DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

  67088   TRACT  1                                                     2140
          --------
          NTS 094-J-15 BLK E UNITS 51-53 61-63 71-73 81-83 91-95
          NTS 094-J-15 BLK F UNITS 60 70 80 90 100
          NTS 094-J-15 BLK K UNITS 10
          NTS 094-J-15 BLK L UNITS 1-5 14 15 24 25

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          THE GRANT OF TENURE DOES NOT GUARANTEE THE ISSUANCE OF 
          A PERMIT TO CONDUCT OIL AND GAS ACTIVITY. SUCCESSFUL 
          BIDDERS MUST APPLY FOR ACTIVITY PERMITS FROM THE BC 
          OIL AND GAS COMMISSION (COMMISSION) UNDER THE OIL AND 
          GAS ACTIVITIES ACT AND/OR FROM OTHER AGENCIES WHERE 
          APPLICABLE. THE COMMISSION MAY DENY PERMIT 
          APPLICATIONS OR MAY IMPOSE CONDITIONS ON ACTIVITY 
          PERMITS.
          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE STRONGLY ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE BC OIL AND GAS COMMISSION 
          FOR GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING 
          FIRST NATION(S) FOR REVIEW AND COMMENT (NOTE THAT 
          SUBSEQUENT CONSULTATION WITH FIRST NATIONS, NOT 
          NECESSARILY LIMITED TO THOSE LISTED BELOW, MAY BE 
          REQUIRED PRIOR TO ACTIVITIES BEING AUTHORIZED ON CROWN 
          LAND):
          - FORT NELSON FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - BLUEBERRY RIVER FIRST NATIONS
          - FORT NELSON FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - FORT NELSON FIRST NATION
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - STREAMS, WETLANDS, LAKES
          - WILDLIFE AND WILDLIFE HABITAT
          - CULTURALLY IMPORTANT PLANTS
          - MIGRATORY BIRDS
          - RIPARIAN HABITATS


                                   PAGE     1
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          PARCEL CONTAINS OR IS NEAR RESIDENTIAL DEVELOPMENTS.  
          EXPLORATION AND DEVELOPMENT PLANS MUST CONSIDER 
          POTENTIAL IMPACTS ON THE COMMUNITY, AND DIRECT 
          CONSULTATION WITH THE TOWN OF FORT NELSON AND THE 
          NORTHERN ROCKIES REGIONAL MUNICIPALITY MAY BE REQUIRED 
          PRIOR TO UNDERTAKING ANY EXPLORATION AND DEVELOPMENT 
          ACTIVITIES.  SURFACE ACCESS MAY BE RESTRICTED. CONTACT 
          THE BC OIL AND GAS COMMISSION FOR MORE INFORMATION.
          PARCEL IS LOCATED WITHIN HORN RIVER, MONTNEY OR 
          CORDOVA EMBAYMENT BOUNDARIES IN WHICH SHALE GAS 
          RECOVERY AND TECHNOLOGY IS ANTICIPATED; PARTICIPATION 
          IN A WATER OR ACCESS PLANNING PROCESS WITH OTHER 
          TENURE HOLDERS MAY BE REQUIRED TO COORDINATE 
          ACTIVITIES, EXPLORATION AND DEVELOPMENT.
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - NOTATION OF INTEREST - ENVIRONMENT, CONSERVATION AND 
          RECREATION
          - FISH AND WILDLIFE MANAGEMENT RESERVE
          - MINERAL, COAL AND/OR PLACER RESERVES
          - FOREST ACT TENURE(S)
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED 
          AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE 
          INTRODUCTION OR SPREAD OF INVASIVE PLANTS AND PLANT 
          DISEASES.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :    4  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1912005

---------------------------------------------------------------------------

  67089   TRACT  1                                                     1873
          --------


                                   PAGE     2
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          NTS 094-J-14 BLK H UNITS 52-55 62-65 71-77 81-87 92 93
          NTS 094-J-14 BLK I UNITS 2 3
          NTS 094-J-15 BLK E UNITS 80 90

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          THE GRANT OF TENURE DOES NOT GUARANTEE THE ISSUANCE OF 
          A PERMIT TO CONDUCT OIL AND GAS ACTIVITY. SUCCESSFUL 
          BIDDERS MUST APPLY FOR ACTIVITY PERMITS FROM THE BC 
          OIL AND GAS COMMISSION (COMMISSION) UNDER THE OIL AND 
          GAS ACTIVITIES ACT AND/OR FROM OTHER AGENCIES WHERE 
          APPLICABLE. THE COMMISSION MAY DENY PERMIT 
          APPLICATIONS OR MAY IMPOSE CONDITIONS ON ACTIVITY 
          PERMITS.
          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE STRONGLY ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE BC OIL AND GAS COMMISSION 
          FOR GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING 
          FIRST NATION(S) FOR REVIEW AND COMMENT (NOTE THAT 
          SUBSEQUENT CONSULTATION WITH FIRST NATIONS, NOT 
          NECESSARILY LIMITED TO THOSE LISTED BELOW, MAY BE 
          REQUIRED PRIOR TO ACTIVITIES BEING AUTHORIZED ON CROWN 
          LAND):
          - FORT NELSON FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - FORT NELSON FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - FORT NELSON FIRST NATION
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - UNGULATE BIRTHING AND CALVING AREAS
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          PARCEL CONTAINS OR IS NEAR RESIDENTIAL DEVELOPMENTS.  
          EXPLORATION AND DEVELOPMENT PLANS MUST CONSIDER 
          POTENTIAL IMPACTS ON THE COMMUNITY, AND DIRECT 


                                   PAGE     3
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          CONSULTATION WITH THE TOWN OF FORT NELSON AND THE 
          NORTHERN ROCKIES REGIONAL MUNICIPALITY MAY BE REQUIRED 
          PRIOR TO UNDERTAKING ANY EXPLORATION AND DEVELOPMENT 
          ACTIVITIES.  SURFACE ACCESS MAY BE RESTRICTED. CONTACT 
          THE BC OIL AND GAS COMMISSION FOR MORE INFORMATION.
          PARCEL OVERLAPS WILDLIFE HABITAT AREA OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT, FOR THE PROTECTION OF BOREAL 
          CARIBOU.  THE MINISTRY OF ENVIRONMENT HAS ESTABLISHED 
          INTERIM OPERATING PRACTICES FOR OIL AND GAS ACTIVTIES 
          IN IDENTIFIED BOREAL CARIBOU HABITAT IN BRITISH 
          COLUMBIA.  THE OIL AND GAS COMMISSION WILL CONSIDER 
          THESE OPERATING PRACTICES BEFORE AUTHORIZING 
          ACTIVITIES IN THESE AREAS.
          PARCEL IS LOCATED WITHIN HORN RIVER, MONTNEY OR 
          CORDOVA EMBAYMENT BOUNDARIES IN WHICH SHALE GAS 
          RECOVERY AND TECHNOLOGY IS ANTICIPATED; PARTICIPATION 
          IN A WATER OR ACCESS PLANNING PROCESS WITH OTHER 
          TENURE HOLDERS MAY BE REQUIRED TO COORDINATE 
          ACTIVITIES, EXPLORATION AND DEVELOPMENT.
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BOREAL CARIBOU HABITAT
          - BLUE OR RED LISTED SPECIES
           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          DEVELOPMENT
          - VISUAL QUALITY OBJECTIVES
          - QUARRY, SAND AND GRAVEL RESERVE
          - FISH AND WILDLIFE MANAGEMENT RESERVE
          - NOTATION OF INTEREST - ENVIRONMENT, CONSERVATION AND 
          RECREATION
          - NOTATION OF INTEREST - AGRICULTURE
          - FOREST ACT TENURE(S)
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.








                                   PAGE     4
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          TERM           :    5  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1912006

---------------------------------------------------------------------------














































                                   PAGE     5



                       Parcels Offered and Hectares Summary


                                   No. Offered         Hectares
                                   -----------         --------

            Permits                          0                0
            Drilling Licences                2             4013
            Leases                           0                0

            Grand Total                      2             4013














































