Australia

During 2010, costs incurred in Australia have been limited to geological and geophysical analysis, engineering and analytical evaluations.

The Company’s 2010 work commitment has been extended to December 31, 2011, and the capital requirements for the balance of 2010 are anticipated to be costs for additional geological and geophysical analysis, engineering and analytical evaluations, and working with the Northern Land Council and Aboriginal Area Protection Agency for site clearances and necessary environmental studies. The Company‟s future capital requirements for 2011 and beyond will be dependent upon the evaluation of the results of the 2011 work program on the Shenandoah-1 well and the overall Beetaloo Basin Project.

The availability of debt and equity capital, and the price at which additional capital could be issued, will be dependent upon the success of the Company‟s exploration activities, and upon the state of the capital markets generally.

Future Operations

The Company’s revised minimum work program obligations to retain all of the underlying Permits in the Beetaloo Basin, will be to expend $200,000, $10,100,000 and $5,000,000 during the years ending December 31, 2010, 2011 and 2012, respectively