MESSAGE FROM RON CROSS - Merv Marine Limited

1 MESSAGE FROM RON CROSS It is with great pleasure that I produce another merv Newsletter. At our last AGM I explained that if we were going to be a success I had to take merv to the USA like I did with GPS, CourtSmart and VoiceNet. To begin that process I presented a Paper for the Clean Gulf Con-ference in San Antonio November 2011. After my talk I met many oil company and govt oil response peo-ple and organizations. The contacts from those three days led to all you see here. A lot has happened since that AGM and I am pleased to say we have successfully opened the great North American market for merv as we had always planned to do. There are two very important milestone photos in this edition, the one below, when I first paid our Ameri-can Naval Architect Chris Gunter to begin the American Drawings, and the larger one on page four, taken after a corporate meeting at Swift Ships where I showed the merv concept and outlined our goals.

2 We agreed to work together to bring merv to the world. That photo shows President of Swift Ships Calvin LeLeux and I shaking hands with members representing our three companies present. These are long awaited milestones, and as you see in this Newsletter well deserved ones. I want to give special thanks to a few people that believed in my vision and will now reap the rewards. A big thank you to my wife Lori, and Tammy and Brad who put up with my being away so much; a special thanks to Ken Page, now Vice President of merv Marine USA Inc, and wife Lorraine for your support. Thanks to Colin Coverdale and Paul Riley who have provided solid backup in Australia so Ken and I could be here in America, Barb Jamesson who has helped keep our finances in order, Tony Lindley and others who never failed me, and a host of great investors that were always there when we needed them, you know who you are, (a few are in the photo with Kens article), I could not have done this without you.

3 I would like to thank everyone who helped us in two ways, first from Lori and I personally, and second by making merv the success it deserves to be, to our benefit and the worlds. merv Marine USA Inc Ron CROSS gives Chris Gunter of MDG the payment for him to begin designing our first American made merv . merv Marine , MDG and Swift Ships will work together to bring merv to the world. 2 Reports from our Directors From the merv Marine USA Vice President Ken Page Business News from Ken Page As is referred to elsewhere in this Newsletter, we have put together an exciting team made up of 3 Companies, all working independently, but very much as the one team, to build the Oil Spill Recovery workboat that will become the benchmark for the Oil Spill Recovery Industry. After much deliberation we chose SwiftShips to be our Boat Builder and are working very closely with them, In time we will solely use their Production Building No2 for the building of our MERVs.

4 Gary their Engineer works hand in Glove with our American Naval Architects, Marine Development Group (MDG) and we couldn t be happier with both. The merv Marine Offices are now in the same building as MDG. Over the week that hurricane Sandy became a wrecking ball to New York, New Jersey and close by States, there were 6 men working very closely together in complete harmony and very much with the same sense of purpose, as we move towards the building of the merv product. merv Marine USA Incorporated was formed in June 2012. merv Marine Limited is a 10% shareholder of MMUSA Inc. We have always said that the USA Market is where we will gain the most business with their almost 4,000 Oil Rigs in the Gulf of Mexico, and as we develop we can see that the US Company will become the world hub for merv Marine . Through our association with MDG new opportu-nities are already opening up for us in Venezuela, Brazil and other Countries in South America.

5 Of course the buyers want to see the first merv completed. We are being courted by two of the larger work boat operators in North America, Clean Harbours and Moran Enterprises, both of who are looking to replace ageing work boats. Again, once that first merv is complete we can see multiple or-ders coming almost immediately. AND SwiftShips have the capability of building multiple merv s at the one time. Ken Page Vice President, merv Marine USA From the Chairman and Director of merv Marine Limited Colin Coverdale Ron CROSS has arrived back in Australia after months of hard work in the USA pulling together his much needed in-vention which in my opinion is one of those destined to change the way things are done. As an ex oil man I can say without doubt that the merv concept is the best recovery apparatus for oil spill and other pollutants that I have been witness to.

6 It has so many other uses as to make it an invaluable tool that will widen its appeal across several key markets. All of us who have invested with Ron will now realise how tenacious and determined he has been to get merv off the ground or should I say into the water! He is one of those people who make the future, not wait for the future to make them. Despite many doubters and at times adverse circumstances the team I have worked with have been great believers and dedicated people. I am of course referring to Ron CROSS the concept founder, Ken Page and Paul Riley a fellow Director, as well as those who have contributed in particular ways. We are where we are now because of their dedi-cation and I look forward as no doubt we all do, to the realisation of Ron s work which has taken some years of per-severance and courage for which he is to be admired. Colin Coverdale Chairman merv Marine Limited L to R Mike, Andrew, Jason, Robyn, Kathie not showing, Ken and David.

7 Attending but out of the photo are Anders and Lorraine. Photo taken by Lorraine of Ken speaking to merv supporters. A comment to Ron was, we have invested because we believe in your dream and have absolute faith in your ability to succeed . 3 merv Marine Limited merv Workboat Newsletter Last quarter 2012 News & facts about merv and the Marine Environment Industry Australia merv Marine Ltd Forest Lake Queensland Canada merv Marine Canada Toronto Ontario United States merv Marine USA Corporate Pascagoula Mississippi merv Marine USA Development Morgan City Louisiana Contact Product / Sales Ron CROSS Business / Finance Ken Page Australian Management Colin Coverdale Paul Riley At last we dare to hope, now that we are seeing how that success can happen Well how refreshing it is to see the things we have worked so hard for in recent years now starting to bear fruit.

8 I don t need to re-iterate what has already been said in respect of Ron s American sojourn he will reveal the detail of his many positive achievements in engaging serious US expertise and interest in the merv Marine concept. A year ago, mired in negative perceptions of our direction, we fought to convince detractors and supporters alike that despite some well publicised setbacks we were still working and confident that the concept would succeed. While many still believed in the Oil Spill recovery concept we were never short of advice (all well meaning of course) on how to make it work. Strangled by the perception that we had stalled and it should have been done and dusted by now, we struggled to make our first vessel an Australian reality and to convince people we knew how to. I never imagined it would be easy but needed to conceal my own doubts and weaknesses under the weight of such negative perception.

9 Not so for Ron CROSS ; founder, believer and builder of visions; his seemingly in-exhaustible supply of belief and tenacity was fuelling a change of strategy. A quick sidestep around the Australian-based set-backs to hook up in the States where he said the grass was greener; he had done it before and we would do it again. 8 months later a new direction, and a renewed hope of success. At last we dare to hope, now that we are seeing how that success can happen. I would like to thank Ken Page and Colin Coverdale in their respective roles for their superb support of Ron; Ken for packing up and going to the US to support and assist Ron directly in the last few months and Colin for assiduously attending to matters of corporate legislature at home and explaining how the proposed cor-porate structures will work within the law. I look forward to working with Ron, Ken and Colin to build the Australian Com-pany merv Marine Ltd in the next 12 months.

10 Our success will now be predicated on the US Company merv - Marine USA who will launch and pioneer the first full-scale merv ; as fate would have it at the site of the first oil rig ever built, now a museum, ironically within sight of merv s new offices in Morgan City Louisiana. We look forward to Ron s address to the AGM on the 23rd November and to a more prosperous year in 2013. On behalf of all of who kept the bench warm in Oz while Ron was in the US I would like to thank him once again for showing the way and never giving up and also special thanks to our Victorian investors who financed the US trip at a time when we were running low on funds, faith and goodwill. Paul Riley, Director, merv Marine Limited From Director of merv Marine Limited Paul Riley In this photo I am showing merv Marine Limited Directors Colin Coverdale and Paul Riley the Drawings of the first American de-signed merv to be built at Swift Ships and exported World Wide.