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

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

  67550   TRACT  1                                                      264
          --------
          TWP 086 RGE 14 W6M SEC 7

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          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.
          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 


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

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

          MANAGEMENT OF WATER QUALITY AND QUANTITY
          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):
          - 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 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.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.
          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. 2609002

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

  67551   TRACT  1                                                      132
          --------
          TWP 086 RGE 15 W6M SEC 1E

          INC : PETROLEUM AND NATURAL GAS

          IN 36002 CHARLIE LAKE (EXCL. BELOW 'A' MARKER)

          36002 CHARLIE LAKE (EXCLUDING BELOW 'A' MARKER) ZONE 
          DEFINED IN THE INTERVAL 5001.2'-5970.7' ON THE GAMMA 
          RAY NEUTRON LOG OF THE WELL W.A. 238 C-53-D/094-B-09

          THE PARCEL OVERLAPS WITH THE TRADITIONAL TERRITORY OF 


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

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

          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.
          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
          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):
          - MINERAL, COAL AND/OR PLACER RESERVES
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE (ALR); RESTORATION OF SURFACE SOIL ON 


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

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

          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 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.
          RECORDED AND POTENTIAL ARCHAEOLOGICAL SITES EXIST; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.
          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. 2609003

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

  67552   TRACT  1                                                      264
          --------
          TWP 086 RGE 15 W6M SEC 11

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          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 


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

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

          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.
          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
          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 - LAND USE PLAN INTERIM AGREEMENT
          - AGRICULTURE RESERVE
          - GRAZING RESERVE/DESIGNATED USE
          - 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 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, 


                                   PAGE     5
DRILLING LICENCE
----------------

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

          CONTACT MOTT.
          RECORDED AND POTENTIAL ARCHAEOLOGICAL SITES EXIST; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.
          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. 2609004

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

  67553   TRACT  1                                                      264
          --------
          TWP 086 RGE 15 W6M SEC 12

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          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 


                                   PAGE     6
DRILLING LICENCE
----------------

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

          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.
          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
          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):
          - 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 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.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.
          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     7
DRILLING LICENCE
----------------

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

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

          NO FURTHER TRACTS                      REF.NO. 2609005

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














































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

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

  67554   TRACT  1                                                      259
          --------
          TWP 083 RGE 15 W6M SEC 1

          INC : PETROLEUM AND NATURAL GAS

          DOWN TO BASE OF 34010 ARTEX-HALFWAY-DOIG

          34010 ARTEX-HALFWAY-DOIG (BASE 'A' MARKER TO BASE DOIG 
          PHOSPHATE) ZONE IDENTIFIED IN THE INTERVAL 
          1468.0M-1633.9M ON THE BOREHOLE COMPENSATED SONIC LOG 
          OF THE WELL W.A. 16491 11-17-83-16 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 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.
          AS IDENTIFIED IN THE LAND USE PLAN THAT HAS BEEN 
          DEVELOPED BY DOIG RIVER FIRST NATION (DRFN), THE 
          PARCEL OVERLAPS THE FOLLOWING ZONE(S):


                                   PAGE     9
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

           - 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
          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
           - WATER AND RIPARIAN VALUES THAT ARE SENSITIVE TO THE 
          MANAGEMENT OF WATER QUALITY AND QUANTITY
          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):
          - 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 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.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.
          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. 2609001

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

  67555   TRACT  1                                                      258


                                   PAGE    10
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          --------
          TWP 086 RGE 19 W6M SEC 9

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 31012 BASAL MONTNEY LAG-BELLOY-GOLATA

          31012 BASAL MONTNEY LAG-BELLOY-GOLATA ZONE DEFINED IN 
          THE INTERVAL 1939.2M-1970.2M ON THE COMPENSATED 
          NEUTRON-LITHODENSITY LOG OF THE WELL W.A. 6571 
          6-28-86-21 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 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.
          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 


                                   PAGE    11
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          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
          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
           - WATER AND RIPARIAN VALUES THAT ARE SENSITIVE TO THE 
          MANAGEMENT OF WATER QUALITY AND QUANTITY
          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):
          - 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 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.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.
          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. 2609006

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

  67556   TRACT  1                                                      257
          --------


                                   PAGE    12
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          TWP 086 RGE 19 W6M SEC 16

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 31012 BASAL MONTNEY LAG-BELLOY-GOLATA

          31012 BASAL MONTNEY LAG-BELLOY-GOLATA ZONE DEFINED IN 
          THE INTERVAL 1939.2M-1970.2M ON THE COMPENSATED 
          NEUTRON-LITHODENSITY LOG OF THE WELL W.A. 6571 
          6-28-86-21 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 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.
          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


                                   PAGE    13
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

           - 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
          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
           - WATER AND RIPARIAN VALUES THAT ARE SENSITIVE TO THE 
          MANAGEMENT OF WATER QUALITY AND QUANTITY
          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):
          - BURIAL SITES
          - 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 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.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.
          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. 2609007

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

  67557   TRACT  1                                                      556
          --------


                                   PAGE    14
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          NTS 094-G-10 BLK A UNITS 18 19 28 29

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

  67557   TRACT  2
          --------
          NTS 094-G-10 BLK A UNITS 58 59 68 69

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 36001 CHARLIE LAKE (EXCL. BELOW 'A' 
          MARKER)

          36001 CHARLIE LAKE (EXCLUDING BELOW 'A' MARKER) ZONE 
          DEFINED IN THE INTERVAL 5261.2'-5930.8' ON THE SONIC 
          LOG WITH GAMMA AND CALIPER LOG OF THE WELL W.A. 757 
          C-54-H/094-G-02

          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 


                                   PAGE    15
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          ADDRESS ANY OTHER CONCERNS BROUGHT FORWARD BEFORE 
          SUBMITTING APPLICATIONS. FOR MORE INFORMATION, REFER 
          TO THE BCER TREATY 8 PLANNING AND MITIGATION MEASURES 
          DOCUMENT.
          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 AMPP 
          DESCRIBES HRFN�S EXPECTED MANAGEMENT OBJECTIVES, 
          OPERATIONAL MEASURES, OFFSITE RESTORATION COMPENSATION 
          REQUIREMENTS, AND TARGETS FOR HRFN�S VALUES. ANY 
          ACTIVITY PROPOSED WITHIN THE PLAN AREA MAY BE SUBJECT 
          TO ADDITIONAL CONDITIONS TO ENSURE ALIGNMENT WITH THE 
          AMPP. PLEASE CONTACT HRFN FOR MORE INFORMATION
          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
          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
           - WATER AND RIPARIAN VALUES THAT ARE SENSITIVE TO THE 
          MANAGEMENT OF WATER QUALITY AND QUANTITY
          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):
          - BLUE OR RED LISTED SPECIES
          - NOTATION OF INTEREST - TRANSPORTATION/ROADWAY
          - 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.
          RECORDED AND POTENTIAL ARCHAEOLOGICAL SITES EXIST; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.
          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 


                                   PAGE    16
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          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. 2609008

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

  67558   TRACT  1                                                      834
          --------
          NTS 094-G-10 BLK A UNITS 20 30 40 50 60 70
          NTS 094-G-10 BLK B UNITS 11 21 31 41 51 61

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          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 


                                   PAGE    17
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          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.
          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 AMPP 
          DESCRIBES HRFN�S EXPECTED MANAGEMENT OBJECTIVES, 
          OPERATIONAL MEASURES, OFFSITE RESTORATION COMPENSATION 
          REQUIREMENTS, AND TARGETS FOR HRFN�S VALUES. ANY 
          ACTIVITY PROPOSED WITHIN THE PLAN AREA MAY BE SUBJECT 
          TO ADDITIONAL CONDITIONS TO ENSURE ALIGNMENT WITH THE 
          AMPP. PLEASE CONTACT HRFN FOR MORE INFORMATION
          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
          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
           - WATER AND RIPARIAN VALUES THAT ARE SENSITIVE TO THE 
          MANAGEMENT OF WATER QUALITY AND QUANTITY
          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):
          - BLUE OR RED LISTED SPECIES
          - NOTATION OF INTEREST - TRANSPORTATION/ROADWAY
          - 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.
          RECORDED AND POTENTIAL ARCHAEOLOGICAL SITES EXIST; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.
          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 


                                   PAGE    18
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          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. 2609009

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

  67559   TRACT  1                                                      261
          --------
          TWP 083 RGE 18 W6M SEC 15

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          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 


                                   PAGE    19
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          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.
          AS IDENTIFIED IN THE LAND USE PLAN THAT HAS BEEN 
          DEVELOPED BY DOIG RIVER FIRST NATION (DRFN), THE 
          PARCEL OVERLAPS THE FOLLOWING ZONE(S):
           - AN ENHANCED PLANNING AREA (EPA). EPAS HAVE BEEN 
          ESTABLISHED AROUND AREAS WITH A HIGH DENSITY OF 
          IMPORTANT CULTURAL AND BIOPHYSICAL VALUES.
           - A SUBZONE OF THE SOUTHERN MANAGEMENT ZONE. THIS 
          SUBZONE IS CONSIDERED TO HAVE A LOW DENSITY OF 
          DISTURBANCE AND HIGH PROPORTION OF CROWN LAND RELATIVE 
          TO OTHER AREAS OF THE SOUTHERN MANAGEMENT ZONE
           - 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 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 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 AMPP 
          DESCRIBES HRFN�S EXPECTED MANAGEMENT OBJECTIVES, 
          OPERATIONAL MEASURES, OFFSITE RESTORATION COMPENSATION 
          REQUIREMENTS, AND TARGETS FOR HRFN�S VALUES. ANY 
          ACTIVITY PROPOSED WITHIN THE PLAN AREA MAY BE SUBJECT 
          TO ADDITIONAL CONDITIONS TO ENSURE ALIGNMENT WITH THE 
          AMPP. PLEASE CONTACT HRFN FOR MORE INFORMATION
          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):


                                   PAGE    20
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          - NOTATION OF INTEREST - ENVIRONMENT, CONSERVATION AND 
          RECREATION
          - FISH AND WILDLIFE MANAGEMENT RESERVE
           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          DEVELOPMENT
          - 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 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.
          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.
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "REGULATORY POLICY" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          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. 2607004

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





                                   PAGE    21



                       Parcels Offered and Hectares Summary


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

            Permits                          0                0
            Drilling Licences                4              924
            Leases                           6             2425

            Grand Total                     10             3349














































