Comox Joint Venture

In 2008 Compliance Energy Corporation (“Compliance”) finalized a transaction with West Fraser Mills Ltd. (“WFM”) whereas Compliance along with its Joint Venture partners Itochu Corporation and LG International exercised its option with WFM for their Vancouver Island coal and mineral holdings. Through this series of transactions Compliance acquired a 60% ownership interest in 29,000 hectares of fee simple coal and mineral rights centered in the Comox Coal Basin. Compliance’s projects in the Comox Coal Basin are The Raven Coal Project and The Bear Coal Project.