This is a brief description of our business, we have about 2/3 of the financing done and are trying to polish of the equipment side. We should have a new offering and disclosure document out in a week or two.

1. Introducing A Maryland based Micro-Distiller of premium spirits TM

3. Distillation is the process by which alcohol is concentrated by heating a fermented mixture containing a relatively low amount of alcohol, and condensing the resulting alcohol vapor. This works because alcohol evaporates at about 78 Celsius and water at about 100. That’s the technical side of it. The artistic part comes in when you think about the fact that most of the components that are responsible for aroma volatilize at room temperature, and that by distilling you can concentrate them at the same time as the alcohol. The goal of the craft distiller is to capture the aromatic components that identify a variety of distillate, and eliminate the things that would eventually break down, thus liberating the spirit of the grain. Starting production with vodka allows for rapid turnaround from raw ingredients to finished product though micro-distilling products range from eau de vies to absinthe. Micro-distilling: What? © 2006-2008 BlackWater Distilling Inc. All rights reserved.

7. © 2006-2008 BlackWater Distilling Inc. All rights reserved. Estimated Completion Date Blackwater Distilling by Phase Begin production March 2010 From Start of Commercial Production Produce approximately 60 cases per week; maximize marketing funds/efforts Gauge demand, adjust production and output; diversify offering ASAP Re-baseline equipment, staffing and facility needs after 12-16 months of production Phase 3 December 2009 Upon Receipt of Financing Finalize lease in Chesapeake Bay Business Park and begin talks with licensing agencies for facility move; purchase and take receipt/install of all equipment Initiate and complete prototyping to proper scale for commercial production (for retail sale) Office Prep & Marketing launch Phase 2 November 2009 Currently Underway Product and package prototype development Property identified Secure lending Phase 1

8. Current Equity Investment Current officer, director and external investor investment in and on behalf of BlackWater Distilling, Inc. stands at $165,020. Facility Chesapeake Bay Business Park offers ample convenience and commercial space in the range of 7-13 dollars per square foot, for warehouse and office respectively Construction Construction costs will be included in lease, as KRM makes the space suitable for our production needs, to include trench drains, thicker slab and boiler Equipment Equipment will include all components of turnkey distilling system provided by Vendome Copper, Louisville, Kentucky. This equipment is the best domestic manufactured available, and was chosen after years of research, both first hand and academic, into the three primary vendors. (equipment cost is approximately $257,000) Operating Cost Operating cost will cover our initial shortfall forecast, management reserve and ‘other equipment’ to accommodate product introduction phase. (Operating cost is committed by The Talbot Bank for 275k) Blackwater Distilling: Use of Funds © 2006-2008 BlackWater Distilling Inc. All rights reserved.