Letter of Agreement
BETWEEN:
Xxxxxxx International Resources Inc.
0000-0xx Xxxxxx XX
Xxxxxxx, Xxxxxxx
X0X 0X0
AND:
CMB Energy Corp.
X/X Xxxxxx Xxxxx
Xxxxxxxx Xxxx Xxxxx
Xxxxx 0000, 000 Xxxx Xxxxxx X
Xxx 00
Xxxxxxx, Xxxxxxx
X0X 0X0
Attention: Xx. Xxxxxxx Xxxxxxx
WHEREAS Xxxxxxx International Resources Inc. is desirous of entering into an
arrangement with CMB Energy Corp., to acquire an interest in a block of
petroleum, natural gas and coal bed methane leases, located on Xxxxxx Xxxxxx
Island of Canada as described in the Oil and Natural Gas Permit, No.: 9606
WHEREAS the terms of this acquisition will be as follows:
1. Xxxxxxx International Resources Inc. will purchase a 25% working interest in
Blck 96-06 comprised of 116,279 acres of PNG and CBM rights for a Consideration
of 2 million treasurey shares of Xxxxxxx International Resources Inc., at on
ascribed value of $0.015 U.S. per shares dollars for a total consideration of
$30.000.00 U.S.
2. Xxxxxxx International Resources Inc. will have an option to earns an
additional 12.5% additional working interest in Block 96-06 by expending or
causing to be spent, $1.5 Canadian on the property over an eighteen month period
from the date of this Letter of Intent.
3. Xxxxxxx International Resources Inc. will have a further option to earn as
additional 12.5% working interest in Block 96-06 by expending or causing to be
spent, $1.5 million Canadian on the property over a twelve month period
beginning at the date of expiry of the option in (2) above.
If these two options are exercised, then Xxxxxxx International Resources Inc.
will have an undivided 50% working interest in the property and will be entitled
to enter into a joint venture arrangement with the holder or holders of the
balance of the Working Interest.
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Agreed to this 18th day of February, 1999.
/s/ Xxxxxx Xxxxxxxx /s/ Xxxxx Xxxxx
----------------------- ------------------
CMB ENERGY CORP. XXXXXXX RESOURCES INC.
per: Xxxxxx Xxxxxxxx Per: Xxxxx Xxxxx
President President
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