NiMin has designed, implemented, and initiated the Combined Miscible Drive (“CMD”) Project on its Pleito Creek Field located in Bakersfield, California. CMD incorporates the injection of oxygen and water as foam to create CO2 and steam in the reservoir through wet combustion and is designed to increase reservoir pressure and significantly reduce oil viscosity making the oil substantially more mobile so that it will flow more rapidly into production wells.

An injection facility has been constructed and is operational for the CMD process and four horizontal gravel packed wells and two injection wells have been drilled in conjunction with the CMD Project and are currently in operation. The CMD Project is designed to enhance recovery of oil in approximately 20% of the Pleito Creek Field and is expected to be expanded to full field development after the concept is proven. CO2 injection began in March 2009, followed by oxygen injection and initial combustion in May 2009.

Production response from the horizontal wells is expected in early 2010.