South East Armenia Project Blocks 4, 5 and 6 extending from 40 o 40N in the north southwards to the Iranian border Exploration Licence holders Blackstairs Energy plc, Dublin, Ireland Gerry Sheehan, Managing Director; and Bob Hamilton, Financial Director (Operator for licence) Vangold Resources Ltd., Vancouver, Canada Dal Brynelsen, President & Chief Executive (50% partner with Blackstairs) Project Summary Signed PSA on April 27 th 2007 Exploration Licence No. 53 received October 16 th 2007 (actual licence date is 30 th September 2007) Licence Agreement signed on December 28 th 2007 Remote Sensing 1:100,000 scale mapping contract with Infoterra, UK plus extension into Nakhichevan now completed. Follow up Geological Profiles work with Georisk finished end Gravity Contract with Institute of Geophysics and Engineering Seismology, Gyumri, completed Approximate expenditure by end 2008 of $941,000 ENGLISH LANGUAGE SIGNATURE PAGE FOR THE PETROLEUM EXPLORATION AND PRODUCTION SHARING AGREEMENT FOR MINING RIGHTS OF BLOCKS 4, 5 AND 6 IN ARMENIA BETWEEN THE MINISTRY OF ENERGY, THE MINISTRY OF ENVIRONMENTAL PROTECTION AND BLACKSTAIRS ENERGY PLC SPECIAL EXPLORATION LICENCE (Armenian only) No. 53 for BLOCKS 4, 5 AND 6 Five Year Term, extendable up to a further Two Years Licence signed 16 th October 2007; Term began 30 th September 2007 LICENCE AGREEMENT (Armenian only) signed 28 th December 2007 (signature page shown only) WORK PROGRAM agreed in LICENCE AGREEMENT (Armenian only) signed 28 th December 2007 (page one) WORK PROGRAM agreed in LICENCE AGREEMENT (Armenian only) signed 28 th December 2007 (page two) WORK PROGRAM: TECHNICAL AND FINANCIAL COMMITMENT REMOTE SENSING 1:100,000 SCALE SHEET ONE REMOTE SENSING 1:100,000 SCALE SHEET TWO REMOTE SENSING 1:100,000 SCALE SHEET THREE Work Program for 2007/8 Loading of scanned data from the Geological Archives into the Blackstairs Exploration Database is continuing. Over 250 items of graphic material, much of it for Block 6, has been acquired, scanned and loaded Both old and new gravity data is being digitised, gridded and contoured, and loaded into our Geodatabase. An extension to the Remote Sensing Study mapping at 1:100,000 scale southwards from Block 5 into Nakhichevan was completed in July 2008 Geological field work (Geoprofiles) following the Remote Sensing Study using Institute of Geology has commenced and should be completed later this year. Some geochemical analysis work (Armenian Institute of Geology, Fugro Robertson) has commenced. Gravity Project Over 5,000 gravity points have now been acquired (as per the original contract). A contract for a further 1,000 data points in the Noradus to Lcashen, and Masrik Basin areas was signed. This work completed by the end of 2008 Two GPS devices with accurate elevation capabilities are being used for new work. Detailed elevation surveying is not now required. Satellite DEM (Digital Elevation Models) being used to compute terrain corrections The Gravity program linking together the Block 5 and Lake Sevan areas through the Vedi and Argitchi river areas in the west, over the Selim Pass and through the Vardenis Range, in the east, is now complete Gravity in more detail Old gravity data example: SE Sevan area Old gravity data example: Block 6 area Possible Work Program for 2009 Completion of loading data into the Exploration Database. Review and analysis to continue. Additional gravity data acquisition in the north (Dzknaget) and north east (Tchambarak) Sevan areas Geological field work (Geoprofiles) in Block 6 Surface geochemical surveying being considered Start of seismic acquisition program in blocks 4 and 5. Test programs in block4, then block 5 initially. Minimum of 170 kms planned. More detailed plans to be presented early 2009