Ann: Operational Update , page-11

Hey Guys,

From my brief reading of the quartely I believe these are the key take homes:

1. Petrofrontier is free caried for upto 385 km of Siesmic and upto 6 test wells by Statoil, and BARAKA is NOT. (I have not read anywhere that Baraka is free carried for this expenditure Siesmic or Drilling of wells, if anyone has found any information that indicates otherwise please provide a link).

2. Baraka has a current cash position of $750,000 and is looking at liquidating $800,000 of current assets. Our cash position after this is taken into account is $1,550,000.

3. Baraka is projecting next quarters spend at $470,000 for exploration and $90,000 for admin costs as total of $560,000.

With this projection our cash available for potentiential drilling in the 2014 calander year will be $990,000 excluding admin expenditure in the 2014 income year.

I personally can not see how Baraka will be able to fund its commitment to 25% of costs in relation to up to a potential 6 well that will be drilled on it EP127 and EP128.

Even if only one well was drilled on Baraka tennements based of a conservative estimate of $5 million for a convential well in the australian outback, without encountering any probelems our contribution will need to be 25% of $5 million ($1.25 Million).

Baraka needs to secure additional funding soon or we will potentially become a going concern in the 2014 income year.

No plan has been provided by management in relation to securing funding for 2014.

I think the Southern Georgina basin has a lot of potential but Baraka in its current position might not be around long enough to reap the benefits of future oil discoveries in the region if it is unable to secure monies to fund its share of exploration commitments.

If anyone has anything to add to this please feel free if I have made any incorrect assumptions please let me know and the out readers of HC.

This is all in my own opinion and this is not investment adivce pleae Do your on reasearch.