From:

Mark McLaren Mark McLaren & Associates Advanced Propulsion Inc/Advanced Propulsion Australia * Thornlands. Qld 4164 Monday, 27th October 2014

To:

Defence White Paper 2015 R1-3-A135 Russell Offices Dept. of Defence PO Box 7901 Canberra. BC. ACT. 2610

Subject:

Proposed Australian Coastal “UAV” ** Aerial Surveillance System.

Dear Sir/Madam,

I am the Australian agent for a company named “Advanced Propulsion Incorporated” (API) from Phoenix, Arizona, USA. I am also a retired Licensed Aircraft Maintenance Engineer ( Ie: Aircraft Fitter) with a lifelong interest in Aviation

API company is an Aeronautical Design studio of some exceptional skill and experience

API is interested in promoting a range of UAV- type aircraft to the Australian Government, with the view that these should be brought into production in Australia and put into operation, providing Real-time surveillance around the Australian coastline, on a 24/7/365 Basis

UAV's are “Unmanned Aerial Vehicles”, or in other words, “DRONE” -type aircraft that operate automatically without a pilot or aircrew on board whilst in the air. UAV's are completely automatic These can be Satellite -controlled and can be much cheaper to operate than 'Manned' surveillance aircraft

A small fleet of just 25 UAV's could provide 24 Hour-a-day surveillance of the entire Australian coastline, to ensure we maintain control over our own Borders and prevent incursions upon our Sovereign Territory, International Waters etc. This includes aircraft on the ground for servicing, long-term storage etc

This same fleet would have a myriad of uses for Military, Border Control and Civilian purposes, a list is included

A rough quote would indicate that at a cost of Au. $250 Million, a fleet of 25 of these aircraft, plus spare parts and Training would cost approximately 1/10th of the cost of the proposed Boeing Global Hawk / Sentry proposal, (Circa $2.5 Billion) plus 80-85% of the manufacturing work would be carried out in Australia.

API (USA) would agree to a full transfer of Designs , production methods and Technologies , favourable to Australia.

Australian Defence White Paper 2015- UAV Proposal API/APA / Mark McLaren & Associates

Australian Defence White Paper 2015- UAV Proposal API/APA / Mark McLaren & Associates

If we are successful in attracting Government interest then I will incorporate a company named: “Advanced Propulsion Australia Pty Ltd”, which will obviously become an offshoot of API, (USA.) Please note that we have included not only Coastal Patrol-type Surveillance UAV designs, but smaller UAV designs suited to Ship-Board surveillance from Patrol Boats, Frigates etc. These can land and take off vertically on the Helicopter deck on an R.A.N. Ship API/APA would be pleased to attend further discussions regarding this proposal, with a view of discussing:

Costs per aircraft, Costs for a fleet of aircraft, The intended mission of such a fleet Use and Effectiveness of a fleet of UAV Aircraft Cost comparisons against alternatives Beneficial returns to the Commonwealth of Australia Offset & Civilian work associated with these designs Likelihood of Export sales

I most strongly recommend that the Defence White Paper 2015 examine the idea of a National, (Indigenous, ie: Australian owned) Coastal Patrol and Surveillance system , using the UAV aircraft designs included herein, designed by API of Phoenix Arizona USA . This would be a cost effective method of creating a Coastal Surveillance system, well suited to Australia's requirements Please note that I have added a Power Point presentation to my email, covering our fleet of UAV designs Thank you Yours sincerely Mark McLaren Brisbane Notes: 1) * Yet to be incorporated 2) ** UAV- Unmanned Aerial Vehicle (Ie: Drone-type aircraft) 3) All Designs and Intellectual Property belong to API from Phoenix, Arizona, USA, Mark McLaren of Brisbane is the approved Australasian Agent

Advanced Propulsion Australia

Proposed :

Australian Coastal Aerial Surveillance

System

Advanced Propulsion Australia** Advanced Propulsion Inc.Mark McLaren Gerry L. Merrill,

Scott C. Meyers & Ken Presley Thornlands.Qld 4164 Phoenix,Arizona. USA

** Yet to be Incorporated

Overview:

API / APA will propose that Australia purchase a fleet of UAV Aircraft- Unmanned Aerial vehicles, or DRONES

API is a US Based company, APA is the Australian offshoot, located in Brisbane

The basic proposal here is that Australia requires a fleet of UAV 's to patrol the Australian Coastline and provide Real-time Surveillance Data for Coastline, Customs, Defence and Civilian purposes

API / APA will propose to construct and operate this fleet of UAV Aircraft and provide Manufacturing & Career opportunities within Australia, plus provide a flexible management tool for Coastal management to the Australian Federal and State Governments

API / APA proposals are vastly cheaper (1/10th ) the cost of alternative proposals from major, international Aircraft manufacturers

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API/APA Proprietary Information

IN ACCORDANCE WITH MUTUAL NON-DISCLOSURE AGREEMENT, THE INFORMATION CONTAINED IN THIS PRESENTATION IS:

API / APA PROPRIETARY INFORMATION.

Note: Mark McLaren from Brisbane, is the Authorised Australasian agent of API , (Based in Phoenix, Arizona, USA)

Please direct all Australasian regional enquiries to Mr. Mark McLaren, Australian phone number 0434 880 187

API / APA Objectives:

● Promote UAV- Unmanned Aerial Vehicle ie: Drones, Products, Technology & UAV awareness in Australia

● Introduce a range of UAV Aircraft designs originally proposed to various US Government agencies into Australian service

● Create an Australian National Coastal Surveillance network covering:

● Defence requirements● Civilian requirements

● Create technology transfer and employment in Australia

● “Close the Gap” on Australian Coastal surveillance by means of Automated, UAV- type Aircraft surveillance systems

● Provide a Surveillance system for State Government & Civilian needs at a reasonable price

Why do we need an Australian Coastal Patrol & Surveillance system??

It's simple! We have the 6th longest Coastline in the world- 25,760 Km. This is wide open to INCURSION, & It is difficult to prevent an event from occurring-we can only commence action or activity AFTER an event, such as discovering a landing upon our shores.

Existing RAAF Orion aircraft & RAN Coastal patrol boats are VERY costly to operate

The UAV Aircraft promoted here are very reasonably priced and are REMOTELY CONTROLLED- Ie: No Pilot or crew -Control is from a Ground Station by Satellite or a Direct Radio Link-

This means Minimum Cost per unit / per hour & reduced Crew risk

UAV's operate 24/7 & relay Data back in Real Time, allowing command decisions to be made

We believe we can offer 25 Aircraft +Spares, Training and Satellite connections for Au. $250M

This is cheaper (1/10th the cost) than 10 Boeing Sentry's/Hawk's for $2.5 Billion , and just slightly cheaper than 45,000 illegal Boat people at a cost of $7.5 Billion so far

UAV Technology is now fully mature and ready to be placed into permanent operation, patrolling Australia's Coastline

Christmas Island, Dec 15th 2010This is what happens when Governments FAIL to be prepared for a Maritime

disaster. 48 Drowned, 42 Rescued.Do we need a National UAV Coastal Surveillance system?

Figure it out for yourself !!!Why didn't they see it coming? Because the boat was a wooden boat and

radar could not pick it up. You need EYES here, not systems

Let's take a closer look at a major human disaster: Christmas Island, Dec 15th 2012 48 Dead !

This is the result of NOT having a Coastal Surveillance system in place (News Corp. Photos)

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Introducing:

Gerald L. MerrillAeronautical Engineer extraordinaire

Founding President of API, designer of all our models

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Education and ExperienceEducation:Mathematics/Mechanical Engineering curriculum, University of Cincinnati, 1952-1955Technical & Business Training Courses, General Electric Company, AGT, 1952-1955Modern Business Course, Alexander Hamilton Institute, 1960-1961

Prior Experience Summary:1984 to This Date: Advanced Propulsion Inc.President and Chairman of the Board

Vice President and Corporate SecretaryPrincipal Engineer

1981 to 1984: Garrett Pneumatic Systems DivisionLead Systems EngineerMaster Design EngineerSenior Development Specialist

1971 to 1981: AiResearch Manufacturing Co of AZ (AlliedSignal/Honeywell)

Advanced Technology Program ManagerSenior Development Specialist

1963 to 1971: Teledyne CAEPrincipal EngineerSenior Design Engineer

1958 to 1963: Smith-Morris CorporationSupervisor of Manufacturing EngineeringManufacturing EngineerProduct and Tooling Design Engineer

1956 to 1958: Studebaker-Packard/Curtiss-Wright Corps.

Gas Turbine/Missile Senior Designer1955 to 1956: Chrysler Corporation

Engine/Chassis Group Designer1952 to 1955: General Electric Company

Design DraftsmanDetail Draftsman

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Publications

"Development of the Explosive Metal Forming Process," Steel Horizons trade periodical, 1960."Turbofan Propulsion for General Aviation Airplanes," SAE Paper 730324, April 1973."A Study of Small Turbofan Engines Applicable to General Aviation Aircraft," Merrill, Burnett, et al., NASA CR114630, April 1973."A Study of Small Civil Turbofan Engines Applicable to Military Airplanes," Heldenbrand, Merrill, et al., NASA CR137575, April 1975."Summary of System Design Studies of Turbofan Powered Light Aircraft," Merrill and Waters, SAE Paper 750502, April 1975."Modern Turbofan Engines for Light Aircraft," Merrill and Waters, SAE Paper 75-211782, December 1975."A Study of Small Turbofan Engines Applicable to Single Engine Light Airplanes," NASA CR137944, September 1976."SCEPS - An Advanced Thermal Power Plant for Torpedoes," Bush and Merrill, AIAA Paper 81-1602, July 1981.Input to: “Who Says a Jet Can’t Be Cheap”, David A. Nolan, Air and Space, February-March 2008, page 28.Numerous Presentations At Oshkosh General Aviation Forums and Experimental Aircraft Association Forums.Approximately 120 Technical Proposals and Contracted Technical Reports.

DEFINE THE AUSTRALIAN NEEDS:(1) Defence, Borders and Customs

● There is an urgent need for a reasonably- priced Australian National Coastal Surveillance system, which can be utilised in a broad range of Military, Border , Customs and Civilian missions

● We do not possess an existing, 'standing' Coastal Surveillance system (ie: Permanently in place)

● Australian Coastline- @ 25,760 km is the 6th longest Coastline in the world

● We monitor 2/5th of the world's surface. Manned patrols are too expensive

● Our coastline is wide open to exploitation by criminals, drug pushers, illegal migration & fishing

● We need to “Close the Gap” Between Manned and Unmanned surveillance systems to ensure that we control our own borders and International waters

(2) State Government and Civilian needs

● Coastal, Tidal, Estuarine and Riverine management

● Bushfire and Forestry management

● Fishing and other Natural resources Management

● Lost Ships and Marine crew, Lost Bush walkers

● Crashed & Missing Aircraft , lost aircrew

● Crop management

● Animal management- Feral, Native and Endangered species

● Plague and Pestilence management

● Mining and mineral resource location

● Geo. Surveys

● Urban & Demographic studies

API- “UAV”-Type Surveillance Aircraft.

● API can offer a broad range of UAV -Type aircraft designs

● 12 Different designs follow:

● Range from 300 miles to 22,600 miles (480 Km to 36,000Km)

● Altitude from Sea or Ground level to 55,000 feet (0 to 17,500 Metres)

● All are Jet Turbine powered

● All are near silent and near-invisible to Radar, & Infra Red Detection

● All are intended for Surveillance purposes

● Some can retrieve film and data, or send data back to base by direct link

● Some can send data in Real Time by Satellite connection

Define the mission:

Military Surveillance, Civilian Patrols and searches :

● Infra Red (Night) Vision

● Live Satellite Link & Control

● Radar Scanning

● Telephone Monitoring

● 2-Way radio Monitoring

● Television Video streaming

● Low Light Television

● Magnetic & Geo Surveys

● 2-Way radio Booster transmission

UAV's

(1). Conventional UAV designs

(2) VTOL's, Tail Sitters and Fanwings

MAY 24, 2011 API-00124-2 PG 16

LIGHT WEIGHT, LONG ENDURANCE UAV

ENGINE 80 lbf T/F 30 BPRGROSS WT 400 lbEMPTY WT 150 lbPAYLOAD 210/75 lbFUEL 45/180 lbLENGTH 13.3 ftSPAN 16 ftMAX L/D 23MAX SPEED 140 ktECONO CRUISE 125 ktMAX RANGE 600/2400 nm MILES PER GAL 75

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High Endurance UAV-C1-011 Conventional Aerodynamics

● Engine Thrust 500 lb● Wing Area 125 sq ft● Aspect Ratio 25● Span 56 ft● Length 20 ft● TOGW 2500 lb● Max Fuel 1500 lb● Max P/L 600 lb● Max U/L 1800 lb● EEW 700 lb

● SWET 380 sq ft● CdWET 0.0036● Max L/D 43● Field Lg 2000 ft● Cruise 200 kt● Altitude 45-55 K ft● Br. Ra. 10,800 nm● Endurance 54 hr● Mission 48 hr at

600 nm Radius

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LONG ENDURANCE UAV—GENERIC CONVENTIONAL AERODYNAMICS

TOGW 2500 lb Br. Ra. 10,800 nm Endurance 54 hr

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ULTRA-LIGHTHIGH ENDURANCE UAV

ENGINE 60 lbf T/F 50 BPRGROSS WT 180 lbEMPTY WT 60 lbPAYLOAD 20 lbFUEL 100 lbLENGTH 5 ftSPAN 10 ftMAX L/D 25MAX SPEED 120 ktECONO CRUISE 90 ktMAX RANGE 1700 nm MAX ENDURANCE 19 hr

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High Endurance UAV-C2-011 Conventional Aerodynamics

● Engine Thrust 120 lb● Wing Area 27.5 sq ft● Aspect Ratio 20● Span 23.5 ft● Length 10 ft● TOGW 550 lb● Max Fuel 275 lb● Max P/L 100 lb● Max U/L 350 lb● EEW 200 lb

● SWET 100 sq ft● CdWET 0.0038● Max L/D 32● Field Lg. 2000 ft● Cruise 150 kt● Altitude 35-54 K ft● Br. Ra. 4800 nm● Endurance 32 hr● Typ. Mission 30 hr at 150

n.m. Radius

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High Endurance UAV-C1-011BLPP Aerodynamics

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Broad Area Maritime Surveillance (BAMS) UAV

● Engine Thrust 2100 lb● Wing Area 860 sq ft● Aspect Ratio 25● Span 56 ft● Length 20 ft● TOGW 2500 lb● Max Fuel 1500 lb● Max P/L 600 lb● Max U/L 1800 lb● EEW 700 lb

● Swet 560 sq ft● Max L/D 55● Cruise 200 kt● Alt 40-55 K ft● Br. Ra. 14,000 nm● Endurance 70 hr● Typ. Mission 48 hr at 2200

nm Rad,or 3 days o/head

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High Endurance UAV—C1-011BLPP Aerodynamics

TOGW 3600 lb Br. Ra. 14,000 nm Endurance 70 hr

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VTOL FANWINGTakes off Vertically from a Patrol Boat Aft Deck.

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Light Attack Reconnaissance Drone (50 HP Core)

LENGTH 50 inSPAN 24 inMAX SPEED 200 ktECONO CRUISE 75 ktMAX RANGE 100 NmVTOL

M2-111 ENGINE – HOT DAYENGINE 80 lbf T/F 30 BPRGROSS WT 60 lbEMPTY WT 25 lbPAYLOAD 20 lbFUEL 15 lb

02/28/03 28

VTOL FanWing UAVC1-011 Turbofan

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HIGH PERFORMANCE FANWING

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MANNEDFANWING

MAY 24, 2011 API-00124-2 PG 31

Conclusions:(All details and drawings API Intellectual Property)

Australia has a need for a Coastal UAV-Type Surveillance system.

API / APA has MANY different designs of UAV's, both Conventional Fan Wing and Tail Sitters, well suited to Military, Customs, Border

Patrol and Civilian needs.

API's objective is: we wish to commence UAV Aircraft production here in Australia with 100% transfer of:

ALL TECHNOLOGY AND PROPRIETARY DESIGNS

And we are interested in discussions ASAP

Please contact:Mark McLaren

Thornlands. Qld 4164