Collaboration agreement between Hydrogen Source AS and Paleo Group Inc.

Hydrogen Source AS (HSAS) in Norway and Paleo Group Inc. (PALEO) in the USA have entered in a collaboration agreement to form a joint venture to produce pollution free lowest cost hydrogen at one of the natural gas fields operated by Paleo in Oklahoma. “We are happy to enter into this collaboration agreement with PALEO, who have a long experience in producing gas fields and developing new gas production technologies. We have jointly reviewed PALEO´s gas fields in Oklahoma and are glad to have identified reservoirs suitable to implement a novel hydrogen production process developed by HSAS. In this project a proprietary HSAS hydrogen in situ generation technology will be applied in a field in order to produce a dramatically lower cost hydrogen, without “black carbon” production and CO2 emissions to the atmosphere,” - says Kjetil Martin Stuland, CEO of Hydrogen Source AS. “PALEO is excited to collaborate with Hydrogen Source AS in a novel technological project which will enable first commercial green hydrogen production from the natural gas fields in the USA,” - says Prof. Curtis Whitson, Director of Paleo Group Inc.

Hydrogen Source AS is a Norwegian technology company that has developed and patented Hydrogen Generation from Hydrocarbons Sub-terrain (HGHS) process. HGHS allows to generate hydrogen in situ of the reservoir directly from natural gas and produce it in commercial volumes at a cost dozen times lower than current main hydrogen production technology Steam Methane Reforming (SMR), and much lower than electrolysis. 90% of hydrogen in the world today is produced by the SMR process with 700 million tons of CO2 emissions in the atmosphere. The success of the HSAS production method has the potential to eliminate virtually all such “greenhouse” gas emissions. The HGHS technology is a result of more than 10 years of R&D activities, which were started at NORCE Research Centre in Norway.

Paleo Group Inc. was incorporated in the state of Oklahoma in 1969. Paleo is bonded to operate oil and gas wells in both Oklahoma and Texas and is in good standing with the Oklahoma Corporation Commission and Texas Railroad Commission (the governing bodies in each state to regulate oil and gas operations). Paleo is also in good standing with the Oklahoma Tax Commission and the Internal Revenue Service (both federal and state taxing authorities). Paleo was led by Harold L. Summers, President, from 1969 to 1985. Douglas G. Summers, his son, came to work at Paleo in 1981 and became president in 1986 to present. Paleo has operated hundreds of wells in West Virginia, Texas, and Oklahoma during the past 50 years.