Canadian Spirit Resources Inc. (“CSRI”) is a natural resources company focusing on the identification and development of opportunities in the unconventional gas sector of the energy industry. The mission of the Company is to develop 1 tcf of natural gas from unconventional resource plays in western Canada. Through two joint ventures, the Company is currently evaluating the productive capability of both its shallow Gething play (Shell Canada Energy as Operator - see News Release dated July 17, 2008) and its deeper Montney play (Canbriam Energy Inc. as Operator - see News Release dated March 19, 2008). Both of these plays are located on the Company’s principal resource property at Farrell Creek, British Columbia

NGC was formerly called Coalbed Methane (CBM). NGC involves producing natural gas from a coal seam, very similar to the way natural gas is produced in a conventional environment, except for the associated quality and quantity of water. Depending on the area, the quality and quantity of water can vary dramatically and thus impact the economic potential of a project.

To produce NGC economically, formation water must be produced first, which in turn reduces the hydrostatic formation pressure. Natural gas will follow, but the challenge is to recover it in commercial rates. Rule of thumb indicates that the more water produced, the higher the permeability is and therefore the well spacing is greater. This also means that drilling costs go down and water disposal costs go up.