Dynamic Energy Alliance Corporation announced that it has initiated the first phase (or prototype phase) of a four-phase operating plan to validate and commercialize patent pending technologies that extract high value organic compounds from waste tires. Pursuant to the agreement in principle executed with the company on October 11, 2012, Terpen Kraftig LLC (TK), the inventor of the TKF fractionator system, has completed the initial design, specifications and sourcing of the specialized equipment necessary to accomplish the prototype phase. Over the next two to four months, the company and TK plan to work together to complete the fabrication and testing of the prototype unit, anticipated to process five gallons of organic compounds per day.

The company is progressing on a timetable in which the prototype phase commences in fourth quarter 2012 (the current quarter), followed by Phase Two (TKF scale-up phase) starting first quarter 2013. After completion of the first two phases, the company will be in a position to implement the TKF pilot phase, which is anticipated to begin first quarter 2014 or sooner, in which it will build a pilot (demonstrator) plant with an estimated 50 gallon-per-day capacity. Phase Four will be a fully operational and modular 25 ton-per-day state-of-the-art pyrolysis plant, which the company plans to build and operate while also focusing on the syndication of its processes to interested third parties.

Completion of all phases is dependent on the company's procurement of the appropriate funding. The company is operating under the previously executed non-binding agreement in principle with TKF dated October 11, 2012, which contemplates execution of a binding definitive agreement, the terms of which still need to be negotiated in part.