On March 13, 2013, our company entered into a letter of engagement (the “Letter of Engagement”) with BC Research Inc. (“BC Research”) pursuant to which we Engaged BC Research to design and engineer a proposed demonstration unit of Mantra’s ERC (electro-reduction of carbon dioxide) technology. The scope of work will include determining power requirements for the planned ERC unit, and producing an equipment list, a functional description of equipment and specification, electrical drawings, a drawing package for potential suppliers, and a simplified 3D model of the system. The objective of the engagement is to determine the fabrication and operating costs of the demonstration unit to within a 25% variance. It is estimated that completion of the planned work will be achieved within 15 weeks from the date of Mantra’s purchase order and payment of a CDN$30,000 retainer. Mantra will compensate BC Research based on its customary hourly rates. The total estimated cost of the work plan is CDN$137,000 (approximately USD$134,000). Mantra will retain all intellectual property resulting from the services and may elect to terminate the work at its discretion.

Concurrently with the engagement of B.C. Research, our company, through our subsidiary Mantra Energy Alternatives Ltd., has entered into a Sublease Agreement with B.C. Research Inc. dated as at February 25, 2013 for the sublease of a workshop and office space of approximately 600 square feet located in Burnaby, British Columbia. The term of the sublease will continue until March 1, 2014 at a cost of CDN$18,720 (approximately USD$18,322) payable in monthly installments of CDN$1,560

The description of the Letter of Engagement contained in this Item 1.01 is a summary and is qualified in its entirety by reference to the copy of the Letter of Engagement as attached hereto as exhibits, and which is incorporated herein by reference.

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