1. www.ir.gov.sk.ca Land Tenure – Details of Process The Saskatchewan Natural Gas Advantage Ed Dancsok, P Eng, P Geo. Director, Geology & Petroleum Lands Branch

2. www.ir.gov.sk.ca Outline 1.Landsale Notice 2.Restrictions 3.Posting type and requirements 4.Bidding 5.Results

3. www.ir.gov.sk.ca CROWN LANDSALES Held every second month (Six times a year) Usually second Tuesday of the month Bids due 4:00 p.m. on day prior to sale (Monday)

4. www.ir.gov.sk.ca Postings -Posting deadline approximately 3 months prior to sale. -Requested by Companies -Posting reviewed by Mineral Rights Unit. -Department advises company if posted or not. -Postings sent to other government agencies for review. -Any restrictions are attached to postings prior to sale notice. *Lettering System*

5. www.ir.gov.sk.ca “B” RESTRICTION Environmentally Sensitive These lands either in whole or in part contain an environmentally sensitive area and as such may require environmental screening before exploration activities can proceed. Inquiries regarding these areas should be directed to: Mr. Graham Mutch, Project Manager Environmental Assessment Saskatchewan Environment Telephone: (306) 787-6241; Fax: (306) 787-0930

6. www.ir.gov.sk.ca “B1” RESTRICTION Environmental Protection Plan Areas These lands either in whole or in part are judged highly sensitive environmentally and exploration or development on the subject lands will require Environmental Protection Plan (EPP) review and clearance/approval pursuant to The Environmental Assessment Act prior to the proposed activity proceeding. Inquires regarding these areas should be directed to: Mr. Graham Mutch, Project Manager Environmental Assessment Saskatchewan Environment Telephone: (306) 787-6241; Fax: (306) 787-0930

7. www.ir.gov.sk.ca “C” RESTRICTION Wildlife Habitat These lands either in whole or in part are subject to The Wildlife Habitat Lands Disposition and Alteration Regulations under The Wildlife Habitat Protection Act, 1992. Lands designated under The Wildlife Habitat Protection Act are protected for natural and wildlife values. A detailed review is necessary prior to any development on these lands. Surface alteration to these lands may not be granted without the prior approval of Saskatchewan Environment. Inquiries regarding these areas should be directed to: Mr. Conrad Olson, Wildlife Habitat Specialist Saskatchewan Environment Telephone: (306) 787-2385; Fax: (306) 787-9544

8. www.ir.gov.sk.ca

11. Posting Types Special ExploratoryPermits: - Very large tracts. - Not posted within 40km of a cased well. - Other posting types take preference over these. Exploration Licences: -First offered in 1998. -Limited from 1 section to 36 sections. -Take preference over leases. -Will try to remain flexible. Leases: -Will post sizes ranging from less than 1 up to 4 sections. -Offset by production.

12. www.ir.gov.sk.ca Requirements Special ExploratoryPermits: - Work commitment bid. - Expenditure deposit equal to 25% of 1 st year’s commitment - Rental fee of 25¢ per ha for the first year. Exploration Licences: -Bonus bid. -Rental fee of $1.75/ha for the first year. -Application fee of $250.00. Leases: -Bonus bid. -Rental of $3.50/ha (prorated @ 25¢/ha/month partial year). -Application fee of $28.00 per lease.

13. www.ir.gov.sk.ca Bidding Closing time: 4:00 p.m. day before sale Bid format shown on page 3 of sale notice Each bid to be in separate sealed envelope Bids must contain funds to cover bonus, rental & application fee Electronic debit: Contact Ken Brown, Administrator Revenue Accounting (306) 787-6508

14. www.ir.gov.sk.ca Acceptance or Rejection of Bids Bids reviewed for acceptable bids Each parcel evaluated prior to sale with minimum acceptable price determined NO “MINIMUM BIDS” Although the posted lands are normally awarded to the highest bidder, the province reserves the right to reject any or all offers. “THIS DOES OCCUR”

15. www.ir.gov.sk.ca Results Available noon Thursday after sale Immediately on website Next, sent to Email subscribers Hard copy mailed out the following day E-mail subscription service: www.ir.gov.sk.ca/subscribeonline

16. www.ir.gov.sk.ca

17. Saskatchewan Regulations Freelaw® is free access to up-to-date electronic versions of all Government of Saskatchewan Acts and Regulations, The Saskatchewan Gazette, and other legislative publications - all fully downloadable and searchable in Portable Document Format (PDF). You need the free Adobe Acrobat Reader (click the name to download) to view and print our PDF files. Freelaw ® www.qp.gov.sk.ca

18. www.ir.gov.sk.ca Landsale bids will be accepted up to 4:00 p.m. CST on the day prior to the sale date. Requests for postings will be accepted up to 4:00 p.m. CST on the closing date. Posting requests are to be mailed or faxed to: Crown Sale Postings Saskatchewan Industry and Resources 6th Floor, 2101 Scarth Street REGINA, Saskatchewan S4P 3V7 Fax: (306) 787-0620 Inquiries regarding postings: (306) 787-2610 Schedule of Sales of Petroleum and Natural Gas Dispositions in Saskatchewan for 2006 Sale NumberSale Date Closing Date for Postings Sale Notice Published Date 309February 14, 2006October 19, 2005November 24, 2005 310April 11, 2006January 11, 2006February 9, 2006 311June 13, 2006February 22, 2006March 23, 2006 312August 15, 2006April 26, 2006May 25, 2006 313October 17, 2006June 21, 2006July 27, 2006 314December 12, 2006August 30, 2006September 28, 2006