Connacher should drill up the 10 core holes this winter and as many coreholes as possible next winter on its 50/50 pool lands at Hangingstone East in order to prove up its bitumen reserves there. Then Connacher should sell its 50% position to another company and use the proceeds to pay off the $87 million dollars that it owes on the convertible debentures which are due in 2012, or use the proceeds to finance part of its EIA expansion project.

Hangingstone East appears to me to be stranded assets. It will required a large expenditure on Connacher's part to build a greenfield plant which is away from the Great Divide area. In addition, it is a distraction which will divert Connacher's attention away from its main focus which is the brownfield 44,000 bbl/d bitumen expansion project in the EIA which Connacher should be solely focussing its attention on developing after Algar is up and running. As the arrangement with AOS currently stands Connacher is to be the operator of the Hangingstone East Project which AOS states on its website "targeting a commercial project after next season (2008/2009) of coring. Connacher will be the operator for development." http://www.aboilsands.ca/operations/hangeast.html

Run Forest run!! ...............Connacher needs to get as far away from Hangingstone East as possible and soon.

Best Wishes; Scott