EXHIBIT 10.1

                              ASSIGNMENT AGREEMENT

This Agreement is made as of February 14, 2001.

BETWEEN:

                  LIONS GATE INVESTMENT LIMITED,
                  -----------------------------
                  of Suite 2901, 1201 Marinaside Crescent,
                  Vancouver, British Columbia, V6Z 2V2

                  (the "Assignee")

AND:

                  N.D.G. SMITH,
                  ------------
                  of 2271, Flanders Avenue, S.W.,
                  Calgary, Alberta, T2T 5K9

                  (the "Assignor")

WHEREAS:

A. The Assignor owns a 2% overriding royalty (the "Royalty") over certain
petroleum producing lands in the Province of Alberta, Canada known as Edgerton
"27", TWP 42, RGE 3, W4M, Section 27 granted by Harbour Petroleum Company
Limited;

B. The Assignor wishes to assign the Royalty to the Assignee in consideration
for common shares of the Assignee;

IN CONSIDERATION OF THE sum of Ten Dollars ($10.00) paid by each party to the
other (the receipt and sufficiency of which is hereby acknowledged) the parties
hereto agree as follows:


1.   The Assignor hereby sells, assigns and transfers to the Assignee all of his
     right, title and interest in and to the Royalty and the royalty agreement
     as it pertains to the Royalty dated August 4, 1981 between Harbour
     Petroleum Company Limited and N.D.G. Smith (the "Royalty Agreement").


2.   In consideration for assigning the Royalty to the Assignee, the Assignee
     agrees to issue the Assignor 100,000 common shares at a deemed value of
     $0.50 per share.

3.   Commencing March 1, 2001, all royalty payments due under the Royalty
     Agreement shall accrue to the Assignee and shall be deposited to the credit
     of the Assignee.

4.   The summary of royalty payments received by the Assignor for 1999 and 2000
     attached as Schedule "A" to this agreement are true and accurate in all
     respects and representative of historical royalties paid under the Royalty
     Agreement.

5.   The Royalty Agreement attached as Schedule "B" to this agreement is a true
     copy of the Royalty Agreement under which the Assignor acquired the
     Royalty.

6.   This Agreement shall be governed by and construed in accordance with the
     laws of Alberta.

7.   This Agreement shall enure to the benefit of and be binding upon the
     parties hereto and their respective heirs, successors and permitted
     assigns.

8.   This Agreement may be executed in several counterparts each of which when
     executed by any party hereto will be deemed to be an original and such
     counterparts will together constitute one and the same instrument.

<PAGE>

IN WITNESS WHEREOF this Agreement has been executed by the parties hereto the
day and year first above written.

LIONS GATE INVESTMENT LIMITED

Per:     /s/ Keith Ebert
         --------------------------------------------
         Keith Ebert, President and Director

SIGNED, SEALED AND DELIVERED                         )
by N. DESMOND SMITH in the                           )
presence of:                                         )
                                                     )
                                                     )
--------------------------------                     )
Witness                                              )
                                                     )
--------------------------------                     )      /s/ N. Desmond Smith
Address                                              )      N. DESMOND SMITH
                                                     )
--------------------------------                     )
                                                     )
                                                     )
--------------------------------                     )
Occupation                                           )





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                                  SCHEDULE "A"
                 TO ASSIGNMENT AGREEMENT DATED FEBRUARY 14, 2001

    ---------------------------------------------------------------------
                                      1999                  2000
        PRODUCTION MONTH             AMOUNT                AMOUNT

    ---------------------------------------------------------------------
        January                      $398.27               $635.59
    ---------------------------------------------------------------------
        February                     $310.86               $939.00
    ---------------------------------------------------------------------
        March                        $430.13               $979.61
    ---------------------------------------------------------------------
        April                        $572.05               $969.94
    ---------------------------------------------------------------------
        May                          $775.56             $1,088.83
    ---------------------------------------------------------------------
        June                         $617.09               $974.81
    ---------------------------------------------------------------------
        July                         $744.62               $862.73
    ---------------------------------------------------------------------
        August                       $776.34               $822.54
    ---------------------------------------------------------------------
        September                    $828.60               $827.40
    ---------------------------------------------------------------------
        October                      $887.40               $670.06
    ---------------------------------------------------------------------
        November                     $789.13            Not yet paid
    ---------------------------------------------------------------------
        December                     $760.30            Not yet paid
    ---------------------------------------------------------------------
    ---------------------------------------------------------------------
        Total                      $7,890.35             $8,770.51
    ---------------------------------------------------------------------
        Avg/Mo.                      $657.53               $877.05
    ---------------------------------------------------------------------