SOURCE: Harmonic Energy Inc.

Harmonic Energy Inc.

July 14, 2014 08:56 ET

Harmonic Energy Signs New Tire Feedstock LOI for Its Expansion Plans

LONDON, UNITED KINGDOM--(Marketwired - Jul 14, 2014) - Harmonic Energy Inc. (OTCQB: ASUV) is a company focused on tire manufacturing and recycling using an innovative approach to energy efficiency and sustainability. Harmonic is pleased to announce that it has signed a LOI for a long term supply of tire feedstock. Harmonic Energy has signed the letter of intent with Consolidated Tire Processing LLC., a well-established tire recycling company that serves the south and south-east of the United States who will supply 18,000 tonnes per year of scrap tires under the terms of the 10 year agreement. Harmonic's plans to remanufacture a small percentage of the old tire casings into new premium passenger and light truck tires. The waste or scrap tire casings that can no longer be re-used will be converted into clean energy and green commodities using Harmonic's patented Tyrolysis™ system.

Based on 18,000 tonnes annually, Harmonic anticipates a conversion value estimate based on each scrap tire having an estimated weight of 9.0 kilograms which would be an estimated 2,000,000 million scrap tires per year. According to the company's research and on-going negotiations management believes the following values could be derived from each area of Harmonic's recycling process. The tire manufacturing opportunity could represent 500,000 units suitable for the remanufacturing process which could be split into two types of tires using the following calculations, 60% passenger tires and 40% light truck with estimated average sales revenue of approximately $30 per finished remanufactured tire which could possibly generate approximately $15,000,000 dollars in sales revenue. The remaining tires which may not be suitable for the remanufacturing process would be used in the company's Tyrolysis process for conversion into additional commodities. Continuing the output calculations and assuming 1,500,000 tires are remaining, Harmonic plans to convert these tires in oil, carbon and steel, all of which the company intends to sell on the open market. We believe the current estimated values could represent the following with 13,500 tonnes of tires remaining for the Tyrolysis process; an estimated 6,075 tonnes of oil with an estimated current market prices of approximately $700 per tonne could represent $4,252,500 in sales annually, 4,050 tonnes of carbon with an estimated current market price of approximately $1,125 per tonne could represent $4,556,350 in sales annually and 1,350 tonnes of steel with an estimated current market price of approximately $250 per tonne could represent $337,500 in sales annually.

ASUV believes that its vertically integrated tire manufacturing and recycling systems hold the key to a profitable, sustainable market for the growth of a greener tire manufacturing sector by providing a complete end to end solution. Harmonic plans to be the first company to integrate these two technologies to provide a comprehensive 'closed-loop' solution for the management of scrap tires, which is a global problem. By design, Harmonic plans to offer a solution that replicates nature's intentions by developing symbiosis between waste, energy supply and sustainable growth.

ASUV believes that its vertically integrated tire manufacturing and recycling systems hold the key to a profitable, sustainable market for the growth of a greener tire manufacturing sector. ASUV plans to compete alongside major international corporations striving for more sustainable tire manufacturing solutions and commodities, such as Sumitomo Rubber Industries Ltd., Nankang Rubber Tire Corp., and Hankook Tire Co Ltd.

About Harmonic Energy Inc.

Harmonic is a company that focuses on a comprehensive solution to the disposition of scrap tires worldwide. Harmonic's plans include the utilization of proven technologies that ensure each scrap tire is either remanufactured and put back on the road as a new tire or is completely recycled and reduced into marketable chemical commodity products. Both the tire remanufacturing and carbonization technologies that will be utilized by Harmonic are commercially proven and have viable operating commercial facilities.

Harmonic plans to be the first company to integrate these two technologies to provide a comprehensive 'closed-loop' solution for the management of scrap tires. By design, Harmonic plans to offer a solution that replicates nature's intentions by developing symbiosis between waste, energy supply and sustainable growth. For more information please visit ASUV's website ~ www.harmonicenergyinc.com.

Safe Harbor
Statements in this release may be regarded, in certain instances, as "forward-looking statements" pursuant to Section 27A of the Securities Act 1933 and Section 21B of the Securities Exchange Act 1934, respectively. "Forward-looking statements" are based on expectations, estimates and projections at the time the statements are made, and involve risks and uncertainties, which could cause actual results or events to differ materially from those currently anticipated, including, but not limited to delays, difficulties, changed strategies, or unanticipated factors or circumstances affecting Harmonic Energy Inc and its business. There can be no assurance that such forward-looking statements will ever prove to be accurate and readers should not place undue reliance on any such forward-looking statements contained herein. Harmonic Energy Inc will not republish revised forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.