THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY STATE SECURITIES LAWS. THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS
TO THIS NOTE UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN
OPINION OF COUNSEL REASONABLY SATISFACTORY TO ESSENTIAL INNOVATIONS TECHNOLOGY
CORP. THAT SUCH REGISTRATION IS NOT REQUIRED.

                             SECURED REVOLVING NOTE

         FOR VALUE RECEIVED, ESSENTIAL INNOVATIONS TECHNOLOGY CORP., a Nevada
corporation (the "Company" or "Parent"), promises to pay to LAURUS MASTER FUND,
LTD., c/o M&C Corporate Services Limited, P.O. Box 309 GT, Ugland House, South
Church Street, George Town, Grand Cayman, Cayman Islands, Fax: 345-949-8080 (the
"Holder") or its registered assigns or successors in interest, the sum of up to
Four Million Dollars (US$4,000,000), without duplication of any amounts owing by
the Company to the Holder under the Note (as defined in the Security and
Purchase Agreement referred to below), or, if different, the aggregate principal
amount of all Loans (as defined in the Security and Purchase Agreement referred
to below), together with any accrued and unpaid interest hereon, on March 2,
2009 (the "Maturity Date") if not sooner paid in full.

         Capitalized terms used herein without definition shall have the
meanings ascribed to such terms in the Security and Purchase Agreement among the
Company and the Eligible Subsidiaries (as described therein) and the Holder
dated as of the date hereof (as amended, modified and/or supplemented from time
to time, the "Security and Purchase Agreement").

                                    ARTICLE I
                           CONTRACT RATE AND THE NOTE

1.1      Availability. The Company hereby acknowledges and agrees that the Loans
         contemplated in the Security and Purchase Agreement shall not be made
         available by the Holder to the Company until all conditions precedent
         in Section 3.1 have been met to the satisfaction of the Holder in its
         sole discretion.

1.2      Contract Rate. Subject to Sections 3.2 and 4.9, interest payable on the
         outstanding principal amount of this Note (the "Principal Amount")
         shall accrue at a rate per annum equal to the "prime rate" published in
         The Wall Street Journal from time to time (the "Prime Rate"), plus two
         percent (2.0%) (the "Contract Rate"). The Contract Rate shall be
         increased or decreased as the case may be for each increase or decrease
         in the Prime Rate in an amount equal to such increase or decrease in
         the Prime Rate; each change to be effective as of the day of the change
         in the Prime Rate. Subject to Section 1.2, the Contract Rate shall not
         at any time be less than eight percent (8.0%). Interest shall (i)
         accrue as of the First Advance Date (as defined below), (ii) be
         calculated on the basis of a 360 day year, and (iii) be payable
         monthly, in arrears, commencing one (1) calendar month from the Second
         Advance Date (as defined below) on the first business day of each
         consecutive calendar month thereafter through and including the
         Maturity Date, and on the Maturity Date, whether by acceleration or
         otherwise.

1.3      Contract Rate Adjustments and Payments. The Contract Rate shall be
         calculated on the last business day of each calendar month hereafter
         (other than for increases or decreases in the Prime Rate which shall be
         calculated and become effective in accordance with the terms of Section
         1.1) until the Maturity Date.

                                                          SECURED REVOLVING NOTE
<PAGE>
                                      -2-

1.4      Taxes.

         (a)      Any and all payments by the Company hereunder, including any
                  amounts received on redemption of the Note and any amounts on
                  account of interest or deemed interest, shall be made free and
                  clear of and without deduction for any and all present or
                  future taxes, levies, imposts, deductions, charges or
                  withholdings, and all liabilities with respect thereto,
                  excluding taxes imposed on net income or franchise taxes of
                  the Holder by the jurisdiction in which such person is
                  organized or has its principal office (all such non-excluded
                  taxes, levies, imposts, deductions, charges withholdings and
                  liabilities, collectively or individually, "Taxes"). If the
                  Company shall be required to deduct any Taxes from or in
                  respect of any sum payable hereunder to the Holder, (i) the
                  sum payable shall be increased by the amount (an "additional
                  amount") necessary so that after making all required
                  deductions (including deductions applicable to additional sums
                  payable under this Section 1.4) the Holder shall receive an
                  amount equal to the sum it would have received had no such
                  deductions been made, (ii) the Company shall make such
                  deductions and (iii) the Company shall pay the full amount
                  deducted to the relevant governmental authority in accordance
                  with applicable law.

         (b)      In addition, Company agrees to pay to the relevant
                  governmental authority in accordance with applicable law any
                  present or future stamp or documentary taxes or any other
                  excise or property taxes, charges or similar levies that arise
                  from any payment made hereunder or from the execution,
                  delivery or registration of, or otherwise with respect to,
                  this Note ("Other Taxes"). The Company shall deliver to the
                  Holder official receipts, if any, in respect of any Taxes or
                  Other Taxes payable hereunder promptly after payment of such
                  Taxes or Other Taxes or other evidence of payment reasonably
                  acceptable to the Holder.

         (c)      The obligations of the Company under this Section 1.4 shall
                  survive the termination of this Note and the payment of the
                  Note and all other amounts payable hereunder.

                                   ARTICLE II
                               OPTIONAL PREPAYMENT

2.1      Optional Redemption in Cash. The Company will have the option of
         prepaying this Note ("Optional Redemption") by paying to the Holder the
         Prepayment Premium (as hereinafter defined) together with accrued but
         unpaid interest thereon to the Redemption Payment Date (as hereinafter
         defined) and any and all other unpaid amounts then due, accrued,
         payable or owing to the Holder under this Note, the Security and
         Purchase Agreement or any Ancillary Agreement (the "Redemption
         Amount"). The "Prepayment Premium" for the period commencing on the
         date hereof up to and including the Maturity Date, shall be equal to
         one hundred and thirty percent (130%) of the Principal Amount. The
         Company shall deliver to the Holder a written notice of redemption (the
         "Notice of Redemption") specifying the date for such Optional
         Redemption (the "Redemption Payment Date"), which date shall be ten
         (10) business days after the date of the Notice of Redemption (the
         "Redemption Period"). On the Redemption Payment Date, the Redemption
         Amount must be paid in good funds to the Holder. In the event the
         Company fails to pay the Redemption Amount on the Redemption Payment
         Date as set forth herein, then such Redemption Notice will be null and
         void.

2.2      Maturity; Surrender, Etc. In the case of a repayment of this Note
         pursuant to this Article II, the Principal Amount of this Note to be
         repaid shall mature and become due and payable on the applicable
         Redemption Payment Date together with interest on such Principal Amount
         accrued to such date and any other amount due and payable under this
         Note, the Purchase Agreement or any Ancillary Agreement to the extent
         that such amounts are outstanding as of the applicable Redemption

                                                          SECURED REVOLVING NOTE
<PAGE>
                                      -3-

         Payment Date. From and after such date, unless the Company shall fail
         to pay such Principal Amount when so due and payable together with the
         interest and other amounts as aforesaid, interest on such Principal
         Amount shall cease to accrue. The Holder shall make the appropriate
         reduction to the Principal Amount, accrued interest and other amounts
         due, accrued, payable or owing as entered in its records and shall
         provide written notice thereof to the Company within one (1) Business
         Day of the applicable Payment Date. If this Note is paid in full, it
         shall be surrendered to the Company and cancelled and shall not be
         reissued and no note shall be issued in lieu of any paid Principal
         Amount of this Note.

                                   ARTICLE III
                              CONDITIONS PRECEDENT

3.1      Conditions Precedent. The following conditions precedent shall be
         satisfied by the Company prior to the date upon which the Loan shall be
         advanced by the Holder to the Company (the "Second Advance Date"):

         (a)      The Company shall obtain the Holder's prior consent to the
                  advance of the Loan;

         (b)      The Company shall obtain the Holder's prior consent to the
                  First Acquisition (as defined below)

         (c)      The Holder shall have received in form and substance
                  satisfactory to the Holder, confirmation that the Company has
                  completed the acquisition of Pacific Geo Exchange Inc.
                  ("Pacific") and the indirect acquisition of its wholly-owned
                  subsidiary Earth Source Energy Inc. ("Earth Source")
                  (together, the "First Acquisition", and such date of
                  completion of the First Acquisition herein referred to as the
                  "First Acquisition Closing Date");

         (d)      The Company shall obtain the Holder's prior consent to the
                  Second Acquisition (as defined below);

         (e)      The Holder shall have received in form and substance
                  satisfactory to the Holder, confirmation that the Company has
                  completed the acquisition of Geotech Drilling Services Ltd.
                  ("Geotech BC") and the indirect acquisition of its
                  wholly-owned subsidiary Geotech Drilling Alberta Ltd.
                  ("Geotech AB") (together, the "Second Acquisition", and such
                  date of completion of the Second Acquisition herein referred
                  to as the "Second Acquisition Closing Date");

         (f)      The Holder shall have received in form and substance
                  satisfactory to the Holder, confirmation that the Holder has a
                  first priority security interest over all of the personal
                  property and assets of the Company, Essential Innovations
                  Corp. ("Essential"), Pacific, Earth Source, Geotech BC and
                  Geotech AB in respect of which the Holder shall take a
                  security interest pursuant to the Master Security Agreement in
                  favour of the Holder dated as of the date hereof granted by
                  the Company and Essential (the "Master Security Agreement")
                  and supplemented by the Joinder and Confirmation of Security
                  Agreement granted by Pacific and Earth Source dated as of the
                  date (the "First Advance Date") upon which the Holder advances
                  the loan to the Company pursuant to the Secured Term Note (the
                  "First Joinder and Confirmation of Security Agreement"), and
                  the Joinder and Confirmation of Security Agreement granted by
                  Geotech BC and Geotech AB dated as of the Second Advance Date
                  (the "Second Joinder and Confirmation of Security Agreement");

                                                          SECURED REVOLVING NOTE
<PAGE>
                                      -4-

         (g)      All Ancillary Agreements (as such term is defined in the
                  Security and Purchase Agreement) shall have been executed and
                  delivered by the Company and Essential to the Holder dated as
                  of the date hereof, and executed and delivered by Pacific and
                  Earth Source dated as of the First Advance Date;

         (h)      The First Joinder and Confirmation of Security Agreement shall
                  have been executed and delivered by Pacific and Earth Source
                  to the Holder whereby Pacific and Earth Source are added as
                  parties to the Ancillary Agreements including, without
                  limitation, (i) the Subsidiary Guaranty (ii) the Security and
                  Purchase Agreement, (iii) the Master Security Agreement, and
                  (iv) the Share Pledge Agreement;

         (i)      The Second Joinder and Confirmation of Security Agreement
                  shall have been executed and delivered by Geotech BC and
                  Geotech BC to the Holder whereby Geotech BC and Geotech AB are
                  added as parties to the Ancillary Agreements including,
                  without limitation, (i) the Subsidiary Guaranty (ii) the
                  Security and Purchase Agreement, (iii) the Master Security
                  Agreement, and (iv) the Share Pledge Agreement;

         (j)      The Holder shall have received in form and substance
                  satisfactory to the Holder, confirmation that there has been
                  no Material Adverse Effect (as defined in the Security and
                  Purchase Agreement) in respect of the Company, Essential,
                  Pacific, Earth Source, Geotech BC, and Geotech AB as of March
                  2, 2006; and

         (k)      The Holder shall have received in form and substance
                  satisfactory to the Holder, confirmation that any other
                  conditions of advance set forth in the Security and Purchase
                  Agreement have been satisfied by the Company, Essential,
                  Pacific, Earth Source, Geotech BC and Geotech AB,

and upon delivery or confirmation thereof, as the case may be, the Holder shall
make the Loan available to the Company and shall instruct the Escrow Agent to
advance the Loan.

                                   ARTICLE IV
                EVENTS OF DEFAULT AND DEFAULT RELATED PROVISIONS

4.1      Events of Default. The occurrence of an Event of Default under the
         Security and Purchase Agreement shall constitute an event of default
         ("Event of Default") hereunder.

4.2      Default Interest. Following the occurrence and during the continuance
         of an Event of Default, the Company shall, jointly and severally, pay
         additional interest on the outstanding principal balance of this Note
         in an amount equal to two percent (2%) per month, and all outstanding
         Obligations, including unpaid interest, shall continue to accrue
         interest at such additional interest rate from the date of such Event
         of Default until the date such Event of Default is cured or waived.

4.3      Default Payment. Following the occurrence and during the continuance of
         an Event of Default, the Holder, at its option, may elect, acting
         reasonably and in good faith, in addition to all rights and remedies of
         the Holder under the Security and Purchase Agreement and the other
         Ancillary Agreements and all obligations and liabilities of the Company
         under the Security and Purchase Agreement and the other Ancillary
         Agreements, to require the Company to make a Default Payment ("Default
         Payment"). The Default Payment shall be one hundred thirty percent
         (130%) of the outstanding principal amount of the Note, plus accrued
         but unpaid interest, all other fees then remaining unpaid, and all
         other amounts payable hereunder. The Default Payment shall be applied
         first to any fees due and payable to the Holder pursuant to the Notes,
         the Security and Purchase Agreement and/or the Ancillary Agreements,

                                                          SECURED REVOLVING NOTE
<PAGE>
                                      -5-

         then to accrued and unpaid interest due on the Notes and then to the
         outstanding principal balance of the Notes. The Default Payment shall
         be due and payable immediately on the date that the Holder has
         exercised its rights pursuant to this Section 4.3.

                                    ARTICLE V
                                  MISCELLANEOUS

5.1      Cumulative Remedies.  The remedies under this Note shall be cumulative.

5.2      Failure or Indulgence Not Waiver. No failure or delay on the part of
         the Holder hereof in the exercise of any power, right or privilege
         hereunder shall operate as a waiver thereof, nor shall any single or
         partial exercise of any such power, right or privilege preclude other
         or further exercise thereof or of any other right, power or privilege.
         All rights and remedies existing hereunder are cumulative to, and not
         exclusive of, any rights or remedies otherwise available.

5.3      Notices. Any notice herein required or permitted to be given shall be
         in writing and shall be deemed effective given (a) upon personal
         delivery to the party notified, (b) when sent by confirmed telex or
         facsimile if sent during normal business hours of the recipient, if
         not, then on the next business day, (c) five days after having been
         sent by registered or certified mail, return receipt requested, postage
         prepaid, or (d) one day after deposit with a nationally recognized
         overnight courier, specifying next day delivery, with written
         verification of receipt. All communications shall be sent to the
         Company at the address provided for the Company in the Security and
         Purchase Agreement executed in connection herewith, and to the Holder
         at the address provided in the Security and Purchase Agreement for the
         Holder, with a copy to John E. Tucker, Esq., 825 Third Avenue, 14th
         Floor, New York, New York 10022, facsimile number (212) 541-4434, or at
         such other address as the Company or the Holder may designate by ten
         days advance written notice to the other parties hereto.

5.4      Amendment Provision. The term "Note" and all references thereto, as
         used throughout this instrument, shall mean this instrument as
         originally executed, or if later amended or supplemented, then as so
         amended or supplemented, and any successor instrument as such successor
         instrument may be amended or supplemented.

5.5      Assignability. This Note shall be binding upon the Company and its
         successors and assigns, and shall inure to the benefit of the Holder
         and its successors and assigns, and may be assigned by the Holder in
         accordance with the requirements of the Security and Purchase
         Agreement. The Company may not assign any of its obligations under this
         Note without the prior written consent of the Holder, any such
         purported assignment without such consent being null and void.

5.6      Cost of Collection. In case of any Event of Default under this Note,
         the Company shall pay the Holder the Holder's reasonable costs of
         collection, including reasonable attorneys' fees.

5.7      Governing Law, Jurisdiction and Waiver of Jury Trial.

         (a)      THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN
                  ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
                  REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

         (b)      THE COMPANY HEREBY CONSENTS AND AGREES THAT THE STATE OR
                  FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW
                  YORK SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE
                  ANY CLAIMS OR DISPUTES BETWEEN THE COMPANY, ON THE ONE HAND,
                  AND THE HOLDER, ON THE OTHER HAND, PERTAINING TO THIS NOTE,
                  THE SECURITY AND PURCHASE AGREEMENT OR ANY OF THE OTHER

                                                          SECURED REVOLVING NOTE
<PAGE>
                                      -6-

                  ANCILLARY AGREEMENTS OR TO ANY MATTER ARISING OUT OF OR
                  RELATED TO THIS NOTE, THE SECURITY AND PURCHASE AGREEMENT OR
                  ANY OF THE OTHER ANCILLARY AGREEMENTS PROVIDED, THAT THE
                  COMPANY ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY
                  HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE COUNTY OF
                  NEW YORK, STATE OF NEW YORK; AND FURTHER PROVIDED, THAT
                  NOTHING IN THIS NOTE SHALL BE DEEMED OR OPERATE TO PRECLUDE
                  THE HOLDER FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN
                  ANY OTHER JURISDICTION TO COLLECT THE OBLIGATIONS, TO REALIZE
                  ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS,
                  OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE
                  HOLDER. THE COMPANY EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE
                  TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY
                  SUCH COURT, AND THE COMPANY HEREBY WAIVES ANY OBJECTION WHICH
                  IT MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER
                  VENUE OR FORUM NON CONVENIENS. THE COMPANY HEREBY WAIVES
                  PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS
                  ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF
                  SUCH SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY
                  REGISTERED OR CERTIFIED MAIL ADDRESSED TO THE COMPANY AT THE
                  ADDRESS SET FORTH IN THE SECURITY AND PURCHASE AGREEMENT AND
                  THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE
                  EARLIER OF THE COMPANY'S ACTUAL RECEIPT THEREOF OR TEN (10)
                  DAYS AFTER DEPOSIT IN THE U.S. MAILS, PROPER POSTAGE PREPAID

         (c)      THE COMPANY DESIRES THAT ITS DISPUTES BE RESOLVED BY A JUDGE
                  APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST
                  COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF
                  ARBITRATION, THE COMPANY HERETO WAIVES ALL RIGHTS TO TRIAL BY
                  JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY
                  DISPUTE, WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE
                  BETWEEN THE HOLDER, AND/OR THE COMPANY ARISING OUT OF,
                  CONNECTED WITH, RELATED OR INCIDENTAL TO THE RELATIONSHIP
                  ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS NOTE, THE
                  SECURITY AND PURCHASE AGREEMENT, ANY OTHER ANCILLARY AGREEMENT
                  OR THE TRANSACTIONS RELATED HERETO OR THERETO.

5.8      Severability. In the event that any provision of this Note is invalid
         or unenforceable under any applicable statute or rule of law, then such
         provision shall be deemed inoperative to the extent that it may
         conflict therewith and shall be deemed modified to conform with such
         statute or rule of law. Any such provision which may prove invalid or
         unenforceable under any law shall not affect the validity or
         enforceability of any other provision of this Note.

5.9      Maximum Payments. Nothing contained herein shall be deemed to establish
         or require the payment of a rate of interest or other charges in excess
         of the maximum permitted by applicable law. In the event that the rate
         of interest required to be paid or other charges hereunder exceed the
         maximum rate permitted by such law, any payments in excess of such
         maximum rate shall be credited against amounts owed by the Company to
         the Holder and thus refunded to the Company.

                                                          SECURED REVOLVING NOTE
<PAGE>
                                      -7-

5.10     Security Interest and Guarantee. The Holder has been granted a security
         interest (i) in all assets of the Company as more fully described in
         the Security and Purchase Agreement (ii) in all assets of the Company
         and its Subsidiaries pursuant to the Master Security Agreement dated as
         of the date hereof and (iii) in certain assets of the Company and its
         Subsidiaries pursuant to the Share Pledge Agreement dated as of the
         date hereof. The obligations of the Company under this Note are
         guaranteed by certain Subsidiaries of the Company pursuant to the
         Subsidiary Guaranty dated as of the date hereof.

5.11     Construction. Each party acknowledges that its legal counsel
         participated in the preparation of this Note and, therefore, stipulates
         that the rule of construction that ambiguities are to be resolved
         against the drafting party shall not be applied in the interpretation
         of this Note to favor any party against the other.

IN WITNESS WHEREOF, the Company has caused this Secured Revolving Note to be
signed in its name effective as of this 2nd day of March, 2006.

                                         ESSENTIAL INNOVATIONS TECHNOLOGY CORP.

                                         By: /s/ Jason McDiarmid
                                         Name: Jason McDiarmid
                                         Title: President/CEO