NORTHERN LIGHTS PROJECT

The 2007/2008 winter drilling program was completed, which included 280 auger and core holes. Of the program's holes, 231 were drilled on NLP leases to further delineate the resource and extend pit boundaries; 17 were drilled on the McClelland Lease to conclude the initial exploration program on the lease; and 32 were drilled on NLP’s coal lease application area. Results of the drilling program are expected to be made public in the fall of 2008.

Synenco Energy updated the oil sands mining and bitumen extraction application now with Alberta regulators by filing a supplemental submission, which included a project description update, EIA update and responses to Supplemental Information Requests. The company announced results from the 2006/2007 winter drilling program on the Northern Lights Partnership (NLP) lands and the Best Estimate of Discovered Resources (subsequently redefined as Discovered Petroleum Initially-In-Place) on these lands. The Best Estimate of Discovered Petroleum Initially-In-Place, as provided by an independent consultant, is 1.657 billion barrels (994 million barrels net to Synenco).

Synenco received supplemental information requests from regulatory authorities regarding the Northern Lights mining and extraction application, originally filed in June, 2006. Management expects to file responses to these requests during the fourth quarter.