Volume 3, Issue 3 August 11, 2010 Princeton Research, Inc.

Leo Motors
Stock Symbol: LEOM

Corporate Website: www.LeoMotors.com

Visit The LEOM Yahoo Finance Page For Press Releases,
Stock Quotes And Trading Charts Click Here

Leo Motors Zinc Air Fuel Cell May Soon Make Internal Combustion Engines Defunct

Leo Motors, Inc. designs, manufactures and markets electric vehicles (EV), power trains and components using their own
proprietary technology. The Hanan, Korea based company is incorporated in Delaware. Leo Motors was formed by seasoned
executives that have built, led and managed multi-national and automobile companies. The Company has a solid reputation
for creating leading edge EV technology. Their forward looking product line is marketed worldwide. LEOM stock is a
great buy and we have recommended it recently in our weekly market letter.

Electric vehicles (EV’s) have been around for a long time. However wide spread commercialization has faced numerous
challenges such as; limited range, power control and lack of economic viability. Leo Motors is changing this by developing
innovations that make their EV technology produce unlike any company has done before.

For example by enhancing the way zinc is typically used in fuel cells Leo Motors has developed a Zinc Air Fuel Cell (ZAFC)
that extracts more electricity and produces up to 20% more electricity. Their ZAFC has better energy efficiency, longer
range and is more environmentally friendly than competing fuel cells or range extenders.

“Many professionals have tried to develop a system to use ZAFCG from inside the car, but
nobody else that we know of has succeeded.” -- Dr. Robert Kang, CEO of Leo Motors

Leo Motors has also developed the ZAFC generation system to be operated from inside of a zinc-hybridized electric vehicle
(EV). Leo has patented technologies to feed zinc balls into the system automatically, to collect sludge in the filter, and to stop
the generation of electricity as soon as the battery is fully charged, or as soon as the driver does not want to charge the battery
any further from the ZAFCG.

Revolutionary New e-bikes Have The Potential To Rewrite Transportation Sector History

Leo Motors will soon debut the ELEVEN Motorcycle, which has the power equivalent of a 1400cc internal combustion
engine and it is expected to run over 2000 miles on one liter of zinc balls.

Since becoming a revenue generating company in April 2010 with the $3.7 Million USD purchase order for 1170 EV Scooters
(See News) Leo Motors has made a number of significant corporate advancement. They opened their own manufacturing
facility in Hanam City, Korea where they can produce up to 1000 units of HILLESS 1/3/5 Scooters monthly. By eliminating the
manufacturing middleman Leo Motors can protect intellectual property, control quality, reduce costs and increase profits.

One Of a Kind Power Train - Leo is now marketing a unique 120kW EV Power Train consisting of a proprietary motor,
controller and battery pack. Equivalent to a 5,000cc Internal Combustion Engine (ICE) it can be effectively used in mid-sized
passenger cars, buses and trucks. Sales strategies include; providing conversion services to clients needing EV fleet
operations and selling to other automotive manufacturers. Almost all major automobile manufacturers have claimed they
are going to develop EVs, but only a few have successfully tested an electric power train.

INVESTORS SUMMARY

Stock Symbol: LEOM

Shares Outstanding: 50,783,115
Stock Price: $1.18
Average Volume: 9,400
Market Cap: $46.22 million
Industry: Auto manufacturers
Sector: Consumer Goods
Leo Motors Exhibit Booth At EV 2010 EXPO Grand Opening Leo Motors Consumer Store
 Princeton Research, Inc. Leo Motors
August 11, 2010 Stock Symbol: LEOM
Volume 3, Issue 3 - Page 2 Corporate Website: www.LeoMotors.com

Electric Vehicle Range Extender Advancement: Leo Motors New Zinc Air Fuel
Cell Generator (ZAFCG) Produces Up To 20% More Electricity From Zinc
What is a Zinc Air Fuel Cell (ZAFC) - Metallic zinc is used as an alternative fuel. Just like a Address: 291-1, Hasangok-dong
human needs air to breathe, so does the ZAFC. Power is created by zinc oxidizing from the Hanam City, Gyeonggi-do,
oxygen in the air. Leo’s patented technology feeds zinc balls automatically into the Korea (465-250)
generation system, collecting “sludge” in a filter. The process stops electricity generation as
Phone: +82 31 796 8870
soon as the battery is completely charged or when the driver decides not to charge the
battery further. Fax : +82 31 796 8874.

“In Korea, we believe the e-mail: msgm@leomotors.com

ZAFC Benefits Over Conventional EV batteries:
energy cost efficiency of zinc Media and Investor Relations
used in ZAFCG can compete
* Higher Power Density and Longer range capabilities
against crude oil, in EVs and in Princeton Research, Inc.
* Uses Less Energy And Costs Less Than Gas 3887 Pacific St,
many other circumstances. For
* A Compact Car Can Run About 78 miles on 1 kg Las Vegas, Nevada 89121
example, a thermoelectric
of Zinc Balls
power plant can replace oil Phone: (702) 650-3000
* Zinc Is More Plentiful Than Lithium
with zinc without cost burden, e-mail: mike@princetonresearch.com
* Safer, Cleaner and Zero Emissions
and in doing so can make itself
* Higher Availability Than Conventional Engine President/CEO: Mike King
into a zero emission Technical Writer: Gina La Cavera
Dynamo
thermoelectric power plant.”
* Comes In Various Sizes
(hearing aids to heavy duty vehicles)
-- Dr. Robert Kang
* Longer Shelf Life
CEO of Leo Motors

What Are The Challenges Of

Conventional EV batteries:
How Is Leo Motors Ahead Of The Competition:
* Lower Power Density
* Limited Range Leo Motors Manufacturing Plant
* Patented Technology
* Size Too Big and Bulky
* Now Has 20% More Energy Than Previously Mike King is the President and
* Longer Re-Charge Time
Achieved Chief economist of Princeton
* Higher Costs
* Lower Production Costs Research, Inc. of Nevada. He has
* Unreliability
* Leo Has Their own Manufacturing Facility To over 45 years of cumulative
* Pollution – (lead acid batteries)
Protect Intellectual Property, Control Quality and experience beginning as a broker
* Humidity/Temperature and trader to consulting
Reduce Costs
Management corporations on financial matters.
* Economic Viability Mike later evolved into investment
* Underdeveloped Technology banking and corporate finance for
private and public companies. His
propensity over the years has been
Advanced Patented ZAFC Technology - Leo developed a ZAFC generation system that specializing in economic analysis
of public companies, equities,
can be operated from the inside of a zinc-hybridized EV. Since many EV’s cannot drive long
derivatives and physicals or cash
distances, the light weight zinc balls in the ZAFC allow the EV to be lighter, faster and more market trends throughout the
energy efficient. The amount of zinc balls needed is scaled by the size of the EV. 1kg of zinc world. Mike’s experience,
Balls equals 12.5 kW of energy in Leo’s ZAFC generator. Their 12.5 kW can run about 78 reputation and experience is
miles. There are 7.2 kg of zinc balls in one liter. Therefore a 3 liter zinc tank should run over behind all of us here at Princeton
1600 miles. Plus, There is a tremendous savings comparing the cost to gasoline. It would Research. It is our policy and our
cost about $70 to run 1600 miles with the ZAFC. In addition the “Sludge” (zinc oxide) promise to you to do our best to
collected from the ZAFC generator is valuable because it can be recycled and marketed to provide services of excellence and
companies who make paint, tires, ointments and sunscreens. dedication so that your business
will succeed and prosper.
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Prepared by Princeton Research Inc. (http://www.princetonresearch.com) Rule 17B: requires disclosure of monies paid for investor relations.
Princeton Research has entered into a contract to be paid 150,000 restricted shares for investor relations which includes this report. This newsletter may
contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, including, but not limited to, statements as to future operating results and plans that involve risks and uncertainties.
We use words such as “expects”, “anticipates”, “believes”, “estimates” the negative of these terms and similar expressions to identify forward looking
statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by those
projected in the forward looking statements for any reason.