Mr. Michael McLaren reports:

Bulletin board status

The company received comments from FINRA regarding its latest submissionfor an OTCBB listing. The company has addressed the comments andre-submitted the application on July 22, 2008.

Frankfurt Quote

On July 15th 2008, the company de-listed its common stock from theFrankfurt exchange. The company is presently working on a fully reportinglisting with a separate class of shares and different CUSIP number andexpects the listing to be active within the next 120 days.

Quotations

The company continues to receive several inquires per day for our ModularMicro GTL plants. The demand for our product is increasing rapidly and weare pursuing the qualified applications. The company expects to execute on5 more joint venture partnerships before end of 2008

Joint Venture Partnerships

W2 Energy received a purchase order from Better World Energy on July 172008 for US$7,900,000 the company will now issue an invoice with terms andconditions and accept a deposit of 20%, following the receipt of thedeposit the company will begin the design of the 40 ton plant. Once thedesign plans are approved the company will receive 50% of the plant costand then 20% upon completion of the manufacturing stage. The company willreceive the last 10% prior to shipping the product overseas.

On July 22, 2008 W2 Energy received a purchase order from Cobal Chile forUS$12,900,000 the company will now issue and invoice with terms andconditions and accept a deposit of 20%, following the receipt of thedeposit the company will begin the design of the 40-ton plant. Once thedesign plans are approved, the company will receive 50% of the plant costand then 20% upon completion of the manufacturing stage. The company willreceive the last 10% prior to shipping the product from W2 Energy.

W2 Energy's plants are skid mounted and modular and flexible systems, theyare manufactured and tested prior to shipping.

Technology

The company is presently pursuing a number of technologies that arecomplementary to our Modular Waste to Energy plants. These technologiesinclude algae production systems, solar generators for the remoteproduction of liquid fuel from stranded natural gas wells and stranded coaldeposits.

About W2 Energy Inc.

W2 Energy Inc. is a growing, publicly traded company that developsrenewable energy technologies and applies it to new generation powersystems. Specifically, W2 Energy Inc.'s plasma assisted biomass-to-energyplants utilize state of the art technologies to produce green energy bothfuel (sulfur free diesel) and electricity at the most efficient cost incapital investment and production per/barrel, per/Megawatt.

Safe Harbor for Forward-Looking Statements: Except for historicalinformation contained herein, statements are forward-looking statementsthat are made pursuant to the safe harbor provisions of the PrivateSecurities Litigation Reform Act of 1995. Forward-looking statementsinvolve known and unknown risks and uncertainties, which may cause thecompany's actual results in the future periods to differ materially fromforecasted projections. These risks and uncertainties include, among otherthings, energy market volatility, product demand, market competition, andrisk inherent to the company's research and development operations.