environmental leadership.

Government sponsorship ( and stakeholder support ) would be Pivotal to Catalyze Investor Confidence, in current environment.

Respectfully,

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Dr. Columba Yeung Founder, Chairman and CEO Value Creation Group of Companies

cc: David Morton, CEO of the B.C. Utilities Commission

Enclosed:

columba.yeung@vctek.com 403- 830-5419 ( mobile )

(1) Letter ( dated July 26, 2019 ) to Mr. Gordon Lambert - President and CEO of Alberta Energy Regulator - Re: Value Chain Solutions - Heartland Upgrader - Refinery

(2) Dr. Columba Yeung's biography

2

VALUE CREATION INC.

Attn: Mr. Gordon Lambert

President and Chief Executive Officer

Alberta Energy Regulator

Suite 1000, 250 - 5th Street SW

Calgary, Alberta T2P 0R4

vcs Value Chain Solutions Inc.

Calgary, Alberta, July 26, 2019

Value Chain Solutions - Heartland Upgrader - Refinery

Dear Mr. Lambert,

Value Chain Solutions ( " VCS " ), a member of Value Creation Group ( " VCG " ) would like to dutifully inform ·you of its intention to consider the option to:

• Accelerate the project implementation of the VCS - Heartland Complex ( an Upgrader with Specialty Product Refining), up to the full approved capacity of 188 kbpd ( instead of the previously planned 77.5 kbpd, as Phase 1 ).

• Broaden its Product Portfolio to provide:

o Clean, Premium Crudes to Best-Fit Global Refining Industry, to enable Enhanced Refinery Performance economically and environmentally;

o High Quality / Value Specialty Products for superior environmental performance, for Emerging and Fast Growth Markets.

The above Accelerated I Expanded Commercialization would be achieved fully within the Approved Project Scope by Alberta Regulatory Authorities. We expect the eventual emissions will be below the approved limits.

The initial Phase 1 project, as previously submitted for "Partial Upgrading Program", under Alberta Economic Diversification Programs, remains an integral part of the expanded project, and meets and exceeds Program objectives.

VCG is considering this enhanced commercialization option in due consideration of potential market interests, based on our business development effort.

In addition, VCG is well advanced in the preparation of regulatory applications for further expansion of VCS-Heartland Complex and proposed Regional Upgrader in oil sands resource region. When fully implemented, these projects would have target capacity of 1 million bpd.

SUITE 1100, 635-BTH AVE SW., CALGARY, ALBERTA, T2P 3M3PHONE: (403) 539-4500 FAX: (403) 539-4501

With implementation of the Projects, leveraging on VCG proprietary technologies, there will be step change reductions in GHG emissions and environmental footprint while providing cleaner energy, far more efficient utilization of pipelines ( existing and new ) and rail, and providing significant added- value and employment opportunities for Alberta and British Columbia, and the rest of Canada.

In essence, VCG actualizes {expeditiously) the Alberta Government Vision:

"Alberta - the Destination of Choice for Global Energy Investment - catapulting Economy and Employment ".

Government sponsorship, at this critical juncture of transformational entrepreneurial development, remains a Pivotal Catalyst for Investor Confidence.

We would be delighted to meet with you and your team, if desired, to further explain our intentions, rationale and plan.

Respectfully,

Dr. Columba Yeung Founder, Chairman and CEO Value Creation Group of Companies

columba.yeung@vctek.com 403- 830-541 9 { mobile )

SUITE 1100, 635-STH AVE SW., CALGARY, ALBERTA, T2P 3M3PHONE: (403) 539-4500 FAX: (403) 539-4501

VALUE CREATION INC.

Dr. Columba Yeung Founder, Chairman and CEO of Value Creation Group

• Founded VCI with Vision: Sustainable Development of Oil sands (and extra-heavy-oils) to Produce Premium Crudes Customized for Broad Spectrum of Global Refining Industry, at the Lowest All-In-Costs and Enhanced Environmental Performance.

• Relevant experience includes transformation of 2 project prospects to Flagships of Shell Canada:

o Unique Refinery synergistically designed to process Synthetic Crudes; for well over 2 decades, Scotford Refinery has remained the best performer in its class, in America (by Solomon).

o Novel technology innovations transformed the economics of First

Shell (Albian) OilSands Mining - Upgrading project, with unique synergies with Scotford Refinery.

• Development of the China strategy for Royal Dutch Shell, and led business development of the eventual CNOOC-Shell Mega Petro-Chemical Complex at Huizhou, Guangdong

• PhD Chemical Engineering, University of Toronto, Canada; numerous scholarships, fellowships and awards

Suite 1100, 635 - 8th Ave SW., Calgary, Alberta, T2P 3M3 Phone: (403) 539-4500 Fax: (403) 539-4501