Choice Resources Corp. (TSX VENTURE:CZE):

Quarter ended November 30th, 2004

The Corporation continues to show excellent results for this quarterly report ended November 30th, 2004 and continues the trend established in the previous quarters.

For the nine month period;

- Earnings are $1.95 million or 5 cents per share

- Production is up 37% averaging 1,425 boe/d

- Cash flow from operations is up over 200% and on target at 15 cents per share

- G&A is reduced by 43% (51% for the quarter)

- Net debt is essentially flat for the quarter at $17.66 Million (reduced by 34% since year end)

- Operating expenses are up for the nine months due to the full period of the Brigus acquisition. (For the quarter expenses are down 9% on a total and 5% on a per unit basis)

- A New Pool discovery has been made and land has been optioned in the Bow Island area

- A Coal Bed Methane play is being exploited

- Interest expense has been reduced 76% (down 85% for the quarter)

Continuous improvement in the Corporation is ongoing and showing results. As mentioned last quarter, the management team has reduced debt, reduced G&A, added several high quality exploration plays, acquired seismic over our key operating areas and identified a high impact exploitation opportunity at Pincher Creek with a resource base of between 30 and 80 Bcf potential. The Corporation is planning for a horizontal well at Pincher Creek and is in discussion with potential partners to assist in the exploitation of this high impact play. Two short term exploitation and four exploration opportunities have been identified and a well could be drilled before the end of March if these discussions with third parties are successful.

These results are starting to show as the Corporation, subsequent to the quarter, drilled 6 wells and has added several key, high impact exploration plays.

For the nine month period production is up 37% and for the 3 month period is down slightly at 1,354 boe per day. The Pincher Creek field had a negative adjustment from the Shell Waterton Plant and sales were reduced for the quarter due to this prior year adjustment. The adjustment, which is less than 3% of the year to date sales, is reflected in our volumes and cash flow which are now normal. The Corporation is auditing this allocation and has chosen to record the adjustment immediately.

Cash flow at 15 cents per share is essentially on target with internal projections. The quarterly cash flow was 4 cents per share.

Our exploration play inventory continues to grow with 12 prospects in the queue (several of which were added subsequent to the quarter). Results from exploration take time and we now have some success as we added a new play in the Bow Island area. Six sections of land have been optioned and seismic continues to be acquired to determine the size and extent of this play. Three other exploration prospects will be drilled prior to the end of March and four wells will be tested for reserve potential. The risk/reward ratio is excellent as we target potential of 10 to 20 Bcf per play. This program will have a significant impact on next year`s capital budget.

Choice Resources Corp. has recently concluded the signing of Participation Agreements with Vecta Energy Corp. that will grant to Choice the opportunity to test multi-component seismic technology over 3 separately identified W5M P&NG prospects. The program calls for Choice and Vecta, a private corporation, to shoot 2 seismic programs with the option to drill up to five wells on an option basis in 13 sections of land in central Alberta.

The program uses Vecta`s proprietary acquisition, processing and interpretation. Vecta uses conventional seismic data in conjunction with practical shear wave application to enhance the ability to identify different lithologies prior to drilling.

Choice`s exposure in the seismic program is approximately $400,000 and land will be earned through drilling. The option wells are on 11 sections in the Chambers area, with Choice having an option to take 25% of the well and near Olds covering 2 sections where Choice will have the option to take 33% of the well. Choice will earn an average of 51 percent of the original participating interest after payout of the wells. Seismic has been shot and is currently being processed.

These expenditures are exploration in nature but this technology has the potential to add significant reserves and can be applied to many other areas. Finding and development costs are escalating within the industry and Vecta`s technology has the potential to significantly reduce these costs. The Corporation is very pleased to have developed a relationship with Vecta in the application of this technology.

A new core area was added in the Snipe Lake area subsequent to the quarter end and one well will be tied in by March 1st. The Coal bed Methane play is developing and results on this program will be available in the fourth quarter. The Corporation has now accumulated 10 sections of prospective acreage and up to eight wells per section could be drilled in 2005 once testing is complete.

Net debt continues to be reduced as the Corporation rationalized 2 minor properties for $2.4 million. One of the property sales closed subsequent to the quarter.

The results to date are excellent and the comparison below highlights the financial and operating results of the three and nine month periods between 2003 and 2004. Enclosed are the financial statements themselves with the associated notes, an operations summary and a management discussion and analysis. Please refer to the filings on Sedar for the notes to the financials.

CAUTION REGARDING FORWARD LOOKING STATEMENTS

Certain statements contained herein constitute forward-looking statements. The use of any of the words ``anticipate``, ``continue``, ``estimate``, ``expect``, ``may``, ``will``, ``project``, ``should``, ``believe``, and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. These statements speak only as of the date of this presentation. The Corporation does not undertake any obligation to publicly update or revise any forward-looking statements.

Consolidated Financial Statements may be found under the companies profile at: www.sedar.com.

Choice Resources Corp.

Gord Harris

CEO

(403) 216-5821

or

Choice Resources Corp.

Steve Austin

CFO

(403) 216-5821

(403) 216-5828 (FAX)

Email: info@choiceresources.ca