Magma will hold the exclusive worldwide production, sales and marketing rights to all products made from their Magma products.

The Magma product line of fibers is an innovative material that, due to its superior qualities and environmental compatibility, is positioned to replace conventional manufacturing materials such as fiberglass, carbon fiber, Kevlar, steel, aluminum and wood in a wide range of applications. In comparison to these commonly used materials, this line of products can provides a lower cost of production, superior strength, reduced weight, improved vibration resistance, superior thermal conductivity resistance, greater price stability, with minimal environmental impact. Magma founder, Lilo Benzicron, plans to develop many more innovative products with different fibers and strengths that will be patented and brought to market as soon as possible.

One of Magma’s products is Barotex®. The concept for the Barotex® material began in 1996 by Lilo BenZicron. Mr. BenZicron, the CEO of Magma, has spent many years in extensive R and D to finalize the development of Magma’s specialty composite fibers and their manufacturing processes. Inclusive of the many years of R and D, the unique characteristics, applications and uses of Barotex® composite fibers have been validated working with companies such as Ford Motor Company, Boeing, Exxon, Isuzu and other large potential end users working through numerous testing and validation processes.

Mission Statement

Magma International Inc. will provide the highest-grade composite manufacturing materials for worldwide distribution that are stronger, lighter, superior in performance, environmentally friendly and recyclable, with solid profit margins.

Market Opportunity

As a product offering, Barotex® falls within the manufacturing and building materials classifications with products targeted as direct replacements to conventional construction and manufacturing materials such as fiberglass, Kevlar, carbon fiber, steel, aluminum and wood. Global market research firm Lucintel reports that the US glass fiber material market will exceed $8.4 billion and the carbon fiber market is estimated to exceed $2.5 billion. That’s a combined market size of $10.9 billion.

Composite Market Opportunity

The global market for high quality, scalable Barotex® composites is projected to reach combined gross sales within five (3) years in excess of $200,000,000 The following market observations by Lucintel, a leading global market research firm, cites market size and growth in two (2) key Barotex® markets clearly indicating that any one of those segments could support our entry and sales projections.

• Global Composite Materials Industry – The global composite materials market is expected to reach an estimated $59.1 billion by 2022 and it is forecast to grow at a CAGR of 5.1% from 2017 to 2022. The global composites end product market is expected to reach an estimated $115.4 billion by 2022.

• Carbon Fiber Materials Industry – the global carbon fiber market was valued at $1.9 Billion in 2015, and is expected to reach $4.6 Billion by 2022, growing at a CAGR of 11.1% during the forecast period. The aerospace & defense segment was the largest revenue contributor to the global carbon fiber market in 2015. North America held the leading position, both in terms of value & volume, in 2015, and is expected to grow at the highest rate during the study period. These are the precise markets that our internal product testing analysis point to as our strongest application opportunities.

Technology Summary

The concept of extruding fibers from volcanic or basalt rock is an established process, as it was first granted a US patent in 1923. Researchers in the united States experimented with basalt fibers for military and other applications with several glass companies being awarded patents in that field. However, efforts were abandoned around 1970 as companies pursued other product developments, from which Owens Corning developed s-2 glass. The research efforts in this field continued primarily in Eastern Europe where the technology was developed to produce basalt fibers.

European basalt fibers are produced in a one-step process whereby the lava rock used in its’ production is smelted, processed and pulled in one step. This methodology does not eliminate many undesirable, inherent compounds that serve to make this fiber construction measurably weaker and less durable than Barotex®. Barotex® fibers produced in the United States by the Company will employ a unique and proprietary process whereby a special, selected volcanic lava rock is used with most of its inherent, undesirable compounds removed. Additional proprietary mixes/solutions are added to the first phase of the production to create small “Frits”. “Frits” are small, marble-like structures that are accumulated and prepared for the second phase of the Barotex® process. After frits are produced in quantity, they are then re-smelted at a specific temperature and drawn through a specially engineered apparatus creating a uniform fiber with a straight parallel grain. This structure exhibits much higher vibration resistance and improved temperature dissipating properties while maintaining its strength, light weight and cost effectiveness.

In a world continuously driven by mounting environmental concerns Barotex® fibers establish a platform that can generate a wide range of new, innovative product solutions. The Barotex® production process itself is emissions-free, the fibers are 95% inorganic, they can replace conventional manufacturing materials helping to lower the material industry’s dependence on emissions-producing feedstock materials. Finally, at the end of its useful product life cycle, Barotex® fibers can be recycled making long-term sustainability a more attainable reality. Barotex® materials “naturally” minimize harmful emissions by utilizing volcanic rock, a naturally renewable resource, as its base Material.

The existing equipment of the business has been relocated to South Carolina and will be operated by Magma. Assembly, refurbishing and retrofit of existing equipment is currently underway.

Intellectual Property

The Company owns Patent No.: US 7,223,708 B2 for Inorganic Fabric (see Appendix). Barotex® is a registered trademark (US Serial No. 77107147) as a chemical fiber for textile use (synthetic fibers and filaments for use in the manufacture of fabrics, textiles, yarns and carpets), as a chemical fiber base mixed thread and yarn, as a ballistic resistant fabric, as a fiberglass reinforcement fabric for use in land, sea and aerospace applications, fireproof upholstery fabrics, inorganic fiber mixed fabrics, knitted fabrics of chemical-fiber yarn, resin-saturated fiberglass fabric for use in transportation, armoring, structural reinforcement and structural repairs, and as semi-finished plastic products for use in the manufacture of protective clothing, helmets, and hard armor.

Strategy

The Company’s strategy will be to target distributors and innovative manufacturers involved in the automotive, marine, construction, wind energy, aerospace, appliances, electrical/electronics, ballistics and sporting goods industries. Our focus will be directed toward internally profiled clients who can rapidly adopt and integrate the Barotex® products into their current operations. The Company will offer technical data and product samples for testing. Additional support for these manufacturers will come in the form of product education and application assistance, citing the products’ advantages over conventional manufacturing materials while assisting in the development of their manufacturing protocols.