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

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

  67499   TRACT  1                                                     8093
          --------
          NTS 093-P-08 BLK G UNITS 12 13 22 23 31 41
          NTS 093-P-08 BLK H UNITS 14-17 24-27 38-40 48-50

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          TRACT  2
          --------
          NTS 093-P-08 BLK H UNITS 91-93
          NTS 093-P-08 BLK I UNITS 1-3

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 51005 DUNVEGAN-FISH SCALES

          51005 DUNVEGAN-FISH SCALES ZONE DEFINED IN THE 
          INTERVAL 3655.3'-4838.7' ON THE BOREHOLD COMPENSATED 
          SONIC LOG OF THE WELL W.A. 4057 D-93-A/93-P-08.

          TRACT  3
          --------
          NTS 093-P-08 BLK H UNITS 34 35 44 45 51-55 61-65 71-73
          NTS 093-P-08 BLK H UNITS 81-83

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 51004 DUNVEGAN-FISH SCALES

          51004 DUNVEGAN-FISH SCALES ZONE DEFINED IN THE 
          INTERVAL 811.4M-1179.1M ON THE ARRAY INDUCTION-RXO LOG 
          OF THE WELL W.A. 10793 D-64-I/93-P-08.

          TRACT  4
          --------
          NTS 093-P-08 BLK G UNITS 14 15 24 25

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 48015 PADDY-CADOTTE-HARMON

          48015 PADDY-CADOTTE-HARMON ZONE DEFINED IN THE 
          INTERVAL 2064.2M-2181.6M ON THE BHC SONIC LOG OF THE 
          WELL W.A. 5468 D-84-I/93-P-02.

          TRACT  5
          --------
          NTS 093-P-08 BLK G UNITS 11 21
          NTS 093-P-08 BLK H UNITS 18-20 28-33 41-43


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

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


          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 44015 BLUESKY-GETHING

          44015 BLUESKY-GETHING ZONE DEFINED IN THE INTERVAL 
          2521.9M-2695.8M ON THE BHC SONIC LOG OF THE WELL W.A. 
          5468 D-84-I/93-P-02

  67499   TRACT  6
          --------
          NTS 093-P-08 BLK A UNITS 31-35 41-45 51-53 61-63 71-73
          NTS 093-P-08 BLK A UNITS 81-83 91-95
          NTS 093-P-08 BLK H UNITS 1-5 11-13 21-23 36 37 46 47

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 42015 CADOMIN-DUNLEVY-NIKANASSIN

          42015 CADOMIN-DUNLEVY-NIKANASSIN ZONE DEFINED IN THE 
          INTERVAL 2695.8M-3084.7M ON THE BHC SONIC LOG OF THE 
          WELL W.A. 5468 D-84-I/93-P-02

          TRACT  7
          --------
          NTS 093-P-08 BLK A UNITS 54 55 64 65

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 34004 ARTEX-HALFWAY-DOIG

          34004 ARTEX-HALFWAY-DOIG ZONE DEFINED IN THE INTERVAL 
          1864.8M-2028.1M ON THE BOREHOLE COMPENSATED SONIC LOG 
          OF THE WELL W.A. 6717 10-18-79-14 W6M

          THE PARCEL OVERLAPS WITH THE TRADITIONAL TERRITORY OF 
          TREATY 8 FIRST NATIONS. FOLLOWING THE DECISION OF THE 
          BRITISH COLUMBIA SUPREME COURT IN YAHEY V BRITISH 
          COLUMBIA, ANY ADDITIONAL SURFACE DISTURBANCE IS 
          SUBJECT TO A CUMULATIVE EFFECTS ANALYSIS.  SURFACE 
          DISTURBANCE, INCLUDING ACCESS AND WELLSITE 
          CONSTRUCTION, MAY BE UNNECESSARY OR RESTRICTED IN 
          ORDER TO AVOID OR MINIMIZE CUMULATIVE IMPACTS ON FIRST 
          NATION AND ENVIRONMENTAL VALUES. APPLICATIONS FOR OIL 
          AND GAS ACTIVITIES MAY BE DENIED BASED ON IMPACTS TO 
          THESE VALUES.
          SAULTEAU FIRST NATION HAS ADVISED THE PARCEL IS WITHIN 
          AREAS USED FOR PRACTICING TREATY RIGHTS. SAULTEAU 
          FIRST NATION REQUESTS EARLY ENGAGEMENT TO PROVIDE THE 
          PROPONENT WITH THE OPPORTUNITY TO ADDRESS SAULTEAU 
          FIRST NATION CONCERNS PRIOR TO SUBMITTING AN 


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

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

          APPLICATION FOR ON-THE-GROUND ACTIVITIES. TRADITIONAL 
          USE ASSESSMENTS, BASE LINE STUDIES ON WATER QUALITY, 
          WILDLIFE ASSESSMENT, ARCHAEOLOGICAL ASSESSMENTS, AND 
          MITIGATION PLANS MAY BE REQUESTED.
          THE BC ENERGY REGULATOR (BCER) REQUIRES PROPONENTS TO 
          CONDUCT PRE-ENGAGEMENT WITH AFFECTED FIRST NATIONS 
          WHEN PLANNING ENERGY RESOURCE ACTIVITIES. PROPONENTS 
          MUST SUBMIT A PRE-ENGAGEMENT RECORD WITH ANY 
          APPLICATION TO THE BCER FOR ENERGY RESOURCE ACTIVITIES 
          WITHIN THIS TENURE. FOR MORE INFORMATION, REFER TO THE 
          BCER PRE-ENGAGEMENT GUIDANCE DOCUMENT.
          THE PARCEL OVERLAPS TREATY 8 TERRITORY. THE BC ENERGY 
          REGULATOR (BCER) REQUIRES OPERATORS TO EMPLOY TREATY 8 
          PLANNING AND MITIGATION MEASURES (MEASURES) FOR ALL 
          APPLICATIONS WITHIN THE TREATY 8 AREA. THE MEASURES 
          ARE A FIRST STEP IN THE AIM TO PROTECT FIRST NATION 
          AND ENVIRONMENTAL VALUES, INCLUDING BUT NOT LIMITED TO 
          WATERBODIES, WETLANDS, WATER, RIPARIAN MANAGEMENT 
          AREAS, WILDLIFE AND WILDLIFE HABITAT, VEGETATION, AND 
          AIR QUALITY. THE REGULATOR ENCOURAGES APPLICANTS TO 
          USE THE PRE-ENGAGEMENT PROCESS WITH FIRST NATIONS TO 
          ENSURE THEIR PROJECTS ALIGN WITH THE MEASURES AND 
          ADDRESS ANY OTHER CONCERNS BROUGHT FORWARD BEFORE 
          SUBMITTING APPLICATIONS. FOR MORE INFORMATION, REFER 
          TO THE BCER TREATY 8 PLANNING AND MITIGATION MEASURES 
          DOCUMENT.
          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:
          - FIRST NATION TRAPPING, HUNTING AND FISHING VALUES
          - MOOSE
          - DEER
          - ELK
          - GROUSE (WILD CHICKEN)
          - PORCUPINE
          - RABBIT
          - WATER QUALITY AND WATERSHED VALUES
          - SURFACE WATER
          - STREAMS, WETLANDS, LAKES
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          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):
          - FISH AND WILDLIFE MANAGEMENT RESERVE
          - RANGE ACT TENURE(S)
          - WATERSHED RESERVE
          - QUARRY, SAND AND GRAVEL RESERVE
          - PRIVATE LAND


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

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

          - OLD GROWTH MANAGEMENT AREA
          - MINERAL, COAL AND/OR PLACER RESERVES
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE (ALR); RESTORATION OF SURFACE SOIL ON 
          DISTURBED AREAS REQUIRED. PRECAUTIONS REQUIRED TO 
          PREVENT THE INTRODUCTION OR SPREAD OF INVASIVE PLANTS 
          AND PLANT DISEASES. USE OF ALR LANDS FOR INDUSTRY 
          OTHER THAN AGRICULTURE MAY REQUIRE REVIEW AND APPROVAL 
          BY THE AGRICULTURAL LAND COMMISSION.
          THE PARCEL IS LOCATED WITHIN OR PARTIALLY WITHIN A 
          LIVESTOCK DISTRICT, WHERE LIVESTOCK ARE PERMITTED TO 
          BE AT LARGE. THE PROPONENT IS RESPONSIBLE TO KEEP 
          LIVESTOCK AWAY THROUGH APPROPRIATE FENCING. FOR MORE 
          INFORMATION, CONTACT THE MINISTRY OF AGRICULTURE AND 
          FOOD.
          RECORDED AND POTENTIAL ARCHAEOLOGICAL SITES EXIST; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.
          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.
          HOLDING TENURE DOES NOT GUARANTEE THE ISSUANCE OF A 
          PERMIT TO CONDUCT OIL AND GAS ACTIVITY. TENURE HOLDERS 
          MUST APPLY FOR ACTIVITY PERMITS FROM THE BC ENERGY 
          REGULATOR (REGULATOR) UNDER THE ENERGY RESOURCE 
          ACTIVITIES ACT AND/OR FROM OTHER AGENCIES WHERE 
          APPLICABLE. THE REGULATOR MAY DENY PERMIT APPLICATIONS 
          OR MAY IMPOSE CONDITIONS ON ACTIVITY PERMITS.

          TERM           :    3  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 2504004

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















                                   PAGE     4
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

  67500   TRACT  1                                                     2214
          --------
          NTS 093-A-05 BLK C UNITS 36-39 46-49 58-60 68-70 80 90
          NTS 093-A-05 BLK D UNITS 51-53 61-63 71-73 81-83

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          THE BC ENERGY REGULATOR (BCER) REQUIRES PROPONENTS TO 
          CONDUCT PRE-ENGAGEMENT WITH AFFECTED FIRST NATIONS 
          WHEN PLANNING ENERGY RESOURCE ACTIVITIES. PROPONENTS 
          MUST SUBMIT A PRE-ENGAGEMENT RECORD WITH ANY 
          APPLICATION TO THE BCER FOR ENERGY RESOURCE ACTIVITIES 
          WITHIN THIS TENURE. FOR MORE INFORMATION, REFER TO THE 
          BCER PRE-ENGAGEMENT GUIDANCE DOCUMENT.
          PARCEL CONTAINS OR IS NEAR RESIDENTIAL DEVELOPMENTS. 
          THE TENURE HOLDER IS ENCOURAGED TO CONSIDER POTENTIAL 
          IMPACTS ON THE COMMUNITY IN PLANNING FOR DEVELOPMENT. 
          SURFACE ACCESS MAY BE RESTRICTED.
          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):
          - UNGULATE WINTER RANGE
          - CARIBOU
           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          DEVELOPMENT
          - FISH AND WILDLIFE MANAGEMENT RESERVE
          - RANGE ACT TENURE(S)
          - LICENCE OF OCCUPATION - COMMUNICATION SITES
          - UREP RESERVE (USE, RECREATION AND ENJOYMENT OF THE 
          PUBLIC)
          - PRIVATE LAND
          - OLD GROWTH MANAGEMENT AREA
          - LICENCE OF OCCUPATION - POWERLINE
          - QUARRY, SAND AND GRAVEL RESERVE
          - MINERAL, COAL AND/OR PLACER TENURE
          - GRAZING LEASE
          THE MINISTRY OF TRANSPORTATION AND TRANSIT (MOTT) HAS 
          ADVISED THAT PERMITTING AND APPROVAL FROM MOTT IS 
          REQUIRED AS OUTLINED ON THEIR WEBSITE, WHICH INCLUDES 
          BUT IS NOT LIMITED TO ANY PROPOSED USE WITHIN MOTT 
          PUBLIC HIGHWAY DEDICATION. FOR MORE INFORMATION, 
          CONTACT MOTT.
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE (ALR); RESTORATION OF SURFACE SOIL ON 
          DISTURBED AREAS REQUIRED. PRECAUTIONS REQUIRED TO 
          PREVENT THE INTRODUCTION OR SPREAD OF INVASIVE PLANTS 


                                   PAGE     5
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          AND PLANT DISEASES. USE OF ALR LANDS FOR INDUSTRY 
          OTHER THAN AGRICULTURE MAY REQUIRE REVIEW AND APPROVAL 
          BY THE AGRICULTURAL LAND COMMISSION.
          THE PARCEL IS LOCATED WITHIN OR PARTIALLY WITHIN A 
          LIVESTOCK DISTRICT, WHERE LIVESTOCK ARE PERMITTED TO 
          BE AT LARGE. THE PROPONENT IS RESPONSIBLE TO KEEP 
          LIVESTOCK AWAY THROUGH APPROPRIATE FENCING. FOR MORE 
          INFORMATION, CONTACT THE MINISTRY OF AGRICULTURE AND 
          FOOD.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.
          MAY BE REQUIRED TO COORDINATE ACCESS WITH MINERAL 
          TENURE HOLDER.
          HOLDING TENURE DOES NOT GUARANTEE THE ISSUANCE OF A 
          PERMIT TO CONDUCT OIL AND GAS ACTIVITY. TENURE HOLDERS 
          MUST APPLY FOR ACTIVITY PERMITS FROM THE BC ENERGY 
          REGULATOR (REGULATOR) UNDER THE ENERGY RESOURCE 
          ACTIVITIES ACT AND/OR FROM OTHER AGENCIES WHERE 
          APPLICABLE. THE REGULATOR MAY DENY PERMIT APPLICATIONS 
          OR MAY IMPOSE CONDITIONS ON ACTIVITY PERMITS.

          TERM           :   10  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $7.50

          NO FURTHER TRACTS                      REF.NO. 2504001

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

  67501   TRACT  1                                                      528
          --------
          TWP 080 RGE 19 W6M SEC 34
          TWP 081 RGE 19 W6M SEC 3

          INC : PETROLEUM AND NATURAL GAS

          DOWN TO BASE OF 36003 CHARLIE LAKE (EXCL. BELOW 'A' 
          MARKER)

          36003 CHARLIE LAKE (EXCLUDING BELOW 'A' MARKER) ZONE 
          DEFINED IN THE INTERVAL 3879.6'-4929.8' ON THE 
          SIMULTANEOUS GAMMA RAY NEUTRON LOG OF THE WELL W.A. 
          376 11-23-81-22 W6M

          THE PARCEL OVERLAPS WITH THE TRADITIONAL TERRITORY OF 
          TREATY 8 FIRST NATIONS. FOLLOWING THE DECISION OF THE 
          BRITISH COLUMBIA SUPREME COURT IN YAHEY V BRITISH 
          COLUMBIA, ANY ADDITIONAL SURFACE DISTURBANCE IS 
          SUBJECT TO A CUMULATIVE EFFECTS ANALYSIS.  SURFACE 
          DISTURBANCE, INCLUDING ACCESS AND WELLSITE 
          CONSTRUCTION, MAY BE UNNECESSARY OR RESTRICTED IN 


                                   PAGE     6
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          ORDER TO AVOID OR MINIMIZE CUMULATIVE IMPACTS ON FIRST 
          NATION AND ENVIRONMENTAL VALUES. APPLICATIONS FOR OIL 
          AND GAS ACTIVITIES MAY BE DENIED BASED ON IMPACTS TO 
          THESE VALUES.
          SAULTEAU FIRST NATION HAS ADVISED THE PARCEL IS WITHIN 
          AREAS USED FOR PRACTICING TREATY RIGHTS. SAULTEAU 
          FIRST NATION REQUESTS EARLY ENGAGEMENT TO PROVIDE THE 
          PROPONENT WITH THE OPPORTUNITY TO ADDRESS SAULTEAU 
          FIRST NATION CONCERNS PRIOR TO SUBMITTING AN 
          APPLICATION FOR ON-THE-GROUND ACTIVITIES. TRADITIONAL 
          USE ASSESSMENTS, BASE LINE STUDIES ON WATER QUALITY, 
          WILDLIFE ASSESSMENT, ARCHAEOLOGICAL ASSESSMENTS, AND 
          MITIGATION PLANS MAY BE REQUESTED.
          THE PARCEL OVERLAPS A LAND USE PLAN THAT HAS BEEN 
          DEVELOPED BY DOIG RIVER FIRST NATION (DRFN). FUTURE 
          ACTIVITIES WITHIN THE PLAN AREA MAY BE SUBJECT TO 
          ADDITIONAL CONDITIONS TO PROTECT AND RESTORE FIRST 
          NATION CULTURAL AND ENVIRONMENTAL VALUES, MANAGE 
          CUMULATIVE EFFECTS AND PROTECT TREATY RIGHTS. THE 
          PROVINCE HAS NOT ENDORSED THE LAND USE PLAN AT THIS 
          TIME BUT IS CURRENTLY WORKING ON DEVELOPING A JOINT 
          LAND USE PLAN WITH DRFN. UNTIL A JOINT LAND USE PLAN 
          IS IN PLACE, THE PROVINCE CONSIDERS DRFN�S LAND USE 
          PLAN AS A POTENTIAL SOURCE OF INFORMATION ABOUT DRFN�S 
          EXERCISE OF THEIR TREATY RIGHTS AND OTHER INTERESTS. 
          PLEASE CONTACT DOIG RIVER FIRST NATION FOR MORE 
          INFORMATION REGARDING THEIR PLAN.
          THE BC ENERGY REGULATOR (BCER) REQUIRES PROPONENTS TO 
          CONDUCT PRE-ENGAGEMENT WITH AFFECTED FIRST NATIONS 
          WHEN PLANNING ENERGY RESOURCE ACTIVITIES. PROPONENTS 
          MUST SUBMIT A PRE-ENGAGEMENT RECORD WITH ANY 
          APPLICATION TO THE BCER FOR ENERGY RESOURCE ACTIVITIES 
          WITHIN THIS TENURE. FOR MORE INFORMATION, REFER TO THE 
          BCER PRE-ENGAGEMENT GUIDANCE DOCUMENT.
          THE PARCEL OVERLAPS TREATY 8 TERRITORY. THE BC ENERGY 
          REGULATOR (BCER) REQUIRES OPERATORS TO EMPLOY TREATY 8 
          PLANNING AND MITIGATION MEASURES (MEASURES) FOR ALL 
          APPLICATIONS WITHIN THE TREATY 8 AREA. THE MEASURES 
          ARE A FIRST STEP IN THE AIM TO PROTECT FIRST NATION 
          AND ENVIRONMENTAL VALUES, INCLUDING BUT NOT LIMITED TO 
          WATERBODIES, WETLANDS, WATER, RIPARIAN MANAGEMENT 
          AREAS, WILDLIFE AND WILDLIFE HABITAT, VEGETATION, AND 
          AIR QUALITY. THE REGULATOR ENCOURAGES APPLICANTS TO 
          USE THE PRE-ENGAGEMENT PROCESS WITH FIRST NATIONS TO 
          ENSURE THEIR PROJECTS ALIGN WITH THE MEASURES AND 
          ADDRESS ANY OTHER CONCERNS BROUGHT FORWARD BEFORE 
          SUBMITTING APPLICATIONS. FOR MORE INFORMATION, REFER 
          TO THE BCER TREATY 8 PLANNING AND MITIGATION MEASURES 
          DOCUMENT.
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 


                                   PAGE     7
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - FIRST NATION TRAPPING, HUNTING AND FISHING VALUES
          - UNGULATE HABITAT
          - MOOSE
          - ELK
          - BEAVER
          - WATER QUALITY AND WATERSHED VALUES
          - SURFACE WATER
          - STREAMS, WETLANDS, LAKES
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - CUMULATIVE EFFECTS
          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):
           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          DEVELOPMENT
          - RANGE ACT TENURE(S)
          - GRAZING RESERVE/DESIGNATED USE
          - MINERAL, COAL AND/OR PLACER RESERVES
          THE MINISTRY OF TRANSPORTATION AND TRANSIT (MOTT) HAS 
          ADVISED THAT PERMITTING AND APPROVAL FROM MOTT IS 
          REQUIRED AS OUTLINED ON THEIR WEBSITE, WHICH INCLUDES 
          BUT IS NOT LIMITED TO ANY PROPOSED USE WITHIN MOTT 
          PUBLIC HIGHWAY DEDICATION. FOR MORE INFORMATION, 
          CONTACT MOTT.
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE (ALR); RESTORATION OF SURFACE SOIL ON 
          DISTURBED AREAS REQUIRED. PRECAUTIONS REQUIRED TO 
          PREVENT THE INTRODUCTION OR SPREAD OF INVASIVE PLANTS 
          AND PLANT DISEASES. USE OF ALR LANDS FOR INDUSTRY 
          OTHER THAN AGRICULTURE MAY REQUIRE REVIEW AND APPROVAL 
          BY THE AGRICULTURAL LAND COMMISSION.
          THE PARCEL IS LOCATED WITHIN OR PARTIALLY WITHIN A 
          LIVESTOCK DISTRICT, WHERE LIVESTOCK ARE PERMITTED TO 
          BE AT LARGE. THE PROPONENT IS RESPONSIBLE TO KEEP 
          LIVESTOCK AWAY THROUGH APPROPRIATE FENCING. FOR MORE 
          INFORMATION, CONTACT THE MINISTRY OF AGRICULTURE AND 
          FOOD.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.
          TENURE HOLDER MAY BE REQUIRED TO COORDINATE ACCESS AND 
          EXPLORATION OR DEVELOPMENT PLANS WITH OTHER TENURE 
          HOLDERS AND RECREATIONAL USERS AND, WHERE AND WHEN 
          APPROPRIATE, UTILIZE EXISTING ACCESS.
          PARCEL IS LOCATED WITHIN HORN RIVER, MONTNEY OR 
          CORDOVA EMBAYMENT BOUNDARIES IN WHICH SHALE GAS 
          RECOVERY AND TECHNOLOGY IS ANTICIPATED; PARTICIPATION 


                                   PAGE     8
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          IN A WATER OR ACCESS PLANNING PROCESS WITH OTHER 
          TENURE HOLDERS MAY BE REQUIRED TO COORDINATE 
          ACTIVITIES, EXPLORATION AND DEVELOPMENT.
          HOLDING TENURE DOES NOT GUARANTEE THE ISSUANCE OF A 
          PERMIT TO CONDUCT OIL AND GAS ACTIVITY. TENURE HOLDERS 
          MUST APPLY FOR ACTIVITY PERMITS FROM THE BC ENERGY 
          REGULATOR (REGULATOR) UNDER THE ENERGY RESOURCE 
          ACTIVITIES ACT AND/OR FROM OTHER AGENCIES WHERE 
          APPLICABLE. THE REGULATOR MAY DENY PERMIT APPLICATIONS 
          OR MAY IMPOSE CONDITIONS ON ACTIVITY PERMITS.

          TERM           :    5  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $7.50

          NO FURTHER TRACTS                      REF.NO. 2503001

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



































                                   PAGE     9



                       Parcels Offered and Hectares Summary


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

            Permits                          0                0
            Drilling Licences                1             8093
            Leases                           2             2742

            Grand Total                      3            10835














































