PROJECTS
Turner Valley Oil Project - Calgary, Alberta

The Company holds various interests, averaging about 4.375%, in certain petroleum and natural gas leases. The Company is in a non-operator position on all leases in this area. The Company has signed multiple farmout agreements on portions of the leases with three separate parties whereby the Company has retained royalty and/or working interests.

During the 2002 fiscal year, the Company signed an agreement whereby an investor agreed to pay 1.575% of the cost of drilling and completing a specific well on Company interest land in this area. Pursuant to the agreement, the Company will receive 15% of any revenues from this interest in the well until the investor recovers his investment, and thereafter the Company will receive 50% of revenues. As at October 31, 2007, the investor had recovered $80,405, and drilling advances of $123,435 remain to be paid (2007 - $128,441).

The Turner Valley project has been written off to comply with Canadian generally accepted accounting principles, which in the absence of an exploration plan or valuation report, presumes that a write-down of exploration and development costs is necessary when there has been a delay in the development extending beyond three years.

The Company is in a non-operator position on all leases in this area. Minor royalty income is received from one of four Company interest wells. Due to uncertainty of the project the Company chose to impair the Turner Valley asset in fiscal year ending Jan 31, 2009

Exploration Program

The Company has no plans for further exploration of these properties in the near future.

Reconciliation of Proposed & Actual Expenditures

The Company has no plans for further exploration of these properties in the near future.

Exploration Results

Four wells have been successfully drilled and tested on Company interest lands in this area. One of the four wells are currently producing. The remaining three wells are not producing due to pipeline problems which are not expected to be resolved in the near future.

Future Developments

The Company has no plans for further exploration of these properties in the near future.