**Exhibit      10.28**

| 1. | Term |
|----|------|

| 2. | Rent |
|----|------|

| 3. | Mutual                Covenants |
|----|---------------------------------|

----

| 4. | Waiver |
|----|--------|

| 5. | Complete                Agreement |
|----|-----------------------------------|

| 6. | General                Provisions |
|----|-----------------------------------|

|  | a. | This                Agreement shall in all respects be interpreted, enforced and governed                under                the laws of State of Washington. The language and all parts of this                Agreement                shall be in all cases construed as a whole and not strictly for or                against                any individual party. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b. | Any                dispute arising under in any way related to this agreement shall                be                submitted                to binding arbitration by the American Arbitration Association in                accordance                with the Association’s commercial rules then in effect. The arbitration                may be conducted in person, by telephone or online as agreed by all                parties. The arbitration shall be binding on the parties and the                arbitration award may be confirmed by ant court of competent                jurisdiction. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Daybreak              Oil and Gas, Inc.                                                                                                                              |   |   | Terrence              J. Dunne & Associates                                                                                                                      |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                 |   |   |                                                                                                                                                                 |   |
|                                                                                                                                                                 |   |   |                                                                                                                                                                 |   |
| /s/                Thomas C.                Kilbourne                                                                                                                |   |   | /s/                Terrence J.                Dunne                                                                                                                  |   |
| Thomas                C.                Kilbourne, Treasurer                                                                                                    |   |   | Terrence                J.                Dunne                                                                                                                      |   |
|                                                                                                                                                                 |   |   |                                                                                                                                                                 |   |
|                                                                                                                                                                 |   |   |                                                                                                                                                                 |   |
| Date:                        8/01/06              |   |   | Date:                        8/01/06              |   |

----

| Office                                             | Approx                Length / Width | Square                Footage                        |
|----------------------------------------------------|--------------------------------------|------------------------------------------------------|
|                                               |                                      |                                                 |
| Suite              1017 – Front Office       | 17’x                9’   | 153                                                  |
| Suite              1012 – S.W. Corner Office | 9.5’x                12’ | 114                                                  |
| Suite              1012 – S. W. Storage Area | 10’x                5’   | 50                                                   |
| Suite              1012 – Conference Room    | 13’                x 11’ | 72  (1/2                footage)           |
| Total                Daybreak Footage              |                                 | 389                                                  |
|                                               |                                 |                                                 |
|                                               |                                 |                                                 |
| $16.00              per Square Foot                |                                 | $                6224.00                             |
|                                               |                                 |                                                 |
| Divided              by 12 Months                  |                                 |                     518.67       |
| Common              Area Factor                    |                                 |                       81.33 |
| Total                Monthly Rent                  |                                 | $                  600.00                       |
|                                               |                                 |                                                 |