The Company has consistently located its wells on ultra wide spacing patterns to minimize the year to year decline in deliverability and maximize the longevity of production. The Company delivers its gas to three main metering stations within Union Gas Limited’s transmission system from the natural field pressure of its wells, without the aid of compression equipment. One major reason for the Company's success in natural gas well completion and production is its custom casing and well stimulation procedures (hydro-fracturing). In the early 1960's the Company experimented with and developed superior formulae and techniques still being used today. The Company also maintains a substantial portfolio of undrilled development and exploratory lease holdings in appropriate proximity to existing production.

Although the price of natural gas has been trending lower for the past three years, there is considerably less risk in hydro-carbon development than with mining exploration. Consequently, the Company continues to allocate necessary funds in order to sustain production levels. For the past decade the Company has been consistently selling the majority of its gas production at forward “strip contract” prices that have been substantially higher than the current NYMEX (New York Mercantile Exchange) price at time of delivery.

The Company’s Statement of Reserves Data and Other Oil and Gas Information (the "Statement") in the form of National Instrument 51-101 - Standard of Disclosure for Oil and Gas Activities F1 is effective as at March 31, 2011 and was prepared on June 7, 2011. The Statement is available under the Company’s profile at www.SEDAR.com.

After producing 16 Billion Cubic Feet (“BCF”) of gas over the past 44 years the Company’s remaining proven and probable recoverable gross reserves have currently been estimated at 14.7 BCF. The reserve data presented below is based on following technical report (the “Technical Report”): “Metalore Resources Limited – Reserves and Present Value Estimate as of March 31, 2011”, prepared by James W. McIntosh, P.Eng., of Jim McIntosh Petroleum Engineering Ltd., dated June 7, 2011. James W. McIntosh, P.Eng., is independent of the Company. The reserve data summarizes the natural gas reserves and the net present values of future revenue for these revenues using forecast prices and costs. The Technical Report has been prepared in accordance with standards contained in the COGE Handbook and the reserve definitions in National Instrument 51-101 - Standard of Disclosure for Oil and Gas Activities (“NI 51-101”).

The Company has complied with all filing requirements pursuant to NI 51-101 by filing forms NI 51-101F1, F2 and F3 under the Company’s profile at www.SEDAR.com.




PICTURED ABOVE is nomenclature of a modern compliance wellsite in Ontario (#91).The company’s Project.