Connacher Oil & Gas Ltd CLLZF

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[elberbank]

Dear Sir or Madam I have a few questions about the possible purchase of the 8,000 barrels-per- day ("bpd") refinery operated by Holly's Montana Refining Company in Great Falls, Montana. Is this refinery able to process bitumen? YES If the refinery can not process bitumen, what is the estimated cost to upgrade the refinery? NO COMMENT Would the bitumen have to be blended before refining, if so what will be used for the blend and where you would receive your supply? CONDENSATE - IN THE MARKETPLACE Has any discussions been held with a supplier? NO COMMENT BUT NOT AN ISSUE What pipeline would be used to transport the bitumen from your site to the refinery? STILL BEING FINALISED BUT ASLONG AS YOU CAN GET TO EITHER EDMONTON OR HARDISTY YOU ARE OK. WE MAY NEVER ACTUALLY USE OUR CRUDE - BUT STILL A PHYSICAL HEDGE Do you have a supplier for the dilute needed for the transportation? NO COMMENT Thanks in advance XXXX X XXXXXXXXX