Cuda Oil and Gas Inc JNEXF

utica shale extends onto

[ICU812]

Altai holds varying interests in a substantial land package consisting of
315,000 acres located about 2 km west of the Forest Oil discovery wells.
Altai is a majority owner (59.4% as of December 31, 2007) and operator of
the property totalling 282,000 acres and holds a 8% gross royalty in
33,000 acres which was optioned to Talisman in 2005. The land package is
adjacent and central to the properties of Gastem Inc., Questerre Energy
Corporation and Junex Inc most of which are optioned either to Forest Oil
or Talisman Energy. The underlying prospective Utica Shale extends onto
Altai's property.

    Altai Resources Inc. has been a pioneer in oil and gas exploration in the
St. Lawrence Lowlands since it recognized the potential of the area in
the late 1980s. With the initial success of Forest Oil and their plans to
drill three horizontal wells this year, Altai is well positioned to
participate in this new gas opportunity.