While Petrolifera does have three drilling licences in Peru, none of them are in the area where the disturbances are taking place. The troubled region is Amazonas. Peru consists of 24 different regions. Petrolifera's licences are 106 in the Loreto Region and 107 and 133 in the Ucayali Region. So compared to Canada it is like saying that you have drilling licences in the St. Lawrence Lowlands in Ontario and there is an aboriginal insurrection on the Praries in Manitoba or in the Maritimes in New Brunswick. Peru is a large country and the current troubles are not a treat to Petrolifera's licences. In addition, If you read Petrolifera's Q1 statement you would know that Petrolifera just relinquished to the Peruvian government half of the land in Block 106 after running their seizmic exploration program. They relinquished most of the northern half of Block 106. If you look at pages 35 and 36 of Petrolifera's current presentation you will see that Petrolifera is being socially responsible and just won an award in Peru for its social responsibility. Petrolifera has consulted with the aboriginal people in the regions where it is exploring and is interacting with them and consulting with them. If you know anything about Petrolifera you would also know that they funded a hospital in Argentina for the people living in the area where most of their oil and gas production takes place and they run programs there to help the people. They will probably do likewise in the areas that they produce in Peru. So unless Peru erupts into civil war (highly unlikely) Petrolifera's operations will remain intact and prosper. However, some investors may react to such a news report by not buying Petrolifera's shares which would be their loss as there are elephantine discoveries of oil and gas to be made in Peru.

Best Wishes; Scott