SOURCE: Abakan Inc

February 05, 2015 10:07 ET

Abakan's PComP Protective Coatings Gaining Traction in North America and Asia

MIAMI, FL--(Marketwired - Feb 5, 2015) - Abakan Inc. (OTCQB: ABKI) ("Abakan"), an emerging leader in the advanced coatings and metal formulations markets, announces several recent developments related to its PComP protective coatings. Abakan has completed field testing of a PComP coating at one of the largest steel companies in Mexico and as a result anticipates a commercial order of the product. Meanwhile, Abakan is now testing its PComP coatings in Taiwan in cooperation with its partner in Asia, UP Scientech Materials Corp. Furthermore, Abakan has received its first repeat orders from an international oil field services customer in Canada.

In Mexico, roller screens (rolls) used to separate green iron ore pellets were coated with Abakan's PComP-W protective coating and installed alongside of rollers protected with standard coating products. After 6 months of side-by-side utilization, Abakan's PComP coated roller screens looked as good as new, showing almost no sign of abrasion or dimensional loss and did not need to be replaced. By comparison, the rolls protected with standard coatings were absolutely battered, showed a dimensional loss of 6mm to 15mm and required replacement. Abakan's agent in Mexico and Central America, Metallurgic Solutions, S.A. de CV, is now negotiating the terms of a commercial order.

From Taiwan, Abakan's partner in Asia, UP Scientech, intends to launch PComP coatings into Asian markets. Abakan expects UP Scientech's testing and validation process to be completed over the next few months with initial sales in Asia by mid-2015. UP Scientech, with an established business presence in over 35 countries is expected to become a gateway to opening marketing channels that may lead to global sales of Abakan's PComP coatings.

In Western Canada, an Abakan customer who had been using PComP coatings primarily to coat pumps used in oil sands production is now also using PComP to coat mandrels, plungers and other oil field components for one of the world's largest oilfield services companies. PComP coated plungers, which are currently being field tested, have already shown a 3 times longer life over 9 months and counting as compared to plungers coated with conventional tungsten carbide coatings which must be replaced every 3 to 4 months. Abakan expects to be qualified as a supplier of thermal spray coatings for this and possibly other large oilfield services companies within the next 3 to 9 months, which would lead to a significant increase in the use of PComP coatings to protect oilfield components.

"The demand for our PComP materials is ever increasing and it has now become absolutely essential for us to scale-up production to meet the growing demand," said Abakan CEO, Mr. Robert Miller. "We expect to complete the first-stage of PComP production scale-up, from 6 tons/year to 18 tons/year, before the end of February, 2015. The initiation of Phase II of the production ramp up, to 160 tons/year, in a new Abakan production facility, may commence within the next couple of months. We are confident that PComP's ability to extend the useful life of the material coated, while significantly reducing downtime and associated maintenance costs, will drive early adoption of our products, resulting in a significant increase in sales," concluded Mr. Miller.

About Abakan Inc.
Abakan develops, manufactures, and markets advanced nanocomposite materials, innovative fabricated metal products and highly engineered metal composites for applications in the oil and gas, petrochemical, mining, aerospace and defense, energy, infrastructure and processing industries. Abakan's technology portfolio currently includes high-speed, large-area metal cladding technology; long-life nanocomposite anti-corrosion and wear coating materials. Abakan's products have demonstrated longer life, higher productivity and extremely high strength-to-weight ratios compared to competing technologies. The Abakan group of companies has been honored by The Wall Street Journal as the #1 Manufacturing Innovation across the globe, by Pipeline Industries Guild as the Top Subsea Pipeline Technology, by Forbes as the #1 Most Promising Material Science Company in the United States, by American Metals Market with the Steel Excellence Award, by Inc. 500 as one of the Fastest Growing Manufacturing Company in the U.S., and has received numerous other trade, industry and technology awards including five R&D 100 Awards and a Technology Innovation Award from the National Institute of Standards and Technology. Over $50 million has been invested in product development and testing by federal agencies, national labs and our companies in order to deliver products that offer improved performance over the current state of art. Abakan has successfully introduced its PComP™ W for metal asset protection and life extension in the oil and gas and mining industries, and is currently focusing on the scale-up and commercialization of its highly disruptive metal cladding products for the oil and gas, oil sands, and mining industries. Abakan currently operates from multiple locations in United States, and intends to expand global operations in Canada, Asia, Mexico and South America.

Forward-Looking Statements
A number of statements contained in this press release are forward-looking statements. These forward looking statements involve a number of risks and uncertainties including technological obsolescence, market acceptance of future products, competitive market conditions, and the sufficiency of capital resources. The actual results Abakan may achieve could differ materially from any forward-looking statements due to such risks and uncertainties. Abakan encourages the public to read the information provided here in conjunction with its most recent filings on Form 10-K, Form 10-Q and Form 8-K. Abakan's public filings may be viewed at www.sec.gov.

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