Strategy

To reach its objective of proving-up and developing a significant recoverable Saskatchewan heavy oil resource based on proven thermal EOR technologies such as SAGD, Rallyemont’s strategy is three fold:

Phase 1: Lock-up the Resource --> Rallyemont has acquired to date 100% working interest in 83 sections (53,000 acres) of crown and freehold lands with multi-zone potential.

Phase 2: Prove-up the Resource --> Rallyemont has been able focus in its exploration and delineation based on approximately 150 historic drill holes that contained core and/or log information in and around the properties. From this, the Company has collected new geological information at the Prince property from 22 new drill holes, 169 kilometers of 2D seismic and 34 square kilometers of 3D seismic, as well as trade seismic and numerous geological, environmental and engineering studies. The heart of the Prince property currently has a drill hole density of around 4 holes per section. Independent petroleum resource evaluators McDaniel & Associates provided a National Instrument 51-101 compliant reserves and resources estimate showing 20.1 million barrels of 2P reserves and 56.8 million barrels of best estimate contingent resources, effective October 31, 2011.

Phase 3: Develop the Resource --> Rallyemont has now completed a substantial exploration program at the Prince property to facilitate development of a thermal project. Preliminary engineering work, including a scoping level study for a 5,000 to 10,000 barrel per day capacity thermal project, as well as reservoir and rail transportation modeling has been completed. Rallyemont has also submitted EOR and Environmental Project Proposal (“EPP”) applications to the Saskatchewan Government. Next steps include detailed engineering, design and development. Rallyemont is currently building a strong technical development team and is seeking financial partners to share in the long term profits that can be generated off of this attractive prospect.