PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

  67530   TRACT  1                                                      261
          --------
          TWP 083 RGE 18 W6M SEC 21

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          EXC : NATURAL GAS

          DOWN TO BASE OF 33017 MONTNEY (EXCLUDING BASAL LAG)

          33017 MONTNEY (EXCLUDING BASAL LAG) ZONE IDENTIFIED IN 
          THE INTERVAL 1633.9M-1950.8M ON THE BOREHOLE 
          COMPENSATED SONIC LOG OF THE WELL W.A. 16491 
          11-17-83-16 W6M

          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.
          AS IDENTIFIED IN THE LAND USE PLAN THAT HAS BEEN 
          DEVELOPED BY DOIG RIVER FIRST NATION (DRFN), THE 
          PARCEL OVERLAPS THE FOLLOWING ZONE(S):
           - KNOWN CULTURAL HERITAGE AND/OR TRADITIONAL USE 
          VALUES
           - SPECIFIC WILDLIFE FEATURES OR HIGH VALUE HABITAT.
           - HIGH VALUE FOREST TYPES
           - WATER AND RIPARIAN VALUES THAT ARE SENSITIVE TO THE 
          MANAGEMENT OF WATER QUALITY AND QUANTITY
          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 THE ASSESSMENT OF CUMULATIVE EFFECTS BY THE 
          APPLICABLE STATUTORY DECISION MAKER.  SURFACE 
          DISTURBANCE, INCLUDING ACCESS AND WELLSITE 
          CONSTRUCTION, MAY BE RESTRICTED BY THE BC ENERGY 
          REGULATOR OR OTHER AGENCIES WHERE APPLICABLE IN ORDER 
          TO AVOID OR MINIMIZE CUMULATIVE IMPACTS ON FIRST 
          NATION AND ENVIRONMENTAL VALUES. APPLICATIONS FOR 


                                   PAGE     1
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          ACTIVITIES MAY BE DENIED BASED ON IMPACTS TO THESE 
          VALUES.

          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:
          - SENSITIVE RIPARIAN HABITATS
          - WATER QUALITY AND WATERSHED VALUES
          - CULTURALLY SIGNIFICANT SITE(S) AND CULTURAL HERITAGE 
          RESOURCES.
          - WILDLIFE AND WILDLIFE HABITAT
          PARCEL OVERLAPS OR IS PROXIMAL TO THE CITY OF FORT ST. 
          JOHN. ENERGY RESOURCE ACTIVITIES MAY BE RESTRICTED. 
          EXPLORATION AND DEVELOPMENT PLANS MUST CONSIDER 
          COMMUNITY CONCERNS IN ACCORDANCE WITH THE CONSULTATION 
          AND NOTIFICATION REGULATION UNDER THE ENERGY RESOURCE 
          ACTIVITIES ACT. CONTACT THE BC ENERGY REGULATOR FOR 
          MORE INFORMATION.
          THE CITY OF FORT ST JOHN REQUESTS CONSULTATION PRIOR 
          TO UNDERTAKING ANY EXPLORATION AND DEVELOPMENT 
          ACTIVITIES.
          PARCEL IS WITHIN THE VICINITY OF THE SITE C DAM. 
          CONSULTATION WITH BRITISH COLUMBIA HYDRO AND POWER 
          AUTHORITY REQUIRED PRIOR TO SEISMIC OR WELL DRILLING.
          ACCESS AND WELLSITE CONSTRUCTION RESTRICTIONS MAY 
          APPLY, BUT ARE NOT LIMITED TO, THE FOLLOWING TO 
          PROTECT:
             SLOPE STABILITY AND ERODIBLE SOILS; GEOTECHNICAL  
          STUDIES AND MITIGATION METHODS MAY BE REQUIRED.


                                   PAGE     2
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          - PRIVATE LAND
          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
          - BLUE OR RED LISTED SPECIES
           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          DEVELOPMENT
          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.
          PARCEL CONTAINS OR IS NEAR AREAS OF HIGH AGRICULTURAL 
          ACTIVITY AND IMPORTANCE. THE TENURE HOLDER IS 
          ENCOURAGED TO CONSIDER POTENTIAL IMPACTS ON 
          AGRICULTURE AND THE AGRICULTURAL COMMUNITY IN PLANNING 
          FOR DEVELOPMENT, PARTICULARLY DURING SPRING AND FALL.
          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.


                                   PAGE     3
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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


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

          NO FURTHER TRACTS                      REF.NO. 2511001

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

  67531   TRACT  1                                                      260
          --------
          TWP 083 RGE 18 W6M SEC 29

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          EXC : NATURAL GAS

          DOWN TO BASE OF 33017 MONTNEY (EXCLUDING BASAL LAG)

          33017 MONTNEY (EXCLUDING BASAL LAG) ZONE IDENTIFIED IN 
          THE INTERVAL 1633.9M-1950.8M ON THE BOREHOLE 
          COMPENSATED SONIC LOG OF THE WELL W.A. 16491 
          11-17-83-16 W6M

          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.
          AS IDENTIFIED IN THE LAND USE PLAN THAT HAS BEEN 
          DEVELOPED BY DOIG RIVER FIRST NATION (DRFN), THE 
          PARCEL OVERLAPS THE FOLLOWING ZONE(S):
           - KNOWN CULTURAL HERITAGE AND/OR TRADITIONAL USE 
          VALUES
           - SPECIFIC WILDLIFE FEATURES OR HIGH VALUE HABITAT.
           - HIGH VALUE FOREST TYPES
           - WATER AND RIPARIAN VALUES THAT ARE SENSITIVE TO THE 
          MANAGEMENT OF WATER QUALITY AND QUANTITY
          THE PARCEL OVERLAPS WITH THE TRADITIONAL TERRITORY OF 
          TREATY 8 FIRST NATIONS. FOLLOWING THE DECISION OF THE 


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

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

          BRITISH COLUMBIA SUPREME COURT IN YAHEY V BRITISH 
          COLUMBIA, ANY ADDITIONAL SURFACE DISTURBANCE IS 
          SUBJECT TO THE ASSESSMENT OF CUMULATIVE EFFECTS BY THE 
          APPLICABLE STATUTORY DECISION MAKER.  SURFACE 
          DISTURBANCE, INCLUDING ACCESS AND WELLSITE 
          CONSTRUCTION, MAY BE RESTRICTED BY THE BC ENERGY 
          REGULATOR OR OTHER AGENCIES WHERE APPLICABLE IN ORDER 
          TO AVOID OR MINIMIZE CUMULATIVE IMPACTS ON FIRST 
          NATION AND ENVIRONMENTAL VALUES. APPLICATIONS FOR 
          ACTIVITIES MAY BE DENIED BASED ON IMPACTS TO THESE 
          VALUES.

          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:
          - SENSITIVE RIPARIAN HABITATS
          - WATER QUALITY AND WATERSHED VALUES
          - CULTURALLY SIGNIFICANT SITE(S) AND CULTURAL HERITAGE 
          RESOURCES.
          - WILDLIFE AND WILDLIFE HABITAT
          PARCEL OVERLAPS OR IS PROXIMAL TO THE CITY OF FORT ST. 
          JOHN. ENERGY RESOURCE ACTIVITIES MAY BE RESTRICTED. 
          EXPLORATION AND DEVELOPMENT PLANS MUST CONSIDER 
          COMMUNITY CONCERNS IN ACCORDANCE WITH THE CONSULTATION 
          AND NOTIFICATION REGULATION UNDER THE ENERGY RESOURCE 
          ACTIVITIES ACT. CONTACT THE BC ENERGY REGULATOR FOR 
          MORE INFORMATION.
          THE CITY OF FORT ST JOHN REQUESTS CONSULTATION PRIOR 
          TO UNDERTAKING ANY EXPLORATION AND DEVELOPMENT 


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

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

          ACTIVITIES.
          PARCEL IS WITHIN THE VICINITY OF THE SITE C DAM. 
          CONSULTATION WITH BRITISH COLUMBIA HYDRO AND POWER 
          AUTHORITY REQUIRED PRIOR TO SEISMIC OR WELL DRILLING.
          ACCESS AND WELLSITE CONSTRUCTION RESTRICTIONS MAY 
          APPLY, BUT ARE NOT LIMITED TO, THE FOLLOWING TO 
          PROTECT:
             SLOPE STABILITY AND ERODIBLE SOILS; GEOTECHNICAL  
          STUDIES AND MITIGATION METHODS MAY BE REQUIRED.
          - PRIVATE LAND
          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
          - BLUE OR RED LISTED SPECIES
           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          DEVELOPMENT
          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.
          PARCEL CONTAINS OR IS NEAR AREAS OF HIGH AGRICULTURAL 
          ACTIVITY AND IMPORTANCE. THE TENURE HOLDER IS 
          ENCOURAGED TO CONSIDER POTENTIAL IMPACTS ON 
          AGRICULTURE AND THE AGRICULTURAL COMMUNITY IN PLANNING 
          FOR DEVELOPMENT, PARTICULARLY DURING SPRING AND FALL.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          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 


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

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

          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. 2511002

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

  67532   TRACT  1                                                      264
          --------
          TWP 085 RGE 21 W6M SEC 30

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          THE PARCEL IS LOCATED WITHIN THE AREA OF THE HALFWAY 
          RIVER FIRST NATION (HRFN) ADAPTIVE MANAGEMENT PROGRAM 
          AND PLAN (AMPP), WHICH IS INTENDED TO FACILITATE THE 
          IMPLEMENTATION OF CULTURALLY BASED, LEGALLY 
          ENFORCEABLE, LAND-USE DECISION MAKING. THE DRAFT AMPP 
          DESCRIBES MANAGEMENT OBJECTIVES AND TARGETS FOR HRFN S 
          VALUES. A FINAL PLAN THAT WILL BE BASED ON CURRENT 
          CONDITIONS AND CUMULATIVE EFFECTS ANALYSES IS 
          ANTICIPATED TO BE COMPLETED IN 2026, AND MAY RESTRICT 
          DEVELOPMENT WITH THE GOAL OF BALANCING THE ABILITY TO 
          PRACTICE TREATY 8 RIGHTS ALONGSIDE INDUSTRIAL 
          DEVELOPMENT OR ACTIVITIES. ANY ACTVITY PROPOSED WITHIN 
          THE PLAN AREA MAY BE SUBJECT TO ADDITIONAL CONDITIONS 
          TO ENSURE ALIGNMENT WITH THE AMPP OBJECTIVES. PLEASE 
          CONTACT HRFN FOR MORE INFORMATION.
          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 


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

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

          EXERCISE OF THEIR TREATY RIGHTS AND OTHER INTERESTS. 
          PLEASE CONTACT DOIG RIVER FIRST NATION FOR MORE 
          INFORMATION REGARDING THEIR PLAN.
          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 THE ASSESSMENT OF CUMULATIVE EFFECTS BY THE 
          APPLICABLE STATUTORY DECISION MAKER.  SURFACE 
          DISTURBANCE, INCLUDING ACCESS AND WELLSITE 
          CONSTRUCTION, MAY BE RESTRICTED BY THE BC ENERGY 
          REGULATOR OR OTHER AGENCIES WHERE APPLICABLE IN ORDER 
          TO AVOID OR MINIMIZE CUMULATIVE IMPACTS ON FIRST 
          NATION AND ENVIRONMENTAL VALUES. APPLICATIONS FOR 
          ACTIVITIES MAY BE DENIED BASED ON IMPACTS TO THESE 
          VALUES.

          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 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):
          - RANGE ACT TENURE(S)
          - PRIVATE LAND
          - 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 


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

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

          PUBLIC HIGHWAY DEDICATION. FOR MORE INFORMATION, 
          CONTACT MOTT.
          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.
          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           :    5  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $7.50

          NO FURTHER TRACTS                      REF.NO. 2510002

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






















                                   PAGE     9



                       Parcels Offered and Hectares Summary


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

            Permits                          0                0
            Drilling Licences                0                0
            Leases                           3              785

            Grand Total                      3              785














































