Gulfside Minerals Ltd., which owns the Onjuul coal project, has reported the successful completion of Phase 1 of its drilling program there. Ten holes have been completed in this phase, and 10 or more holes are planned to be completed during Phase 2. The newly acquired data will now be analyzed and evaluated, seam correlations conducted and the geologic model will be updated. It is anticipated that the Phase 2 drilling plan may be modified to account for the model update and to optimize exploration expenditures.

Phase 2 drilling is scheduled to resume early in 2010. Once additional drilling has been completed and laboratory results analyzed, the company will be in the position to further evaluate the viability of the coal project for a coal liquefaction project. Independent geological and engineering studies will be required to determine if this potential use is technically and economically viable.