Ann: CBM Operations Update, page-50

Finally had time to read the update, a couple of times. Very positive update, although it also highlights some issues moving forward pertaining to approvals for future drilling contracts. There's a requirement to engage local content/contractors for the permits/approvals/regulatory processes, but it's patently clear the local equipment is not up to the task. This has been highlighted by the company over the last two updates with commentary on the poor drilling performance and poor equipment maintenance. Frankly, it would seem the local equipment is Soviet Era 40 plus year old junk ready for the scrap metal recyclers.

It looks like Major Drilling are putting their best foot forward by providing their large mineral style rig with a mud system. And good on them. It will give EXR more leverage to convince the regulatory authorities for us to use contractors with current era equipment so as to not see a repeat of what has been to date a disaster of a drilling program. As a shareholder I'd be happy to pay twice as much to get proper results and see share price appreciation rather than the rubbish that we've been forced to endure. My recollection is Erdene Drilling had a good run last year, hopefully we'll see a combination of MD and ED for future exploration and pilot well drilling.

Looking forward to further updates on the CBM flow tests and exploration drilling. We're getting to the business end of the initial flow testing for Nomgon, we should have regular updates on flow test over what it typically a quiet period for us during December to February.

Exciting times ahead, bring on the share price appreciation. Its the only reason why we're here.