Eastsiberian

"PetroKamchatka is an international junior oil and gas exploration company operating seven exploration licences located in the Western part of the Kamchatka Peninsula, in Russia's Far East, spanning 3,690,900 gross hectares." Three of these blocks (Tigil, Icha and Urginskaya) contain (mean estimate) 1.228 billion barrels of oil in unrisked gross prospective resources, according to an independent resources report prepared by D&M in accordance with NI 51-101. The Company also holds, directly or indirectly, beneficial interests in two drilling rigs and other ancillary oilfield equipment. KNOC Kamchatka Petroleum Limited ("KKPL"), a company controlled by Korea National Oil Company ("KNOC"), partners PetroKamchatka in the Tigil (50%) and Icha (50%) licence areas. The Koryakia Property Fund, a vehicle of the regional administration, is a partner in the Tigil (5%), Icha (5%) and Urginskaya (10%) licence areas through its 10% interest in OJSC LukinCholot. While the Company's acreage contains a very large potential oil prize, an investment in the Company should be considered highly speculative due to the early stage of development of the Company's Russian properties. The Company is in the exploration phase. It has no proven reserves or production or production revenues and has not completed the drilling of any wells to date. There is no assurance that any wells that may be drilled will be successful. Moreover, there is no certainty that any portion of the prospective resources estimated by D&M will be discovered. If discovered there is no certainty that it will be commercially viable to produce any portion of the prospective resources evaluated. We caution any interested investors that they should fully examine the comprehensive examination of Risks before considering an investment in the Company's securities.