Canadian Spirit Resources Inc. · TSXV:SPI

Canadian Spirit Resources — Investor Presentation (June 2008)

30 slides from Canadian Spirit Resources's investor presentation, June 2008

1. Slide 1: Moving Forward

   Moving Forward June 2008 Trading Symbol: SPI – TSX Venture Exchange Website: www.csri.ca

2. Slide 2: Disclosure Statement

   DISCLOSURE STATEMENT The corporate information contained in this presentation contains forward-looking forecast information. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonably accurate by Canadian Spirit Resources Inc. (“CSRI”) at the

3. Slide 3: Farrell Creek, British Columbia

   FARRELL CREEK, BRITISH COLUMBIA Flaring b-092 Well Drilling b-003 Well

4. Slide 4: Beautiful British Columbia

   “BEAUTIFUL BRITISH COLUMBIA”

5. Slide 5: CSRI Location

   CSRI LOCATION British Columbia, Canada Fort St. John CSRi Land Sedimentary Basins Duke Energy Pipeline Spectra

6. Slide 6: Why Unconventional Gas in Northeast British Columbia?

   WHY UNCONVENTIONAL GAS IN NORTHEAST BRITISH COLUMBIA? ƒ Large resource Æ 35 bcf per section in shallow formations ƒ 28 bcf per section - Gething Formation ƒ 7 bcf per section - Moosebar/Gates Formations Æ 50-100 bcf per section in the deeper Montney Formation (Government estimate) ƒ Long-life resour

7. Slide 7: The B.C. Advantage

   THE B.C. ADVANTAGE ƒ B.C. Crown Royalty (new Net Profit Program) ƒ Designed specifically for unconventional gas plays ƒ 2% royalty on gross revenue until capital pool payout – compared to approximately 20% gross royalty in Alberta ƒ Allowable capital pool includes the capture of previous 5 years of

8. Slide 8: Why CSRI?

   WHY CSRI? ƒ Land ƒ Approximately 60 sections 100% interest shallow rights (Gething) ƒ 70% include deep rights (Montney) ƒ Resource ƒ 1.8 tcf discovered resource in Gething/Moosebar Formations ƒ 2-4 tcf potential for deep formations ƒ Funding ƒ Joint venture on Montney prospect ƒ Recent $5.6 million

9. Slide 9: Farrell Creek Lands

   FARRELL CREEK LANDS CSRI EnCana Talisman GeoMet/CEP

10. Slide 10: Farrell Creek Geology

    FARRELL CREEK GEOLOGY Cretaceous Harmon Gates Moosebar Bluesky ] Gething Cadomin ] Montney Mississippian Devonian Cambrian •Average depth to top of Gething is 700m •Average depth to top of Montney is 2100m

11. Slide 11: Farrell Creek Stratigraphy

    FARRELL CREEK STRATIGRAPHY @SRi Estimated Gas In Place Formation Litholo Approximate Depth To Top (m : gy PP P P (m) (BcfiSection) Moosebar/Gates Shale 400 7! v Bluesky Sandstone 650 5° . Coal/Dirty Coal/Shale/Silt/Sandstone 1 Gething “Organically Rich Rock Package" > 28 Cadomin/Nikanassin Sandstone

12. Slide 12: Generic Well Production Profile

    FARRELL CREEK GENERIC WELL PRODUCTION PROFILE ____ Shale Gas Profile + Total G ____ Coal (CBM) Profile A = S CBM ___ Total Farrell Creek Gas R A T Pilot Results To Date E Shale TIME 30+ YEARS

13. Slide 13: Farrell Creek Development Strategy

    FARRELL CREEK DEVELOPMENT STRATEGY ƒ Shallow Rights – Gething ƒ Validated a large resource by drilling sufficient test holes to confirm ƒ Initiated production testing by stimulating pilot wells with various completion techniques to establish economic criteria ƒ Based on the resource and productive c

14. Slide 14: Farrell Creek Shallow Overview

    FARRELL CREEK SHALLOW OVERVIEW ƒ Acquired approximately 60 sections (40,000 acres) of shallow rights ƒ 70% of land also has deep rights ƒ Spectra Energy main sales line runs through the west block of CSRI lands ƒ Nine test holes drilled to-date ƒ Five test holes have been fracture stimulated ƒ Indep

15. Slide 15: Current Gething Activity

    FARRELL CREEK CURRENT GETHING ACTIVITY ƒ Proceeding with pilot project tie-in ƒ Have begun to order equipment ƒ Plan to initially tie-in up to 5 wells ƒ Revenue expected in Q4 ƒ Will reduce flaring and allow extended production run time ƒ Drilling and completion of additional pilot wells subject to

16. Slide 16: Undervalued Gething Resource

    UNDERVALUED GETHING RESOURCE $/Share Reserves 2.00 5.60 11.20 16.80 22.40 1.75 4.20 8.40 12.60 16.80 * Value ($/mcf) 1.00 2.80 5.60 8.40 11.20 0.50 1.40 2.80 4.20 5.60 Resource 10 20 30 40 Recovery Factor ( % ) Assumptions: 1.4 tcf of Gething gas-in-place (Sproule) & 50 million shares outstanding *

17. Slide 17: Farrell Creek Lands

    FARRELL CREEK LANDS CSRI EnCana Talisman GeoMet/CEP

18. Slide 18: Gething Pilot Project

    FARRELL CREEK GETHING PILOT PROJECT

19. Slide 19: Gething Project Economic Assumptions

    FARRELL CREEK GETHING PROJECT ECONOMIC ASSUMPTIONS ƒ $1.1 million per well for drilling, completion and tie-in costs ƒ $6.0 million for gathering and processing facilities ƒ 100-250 mcf/d estimated stabilized flow per well (Implies a future recovery of 0.6 to 1.6 bcf per well) ƒ Operating costs of $

20. Slide 20: Gething Project Economics - Sensitivities

    FARRELL CREEK GETHING PROJECT ECONOMICS - SENSITIVITIES Rate Of Return 100 mcf/d 150 mcf/d 200 mcf/d 250 mcf/d $9.50 Flat 6% 17% 28% 38% $10.50 Flat 9% 22% 34% 46% $11.50 Flat 13% 26% 40% 55% $12.50 Flat 16% 31% 46% 63% Henry Hub (NYMEX) pricing - $US/mcf

21. Slide 21: Montney Joint Venture

    MONTNEY JOINT VENTURE ƒ Strong private energy company as partner ƒ Approximately 40 sections of prospective land ƒ Partner to earn 65% ƒ Could result in CSRI having no capital obligations through the initial $29 million of gross expenditures ƒ Option to earn 70% through significantly increased expen

22. Slide 22: Montney Play

    MONTNEY PLAY ƒ Gas rich shale ƒ Fairway extends from west central Alberta to northeast British Columbia ƒ Horizontal drilling and fracturing technology are key ƒ Up to 300m thick ƒ Typical spacing of 2-4 wells per section

23. Slide 23: Montney Activity Map

    MONTNEY ACTIVITY MAP Montney Fairway Montney Production CSRI Lands

24. Slide 24: Montney Reserves

    MONTNEY RESERVES ƒ Industry: ƒ Gas-in-place ranging from 20–140+ bcf/section ƒ Expect recovery factors of 50% ƒ Increased well densities could increase this ƒ CSRI: ƒ Government estimates gas-in-place ranging from 50–100+ bcf/section ƒ Implies a total gas-in-place estimate of 2–4 tcf on 40 sections

25. Slide 25: Montney Production

    MONTNEY PRODUCTION ƒ Industry: ƒ Vertical well initial production (IP) at 1–2 mmcf/d ƒ Horizontal well IP at 4-5 mmcf/d ƒ Some IP at 7+ mmcf/d ƒ CSRI: ƒ EnCana vertical well ƒ IP of 1+ mmcf/d ƒ Just north of CSRI lands

26. Slide 26: Montney Share Price Uplift

    MONTNEY SHARE PRICE UPLIFT 12 8 $/SHARE 4 Assumptions: 0 40 sections of land 25% 50% 75% 4 wells per section PERCENTAGE OF CSRI LAND DRILLED 65/35 Farm-out Henry Hub gas price of US $9.00/mcf 50 million shares outstanding

27. Slide 27: 2008 Funding Plan

    2008 FUNDING PLAN ƒ Issued $5.6 million of units – tie-in pilot project for cash flow ƒ Closed joint venture on deep rights (Montney) – up to $29 million in capital spending by partner ƒ Seeking similar joint venture on shallow rights (Gething) – expand pilot project and pursue development ƒ Potenti

28. Slide 28: Conclusions

    CONCLUSIONS Farrell Creek Area ƒ Large discovered shallow resource – 1.8 tcf on existing lands ƒ Expect production later in 2008 with reserves to follow ƒ Large number of potential well locations ƒ Deep rights joint venture proceeding ƒ Similar joint venture being pursued for shallow rights ƒ Year r

29. Slide 29: Corporate Information

    CORPORATE INFORMATION ƒ TSX Venture Exchange - SPI ƒ Working capital surplus - $4.4 million as of March 31, 2008 ƒ No debt ƒ 44,028,082 shares outstanding ƒ 2,472,000 options outstanding – average strike price = $2.34 ƒ 1,526,500 warrants outstanding – strike price = $1.10 (expiring July 18, 2008) ƒ

30. Slide 30: Canadian Spirit Resources Inc.

    Canadian Spirit Resources Inc. Suite 1950, Ford Tower 633 - 6th Avenue S.W. Calgary, Alberta T2P 2Y5 Telephone: (403) 539-5005 E-mail: info@csri.ca TSX Venture Exchange - SPI www.csri.ca

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