Precision Assessment Technology Corporation.
(http://www.precisiontecha.com)

Corporate Overview

Precision Assessment Technology Corporation

Precision Assessment Technology Corporation (“PATC”) provides drilling services and related technologies. PATC’s customers include most major environmental and engineering consulting firms in the USA. All operations are presently conducted through two operating subsidiaries, Precision Sampling, Inc. in Richmond, California and Trenchless Specialties Inc. in Orlando, Florida.

Drilling services are currently provided using direct push, auger and sonic rigs. Services are provided to:

1. Assess, remediate and monitor contaminated soil and ground water.
2. Install underground utilities.
3. Conduct geotechnical assessments for industrial and institutional construction projects.
4. Assist the construction industry in the development of foundations and stabilization initiatives.
5. Provide the mineral exploration industry with coring and assessment services.

The environmental and geotechnical drilling services industry is extremely fragmented with no national or dominant player. PATC intends to acquire and consolidate select local and regional companies in order to establish itself as a national and dominant player. Corporate offices, which are located in Vancouver, British Columbia, are responsible for M&A and financing activities while all operating management resides in the USA operations.

PATC is publicly listed on the Toronto Stock Exchange. It is governed by a 7 person Board of Directors that meets regularly, both formally and informally. PATC’s Board members are experienced at growing construction and service businesses.

PATC operates in robust industry sectors. It has a diverse client base with no customer concentration and its customers are financially sound. Payback on new equipment tends to be 12-24 months, and improved marketing and management systems are intended to deliver solid organic growth.

Operating Subsidiary History

Precision Sampling, Inc.
Precision Sampling Inc. (“PSI”) was founded in 1990 to provide environmental professionals with drilling services for the characterization and remediation of contaminated soil and groundwater. PSI was acquired by PATC in 1999.

PSI’s revenue, earnings, service capabilities and geographic base have been expanding at an average growth rate of approximately 13% per year since 1996. 1996 revenues were approximately $2.0 million which grew to $8.0 million approximately in 2005 from operations in Orlando, Florida and Richmond, California. PSI began expanding its drilling capabilities in 2004 by acquiring Sonic drilling and Cone-Penetrometer Testing (CPT) rigs. Additional new drill rigs (Sonic) were added in 2005 and its existing fleet is being continuously updated. PSI currently has a fleet of 29 rigs.

For more information about PSI visit www.precisionsampling.com

Trenchless Specialties, Inc.
Trenchless Specialties, Inc. (“Trenchless”) was purchased in October 2005 by PATC. Trenchless was founded in 1995 to provide horizontal directional drilling services for the installation of underground utilities, and has since expanded into the environmental market.

Trenchless is one of only a few horizontal drilling contractors licensed in Florida to install horizontal wells for environmental applications. At the time of the acquisition by PATC, TSI owned 3 horizontal drill rigs. Since then 2 new rigs have been acquired.

For more information about TSI visit www.trenchlessspecialties.com

Groundwater Protection, Inc
Groundwater Protection, Inc. (“Groundwater”) was purchased by PATC in October 2005. Groundwater was founded in 1986 and provides auger drilling services to consultants and engineers involved with contamination assessment and clean-up projects in Florida. Groundwater has completed work at well over 15,000 sites throughout the Southeastern United States. At the time of purchase, Groundwater operated 6 auger rigs. Since the acquisition 1 new Geoprobe rig has been added.

PATC recognized the strong management in Groundwater and Trenchless divisions; upon acquiring Trenchless and Groundwater, PATC moved the PSI Florida division into the Trenchless/Groundwater premises and folded those operations under COO, Brian Shutts’ management. All 3 operations now operate as a division of Trenchless. That step has resulted in efficiencies and cost reductions, resulting in a material improvement in financial results.

For more information about GPI visit www.groundwaterprotection.com

2006 Performance
The Florida operations are now PATC’s largest revenue producer, currently producing approximately $13 million per year of revenue, which is expected to grow to $15.5 million by 2007. California operations achieved approximately $3.3 million of revenue in 2005, is expected to approach $4.5 million in 2006, and exceed $5.0 million in 2007.

Current Status and Direction

Over the last two years PATC has begun the process of becoming a full-service drilling company. Prior to 2004, PSI operated primarily direct push rigs; in 2004, PSI to begin expanding into sonic drilling. In 2005, the fleet of sonic rigs grew from one to six, which include four EP Sonic rigs. Two Cone-Penetrometer testing rigs were also added. These additions expanded PSI’s technical service capabilities, facilitating growth by opening new markets.

The acquisition of Trenchless and Groundwater improved management depth and further expanded PATC’s drilling service offerings. The acquisitions added auger and horizontal drilling capabilities in the Florida market. The auger rigs enable PATC to increase its market share in the gas station monitoring segment of the Florida environmental market. The horizontal rigs enable the Company to provide services to the utility market where it had no previous presence.

PATC is now positioning itself to aggressively pursue geographic expansion. Organizational changes have occurred which provide more management depth. Both internal and external communications are being improved. PATC continues to work on increasing sales from existing operations by securing larger, longer-term contracts, broadening its available technologies, and expanding its range of drilling services. PATC is currently undergoing significant improvements in information and financial management systems, and the addition of strong and improved internal processes. A number of potential acquisitions are under review in new drilling services markets.

The Market

The market for PATC’s services is significant due to increasing political pressures for clean water and soil. The primary forces affecting the demand are the U.S. Environmental Protection Agency (which has an annual budget of $7.5 billion) and the need for clean drinking water. The market for PATC’s services exceeds $2 billion.
PATC will also benefit from other drivers including, a strong demand for the reuse of contaminated real estate (Brownfield development), large industry initiatives, housing demands, and the need to redevelop abandoned lands. At the moment, PATC’s market share is less than 1/2%. PATC intends to seize the opportunity in the industry to consolidate companies and build a dominant and national player. As a consolidator, PATC will enjoy the economics of scale in areas such as maintenance, purchasing, accounting, administration, best practices and equipment utilization. As a consolidator and technology leader, PATC will be able to expand its services to obtain larger jobs and increase revenues and margins.