Touchstone Exploration Inc T.TXP

Chinook Testing

[Margin321]

They are going to test three zones at Chinook, starting with the lowest and moving uphole. Each zone could take a week. The results of the lowest test would be very material insider information, as a positive test of any zone would move the Chinook well from promising into a proven discovery well with established commercial reserves. Since this is the first test in a prospect that is estimated to be even bigger than the already proven Cascadura discovery, it will be very important.

Maybe that is why the directors sold some of their options shares right away. That was probably their only chance before year end as they likely will not be able to trade TXP shares after the results of the first tested stage of Chinook are available to them.

Cormark would not have made TXP a top pick without some sense that the upcoming Chinook tests have a high probability of being very good. The Chinook testing will have biggest positive impact.

The later Cascadura Deep testing should really be okay and just add some additional quantitative color to the discovery there. Good results in all three sands would be great of course but at least the upper zone seems to be almost a sure thing.

[Davidblackgreen]

One new director appointed and alloted her first 110,000 share options at $2.07. Core three operational directors sold their expiring option stock. And lastly a non executive director bought 30,000 shares at $2.01. All occurred in that tight time space to avoid being trapped holding insider information.   That being so in the next few days TXP will have the first sniff of gas or