Nicaragua

1. Nicaragua Sleeping Oil Giant? October, 2007 Brito Energy

2. Overview • Brito Energy, a unit of Black Star 231 Corp., presents an attractive petroleum project in Nicaragua (The Brito block). • Nicaragua is located in Central America south of Honduras and north of Costa Rica. • Data on Nicaragua is presented at the end of the presentation. Brito Energy

3. Geographic Map of Nicaragua Brito Energy

4. Brito Energy - Exploration Program • Brito Energy presents a three phase petroleum exploration program. • Phase One– Black Star 231 Corp owns a 10,000 acre block in SW Nicaragua, do 2D seismic work on the block and prepare for Phases Two and Three. • Phase Two - Complete exploration and drill a well(s) on the Brito Block. • Phase Three - Expand our operations by aggressively pursuing projects in Nicaragua and Central America. Brito Energy

5. Phase 1 - Brito Block • Brito Energy owns 10,000 acres in SW Nicaragua. • The Brito block is in a checker-board 20,000 acre block with Norwood Resources Ltd. holding the other 10,000 acres. • The data indicates 10-13 thousand feet of sedimentary section on the Brito block. Brito Energy

6. Phase 1 - Brito Block • Norwood Resources Ltd, of Canada, has reported a frontier, wildcat discovery of oil, gas, and condensate some 30 miles north of Brito’s block. • The Brito block has a mapped surface anticline some 12-15 km. long. This structure was mapped by photo geological mapping and verified by geological field work. Brito Energy

7. Picture shows strong SW dip of the Brito formation. The rocks cropping out are medium-grained, well-sorted sandstones. The sandstone has been weathered.

8. Pictures showing outcrop of Brito sandstone. Several local faults are seen. Brito Energy

9. Picture of long linear stream valley. We believe that this valley was formed by a major NW-SE fault trending parallel to the linear anticline. Brito Energy

10. Phase 1 - Brito Block • The Norwood strike encountered oil/gas in the Masachapa and Brito formations. A very thick oil/gas saturated reservoir was logged and cored. • In the Brito anticline, we will spud in the Brito formation and will drill through the Rivas Formation. Brito Energy

11. Phase 1 - Brito Block • The Brito and Rivas formation have both reservoirs and source rocks—data from wells and surface work. • The Rivas and Loma Chomico formations have very good source rocks with 57% TOC reported in the shale. TOC is Total Organic Compounds. TOC is a common method of evaluating the richness of a source rock. 10% TOC is considered to be a very good source rock. • As the Brito anticline is a closed structure, we have reservoir rocks, structure, source rocks and seal, all of the main ingredients for an oil field. Brito Energy

12. Brito Energy

13. Phase 1 - Brito Block • The Brito block is located in the Sandino Basin. • The Sandino Basin encompasses SW Nicaragua and most of the Pacific offshore out to the Cocos Plate. • The Brito formation and the Rivas formation are both marine deposits with a significant amount being turbidite deposits. • The porosity in both formations is 17-20%. Brito Energy

14. Brito Block - Phase 1 • The Brito formation is of Paleocene age. • The Brito formation lies, unconformably, on the Rivas formation which is Cretaceous age. • Permeability in both formations appears to range from low to very good. Brito Energy

16. This slide demonstrates our concept of the Brito anticline. A NW-SE fault parallel to the anticline is suggested. Strong SW and NE dip is well exposed on the NE and SW side of the anticline. The Brito anticline is a long, linear structural feature possibly caused by pressure from the offshore Cocos plate being sub-ducted under the Nicaraguan plate. Many volcanoes are present in SW Nicaragua

17. Phase 1 - Brito Block • Norwood released the following press release: ”Norwood has drilled the San Bartolo well to a TD 2680 meters, encountering gas, condensate and light oil in various turbidite sands from the Brito formation. Eight separate zones were logged…….core analysis indicated 17-21% porosity……it is reported that the pressure is high and the liquids are of superior quality of 54 degrees API gravity….the structure is believed to encompass about 20 sq. km.…….. “ Brito Energy

18. Phase 1 - Brito Block • The Norwood well is reported to be on a fault block with a large, down-to-the-east fault on the eastern side of the block.. • Norwood drilled what they believed to be a large surface anticline. The anticline was not found but Norwood still had a trap for oil. This trap was formed by strike slip faulting where the lateral movement of sediments effectively sealed off the reservoir. Norwood maps strike slip faults in many areas of their acreage. Brito Energy

19. Diagram of Norwood’s Structure The large NW-SE fault forms a seal for the eastward closure. The two strike slip faults, A & B, form the reservoir trap to the north and south. The well had excellent shows of oil/gas, but heavy mud and lost circulation material caused all permeability to be sealed off. If the well had no damage, it could have been completed at a flow rate of at least 1,000 BOPD. Brito Energy

20. Cross Section of Norwood’s Drilling Location Norwood believed that on the east side of the anticline, that the rocks would all dip downward as the surface anticline indicated. But, the smaller associated fault caused only a thin surface section to dip to the east. Brito Energy

21. Norwood Expected Reserves • Norwood’s wells could have been completed as 1000 BOPD wells. Norwood has a large area with abundant strike slip faults resulting in traps of oil/gas. Clearly, Norwood ultimate reserves of recoverable oil could be in the high hundreds of millions of barrels of oil or gas equivalent. • Exploration in the Norwood block is just commencing. Brito Energy

22. Brito Expected Reserves • Brito expected reserves of oil/gas are substantial. • Brito’s anticipated reserves of oil/gas are between two hundred million barrels and four hundred million barrels. • Brito has a series of strike slip faults similar to Norwood. • If the strike slip faults yield an array of structures, this figure could be much higher. Brito Energy

23. Strike slip fault Brito Energy

24. Phase 1 - Brito Block • Thus, the Brito block is an excellent prospective area. Brito has a large structure, plus all the other elements necessary for an oil field. • The Brito block is on trend with, and exhibits the some of the geological attributes as the potential frontier discovery announced by Norwood. The Norwood well will open up extensive exploration in the Sandino basin. • The Loma Chomico shale with some 57% TOC is one of the richest source rocks that have ever been recorded. • The geochemistry report has good results. Brito Energy

25. Brito Energy

26. Strike slip fault

27. Phase 1 - Brito Block • This is an exciting oil play. We have enough information to strongly suggest that this basin will develop into a major oil province. • The long anticline together with the regional fault on the NE side of the anticline suggests that the structure is big enough to be a major oil find. Brito Energy

28. Phase 1 - Brito Block • We recommend that about 250 line km. of 2D seismic data be acquired over the Brito Block. • 1 km grid over block with regional extensions • Mob and De-mob expenses higher due to lack of local service companies • Seismic processing and interpretation Brito Energy

29. Budget - Phase 1 • Brito Block (SW Nicaragua) • Purchase acreage $ 3.25 MM • 2D Seismic work $ 2.50 MM • Acquisition, processing, and interpretation • General/Admin. $ .25 MM • Total Phase 1 $ 6.00 MM Brito Energy

30. Phase 1 - Recommendation • The Brito block is highly recommended. As the structure has already been mapped, only a minimum of seismic lines must be shot. Thus, drilling can start at an early stage. The technical evaluation of the regional geologic framework is now completed. • The Brito block is part of the same complex of structural features all owing their origins and existence to the same tectonic events that have given rise to the thick oil saturated section in the Norwood discovery wells. • The Brito anticlinal structure is located down trend from Norwood’s potential discovery. The Brito structure has good reservoir rocks and superior source rocks, which together with the geochemical survey indicates an exceptional prospect. Brito Energy

31. Phase 2 - Brito Block • We recommend that three wells be drilled on the Brito Block, each to a total depth of 9,000 feet. • The first three wells on the Brito block can be drilled and tested in one year. Brito Energy

32. Budget - Phase 2 • Brito Block - SW Nicaragua • Drill three wells $14.2 MM - Includes overhead & G&A - If any of the first three wells are commercial, we would strongly recommend development drilling • 3D Seismic acquisition $ .6MM • Total Phase 2 $14.8 MM Brito Energy

33. Picture of local people living on a small farm. The farm is located near the crest of the Brito anticline. The people appeared to be content in spite of their barely subsistence living standard. It was good to see the obvious affection of the parents to the children.

34. Operational Risk • Operational risk is low. Lack of good roads in the Brito block may slow down drilling operations slightly. • Lack of drilling rigs and petroleum infrastructure suggests that practically all equipment will have to be imported into Nicaragua. • Intensive training will be required for local labor especially in preventative maintenance and safety. Brito Energy

35. Phase 3 • Phase 3 is to aggressively pursue, additional specific projects: • Project A: • This acreage is offshore from the Brito block in SW Nicaragua. • The area is prospective and we can exploit our knowledge of the contiguous onshore Brito block. Brito Energy

36. Phase 3 • Project B: • Onshore Nicaragua - NE area. • Large well defined surface prospects with abundant oil seeps. • Project C: • Offshore Nicaragua - Atlantic side. • The Atlantic side has great possibilities and is greatly under explored. Brito Energy

37. Budget - Phase 3 • Onshore Block - NE Nicaragua • 1000 km Seismic $ 5.0 MM • Surface geology $ .2 MM • Drill Well $ 4.0 MM • Offshore Block - SW Nicaragua • 500 km Seismic $ 2.5 MM • Drill well $ 8.0 MM • Total Phase 3 $19.7 MM Brito Energy

38. Composite Budget • PHASE 1 $ 6.0 MM • PHASE 2 $14.8 MM • PHASE 3 $19.7 MM Total of three phases $40.5 MM Brito Energy

39. Time Line - Phases 1 & 2 Brito Energy

40. Time Line - Phase 3 Brito Energy

41. Tentative Economic Analysis • Assumptions: • Drill 80 wells, 40 in year one and 40 in year two • Well costs: $160MM first year, $160MM second year • Field facilities: $30MM year one, $10MM year two • Pipeline: 10 inches X 25 miles X $50,000/inch diameter mile = $12.5MM • Tankage: $15MM ($5MM year one, $10MM year two) • Buoy and sea lines: $2MM • Note: Cost of Managua office etc. rolled into well costs Brito Energy

42. Tentative Economic Analysis • Case 1: • Oil Production 300 bopd/well • Net revenue income to working interest $20/bbl • Results: Payout in 4 years, ROR 50%+ • Case 2: • Oil production 3000 bopd/well • Net revenue income to working interest $40/bbl • Results: Payout in second year, ROR 100%+ Brito Energy

43. Tentative Economic Analysis • Case 3: • Oil Production 1000 bopd/well • Net revenue income to working interest $30/bbl • Results: Payout last quarter of year 2, ROR 100%+ • Even under the worse case scenario of 300 bopd/well the economics are still attractive • These economics were run to see if wells which are high cost and with low production rates would be economic. Brito Energy

44. Nicaragua & Central America • Brito Energy suggests that, in general, Central America and Nicaragua in particular will see a great expansion in petroleum exploration. • Brito Energy’s goal is to is to be a major player in this expansion. Brito Energy

45. References • The results of the geochemical analysis to the Loma Chumico are in a range 10 to 55 % TOC, kerogene type I y II; made by Simon Petroleum Technology Ltd. Reference: D.R. Clowser, I. Cutler, M.H. Girgis, J.F. Laing, D. Wall from SIMON PETROLEUM TECHNOLOGY LIMITED, 1993. • Biostratigraphic and geochemical studies of outcrop samples, INE-RECOPE Project. Humble Geochemical Services confirmed that the Loma Chumico formation, the kerogene is II - S type (rich in sulfurs) and generated hydrocarbons under termic pressure below that the kerogene type II. Brito Energy

46. Geography and People • Population: 5.7 million • Area: 49,998 sq. miles • Capital: Managua (1MM pop.) • Terrain: Mountainous • Climate: Tropical/subtropical • People: 69% Mesitzo (mixture of Indian and European) • Literacy: 68.2% • Language: Spanish, English (2nd language) • Religion: Roman Catholic, Protestant minority Brito Energy