Canadian Warrants

Arrangement warrant symbol:  SHR.WT
Arrangement warrant Cusip No.:  868656 11 7
Arrangement warrant trading currency:  Canadian dollars
 
Designated market-maker:  National Bank Financial Inc.
Other markets:  None
Incorporation:  The company was incorporated under the Business Corporations Act (Alberta) on June 7, 2006.
 
Fiscal year-end:  Dec. 31
 
Nature of business:  Pursuant to the completion of the arrangement, the company will be engaged in the exploration for, and the acquisition, development and production of oil and natural gas reserves primarily in the province of Alberta.
 
Transfer agent and registrar:  Valiant Trust Co. at its principal offices in Calgary and its co-agent, BNY Trust Co. of Canada at its office in Toronto
 
Dividends:  The company has not paid any dividends since its incorporation and does not foresee the declaration of payment of dividends in the near future. Any decision to pay dividends on the company's common shares will be made by the board of directors on the basis of the company's earnings, financial requirements and other conditions existing at the time.
 
Arrangement warrants:  The arrangement warrants are governed by the terms of a warrant indenture between the company and Valiant Trust Company. The warrant indenture provides for appropriate adjustments to the arrangement warrants in the event of stock dividends, subdivisions, consolidations and other terms of capital reorganization.
 Each arrangement warrant will entitle the holder to acquire one common share of the company at a price of $1 per share on or before Sept. 13, 2006.
 
Recent financing:  An initial private placement of five million units of the company at a price of $1 per unit, each unit consisting of one Class A preferred share of the company (which will ultimately be exchanged for a common share of the company pursuant to the arrangement) and one performance incentive right to proposed or acting directors, officers, employees and service providers of the company or Sound Energy Trust will be completed as part of the arrangement. The total gross proceeds of the initial private placement will be approximately $5-million. The proceeds will be used to finance planned capital expenditures and for general corporate purposes.