FIRST LITHIUM LIMITED — AGM Information 2010

Nov 29, 2010

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ADVANCED ENGINE COMPONENTS LTD

(ASX code ACE)

Annual General Meeting FY2010

30 November 2010

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	Proxy Forms No. Resolution For Against Abstain Discretionary 1 Adoption of Remuneration Report 125,567,245 46,501 108,001 25,002 2 Re-election of Director – Mr. Vivekananthan M.V. Nathan 125,675,246 5,500 41,001 25,002 3 Re-election of Director – Mr. Manharlal Bhaichand Gathani Jain 125,675,246 5,500 41,001 25,002 4 Re-election of Director – Mr. Graham Keys 125,675,246 5,500 41,001 25,002	Proxy Forms No. Resolution For Against Abstain Discretionary 1 Adoption of Remuneration Report 125,567,245 46,501 108,001 25,002 2 Re-election of Director – Mr. Vivekananthan M.V. Nathan 125,675,246 5,500 41,001 25,002 3 Re-election of Director – Mr. Manharlal Bhaichand Gathani Jain 125,675,246 5,500 41,001 25,002 4 Re-election of Director – Mr. Graham Keys 125,675,246 5,500 41,001 25,002	Proxy Forms No. Resolution For Against Abstain Discretionary 1 Adoption of Remuneration Report 125,567,245 46,501 108,001 25,002 2 Re-election of Director – Mr. Vivekananthan M.V. Nathan 125,675,246 5,500 41,001 25,002 3 Re-election of Director – Mr. Manharlal Bhaichand Gathani Jain 125,675,246 5,500 41,001 25,002 4 Re-election of Director – Mr. Graham Keys 125,675,246 5,500 41,001 25,002	Proxy Forms No. Resolution For Against Abstain Discretionary 1 Adoption of Remuneration Report 125,567,245 46,501 108,001 25,002 2 Re-election of Director – Mr. Vivekananthan M.V. Nathan 125,675,246 5,500 41,001 25,002 3 Re-election of Director – Mr. Manharlal Bhaichand Gathani Jain 125,675,246 5,500 41,001 25,002 4 Re-election of Director – Mr. Graham Keys 125,675,246 5,500 41,001 25,002	Proxy Forms No. Resolution For Against Abstain Discretionary 1 Adoption of Remuneration Report 125,567,245 46,501 108,001 25,002 2 Re-election of Director – Mr. Vivekananthan M.V. Nathan 125,675,246 5,500 41,001 25,002 3 Re-election of Director – Mr. Manharlal Bhaichand Gathani Jain 125,675,246 5,500 41,001 25,002 4 Re-election of Director – Mr. Graham Keys 125,675,246 5,500 41,001 25,002	Proxy Forms No. Resolution For Against Abstain Discretionary 1 Adoption of Remuneration Report 125,567,245 46,501 108,001 25,002 2 Re-election of Director – Mr. Vivekananthan M.V. Nathan 125,675,246 5,500 41,001 25,002 3 Re-election of Director – Mr. Manharlal Bhaichand Gathani Jain 125,675,246 5,500 41,001 25,002 4 Re-election of Director – Mr. Graham Keys 125,675,246 5,500 41,001 25,002
	No.	Resolution	For	Against	Abstain	Discretionary
	1	Adoption of Remuneration Report	125,567,245	46,501	108,001	25,002
	2	Re-election of Director – Mr. Vivekananthan M.V. Nathan	125,675,246	5,500	41,001	25,002
	3	Re-election of Director – Mr. Manharlal Bhaichand Gathani Jain	125,675,246	5,500	41,001	25,002
	4	Re-election of Director – Mr. Graham Keys	125,675,246	5,500	41,001	25,002

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Mission Statement
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To be the leading supplier of Technology solutions for alternative fuel engines and vehicles to the Asia Pacific Region through innovation and quality.

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Challenges of FY 2010
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• Global Financial Crisis

• Drop in the price of oil

• Orders deferred and payments slowed

• Sales growth dropped by 65% but now increasing.

• ACE NGVs in Asia Pacific region increased by only 3.6% to 1620. Since 30 June increased to 1821.

• � 50% decrease in sales of spare parts

� SQT and Norinco Equipment

• Fifth generation ECU now in production

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ACE Sales and Crude Oil Prices
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Source: http://www.nyse.tv/crudeoil-price-history.htm

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Geographical Sales
$ 4.8
$ 4.7
$ 3.1
$ 2.6
$ 1.8
$ 1.6
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Sales Mix
# 650 # 650 # 750 # 1000 # 1500 Vehicle Numbers
$ 4.8
$ 4.7
$ 3.1
$ 2.6
$ 1.8 $ 1.65
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Existing and Target International Markets
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Target Markets Existing Markets

AEC NGVS China - 369 France - 600 Thailand - 420 Australia - 47 Indonesia - 64 India – 3,500 by 30/6/2011

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ACE Kits and Engines
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� CNG

• LNG

• Hybrid (Gas/Electric)

• HCNG (Hydrogen Natural Gas Blend)

• Biomethane

• Coal seam methane

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ACE NGVS In the Field
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Deutz (Dalian) - Hybrid

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ACE NGVS in the Field
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Haikou (Xilian) - LNG

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Jiefang (FAW) - CNG
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ACE NGVS in the Field
Hangzhou (Weichai) - LNG
Jiefang (FAW) - LNG
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Advanced Products
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� Generation 5 NGVS (ECU5) in production

� CNG/LNG Injectors in production

� Ignition Coils in production

• High Pressure Filter in production

� Regulators under development (prototype)

• Turbo Dump Valves under development

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Working Capital Finance Facility
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• $600,000 of working capital.

• Provided by:

• Part introduced b ACE’s ma or shareholder 75% y y j

� Mr V.V. Nathan 25%

• Repayable on or before 31 December 2011.

� 8% interest to a maximum of 12%.

• Premium 4% of ACE’s EBITDA in 3 months preceding repayment.

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Contracts requiring Working Capital
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� 100 ACE NGVS for Deutz (Dalian) Engine Co hybrid buses.

� 14 engines for AU-Serechai Co Thailand. � 3,500 ECUs and 16,000 injectors for SQT India.

� 2,500 injectors for Iveco, France.

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Deutz (Dalian) Engine Co (DDE) Hybrid Buses
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� Engine development with DDE/First Auto Works since 2003.

� Hybrid natural gas/electric engine using DDE 6.6L engine.

• Parallel hybrid – NG engine can drive bus directly.

• 200 in service now.

• Project supported by Chinese Government.

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200 Engine order for AU – Serechai Thailand
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� AU-Serechai operate NG buses and trucks, workshop for maintenance and repair.

• 130 existing vehicles with engines with ACE NGVS.

• ACE provides base engine and NGVS for assembly in Dalian, China.

• 200 NG engines at approx 14 per month shipped to Thailand.

• AU-Serechai will install in Thailand.

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ACE ECUs and Injectors for India
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• 10 year contract plus further 10 years spare parts for buses and trucks.

� ACE delivers Electronic Control Units (ECUs) and Injectors to SQT in India.

• 1,000 deliveries by 31 December 2010.

• 3,500 deliveries by 30 June 2011.

• Prospect for:

• Dual Fuel

• Hybrid

• Direct Injection

• HCNG Fuel

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Spare Parts to France
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� 600 Renault buses with ACE NGVS in 21 cities in France since 2002.

� 20 year spare parts contract to 2024.

� Injectors purchased from Clean Air Power, San Diego and calibrated in Perth.

• 2,500 injectors by 30 June 2011, to Iveco, France.

� ACE also supplies other NGVS component spare parts.

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Summary
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• Proven world leading products

• Natural Gas is the leading alternative fuel

• India France

• Key OEM arrangements in China, , & Australia

• Strategic relationship with Norinco Equipment

• Expanding Asian demand & sales

• Supportive major shareholder

• Minimum external debt

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An Idea Whose Time Has Come
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www.advancedeng ne.comi

email: shares@advancedengine.com phone: +61 8 9209 6900 fax: +61 8 9209 6977

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