Dear Shareholders & Investors

The Company has announced a

The funds are to be used to complete the Little Swan Farm In Agreement with Saturn Minerals Inc ("Saturn"). Saturn has recently announced it has closed a financing that funds its drilling program on the nearby Bannock Creek property, where it has identified a closed, fault bounded, roll over structure of 480 acres minimum in area, that has the potential to contain up to 38 million barrels in place of resource from all three targeted reservoirs.

With the spring breakup road restrictions in Saskatchewan being lifted this week, the Company anticipates that Saturn, now it has drill funding in place, will shortly announce a "spud date" for the well.

Oil prices have firmed up and are currently trading around US$56, so with anticipated costs of C$500,000 to drill and complete the well, and C$20 to C$25 cost per barrel to produce, we are of the opinion that the potential economics are very positive. We believe the recent Junex Resources trading and substantial market gains after their discovery, is an example of how the market could react to a discovery at Bannock Creek.