In answer to your question, yes we do have all of the necessary
funds in place for the upcoming 10 core hole drilling program. We
advanced the funds on June 9, 2008 in order to ensure that the total
cost of the drilling program was paid in advance. So to confirm with you
the funds to be received from the private placement are not going
towards the existing core hole drilling program.

The proceeds from the current private placement are being budgeted as
follows:

1. $500,000 will be paid towards the remaining 2008 farm-in
commitment at Pasquia Hills. Under the terms of the farm-in we need to
advance a minimum total of $1,000,000 each year for a five year
period and we have a lot more activity planned before the end of the
year.

2. $500,000 is being budgeting towards potential conventional oil
and gas acquisitions we are currently evaluating including the
possible closing of the Pincher Creek acquisition but other deals
as well.

3. $100,000 is being budgeted for Goldnev's share of work-over /
re- completion expenses at Pincher Creek (Assuming the transaction
is closed).

4. $100,000 is being budgeted for corporate purposes including,
overhead etc...