In a 11/29/07 interim financial statement on sedar that might identify a challenge for Pennine

The Company has a $140,000 legal claim against it for a claim for payment and discussions are ongoing. In

the opinion of management, the amount claimed is not valid.

The company has initiated a Statement of Claim in the amount of $550,000 against Enerhance Resources Inc.

to recover funds advanced for a project that is in dispute.